Bobbi Decker Blog

HAMP and HAFA Programs

Thu, 11 Nov 2010 00:00:00 -0800

HAMP and HAFA Programs

Bobbi Decker, CRS, GRI, SRES

Real Estate is an ever-changing, ever evolving cycle of events. I have been in it for a long, long time and just when I think I have seen it all…Voila!!! There is a whole different scenario. This time, in this cycle, the profound lack of trust is up-ending the market. It casts a pall over the fabulous interest rates, compelling prices and generally great buyer’s market that we are in. For sure, there have been other challenging cycles,

but this one involves people who truly feel that no one “has their back”. Who can blame them…many promises were made and not kept. Consumers were promised loan modification programs that were to help “millions”. Through August 2010, these programs have helped approximately 450,000 borrowers only. That is quite a discrepancy.

No one clearly understands what they are supposed to do to get the help they really seek. Do they default (not pay on the loan) to get attention? Should they keep up the payments and seek help from the lender emphasizing that they are good citizens because they are keeping up with the payments despite the drop in value? Should they engage in a short sale? Everyone has an opinion, but the only one you should be interested in is your trusted tax attorney or CPA.

Please remember one thing from this article. To date, no one has been approved by the Dept. of Real Estate to collect upfront fees for helping you with loan modifications or as they are calling their programs now “forensic loan reviews”. That is supposed to mean they are checking all your loan documents for discrepancies. If they want to do this free of charge, cool. However, asking for an upfront fee to do so is unlawful. As the Dept. of Real Estate said during the last Real Estate State convention “to collect up-front fees, you must have DRE approval and the DRE has not given ANYONE approval to collect fees upfront.

Let me bring to your attention programs that are legitimate and that can provide the distressed owner with some possible solutions. The newest on the block are two government programs….HAMP- the Home Affordable Modification Program and HAFA- the Home Affordable Foreclosure Alternatives. HAMP was announced in Feb. 2009 and is available until December 31, 2011. This program is designed to help homeowners retain their homes through loan modifications. HAFA is geared towards foreclosure alternatives. It is intended to complement the HAMP program by making the transition into a short sale easier for the owner if he/she does not qualify for a loan modification. In both cases, the primary goal is to help the owner stay in their home.

I will cover both programs in the coming weeks in more detail. Meanwhile, if you would like to read up on them yourselves the website is http://www.realtor.org/government_affairs/short_sales_hafa .

Condominium Living

Fri, 10 Sep 2010 00:00:00 -0700

Condominium Living

By Bobbi Decker, Broker, GRI, CRS, SRES, Realtor®

I have been asked this question so very many times, especially recently with the spat of articles hitting newspapers and periodicals alike, “Do you recommend purchasing

condominiums?”. My answer is always the same. Yes with caution. For many people such as first time buyers, empty nesters, even busy professionals who do not have the time to worry about the details of house and yard maintenance, condominium living may have tremendous pluses.

However, if the Home Owners Association (HOA) is not strong and liquid, it could mean serious problems for the uninformed condominium buyer or seller. The key is to read the Homeowner Association Documents Package from cover to cover, with the guidance of your Realtor, to make sure the association is solid. This may seem like a daunting task, but at the price of property, you need to do your homework. Make sure you receive and READ the” Covenants, Conditions and Restrictions” Package (CC&R’s). The package is prepared and provided by law by the Homeowner’s Association management team. The package should contain the CC&R’s, Bylaws, Articles of Incorporation, Operating Budget and Reserve Funding schedule, Insurance Information, Minutes of meetings and Newsletters. The Minutes of the monthly meetings are of special interest. They are especially important because they let you know what is on the current HOA and owner’s minds by what is being addressed at the meetings. This can alert you to future repairs being done, rules that are being broken, even possible pending litigation. The “key factors” in this package include, but are not limited to:

What is covered by the budget/reserve fund? Is there sufficient insurance for liability, earthquake, fire and flood damage? How restrictive is the Association with certain rules and regulations. By understanding and being aware of these things upfront, lots of grief and misunderstanding is averted later.

With that said, there are now attorneys who specialize in reviewing the HOA documents for buyers who feel the HOA package is too overwhelming. For a fee, these attorneys will read and render their opinion as to any possible issues that might arise.

From the first time buyer, who is attracted by the “buy-in” affordability of many condos and who is looking to minimize the tax bite that renting can create, to the busy executive, or “empty-nester” looking for “hassle-free” living at the turn of a key, condominium or “community association” living can provide exactly what they are looking for. Add in the amenities such as pools, spas, saunas, exercise rooms, tennis courts, clubhouse, jogging paths and sometimes tranquil lagoons, all maintenance free, and it seems almost magical, similar to a resort atmosphere.

However, if you do not do your homework, owning a condominium could prove to be very costly. Special assessments and continuous up-ticks in the dues could cause you great financial duress. A well-run, accountable “Association” will make the complex look and feel fabulous. One with problems can make it your worst nightmare.

Understanding Reverse Mortgages Part 1

Fri, 10 Sep 2010 00:00:00 -0700

Understanding Reverse Mortgages Part 1

Bobbi Decker, Broker, Realtor®, GRI, CRS, SRES

Reverse mortgages are perhaps the most misunderstood loans available today. They got off to a bad start when they were first offered by unscrupulous lenders. However, after many years, they are offered by very reputable lenders with strict guidelines. These loans can be a tremendous help to seniors who have huge amounts of equity locked up in their homes. Because they are retired without a source of income, the conventional methods will not work. Conventional lenders qualify the individual and their income. Reverse mortgages, on the other hand qualify the home and its equity, not the individual. The key to success with this product is understanding how it works and working with a reputable lender.

A lender paying you a certain monthly sum for as long as you live, without having to make monthly payments back to the lender, can be a wonderful option for seniors on a fixed income. Yes, you can stay in your own home while utilizing the equity you have built up. There usually are no restrictions on how you use your money from your loan. These loans should be non-recourse loans where lender looks to the property only for repayment. FHA loans are insured with both the owner and the lender being covered. This type of loan is also often without tax consequences, but ask the professionals because there are some caveats. It does not affect Medicare or Social Security under most circumstances, but again, double check. The loan is repaid when the owner or their heirs sell the home. At the time the loan is repaid, any remaining equity belongs to the senior or the heirs.

The qualifications are simple. The person/persons applying must be owner-occupants, over 62, living in a single-family home, condominium and/or planned unit development. It is critical that you are living in the unit when you apply for this loan. Do not move out and then try to apply. That will not work. You will not be eligible. In most cases, existing loans need to be paid off. However, if you have substantial equity, you may be able to package the old loan into the new loan.

There are many different approaches and combinations of approaches from a simple “line of credit” option that lets you decide how much of your equity you would like to use and when, to the “term” approach where you receive equal monthly income payments for a fixed period of time. Then there are “tenure” agreements where you receive equal monthly income payments for as long as you occupy the property as your principal residence. There is the “lump sum” payment, as well as a combination of line of credit with term or tenure loans. Next week’s article will cover Reverse Mortgages for Purchase which is a new way to utilize these loans.

Never put your home in jeopardy by signing documents you do not understand. There are a number of consumer protections that are smart to follow. Work with a trained and experienced loan officer. There is counseling available, a service that organizations are certified by the state to provide. Also, make certain the lender you are working with adheres to the National Reverse Mortgage Lenders Association (NRMLA) code of conduct.

Reverse Mortgages Part 2

Fri, 10 Sep 2010 00:00:00 -0700

Reverse Mortgages Part 2

Bobbi Decker, GRI, CRS, SRES Broker

Last week we covered the ways that someone over 62 can access their home equity and do so without having to make monthly payments or having to be gainfully employed. The lender on Reverse Mortgages looks to the property rather than the borrower as the prime means of repayment. For people who are retired and who have a good equity in their home, this might be just what they need. Remember, this column aims to educate and expose consumers to what is available to them with regards to real estate. Always check with your financial advisor before jumping into anything, no matter how fabulous it may sound.

The newest Reverse Mortgage product to market is known as Reverse Mortgage for Purchase. This program helps people over 62 who sell their home and do not have enough equity from the 1st home to pay all cash for their next home. Because they are most likely retired and conventional loan will probably not do the trick as there may not be enough income to support the monthly payment. This is how the reverse mortgage for purchase is different. It will supply the needed cash and the borrower does not make monthly payments.

There is a formula that is utilized which is based on the borrower’s age (the youngest of the couple is the age that is used, again must be 62+) combined with the value of the property being purchased. Now the sellers can use the money they cashed out of the 1st home plus the amount they qualify for in the purchase of the replacement home. There was a time when most retired people actually did own their homes free and clear. That is not the case now. Many borrowed to help family through tough economic times and they do not have as much equity as they would like.

This “purchase” program helps supply the “missing link” of additional cash to complete the transaction. The borrower can take the entire amount at one time or can use some and leave the rest in a line of credit to be used at a later date. The borrower is only charged interest on the sums that are actually borrowed. How many seniors have felt “locked” into their current home because they could not get the cash out they needed to pay for the next home all cash. They did not want to be saddled with monthly payments nor did they feel they could ever qualify for a new conventional loan especially in today’s unforgiving lending environment. What a great tool to overcome those hurdles.

As the boomers age, more and more programs will spring up…the key to the borrower’s success is to understand what they are doing and how it will impact their plans of retirement, etc. Reverse mortgages are no different. There are HUD-approved agencies that can help counsel one such as CredAbility 1-800-251-2227 and NCOA Natinal Council on Aging 1-800-510-0301 and in our immediate area there is CCCS of San Francisco 1-800 777 7526.

Agent's Value Proposition

Mon, 19 Jul 2010 00:00:00 -0700

Agent’s Value Proposition

Bobbi Decker, Broker, GRI, CRS, SRES

Now more than ever as we move through 2010, where nothing in the Real Estate market is the same, where we see a whole new set of rules, buyers and sellers need to recognize value in the depth and breadth of the service being provided by their Realtor®. This value is based on integrity, confidentiality and committed actions of a Realtor that make a difference for their clients and enhance the results that the clients are seeking. Let’s look at some of the elements that go into creating value for the client.

One of the biggest differentiators is professionalism. Is the agent’s skill and commitment level to the real estate profession where it should be? Are they skilled in contracts, negotiating, marketing and the tools of the trade? A well-informed consumer makes a better buyer/seller. An educated, aware agent ensures that the client is also on top of the dynamics of the current real estate market.

In addition, there are many elements on the periphery that can add value to a client. What does the agent do that differentiates them from the crowd? They might offer a cadre of support personnel and/or companies that can help the client with almost every detail before, during, and after the transaction. The entire real estate transaction process is overwhelming to most consumers so why not designate the agent as the “go to” person. For the sellers, as well as buyers, an agent’s team would have a clear list of possible painters, handymen and home cleaning service at their client’s disposal. The list would also include stagers/decorators, reliable movers, electricians, plumbers, pet sitters and even attorneys, or CPAs to handle the client’s financial questions. A well-organized team makes the Realtor look like the organized businessperson they should be.

Be sure that the Realtor you select is one who can instruct you, the seller/buyer, on key market elements such as being realistic about price and terms and conditions that all blend to create the property’s value. Days on market have increased; the newspaper headlines could demoralize the most enthusiastic buyers. A knowledgeable Realtor can educate the buyers on the local market while the agents for the sellers can come up with marketing plans that are proactive not passive. A comprehensive marketing plan is imperative. Anyone in the business for more then the past ten years knows markets will and do change. Doing the right things, the right way, consistently, is part of the Realtor’s on-going reputation and should serve you well through the transaction.

When interviewing, ask the agents about their career. Knowing their level of commitment and enthusiasm will lend insight as to how you will work together through the transaction. It is critical that there is a connection between the parties for a successful transaction to occur. Do you feel they will go that extra mile and do for you beyond what anyone else might do? Will they make your property more visible and more desirable in the market by understanding the impact of internet marketing as well as print? Are they good listeners?

Buying and selling homes is very emotional and stressful, so get a list together of what you consider important traits, and then stick with it.

Independence Day!

Fri, 02 Jul 2010 00:00:00 -0700

Independence Day!

By Bobbi Decker

Oh how lucky are we? The media is always ready to bring us the latest bad news including negative information that touches us too close to home. However, as imperfect as it is, we are so fortunate to be Americans and to live in one of the best locations in our country.

Let’s look at what we do have to be thankful for in our real estate market. Even though many of the large banks are having great difficulty handling loans efficiently, we have some of the lowest interest rates in decades. The number one requirement for this market is patience. On the Peninsula we have a diversity of wonderful properties that permits buyers to find that “just right” home. Prices are the best they have been in recent memory. There is precious little land left on which to build new homes or condominiums on our Peninsula. If the population forecasts come true, there will be more people who will want to live here in the next 10 years than we will have housing for of any kind. Our area is still the home of biotech, high tech and innovation.

Right in line with the right to vote, the rule of law and the freedoms we enjoy is home ownership. It still remains the American Dream. How many backyard barbeques are going to be utilized today? And just how busy will the pools be both at homes and condominium complexes? How many friends and neighbors will attend parades and fireworks? Sharing the love of our independence with family, friends and neighbors is a wonderful way to be thankful for all that we have and what we may do in the future. What a great day the 4^th of July is!

Do you want to be in a new home for your 4th of July celebration next year? Now is a great time to take action to secure that new property. The opportunities, interest rates and prices are perfectly aligned. Are you ready, preapproved for the level of financing you can be comfortable with, and working with the agent you know will help you achieve your goals? If not, what are you waiting for? Find that Realtor who will help you clarify your needs and wants, help you get the details organized for your house hunting and help you find just the right home for your 2011 Celebration of Independence!

REALTORS®' Community Focus

Fri, 18 Jun 2010 00:00:00 -0700

REALTORS^®,Community Focus

By Bobbi Decker, Broker, Realtor, CRS, GRI, SRES

Guess who cares as much as you do about your property rights and the quality of services that are provided to every buyer and seller as much as you do? Of course, the answer is Realtors® who add value to the community in a myriad of ways. As individuals, they provide a variety of services and support for the community. Whether it is on the local or national level, they provide very focused efforts to add value to serious property issues. The issues range from the deductibility of mortgage interest to state legislative issues down to local regulations and important charitable endeavors. The true professionals in the real estate industry do more than assist buyers and sellers in their pursuit of their American Dream, which is to own their own home. They are also actively involved in building vibrant communities supporting nonprofits of all types, from Shared Housing such as HIP, to affordable housing causes and nonprofits such as Habitat for Humanity and Shelter Network, the list is practically endless. On the government scene, they support property rights initiatives, and work diligently to keep your valuable investment in your home, and all of the benefits of owning property, in your hands. They promote Equal Opportunity Housing laws and property right issues across the local city, county, state and federal government jurisdictions. The passion that they put forward in these endeavors is unmatched and most critical in maintaining our rights as home owners and making our neighborhoods better places to live.

Then, there is the SAMCAR Foundation, which supports nonprofit efforts whose major focus is shelter and/or housing. This giving back to the community makes for a stronger, more vital community from school issues to equal housing; it all blends to make your neighborhood one that someone would want to live in.

The annual Realtor Service Volunteer Program (RSVP) assists the elderly and disabled with challenging household tasks. This has been met with resounding positive feedback. From flipping mattresses, to trimming hedges to replacing smoke detector batteries and washing windows, these Realtors make a huge difference in someone’s life who might not be able to get these tasks done otherwise.

It logically follows then, that when you are selecting a real estate professional, ask them what they and their company have done to support your property rights, local, regional and national non-profits and any potentially detrimental legislative or regulatory issues. The true professionals who are actively engaged in making a difference for us all are often the people who care deeply about the level of service they provide for their clients.

What is Really Going on in Real Estate?

Sat, 12 Jun 2010 00:00:00 -0700

What is Really Going on in Real Estate?

Bobbi Decker, Associate Broker, CRS, SRES, GRI

OK…after last week’s open houses I feel I need to ask. I have numerous listings and the activity on each gives me the feeling that the market is at best confused, very, very confused.

This past weekend, there were too many buyers to count coming through a well priced listing in a wonderful little Peninsula city. Everyone fell in love immediately as they walked through the home. They envisioned their families cozily ensconced in this home…playing in the secluded yard, eating in the cool dining room, playing games in the spacious living room, sleeping in the charming bedrooms…..all for an incredibly affordable price. To my utter amazement, more than 65% of the groups who walked through visualizing this being their home had not been pre-approved. What are they thinking…. Searching without a firm pre-approval??

With interest rates below 5% for a 30 yr fixed, an inventory of good, solid homes at affordable prices in limited supply and potential buyers out in force in all the good areas, there is no way these one-of-a-kind properties will go to an unprepared buyer.

So many of these potential homeowners who are simply dreaming of home ownership will never attain their dream. The little home that everyone fell in love with was listed 8 days. It sold over asking price.…in one of the most difficult markets in the past 30 yrs!!

It was purchased by buyers with a terrific agent who guided them to follow the “rules”. They were ready to go when the opportunity arrived and are excited beyond their wildest dreams that they have their special home. How? Why? What was their strategy?

Actually, it is a very simple recipe to follow. Every successful person follows this “golden rule”. It is to develop a plan and then follow it. Surround yourself with the most talented, experienced professionals you can and then do the next critical thing- follow their guidance and advice. It does not matter who you surround yourself with if you go merrily down the path without following their advice.

Let me share the happy buyers’ plan step by step;

They selected an agent they felt understood their goals and they worked closely throughout the entire buying process.
They also got “pre-approved” with a reputable lender immediately so they could focus on the price range that truly met their needs.
They did their research on the internet and remained open to what their Realtor thought might fit their needs. They toured together…none of this “go out and if you see something give me a call”.
When they found the home they felt met almost all their needs (no home will meet them all so forget that thought) their agent got the seller/property disclosures and helped guide them through each document.

When the time came to present the offer they had it all…they had disclosures read and signed, their loan amount was in place, and they had the confidence that this was the home they absolutely wanted because they had been out with their agent to see the comparable properties on the market and had utilized the Internet.

Remember the old adage: Prior Preparation Prevents Poor Performance. It is the key to successful buying!!!

Rising Tide Theory of Real Estate

Sun, 06 Jun 2010 00:00:00 -0700

Rising Tide Theory of Real Estate

Bobbi Decker, Broker Associate, CRS, GRI, SRES

Most of us are aware of the saying, “A rising tide lifts all boats”. Let’s look at the applicability of this concept and a few other “tide changers” as they relate to our real estate. One big “tide changer” is the dramatic drop in mortgage interest rates to near 50 year lows last week. The Wall Street Journal and some economists attribute the drop to the problems with the European economy which is driving investors to look for a safer place to put their money. This should alert any remaining “fence sitter” buyers that have the resources to get in the real estate market and act now. There has been a dramatic rise in pending sales. This is pulling down the inventory especially at the lower end of the market. If the rates remain low, the increase in competition for fewer homes will drive up the prices. For those purchasing a home for the first time, you have access to the California $10,000 tax credit. With all these factors working in sync, you can be confident the lower end of the market, particularly condos which offer more care-free lifestyles, will get in even shorter supply. The high end of the market, the million dollar plus range plus, has been relatively quiet except for a few areas. The “rising tide” of purchases under a million will not quickly lift the higher end of the market. Let’s look at some scenarios.

If you are looking to downsize. You have a home in the mid-million plus dollar range. Your price is still depressed and/or stagnant depending on location. It is probably far below what you had hoped to get. You would like to move to a condo, but think you should wait until your current home meets your old “hot” market value. Of course timing is everything. Let’s assume your downsizing effort becomes mandatory in the next 12 months due to health issues. The high end may have recovered slightly if the economy improves. On the other hand, the more affordable condo market has very low inventories and prices have actually risen over the past 6 month period. Waiting may cost you money in the overall picture.

Suppose you wait the next 8 years and your price is close to what you want largely because inflation has kicked in. Interest rates are high and prices at all levels did rise at about the same percentage rate. (We can’t build much more housing at any level on the Peninsula). Was there any real advantage to waiting? Probably not.

Bottom line……. Waiting doesn’t give you any assurance that you will find that magic moment when all the “tides” are in your favor. Just remember, you are on the Peninsula and with the absence of any major catastrophes our long term value for whatever property you own here will improve. There are plenty of reasons to act now. Take stock of your wants and needs and go for it!

ABC's of Property Insurance

Thu, 13 May 2010 00:00:00 -0700

ABC’s of Property Insurance

By Bobbi Decker, Broker, Realtor®, CRS, GRI, SRES

Mortgage lenders require insurance coverage to protect their loans. The availability and affordability of property casualty insurance plays an important role in property ownership and the real estate market in general. In today’s climate of rising claims and losses insurers are looking for more ways to limit their risk. These include increasing the cost of premiums, limiting the number of policies written, tightening their underwriting criteria for both the properties and the borrowers, as well as adding to the list of things that will be excluded from the property insurance policy entirely. Let’s look at these various areas and understand how they may affect you.

First, if you are buying or selling a home, securing insurance for the close of escrow is critical. The buyer should start immediately to work with their insurance broker or agent to arrange for the coverage that satisfies their lending institution and best suits the buyer’s needs as well. There are a number of factors that can affect your ability to secure insurance. These include the number of claims the current home owner has filed on the property, poor FICO credit score of the buyer and past claims filed by the buyer on previous properties. The current condition of the property is key. What are the physical characteristics? Is there a leaky roof, electrical or plumbing updates needed or are there foundation or mold problems? The location is also critical. Is it located on the coast where storm damage can occur or in one of California’s earthquake or flood zones?

Filing too many claims can increase your coverage costs or, in some cases, the insurer will not renew coverage. If the property has a history of problems that eventually became claims, insurers will be less likely to provide economically favorable policies. Prior water damage claims have stigmatized some properties to the point that coverage is almost impossible to secure at any price. And how does an insurer know all this claim information? If you have filed a claim in the past, there is a ninety percent probability that it was recorded in Comprehensive Loss Underwriting Exchange or CLUE database that also contains your credit score, driving record reporting as well as your claims history.

So what can you do to help yourself secure best rates and policy coverage? That all important FICO credit score should be watched carefully and make sure those records are accurate. Be certain insurance claims you file are valid. If the damage is minor, it may be wise just to take care of the problem yourself. Higher deductibles can also lower premiums. Good maintenance practices and immediate attention to small problems around the house can prevent major claims later. Any water damage or signs of mold should be addressed immediately. These things will not clear themselves up so act quickly. You need to have a professional, talented insurance agent or broker on your team. Their competency and efforts on your behalf can be critical to your pocketbook and sense of well-being.

Reverse Mortgage Precautions

Thu, 06 May 2010 00:00:00 -0700

Reverse Mortgage Precautions

Bobbi Decker, Broker, Realtor®, GRI, CRS, SRES

Reverse mortgages are all “the buzz” lately. You cannot watch TV or read a periodical or newspaper and not see ads for “reverse mortgage”. The key to success with this product is understanding how it works and working with a reputable lender.

A lender paying you a certain monthly sum for as long as you live, without having to make monthly payments back to the lender, can be a wonderful option for seniors on a fixed income. Yes, you can stay in your own home while utilizing the equity you have built up. There usually are no restrictions on how you use your money from your loan. These loans should be non-recourse loans where a lender looks only to the property for repayment. FHA loans are insured with both the owner and the lender being covered. This type of loan is also often without tax consequences, but ask the professionals as there are some caveats. It does not affect Medicare or Social Security under most circumstances, but again, double check. The loan is repaid when the owner or their heirs sell the home. At the time the loan is repaid, any remaining equity belongs to the senior or the heirs.

The qualifications are simple. The person/persons applying must be owner-occupants, over age 62, living in a single-family home, condominium and/or planned unit development. It is critical that you are living in the unit when you apply for this loan. Do not move out and then try to apply. That will not work. You will not be eligible. In most cases, existing loans need to be paid off. However, if you have substantial equity, you may be able to package the old loan into the new loan.

There are many different approaches and combinations of approaches from a simple “line of credit” option that lets you decide how much of your equity you would like to use and when, to the “term” approach where you receive equal monthly income for a fixed period of time. Then there are “tenure” agreements where you receive equal monthly income for as long as you occupy the property as your principal residence. There is the “lump sum” payment, as well as a combination of a line of credit with term or tenure loans.

Never put your home in jeopardy by signing documents you do not understand. There are a number of consumer protections that are smart to follow. Work with a trained and experienced loan officer. There is counseling available, a service that organizations such as HIP (Housing Investment Program) are certified by the state to provide. Also, make certain the lender you are working with adheres to the National Reverse Mortgage Lenders Association (NRMLA) code of conduct.

Women And Homeownership

Sat, 01 May 2010 00:00:00 -0700

Women and Homeownership

By Bobbi Decker, Broker, Realtor®, GRI, CRS, SRES

Did you know that nationally women home ownerships are up 400% since 1950? That is an amazing statistic.

The foundation investment that many unmarried women should consider first is purchase of a single family home or condominium. The key is to focus, understanding that ownership is the number one goal. Without a clear mindset, this task can become daunting. Homeownership provides a starting point by slowing the outflow of cash in the form of taxes to the IRS. Homeownership is one of the best buffers against taxes because the interest on your loan and property taxes are deductible whereas your rent is not.

This article speaks to owning a property to live in and let the equity grow for you. Owning a house/condo helps a woman make a secure investment for the future. Your first property doesn’t have to be the ultimate dream home. Purchasing a property gives you an immediate tax benefit and the assurance of a place to call your own.

YOUR CREDIT RATING IS CRITICAL !! Do not underestimate the importance of have good credit (your FICO score). To understand what your options are, it is a good idea to meet with a loan provider early in your search process. There maybe special programs that you would not normally hear about that will make the process easier. The key is to find a trusted loan professional, and then listen to them. Feedback from friends and family is fine, but a professional will help you realize your goal efficiently and effectively.

For divorced or widowed women with a home from your marriage you will want to look at your property options in a different light. Size, taxes, location and liquidity are critical factors you should review. Is your current property too large, costly and inconvenient to maintain? Is it time to downsize and take your $250,000 (could be $500,000 if widowed recently, seek financial advisor for this information) forgiveness to improve your liquidity? Do you want to stay where you are, but your current cash flow isn’t enough to let you do some of the other activities you would like to do? Depending on your age, a reverse mortgage may be an answer. Just consult experts before you make any decisions, not afterwards.

Whatever your circumstances, owning property is a cornerstone to your long-term financial wellbeing. Your action plan should encompass the following: Work with professionals that have your interest at heart. Critical to the process is working with a Realtor with strong credentials and references, who brings a seasoned team to your aid. Next is a loan consultant who understands your financial picture and knows the best sources of funds. Finally, round off your team with accountants and financial advisors who can help guide your decisions according to your financial goals.

Being Prepared Ensures Results--2010

Sun, 25 Apr 2010 00:00:00 -0700

Being Prepared ensures Results

By Bobbi Decker, Broker, REALTOR®, GRI, CRS, SRES

The process of buying a house in a complex market like ours can be difficult, daunting and frustrating. Despite what people are saying, it is still a seller’s market. You may not be seeing 10-12 offers per property, but with the limited supply, there is still a substantial shortage of great properties. You should embark on a plan to know how to improve your odds of succeeding in your quest.

At the risk of sounding redundant, be sure to look to the professionals for each of the items on your checklist. First, get “Pre-approved”. Work with a qualified loan specialist that will dig in deeply, work with you and your credit ratings to maximize the amount of capital you will have available to you to secure that perfect property. Sometimes you may have to work to clean up a few things in your credit profile that will help improve your financial flexibility. Your FICO score is the key to securing a great loan with great terms. You need to know what it is and how to improve it, if it needs improvement. Without this cornerstone in place, nothing is going to happen for you.

A close tie for first is finding the right Realtor. There are many agents out there these days, but remember there is no substitute for experience and a track record of success. A Realtor is bound by a Code of Ethics and is part of an organization that is involved in making sure this code is followed. Family and friends of friends will have all kinds of insights, suggestions and recommendations. Be sure to do a thorough job of assessing the individuals they present to you. For those of you who follow this column or our Pen TV program, you know the extraordinary list of details that are involved with each step of buying & selling a property. A home purchase is often the largest financial investment and obligation you will ever make so do take the time and put forth the effort to get the best assistance you can. The seasoned professional doesn’t cost more than the others and often can save you money, keep your frustration to a minimum, educate you on the nuances of home buying and give you a better chance of winning. And what is the profile of this “right” Realtor. That is a long list. Do they have a track record of happy buyers, ones that have bought in this type of market? Ask for references. It is always a good idea to talk to those buyers. Does the Realtor have the credentials and the credibility with their pears that will make them the agent that the seller’s agent would prefer to work with? Do they have the “can-do attitude” that it takes to get you where you want to go. Being able to keep you focused when you keep bidding and are outbid is critical to the process. Getting discouraged or angry over conditions makes no sense. Just when you feel you want to give up on your search for your home, the market may take a brief pause. If you are not out there looking, you will miss your opportunity. A Realtor who has experienced these twists and turns can keep you headed in the right direction. Finding a Realtor that you connect with, being clear on what you would like, and then listening to that Realtor will make your efforts less frustrating and more rewarding.

When two or more people are involved with the decision, you absolutely must make a list separate from each other and determine what are the “must-haves” vs. the “would-like-to-haves” The number of “out of the blue” reversals from stated goals and environments could fill a book. “No, I will never live there” turns into “we bought a house there”. “We want the shortest commute to our jobs in Silicon Valley”, oops, “we bought a home in Half Moon Bay”. We want the “best home, best schools, best climate, etc.” Remember, you can’t have it all. Compromise is part of life, so figure out what is highest on your list and begin by writing the points down. Lists in your mind do not count. Unless it is written there is no accountability to plan. The moral of this story is be flexible, try to really be clear on what it is that will make all the effected parties the happiest, know what you can afford and what you truly need. The professionals on your team will be an immense help here. Let them show you the options and keep your minds open to new possibilities.

There is the old adage, “perseverance and determination alone are omnipotent”. In this market, you will probably have to go through writing a few offers before you get the home that will fill your needs. Stay the course, select a Realtor who keeps you informed on each transaction, become an informed consumer yourself and be bold early. This is not a market for the faint of heart.

Healthy House Hints

Sun, 11 Apr 2010 00:00:00 -0700

Healthy House Hints

By Bobbi Decker, Broker Associate, CRS, GRI, SRES

Your car manufacturer has a recommended maintenance list for your car during its useful life. Think of the useful life of your home. Here is a list to help new purchasers or long time homeowners and every one in-between to insure you maximize the quality, safety and value of your homes.

Defective heating - Inadequate heat throughout the home. Solution: Keep furnace serviced and cleaned on a regular basis (at least once a year) Change filters twice a year.

Poor Ventilation -Your home feels too hot in the summer and too cold in the winter. Put a thermometer in the attic on a warm, windless day. There should be no more than 10-15% difference than the outside temperature. Solution: Be sure there are adequate vents. Vents should not be painted over which obstructs proper air circulation.

Faulty Plumbing - Common problems and their solutions are:

A .Low water pressure. Solution A: Have old water lines cleared or replace if they are simply too old.

B. Leaking water drains and pipes due to age or improperly installed plumbing. Solution: Call your plumber and get them repaired ASAP.

C. Leaking toilet can be unsightly and create moisture damage. Solution C: Replace wax seal as soon as it is noticed.

D. Slow draining pipes due to tree roots or sludge buildup. Solution D: If drain cleaners do not work call licensed plumber to evaluate the situation. Clogged sinks breed germs.

Poor Upkeep – On the out side of the home. Solution: Repaint and caulk exterior of home routinely. Replace rotting wood sills and fascia before the condition spreads. Seal driveways and walkways against moisture intrusion and trim back foliage and trees regularly.

Foundation Flaws - Not all cracks are cause for alarm. Watch for cracks appearing over windows and doors, cracks in foundation that could allow for water intrusion and uneven or sloping floors. Solution: Take a yearly walk around the foundation and look for anything “new”

Roof Issues - Poor upkeep on roof can lead to water stains on the interior, and could lead to rot. Solution: Clean gutters and downspouts, re-secure flashings, keep tree debris off roof along with trimming branches that could rub against roof.

Flooding and dampness in the basement - Solution: Repair or reroute gutters away from foundation. Check plumbing lines for leaks. Clean out footing drains. A sump pump or French drain may be in order.

Faulty gutters and leaders (Caps on the ends of gutters) Solution: Replace or repair bent, broken, or improperly angled gutters and downspouts. Be sure gutters are properly sealed. Prevent clogs by cleaning regularly.

Poor grading - Solution: Remove piles of compost and wood chips from the foundation. Grade so that the ground slopes “away” from the foundation.

Faulty Electrical Wiring - Solution: Upgrade electrical panels for today’s usage. Get a licensed electrician to do this….electricity is not something to fool with.

Remember, if you are not sure how to fix a problem, call in an expert. They will save you time, money and your mental health!!

Spring House-Hunting 2010!!

Sun, 04 Apr 2010 00:00:00 -0700

Spring House-Hunting!!

Bobbi Decker, Broker Associate, GRI, CRS, SRES

I have visited and re-visited this subject so often, yet the same questions keep arising as to what the real estate market is doing. Is it up, down, or flat?? Well here is the “scoop”. On the Peninsula, the market is much stronger and sustainable than other areas around the Bay and far healthier than the U.S. as a whole.

To motivate those sitting on the “real estate fence” (some buyers have been sitting on that fence a long time), there are incentives to make a decision. With interest rates remaining at historically low levels and average home prices as low as they have been in five years, home buyers still have time to take advantage of the $8,000 federal tax credit available for first-time buyers, as well as a $6,500 credit for current home owners (as per federal guidelines).

Furthermore, the State of California has re-instated the $10,000 tax credit for first time home buyers. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. However, the California money will come from a “pool” of money and when it runs out, it runs out…so do not be left out. Find a professional to help you get going. Time is “a wasting” as they say with deadlines looming and inflationary pressures bearing down. If you have good credit, a stable job and need somewhere to live, this is a great opportunity for you.

First REALTOR® Nationwide Open House Weekend April 10-11, 2010 Home Buying Season Kicks Off with Open Houses Held throughout the Country.

The open homes will provide residents throughout the country a chance to view homes as the home buying season officially kicks off. .

This Open House extravaganza will provide potential home buyers with an opportunity to view homes in their desired market area, obtain information and answers to questions about specific homes, market conditions and the home buying process. To see a list of all the open homes available within a zip code, go to www.mlslistings.com and click on “Open Homes”. Look for the blue and white REALTOR® balloons!

This buying opportunity won’t be around forever. The mix of low interest rates, the tax credit and available inventory combines to make this a fantastic opportunity to buy this spring, especially for those who may have been priced out of the market a few years ago. Hope to hear from some of you that you did find the “dream” home you have been searching for. Happy House-Hunting!!

Realtors Community Concern

Sat, 27 Mar 2010 00:00:00 -0700

Realtors Community Concern.

By Bobbi Decker, Broker, Realtor®, CRS, GRI, SRES

I have always believed and tend to expound on the idea that by giving back, we build stronger more cohesive communities. Looking back on 2009, I was amazed at all the non-profits and communities that were touched by the San Mateo Association of Realtors (SAMCAR).

SAMCAR, San Mateo County Association of Realtors, is comprised of, not only Realtors, but also Affiliates who all join together to stage events that help the community through services and/or donations. Each year, tens of thousands of dollars are raised by these very Realtors and Affiliates. These funds then find their way back to deserving non-profits in our communities. Affiliates are such entities as lenders, title companies, home warranty firms, home inspection companies, etc.). The Association and its members provide a hardworking, diligent core of volunteers who work to meet the needs of those non-profits. Their contributions make a significant difference in our community.

While Realtors and Affiliate’s main task is assisting buyers and sellers in their pursuit of the American Dream, owning their own home, many of them are also actively involved in building vibrant communities through their charitable activities. They support non-profits of all types, from donating time to assisting seniors with tasks often as simple as changing light bulbs and clearing gutters, to backing social events which provide proceeds that then go to affordable housing programs and charities. The list of non-profits that are touched is almost endless. On the government scene, they support property rights initiatives, and work diligently to keep your valuable investment of owning a home, and all of its benefits, in your hands. They promote Equal Opportunity Housing laws and property rights issues across local community, county, state and federal government jurisdictions. The passion that they put forward in these endeavors is unmatched.

Over the years, the association has supported over 50 local non-profits with financial donations. In addition to these monetary contributions, the Association organizes group efforts such as the annual Realtor Service Volunteer Program (RSVP) that assists the elderly and disabled with challenging household tasks. This has been met with resounding positive feedback. From flipping mattresses, to trimming hedges, to replacing smoke detector batteries and washing windows, these Realtors and Affiliates make a huge difference in someone’s life who might not be able to get these tasks done easily.

Remember these people who care about the community are those who live in it and make their living in it. Realtors and Affiliates are certainly a major group making a difference. They are a microcosm of each of our communities with a broad spectrum of nationalities, ethnicity and religious background, all striving for one goal…..to build stronger communities. A great group of individuals with caring hearts.

How Important is your FICO Score?

Sat, 20 Mar 2010 00:00:00 -0700

How Important is your FICO Score?

Bobbi Decker, Realtor®, GRI, CRS, SRES

There seems to be must “misinformation” surrounding what is known as your FICO score, how it affects you and, most importantly, how you and your behaviour can affect the score. You cannot open a newspaper or magazine without coming face to face with FICO dialogue. Most people are not sure what FICO is and how it affects their life. This score actually governs who will and will not be able to purchase many items from homes to cars on credit. It even affects your ability to get good insurance at reasonable rates. A FICO has amazing implications both good and bad.

Exactly what is a FICO® Score? It is a 3 digit scoring system, developed by Fair Isaac & Company, a credit rating service. It is used by most lenders to base their charges for interest rates, monthly fees and even your ability to secure a loan at any rate. Insurance companies have begun to use it to determine insurance rates on homes and cars. As you can see, FICO has far reaching affects.

Credit Bureaus such as TransUnion, Equifax and Experian all use this system and they can all differ slightly even when rating the same person. The higher the credit score the more money you save in lower interest rates and fees. The ranges can go from 500 to over 800. There are 5 Key Factors of a FICO score: 35% - Payment History, 30%-Amounts Owed, 15% - Length of Credit History, 10% - New Credit and 10% - Credit in use.

Carrying high credit card balances, closing accounts at the wrong time, and credit card hopping all negatively impact your FICO. With regards to total available credit, percentages are used to determine your credit worthiness; higher availability means a higher credit score. Higher availability means you do not “max” out your credit cards. Try to keep them at less than 50% of the total line of credit to keep the FICO strong. New/Recent late payments really hurt scores. You will need to prioritize: bring past-due amounts current, bring over-limit under the limit. & pay down high balances. Consider paying off recent, small, outstanding past-due amounts, even if disputed. Do not let “the principle” of the matter overshadow the damage that can be done to your score while everyone argues.

With regards to new credit a note of CAUTION: Unsuccessful credit applications hurt FICO scores……Consider unsecured credit cards if your scores are low. Rate shopping (jumping around to get best rates) for mortgages & car loans can hurt scores substantially, as will multiple credit card applications. Consider having only 3 major credit card accounts. If you do not have any credit established, obtain letters from non-revolving creditors. You can learn more by going to www.myfico..com or www.ft-c.gov/credit

Buyers-Utilize the Tax Credits

Wed, 17 Mar 2010 00:00:00 -0700

Buyers-Utilize the Tax Credits

Bobbi Decker, Broker, Realtor®, CRS, GRI, SRES

As we head into March 2010, buyers are jumping back into the real estate market determined to find their dream home. Why? Because the $8,000 tax credit for first-time home buyers was reinstated in December. There is also a new $6,500 credit for owners of existing homes who have lived in their principal residence for five consecutive years out of the last eight. On top of that, the income limits have been increased to $125,000 for a single owner and $225,000 for a couple. These credits are available on homes priced up to $800,000. Time is of the essence.. Purchases that qualify must be in contract by

April 30, 2010 and must close escrow by June 30, 2010.

Surprisingly, despite these wonderful tax breaks, I hear too much talk of gloom and doom causing a number of buyers to still hesitate. As I have said before, this “mis” information usually proves to be just that…bad information. The tightening of lender requirements has taken many buyers out of the market. What an opportunity to spring into action. The Peninsula is short on good inventory and that will not change in the future. Interest rates have stayed steady at historically low levels, and the inventory is offering some great options. Buyers do not wait for the interest rates to “jump” and then lament the lost opportunity. If you are in the market for a home, stay there, do not move to the sidelines. Find a knowledgeable agent who knows the inventory, then set your sails to locating your home.

Next, much has changed on the lending landscape. January 1^st, 2010 brought in a myriad of new guidelines and rules. Even if you were preapproved last year you need to go in for a “tune-up” before you embark on your search this year. You will have the security of knowing the homes you are looking at will actually be the ones you can afford. A pre-approval means the lender has looked at your assets, credit report, and income and has done a thorough check of these items. Once done, the lender will inform the buyer as to the loan programs available for that particular buyer.

Did you know that the biggest obstacle to getting through this process is fear? . Both the fear of being turned down and the concern over credit issues play major roles in buyers not getting pre-approved. Take that concern off the table. Many loan brokers will help you to improve your qualifications such as a weak credit report or bad credit if that is a concern.

Find real estate professionals you trust and build a partnership going forward. As your home needs change, you will have a trusted advisor to whom you can turn. Utilize the homebuyer’s tax credit before it is no longer available.

First Impressions Always Count!

Sat, 20 Feb 2010 00:00:00 -0800

First Impressions Always Count!

By Bobbi Decker, Broker, REALTORâ, GRI, CRS, SRES

There is a great deal you can do to improve the interest, enthusiasm and bottom line results when selling your home. Maximizing the return on your investment in your home is foremost in the minds of sellers. One of the simplest, but sometimes most emotional, issues relates to “Staging” the property you wish to sell. That means letting go and allowing a professional who does this for a living, come into your house before it is on the market to determine either what has to go or what needs to be added to achieve this result. If the property is vacant knowing what to add in the way of furniture, pictures, plants, etc will make the various rooms look the most appealing. Staging can also be as simple as adjusting landscaping or outdoor plant placements that make the exterior as inviting as the inside of the home.

How do you decide to stage or not to stage? Clearly it is a matter of appealing to the broadest audience and making the first impression a positive and lasting one. Yes, it does sound like the right thing to do, but there can be complications just because humans are involved and we all have our preferences, concerns and deep-seated points of view. What if your Realtor tells you that after all the years of collecting your precious mementos and keepsakes that 75% of them have to be boxed and put in storage, and that half to three quarters of your furniture should be removed? Then someone else comes in to add their touches that do not necessarily reflect your taste. More than a few people can feel a little insulted, even hurt, by these changes. Your taste is perfect for you, however, the more universal the appeal, the better. This is a very competitive market and an objective eye is most often the best to guide you by taking the emotion out of the equation.

Sometimes there is very little to do, a simple adjustment here and there. A professional may have already done your decorating or perhaps you are one of those people who just has that eye for detail. Your Realtor may be able to guide you on what to do or will have a variety of team members to help, from gardeners, landscapers, to that great stager. It is a combination of these people that can make an enormous difference.

When looking at an empty house you may only need to stage a few key rooms. The good news is a few well-chosen pieces can do the job of inviting people in and giving the place a warmer, lived in feeling. Remember, there is never a 2^nd chance to make a good 1^st impression.

How To Move Efficiently

Sat, 13 Feb 2010 00:00:00 -0800

How to Move Efficiently.

Bobbi Decker, Broker, GRI, CRS, SRES

As we transition into the next decade, many people are contemplating making a move. There may be a new job opportunity. It may be that the family is expanding and more room is needed. Perhaps the children have grown and are out on their own and now it is time to “downsize”. Whatever the case, knowing how to move efficiently will make for less stress and a smoother transition with far better results.

As has been said, there is an “art to changing places”. Whether the change is for relocating, downsizing, or more square footage with more storage, there needs to be a plan. Haphazard moves create stress and anxiety in all the members involved so remember the old motto “Prior planning prevents potentially poor performance”.

How to begin? There are two schools of thought. You can opt to do-it-yourself. Be sure that you do have the personality to get all the elements coordinated and to coordinate people. Multiple decisions need to be made, will you pack, or will the mover and their team pack? What will go, what will be given away? Who will donated items go to? Who will help disperse the items that need to be sold? Who will unpack you at the other end?

The other school of thought is to hire a full-service moving coordinator. For those who have lived in their homes for 20+ years, the coordinator could be a blessing. It is so hard to let go of memories and all our belongings have “memories” so they are not easily left behind. A third party who has no attachment can help sort through the memorabilia. They can arrange for everything from a garage sale to donations to charity to giving items to friends and family. They can determine what goes where from the old home to the new by creating a placement chart with you. Having a coordinated kitchen at the end of a move, especially if there are little ones scurrying around, is worth its weight in gold. For someone who has not moved in 30+years, the immensity of the project can be overwhelming. Having someone who does this day in and day out can be a wonderful respite. From hiring of the movers, to sorting and inventorying your “treasures”, to packing and coding they again can prove to be invaluable.

A professional moving coordinator can help not only with the move, but can increase the sales value of your home by suggesting “refreshes” such as staging or decorating ideas, managing repairs that may be overdue, keeping everyone on time and on budget, and staying focused on the task at hand. Moving has enormous emotional tugs so just be prepared. A third person with no emotional ties can help guide you out of the need to revisit every item and move you along to completion.

Mortgage Market Outlook for 2010

Sat, 06 Feb 2010 00:00:00 -0800

Mortgage Market Outlook for 2010

Bobbi Decker, Associate broker, CRS, GRI, SRES

I decided to corner a couple of my mortgage broker friends to see what they think is going to occur this coming year and their response was very consistent. They expect “mortgage rates to remain favorable in the first quarter of 2010 as support programs remain in force.” As the economy strengthens, the Federal Reserve will be under pressure to remove support which will likely cause rates to rise. Some suggest that they will keep purchasing mortgage backed securities beyond the current timeframe to further help the housing market. If they do, rates will stay close to where they are today. If the Fed stops purchasing, we could see a rise in the rates.

The tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence has been extended. The tax credit now applies to sales between January 1, 2009 and April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify. For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns. For sales on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

There is also a new “move-up” tax credit. Qualified move-up or repeat home buyers purchasing a home are eligible to claim this credit. The buyer needs to have owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date of the move-up property. The tax credit can be 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers above those limits. (As always, check with your tax advisor before embarking on a purchase)

Failing loans will continue to impact the market adding more foreclosures and affecting values in some areas as more inventory hits the market. Speaking of values, the HVCC, Home Valuation Code of Conduct, that came into effect last year has been closely scrutinized and hopefully will go away sometime this year, none to soon for most of us. The HVCC was an effort to help the buyer, but this new rule took the Lender completely out of the Appraisal process. Issues with appraisers from out of the area and the poor quality of the appraisals caused a myriad of problems with purchasing homes. The appraisals were then challenged by underwriters which created delays and valuation problems. Let’s hope 2010 sees an end to this issue.

What Is A Realtor's Value?

Fri, 29 Jan 2010 00:00:00 -0800

What is a Realtor’s Value?

Bobbi Decker, Broker, GRI, CRS, SRES

I am always amazed when, at an Open House, I ask if someone is utilizing a Realtor® and they answer “We are looking on our own”. Trust me, that is not the right approach, never was and never will be. If a professional is not helping you, your chances of success are incredibly slim.

Now more than ever, where nothing in the Real Estate market is the same, where we see a whole new set of rules, buyers and sellers need to recognize value in the depth and breadth of the service being provided by their Realtor®. This value is based on integrity, confidentiality and committed actions of a Realtor® that make a difference for their clients and enhance the results that the clients are seeking. Being a professional is an ongoing process, one that results in earning the client’s business. Let’s look at some of the elements that go into creating value for the client.

One of the biggest differentiators is professionalism. Is the agent’s skill and commitment level to the real estate profession where it should be? A well-informed consumer makes a better buyer/seller. An educated, aware agent ensures that the client is also on top of the dynamics of the current ever-changing real estate market.

What does the agent do that differentiates them from the crowd? They might offer a cadre of support personnel and/or companies that can help the client with almost every detail before, during, and after the transaction. The entire real estate transaction process is overwhelming to most consumers, so why not designate the agent as the “go to” person. A well-organized team makes the Realtor® look like the organized businessperson they should be.

Be sure that the Realtor® you select is one who can instruct you, the seller/buyer, on key market elements such as being realistic about price and terms and conditions that all blend to create the property’s value. The newspaper headlines could demoralize the most enthusiastic buyers. A knowledgeable Realtor® can educate buyers on the local market while the agents for the sellers can come up with marketing plans that are proactive. Being aware of how the financial crunch is affecting the lending environment and what is needed to complete transaction is critical. Doing the right things, the right way, consistently, is part of the Realtor’s on-going reputation and should serve you well through the transaction.

When interviewing, knowing the Realtor’s level of commitment and enthusiasm will lend insight as to how you will work together through the transaction. It is critical that there is a connection between the parties for a successful transaction to occur. Do you feel they will go that extra mile and do for you beyond what anyone else might do? Are they good listeners? Buying and selling homes is very emotional and stressful, so get a list together of what you consider important traits, and then stick with it.

Purchasing Your American Dream

Sun, 24 Aug 2008 00:00:00 -0700

Purchasing your American Dream

by Bobbi Decker, Broker Associate, CRS,GRI, SRES

As I watched the potential buyers come in and out of my Open House this weekend and as I spoke to them about their plans a disturbing trend emerged. The attitude that abounds is definitely one of follow the crowd. That in and of itself will not help you create the future you are looking for.

Let me elaborate. In 1990-1994, we were in a real estate market similar to this.

I was returning to the Bay Area and had very little to put down (10%) to be exact, but I knew what I could afford and I stayed within those parameters. I also had a little dog who needed a home and many landlords wanted no part of pets. So, I ventured out to find something I liked AND could AFFORD. Once I secured a home, the real estate market continued to correct itself downward. I thought ...there goes my down payment, but I had a home that I could make the payments on, one that provided me with shelter and safety so I did not panic. Renters remember, rent offers you nothing with your tax shelter plans nor does it help with future wealth building which is critical unless you want to work until you are 100.

Fast forward 15 yrs. Not only did I get my original 10% back, but the value has increased substantially. I still have a home I love and a return on my investment that far exceeds any other investment I have made during my lifetime. Buying a home is a long term investment. The past few years were an anomaly. We need to get out of the mindset of doubling the value every couple of years like it was a mere commodity and focus on what owning a home really is. It provides shelter, a place to call your own and yes, a means to build wealth into the future.

So Focus. Much of the media was incorrect when a mere 2-3 years ago it touted "buy, buy, buy...get in or you will be left out". It is equally incorrect now saying "stay on the sidelines because the sky is falling". If you need or want a home, follow these rules and you can realize your dream of home ownership.

Do your homework. Only you know what you really are looking for regarding neighborhoods, etc. Get pre-approved before you begin as it takes much longer with more documentation needed to get it done.

Be realistic. Rates are still great, the supply is wonderful. You do not have to compete with 20 other buyers because lenders will only lend to people they thoroughly check out.

Ignore negative headlines. Most of them are pulled from other regions none of which have ever mirrored what is going on in the Peninsula.

Understand you are buying for long term. Stay within your means, enjoy your American Dream and call me in 15 years. I am positive you will be thrilled that you bought in when you did.