With all of the bad news about the housing market, there are at least three pieces of very good news to report (from the Daily Real Estate News).

• Mortgage rates are at historic lows. Long-term mortgage rates last Thursday were reported at the lowest in the 50 years they’ve been recorded – 4.96 percent.
• Households are growing. The Echo boomers – children of the baby boomers — are getting ready to buy homes, ready to make up a big demographic of buyers, which will lead to a higher number of households.
• Housing prices have fallen and affordability is at its best levels since the 1970s, Berson said.

There’s NO doubt.  It is more difficult to get a loan these days.  But you can do it.  There are, in fact, lots of options. 

Conforming Loans – Ideally, you have a 20% down payment, a good credit score, qualified underwriting, and a conforming loan balance (which in San Francisco and the surrounding areas means a loan amount of $625,500 with a purchase price $781,875 if you have 20% down).  This is the simplest option with the least creative strategizing to get you into a home.  And frankly, there’s a good selection of homes out there that would cost you less than $781,875 right about now.

Some typical rates for this basic scenario are:

30 Year FIXED @ 5.000%
20 Year FIXED @ 5.250%, *Agency High Balance @ 5.625% (*Agency High is the gray area between the national conforming loan limit of $417,000 and $625,500, the conforming loan limit for San Francisco)
15 Year FIXED @ 4.875%
5 Year ARM @ 4.750%

Jumbo Loans – If you have more expensive needs, more expensive tastes or just find that the home you want will cost you $781,875.01 or more, , but less than $1.25M, then you need a different loan package.  These days, you’re looking at 25% down payment, a good credit score, qualified underwriting, and a 1 point charge (a point is one percent of the mortgage loan. Lenders will give borrowers a lower interest rate on the loan in exchange for points up front) and if you can handle all that, then some rates for this scenario are:

30 Year FIXED @ 6.550% 
5 Year ARM @ 5.800%
7 Year ARM @ 5.900%
10 Year ARM @ 6.150%

(With the particular lender that shared this info with me, If the home is a condo, then add .30 to the rate.)

FHA & VA Loans – If you have steady income, but little money to put down, then one of these two loans might work for you.  For FHA loans, you’ll need to have at least 3% to use as a down payment, and another 3% or so (ballpark estimate) to pay for your closing costs.  There are, of course, other restrictions on the type of property, etc.  VA loans have other restrictions too.  You need to have a Certificate of Eligibility from the Veterans Administration.  But in many cases, there is NO down payment required, though a loan amount fee between 2% and 2.75% will be applied (that can, however, be wrapped up into your loan).  Oh, and if the Veteran can make a 5% down payment, the loan fee will be reduced.

Some rates this this scenario (for loan amounts of $100,000 to $625,500) are:

30 Year FIXED @ 5.000% *FHA HIGH BALANCE @ 5.500%* (*Again, this is that gray area between $417,000 and $625,500.)
15 Year FIXED @ 5.000%

Fractional TIC Loans – Tenancy in Common loans come in many shapes and sizes.  In some cases, several parties will each pay their individual share of one large loan.  But there is another option and it’s known as a Fractional TIC Loan (sometimes referred to as individual TIC financing.)  There are only a handful of banks that offer these loans, and the rates are high in comparison to any of the loan options mentioned above.  But, in some cases, you can put just 10% down, which is a definite bonus for many homebuyers.

Some rates for this scenario are:

Of course, you might not fit into any of these categories.  (At the time of this writing for instance, I hadn’t had a lender respond with various options for loans over $1.25M, though they are available.)

If you don’t fit into the above categories, but you still want to buy a home, contact me and I’ll try to put you in touch with the right lender for your particular situation.  And, there is, no doubt, a possibility that your financial situation won’t permit you to buy a house with the current lending guidelines that are in place today. 

And if you find that you’re not financially fit enough to buy a home in today’s real estate market, don’t take that as the end all to your dreams.  Get fit. 

Take the information you get after talking with a lender and put a plan in place to eventually purchase your home.  That may mean tightening the belt to increase your down payment, it may mean increasing your credit score, or it may mean readjusted your vision of your dream home to accommodate your financial reality. 

 

San Francisco is an urban city, so to pretend that crime doesn’t exist would just be silly. But a while back, my neighbor’s house was broken into and burglarized, and I was still somehow surprised. I’m not sure exactly what they took, it was listed as a petty theft, but frankly, it had me, and the rest of my neighbors on edge.

Luckily, no one was home, and no one was hurt. But it got me thinking just a little more about protecting my home from a break-in, and it made me more aware of crime activity in my neighborhood (you can check on your neighborhood my looking on SF CrimeMaps) and the steps that I (or you) can take to not become a potential victim. Read on for some tips and suggestions on what you can do to protect your home.

Security Alarms – Security alarms come in all shapes and sizes and have all sorts of bells and whistles. That doesn’t mean that you need a fancy alarm to protect your home, but it probably doesn’t hurt either. Some alarms have simple contacts on the doors and windows and signal the alarm company and police department if a break-in occurs. Other systems come complete with motion sensors, heat sensors, back-up alarms that work on a cell signal in a power outage, and even video surveillance systems. These are all great options, but they also might break the bank. You can contact Bay Alarm, ADT or Sonitrol (just to name a few companies) if you want to see just how deep you have to dig into your pockets to set up a system.

Good Locks - You all have a lock on your front door and your back door, and I’m guessing that most of your windows are lockable. But for some reason, people tend to forget to actually USE their locks or they leave their windows open when they leave. DYI Network has some suggestions for specific types of locks that can help you to keep your home secure. And once you get them, USE THEM!

Neighborhood Watch – When my home was under construction, my neighbor heard some noise there late one evening. She called me immediately to see if it was us, or if she should call the police. My boyfriend was actually at the house doing some work, but it could have been a burglar, and her phone call could have been the difference between a break-in and a burglary if there was indeed someone prowling there in the middle of the night. This is the start of a neighborhood watch, and if one neighbor can make such a huge difference, imagine the impact an entire neighborhood working together can have on crime! San Francisco Safe is a good resource for safety tips, and also has information on putting together a neighborhood watch team.

Good Habits – This can involve everything from making sure to let your neighbors know when you’re going on vacation, to stopping your mail when you go on vacation, to closing windows and locking doors every time you leave your house, to setting your lights to work on a timer or a motion sensor to deter thieves.

These are just a few tips to start with, but for more, visit SFPD’s web site with Crime Prevention Tips. You can also contact your local police captain if you have specific concerns about your neighborhood and you can also find out about your community’s monthly safety meetings by selecting your local police station from the list and scrolling through the information.

There are all kinds of things we can do to protect ourselves, our homes and our families from crime… but the first thing we need to do is to be remember that crime is out there, and the best way to prevent it is to be aware it exists. Together, we can make a difference and keep our homes and our San Francisco neighborhoods safe.

Still Waiting, originally uploaded on by  eugevon

It’s been eight LONG years.  Time to PART-AY!

If you want to celebrate the End to Bush and the Beginning of an Era of Change with Barack Obama, you have plenty of options in the City.  This San Francisco Realtor would love to join the festivities, but I’ll be sitting at home, fighting a cold and keeping my germs to myself.  I’m considerate like that.

Your 2009 Inauguration options in San Francisco (compiled from About.com):

Inauguration West at Metreon
Metreon – City View Terrace – 4th and Mission
6:00p to 10:00p
Presented by 102.9 FM KBLX. A Bay Area celebration for the inauguration of Barack Obama, raising money for local charities. Live video feeds and film clips from Barack Obama: The Man and His Journey. Entertainment includes Morris Day and the Time, DJs, local celebrities and special guests.

Inauguration Simulcast at Civic Center
Civic Center Plaza – In front of San Francisco City Hall
7:00a to 12:00p
Join NextArts for the simulcast. No entrance fee but organizers ask that you bring new socks or underwear as a charitable donation. Items must be new.

YBGF Broadcast of Inauguration
Yerba Buena Gardens Esplanade – Mission Street between 3rd and 4th
8:00a to 2:00p
In partnership with Westfield, Yerba Buena Gardens will broadcast the Inauguration live on two JumboTrons near Mission Street

Inaugural Ball at Electric Works
Electric Works – 130 8th Street
6:00p to 10:00p
Benefiting the San Francisco Food Bank, suggested donation $10. Inauguration speech will be re-broadcast at 7:00p, with dancing from 8:00p on. Drinks and light hors d’oeuvres will be provided. Formal dress suggested but not required. (Changing rooms and borrowed finery will be available for those coming directly from work.)

San Francisco Democratic Party – Inauguration West
The Green Room – War Memorial Opera House – 401 Van Ness Ave
5:30p to 8:30p – $25 / RSVP by ordering tickets using above link
Join the San Francisco Democratic Party, Emerge CA, Good Ol’ Girls, Democracy Action, Democratic electeds, campaign volunteers and Democratic activists for cocktails, hors d’oeuvres and music — to celebrate Barack Obama’s Inauguration as President of the United States

Inauguration Viewing at SF Public Library
Koret Auditorium at the Main Library (100 Larkin St at Grove)
Doors open at 8:45a, tickets can be obtained in advance at the General Collections Reference Desk (3rd floor)

Green 960 Inaugural Ball
Yoshi’s San Francisco – 1330 Fillmore (at Eddy)
Doors open at 5:00p – $20
Featuring comedians Will Durst & Johnny Steele with live music by J Thompson with Dave Ellis on Sax and Tommie Bradford on drums

Inauguration Benefit for Grid Alternatives
Cafe du Nord – Swedish American Hall
7:00p – $22 (adv) / $25 (door)
Benefit for Grid Alternatives, empowering communities in need by providing renewable energy and energy efficiency services. Food provided by Radio Africa and Kitchen. Rebroadcast of of inauguration at 9pm, DJs.

Inauguration Party at Elbo Room
Elbo Room – 647 Valencia Street
9:00p – Day of show tickets only ($7)
Featuring Forro Brazuca and Cullann’s Hounds

Rock Barack
Paradise Lounge – 1501 Folsom Street
Celebrate on the first day of the Obama Administration, 99-cent drafts, 99-cent well drinks from 6p to 9p. $10 donation at the door, with proceeds going to Glide Foundation of San Francisco.

Inaugural Night Celebration & Art Exhibit
Garage Gallery – 655 Bryant
GarageGallery will be presenting an Obama environment for people to gather and celebrate this momentous occasion. Share a night of celebration and art with your fellow citizens, as we look forward to a future of hope. Experience a multi-media environment of music, Obama’s Inaugural Speech, photography of Obama’s campaign and art inspired by him.

Throw a Shoe at Bush/ To Obama: No War
Justin Herman Plaza – Embarcadero/Market – Jan 17 (12p to 3p), Jan 18 (12p to 3p)
Civic Center – Jan 20 (7a to 12p)
Shoes provided or BYOS, prizes, music. More information at the Courage to Resist website

I was taking a look at my list of San Francisco clients that are looking for a home or have recently purchased a home and I realized that about 35% of them are single women. 

While it does appear that I tend to work with more single female home buyers than national averages, across the country, I did find some interesting statistics while searching the net:

Not bad for girl power, eh?

The demographic includes all women, including never married, divorced or widowed. 

Each person’s motivations for buying a home is, without a doubt, different. 

Past generations waited for Mr. Right to come along and give the poor helpless female financial security. 

But TODAY’S woman is ready to take her financial destiny into her own hands.  According to an older article from USA Today:

The trend is striking, because in 1981, the number of single women and single men home buyers was virtually the same. Since then, the percentage of buyers who are single women has almost doubled, while the percentage of single men buyers slipped 1 percentage point to 9% last year.

The article goes on to say:

“For the first time in history, women have access to the same resources men have always had — money, social status, power,” says Donald Hantula, professor of organizational psychology at Temple University in Philadelphia.

“Women can go and acquire them on their own rather than searching for a mate to provide them. These demographic and social changes are not in line with how we adapted in the hunter-gatherer era.”

In SF, women have a number of options when it comes to buying a home.  My clients’ searches have included houses, condos, TIC’s, lofts, fixer-uppers, new construction, Victorian architecture, modern design and so many other variables that there’s just too many to list.  

And now that we are seeing some better deals in the San Francisco housing market, I’ve been getting more calls from single women ready to take the plunge and buy a home.  In fact, now that the real estate prices have softened in SF, I’ve gotten calls from some past single female clients that are ready to jump in and buy investment property, with a big enough down payment, they are actually able to see a positive net gain on a rental property in San Francisco.

If you’re a single woman and you’re thinking about buying property in San Francisco, whether for your primary residence or for investment purposes, give me a holler – I’m happy to help you decide whether now really is the right time for you to buy.

Welcome back to the “Over, Under, At” weekly feature. It’s a simple breakdown taken from MLS data that shows the number of closed sales that sold Over Asking Price, Under Asking Price or At Asking Price. 

It’s been a while since I’ve done one of these, in fact, the last time I did this feature was March of last year… but considering that the market is a lot different these days than it was last year, I thought it would be interesting to see how things are selling these days. 

*Just a reminder that new construction sales are rarely included in this list since they don’t get posted on the MLS.

It’s no surprise that things have changed a bit from this time last year.  63 homes closed escrow this time last year, while just 23 homes closed escrow last week.  What is similar from last year to this year is that sales under the asking price dominated both time periods.  One other change that we are seeing these days is that escrows are taking longer to close, so while last year, properties that went into contract in mid-December would have been closing right around now, this year, properties that sold in the same time period are likely still in escrow while lenders cross more T’s and dot more I’s than they’ve ever crossed or dotted before.  It’ll be interesting to see the changes (or lack thereof) that will happen to sales volume and to the Over, Under, At stats over the next few weeks.

Keep in mind that these reports are meant to be helpful for potential buyers and sellers – but to really understand the pulse of the SF real estate market, talk to a local SF real estate agent. We’re in the trenches and these closed sales went into escrow a month ago (sometimes less, sometimes more). We are much better in tune with what’s going on in the market TODAY and can give you much more in depth information than any set of statistics can. If you need advice from a San Francisco Realtor, feel free to contact me. I’m always happy to talk real estate.

Here’s a quick breakdown of closed San Francisco home sales for the week from January 12 – 18, 2009:

Single Family Homes - 11 Homes Sold

San Francisco from the tower , originally uploaded on by | El Caganer

It feels like summer.  I’ve been wearing sandals all week and having a helluva a time staying focused on work.  I’m the first to admit that really, we need some rain – but I still can’t help but enjoy wearing a t-shirt in January.    

As for this weekend, I’ll be working.  I’m meeting a couple of buyer clients to check out a few of the good values on the market, and Sunday, I’ll be hosting an open house at 469 Clipper from 2–4pm.  Saying this place is a fixer is an understatement.    Oh, and according to the MLS, it sold for $1,020,000 in July of 2008, but today, you can get it at the bargain basement price of $939,000 or $81,000 LESS than the seller paid for it.  But their loss is your gain, or someone’s gain.  

But just because I’ll be working, doesn’t mean YOU can’t go out and have a good time. 

Don’t forget to check back next week for another awesome San Francisco photo, and if you’d like to throw your photos into the pool of candidates for my SF Photo Friday collection, tag your SF Photos from Flickr with LubaSF.

Happy Friday!

I read somewhere that while 94 percent of homes have fire alarms, only 13 percent have carbon monoxide detectors.

The reason I started thinking about this is that in the last two days, one person in San Francisco was killed and several people in SF and Cupertino were injured and hospitalized due to carbon monoxide poisoning. 

Carbon Monoxide can be deadly.

Carbon Monoxide is a colorless and odorless gas and is produced anytime fuel is burned (many household appliances emit the stuff in small and safe levels.)  Sometimes, when an appliance isn’t working properly or is being used incorrectly, higher levels of the deadly gas are emitted and can kill within minutes. 

It’s not difficult to protect yourself. 

These events serve as a reminder about just how important it is to have a carbon monoxide detector installed in your home.  Though in the San Francisco case, it appears that there was a detector installed, and it was working, and in fact, had been beeping for a day – but someone still lost their life.  Which means you not only have to take precautionary measures, but be ready act.

What to do if your Carbon Monoxide detector goes off?

According to the EPA’s website:

• Make sure it is your CO detector and not your smoke detector.
• Check to see if any member of the household is experiencing symptoms of poisoning.
• If they are, get them out of the house immediately and seek medical attention. Tell the doctor that you suspect CO poisoning.
• If no one is feeling symptoms, ventilate the home with fresh air, turn off all potential sources of CO — your oil or gas furnace, gas water heater, gas range and oven, gas dryer, gas or kerosene space heater and any vehicle or small engine.
• Have a qualified technician inspect your fuel-burning appliances and chimneys to make sure they are operating correctly and that there is nothing blocking the fumes from being vented out of the house.

What are symptoms of Carbon Monoxide poisoning?

Early symptoms of carbon monoxide poisoning include headaches, nausea and fatigue.  Unfortunately, these symptoms are often mistaken for the flu.  By the time the symptoms get severe, heart and brain damage can occur.

If you don’t already have a Carbon Monoxide detector, GET ONE!

There’s no good reason for you to not have a detector in your household.  If you need help choosing one, check out this site for a little help.  IT COULD SAVE YOUR LIFE!

The latest San Francisco Real Estate market report is here. (You can also view previous market updates by selecting the archives on the upper right portion of the screen).

Here’s a little glimpse of the report:

Sales of single-family, re-sale homes dropped 7.5% last year compared to 2007. After peaking in 2003, home sales have fallen each year since. Click on Annual Trends to the left for the full annual report.

The median price for single-family, re-sale homes fell 5.6% in December from the month before, and it was down 12.5% year-over-year. The average price was off 16.5% month-over-month, and was down 30.4% compared to last December.

San Francisco sales of single-family, re-sale homes dropped 5.8% from November, and were off 16.6% year-over-year.

Loft/condo sales rose off the record low set in November, gaining 14.8%. But sales were off 53% compared to December 2007.

The median price for loft/condos in San Francisco fell 9.5% from November, and was down 9.3% year-over-year. The average price for condos dropped 11.5% from November.  The average price was down 14.3% year-over-year.

Read on for full details.

If I’m already working with you on the sale or purchase of a home, you already know the answer to the question. Otherwise, the answer can be really simple, or it can be really complicated… it depends on the situation. Sometimes I’m the seller’s agent, sometimes I’m the buyer’s agent… and on rare occasion, I might even be both! How can that be? Do I have split personalities? No… but depending on who I am working with, my role will be very different.

First, I guess I should back up and explain what it really means to be an “agent.” It means that I am authorized to act on behalf of my client in the purchase of real estate. This agency relationship creates a fiduciary duty on my part , which is essentially a legal relationship between me and my clients. In fact, according to Wikepedia…

A fiduciary duty is the highest standard of care imposed at either equity or law. A fiduciary is expected to be extremely loyal to the person to whom they owe the duty (the “principal“): they must not put their personal interests before the duty, and must not profit from their position as a fiduciary, unless the principal consents. The fiduciary relationship is highlighted by good faith, loyalty and trust, and the word itself originally comes from the Latin fides, meaning faith, and fiducia.

When a fiduciary duty is imposed, equity requires a stricter standard of behavior than the comparable tortious duty of care at common law. It is said the fiduciary has a duty not to be in a situation where personal interests and fiduciary duty conflict, a duty not to be in a situation where their fiduciary duty conflicts with another fiduciary duty, and a duty not to profit from their fiduciary position without express knowledge and consent. A fiduciary cannot have a conflict of interest. It has been said that fiduciaries must conduct themselves “at a level higher than that trodden by the crowd.”

This essentially means that my clients’ interests come first… all of the time.

When I’m working with buyers, I am the buyer’s agent. I represent the buyer’s best interests. While some of the things I do for buyers go above and beyond fiduciary duty (no where does it say that I have to celebrate the purchase of my client’s home with a bottle of champagne or be their real estate consultant for life, but I do these things). Essentially, my goal is to get my clients the best possible place at the lowest possible price and best possible terms.

On the other hand, when I am the seller’s agent, I represent the seller’s best interests. Again, I go above and beyond fiduciary duty (such as giving all of my clients access to Zephyr MLS Direct which provides them with access to 100% of MLS data, and allows them to keep their eye on the competition or referring them to contractors that can help them make their home look its absolute best for the sale).

Of course, there are rare occasions when I am a dual agent! This can present huge limitations. I can no longer represent either client’s best interests… instead, I have to be impartial and am not able to negotiate, or fight for one client’s position over the other. When I say that these occasions are rare, I mean they are RARE! Typically, the only way that I will take on such a situation is when both a buyer and seller approach me to handle the details of the transaction, rather represent either party’s interests. However, such a situation has the potential to crop uo if I am listing a property for sale, and one of my clients is interested in buying it. In those rare cases, I typically refer my buyer client to another agent that I trust for the offer writing and negotiations. There is no way that I would be able to be impartial in such a situation, and having my client be taken care of by someone I know and trust is almost as good as taking care of them myself. The goal is for their interests to be taken care of, not matter what!

You would think that due to the conflict of interest dual agency presents, most agents would avoid it. But often times, a listing agent will meet a potential buyer at an open house and try to get the to make an offer on their listing. This is a lose-lose situation for all parties involved, except for, of course…. the agent.

If you’re a seller, you probably already have your own agent listing your property. But if you’re a buyer, watch out! Make sure YOUR interests are represented. Find an experienced agent to really represent your best interests, and hopefully go that extra mile for you as well. Remember, working with a buyer’s agent doesn’t cost you a thing! And it’s the best protection you can get to make sure you have a smooth and problem free home purchase.

Want to know more about sidewalk repair? What to do about barking dogs? Confused about who’s responsible for repairing the fence between your backyard and your neighbor’s? Aren’t sure if you need a permit to remodel your bathroom? The answers to all these questions and many more can be found on a very informative and very unique site, created by the San Francisco Association of REALTORS®.

This web site for San Francisco homeowners, www.sfbaywindow.com contains more than 130 articles on subjects important to owners. From “Adding a Room” to “Zoning Districts,” it’s all there, making the site the most robust resource guide for San Francisco homeowners on the web.

Topics are separated into three easy-to-navigate sub-headings: Your House, Your Neighborhood and Your City.

In addition, the site contains a fourth, separate category—Your Government—which provides descriptions of legislative proposals and ballot measures affecting the interests of property owners at the local, State and federal levels. Keep in mind though, that the web site was created by the San Francisco Association of REALTORS®, and the “political point-of-view” expressed may be different than that belonging to yours truly.

Feel free to bookmark the site to your “Favorites” and visit regularly for information on how to make homeownership and living in San Francisco even more rewarding!