| Why the Market Has Deaf Ears to a Seller’s Wants and Needs | July 28th, 2009 |
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Here are just a few things buyers don’t care about: Buyers don’t care about the emotional and financial investment you have in the property: This includes what you spent fixing it up, how much you have borrowed against it and the many happy years you have spent there. They don’t care what you need out of it to cover your closing costs. They don’t care what your last appraisal says it’s worth They don’t care what you think the house across the street sold for They don’t care what your tax bill says it’s worth They don’t care what you have it insured for They don’t care how expensive the homes are in the community or neighborhood you are moving to. Here is what buyers do care about when deciding what to offer for your home: They care about the recorded selling prices for your nearest ‘comps.’ If they see a declining market, they are likely to offer a price lower than your most recent ‘comp.’ They care about your home’s condition. If you’re place is squeaky clean, they’ll pay more. If it’s not, they’ll factor every inch of work, cosmetic and otherwise, into their offering price. They care about the kind of loan they can get. Buyers today number crunch today like never before. Affordability is key. Higher rates or a larger downpayment will result in a lower purchase price. They care about where they see the economy going. As a group, buyers are naturally risk-averse. In a difficult economy, they are even more cautious and want to know they’re getting a good deal. |
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Over and over again, we have to remind our sellers that the buyers coming through their homes are indifferent to what you need and want to get for your home. | How to Find the Best Lender for a San Francisco Home Purchase | July 27th, 2009 |
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I’m particularly leery of lenders my buyers find online. Generally speaking, these lenders are located outside of the Bay Area and usually even outside of California. |
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During the height of the real estate market, most borrowers who applied for a mortgage received one. However, in today’s lending environment, consumers should be more cautious about where they apply for a loan and from which Web sites they receive quotes.| Would you skip a mortgage payment if you thought it could help you with the bank? | July 26th, 2009 |
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I’m not surprised, although I think there’s a ‘back story’ here. Not all these owners are callous fools– some may be in tenuous economic positions. They can pay now, but are setting up their “Plan B” in the event they can’t afford their payments down the road. I also think some of those owners are making calculated moves towards negotiating a loan modification or short sale. In the Bay Area, this practice is probably more common, where sophisticated investors and owners are more adept at negotiating with their lenders. That said, I’m doing a deal right now (buyer-represented) with Sellers who can easily afford their monthly payments but are choosing to negotiate a short sale with their lender. It looks like Wells Fargo is going to let them walk, but only after they pay $15,000 to mitigate the lender’s losses. Add to that my own efforts towards a loan modification. After inviting me to apply for a ‘pre-emptive loan modification,’ Citibank has turned me down because I don’t make enough money. Evidently the bank would rather risk foreclosing on me than seemingly help me keep my home. Wacky reasoning, I know, but they tell me the Obama Administration has put restrictions on loan workouts, and I don’t meet Freddie Mac’s very conservative underwriting requirements. (Don’t worry– I won’t go homeless and can make the payments I have without too much trouble) So don’t think a loan modification or short sale is a slam dunk if you decide to go for it without demonstrating real hardship. Just sayin’. . . Read more. . .http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/07/12/REBF18JR7P.DTL |
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A new study reveals that 26 percent of mortgage defaults across the country are based on strategic economic decisions to bail out of loans by owners who actually have the money to make the payments but can’t stomach the negative equity they’re carrying.| Why Foot Doctors Love SF | July 25th, 2009 |
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To calculate this year’s list, metro areas were evaluated based on 19 criteria, including population density per square mile, use of mass transit, crime rates, and square miles of local and state parks. Prevention, APMA, and Sperling’s Best Places also consulted with a panel of nationally recognized experts in the field of walking communities, to give each city a 1-5 rating on a walkability scale. New categorical breakdowns for 2009 included listing the Best Walking Cities for Families, Nature Walks, and more. |
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For the seventh year in a row, the American Podiatric Medical Association (APMA) has joined with Prevention magazine to develop a comprehensive list of the Best Walking Cities in America. This year’s number one Best Walking City? San Francisco, California.| Tricks to Selling Tenant-Occupied Property in San Francisco | July 23rd, 2009 |
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Why you should attend: Learn how to market tenant occupied and rent controlled properties. Speakers are: Daniel Bornstein. Daniel is a founding partner of Bornstein & Bornstein, was well as a realtor/broker, an affiliate member of the San Francisco Property Owners‘ Association, the Tri County Property Owners’ Association and the Professional Property Managers’ Association. Daniel has served as a professor of law and for over a decade and has conducted numerous legal seminars. Leonard Spoto. Leonard is a founding partner of the 1031 Exchange Qualified Intermediary, Asset Exchange Company. He is a frequent keynote speaker and an accredited course instructor on the subject of 1031 Tax Deferred Exchanges. He has presented his popular real estate and tax workshops to over 6,000 Realtors, lenders, title professionals and investors and is the author of numerous published 1031 Exchange articles. You must RSVP to attend. Call me at 415-577-0809 and I will get you on the registration list. |
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Asset Exchange Company, a 1031 Exchange Qualified Intermediary, and the law offices of Bornstein & Bornstein will be hosting a real estate investment workshop on Thursday, July 30th from 10:00am - Noon at the Fort Mason Center in San Francisco. The workshop is a must for any real estate investor or professional doing business in San Francisco. | How Can I Improve My Credit?? | July 21st, 2009 |
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1) Pay down your credit cards. |
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| Market Trends as of end of June in San Francisco | July 20th, 2009 |
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| How to File a Property Tax Appeal in San Francisco | July 19th, 2009 |
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If you need help gathering comparable sales data with which to make your case, call me at 415-577-0809 or email me at cblase@paragon-re.com , and I’ll whip up some ‘comps’ for you. Typically, the Assessor’s “valuation date” is January 1, 2009 and any sales comparables submitted must have closed before March 31, 2009. The City prefers sales dating right around the end of 2008/beginning of 2009, so I’ve tried to deliver comps dating from that period. Sometimes, When I can’t find enough sales during that time, I’ve gone all the way back to July in an effort to find the best comps to support your case. Some owners are looking to Zillow to find the best comps. Zillow can be a great resource, BUT the site is working only off tax records, which often reflect inaccurate square footage. The cost per square foot is a critical factor when estimating value– and Zillow’s comps usually don’t include rooms down or expansion of the home’s footprint. So call me if you find a comp that looks good but has smaller square footage than your own home. Often the MLS data mentions those additions or notes that the square footage in tax records is not accurate. Very generally speaking (it all depends on the neighborhood and other details of your purchase), homes purchased 2006 through mid-2008 probably have the best cases for a property tax reduction. The less affluent areas of the city typically peaked in value around 2006 and the more affluent in 2007 - 2008. Declines from peak value generally run in the 10% to 30% range, with the less affluent southern neighborhoods being hit with the largest reductions. (For a broad analysis of value changes by neighborhood, see the link at the bottom of this posting.) Please note: If your appeal is successful, the reduction in assessed value only applies to the 7/1/09 - 6/30/10 tax year. A decline-in-market appeal is only good for 1 year, the year for which it is filed. If you’d rather try for an informal review, the Assessor’s Office is now accepting, through 8/28/09, “Requests For Informal Review Of Assessed Value” for tax year 2009/2010. This applies only to single-family dwellings, residential condominiums, townhouses, live-work lofts and cooperative units. The SF Assessor’s website offers information regarding Decline-in-Value Informal Reviews: Links to Assessor’s Forms and FAQs: Formal Appeal The next open formal appeal filing period for San Francisco will be July 2, 2009 to September 15, 2009 — to appeal the 2009/2010 assessed value of your property. A formal appeal can be made for multi-unit and commercial properties, as well as for houses, condos & cooperative units. These 2 websites offer details regarding the filing of a formal appeal - the instructional videos are highly recommended for those who wish to proceed: • SF Assessment Appeals Board Warning on ScamsThere are a number of property-tax-appeal service companies, who have been sending out their solicitations on stationery that suggests a government agency affiliation. SF Assessor-Recorder Phil Ting has stated the following: “We’ve received reports from dozens of taxpayers who have received a letter from companies offering to facilitate the property tax reassessment for $179 [or more]. This is unnecessary and deceptive. Taxpayers can fill out a simple, one-page application for a review of their property in my office, free of charge, starting on April 15. There is no need to pay for this service.” Many of the solicitations received by San Francisco homeowners may be illegal. More on this subject: Excerpted FAQs and Facts from the Assessor’s OfficeHow is the amount of my property tax determined? In order for the amount of your tax to be determined, the Office of the Assessor/Recorder must first assess the value of your property. Generally, the assessed value is the cash or market value at the time of purchase. This value increases not more than 2% per year until the property is sold or any new construction is completed, at which time it must be reassessed. For more information on how the assessed value is determined, contact the Office of the Assessor/Recorder at (415) 554-5596. After the Office of the Assessor/Recorder has determined the property value, the Office of the Controller applies the appropriate tax rates, which include the general tax levy, locally voted special taxes, and any city or district direct assessments. The general tax levy is determined in accordance with State law and is limited to $1 per $100 of assessed value of your property. After applying the tax rates, the Office of the Controller calculates the total tax amount. Finally, the Office of the Treasurer & Tax Collector prepares property tax bills based on the Office of the Controller’s calculations, distributes the bills, and then collects the taxes. Neither the Board of Supervisors nor the Office of the Treasurer & Tax Collector determines the amount of taxes. Do I have any recourse if I disagree with the valuation placed on my property by the Assessor? Yes. If you disagree with the assessed value of your property you may contact the Office of the Assessor at (415) 554-5596. They can provide you with information on how the value was established. If you still disagree with the assessed value of your property after reviewing it with the Office of the Assessor/Recorder, you may contact the Assessment Appeals Board for the purpose of appealing your assessment. If you choose to appeal your assessment, you must still pay your property tax in full by the appropriate deadlines; otherwise, you will incur penalties while the case is on appeal. If your appeal is granted, a refund will be issued to you. Appeal applications and further information about the appeal process can be obtained by contacting the Assessment Appeals Board. Before You File a Formal Appeal with the Assessment Appeals Board. . . Beginning April 1, 2009, the Assessor’s office started accepting requests for an Informal Review of your 2009/2010 property value. The Informal Review forms can be obtained from the Assessor’s website. If the Assessor’s staff discovers an error, they may be able to correct that error, and you may not need to file a formal appeal with the Assessment Appeals Board. If, however, you and the Assessor’s office cannot reach an agreement, you can usually appeal your assessment to the Assessment Appeals Board during the appropriate open filing period. If you want to file a formal appeal for the value of your property, you must complete an “Application for Changed Assessment,” and your application must be filed with the Assessment Appeals Board in a timely manner. Who Can File a Formal Appeal An assessment appeal can be filed by the property owner or the owner’s spouse, parents, or children, or any person directly responsible for payment of the property taxes; this person becomes the “Applicant”. An application may also be filed by an authorized agent. If an application is filed by an agent - other than a California licensed attorney - written authorization, signed by the applicant, is required. How to File a Formal Appeal Obtain, complete, and return an “Application for Changed Assessment” from the Assessment Appeals Board of San Francisco. We do not accept versions of the form from other counties or the State Board of Equalization. Completed applications must be postmarked on or before the deadline date to be considered as timely filed. |
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If you believe your San Francisco home may be eligible for a reduction in property taxes based upon a decline in value, there are two ways you might proceed: an informal review by the Assessor’s office and/or a formal appeal with Assessment Appeals Board. The formal appeal, in particular, can be a complicated and time consuming process but may be worth the effort for the savings in property taxes.| So You Think You Want To Live Here In San Francisco? Then Meet Your Neighbors! | July 12th, 2009 |
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So you think you want to live here with us? Well, here’s what we’re like. . .| San Francisco: A Pricey City That Pays Off | July 9th, 2009 |
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Albouy maintains that people are willing to pay a fortune for assets which have ‘amenity value.’ Assets with high amenity values deliver more satisfaction to their owners. According to Buoy, San Francisco ranks #1 when it comes to high amenity and productivity value. A big amenity value tied to a home relates directly to quality of life. Good weather, cultural amenities, proximity to the coast, recreation opportunities all factor heavily into a location’s amenity value and explains why a home in the Bay Area costs so much more than a home in Boise. A city’s amenity value is also tied to its productivity. For this amenity, we become heavy hitters with strong biotech, hi-tech and financial sectors and universities that produce an educated workforce. These advantages draw new businesses which create new employment, increased incomes and consequently higher home prices. . . . |
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I love it when an opinion-maker makes my case for me explains why people are willing to pay so darn much to live here. In this case, I’ve got University of Michigan economist David Albouy on my side, as per his report in the Global Property Guide, an online real estate investor’s guide.
