Relax- Earth Day is Saturday So You Won't Miss Any Open Houses

That's right- it may be officially recognized on a different day elsewhere, but here in Berkeley we do things differently. This year's Earth Day celebration will take place this Saturday, April 21st at Civic Center Park in downtown Berkeley. Technically it was not arranged for Saturday so that you could still make it to open houses on Sunday, but the happy coincidence is not lost on me...

There will be live music, dance performances, green product demos, craft booths and food. Click here for more details.

Homey Things to Do When You Aren't Shopping for a Home...

First of all, HAPPY NEW YEAR! I know, I know; it's been a while since I've posted but I resolve to be here more often, I promise.

Here's a short list of things to do on Saturdays, because I know you are busy at open houses on Sundays... Not busy with open houses on Sundays? Call me and I will show you some properties myself.

MAKE CHEESE
Yes, you don't need huge kitchen skills to make a quickie ricotta at home. Follow this link and let me know how it turns out! By the way, you can substitute white vinegar for the lemon juice in his recipe.

LEARN TO KNIT
Come on, everyone's doing it; learn what the cool kids are so excited about. Here's a good link to a basic video to get you started. I also find that www.knittinghelp.com is a great site for continuing education.

TEACH YOUR DOG (AND YOURSELF) A USEFUL SKILL
Your dog wants to hang out with you. Your dog wants to go places with you. Walking your dog on a loose leash is more fun for both of you, and this skill makes it possible to carry a grocery bag and hold the leash at the same time. Imagine that! Here's how.

Have any ideas for my next list of homey things to do when you aren't shopping for a home? Email me.

Maybeck Marvels

As a follow-up to my last post about the Berkeley Architectural Heritage Association's events calendar, I want to mention that Mark Wilson's upcoming lecture on September 24th ought to be exciting. Mark visited my office yesterday and gave us realtors the low down on his gorgeous new book about the architect Bernard Maybeck, and shared some gossippy tidbits about our beloved local genius. GO!

I said it was coming...

Elegant North Berkeley Condominium

This super perfect unit is ready for open houses beginning with Broker's tour this Thursday 7/15 9:30am-noon. Open the following two Sundays 7/18 and 7/25 2-4pm.

More info on my website

Come visit, and tell your condo-hunting friends and family their search is over. Buy it, even.

Condo Coming Soon- Early July!

This is a lovely one bedroom unit in North Berkeley; close to campus, good food, downtown and public transit. Give us a moment to paint, refinish, stage and kiss it for good luck, then I'll post a nice photo and more info.

First Time Buyer's Tax Credit Extended!

If you read the last post, you might be wondering whether the credit will still exist beyond this month. This is what the National Association of Realtors has to report:

"As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010".
  

To learn more about whether you and the property qualify for the credit, visit NAR's site.

First Time Home Buyer's Tax Credit

The federal government is providing a first time home buyer credit of up to $8,000 for the purchase of a principal residence by qualified purchasers who acquire their home in 2009. However, that program is scheduled to end as of December 1, 2009. Although other incentive programs were extended beyond the originally scheduled termination date, there is no indication at this time that the first time home buyer credit will be extended beyond its originally scheduled termination date.

To qualify for the credit, the first time home buyer must close escrow on or before November 30th 2009 and meet other eligibility requirements. Because your agent cannot promise or guarantee that you will be able to take advantage of any particular tax credit or other incentive program, it's important that you do some homework to learn whether it will apply to you. I have a handy fact sheet about these eligibility reqs- feel free to email me if you want a copy. There is also a website where you can learn more.

This Week in Coldwell Banker Real Estate

From our Coldwell Banker president:

Berkeley/East Bay offices report that we were inundated with multiple offers this week and large turnouts at open houses. 75% of our deals this week saw multiple offers, any number from 2-8 on seller owned and 12-18 on bank owned. Cash is still king on many deals because of increasing anxiety about appraisals.

Castro Valley: we are seeing cash offers everywhere and one agent reports that she has been outbid from the last five offers she has written by all cash deals. The number of multiples in the low range markets has been in the range of 10-60 offers, to give you an idea as to the inventory shortage we are facing here in our micromarket. Agents are waiting for banks to release more REOs. One thing is certain, we are definitely a recovering market.

The Danville office reported the activity level is good but we need more inventory. Lots of buyers are jumping off the fence.

In Fremont the listing inventory is reducing.

The Livermore office reports: Our pending sales are up in the office and the overall market in the Tri-Valley area remains strong. Multiple offers are still the rage below $500,000.

The Pleasanton office reports homes under $450K are moving very fast with multiple offers.

Sellers: Careful Pricing is Crucial!

I found this gem from the California Association of Realtors:

Before the torrid real estate market of recent years, a common pricing strategy was to list your home for between 2.5 to 5 percent more than the expected sale price. This way, you would have room to negotiate with the buyer.

If you used this approach today, you'd be lucky to receive any offers. Recently, listings that were priced at or under market value received offer--sometimes multiple offers. Over-priced listings sat on the market unsold.

One risk of pricing too high for the market is that you won't receive offers. Sellers often find this hard to believe. Why won't buyers just make an offer if they think a listing is priced too high?

The answer is two-fold. First of all, if a listing is priced too high in a market where well-priced listings are selling, this may indicate that the seller has unrealistic expectations. Making an offer involves a big emotional commitment and it takes a lot of time. Most buyers don't want to waste their time offering on a listing that's over-priced for the market, particularly when there are other listings to choose from.

Secondly, even though buyers might prefer to buy without competition, the fact that a listing is popular is a stamp of approval. A property that is in high-demand is one that is likely to have good resale value.

Another risk of over-pricing is that you could end up in downward price spiral. Here’s how this can happen: You bring your home on the market listed at a price that you're sure is right. After all, your home is better--in your estimation--than anything else on the market. Your agent cautions against this, but you're intent on getting your price. After a month or two, you aren't even getting a nibble from an interested buyer. Even so, other listings similar to yours are coming on the market and selling. In fact, buyer's agents are using your over-priced listing to help them sell the well-priced listings that come on the market.

The longer your home stays on the market unsold, the bigger the risk that it will develop a negative stigma. Your home becomes the white elephant on the market. Buyers wonder if there's something wrong with the property. In most cases, the only thing wrong is the price.

So, you reluctantly agree to lower the price. Your efforts could be fruitless if you reduce too little, too late. Meanwhile, more well-priced listings come on the market and sell.

If the market softens, as it has in many areas around the country, you might have to make further price reductions. Buyers tend to gravitate to the newer listings, not the ones that have been on the market for months. You'll have to offer a cut-rate price to be competitive.

HOME SELLER TIP: It's difficult for sellers to be objective about the value of their home. Although most sellers estimate high, some sellers, who can't believe how much their home has appreciated, underestimate the value. For best results, rely on a real estate professional for a realistic price assessment. The dynamic is changing in many real estate markets around the country. Sellers, in many cases, are no longer in the driver's seat. Keep this in mind when you select a list price for your home.

Comparable sales from a few months ago may be out of date for the current market. Even though your neighbor's home sold for an exceptional price, it may have been the only game in town at the time.

THE CLOSING: Today, you're much more likely to find competition from other sellers who want to cash in on the recent extraordinary home price appreciation.

I Know What I Did Last Summer

I love winter. I say it all the time. My friends think I'm nuts; I live in California, don't I? I should want the palm trees, sand, beaches... That's all fine, but I prefer a cool mossy fern grove on the shady side of a mountain. Northern California isn't the classic place to find palm trees and warm sandy beaches anyway; it's cold here right now and I could use a space heater next to me and the computer. Normally I'd say this cold makes me a little happy; bring on the rain etc. Right now though, I'd like a day of hot weather; just a day, then it can go back to cold and wet again. Yes, reading my last post might make me sound indecisive. So what? Here's a bit of what we should all be doing right now:

We Want Richmond View!

Just a quick note about what's happening in Richmond View this week: the home at 1826 Ralston Ave is receiving 7 offers today. Is the market cooling off? Not there. This property gained alot of attention in the past few weeks because it was a classic mid-century design in need of easy updating, and everyone loves a moderately priced easy fixer.

How to explain other moderatly priced properties in easy move-in condition lingering on the market? This is where the market feels unpredictable.

Realtor News

**This just in from the California Assoiciation of Realtors**

FED TO ESTABLISH NEW OVERSIGHT PANEL OF SUBPRIME LENDERS

The Federal Reserve Board (FRB) announced July 17 the launch of a new pilot program aimed at strengthening federal and state oversight of subprime mortgage lender practices, as well as the brokers who originate these loans.

The collaborative state/federal program, slated to begin in 2008, will include oversight from the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, The Federal Trade Commission, and state agencies represented by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

According to the FRB, the oversight committee members will conduct regular, targeted compliance reviews of selected non-depository lenders with significant subprime mortgage operations, share information with one another about their reviews and investigations, and make joint recommendations for corrections.

True Love!

I attended a wedding reception yesterday and today I'm feeling all warm and lovey-dovey because of it. This party was held outdoors at Kennedy Grove in Contra Costa County. Pretty pretty pretty! It was part potluck picnic, part catered lunch, plus there was croquet and petanque to keep us entertained.

I'm thinking about other ideal places one could get married, celebrate a marriage, or propose a marriage outdoors around the East Bay... so many! Stuck for ideas? Here are few:

Wildcat Canyon (anywhere on a hiking trail would be a sweet proposal moment)
Berkeley Marina (all-purpose group picnic facilities with a view of S.F. Bay, hotel for out-of-town guests)
The Brazilian Room at Tilden Park (big lawn, a little fancy; a popular wedding spot)
Temescal Beach House (at the lake!)

Any other ideas for us? Feel free to contribute yours!

Hungry?

Well, our own vegetable gardens may not be producing anything edible yet (I should only speak for myself here), but fortunately someone has been thoughtful enough to grow some food for us so we don't starve, and it's out there at a local farmer's market, ready for our frying pans. Really, there is no good reason to buy a flavorless, mealy tomato from a giant food mart when you can find a place to buy fresh, locally grown food any day of the week, close to home. Besides fresh veggies, you will often find a variety of other goodies: hot prepped meals, local artisans & live entertainment; call a friend and make a date! -And just when I thought I'd have to compile the list of resources myself, I discovered this list, from SF Gate, an online version of The San Francisco Chronicle. Use this list to find a farmer's market near you.

Anyway, Back to Real Estate Updates

Another bit of weekly wisdom from our Coldwell Banker President:

Perhaps the long Memorial Day weekend gave both buyers and sellers the opportunity to reconsider their standoff positions. Sellers are starting to price realistically, and buyers are starting to write more reasonable offers, as evidenced by the fact that sales activity increased significantly during the week in most areas.

We held almost 400 homes open during the week and, while the lower-than-normal attendance level was anticipated, the conference rooms of most offices were busily engaged in negotiation and the closing of deals.

Still, the Bay Area market continues to be predictably unpredictable. In most areas, it is neighborhoods, schools, locations and streets that are generating the interest and buyer activity more so than the actual homes themselves. Berkeley, Oakland and El Cerrito saw multiple offers on homes in all price points. The Mission San Jose area of Fremont saw 10 offers on a listing that sold for 10% over list price. In San Francisco, two properties in the Sunset district received 11 and 22 offers respectively. An open house held over the holiday weekend by our Livermore office had 80 people through and sold with multiple offers after being on the market for six days. In Kentwood, a $3.95 million listing closed for $5 million after nine offers. Condition, price and presentation are, of course, crucial to a timely sale, however they are less important in highly desirable areas, or if the buyer perceives value.

In most areas we are still dealing with a split market. The high end is performing quite well while the first time home price ranges prove to be more challenging. You have heard it many times before but it is up to price and condition. Your property needs to be the best price in it’s class and show well also. Buyers in the entry level price range are definitely bargain shopping. As the old saying goes, if you want the property to sell fast, make it easy to buy. Instead of just using price reductions, you may want to look at offering other terms like closing cost assistance to make the property more attractive to buyers. As we start to move toward summer and schools let out, it will be interesting to see if this brings more buyers to the market. The economy looks strong and a recent report shows unemployment at very low levels. It takes jobs and increasing wages to keep prices moving up over time. The California affordability index sits at 25%, up from a recent 14%. This is due to price decreases in outlying areas but good news none the less.

Of the offices reporting, listing inventory remained steady for 16, increased for five and decreased for eight. Sales activity remained steady for 9 offices. It increased for 13 offices, and decreased in only seven.

Larry Klapow
President
San Francisco Bay Area