Food!

Our little festival in the heart of Berkeley's gourmet ghetto is six this year, and she's getting bigger every year! Come drink wine legally in the streets! Listen to Berkeley High School's amazing jazz & funk combo! Taste the best street food on the west coast and shop at the craft vendors' booths; we have arranged for perfect weather and expect you to show up and have fun.

Couple saw house in half in divorce

The Associated Press
Article Launched: 10/10/2008 04:08:15 AM PDT

PHNOM PENH, Cambodia—A couple in rural Cambodia has terminated their 18-year marriage with a divorce settlement that entailed sawing in two the wooden house they once shared, villagers said Friday. The husband, 42-year-old Moeun Sarim, has taken away with him all the bits and pieces of his half a house, said his 35-year-old wife, Vat Navy.

"Very strange, but this is what my husband wanted," she said by phone from a village about 62 miles east of Cambodia's capital, Phnom Penh. She said they ended their marriage last month.

"He brought his relatives and used saws to cut the house in half," she said, adding that she now owns the other half that is still standing. The house is made from wood with a tile roof and propped up on wooden pillars, a typical style for a Cambodian country home.

She said her estranged husband and his relatives, after ripping apart half of the house, carried all the debris to his parents' house nearby.

She said the divorce was prompted by her husband's jealousy about her alleged relationship with a policeman in the village. She denied having an extramarital affair.

"He wanted a divorce, and I said, 'Let's divorce,'" she said.

The husband could not be reached for comment.

Bou Bout, a village chief, said local officials and police were present as witnesses the day the couple split their 20-by-24 1/2 foot house into half.

"Local officials tried three times to get them to mend their differences, but the husband would not budge", Bou Bout said by phone.

Kenny Leather, Loan Consultant Extraordinaire

Now that the dust has settled a bit regarding what kinds of real estate purchase loans are available these days, I thought I'd check back in with Kenny Leather of Princeton Capital and find out what the buzz is all about regarding new FHA loans...

Bobbie: Can you give us the lowdown on the new FHA loans? Why would someone want to use this product?

Kenny: Well, it's one of the few games in town for a 3% down payment and less than perfect credit.

Bobbie: So, does that mean there are still other 3% down products for people with better credit?

Kenny: No... well, there are Cal HFA loans that do mostly the same thing...

Bobbie: But for people with less than perfect credit, FHA is the way to go?

Kenny: Yes. This is really taking the place of the subprime market products (that are no longer available).

Bobbie: I've heard compliance requirements for sellers are less strict than the old guidelines, in terms of the property including certain features like screens on windows and special floor furnace vents?

Kenny: Yes, that is true compared to the old FHA guidelines, but compared to non FHA loans, the properties have to be in slightly better shape. For example, when an appraiser appraises a house with a non-FHA loan, they are just making sure the house is there and the value holds up; when they visit an FHA house, they additionally have to make sure the furnace is working, the water is running, etc.

Bobbie: How else is it different?

Kenny: For starters, until the end of December, we can go up to a loan amount of
$729,750. Other advantages include no income limitations, and we can go a little bit higher on the debt to income ratios.

Bobbie: Can you explain debt to income ratios, for our readers?

Kenny: It's when you take your debt divided by your income and you get a ratio. The lower the ratio the better.

Bobbie: Ok, we've reached information overload.

Kenny: I know and I agree!


So readers, let this sink in, and I'll continue the interview in a part two later! There's always more to learn...

Oh by the way, Kenny works in the San Francisco East Bay Area and would be happy to talk with you if you need his financial expertise. Call him at (510)409-7232 and interview him yourself!

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.