When choosing to sell or buy real estate in the dynamic and beautiful TriValley area of California, the first and smartest move is to call on the services of a REALTOR®. Why? Because not all agents or real estate associates are in the same category. You should buy that prime property with the help of only those licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® (NAR).

Make doubly sure you’re assisted by someone who is professionally savvy and bound by a strict code of ethics. Most brokers in the U.S. do belong to the NAR, so look for the logo on their cards and literature. When the games of house hunting or property buying begin, you want to be aligned with the best team possible.

The REALTORS® are the pros. These experts maintain the highest level of knowledge in the field of selling and buying real estate, tasks which can quickly become a fierce jungle of traps and nightmares for those who decide to wing it alone. That dream home may be lost to a buyer in a maze of tricky official documents or become a money trap for those buyers who find themselves the targets of litigation. 

What can these brokers do for the buyer? In addition to finding the perfect home or property to suit your needs and hopes, price range and qualifications, the REALTORS® work in a fiduciary capacity, meaning they work without a monetary interest in your transaction.

Here are a few reasons why the smart buyer will use a REALTOR®:

• There is no cost to you for employing the  services of a professional Realtor.
• He or she can figure your buying power and supply you with a list of lenders best qualified to help you complete the transaction. Real estate brokers who recommend lenders may not receive any compensation from the lender for referring a client to a specific lender. (To do so would be a violation of federal law known as the Real Estate Settlement Procedures Act). All compensation to a broker must be disclosed to all parties. The REALTOR® will help you understand the different financing options offered by the qualified lenders.
• The REALTOR® can assist you in your home search. It is often the case that the home you’re seeking is available but not actively advertised in the market. The broker will investigate for you.
• Your REALTOR® will provide objective information about each property, with all the pluses and minuses. Agents who are REALTORS® have access to a variety of informational resources.
• REALTORS® will provide information on utilities, zoning, schools and all those things affecting daily life in your new home.
• They will let you know whether or not the home will provide the environment you want for your preferred lifestyle. They will give an objective, professional opinion about whether or not the property should have resale value when and if you are ready to sell.
• Your REALTOR® can help you negotiate not only the price, but the large and small details of the transaction. They include financing, terms and dates of inspections, walk-throughs, date of possession and often the inclusion or exclusion of furnishings, equipment and repairs. He or she will see that the purchase agreement provides time for you to complete inspections before you are bound to complete the purchase. Your agent can also advise you which investigations and inspections are recommended and which are required.
• Your REALTOR® is bound to exercise diligence during the evaluation of the property. Inspections, depending on the area and property, could include thorough checking for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests.
• Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports.
• Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access.  Real estate brokers typically do not provide title service such as title search or title insurance, do not conduct surveys or formal appraisals of the property such as those required by lenders, and do not act as lawyers for the parties. However, they may coordinate these activities with the specialists
• Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

The Sky is Falling! The Sky is Falling!

We’ve been reading about it and reading about. It’s been on TV and in the national news – even my mother called to warn me and let me know my old bedroom is still available when California real estate crashes.

Well, mom – relax. The rest of you also take a breath. There is a lot of bad news in real estate and the housing sector of the economy, but the situation is far from Armageddon. In fact, the savvy buyer or seller can take advantage of the situation. While the hysterics run around over-reacting, the savvy buyer, seller or investor is leveraging all the bad press to their advantage.

The East Bay area of California is rife with an abundance of micro-markets. Many of these micro-markets have hardly skipped a beat this year despite all of the hoopla.

The market that is suffering the most and putting all the downward pressure on California housing is the moderate to low priced housing market. This is especially true in areas where there is a significant amount of new home construction available.

The rate of return on California real estate from 2000 to 2005 was 10.3%. Sure it's taking a hit, but who is getting hit?

The biggest change influencing California real estate is the change in Psychology of the Market. It’s no longer the wild west of 24 offers, a bidding war, and the shootout at the OK Corral.

We are expecting to see a 23% decline in real estate transactions this year over last and 2008 may see an additional 9% decline marking the bottom of the market.

From January through August of this year, the low end of the market shrunk the most. The high end is going up. (BTW – you can see this clearly in our Market Details Reports)

September was a whole different animal because the jumbo loan market suffered a major hiccup. Prior to September the market transactions above the $million mark shrunk a mere .5% (under $million deflated 24%). In September transactions above a $million went bonkers  – about 20% decline.

The upper-end of the market is continuing a healthy appreciation in a sluggish economy. Four-bedroom plus homes are doing better than smaller homes.

While the subprime meltdown has had a significant impact on first-time buyers, the forecast for 2007 is that first-time buyers will account for 29% of sales.

There is no Fire Sale happening for East Bay real estate. There are some good deals out there, but in general, the East Bay economy is outperforming much of the state and nation. Consumer confidence is volatile, but research shows that consumer confidence does not necessarily affect spending.

Rents are on the rise in the East Bay, almost 6% year to year. Almost 25% of home sales are for people moving into the area.

So, here it is – our 2008 forecast: sales will be down 8% to 10%. The upper end of the market will continue it’s appreciation while the lower end will stabilize.

Changes in legislation and business practices to deal with the “crazy loan madness” will bring first-time buyers back into the market.

Many buyers will wait too long to capitalize on the advantages available right now. Some sellers will finally understand that the glory days may not return until 2010 and decide to price their homes at market value. People that bought Yahoo! at $20 a share and sold at $85 instead of $200 still believe they lost money.

Such is life – people are born and die, get married and divorced – houses continue to sell in any market.

In the fourteen communities that make up the CCAR Statistical Report our local market hasn’t changed dramatically compared to last September despite the credit crunch that seems to be improving to some degree every day.

Months of Inventory:

• Detached: 10.2 months vs. 10.0 months last September
• Attached:  10.1 months vs. 12.8 months last September

Dataquick Figures: Resale, New, & Condos/TH

Median Sales Price compared to last September:

•      Contra Costa County     +0.2% to $551,250
•      Alameda County            -5.3% to $556,000
•      Nine Bay Area Counties  +0.8% to $625,000

Number Transactions compared to last September
     Contra Costa County         -48.7%
     Alameda County               -43.9%
     Nine Bay Area Counties      -40%

Jumbo loan financing (over $417,000) has become more available the last few weeks, but lenders have higher qualifying standards.  The standards are back to where they were three years ago, after the excesses over the past few years.  Mortgage rates are historically very attractive and more funds are becoming available.  There is a good possibility that the market will improve with each passing month.

Buyers need to understand that “the sky is not falling” in real estate despite what the media hype.  Now is a great time to buy.  With the slow down in transactions there has to be a growing pent-up demand that will surface in the not too distant future.  The overall Bay Area economy is strong, jobs are growing in numbers, and unemployment is very low.  The Bay Area is such a desirable place to live that demand for housing will always be here. 

40% Off! California Real Estate

This is prime real estate, not foreclosures or short sales.

The whole state is on sale and you can get it for 40% off - if you're paying with Euros. That's right foreign investors and home owners are realizing that their Euro is making the purchase of U.S. real estate a real bargain.

We've heard reports from a recent luxury homes summit held two weeks ago in Vancouver, B.C., Canada that European and Russian money is flowing into the U.S. and Canadian luxury housing markets. 

The San Francisco Bay Area holds many great investment opportunities for foreign investors. Those looking for a second home or condo in one of the world's great places to live have their choice of many prime locations.

If you're selling an upscale home, consider advertising directly to the foreign buyer. The Internet makes this easy - if you have an agent that knows how to use the Internet effectively.  

Exchange Rates Give Foreigners The Edge in U.S. Housing Market

With the dollar at historic lows against the euro and other currencies, real-estate agents, appraisers and developers say overseas buyers are stepping up their purchases in the U.S. Some are buying vacation homes in Florida, California and Colorado that would previously have been considered out of reach. Others are gambling that properties purchased now will translate into savvy investments down the road, when both the dollar and the U.S. housing market eventually rebound.

The Fed's housing market objectives

The global economy is also moving to wealth parity… in most simplistic terms, global wealth is being redistributed from the US to China and India. That means even if most Americans can't afford those $1 million mortgages, a lot of rich foreigners can (yes, they are buying in Manhattan, San Francisco and Florida now).

As golfers, we are truly fortunate to live in an area where the weather, beautiful scenery and abundant golf courses make it easy to get out and play year round.  In the East Bay there are over 20 public golf courses within a short distance and numerous private courses as well.  Whether you're looking for a fairly flat course like San Ramon Golf Club, a hilly course like Lake Chabot in Oakland or a short par 63 course like Dublin Ranch, there is something for any golfer's desire.  One of our favorite websites for booking tee times is www.golfnow.com which provides excellent discounted fees for most of the public courses in the area.  They even have an email alert service that will deliver daily notices to you on tee times and the amount of discount offered.

If you currently live in the East Bay Area of Northern CA you are no doubt familiar with many of the courses around the area.  However, if you are one of the fortunate people looking to relocate to this area, you will be in for quite a treat when get out and test the waters (well, let's forget those water shots…I mean the greens).  If you are looking to buy a home on a golf course, there are also lots of courses, both public and private, that have homes available.  Check out the "Search All Properties on The MLS" or "Get Free Alerts of All Listings" to find the home you may be looking for.

Cheers,

Craig Harper