San Francisco Investment Property

If you are looking for that special place which offers ultimate, luxurious S.F. urban living & amazing S.F. Bay views, look no further than the Infinity Towers in S.F.

 

You will have to hurry since there are only 25 condos left. The starting price for remaining units is $1.6M going up to $7.3M for the largest.

A bit too pricey? There are some great, less expensive alternatives in other buildings.

Give me a call for recommendations on a few of my favorites.

 

Mortgage Interest Rates from Guarantee Mortgage for the week ending 1/29/2010

Rates are still really low! This is definitely helping some of my buyers get into our pricey S.F. real estate market.

 

30 Yr Fixed Conforming to $417K 4.750% "1.000" POINTS APR = 4.961%

 

30 Yr Fixed Jumbo to $729,750. 4.875% "1.250" POINTS APR = 5.035%

 

30 Year Fixed Jumbo to 1 Million 5.875% "1.250" POINTS APR = 6.103%

 

5 Year Fixed Jumbo to 1 Million 5.125% "0.000" POINTS APR = 5.474%

 

7 Year Fixed Jumbo to 1 Million 5.500% "0.500" POINTS APR = 5.691%

30 Year Fixed FHA Conforming 5.125% "0.000" POINTS APR = 5.671%

 

Mortgage Calculator

 

 

 

 

Does anyone know of a S.F. Bay Area lender hiring loan processors?  A friend is looking for a new loan processor position.

He's open to working in S.F., the Peninsula/San Mateo County & the East Bay, &/or other BART/Caltrain accessible areas.

Please pass along any leads or get in touch and I'll share his resume.

Many thanks!!

 

 

 

In our ever politically divisive city of S.F. especially when it comes to property rights, here is the latest real estate related proposal created in part to generate revenue for the city which has a $500 million deficit.

Details are below on the proposed condo conversion reform from Plan C, a S.F. based group which is involved in several community concerns including promoting affordable home ownership through TIC ownership & condo conversion.

In a city where there are more renters then property owners, the renter groups have a lot of power & typically are opposed to any types of legislation which promotes home ownership.

The argument used is that condo conversions & TIC'ng a building leads to evictions.  Statistically, no-fault evictions have been decreasing not increasing over the years:

The number of no-fault evictions in San Francisco continues to drop sharply, from a high of 1,332 in 2001 to a low of 351 in 2008. This is strong evidence that the city continues to create affordable TIC housing without forcing existing residents out of their homes.

I'll save for another post why rent control isn't necessarily a good thing for property owners or their tenants (a snippet: there are hundreds of San Francisco rental units held off the market by property owners, commonly done via the Ellis Act, since they are frustrated with rent control laws).

For those of you who aren't quite in the loop with San Francisco's very complicated types of real estate, TIC's evolved as a result of residents wanting to become homeowners in our incredibly expensive city.

Originally, a TIC group all shared the same loan (which could be a risky proposition if one TIC owner stopped making payments).  Then fractional loans were introduced as a way of financing a TIC unit without an individual buyer having to go into a group loan.

The benefit is that there is less risk involved for a TIC owner; the tradeoff is that fractional loans typically carry a higher interest rate than conventional loans and requires in most cases a minimum of 20% down.

The goal with many TIC owners is to condo convert their building; one of several benefits is being able to secure conventional financing.  The city of course has incredibly complicated requirements for conversion including a lottery system for buildings that are 2+ units.

If you care about property rights & affordable home ownership in San Francisco, please attend this rally!

Feel free to share your thoughts about our ever interesting, dynamic San Francisco real estate market.

 

 

Per the Plan C e-newsletter:    Please join Plan C at 8:15AM on Wednesday, Feb. 3, on the City Hall steps for a rally to support condo conversion reform! As many of you know, the condo lottery drawing happens at 9AM on February 3, and we'll be done in time for you to attend the lottery itself.

You may have read within the last few months in the Chronicle and in the Examiner that the mayor's office is considering again the possibility of a condo-lottery bypass initiative for qualifying TIC owners.

As you are already aware, expediting the conversion of owner occupied TICs to condominiums would help bring ownership and mortgage relief to middle income San Franciscans and has the potential to bring significant revenue to the city during this time of budget and financial distress. The revenue collected could have a meaningful impact to the city's bottom line and has the potential to save crucial city jobs and services from further cuts.

The expediting of TICs to condominiums would be facilitated by the payment of a specified fee to the City that is higher and in addition to the usual mapping and permit fees collected from winners of the current condo conversion lottery. The fee would likely only be available to owner occupied TICs that are lottery eligible.

The proposed fee for the bypass of the lottery hasn't been set, and we would like to again call on you for your input. The fee has to be low enough for TIC owners to be willing to pay it (and to be fair) - but also high enough to be meaningful to the City's budget deficit. Initial discussions concerning the development of this initiative have considered fees in the $20,000-40,000 range per unit or 5-10% of a unit's value.

We welcome input from Plan C members about what an appropriate fee would be for this one-time bypass to the condo lottery.

Lastly, as usual we encourage you to email the supervisors (particularly your supervisor) on the need for condo reform by going to www.plancsf.org, and clicking on "Contact City Hall".

 

Mortgage Interest rates from Guarantee Mortgage for the week ending 1/21/2010:

30 Yr Fixed Conforming to $417K     4.750%
"1.000" POINTS APR = 4.961%

30 Yr Fixed Jumbo to $729,750. 4.875%
"1.000" POINTS APR = 4.981%

30 Year Fixed Jumbo to 1 Million 5.875%

"1.000" POINTS APR = 6.081%

5 Year Fixed Jumbo to 1 Million 5.125%

"0.000" POINTS APR = 5.474%

7 Year Fixed Jumbo to 1 Million 5.500%
"0.500" POINTS APR = 5.691%

30 Year Fixed FHA Conforming 5.125%
"0.000" POINTS APR = 5.671%

If you need a recommendation to a mortgage broker, let me know.  I'm happy to introduce you to a couple of excellent pros who specialize in S.F.'s real estate market & areas beyond!

 

 

 

 

Looks like change is underway for FHA loans as the Federal Housing Administration prepares to raise fees this Spring.  It doesn't look like an exact date is in place at this time.

Currently, the upfront mortgage insurance premium is at 1.75% & will rise to 2.25%.  This fee can be rolled into the loan amount.

Borrowers with a credit score of less than 580 will be required to come in with a 10% down payment.  The 3.5% minimum down payment will still be an option for borrowers with a score of at least 580.

Seller credits to buyers (typically applied in escrow for buyer closing costs) will be reduced from 6% of the purchase price to 3%.

The other main finance option for buyers is to have 20% down and go for conventional financing which does not require mortgage insurance.  In our very pricey San Francisco real estate market, this is a substantial chunk of change especially for first time buyers.

For most of my buyers (lately first time buyers), FHA loans have been their best option to get into the S.F. Bay Area market.  In spite of the reports of high unemployment, there are still buyers who have been diligently saving and now have this window of opportunity to jump in due to low interest rates, less buyer competition, job security and some price softening.  This is what I'm seeing with my buyer clients.

I always have the conversation with my buyers that if there is any chance of job instability that they not make a purchase; I certainly don't want to reconnect with them because they have a major financial change and can't afford to keep their home.

It would be great to know the location/city/state of the 1 in 6 FHA homeowners who are behind on payments (referenced in SF Gate).  Yet again, it is the common broad brush stroke approach in the reporting of the news.....

Full details from SF Chronicle

 

If you couldn't tell by now, I love all things San Francisco especially historical S.F.!

Check out the footage below taken in 1905 on Market Street just before the big 1906 earthquake & fire.

Cool footage and a nice pairing with music from Air's "Moon Safari" album.

Definitely not a pedestrian friendly time as you will notice from the dodging of cars, horses, trucks and trains.

 

Take a look at this video excerpt of a San Francisco sewer inspection from the TV show Dirty Jobs. Mike Rowe had to go down a second time to re-mortar the brick. I think they need to send Terminix down first!

WARNING: don't watch while eating......

 

 

Don’t you owe it to yourself to take the time to interview 2-3 agents to find your best fit; someone who is going to listen, have relevant and current experience and be your advocate throughout the purchase process?

 

The following questions will help you in the process of interviewing buyer’s agents; you’re about to undergo what is likely your most expensive purchase to date.

1. How long have you been involved in real estate?

2. How many personal real estate transactions have you had? Do you own your own home?

3. Why did you get involved in real estate?

4. What advanced training/education have you undertaken to hone your skills? What designations do you have?

5. What technologies do you utilize to streamline the purchase process for your clients?

6. How are you different from other Realtors?

7. Will you be working & communicating directly with me?

8. Do you work most often with buyers or sellers?

9. How readily accessible will you be? Do you have time for new clients?

10. How are you compensated?

11. How will you negotiate the best price for me?

12. Can you provide me with at least 3 references?

 

So that you can learn a little about me you can Download PDF to read my responses to the questions above or you can read on:

1. & 2. How long have you been involved in real estate? How many personal real estate transactions have you had? Do you own your own home?

I purchased my first home when I was 23 years old in San Francisco. A subsequent purchase was a multi-unit building near Glen Park, San Francisco where I learned the ropes by doing everything from leasing to property management to the intricacies of S.F.'s complicated rent control laws to sweat equity.

Tiring of living so close to "work" (I lived in one of the units for ~3 years), I bought a home in the Sunnyside directly from the owner (FSBO). (I'll save for another post why FSBO's are great for buyers and not so great for sellers).

Seeking warmer weather and a bit more space, I moved to Burlingame which is ~15 minutes south of S.F. in 2004. I represent clients in both San Francisco and San Mateo Counties and am a member of the Realtor Associations (MLS's) for each county.

It's now been since 1992 that I've been involved in real estate.

3. Why did you get involved in real estate?

I became involved in real estate for two reasons. Since my first purchase, I quickly fell in love with property ownership & renovating my homes. I'm a firm believer in the rewards of owning one's personal residence & knew early on that I wanted to become a homeowner ASAP.

I am fortunate to work with a diverse group of fantastic people who I consider friends and enjoy that every day is completely different.

Secondly, prior to my becoming licensed which I'd been thinking about for a couple of years, I had the experience of working with a "veteran" agent who did less than a stellar job in representing me as a buyer. This resulted in a very costly, 5+ year lawsuit which resulted in the judge ruling in my favor, details of which will be shared in future posts. I knew that if I could receive this poor level of care from a long term agent that I could do a better job of protecting my clients.  I will note that I had good experiences in working with my prior Realtors.

I do everything possible to ensure my clients have no surprises with their purchase through extreme diligence and continue to be there as a resource after close of escrow since I do care about the fantastic people that hire me & who have placed a great deal of trust in me.

I have invaluable experience on several levels to offer my clients.

4. What advanced training/education have you undertaken to hone your skills? What designations do you have?

I fully believe in the power of continually improving one's skills through education which translates into a higher level of skill & professionalism for my clients. I have both an Accredited Buyer's Representative (ABR) & Graduate of Realtors Institute (GRI) designations.

I currently am completing coursework for the Council of Residential Specialists (CRS) degree which is held by less then 4% of all licensed Realtors.

5. What technologies do you utilize to streamline the purchase process for your clients?

I continually research new tech tools which will help save my clients time in the purchase process. I've been using Docusign for more than 3 years. Clients love the ease in signing docs online as well as making a contribution to the environment by cutting down on paper usage & drive time to gather signatures.

On that environmental note, I run a 95% paperless transaction and clients receive a pdf file at the close of escrow. The added benefit for clients is a more secure transaction since there is no schlepping around of files which has personal information & which can inadvertently get lost or stolen. Our title companies are slowly making the move in this direction as well.

For sharing of large files, I use Sugarsync a great way to share large disclosure packages or photos which may be kicked back by email accounts which have small capacity for files. I've tried out a couple of online transaction management programs where clients can check in on the status of their docs, escrow & time lines. These early systems lacked certain robust features.

Fortunately, the fantastic San Francisco Association of Realtors is rolling out a new version which will offer a lot more features for clients. I'm really excited to incorporate this into my business in 2010! These are a few key tools that I've incorporated into my business practices.

6. How are you different from other Realtors?

My goal is to be a forever agent for you and your friends!

Throughout our working relationship your goals and concerns are my priority. After the close of escrow I continue to be a resource for my clients who rely on me as a resource for their needs as they live in their home, whether it is referrals to contractors, painters, electricians or other service professionals to networking with my colleagues and friends for job leads for their college grad kids.

Clients confidently introduce me to their friends to help with their real estate needs.

7. Will you be working & communicating directly with me?

When you hire me, I will be in direct communication with you. I have a support team who works behind the scenes including a Transaction Coordinator, this frees up my time so that I'm readily available for my clients.

After all, you've taken the time to interview & get to know me not my support staff.

8. Do you work most often with buyers or sellers?

I work with a diverse group of buyers including first time buyers, move up buyers, techies, retirees, & investors. Typically, my clients are about 50/50 buyers and sellers. I've taken additional educational course work in earning my ABR designation which is focused specifically on buyers needs which are different from seller needs.

9. How readily accessible will you be? Do you have time for new clients?

I don't work "banker's hours." I am available for clients 7 days a week & work around my clients schedules even if it means drawing up an offer at midnight due to your work/travel schedule.

The reality is that I work 16 hour days when occasionally needed to keep up with my client responsibilities.

10. How are you compensated?

In California, buyer's agent are compensated through the commission offered by the seller. There is no out of pocket expense for you.

Therefore, why not experience the full benefits of working with a Realtor by hiring your Realtor at the start of the purchase process!

11. How will you negotiate the best price for me?

There are a number of details that goes into crafting a strong offer; the negotiating of price doesn't stop once a buyer is in contract.

A pre-approval letter specific to the property will be included in your offer so that the seller and their agent know they are dealing with a qualified buyer.

Together, we will look at recent sales data for the area to determine what dollar amount to come in at.

I will explain the nuances of any properties that I've seen. I tour about 20-35 properties a week in several neighborhoods and it's very likely that I will have seen much of the pending & sold inventory.

If necessary, I will call agents of sold listings to understand the factors that led to the sales price; was the pest report high, were there buyer credits, were there appraisal issues, were there multiple offers and if so how many?

We will evaluate year over year market data to see what the trends are for that particular neighborhood/community including: are sales increasing/decreasing, what are typical days on market, how much inventory is there.

If we are dealing with new construction, I will network with my Zephyr colleagues to see what deals developers are negotiating on certain buildings. These sales & buyer incentives typically are not in the MLS.

We will discuss appropriate contingencies & inspections to include in your offer which will protect your interests as well as evaluate offer strategies if the property is to receive multiple offers.

I also present offers in person. This gives the list agent a chance to see me in person, hear about my clients, and discuss the terms of the offer.

Once your offer has been accepted, during your contingency period events will include inspections, appraisal, loan coordination, & meeting a few neighbors. For details on why it's important to meet neighbors click here.

During negotiations which will be ongoing from the time that your offer is accepted to the time that escrow closes, we will work as a team and I will keep us grounded as well as work tirelessly towards the mutual success; seller & buyer meeting their goals in a partnership approach.

It is possible for both parties to gracefully get what they want at the end of the day.

12. Can you provide me with at least 3 references? I will happily provide references. My clients welcome the chance to chat with you about their experience working with me if you'd like. For now, here are a few testimonials. 

Here are a list of agencies offering help to quake victims in Haiti as provided by my fantastic company Zephyr Real Estate.

My company doesn't make it any easier then this to get involved in helping Haiti's quake victims. Please contribute whatever you can; together we can make a difference!

I've contributed by text and plan to donate more.

American Red Cross: Donations may be sent to the American Red Cross Bay Area chapter, 85 Second St., San Francisco, CA 94105. Contact the Red Cross at (888) 443-5722 or online at www.redcrossbayarea.org. --

You can also text HAITI to 90999 and a $10 donation to Red Cross relief efforts will be charged to your cell phone bill.

 

CARE: Donations may be sent to CARE, 465 California St., Ste.1210, San Francisco, CA 94104 or online at www.care.org. Contact CARE at (800) 521-CARE.

 

Doctors Without Borders: Donations may be made by phone at (888) 392-0392 or online at www.doctorswithoutborders.org

 

Mercy Corps: Donate online at mercycorps.org, by calling (888) 256-1900 or by sending checks to the Haiti Earthquake Fund, Mercy Corps, Dept. W, P.O. Box 2669, Portland, OR 97208.

Partners In Health: Donate at pih.org/home.html or to Haiti Earthquake Relief at Partners In Health, P.O. Box 845578, Boston, MA 02284. Phone: (617) 432-5256.

UNICEF: There is a special page for donations for the children of Haiti at www.unicefusa.org/haitiquake. Or call (800) 486-4233.

World Vision: Visit worldvision.org, call (888) 511-6598 or e-mail info@worldvision.org.

Save the Children: savethechildren.org; call (800) 728-3843.

International Rescue Committee: Supporters can donate directly via www.theirc.org or they can call (877) 733-8433. 

 

I attended an informative meeting a few Mondays (12/14/09) ago in Burlingame about the High Speed Rail (HSR) project. A big thank you to Ted who coordinated the meeting which drew about 40-50 neigbors.  The background is that Ted and a few other neighbors became extremely involved in learning more about the High Speed Rail project and went so far as to form a Burlingame based grass roots group:  Don't Railroad Us.

If you care about and enjoy our Peninsula lifestyle, you will probably want to stay in the loop with this project by going to community meetings and signing up for e-newsletter updates from your community.  I know from first hand experience that one has to protect what we enjoy and what we probably at times take for granted in our communities.   (read on about our successful fight against eminent domain in 2007)

There are some pretty powerful forces/agendas out there that can have a negative impact on our communities but individuals can and do make a difference in preserving and protecting what we value.

Burlingame's e-news site.

Town of Hillsborough updates

City of San Mateo updates

Peninsula Cities Consortium is made up of Burlingame, Menlo Park, Belmont, Atherton, & Palo Alto; they have an e-newsletter you can sign up for.

Issues include trains traveling at 125 mph through cities, a $20 BILLION dollar short fall to finance such a project as well as lower than projected ridership and higher fares than initially expected.  There seems to be holes in feasibility studies, cost to construct as well as negative impacts on local/S.F. Peninsula communities; eminent domain could become a reality with such a project since the tracks need to be wider;  two sets of tracks are necessary since Union Pacific (they run freight trains on the existing tracks) has no intention of changing their trains or in going electric which requires a different type of track.

Another big challenge is that this project is trying to build a wider set of tracks in areas which are densely populated including homes which were constructed next to the train tracks.  Additionally, as it is now, Caltrain is having a hard time meeting ridership numbers which has resulted in cuts in service times and stops at certain stations such as at Broadway.  Lastly, what happens once riders disembark?  Will there be car rental options, buses, or other transit options to get passengers from the train station to their final destination?

From The Burlingame Voice:

The San Mateo Times has reached the conclusion that it is time to mothball plans for high-speed rail in California.  Here's the rationale they list:

The high-speed rail system was flawed from the start. California does not have population densities close to those in Japan and Europe, which have successful high-speed rail systems.

Also, California has a poor record of accomplishing large construction projects anywhere near original estimates or completion forecasts.

Rail transportation funds would be far better spent on metropolitan transit systems like BART extensions to San Jose and eBART in the East Bay.

From the Don't Railroad Us website here is the more detailed scoop on this proposed project:

IS THIS WHAT YOU HAD IN MIND WITH HIGH SPEED RAIL?

In November 2008, California voters approved Proposition 1A, a $9.95 Billion bond measure to partially fund a $45 billion, 800-mile High Speed Rail (HSR) system between San Francisco and Anaheim. What most Peninsula voters did not know is that the first phase of the project scheduled for completion is the San Francisco to San Jose segment. This will slice right through our communities with construction scheduled to begin as early as 2011.

There are several alignment options being considered, including two above-ground types of structures, varying in height from 15-22 ft. This height does not include 25ft. catenary poles to supply power to the trains. The train platforms will likely be 90-125 ft. in width to accommodate four tracks. It is these raised structures that are of greatest concern to residents of the Peninsula as they threaten to bisect our communities, impact quality of life and diminish property values.

The current business plan (2008) estimates 18-20 HSR trains per hour during peak daytime hours, traveling at 125 MPH. Together with projected Caltrain plans for 12 trains per hour, there will be one train approximately every 2 minutes during peak hours. Plans are being finalized by the California High Speed Rail Authority, a 9-member group with NO representation from San Mateo County.

The momentum behind this project grows with each passing day, as Federal stimulus money for rail projects becomes available and powerful politicians in both San Jose and San Francisco push the HSR project. But none of these commission members reside here, and won’t live daily with the consequences and damage caused to Burlingame.

Unfortunately, a majority of voters in November 2008 approved Prop. 1A, authorizing the sale of $9 billion in bonds for high-speed rail. A year plus later, as more details about the HSR project are released, it seems like this wasn't the project that voters would have been in support of if they had this information upfront.

The video below shows the three design options:  an elevated HSR viaduct, an open trench & a cut & cover trench (tunnel).

Additional views shared on: A Bumpy Ride for High Speed Rail

QUEST on KQED Public Media.

San Francisco has for a long time had an overall great recycling and compost program which recently became mandatory in the city's effort to further increase the recycling rate from 72% to 90%.

It wasn't until I moved to the S.F. Peninsula that I soon missed San Francisco's weekly pick up schedule and the blue bins which are used for both paper, metals and plastics. The Peninsula (San Mateo County) also does not compost kitchen waste (just yard waste) meaning residents have to buy their own compost bins to use in their back yards if they want to compost kitchen waste. All this will hopefully change in the next year or so when the current contract with the existing Allied Waste garbage & recycling service ends.

In my research I learned that San Francisco's recycling program is now 20 years old!

If you're not familiar with the S.F. recycling/compost program you can visit SFEnvironment.org.

I've personally been a big supporter of recycling, reduce & reuse for years, more so after completing a BS in Environmental Studies. Since compostable bags have become more widely available, composting kitchen food scraps is now much tidier to handle.

While recycling in S.F. has been at 40% for single family homes, 50% for restaurants & 20% for apartment buildings it sounds like part of the focus is to increase rates among apartments.

Per The Sacramento Bee: The city’s most notorious recycling laggards tend to be owners of apartment buildings, Mr. Blumenfeld said. “We’re mainly focusing this new law at multi-tenant buildings; only 25 percent of those building owners provide recycling for renters.”

Personally, I've been hounding the city off & on for the last 5+ years to get them to pick up the green 32 gallon compost bins which are stored in an open area but up a flight of stairs at my rental property. Since I no longer live at the building and there is no on-site manager since it's a small building, I've had to rely on my tenants to bring down the compost bins, which understandably is hit or miss not to mention that the bins are heavy & cumbersome to lug down a flight of stairs.

The city also has a policy that bins need to be brought in from the street by the end of the day otherwise warnings and fines will ensue. Hence the reason for my hounding Sunset Scavenger as to why for years they'd pick up the building's garbage and blue recycling bins (an add-on service which is at an additional charge) but not the compost bins. I even threatened to stop the compost program at my building if they started implementing fines when my tenants didn't bring the bins in from the street in a timely manner.

Just one example of the frustrations in trying to do the right thing in a city that does not always have all the systems in place to make their programs more widely embraced.

For the record, Sunset Scavenger does not seem to advertise to property owners that they offer an elevated garbage/recycling pick up service. I found out about this service through a neighbor ~9 years ago.

In a call that I placed to Sunset Scavenger this week, I learned that Sunset Scavenger will FINALLY pick up the green compost bins & bring them back up from the street to their stored area!! For my three compost bins to be picked up by Sunset Scavenger it will add about $37/month to my bill.

If you are a tenant or an owner of a smaller building which does not have an on-site manager to pull bins out curbside this service will now make it easier to recycle and compost. It's beyond me why this service is not being promoted by Sunset Scavenger. Here is the number to call to sign up for this service: (415) 626-4000.

Perhaps this accounts in part for the low recycling rates among S.F. apartment buildings??

I'm not sure where S.F. is at with issuing fines for garbage & recycling bins which are stored in front of a property. My recollection is that for aesthetics bins need to be stored out of site or within a storage type unit. It's not uncommon for S.F. properties to have no garage, no front yard & to be fully attached resulting in there being no space to store bins. Perhaps S.F. will grant exceptions?

Feel free to share your success stories or tips in implementing a recycling & composting program at your property.

Related post: The Paperless Real Estate Transaction is Possible!

 

And here are the S.F. citywide sales trends for condos, coops (the few that we have) and lofts. TIC data is included in reports separate from condos. I thought it would be interesting to see what, if any differences there were between the property types. TICs are a unique S.F. property type with it's own unique financing if one is going the fractional loan route.

It turns out that most of the numbers are somewhat similar to the condo/loft data with the exception that the TIC median price went up when compared to the small dip in condo prices and the number of sold TIC units was higher than condos by 41%-perhaps a signal of aggressive TIC pricing??

Either way, numbers for both categories are definitely improved from 2008. Click here for sales trends for S.F. single family homes         CLICK ON EACH CHART TO ENLARGE

.

Below is the stand alone TIC data:

..

Here is the data for all of S.F. just single family homes 2008 vs. 2009 which shows median sales price is up, sales volume is up, properties under contract is up by 42%, and inventory is down by 46%. The numbers are certainly looking promising. Where do you think our market is at? Comments are welcome! Click on each chart to enlarge

Yeah!!! Here is a cool new app for the iPhone which allows one to research crimes in particular neighborhoods.

One of the top questions I get from my buyer clients is how safe a neighborhood is, something which is really subjective. I always refer my clients to specific community websites to do their own research on what is happening crime wise in a neighborhood.

Now, buyers & residents in general have this great site where one can enter a specific property address to bring up all crime mapped data, a much better feature then what I've seen on some community police sites. Online crime mapping data is updated daily and CrimeReports updates sex offender data weekly. The free iPhone app is cool for immediate data on the go.

The CrimeReports website has a great analytics feature along with the option of having time sensitive crime data emailed to you for a specific area. There is also a Citizens Crime Alert where crime maps can be emailed to you daily, weekly, or monthly. Hopefully, more police departments will sign on to this great information sharing service. So far, San Francisco has joined & in the mid-upper Peninsula: San Mateo, Burlingame, Santa Clara, Palo Alto, Half Moon Bay, & San Carlos are in.

 

 

 

This detail is touched on  in my post: A few key questions to ask Realtors you are interviewing (11. How will you negotiate the best price for me?)

As part of the due diligence process of investigating a property and neighborhood, I recommend to my buyer clients once they are in contract on a property that we go door to door to meet a few neighbors.  This is a great way to get a neighbor's perspective (sometimes a mix of opinion & fact) on the neighborhood, details which even the seller may not be aware of & has therefore not indicated in the disclosure packet.

Neighbors, especially if they've been there for several years, can share invaluable information including:  how the area responds in heavy rains-is there flooding in particular spots of the block; are there any noise nuisances; how do they like the neighborhood; how are the schools if they have kids; what planned city projects are being proposed but are not yet approved.

To illustrate the gems that can be uncovered, I was working with first-time buyers this summer who were in contract on a single family home.   I knew from the "light" seller disclosure responses to certain questions on the Transfer Disclosure Statement (TDS-a form with dozens of questions that a seller is required to answer to the best of their knowledge) that we were dealing with both a seller and agent who weren't paying enough attention to the importance of spending the time required to accurately fill out the TDS.

The house was on a busy street, actually a main thorough fair to Highway 101 and was also less than a block away from a business/commercial district, TDS questions to which the seller responded in the negative.  There were several other issues we were having with the seller which were revealed as we moved through the inspections.

One neighbor that we met told us that in the front yard of the subject property there was a bubbling of liquid that had been occurring for several months.  I am aware that there can be ulterior motives to responses that one may gain from neighbors, but I feel that overall they've been spot on with sharing of information.

This particular area that he pointed out had fresh bark laid down; upon a slight pulling back of the weed fabric, we discovered that someone had stuffed a rag into what turned out to be a sewer clean out.  I had already recommended to my buyers to have the sewer line videoed.  The plumber now had another access point to the sewer line which turned out needing complete replacement to the tune of more than $6000.00!  My clients ended up walking from this property after we reached a standpoint in negotiating a credit from the seller for over $20,000.00 in repairs that the inspections revealed.

This particular recommendation to meet neighbors is a result of my personal experience with a real estate purchase (prior to my becoming a licensed Realtor) that went sideways after escrow closed (resulted in litigation due to inaccurate disclosures by both the sellers and the brokerage).

I sure wish I either had been working with an agent who made this recommendation of meeting neighbors or that I had thought of it myself because I sure would not have bought my current house if I'd known about the major overpass project that was to commence in the near future (turns out our neighbors were aware of this project) or the two underground fuel storage tanks that we located under the driveway, both details which the sellers "forgot" to disclose.

An invaluable learning experience of the process of dealing with dishonest sellers, incompetent agents (both listing and buyer's agents), and how the mediation/arbitration process can be incredibly slow (not fun paying legal bills for 3+ years).   More details to come in a future post on the mediation/arbitration process & the importance of underground tank inspections (UST's) for S.F. Peninsula properties.  An FYI, that the city of San Francisco has a mandatory point of sale requirment for tank inspections whereas San Mateo County does not.

Don't get me wrong, I think & hope for the most part that sellers and agents try to do the right thing.  I'm certainly not looking for a smoking gun; rather,  I am being incredibly thorough in helping my buyer clients learn as much as possible about a property and the neighborhood.

It was probably a matter of timing that after buying a small handful of real estate in a fairly short time span snag free that I would run into this type of situation.

Everything happens for a reason and I choose to focus on how this personal experience helps me be an above average Realtor who diligently & tirelessly works to protect clients (both buyers and sellers) from legal exposure.

In the words of my first broker manager, "buyers forgive what is told and sue for what is not disclosed."  So true!  The leading cause of disputes between buyers and sellers is for lack of proper disclosure about a property and the community.

Thanks for reading!  Comments and questions are welcome.

 

 

Reading through the latest issue of S.F. MarketTracker, I came across that the Albion Castle is on the market for $2,950,000!  The Albion Castle website created by a former resident of the castle, has amazing photos of the castle, Hunters Point and how it's been built up over the years, as well as general history of the castle, including that it still has an underground spring.  It's definitely worth taking a few minutes to check out this site.

Thank you Melody (Zephyr's awesome Marketing Director) for the heads up!  .

Details per Melody:  In 2005, the Albion Castle located in Hunters Point was put up for sale and auctioned to the highest bidder for just over $2 Million. The new owner of 881 Innes Avenue intended to restore the castle and convert it into a restaurant, while also restoring the Albion Brewery.

The castle itself is an incredible property and contains an underground spring which provides up to 10,000 gallons of water each day (bottled water? Pool PARTY!). The castle has been extensively restored and is now on the market for $2,950,000 or $2,054 per square foot - clearly a record for the neighborhood.

A little web research shows how the neighborhood surrounding this castle has changed over the years. A castle for the holidays? Now that's one to add to your wish list!

 

 

CLICK HERE FOR FULL REPORT

(apologies for the format-I'm having HTML issues with this post!)

Here is the latest tax scoop from my fantastic accountant, Pat Polo.  If you're in need of a tax professional I highly recommend his services.

 

Shwiff, Levy & Polo, LLP
Certified Public Accountants
Litigation Support Services
433 California Street, Suite 1000
San Francisco, CA 94104
www.slpconsults.com

 

2009 is quickly coming to a close but there is still time to possibly maximize your federal tax savings for the year. Many year-end tax planning techniques can help you save money. Because of the recession, some of the year-end strategies take on added urgency for individuals affected by a job loss or a reduction in income.

Bunching itemized deductions.If quitting smoking is one of your New Year’s resolutions, you might want to stop in December and possibly deduct the cost of participating in a smoking cessation program. Many medical expenses are deductible. However, medical expenses may only be deducted if they exceed 7.5 percent of your adjusted gross income. Our office can review your 2009 medical expenses and if you are close to the threshold for 2009, you may want to accelerate some elective medical expenses into 2009 to jump over the 7.5 percent floor.

Other expenses may only be deducted if they exceed two percent of your adjusted gross income and you itemize your deductions. These are known as miscellaneous itemized deductions and may also be bunched. They include certain unreimbursed employee expenses, tax preparation fees, certain job search expenses, and more.

Individuals who lost a job in 2009 and whose incomes have fallen need to carefully time their deductions. In some cases, it may be more valuable to defer bunching itemized deductions into 2010 rather than accelerating them into 2009. Our office can help you time your deductions for the maximum benefit.

Above-the-line deductions. Above-the-line deductions help minimize your tax bill because they reduce your adjusted gross income. Generally, above-the-line deductions are only available to taxpayers who itemize their deductions.There are also important income limitations.

One of the most valuable deductions for many individuals is the deduction for state and local real property taxes. You may be able to pre-pay state and local taxes for 2010 before the end of 2009 and take a deduction for 2009. Additionally, for 2009, individuals who do not itemize their deductions get a partial state and local property tax deduction. A non-itemizer single individual can deduct up to $500 in state and local property taxes paid in 2009. Married couples filing joint returns who do not itemize their deductions can deduct up to $1,000.

Another valuable deduction will expire at the end of 2009: the deduction for state and local sales tax when you purchase a new vehicle. The special deduction is available whether you take the standard deduction or itemize deductions on your return. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 return. At year-end, new car and truck prices are generally high across the county, especially after dealers emptied their inventories under the cash-for-clunkers program. If you qualify, the state and local sales tax deduction could help bring down the cost of a new vehicle. Generally, the new vehicle must be valued at $49,500 or less. There are important income limitations so contact our office before you make your purchase.

Charitable contributions. Year-end charitable giving generally has always been a smart way to reduce current year taxes but tough substantiation requirements cannot be overlooked. Traditionally, charitable contributions (and other itemized deductions) phased out for higher-income individuals. However, that limitation is reduced by two-thirds for 2009 and does not apply at all in 2010, which makes charitable contributions more valuable not only to charities but also donors. Depending on your income, you may want to delay a charitable deduction into 2010 to take full advantage of the phase out of the limitation.

Retirement savings. The economic slowdown has caused many individuals to tap their retirement savings to help pay for everyday expenses. To discourage the use of pension funds and IRAs for purposes other than normal retirement, the Tax Code imposes an additional 10 percent tax on certain early distributions of these funds. Early distributions from a qualified retirement plan are also subject to federal income tax. However, if you are over age 59 ½ and your taxable income has fallen because of a job loss, the income tax you pay on the distribution could be offset by other deductions.

Distributions that you roll over to another qualified retirement plan or IRA are not subject to the 10 percent additional tax. Generally, you must complete the rollover by the 60th day following the day on which you receive the distribution.

Please contact our office if you have taken an early distribution from a qualified retirement plan or IRA. Besides the 60-day rollover window, there are special rules for military reservists, disaster victims and others.

FSAs. The current generous rules for using funds in a health flexible spending arrangement (FSA) may soon be a thing of the past. Congress is considering, as part of health care reform, placing tougher rules on health FSAs. For example, you could only use health FSA dollars for prescription medications with some exceptions and your maximum annual contribution to a health FSA would be limited to $2,500. These changes could be enacted before year-end but would not affect your FSA spending for 2009.

Depending on the terms of your health FSA, you may have to use your remaining health FSA dollars on or before December 31, 2009. This is known as the “use it or lose it” rule. Some plans allow for an extended period into 2010; for example, until March 15, 2010. If you have unused health FSA dollars, you should consider accelerating qualified purchases before year-end.

Congress. Finally, there is the added uncertainty of what Congress will do about many popular but soon-to-expire tax breaks. In addition to the ones we have mentioned, other incentives that will expire at year-end include the state and local sales tax deduction, the teachers’ classroom expense deduction, the higher education tuition deduction, tax-free distributions from IRAs for charitable purposes for individuals age 70 ½ and older, and national disaster relief. Many of these incentives are expected to be renewed for 2010 before year-end or in early 2010 with Congress making them retroactive to January 1, 2010. Our office will keep you posted of developments.

 

 

Here is the most recent video from  Tom Sinkovitz, KNTV political reporter and anchor, who has been working with the San Francisco Association of REALTORS® for two years producing video features on San Francisco real estate subjects. The features are called “Spotlight with Tom Sinkovitz”.

Five Best Things You Can Do to Sell Your Home

The Spotlight link below will take you to the full series which includes:

1.    I Want In
2.    Five Best Things You Can Do to Sell Your Home
3.    Recognizing the Bottom
4.    First Time Incentive
5.    Can I Get a Jumbo?
6.    Appraiser
7.    Green Homes
8.    Value of Green
9.    Why It Makes Sense to Use a REALTOR®
10.    Fighting Foreclosure (What you can do about the threat of foreclosure)
11.    What to Do If You Have a Problem Mortgage
12.    Curb Appeal (How to make your home stand out)