San Francisco Investment Property

Latest Issue of S.F. Market Tracker-Real Estate Update for San Francisco Homebuyers & Sellers

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Sun, 22 Nov 2009 12:54:36 -0600

Real Estate Update for San Francisco Homebuyers and Sellers

courtesy of: Cheryl Bower DRE# 01505551 415.999.3450 cheryl@cbower.com

Most Recent Sales citywide in the last 21 days


Address	Type	BR/BA/Units	Parking	DOM	List Price	Sold Price
855 Folsom St #342	Loft	2BR / 1BA	0	251	$399,000	$399,000
206-East Crystal Cove Ter #139	Condo	3BR / 3.5BA	2	37	$539,900	$547,119
2240 Golden Gate Ave	-	-BR / -BA		149	$4,150,000	$3,910,000
855 Folsom St #530	Loft	1BR / 1BA	0	147	$397,717	$397,717
345 Filbert St #1	Condo	2BR / 2.5BA	1	135	$1,495,000	$1,400,000
888 7th St #306	Condo	1BR / 1BA	1	115	$329,000	$329,000
734 14th St #3	Condo	2BR / 1BA	1	93	$575,000	$539,000

>> View Additional Sales

>> View Newest Listings

In This Issue… Most Recent Sales San Francisco Market Overview Hunters Point Shipyard Mission Bay Development Tis the Season

San Francisco Market Overview

	Single Family Homes	Condos/TICs/Lofts	2-4 Units
Median Sales Price, last 180 days % Change from prior 180 days Avg. Days on Market, last 180 days % Change from prior 180 days	$668,000.00 +13.80% 61 -12.86%	$605,000.00 -0.98% 80 +1.27%	$1,008,000.00 +8.39% 86 -6.52%

Hunters Point Shipyard We've been discussing large development projects that have the ability to change the face of certain area's of our great city. None are more important than the renovation of the Hunters Point Shipyard. A brief look at what's done and what's next: Developer: Lennar Urban Phase 1: 88 units set to break ground at the start of 2010 Phase 1A: 159 units set to break ground in the 2nd half of 2010 Price Range: $400K-$700K with the majority of units priced under $500K. Price per square foot will be in the neighborhood of $500. While the developer is slightly leery of the current market, there's also much optimism. "This is a long-term project, and we have to get started at some point. By the time the first batch of homes are on line, there won't be a lot of inventory of new projects out there," said Jack Robertson, VP of Development for Lennar Urban. Materials used will be stucco, corrugated steel, wood, translucent resin panels and lots of glass to take advantage of city and bay views. The project will have a much different feel than the block style located along Berry Street.

Mission Bay Development

Six years ago there was a vision for a new neighborhood in southeast San Francisco. Come Thanksgiving when 130 families move into the recently completed Mission Walk project (pictured right), there will be a total of 3,426 new units added over the past six years! There will be a lull, however, of at least 2 years before the next batch of 6,000 units is complete. Project Updates Radiance: 99 units in Phase 1 with only 4 remaining. The next phase of 318 units is set to resume construction in late 2010. Artera: 269 units with only 40 remaining Mercy Housing: Affordable housing units, similar to Mission Walk, is currently raising money for the 2nd phase of development and has slated 2011 for construction with completion in 2012 One surprising element with all the development - kids! The area is home to over 350 children. A neighborhood group has been formed with the goal of creating a playground, which was not slated for construction until 2012, but is now becoming a major priority.

Tis the Season

With Thanksgiving nearly here, holiday festivities are springing up all around town. A few highlights to get your holiday cheer in full swing… 39th Annual Tree Lighting at Ghirardelli Square November 25th, 5:30pm 50 foot tree, Ghirardelli carolers and hot chocolate - Yum! Festival of Lights November 26th - December 31st Fisherman's Wharf. The holiday season is the time to visit this typical tourist stop. Bright lights outline the buildings and decorations line the lagoons. Union Square Tree Lighting November 28th, 6pm Yet another tree lighting, but you can ice skate and watch this one! Holiday Ice Rink at Embarcadero Center Open now. Easily one of the best outdoor seasonal rinks. Where else in the world can you ice skate alongside Palm Trees?

Cheryl Bower • 415.999.3450 • cheryl@cbower.com • www.sfbungalow.com

Recent listings, sales, and market data are based on information from the San Francisco Association of Realtors MLS for the periods shown. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.

Burlingame market trends: October 2008 vs. October 2009. It's a bit of a mixed bag but overall improved from 2008!

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Sat, 21 Nov 2009 10:16:41 -0600

Coyote Point, Burlingame

I recently pulled data for a neighbor who is evaluating selling his Burlingame home. It's a bit of a mixed bag with trends but overall there is an improvement from October 2008.

Days on market is down slightly:

Median price is up:

Inventory is down:

Units sold has been on a consistent upward trend with the exception of August & October 2009.

There has been a steady up tic in buyer demand as of April of 2009 with properties going into contract at a 33% increase.

Then we hit the expireds. Wow!! A 129% increase in expireds. Expireds include withdrawn and canceled listings as well. I did a little more digging & pulled these properties in the MLS. Pricing was a good cross section of Burlingame properties ranging from ~$2,000,000 to the low of $779K for a bungalow on the east side.

Apparently there was a rather large group of sellers for the month of October who didn't have realistic pricing in place, putting their overpriced property on market & letting it linger for up to 6 months before taking it off market.

Who whee!! We must have had a group of tired, frustrated agents who didn't get paid at the end of the day (or more accurately at the end of 3-6 months).

October had a sale high of $3,050,000 and a low of $525,000, which was a short sale in Lyon Hoag (east side)-a super cute 2br/1ba Craftsman Bungalow with no parking (it's pretty rare to come across homes without parking in Burlingame unlike S.F.) and a small lot (3125sf vs. the average 5000sf). It so reminded me of a San Francisco property.

To wrap it up, Burlingame properties that are well priced & show well are selling within 30 days & sometimes within the first week with multiple offers.

Posted by:

Cheryl Bower, Realtor , GRI, ABR
Cell 415.999.3450

cheryl@cbower.com
DRE #: 01505551

Follow Me on

S.F. Bungalow Blog Heath Ceramics Sausalito, CA: Annual 20% off sale & open studio November 20-29

--- @ WiseStamp Signature. Get it now

Heath Ceramics Sausalito, CA: Annual 20% off sale & open studio November 20-29

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Fri, 20 Nov 2009 12:34:55 -0600

I'm very excited to at last be paying a visit to Heath Ceramics in Sausalito this weekend. Better yet, it's their annual 20% off sale. I've been so drooling over their tile (my other favorite for tile is Walker Zanger with stores in Hayward & San Francisco).

I'm thinking about new tile for a bathroom in need of upgrading and between these two places I should be able to find inspiration! Both stores also sell seconds or discontinued tile, a great way to save a few bucks since their tile can be pricey but very high quality.

As an aside (forgive me, I will occasionally digress): when updating rooms in your home, it's typically the labor that is the most expensive cost. It's so obvious when developers or home owners cheap out on material. There is a time and place for Home Depot vs. higher quality tile or higher quality construction products. One needs to balance resale value as well as not over improving for one's neighborhood.

Check in with your local Realtor for feedback when doing your next project. After all, we see hundreds of properties a year & are also getting lots of feedback from buyers as to their likes/dislikes. A misstep in product selection could end up being a huge miss for future buyers which will end up coming out of your bottom line when you're trying to sell your property.

Subtle nuances such as choice of wood floor finish (please!!! don't use high gloss sheen-it's tacky & reflects too much light; matte/low sheen is better & allows the wood grain to better show through) to doors (No hollow core doors!!! They scream cheap. It's not that much more money to purchase solid doors) to choice of tile (Home Depot tile does not belong in new construction or renovated bathrooms/kitchens especially in some of our higher end neighborhoods/communities).

Don't get me started on vinyl windows! I'll save my thoughts on vinyl for a future post. ;-)

At last! I'm circling back round to my original point which is to go check out Heath Ceramics this weekend!

KBIS Design Show, DeeDee Gundberg, diamonds & bowties in volcano. Photo: © Ann Sacks

Posted by:

Cheryl Bower, Realtor , GRI, ABR
Cell 415.999.3450

cheryl@cbower.com
DRE #: 01505551

Follow Me on

S.F. Bungalow Blog City of Burlingame CA: Vistica & Winges elected to head new environmental group

--- @ WiseStamp Signature. Get it now

City of Burlingame CA: Vistica & Winges elected to head new environmental group

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Fri, 20 Nov 2009 08:24:32 -0600

As of the latest Burlingame e-newsletter, there are exciting environmental changes underway! It has taken time, but it seems like green/eco-friendly construction & living are finally gaining momentum.

Now if Burlingame would implement recycling pick-up on a weekly basis rather then the current bi-monthly schedule as well as start a home green garbage compost program (currently just yard waste is picked up). Thus far my complaints and suggestions to Allied Waste have fallen on deaf ears.

My understanding is that more frequent pick ups are expensive but I believe there would be an increase in recycling by Burlingame residents. If it's not "easy" it's not going to happen is my feeling. As it currently stands, we also have to sort paper from glass/cans/metals adding another layer of inconvenience.

In comparison, San Francisco has a great recycling program consisting of weekly pickup, one bin for paper and glass, and home composting pick up. Currently, I have to store 6 bulky bins due to Burlingame's recycling system. Ah well, I'll keep working on this.....

Two architects have been elected to lead the new Burlingame Citizens Environmental Council, an organization of citizens who plan to help their community become more environmentally sustainable by reducing carbon emissions, preserving natural resources and promoting sustainable lifestyles.
The group elected Stan Vistica as Chair and Jerry Winges as Vice Chair. Vistica, an architect based in San Francisco, has served on the Planning Commission for 10 years. Winges owns an architectural firm in Burlingame.

The Burlingame Citizens Environmental Council (BCEC) began meeting this fall after the city's Green Ribbon Task Force disbanded. The Task Force, which was formed in 2007, completed its work when the city's Climate Action Plan was adopted by the Burlingame City Council last summer.

BCEC plans to promote the adoption of green building practices in Burlingame and to make certain the city meets deadlines outlined in its Climate Action Plan. Representatives will work closely with local schools. Among its local initiatives will be a Drive Less Challenge, bike tours, a tour of sustainable homes and a green business incentive program. The group plans to continue the successful green speaker series and Green Street Fair pioneered by the Green Ribbon Task Force.

"I am delighted to lead Burlingame citizens in our effort to clean up the planet while improving lifestyles. One of our goals is to attain measurable environmental improvements using the Climate Action Plan as a baseline. It's going to be exciting," said Vistica.

Vistica noted that BCEC is currently looking for individuals to help design a Web site for the group, write grants and assist with community outreach.
BCEC invites other interested Burlingame residents to join. The organization's next meeting will be held Thursday, December 3, at 7 p.m. at TRG Architects in Burlingame.

For more information about BCEC, contact Vistica at hapvist@gmail.com or Winges at jlw@wingesaia.com.
To learn more about what the City of Burlingame is doing to address climate change, see the Sustainable Burlingame section of the city's Web site. The city's progress on sustainable programs is outlined at http://www.burlingame.org/index.aspx?page=1374.

Posted by:

Cheryl Bower, Realtor , GRI, ABR
Cell 415.999.3450

cheryl@cbower.com
DRE #: 01505551

Follow Me on

S.F. Bungalow Blog Will tenants’ pets be the city’s next “protected class?”

--- @ WiseStamp Signature. Get it now

Will tenants’ pets be the city’s next “protected class?”

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Wed, 18 Nov 2009 10:18:18 -0600

Here is the latest "what are they thinking?" proposal from the ever creative city of San Francisco; a new proposal from S.F. Animal Control that would force property owners to accept pets in their rental units.

As a major pet lover (& owner of 2 dogs & 2 cats) and pet friendly rental property owner, I fully support providing pet friendly rentals and have a screening process for pets (dogs in particular). I also encourage my small group of clients who I handle leases for to go pet-friendly.

It should be a property owners personal choice to allow pets and NOT something that the city should force on property owners. There is also tremendous liability that property owners can face if there ever is an issue with a pet. I'm sure & hope that all pet-friendly property owners have been even more diligent in the screening of dogs after the horrible mauling of Diane Whipple in 2001.

There are also restrictions from insurance companies as to what dog breeds are allowed on a property. This proposal just does not make sense for either property owners or tenants!!

What are your thoughts?

Full details as provided from the November Small Property Owners of San Francisco Institute (SPOSFI) newsletter:

In its October 8 public meeting, the S.F. Animal Control and Welfare Commission proposed a new law that would prohibit property owners from excluding pets in rental units.

Still in the discussion phase, the proposal has yet to be referred to the Board of Supervisors, whose approval would be required to make it law. In keeping with the SF/SPCA’s “no-kill” policy, the Commission aims to increase pet-friendly housing to increase the number of pet adoptions. In fact, SF/SPCA has extended its efforts to cities far beyond San Francisco.

While admirable in theory, it is entirely unacceptable to import animals to San Francisco from other jurisdictions and expect (require) property owners to bear the burden by allowing them into their rentals.

In 2007, when the Commission first proposed to increase the number of pet-owning tenants in the city, the Board of Supervisors made it clear that it did not want property owners compensated for the substantial added wear-and-tear and liability created by pets.

Not only did the Board vote against implementing a 5% rent surcharge to pet-owning tenants; it ousted the three commissioners who had supported the idea. In its proposal, the Commission has clearly failed to foresee the serious repercussions property owners and tenants alike would suffer under such a mandate.

Property owners will inevitably be held responsible with the impossible charge of maintaining their tenants’ comfort as non-pet-owning tenants pass through common areas. Irresponsible pet owners will put a strain on tenant relations as allergy-suffering tenants are forced to endure daily exposure to animals, tenants who fear certain animals are forced to interact with them daily, and tenants are disturbed by animal smells and noises which will inevitably emanate from
their neighbors’ apartments.

In addition, the Commission proposes allowing only “non-dangerous” pets in the mandate. However, any animal behaviorist will tell you it is impossible to determine an animal’s temperament purely by breed or species.

San Francisco property owners do not need more laws dictating how they manage their buildings. Instead, they should be given incentives to voluntarily allow pets into their buildings.

Posted by:

Cheryl Bower, Realtor , GRI, ABR
Cell 415.999.3450

cheryl@cbower.com
DRE #: 01505551

Follow Me on

--- @ WiseStamp Signature. Get it now

Bernal Heights market trends: October 2008 vs. October 2009. What a difference a year makes!

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Sun, 15 Nov 2009 21:11:45 -0600

So I've been shopping in Bernal Heights for the last few weeks with a new client. I like to get a sense of market trends and rely on Terradatum (now offered at no cost by both my S.F. and Peninsula Realtor associations!!) for neighborhood & property specific market data; what are the trends including days on market, properties going into contract, inventory levels, new properties hitting the market & of course pricing trends. Data that Terradatum provides in an easy to interpret chart format which I then share with clients to help in their decision making process.

Wow!! As the chart above shows, there are lots more buyers out there now as compared to 2008. Properties going into contract are up 138%!

As for inventory levels in Bernal, volume is way down by 62%. A balanced market is considered 6 months of inventory; more than 6 months indicates a buyer's market; less then 6 months indicates a sellers market. Fewer listings hitting the market & increased buyer volume=less inventory. Does this mean we have the crazy days of the early 2000's? Nope! It's definitely a mixed-bag out there.

Well priced properties that show well can bring in multiple offers; then there are the lingering properties, on market for 30+ days indicating it's time for a price reduction. Financing is our biggest challenge and buyers, understandably aren't willing to overpay for a property. The heat is on for the Grade A properties and for the rest, buyers are thoughtfully reflective, not willing to rush in unless they feel it's the "perfect" property for them.

Based on the chart of expired listings, it looks like sellers and/or agents are being more realistic with pricing when compared to 2008 since expireds are down 57%.

Days on market is indicating that buyers are taking their time in making a move. One does need to evaluate if numbers are skewed by those few die hard sellers who are still stuck in the heyday market that is no longer there, who have an overpriced property & therefore long days on market.

Each chart can be downloaded by clicking on the chart or if you'd like more detailed market data for Bernal or your specific neighborhood, shoot me an email. I'm happy to provide data for your area.

This is just a snapshot of 8-10 charts of market specific data that Terradatum provides, pulling data from the MLS. Data in this post is just for single family homes.

PENINSULA CITIES CONSORTIUM-High Speed Rail meeting

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Sat, 14 Nov 2009 16:07:17 -0600

If you live on the Peninsula and want to stay in the loop on the High Speed Rail plans, there is an upcoming meeting in Burlingame.

The public is invited!
Fri., Nov. 20th, 8:45am to 10:15am
Burlingame City Hall, Council Chambers
501 Primrose Road
Burlingame, CA 94010

More details about the high speed rail can be found:

http://www.sfbungalow.com/2009/09/12/workshop-today-for-the-peninsula-high-speed-rail-project/

The annual fundraiser Dine, Shop, Drink around town is happening in S.F. this Wednesday 11/18/09

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Sat, 14 Nov 2009 12:41:32 -0600

Zephyr Real Estate has been a sponsor of this fundraiser for the last several years. Proceeds go to the AIDS Emergency Fund and Breast Cancer Emergency Fund. There are some great participating restaurants on the list including one of my favorites, Le Charm in SOMA. Plenty of other choices as well in the Castro, Noe Valley, the Mission, the Haight & Hayes Valley.

Here's how you can help:

Get the word out about Dine - Shop - Drink Around. Please email and otherwise invite your loved-ones, friends and associates to be a part of this event.

Here's our website-see a list of participating establishments:

http://www.dineshopdrink.org

Here's our Facebook Event:
http://www.facebook.com/event.php?eid=140397685597

_____

Be a Captain at a Restaurant or Bar
When you commit to be a Captain you are agreeing to invite at least seven of your friends to join you for dinner and/or drinks at your favorite participating Restaurant and Bar. (See list below) You can sign up to be a Captain on our Volunteer Website at:
http://www.aef-sf.org/volunteernow

_____

Be a Greeter at a Restaurant, Merchant or Bar Several participating establishments have agreed to allow greeters on-site during the event. Greeters are instrumental in providing hospitality for and information about the event while raising additional monies. To see the complete list of establishments where we need Greeters, please visit our volunteer website at:
http://www.aef-sf.org.volunteernow

_____

LIST OF RESTAURANTS

CASTRO
2223 Restaurant
Anchor Oyster Bar
Bombay India
Restaurant
Capri Ristorante
Catch
Cote Sud
Destino
Duboce Park Café
Harvey’s
Home Restaurant
Ike’s Place
La Mediterranee
Poesia
Squat & Gobble Café
Tangerine
Thick ‘n Thin Pizza
Zadin

HAIGHT
Squat & Gobble Café

HAYES VALLEY
Squat & Gobble Café

MISSION
Dolores Park Café
Medjool

NOE VALLEY
Bacco Ristorante
Fattoush
Lovejoy’s Tea Room
Lupa Trattoria

SOUTH OF MARKET
21st Amendment Brewery
Fringale
Le Charm French Bistro

____

LIST OF MERCHANTS/SPAS

CASTRO
Body
Books, Inc.
Citizen
Does Your Mother Know
Hand Job Spa
Sui Generis
Under Glass Framing

HAYES VALLEY
Babies Pet Boutique
Primrose Natural
Skincare Spa
Noe Valley
See Jane Run Sports

SOUTH OF MARKET
Madame S Leather
Mr S Leather
Stompers

____

LIST OF BARS/LOUNGES

CASTRO
440
Harvey’s
Lookout
Midnight Sun
Moby Dick
Q Bar
SF Badlands
The Edge
Toad Hall
Twin Peaks

SOUTH OF MARKET
Chaps II
Powerhouse
Truck

HAYES VALLEY
Marlena’s

Do you have unclaimed property? Find out today!

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Thu, 12 Nov 2009 15:25:21 -0600

Perhaps you will have a nice, unexpected year end cash bump? Check out the State website below to see if they're holding some long forgotten cash of yours.

The following excerpt as provided by the Small Property Owners of San Francisco Institute September 2009 newsletter has all the details. As an aside, this is a great organization to join if you own rental property or want to stay on top of the latest wacky, rental related laws that are perpetually being proposed which more frequently than not can negatively impact both property owners and tenants.

The State of California currently holds more than $5.1 billion in unclaimed property belonging to some 8.2 million individuals and organizations.
This property was acquired through California’s Unclaimed Property Law, which requires “holders” such as corporations, business associations, financial
institutions, and insurance companies to annually report and deliver property to the Controller’s Office after there has been no customer contact for three years. Often the owner forgets that the account exists, or moves with no forwarding address, or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.

To find out if any of this property belongs to you, go online to: http://scoweb.sco.ca.gov/UCP

The database will search for property associated with the information you provide, and if any money is due you, instructions and claim forms are provided. Or
you may call 1-800-992-4647 for more information.

Latest Issue of S.F. Market Tracker-Real Estate Update for San Francisco Homebuyers & Sellers

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Wed, 11 Nov 2009 13:57:32 -0600

Click here for the full newsletter

In This Issue…:

Most Recent Sales

San Francisco Market Overview

Ten Potential Developments

Dine, Shop, Drink and Support a Great Cause!

There's an App for That?

Ten Potential Developments

A recent San Francisco Business Times article highlighted ten developments that could significantly alter the SF Bay Area housing market. Let's take a look at a couple of the ones planned for SF:

Hunters Point Naval Shipyard

1,400 homes in Phase 1 10,500 in Phase 2 For Sale and Rent: 30% below market value (BMR)/affordable Non Residential: 25 acres of parks, trails and open space; 750,000 square feet of retail space. This project will completely redefine the former Hunters Point military base and potentially house over 20,000 people. The first 88 homes are set to be completed in 2011. 570 units are set to be finished by 2012. The entire project should be completed in 15 years.

Parkmerced

An additional 5,679 units planned would bring the total to 8,900. Most of these will be rental units with some for sale. Non Residential: Parks, transit stops, retail and a grocery store. This would create San Francisco's largest rental complex/community. The dangerous MUNI stop at 19th and Holloway would be moved and become part of Parkmerced Village, which would contain a grocery store, farmers' market, cafe and other retail stores. Environmental review is set to be completed by the end of 2009, and the project should come before the Planning Commission in Fall of 2010.

Home buyer's tax credit extended to April 2010!!

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Mon, 09 Nov 2009 14:25:06 -0600

I know many of my buyers will be happy with this news, official as of Friday. Income limits were also increased for individual and joint buyers along with the extension running to April 2010.

For those of you not based in the Bay Area, an individual making $125K/year may seem like a lot of money but it really doesn't go far in our expensive S.F. Bay Area communities especially when one is a single purchaser and trying to squeeze into a home or condo.

There is also a new incentive of $6500 for move-up or trade down buyers.

In S.F., we have a combination of price softening, incredibly low interest rates and tax credits all of which is allowing several of my clients (& buyers in general) who had been priced out of the market to get into a property.

Here's the run down from SF GATE:

Home-buyer tax credit: The bill extends the federal tax credit for so-called first-time home buyers, which was set to expire Nov. 30. This credit remains at 10 percent of the purchase price up to a maximum credit of $8,000. To qualify, you must buy the home as your principal residence and not have owned a home in the previous three years.

It also creates a new credit for people who already own a home and purchase a new one to live in. The credit for repeat buyers is 10 percent of the purchase price, with a maximum credit of $6,500. To qualify, you must have owned and lived in a home as your primary residence for five consecutive years at any time during the eight years before the replacement home is purchased. It's designed for move-up buyers who want a bigger house as well as empty nesters looking to downsize.

These rules apply to both credits, for first-time and repeat buyers.

-- You must live in the newly purchased home for at least 36 months or you will have to repay the entire credit, with certain exceptions for military personnel or people who die.

-- You must sign a binding contract to purchase the home by April 30, 2010, and close by June 30.

-- You may buy a new or existing home.

-- For homes purchased after Friday, Nov. 6, the price cannot exceed $800,000. Under the old law, there was no price limit. Date of purchase is the date title changes hands.

-- New, higher income limits apply to homes purchased after Friday, Nov. 6.

Previously, the first-time home buyer credit phased out for singles with modified adjusted gross income between $75,000 and $95,000 and for married couples filing joint returns with income between $150,000 and $170,000.

The new limits, which apply to both first-time and repeat buyers who purchase after Nov. 6, are $125,000 to $145,000 for singles and $225,000 to $245,000 for joint filers.

For example, a single, first-time home buyer earning $115,000 would get no tax credit if he bought a home in February, but would be eligible if he bought a home in December, assuming all other requirements are met, says John Roth, senior tax analyst with tax information firm CCH.

The new law gives the Internal Revenue Services tools to cut down on fraud in the program and also requires people who claim the credit to attach a copy of their settlement statement with their tax return.

So people can get their tax credit in a hurry, the new law lets people who buy a home in 2009 or before the 2010 deadline treat it as though they bought it on Dec. 31 of the previous year. Say you buy a home on Jan. 31, 2010. If you treat it as though you bought it on Dec. 31, 2009, you can accelerate the credit by claiming it on your 2009 return filed in 2010. Otherwise, you will have to wait until you file your 2010 return in 2011, according to CCH.

Current Conforming Loan Limits Extended Through 2010!!

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Wed, 04 Nov 2009 08:14:26 -0600

Yeah!!! Good news for our very pricey market place. It's incredibly challenging to find a single family home in San Francisco in the low-600's (there are more choices if we're talking condos); this $729+ number makes sense for our market. Most of my 2009 buyers have been getting into the market because of FHA loans. They are a complicated loan but provide an opportunity for buyers who have at least a 3.5% down payment.

Here are the details as provided by the S.F. Association of Realtors:

President Obama has signed a resolution passed last Thursday by Congress extending the current limits for Fannie Mae, Freddie Mac, and Federal Housing Administration (FHA) loans through 2010.

The conforming loan limits determine the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability.

Currently, as a result of the economic stimulus plan, the conforming loan limit is $417,000 for most areas in the U.S., but $729,750 in high-cost areas, including many in California. The loan limits were set to expire at the end of this year, and could have been lowered to $625,500 for high-cost areas. If the current loan limits had been reduced to $625,500 for high-cost areas, lenders likely would have had to adjust their loan underwriting standards to align with the new limits, to ensure the loans can be purchased or guaranteed by Fannie, Freddie and the FHA.

Higher conforming loan limits are especially critical for California, where more than 80 percent of all loans are financed by Fannie Mae, Freddie Mac or FHA, and will help maintain the positive signs we are emerging in California’s mortgage market.

While home prices in California have declined, the demand for housing has not. The market has been dominated by first-time home buyers who have faced a shortage of financing opportunities. The loan limits are set at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas, including many regions in California.

Sales in move-up and high-end markets have been constrained this year; the loan limits extension will help qualified home buyers in these markets to move forward with their purchases.

The Reverse 1031 Exchange

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Sat, 31 Oct 2009 11:46:18 -0500

This is best left for the exchange pro to explain:

In a typical 1031 Exchange, a property is sold and then replacement property is acquired. On occasion however, it may be advantageous to do the opposite; acquire property first and then sell.

Acquiring replacement property first in a 1031 Exchange presents a few difficulties. First of all, funds will need to be available for the down payment on the acquisition property (keep in mind nothing has been sold yet).

Second, the properties involved in an exchange can not be owned at the same time. In theory, an exchange is going from one property to another – so title to the new property and the old property can not be held at the same time. Luckily however, there is an option available that allows for the acquisition of the replacement property first; it’s called the Reverse Exchange.

Here’s how it works:

To properly structure a reverse exchange, an Exchange Accommodating Title Holder, or EAT (your Exchange Company), will go on title to either the property being acquired (replacement) or the property to be sold (relinquished).

If the EAT is to go on title to the replacement property, problems may arise if the investor is financing part of the acquisition costs. Many lenders balk at the idea of an EAT going on title to the property the investor is acquiring.

The lender issues can be as follows:
1.   The loan will be made to the EAT not to the Exchanger.
2.   The EAT will require the loan to be non-recourse.
3.   The EAT will require the Lender to waive its due on sale clause for transfer of the new property from the EAT to the Exchanger.
4.   The EAT will require the Lender to waive its requirement that the EAT sign any warranties or representations concerning the new property.
5.   The EAT will require the Lender to allow junior or subordinate financing on the new property.

If the lender decides not to loan on the property because of the constraints previously stated, the investor has two choices: find a new lender or structure the exchange with the EAT taking title to the relinquished property that is ultimately to be sold as a straw buyer. Challenges with the EAT acting as straw buyer include:

1.   The EAT will require cash to buy the property. The cash must come from the exchanger.
2.   The amount of cash advanced by the investor is the amount of estimated equity in the relinquished property
3.   There may be a due on sale clause on the debt of the relinquished property.
4.   A property tax re-assessment may be made at the time title transfers
5.   The exchanger may be burdened with an additional county transfer tax

Despite the complications, the reverse exchange can be a powerful tool for the investor provided they are aware of the obstacles and have plenty of time to work through the challenges.

KQED Sin, Fire & Gold: The Days of San Francisco's Barbary Coast

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Thu, 29 Oct 2009 12:00:16 -0500

So I'm very behind in my TV watching as a result of not having cable for several years. Finally broke down a few months ago and signed up with Comcast. I caught this fantastic series on KQED which has fascinating San Francisco history. Here's a snippet of Sin, Fire, & Gold. Now I need to figure out how to buy the DVD.

Proposed redesign of San Francisco school system

Cheryl Bower, Realtor, GRI, ABR (Zephyr Real Estate) — Mon, 26 Oct 2009 21:08:52 -0500

San Francisco parents are likely aware of these proposed changes. Feel free to pass along any other details that you are aware of.

More details are below as per the San Francisco Unified School District's website passed along by Zephyr staff.

SFUSD website

The proposed redesign was originally supposed to be done in time for the 2009-2010 school year apparently, which obviously didn't happen. They're then said it would be done for the 2010-2011 school year, but now the site is saying it'll launch it for the 2011-2012 school year.

There are several proposed ideas of how to redesign the system, but the one that seems to have the most traction at this point isn't neighborhood-specific (i.e. if you live in Noe Valley, you're assigned to a Noe Valley school), but rather a zoning system similar to the Berkeley School District.

Basically, what this entails is dividing the City up into Zones (Berkeley, for instance, has three zones, though many more neighborhoods) which would each be ethnically/socioeconomically diverse. You would still rank your school choices as happens now, but are given priority to the schools that are in the zone where you live in order to help minimize what often happens now where there are some kids who have a 45 minute commute to school if they live in Silver Terrace and go to school in the Marina or live in Outer Sunset and go to school in Potero. It keeps kids closer to where they live, but still provides some choice and some balance at the schools.

Which way it will ultimately go is still not finalized though.