May 20, 2012

Bay Area Housing Market Musings (Santa Clara County Property)

Mixed news for those who are home buying

  • According to the Wall Street Journal, jumbo mortgages for those who are home buying are making a comeback. Smaller & regional lenders are issuing more new jumbo loans and also doing more refinances. This change could help bolster home buying. Depending on which area of the country (high cost or not), jumbo loan limits begin at $417,000+ and $729,750+. For the most part in our local Silicon Valley area it is the latter.
  • In other news, in a strange twist reported by SmartMoney, those who went to buy a house in 2008 who took advantage of the home buying credit may have to repay it over the next 15 years, while those who took advantage of the home buying credit in 2009 and 2010 probably won’t.
  • The moratorium on foreclosures nationwide definitely resulted in a slowing of home buying in September.
  • The home price index in August showed a .6% uptick from the previous month, though down 1.5% year over year. A mixed report for those who are home buying.
  • According to the San Francisco Chronicle,  the nation’s homeownership rate remained at its lowest in more than a decade, hampered by a rise in foreclosures and weak demand for home buying.
  • And the Los Angeles Times reported that foreclosure activity is up across most U.S. Metro housing market areas. Chicago and Seattle housing market areas shouldered the worst of the downturn.

Housing market statistics

  • In our local Silicon Valley housing market, as far as Santa Clara County property goes, there are about 3392 single family homes on the market…about a 3 1/2 month supply if no new places came on the market. This number has been rising.
  • The Consumer Confidence Index put out by TThe Conference Board, which had declined in September, slightly increased in October to 50.2 (1985=100), up from September’s reading of 48.6, the Conference Board recently reported.  Consumers’ assessment of current conditions was somewhat mixed in October.  Those claiming business conditions are “bad” decreased to 41.9 percent in October compared with 46 percent in September, while those claiming business conditions are “good” increased to 8.5 percent in October compared with 8.2 percent in September.  Consumers’ appraisal of the labor market was less favorable in October, with those claiming jobs are “hard to get” increasing to 46.1 percent from 45.8 percent and those stating jobs are “plentiful” decreasing to 3.5 percent compared with 3.8 percent in September. Very obviously, the job market directly affects the housing market and whether people are home buying or not.

Mortgage rates: Week ending 11/04/2010 30-yr. fixed: 4.24 Fees/points: 0.8% 15-yr. fixed: 3.63% Fees/points: 0.7% 1-yr. adjustable: 3.26% Fees/points: 0.7% (Source: Freddie Mac)

Housing Market Musings uses California Association of Realtor’s CAR Newsline and Market Matters for compilation, as well as various other news publications & housing market statistics from Chris Alston, managing CEO at Keller Williams Cupertino.

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Home selling? Find out your home value & start the consulting process for getting your house ready to sell by clicking My Home Value in the top navigation.

Getting ready to buy a house? Use our Santa Clara County property search tool to create & save your home buying search.

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Differences between a Short Sale and an REO (bank owned properties)

Our real estate clients who are getting ready to buy a house often ask us “What is a Short Sale” and “What is the Short Sale Process”? So, we thought we would distill it down to a manageable, understandable answer for them & for anyone who is researching online the vast subject of how to buy a short sale.

Short Sale Homes

The easiest way for me to describe it is under the umbrella of foreclosure properties. A Short Sale is a property that is in pre-foreclosure. Often, a foreclosure notice of default has not even been served, but the homeowner is starting to feel the squeeze and asks themselves “Should I sell my house?” (or should they try to keep it & struggle to make their payments). Sometimes  the owner has received a notice of default & knows the writing is on the wall and they need to start the home selling process. In either case, it is called a Short Sale because the owner is underwater on the home and would actually have to come to the closing table with money in order to sell it (they are “short” the money to be able to sell it). In these cases, the Short Sale process is essentially an attempt to get the bank/lender who holds the loan or loans to approve the short sale & to forgive the amount that it is short. You can imagine that the red tape is enormous & have probably also figured out that any given short sale is not a slam dunk. Think of it as an attempt for selling a house. A Short Sale can take anywhere from 4 months to 18 months to go through — it is not for the faint of heart when getting ready to buy a house. That said, those who want to buy a house can obtain an extreme bargain typically by purchasing a short sale. Just involves a little patience.

Foreclosure properties

An actual foreclosure is when the trustee sale date has been served to the owner & the property is auctioned at the county courthouse. Typically these properties are bought by seasoned investors who have cash or are using hard money loans. You must have cash equivalent to buy a house in this fashion. When the property doesn’t sell, it reverts back to the bank/lender as the owner…which leads us to the definition of an REO (bank owned properties).

REO/Bank owned properties

An REO (bank owned properties) is essentially post-foreclosure property. The owner no longer lives in the home & the property didn’t sell at auction. An REO sale doesn’t take much longer to go through than a traditional sale (about 30-60 days’ closing) — in the case of an REO the bank/lender is the owner rather than an individual or trust.

Both a short sale and an REO represent an amazing opportunity for getting a bargain when home buying. Usually what you’ll find in either case is a fixer. Our clients who are getting ready to buy a house often consult with us about how they can buy a fixer and then have us help them get it move-in ready after closing. One client gave us a $9,000 budget and he was able to move into a turnkey condition condo (previously an REO) only 5 weeks later. The purchase price plus the $9000 was far less than him buying a traditional turnkey home on the market.

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Request a list of short sale properties and REO (bank owned properties) on the housing market.

Create and save your own search for active Santa Clara county properties.

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VIDEO: Why This Silicon Valley Realtor Team Loves…Woodside CA

Yummy Goods from Woodside Bakery

These tasty-looking pastries are from Woodside Bakery & Cafe in Woodside CA.

The Look Team loves Silicon Valley & Woodside CA

Woodside CA is probably not the first village that comes to mind when you think of Silicon Valley, yet many brainchild techie businesses had their origin, or near origin, there. This sleepy, hilly town sits just off Hwy 280 almost adjacent to Redwood City CA. It’s famous for Buck’s Restaurant – where venture capitalists have met for breakfast with fledgling software and hardware entrepreneurs for decades to seal deals. For slightly lighter fare, one of my favorite everyday places to eat in Woodside CA is the Woodside Bakery & Café & sitting outside is an absolute must (see video). The warm bread and olive oil is only made better by the wild salmon & potato salad that I typically order. Their baked goods are incredible as well. In the same parking lot is an idyllic garden & home décor store called Emily Joubert if you’re looking for a place to splurge or to get inspired for your next remodeling construction project (again, see video). And across the street sits Robert’s Market, an upscale grocery store with organic & artisan fare. And the last place I’ll tout (although there are many more facets to Woodside CA than what I’ve mentioned) is the Village Pub. The name doesn’t reflect its upscale stature – but this high end restaurant is divine. Its chef has won many prestigious awards nationwide and whether you sit at the bar and eat or in the restaurant, it’s all good. You can get anything from fries served in a pewter cone, to beet & goat cheese salad, to butter poached lobster. And they are famous for their housemade charcuterie (cured meats). Woodside CA is a wonderful place to relax & explore on a dapply sunlit day.

If you’re looking to buy a house in Woodside CA or any nearby Silicon Valley community, click here to search Silicon Valley property.

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7 Eco Tips for Remodeling Construction & Getting Your House Ready to Sell–Home Selling the Green Way

Eco-Friendly, Green Kitchen

This kitchen was remodeled with eco concerns in mind. All appliances were energy star. Other choices included an induction cooktop, keeping the existing cabinets but adding new doors & no-VOC paint.

Getting your house ready to sell the green way

Those ready to buy a house are increasingly concerned about green features in a home & the desire for more eco features will continue to grow in coming years–while those in the home selling process have different concerns. In either case, if you’re considering any remodeling construction to your property, it’s in your best interest to go as green as possible. If you’re not selling a house any time soon, it will still boost your future resale. And, if you are getting your house ready to sell, it can be a huge home selling marketing strategy.

7 Eco remodeling construction tips for home selling & general use

Here are 7 simple eco-savvy changes to implement into your upcoming remodeling construction. For the most part, they are budget-conscious too:

  1. You’ve heard the hype about CFL’s (fluorescent lightbulbs). We all know we need to replace all our incandescent with them. But what about their hideous appearance? Especially the cheap corkscrew type? One worthwhile option is to have a contractor switch out the actual light fixtures to ones that will accommodate and hide the CFL’s. For example, in the bathroom, choose a light bar where the glass bells face upward instead of down. Conversely, if you choose bells that face down, you can buy the more expensive CFL’s that look like regular incandescents. Most flush mount overhead lights will hide CFL’s. Chandeliers also often have glass bells that point downward – instead, choose the upward type. Also, in the case of chandeliers, make sure to choose larger glass bells, with frosted glass. Take a look at all the varieties of CFL’s available at one of the big box hardware stores – for example, you can buy a shorter, compact corkscrew type CFL that might fit some chandeliers better than the standard size.
  2. Paint is one of the easiest ways to go green. In one fell swoop, you can make a choice to reduce or nearly eliminate Volatile Organic Compounds (VOC’s) from the air of your home. Three examples of NO-VOC paint are Olympic (sold at Lowe’s), Fresh Aire (sold at Home Depot), and Green Cote/Enviro Cote sold at Kelly Moore. With these paints being easily accessible and in myriad colors, there is no reason not to use them & you can discuss this with a contractor. Again, if you’re getting your house ready to sell and you paint with no-VOC’s, you can use this as a stellar feature on all of your home selling marketing collateral.

    Dream kitchen in San Jose house, Willow Glen

    Kitchen using reclaimed cabinets, zero-VOC paint & energy star appliances

  3. Flooring for bathrooms has been a thorn in the side of eco-remodelers, but there are some interesting choices. My favorite is Marmoleum, which is made of all natural materials like linseed, among others & is completely sustainable and renewable. It comes in a plethora of designs, colors and textures, but is not, alas, inexpensive. You’re looking at around $20 a square foot. A more budget-friendly but slightly less eco idea is to go with a floor that has some post-consumer content (e.g. Tarkett) which also affords many style options—this would be about half the cost of the Marmoleum. These floors can also be used in kitchens and other areas of the home. Cork flooring is a great, sustainable choice as well, though not suitable for bathrooms. A great store in the Silicon Valley for looking at what is available is Interiors and Textiles in Palo Alto CA. If you’re getting ready to buy a house, it may make sense to spend a bit more & think long term about what you really want to have. Conversely, if you’re selling a house or getting ready to sell your house — you’ll definitely want to keep budget in mind since often higher end materials don’t bring proportionate returns.
  4. Speaking of flooring, carpet has historically not made it onto the eco radar until recent years. There are two types that I know of – those made of plastic bottles and those made from corn. The latter is Smart Strand, which is a carpet technology that is used by many of the major brands. Smart Strand carpets are typically recyclable and have the information of the plant where they are to be re-purposed stamped on the back. Eco-friendly carpet pads are also available. These are easy choices to make, and are only pennies more than traditional products. Again, a huge resale point for home selling.
  5. Almost every green-related article you read will tell you to buy Energy Star appliances. This article is no exception. Check each appliance’s Energy Star rating as well, to try to get the best rated one for the buck. In addition, if you’ve never heard of induction cook-tops, it’s worth a bit of research and self-education. You can view them on websites like AJMadison.com. The general gist of induction is that the burner reacts with the metal on the bottom of your pan (glass and copper pots will not work). Because if is not pumping out as much electricity, it is a greener choice than other cook-top options. They are not cheap, but the energy savings monthly may make sense if you plan on living in your home long term. And when home selling, it’s a great feature for the future-conscious.
  6. One of the most earth-friendly decisions you can make in any remodeling construction project is to keep what you already have. Essentially, this is reducing, reusing, and recycling all in one. When you are evaluating a kitchen or bath remodel, think about whether you could possibly keep the existing cabinets. You or a contractor can paint the cabinet boxes with no-VOC paint and either reface with new doors to match (the doors can be painted with the same paint whether they are the original doors or new ones). Often, older cabinets do not have the convenient features of newer types, such as pull out drawers and organizer shelves. However, you can buy these separately at websites like KitchenShelves.com. Staying with what you have as much as possible is one key way to save money when home selling, and when you’re working on remodeling construction or staging.
  7. The grocery store’s question of “paper or plastic” takes on new meaning when you think about how to handle the trash situation in your kitchen. One of my favorite things to do is to arrange organizers under the sink that accommodate both. A contractor can install them or you can do it yourself. Think of how many plastic bags you get from stores you frequent. Even if you carry your own eco bags with you, the chances of accumulating plastic ones is still high. The same goes with the paper type—you will probably bring a few home with you from time to time. There is no need to buy actual trash bags in light of this. Instead, buy the trash pull-out organizer that accommodates paper grocery bags and install it under your sink. Similarly, buy the type that will take the plastic shopping bags for installing on the back of the door of your under-sink cabinet.

Our Silicon Valley realtor team even helps people who are not currently selling a house or getting ready to buy a house. Primarily in those cases, we provide a contractor list of recommendations. In all instances, we recommend going as green as possible with any new remodeling construction efforts.

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Home selling? Find out your home value & start the consulting process for getting your house ready to sell by clicking My Home Value in the top navigation. Or, if you are interested in a complimentary 30-Minute Consult on getting your home ready to sell, call Kelsey Lane today to set a time: 408-316-0660, kelsey@kelseylane.com.

Getting ready to buy a house? Use our Santa Clara County property search tool to create & save your search.

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A to Z Construction Contractors and Service Providers: N: Pero Nenada, Dalmation Tile

Recommendation of a contractor for tile & remodeling construction projects

About 6 years ago I was making demi glace with some friends (a 2 day process that involved 25 pounds of veal bones) and we ended up scorching our formica backsplash. Rather than having the counters completely replaced, we ended up being referred to a contractor who specializes in tile who came in and worked artistic wonders. This contractor was Pero Nenada from Dalmation Tile. He installed mosaic tile over the formica and it looked absolutely beautiful. Even better than just the formica backsplash by itself.

After that point, I started referring Pero out to friends and real estate clients who were in the home buying process–one couple ended up buying a fixer and he helped them. He has a very artistic and creative side to his tile work. Also, he can do entire bathroom remodeling construction & has done so for several happy clients. In the last property that I bought personally (a house in San Jose), he did the kitchen backsplash tile, including a beautiful green onyx feature strip along with white subway tile. He also coordinated the granite installation. Everything went off without a hitch, quickly, and for a fair price.

Pero Nenada’s contact information is (408) 930-4850.

While on the subject of tile, my favorite place to look and get ideas is All Natural Stone in San Jose CA. It is a gorgeous showroom with every type of tile you can imagine, along with granite slabs, recycled glass countertops, etc. Even if you buy your tile from somewhere else, it’s worth a stop here first to get remodeling construction ideas. And, if something you see seems to expensive, ask the staff there what the alternatives are — I inquired about a tile that was $20 a square foot and they were able to sell me a similar product for $7 a square foot that was not a well known brand. The information for All Natural Stone is as follows: 2504 Seaboard Ave, San Jose, CA 95131, 408-544-9600, www.allnaturalstone.com.

For whatever remodeling project you need to find a contractor for, we are willing to pass along our recommendations for the Silicon Valley and San Jose CA areas. Any time you or a friend needs a contractor, either comment on this post or shoot us an email/call.

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Need to find a contractor for a remodeling construction project? Get a contractor list of recommendations from The Listing Look (Silicon Valley realtor professionals) by clicking “Find a Contractor” in the top navigation. Also if you are in need of help in the real estate market, click here: Home Buying; Home Selling.

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