Survey Results Are In

On Monday we sent a survey out to you, our Marin Report and Twitter followers, asking What do you think is the main reason that people hesitate to buy a home today? Here’s what you had to say.

Other responses:

“All of the above. new day, new economy. everyone is stuck.”
“Waiting for the bottom”
“Kid going to college”
“Not ready to take on a 2nd mortgage.”

Comments:

“Homes, like castles, are several fold too expensive for most people -even relatively well to do people. My first home cost me $47K, your articles discusses homes which cost 30X as much. Just too expensive relative to income and savings.” Dr. Gordon

“The loan modification programs are absolutely not happening. everyone is stuck at their present loan. we need to do a national reset of all mortgages at 4% and to present values. this is the only way to get the housing market moving. all in or all out.”

“I think the hesitation is for a number of reasons, prime example is the number of hoops people have to jump through to get a mortgage, in addition to what it takes to qualify and the lack of income on investment is also a problem. Thanks for asking!”

“Regarding the condos, I believe their HOA fees are too high and the value is less than the fee. Add to that, the ability of the HOA board to require owners to come up with exorbitant sums to pay for painting or roofing, which should have been covered by the monthly fee all along. Who is getting the money here? And who wants to add on $400-600 extra per month on top of mortgage payments? Needs more transparancy and accountability!”

“Bankers, in a rush to beat the new credit card rules have closed credit card accounts or severely lowered available credit on many customers. This has, no doubt, lowered credit scores, making it almost impossible now to qualify for a jumbo loan.”

We will discuss these items in future posts. Thanks for taking our POLL.

Cloudy With a Chance of Realtors

As the Marin real estate market continues to tighten, competition among agents for sales is becoming more intense. Sometimes it seems that they (we) are falling out of the sky like rain – or meatballs. While all agents share certain characteristics, like state licenses and business cards, the results we produce can vary significantly. After thirty years in the business in Marin County, I am happy to share a few tips to help you dodge the meatballs and choose the right agent for you.

But first, set your priorities and your goals. What do you want to get out of your real estate transaction, and by when? Get real.

-                      If you are selling, research the recent sales in your area so that you will make an educated choice in pricing. Do at least the superficial, cosmetic improvements that will make your home appeal to prospective buyers. Ask yourself, what’s more important to us, the money or the time? Do we want to hold out for our price, no matter how long it takes, or are we ready to price at the market and move on?

-                      Buying? Meet with a qualified mortgage professional and provide her with all the information she needs to get you a commitment from a credible lender. Then search the internet to get a general idea what you can buy for the money: in Marin, try www.GreatHomes.org. Ask yourself, what’s more important to us, the money or the time? Are we going to insist on stealing a home or waiting for the bottom of the market? Or are we motivated to make a fair deal and get on with our lives?

Here are some qualities you need to look for:

Market knowledge. Knows the inventory and keeps up with local trends. You want the person who represents you to have the facts at her fingertips and the skills to use them in negotiations.

Peer credibility. Marin is a small town and in this business you live or die by your reputation. Make sure that your agent is well known and respected in our local real estate community. Tag along on broker’s tour (Wed. or Thurs. mid-day) and observe how the other agents respond to your host, because his/her standing is critical to your success.

Seasoning. More than half of Marin agents were not even in the brokerage business five years ago. And while a newer agent may bring skills from another business or a youthful enthusiasm, this is their first experience with a down market. A few years ago, if they could fog a mirror they could sell homes. Today it takes deep skills learned in past recessions to produce results for you. Go with the grizzled veteran over the shiny newbie on this one.

Productivity. There are about 2,075 paid Marin members of the local multiple listing service, and in the past year only 313 have closed one or more sales (See, already our job is getting easier!) Remarkably, many agents advertise themselves as being Number One. Ignore the hype, and find an agent who actually listens to you, and asks you the e right questions to get your project moving forward. From the get go, your agent needs to deliver real value, in terms of market data and advice targeted to your needs.

Networking. Today there are two distinct markets where homes are offered for sale in Marin County.

-                      The traditional multiple listing service is available to all its members, and most of the MLS properties can be found on the internet at various aggregator sites. While you will find fairly-priced homes and realistic buyers, much of the activity here is distressed or bank-owned homes in lower price ranges, and bargain-hunting buyers tussle with stubborn owners who are living in the past. It can be difficult to sort through the clutter.

-                      Many of the choicer houses in Marin today change hands privately through a network run by the top agents (TAN). Your job is to work with an agent who has access and skills in both markets.

With more agents chasing fewer sales, I hope this helps you avoid most of the meatballs. Of course, call me direct with questions, 415.302.7787 or jmclaughlin@fhallen.com.

Buyers Race to Get $8,000 Tax Credit

· Finding the right house can take some time, so I recommend home buyers start looking for a home as soon as they are able and ready to purchase. You also should build in extra time to accommodate the lending process, which is taking approximately two weeks longer to process this year compared with last year, at least 45 days.

· The tax credit is equal to 10 percent of the purchase price, up to $8,000, subject to income limits. Single taxpayers are eligible if their modified adjusted gross income is $75,000 or less, while married taxpayers filing jointly must have a modified adjusted gross income of $150,000 or less.

· Only primary residences are eligible for the federal tax credit, including new or existing single-family homes, townhouses, condominiums, manufactured homes, custom homes, and houseboats. Vacation homes and investment properties do not qualify.

· Purchases must be arm’s-length transactions, meaning the seller cannot be the buyer’s parent, grandparent, child, grandchild or spouse.

· Married people filing as such cannot claim the credit if either spouse has owned a primary residence within the last three years. However, unmarried joint purchasers may allocate the credit in any way they see fit, as long as it does not exceed the $8,000 maximum.

· The government will allow those who finance their purchases with a federally insured loan to apply their anticipated credit immediately toward closing costs or as additional down payment, rather than waiting until they file their 2009 taxes to receive the refund.

So don’t delay, call me today and let’s get started. Cell 415.302.7787 Now. Cheers!