Can Everybody Take a Deep Breath? Please?

The venerable NYT made it official yesterday – this is the worst real estate market since the Great Flood. Sales are spiraling down, prices are cratering nationwide. Can another recession dip be far off? Yahoo echoes the vibe today, and if you really want to get a look at the dark inner workings of the American mind, scroll down to the accompanying comments. All 45,000 of them, as of this writing. Yeck!

We don’t know where they get their numbers, but let’s assume that they’re accurate for the U.S. as a whole. But wait! Last time we looked, real estate was still a local business. This is not Tampa or Las Vegas, after all. Or is it?

We checked the MLS, our private site where brokers share all listing and sales data, and compared Marin sales year on year for July. Included are all condo and single-family home sales above $50k, to avoid getting rental data. Results below.

Compared: July ’09 and July ’10

We’ve actually sold a few more homes, for about nine percent more than July a year ago. While these numbers are far lower than the high flying days of 2006, say, we think they reflect a more or less normal market. Healthy, even. And in July this year, 25% sold in the first 30 days they were listed, as compared to 15% in July of ’09, indicating stronger demand coupled with more realistic pricing.

And remember, buyers rushed to close escrow before june 30 to take advantage of the Federal Tax Credit, so homes that normally would have closed in July were squeezed into June.

If you want specific information about your home or neighborhood, give me a shout. And don’t believe everything you see in the news.

Marin Kids Applying to College? Send to Admissions via YouTube.

Guest blog by Guru of New Tufts goes YouTube; invites prospective students to submit video applications Posted: 15 Mar 2010 12:24 PM PDT We’ve all heard the sorry stories of the drunken student whose photo-tagged Facebook picture gets discovered by either a prospective employer or an admissions officer at the college of her dreams. And these aren’t just snopes-worthy urban legends. According to a NACAC press release on the report, one-fourth of colleges surveyed indicated that they used a Web search or social networking technology to locate information about prospective students. Which is why what topnotch school Tufts did is not only incredibly refreshing but game-changing as well. For the first time this year, Tufts University in Medford, Mass., invited aspiring students to submit short YouTube videos to supplement their applications. According to a report in the New York Times, about 1,000 of the 15,000 applicants did so. The results range from gutsy (convincing the school that admitting a proficient Raver is a swell idea) to adorable (Paulo Nutini’s “New Shoes” meet Hillary) to heartwrenchingly authentic and uber-sincere. Some of the videos have developed a YouTube following. Amelia Downs’ Math Dance video, which has almost 57,000 views, blends “two of my favorite things: being a nerd and dancing.” In the perky video,she performs a bar graph, a scatter plot, a pie chart, and a sine and cosine graph: Hello Tufts Admission person! This movie shows me performing my math dances! The dances shown are: Volume of a solid of revolution (y-axis) Line graph Scatter plot Box and whisker plot Pie graph.. Click here to browse the sample videos. (No word yet on which of these brave and creative videographers made the cut. And they still have to complete the traditional essay.)

Don’t miss this: Take $6,500 to $8,000 off your Federal income tax

First time homebuyer? Trading up? Uncle Sam is here to help. Seriously.

You can reduce your taxes by buying a house this year. But you better hurry. First-time homebuyers who qualify can subtract up to $8,000 from their income tax, and homeowners who buy another residence can cut their taxes by up to $6,500. The Worker, Homeownership, and Business Assistance Act of 2009 has established these tax credits, which have been extended until June 30, 2010.

Generally, if you’ve lived in and owned your current residence for at least five consecutive years and you choose to buy another residence you can take up to $6,500 off your taxes. Likewise, if you haven’t owned your own home before you can deduct as much as $8,000. And if you don’t owe that much in taxes, the government will send you a check for the difference. But you need to hurry, because in order to qualify, you must be in contract by April 30, and close no later than June 30. And, yes, you can use the credit as part of your downpayment. There are maximum limits on the price of the homes, and other qualifying criteria, but most Marin homes sold today will qualify.

Call me at 415.302.7787 or mail me at jmclaughlin@fhallen.com for more information, or Go here. Cheers! Jack

Home Buyers Tax Credit Extended, Expanded

More good news for Marin consumers and the housing market recovery. Following the Senate’s favorable vote yesterday, the U.S. House of Representatives just voted 403 to 12 to extend the home buyer tax credit, expanding the parameters to include existing homeowners and not just first-time buyers.  We expect President Obama to sign the legislation in short order.

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Call me for further information, 415.300.0432. Cheers! Jack

Shyster Loan Attorneys Probed by State Bar

The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications.  In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection.  These attorneys have allegedly taken fees from Marin County home owners for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes.  Their non-attorney staff may also be under investigation for unlawfully practicing law.

There is no indication that the CA Department of Real Estate has taken any interest in investigating this issue.

Not all attorneys engaged in loan modifications are unscrupulous.  However, this announcement from the State Bar serves as a good reminder for property owners to be extremely careful when dealing with attorneys and others for loan modifications.  Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes.  For more information contact Jack at 415.302.7787 or jmclaughlin@fhallen.com. The list of attorneys currently under investigation is available at http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.

Source: CA Association of Realtors

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.

You Want it When?September 15, 2009 by Jack McLaughlin

We have surrounded ourselves with gadgets, all with essentially one purpose – to collapse the amount of time it takes for us to get critical information. The Internet is the perfect delivery medium, and the goal is to get what you need, be it text, video or photos, in the precise moment when events are unfolding. You can track airline flights, stocks, satellite images and traffic, all in real time. Despite government efforts, the Iran revolution was blogged to the world in real time, using the micro blog site Twitter.

But what if you want current information on the Marin County real estate market? That’s where I come in, your RealTime Realtor. Every Wednesday and Thursday in Marin, new listings are open for brokers only, before they are available to the public. I visit the most intriguing of these homes, take a photo or two, rate the home and instantly post it to my Twitter site. My ratings and comments are candid and honest. If a home is a deal, I’ll tell you, and if it’s a dud, you’ll know that, too.

You can call me or text me for more information, and I will wait at the home if you want to see it right away. Looking in a particular town and price range? Tell me in advance and I will send you photos and data from homes that will interest you, all in RealTime. And of course, like all the best Internet services, it is absolutely free.

How do you subscribe? If you don’t already belong, take a minute to join Twitter (free) then search for MarinBroker and click on “follow”. For best results, turn ON “Device Updates”, put in your mobile number, and you will get my posts on your cell phone or other device. Do it now to get your Marin real estate data from your RealTime Realtor!

What to Do If Your Mortgage is Sold to Another Investor

Approximately half of all mortgage loans are sold from one lender to another, often because the original lender is not equipped to collect payments, manage escrow accounts, pay taxes and insurance, respond to questions, and prepare payoff statements when the home is sold or refinanced.  Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years.

In the mortgage-industry, this is called a “transfer of servicing,” and is a common practice.  Borrowers should not be concerned about these changes, as the majority of lenders transfer their servicing rights to loans.  Generally, the selling of a mortgage loan from one lender to another is a smooth transition and does not impact the borrower.  Every so often though, there is a misstep by either the loan buyer or the loan seller.

Under the National Affordable Housing Act, when a mortgage loan is sold, the borrower is required to receive a “goodbye” letter from their current servicers at least 15 days before their next payment is due.  The letter must state the name, address, and telephone number of the new servicer; the date the old company will stop collecting payments; and the date the new company will start accepting them.  Under the Helping Families Save Their Homes Act, signed by President Obama on May 20, the new owner of the loan—which may or may not be the servicer—also must notify the borrower of the transfer within 30 days, known as the “hello” letter.

The “hello” letter should outline the same information as the “goodbye” letter sent from the former loan servicing company.  Borrowers should be cautious if they receive a “hello” letter without receiving a “goodbye” letter, as they may be the intended victim of a scam by someone who is hoping to unlawfully receive the monthly mortgage payments.  Concerned borrowers should contact their current loan servicer to verify if their loan has been transferred.  If it hasn’t, authorities should be notified immediately.

In most cases, a mortgage payment sent to the old servicer automatically will be forwarded to the new servicer for a brief amount of time, typically 60 days.  However, if payments are not sent to the correct servicer, they could become lost, and the homeowner may incur late fees.

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!

How Tiburon Maintains Property Values

What adds value to your home more than knowing you are safe from the burgling and home-invading hordes? Sure, you can set the alarm, and even keep a firearm handy. But is that enough? Tiburon police say No!

Main Street

Mainly know for their hyper-vigilant and revenue-enhancing DUI patrols of Tiburon Boulevard – eschew that extra glass of wine with dinner at the club, or else! – the Tiburon police want to set Crime Cams to record the license plates of vehicles coming from the outside world.

“It’s a simple fact that most of the crime that is committed on the peninsula is from people out of the area,” said Chief Cronin in yesterday’s IJ.

Hey, chief, how about let’s put a Yacht Cam in Racoon Straits to snare the investment bankers and financiers who crashed the financial markets? Then we’d really feel safer.