In the mind of a buyer...

There was a great house on tour today: 748 Elm in El Cerrito. 6 bedrooms, 3 baths, partially updated, nice neighborhood, 2100+ square feet, $645,000.

So WHY is it still on the market?

It has been on for quite some time and has seen numerous price reductions. I spoke with the agent today to get a glimpse into what he was seeing, or wasn't.

He has had two buyers interested, but as soon as they saw the disclosures decided that the $15,000 of foundation work needed wasn't worth their time. They both felt this way. I am sorry, but $15,000 in foundation work is nothing, especially when the tradeoff is a 6 bedroom home!

So what are buyers looking for in today's market? One buyer I spoke to said that he is looking for a deal, something that doesn't need work, and something in a good neighborhood.

Aren't we all?

I think what it is really coming down to is that buyer's are waiting for the "bottom" to happen. I so wish I had a crystal ball and could tell you when that will be. Unfortunately the only way to know is when we start heading back up.

There are some really great deals out there now. Rates are the lowest they have been in 4 years and inventory is high. And just because it needs some work doesn't mean it isn't a good deal.

Welcome back

After returning to work from a nice, long holiday vacation, what do I see in the headlines?

1. "Feeling Misled on Home Price, Buyers Sue Agent."
2. "Foreclosures are up by 67.8% nationwide."
3. "World Braces for Subprime Fallout."
4. "Hold on for a Recession."

Wow, this is depressing. No wonder the housing market is in trouble. Look at what the media is doing to it.

This is what my client sees first...the headlines. Most of my clients are internet saavy and begin a lot of their research online and can't help but see the headlines. What is my response? Don't believe everything that you read. Sure, there is truth to a lot of it, but if the media didn't make it "interesting," then no one would read the papers anymore.

For me, this opens the door for conversation.

Our market is still a unique one, a "boutique" market if you will. I am still seeing multiple offers out there. Sure, they are no longer a dime-a-dozen, but they are there. In fact, one client just lost out on a house in the Temescal to 4 other offers...and she was all cash and over the asking price.

So go ahead and read those headlines, but remember that the media is also a business, and without intriguing headlines to get people to pick up the paper, they would have no business.

Conforming loan limits remain the same- gee thanks

The good ol' folks in DC announced today that the maximum 2008 conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac (the all-mighty Enterprises) will remain at the 2007 level of $417,000 for one-unit properties for most of the U.S.

Higher limits apply to Alaska, Hawaii, Guam and the U.S. Virgin Islands as well as to properties with more than one unit.

Helloooooo people over there...with median home prices in the Bay Area running in the mid 6's, that won't help much. You can barely even find a condo here for $417,000! Yes, prices are falling in general, but not everywhere.

Here is the good news: In October, powers that be (Office of Federal Housing Enterprise Oversight) said it would leave the conforming loan limit at $417,000 in 2008, no matter how drastically prices declined in 2007. But if cumulative home-price declines in 2006, 2007 and 2008 exceeded 3 percent, the limit would be adjusted accordingly in 2009, OFHEO proposed. In addition, a bill approved by the House in May, HR 1427, would allow Fannie and Freddie to securitize loans up to $625,000 in areas where the median home price exceeds the conforming loan limit.

Is this really good news? Let's listen to the market and see.

Childproof your home in minutes!

So my daughter is becoming mobile. I got down on all fours, which, coincidently is right at her level, and went exploring through my house. Oh the things that I saw. Oh man, we are in for it.

As I am taking her around to other people's homes I am realizing how unsafe many homes are for the tots in our lives. The holidays are upon us...is your home safe for all of the new additions to the family?

I recently had the pleasure of meeting Mark Altman, founder and owner of The Childproofer, a company which specializes in creating safer spaces for kids. I met Mark at the home of one of his clients and was able to see firsthand how important it is to make sure your home is safe.

Click the following link to hear a few things Mark has to say:

And be sure to check out www.calpoison.org/public/plants.html to see if you are housing any poisonous plants in your home.

Be safe and happy holidays.

My new assistant

"Are you looking to buy or sell a house? Then talk to my Mommy." ~Melia

Ok, so I haven't been blogging lately. Why? do you ask? Well...many of you know, but some don't, that I had a baby girl in June. Yup. I have added an adorable little assistant to my team. Her name is Melia. She is a superstar and the best sidekick a mom could ask for. She comes with me everywhere: on tour, to show property, and she has even been to several signings since being born!

Please help me in welcoming Melia to the world of juicy real estate.