Pacita's Quick Bytes of Real Estate: December 2008

Here's a snapshot of what's going on in Alameda CA as of this post.

Ahhhh-lameda --- a Historic and Picturesque Island on San Francisco Bay

ACTIVE AND PENDING SALES

• 117 homes actively for sale
• There 43 pending
  • 11 pending properties are subject to lender approval (short sales or 7% of total active and pending properties)
• 33 are condos (20% of total)
• 17 are townhouses
• 4 are duets
• 111 are detached single family homes (69% of total

Averages

Active listings

• 79 days on the market
• $625,714 list price
• $384/sq ft

Pending

• 63 days on the market
• $508,230
• $367/sq ft

One may surmise that a lower $ cost per square foot may lead to shorter time on the market

REOS AND SHORT SALES

There are 48 REOS and short sales, or 30% of total active and pending homes for sale

• 19 REOs or 12% of total (wow!). Here are the averages:
  • 39 days on the market
  • $539,914 list price
  • $328/sq ft
• 29 Short Sales or 18% of total (another wow!) Here are the averages:
  • 64 days on the market
  • $496,333
  • $400/sq ft

One may surmise, again, that the lower cost per sq ft may lead to shorter time on the market, even though the REO average price is higher than the Short Sale average price

SEWER LATERAL  hardly a topic one wants to discuss, but a very important consideration and negotiation item (and could be pricey) when buying/selling real estate in Alameda CA.

I didn't know anything about, and still have limited knowledge of what a sewer lateral is, until I moved to Alameda CA.

• Here, prior to sale, properties over 25 years old must have the sewer lateral tested for infiltration.
• If it passes the test, it is certified for 5 years and need not be tested if it is re-sold during that period
• If it fails, it must be repaired or replaced, and then re-tested
• Replaced laterals are certified for 25 years

Whenever I show or list properties in Alameda, I have to explain to my clients that we have specific requirements pertaining to sewer lateral and gas cut off valve. Invariably, they ask, what is a sewer lateral?  

WHAT IS A SEWER LATERAL?

I searched for information explaining what a sewer lateral is, and the best FAQ I found is from Lake County CA's website about Sewer Lateral Cleanout.l Wish our own City of Alameda had this type of info on their website; but I'll settle for this one.

Lake County even provided a graphic explaining who's responsible for what.

 

WHO'S RESPONSIBLE?

Alameda Sun, a local newspaper, featured an article on "Who's Responsible?" where a homeowner was given a bid of $7000 to replace/repair a sewer lateral. When the homeowner contacted the City of Alameda, she was told that this portion of the repair is actually the City's responsibility.

In this case, a city tree's roots were found to be the cause of the damage to the lateral. According to Tim Higares, code enforcement officer for the city, if a city tree or something the city has done has caused damage to a sewer lateral, the city will do the repair.

In Alameda, there are specific testing procedures and requirements. We also have a Local Ordinance disclosure

So if someone asks me about sewer lateral, I will have this info handy!

 

Went out this morning to get my paper, and saw --- gasp! ---- fog? In Alameda?

So I hurried and took this picture, using my iPhone. Since fog is such a rarity in our island town, I thought I'd register it for posterity. I had visions of getting all warm and toasty in layers of woolen sweaters and scarves.

Then I went back inside, went online to Active Rain, made a few comments. Looked out the window, and voila! Less than 30 minutes later, the fog is gone! That didn't last long.

So I guess we can still claim that we live in SUNNY Alameda

Postscript: I should have taken a few more steps down the stairs so that the wires wouldn't show in these pictures --- but I was so excited to see the fog that I was in a foggy state myself. :)

This is taken of littleJohn Park across from where I live on Pacific Avenue.

 

 

One of my favorite Christmas songs is Eartha Kitt's "Santa, Baby". It's just so amusing and entertaining. When she died at age 81 this Christmas Day, it seemed to me that Christmas just won't be the same without Eartha Kitt's earthy "Santa, Baby" Here she is in 2006 when she was 79 years old




And here she is back then, way back then?




And in her honor, here are the lyrics so that you can sing along. Warning: volume for this clip is much louder than the previous two youtube clips

There is a listing in Alameda CA that has got us shaking our heads.

It's a short sale listing for a ranch style home, 3 bedrooms/2 baths, and steps to the beach. It's listed at $499K. However, the confidential remarks says that the loan "negotiator countered at$594K and needs an offer ASAP."

The listing agent who is from out of the area, was asked why she didn't simply list the price at what the lender wants to cut to the chase. She responded that they do this all the time in Hayward to stimulate interest and get people to show it.

Then she off-handedly says, "This is Alameda, for God's sake. It's not like it's Stockton!"

There are three offers on the table, all above the list price of $499K, but way under what the lender will approve. These offers are going nowhere.

If you already know what the short sale lender will approve, doesn't it make sense to list the property at THAT price so prospective buyers and their agents know what it will take to get the offer accepted?

Sometimes, underpricing will work to stimulate interest and increase the number of showings. And it may even result in multiple offers. But if a willing and able buyer comes along, offers full price with no contingencies, you'd better be prepared to sell it at the advertised list price.

This property last sold for $693K in October 2006, and listed as a short sale in April 2008 for $599K. So foreclosure is looming.

 

As much as I love my iPhone, there are some things I miss about my other phones. Or maybe I just haven't found the right applications to download.

What I don't like and my biggest beef about the iphone: Camera Limitations such as NO video camera application --- But a search on the internet located these two sources that says yes, you can!

• Turn your iPhone into Video Camera with Cycorder where the blogger, Simon Ng says "Who said iPhone cannot does video? A number of review for iPhone mentioned that iPhone could not record video. The statement may be true for AT&T iPhone or iPhone from other official carriers. But if you already jailbreak it through WinPwn or Pwnage Tool and upgrade to firmware 1.1.4/2.0, your iPhone is no longer limited to photo taking. The release of iPhone Video Recorder in late Apr can already turn your iPhone into a video camera. However, it's not a free application. Thanks for Cydia's creator, Jay Freeman. He developed another application called Cycorder to power iPhone's camera to take video shot. The application was released a couple days ago through Cydia. And the big thing is that it's *free*. "

 

• iPhone App Allows Its Camera to Record Video. Richard Menta writes "The latest black market iPhone application is called Drunknbass and it turns the iPhone still camera into a video camera. Created by Monsters and Friends the application recognizes the fact that while the iPhone's 2.0 megapixel camera resolution may be mediocre for a still camera, it is excellent resolution for a consumer video camera. For example the $350 Canon DC210 digital camcorder uses as 680K pixel sensor chip (because a standard NTSC TV's resolution is only 525 scan lines horizontal), while the Canon's HD camcorder the $1,000 HV20 uses a 2.9 megapixel sensor. Even though the iPhone's display is not HD, a recorded file can be ported to Apple TV, which does handle HD.
  

Until I can figure it out, or until I am brave enough to try these other applications, I miss not having:

• A video camera built into my phone
• Not having a flash
• Not being able to choose between a high and low resolution

In spite of it all, I still love my iPhone, and am excited and fascinated about the hundreds of applications that are available!

My favorite resource is iPhone matters, as I mentioned in my other post: iPhone under the Christmas tree? Here's a great resource for applications, etc. See iPhone Matters.

The locals know it but perhaps we wanted to keep it a secret so that it won't be so doggoned busy as Alameda's famed Ole's where on weekends, lines of waiting diners could snake around the corner of the block.

One day, while showing houses, I got so hungry that I invited my willing clients to have a quick bite before we look at more houses.

MARTI'S PLACE

Instead of taking them to a fancy restaurant, I took them to Marti's Place. Their regular menu is augmented by specials that they post on a large blackboard.

Although both were on the Weight Watchers program, they each found something they liked, and enjoyed. She had a bowl of soup (gumbo) and a salad. He, a salmon omelet. I was struggled with deciding between the Swedish pancakes or the healthier spinach omelet. In sympathy with my Weight-Watching clients, I opted for the spinach omelet.

Gosh, did we have a really good meal. Everything was so fresh, so tasty, and cooked to perfection according to our special instructions (I like my omelets a bit soft, almost runny).

So if you're in the area, and would like a really good meal --- breakfast, brunch or lunch --- drop by Marti's Place, 1905 1/2 Encinal, Alameda. And here's what Yelp reviewers have to say.

 

Every single realtor I know, without exception, did not grow up thinking, hoping and planning to be a realtor.

In my office alone, we have folks who started out in other professions, or other lives as:

• Telecommunications executive (me)
• High tech consultants
• Finance (bankers)
• Professional football player (yes, we do have one)
• Building contractor
• Housewife
• Clothing merchandiser
• Nurse
• Teacher
• Biking Messenger
• Caterer
• Electrician/journeyman
• Personnel manager

What drove each one of us to be realtors? And is it paying off?

In my case, even as a kid, I was fascinated with houses. I thought I'd be an architect --- but being mathermatically challenged, I opted to be in marketing instead. As a grown-up, I loved going to open houses and Parade of Homes. I should have listened to my inner voices, and should have been in real estate sooner. I have found my bliss!

Isn't it strange...at the height of the market, we were constantly scrambling to find contractors for various projects to fix, upgrade, renovate, remodel our properties.

Now that sales of homes have slowed down, more people are hanging tight, and are tackling those oft-postponed projects. And surprise! According to Money Magazine, materials costs are plunging, and contractors are begging for work. See "Renovations on Sale". 

Reasons: costs are dropping --- on everhything from building materials to contractor fees as the economy weakens and housing prices stumble.  Harvard's Joint Center for Housing Studies say that consumer spending on home improvements is off by 12% since peaking last year.

You can expect to save at least 10% on the cost of renovation, depending on where you live.

According to this article, here are five projects that just got cheaper:

1. Replace the roof
2. Replace the driveway
3. Upgrade the vinyl siding
4. Add a deck
5. Replace or add insuation

The three Do's and one Don't:

1. Do get detailed bids from at least three remodelers
2. Do let each contractor kow up-front that you are comparison shopping to find the best deal
3. Do ask them to match, or better yet, beat your best offer
   
4. DON'T accept a discount for paying in cash -- you will have no proof of having made that payment if something goes wrong.

And here's my own advice: whatever you do, make sure you get a permit!

This is good news for me since I have a few things I need done to my duplex too: adding a deck at the top floor, thus creating a covered patio for the lower floor; upgrading the kitchen (put in a new floor, repaint the cabinets, buy new appliances), repainting the house. Uhmmmm... yeah, right.

 

IPHONATICS --- THIS IS FOR US!

There's a really good blog called iPhone Matters. And the latest is about five free applications to get you started

One that intrigued me, and which I heard about but didn't know for sure if it's true, is Shazam - hear a song you'd like to  know more about. Turn on Shazam for a few seconds via the microphone on your iPhone and Shazam will tell you what song you're hearing.

And how about Light --- Turns iPhone screen to a flashlight. Can come in handy at night when trying to put your key into the lock and you can't see it.

And a must have: Google Mobile. Tell your iPhone what you're looking for. Seconds later you'll have amazingly accurate results.

I also heard about a Breathalyzer application --- but I think I'll skip that one.

Here are the various categories ot topics --- really helpful, fascinating, mind-boggling!

Categories
Accessories
Advertising
Analyst
Analysis
Android
Announcements
Apple
Apple Matters
Applications
AT&T
Bold
Business
Chris Howard
Cisco
Competition
Concept
Contest
Deals
Design
Development
Downloads
Doubtful
DRM
eBay Auctions
flash
Hardware
Features
Third-party add-ons
Patents
Gaming
Google
Hacks
Cult of iPhone
News
Reviews
Opinions
interview
Intel
iPhone Killer
iTunes
James Stoup
Jobs at Apple
Linux
Lists
Interviews
liveblogging
Macworld
Legal
Marketing
Microsoft
Motorola
Netbook
mouthbreather
Music
Nokia
O2
Hacks
OSX Mobile
Mods
Pictures
Podcasts
Poll
Problems
Recall
Retail
Cases
reviews
Ringtones
Rumor
Safari
Scoop
SDK
Software
Specs
Storm
T-Mobile
Videos
Tips
Touchscreen
Tutorials
update
Verizon
Humor
Wal Mart
Wallpapers
Web Stunt

It'S JOY TO THE WORLD OF IPHONATICS!

At first, camera phones were nice-to-have applications/tools. The it became so widely used that we've heard of stories of folks using their camera phone to document events. Remember Michael Richards' --- Kramer on Seinfeld --- rant onstage that went viral on YouTube? That was caught on a camera phone.

While I don't think the camera phones can take the place of a really good digital camera when taking photos of properties for posting as a listing, there are some camera phones that are really good.

 

TREO 650 --- this is one of the last pictures I took using the TREO. This picture is of my foster dog, Joey, outdoors at the dog park, in the daylight. I was impressed with the quality.

 

BLACKBERRY CURVE: 

Her name is Harmony, the latest addition to the household. Taken indoors, during the day, using light streaming in from the windows.  

 

 

 

 

IPHONE  

When I switched to iPhone, I'm still in the learning mode although there was really nothing to learn. It's a PHD technology (Push Here, Dummy).Taken at night, with just the light from the Christmas tree. 

And here's a close-up of that Christmas tree.

  

Although passable in a pinch, I miss the flash, the zoom in/out capability, the settings of a real camera. But it's nice to know the camera phone is available as an alternative.

How about YOUR cameraphone?

Brad Carroll  of http://www.dakno.com was nice enough to tell me what I can do regarding resolving the mysterious appearance of spam emails sent to me, from my own email address!

He's got so much good information and ideas that it seems right to make sure more people know about some of the helpful tips he's blogged about in the past.

For example, he's an iPhone junkie -- and he posted this back in June 2008. There is no re-blogging activated on his post, so here's a link to his post. This is simply another iPhone application to entice folks on the fringe to consider switching to iPhone.

Hidden iPhone Feature Discovered - I Had to Try it Myself!

Here's a picture of what his blog is about. Now go check out this post and his other must-read blogs.

We were cold, wet and freezing. But today, I had two sets of clients to whom I was going to show several properties. So as long as they're williing to go out, I'm willing to take them.

RAIN, FREEZING RAIN.  The rain was relentless. Every time I got out of the car, located the lockbox (which for some reason always seems to be in nearly inaccessible places) took off my gloves to enable me to use the lockbox keys, it was like dipping my hands in a vat of ice water.

Entering vacant properties with no heat provided temporary respite.

MOTHER HELPING DAUGHTER  The first set of clients are a mother and a daughter who wanted to see what they can get for $200K and below. The mother wants to help her daughter find a place she can call her own instead of paying $1200/month for rent. We saw at least two that got them excited, and that we will research further.  One is a short sale, and the other an REO.

The mother is contemplating how best to help her chilld --- with the down payment? As a co-signer? I referred her to her CPA

FIRST TIME BUYERS DESPERATELY SEEKING FIXERS   Then in the afternoon, I showed fixers to a young couple who are prepared to invest sweat equity. But I had to set expectations that unless they have substantial downpayment, or money for out-of-pocket major repairs and supplies, or the property meets loan underwriter requirements, they may want to re-think buying fixers.

EAGER BUYERS

In both cases, these potential and first time buyers were excited and eager to find a home. In recent years, they toyed with the idea of buying. And now, they believe the time is right. The interest rates are low, and prices have come down.

So in spite of the freezing rain, we sloshed through (okay, skipped over) puddles, braved the wet day, shuddered in the rain, and looked! Viva, Buyers!

Lately, I started getting spam emails ---- from me!

I am using Cloudmark to filter spam emails...but I don't know what to do about preventing emails to come to me, using my own email address. And I'm afraid other folks may be getting emails from my email address, and start blocking my address thus preventing me from contacting them via email.

First, I'd like to know how to prevent this from happening.

And can someone explain how this could have happened, and how I can stop it? Is someone else experiencing this?

HELP! HELP! GET ME OUT OF HERE!

HELP!

What situations have you run into where your clients' sales were jeopardized due to underwriters' requirements?

In recent weeks/months, when writing an offer on REOs, it has become apparent that underwriters wield tremendous power over what conditions will put a screeching halt to the loan process.

Allow me to share real examples where the underwriter stopped the loan until certain conditions were met

REO Fixers in Oakland

• Hole in one wall
• Broken window glass panes (one shows signs of a BB gun impact)
• Missing steps on a back door stairs
• Dilapidated garage
• Rotted back door
• No stair railings leading to basement
• Carpet was pulled back and needs to be tamped down (it was pulled back to show the hardwood floors!)

REO Fixers in Alameda

• Citations and violations by the City placed liens on the property preliminary report that need to be satisfied
• No stove/oven in the kitchen makes this a non-functioning kitchen
• Missing rear door in the basement
• Broken window glass panes

Regular sales in Oakland

• Rickety steps in the back stairs
• Broken window (this is a recurring theme -- so fix those windows!)

Regular sales in Alameda

• Unfinished work (substandard siding on an addition in the rear of the house)
• No heat
• Holes in the ceiling, floor, wall due to water damage
• Rotted steps on the rear stairs to backyard
• Buyers have not worked in this country for at least 6 months, and employer's answer to buyers' continuity of employment was "It depends on the economy." If employer simply said "yes" it may have been accepted.

 

 

I just posted a view of REOs in our neighboring city of Oakland CA. So how does that compare with Alameda CA?  I looked for detached single familyhomes that closed escrow since November 1, 2008.

Here's what I found in our island city of approximately 72,000 people

How many closed escrow?

• Total closed: 4

Price and Size

• Lowest sale: $400,000 Listed at $276,500. Sold for $124,000  or 31% over list price This was also the smallest property with 888 sq ft of living space, 1 bedroom/1 bath.
• Three out of four listings sold for over list price.
• Highest sale: $555,000. Listed at $590,000. This was sold both as a duplex and a single famly home, with 5 bedrooms, 2.5  baths.

Days on market

• Shortest time on market: 6 days for the least expensive and smallest home on this list.
• Longest time on market: 62 days. Listed at $590,000, sold for $550,000.

Averages

• Days on Market: 21 days
• List price: $442,850; Sales Price: $483,750 which is 9% above list
• List $/sq ft $395; Sales $/sq ft $468, or 18% above list

We'll take a look again in the first quarter of 2009 and see what the picture looks like then. But for now, this could provide a bit of a strategy when writing offers on REO properties in Alameda.

Whenever we find REOs in good locations or areas with good potential, we can almost bet that there will be multiple offers on the property. As such, we prepare ourselves and our clients that we should be aggressive in our offer.

Taking a look at Oakland CA, our neighboring city, I looked for detached single familyhomes that closed escrow since November 1, 2008. Here's what I found:

How many closed escrow?

• Total closed: 214

Price and Size

• Lowest sale: $49,500. Listed at $49,900. This was also the smallest property with 605 sq ft of living space, 1 bedroom/1 bath
• Highest sale: $680,000. Listed at $825,000. This had 3472 sq ft of living space, 4 bedrooms, 4 baths. Interestingly enough, this was also the largest home among these sales, and located in a most desirable area of Montclair

Days on market

• Shortest time on market: 0 days for two properties. Property A listed at $189,900, sold for $185,000. Property B listed at $104,900, sold for list price.
• Longest time on market: 337 days. Listed at $148,500, sold for $145,000.

Averages

• Days on Market: 47 days
• List price: $169,367; Sales Price: $166,391
• List $/sq ft $144; Sales $/sq ft $141

I'll have to check out what the picture looks like in terms of foreclosures in Alameda CA.

 

Toto, we're not in Kansas anymore. Gone are the days of getting a loan approved and escrow closed in two weeks.

SENSE OF URGENCY  Do the underwriters have it?

It seems that we are running into all kinds of underwriter demands before they approve drawing the loan documents. Do they have the sense of urgency? They're driving us realtors and our clients insane. If the stress doesn't kill us, the long wait will.

Recent challenges where the Underwriter wouldn't approve the loan unless some things are done, and then certified and completed before close of escrow. These demands were made on loans for fixer upper REOs.

• a detached but dilapidated garage in the backyard that is away from the house is removed and the debris hauled away
• stair railings are installed
• springs in a garage door are replaced to conform to code
• a stove/oven is intalled in a kitchen of an REO property where the previous owner removed all appliances, rendering the kitchen non-functional
• holes in the wall.ceiling/floor are patched
• broken glass window panes (even nearly pin-prick BB gun holes) are replaced
• back porch stairs with missing steps are replaced
• dilapidated addition to the house is removed
• back door with wood rot is replaced

Well heck, the reason why these are so inexpensive is because they're fixers. And the buyers have plans to repair, renovate, and rehabilitate the property. If they were in good condition, they wouldn't be priced so low to begin with!

WE NEED DIRECTIONS  --- what do we need to do?

Occasionally, sellers and the REO banks would cooperate and do some repairs. But the problem is it takes an ungodly length of time before we even hear back from the underwiter or get a list of their requirements. So we are forced to get extensions for the contingency removal and escrow closing while the repairs are done. Then we have to make allowances to have the repairs re-inspected and certified by the appraiser before the underwriter approves the loan.

I am involved in two REO escrows where it took the appraisers nearly a week  (business days) after a contract is executed to go the site, nearly a week to prepare and submit their appraisal, another week for the underwriters to review the appraisal. Once we knew what repairs were needed, another week to perform those repairs. 

During this time, my hair got whiter, thinner. Smiles turned to frowns and ugly lines formed on my face. Nothing ages you more than the stress of trying to keep the deal together and the dogs at bay!

 WHAT HAPPENS IF WE DON'T GET THE ANSWER IN TIME?

• The seller gives us a 24-hour notice to perform
• The seller cancels our contract and goes with the next buyer
• The other agent swears he/she won't ever do a deal with us again
• Our reputation with our buyer suffers
• The buyer has already served notice to move out of current place and now finds himself/herself in a pickle, trying to find another temporary place to stay. And in the meantime, incurring expenses for storage, trying to rearrange schedule, etc.
• Our relationship with our own lender suffers (why can't he/she expedite the process and get his/her underwriter to give us an answer?)

STRESS OF MOVING OUT/MOVING IN  My clients have gone through the ringer the last two months. They sold their home and bought another.  They spent a lot of time decluttering, packing, cleaning, doing inspections, meeting with contractors, hiring people to do repairs, negotiating credits and following up on loans.

Their simultaneous move-out/move-in schedule was incredibly stressful.

EPICUREAN BREAK

My associate who is also their lender, and I decided to take them out to a local restaurant that they haven't gone to.

We had a truly delightful dinner at Barceluna, a local restaurant downtown that I had blogged about, where they have never gone. I told them that the food here is wonderful, so going there was a real treat for all of us.

From the time that we were seated, we were laughing as we exchanged stories about our backgrounds, where we grew up, etc.

We relaxed and enjoyed getting to know each other better. They told us about their plans to restore the duplex they bought back into a single family home. About what they like to do to relax (weekend camping trips). About how their personalities mesh --- one fumes while the other soothes, one likes wine and the other would rather drink beer.

It was a really lovely time and underscores the need to spend time with people you care about.

Material gifts are soon forgotten, but quality time will always linger in our memories.

FIXER IN DESIRABLE EAST END OF ALAMEDA CA

My friend and co-worker just left for a holiday in London, and she asked me to look after her short sale listing.

This is a fixer in Alameda, in a very desirable part of town called Fernside. It has good "bones" but has not been remodeled or upgraded in decades. It was refinanced a few years ago, but like some homeowners who later got in trouble, the funds from that refinancing didn't go towards maintaining this house. Hence, it's a fixer --- and a short sale.

  

It was priced at $300,000. Two contractor bids to repair/renovate the property so it becomes habitable came to approximately $250K. What does it need? Everything! But it does have large formal rooms, hardwood floors, built-ins, and it's in a great east end location on a corner lot. If this were in good condition, in this neighborhood, and in today's market, this would be worth in the low to high $600K.

As of this writing, there are thirteen offers, 8 of them cash offers. All of them are above list price. The lender doesn't want to see all 13 offers, and will only look at the top two offers, while promising to make a decision within 72 hours of receipt of these offers. I called all 13 agents to give them an opportunity to re-submit their best and final offer.

In the meantime, as the deadline for a response looms, more people are calling about this property, drawn by this price which is very low for this neighborhood.

UNDERPRICE TO GET OFFER ABOVE LIST PRICE

So...here's a classic case of underpricing to get the best and highest offers. By the time the dust settles, I won't be surprised if this property finally sells around $400K which is probably what it's really worth, even as a fixer.