New Listing at 157 Hagar Avenue, Piedmont, CA.

ALL YOU WANT FOR CHRISTMAS . . .
comes in one large package!  This gorgeous "Brown Shingle" home with authentic detailing and many original details features 4+ bedrooms and 3.5 baths with a modern kitchen, magnificent living and dining areas, a luxurious master suite and remodeled baths, fireplaces, rumpus-room, large basement, landscaped yard and AWE inspiring San Francisco Bay vistas that will take your breath away.  All this in one prime Piedmont location!  www.157Hagar.com.  Open Sunday 2-4:30pm.

Berkshire Hathaway Inks an Acquisition Deal that Reshapes the Real Estate Industry

From the Pac Union blog, November 8, 2012:

The real estate industry has received a major vote of confidence with the news that billionaire investor Warren Buffett’s Berkshire Hathaway Inc. has acquired a majority interest in the Real Living and Prudential Real Estate brands.
Real Living and Prudential were aquired by HomeServices of America Inc., a Berkshire Hathaway affiliate, in a deal announced last week. The companies will be rebranded under a new name, Berkshire Hathaway HomeServices, beginning next year.  Read more . . . http://bit.ly/S0FFnA

A New Era for Oakland's Jack London Square

From the PU Blog, October 23, 2012:

With major changes under way at Oakland’s Jack London Square, some are calling the area "a beacon of light" for the city of 400,000.

New buildings have gone up at the square over the last few years as part of a 350 million dollar redevelopment project that began almost a decade ago. With major tenants moving in and the Jack London Square Market scheduled to open next year, city officials are predicting the site will attract even more visitors and residents to Oakland.  Read more . . .

Home Affordability at 50%

Courtesy of Interest.com, October 17, 2012:

A median-income household can only afford a median-priced home in 14 of the nation’s 25 largest metropolitan areas.  Atlanta, Detroit and Minneapolis-St. Paul are the most affordable cities, according to Interest.com’s first Home Affordability Study.  San Diego, New York and San Francisco are the least affordable.

With home prices down an average of 30% from their peak in 2006, and mortgage rates at record lows, there’s a lot of talk about how homes are more affordable now than they’ve been in decades.
In some places, that's true.  But in many cities, it’s not.  Read more . . .

Housing Recovery May Finally Be Here

Courtesy of CNNMoney:

NEW YORK (CNNMoney)--It's been a long time coming, but economists surveyed by CNNMoney believe the nation's housing market has finally turned the corner.  Of the 14 economists who answered questions about home prices in the survey, nine believe that prices have already turned higher or will make that turn later this year.  Read more . . .

August Bay Area Home Sales Highest in 6 Years

From the Pacific Union blog--read the whole article at  http://bit.ly/OAZUXg

The Bay Area’s red-hot real estate market continues to set records, with August home sales at a six-year high.

The nine counties making up the Bay Area posted 8,579 home sales in August, up 1.4% from July and 14.2% from a year ago, for the best August since 2006.

Low mortgage rates, an improving economy, and increasing demand in mid- to move-up market segments helped spur August’s blistering pace.

Sales spiked 32.2 percent, year over year, in Napa County; 29.2 percent in Marin County; 29.1 percent in San Francisco; 22 percent in Alameda County; 19.3 percent in Sonoma County; 16.5 percent in Solano County; 9.3 percent in Santa Clara County; 5.6 percent in San Mateo County; and 4.6 percent in Contra Costa County.

The median sales price also rose across the Bay Area, from 2.3 percent in Marin County to 13.2 percent in San Francisco.

Is There Evidence Home Prices Have Hit Bottom?

From the WSJ
Nick Timiraos, September 4, 2012:

In each of the last three years, home prices have increased in the spring and summer, when more people are buying homes, before giving back all of those gains and then some in the fall and winter, when activity cools.  But it is beginning to look like that might not happen this year, absent a major stumble for the economy.

Home prices in July were up by 3.8% from one year ago, the largest year-over-year jump in six years. Moreover, prices have shot up by 9.6% from February, when they registered their lowest levels of the housing downturn, according to CoreLogic CLGX -0.35%data released Tuesday.

This adds evidence to the case that U.S. home prices may have hit bottom earlier this year. Even though prices will soften in the autumn, “we have a much better supply and demand dynamic” than in previous years, said Mark Fleming, chief economist at CoreLogic.

So when people say they believe home prices haven’t reached a bottom—that this year’s seasonal gains will be wiped away by January or February of next year—here’s the relevant question: Will home prices fall by 9.6% in the next six months?

Anything, of course, is possible. Home prices fell in the winter—what Mr. Fleming calls the “offseason”—in each of the last three years to record a new low. But they have not fallen by 9.6% in any six-month span since March 2009, which was when the U.S. economy was still in recession.

As we’ve written many times before, the strong rise in home prices this year owes as much to sharp declines in inventory as it does to demand-side improvement. Banks have been much slower to take back and list foreclosed properties, easing pressure on home prices but leaving a bloated “shadow inventory” of potential foreclosures.

These homes will weigh on markets for years, though there’s less evidence that they will be dumped on the market at once. While the shadow inventory may not lead to a big drop in prices that some have feared, it will probably keep a lid on future home-price gains.

Finally, lower mortgage rates have dramatically increased the purchasing power of today’s home buyers when compared to one year ago. Some real-estate executives are nervous that demand isn’t stronger given today’s low mortgage rates, and they’re worried about what will happen if rates rise.

The bottom line: Don’t be surprised if the all-time low in home prices is in the rearview mirror. But this doesn’t mean a full-on recovery is here, and there’s little evidence that the current pace of improvement can continue. For now, home prices appear to be bumping along a bottom.

Courtesy of the WSJ.

Where are Home Prices Headed?

Here is the latest from the Pacific Union Blog:

Where are Home Prices Headed? It Depends on Where You Look.

Changes in U.S. home prices are watched with the steely focus of a hawk. So why is it that the numbers released monthly by economists and government agencies swing so wildly from one another?
Read more:  http://bit.ly/NmDKa9 .

Please call me for information on the price of your home and for all your real estate needs.

Pacific Union "Extraordinary" Video

I Don't Want to Make Any Repairs!

Many times I go to a listing appointment and I have to have the dreaded conversation with the seller regarding repairs that should be made before putting the home on the market. It can be anything  from small cosmetic changes to major repairs.
   

As you can imagine, this is not always a favorable topic. I am usually met with two kinds of challenges.  It’s hard for sellers to see the value in making cosmetic changes since “they love that color” or “those gold fixtures were expensive (20 years ago)”. But sellers, you must remember once you put your house on the market its not your home any more it’s a product you are selling and the best way to appeal to a wide variety of buyers is to update your home even with something as inexpensive as new paint and a couple of new light fixtures. These relatively inexpensive repairs, if not done can cost you thousands in the end.

I know expensive repairs such as windows, furnace, roof, etc., not everyone can afford to make these repairs. But if these items need to be repaired or replaced, the price must reflect those repairs needed. Nothing screams “DON’T BUY ME” like a 40 year old furnace and a 30 year old roof. I have also heard from sellers that they would rather wait until after the home inspection and see if the buyer wants those items repaired, “why fix it if I don’t have to”. I always felt this is the wrong approach to selling your home. You want your home to show its best and costly needed repairs will turn away a large group of buyers. As a result your home will sit on the market longer and eventually you will have to decrease the price. So in theory, you didn’t want to spend $3,000 on that new furnace, but you have reduced the price of your home since listing it by $10,000.

Don’t be foolish trying to save a few bucks in the end it will probably cost you!!!

Fun Things To Do in Oakland This Weekend

Looking for something fun to do this weekend? The Oakland Greek Festival is being held on May 18-20 at the visually spectacular Greek Orthodox Cathedral of the Ascension located at 4700 Lincoln Avenue near the Mormon Temple in Oakland. The activity-jammed Festival provides a wide-range of cultural experiences from enjoying Greek music and dancing to trying great authentic food and shopping for fun stuff! This annual Festival is just one of many great things to Love About Oakland! Click on the link above for all the details and more information.

Newly Listed Bay Farm Contemporary at 1187 Hillery Way, Alameda

This spacious home features 3 bedrooms and 2.5 baths, sun-filled rooms, high ceilings and a flowing, open floor plan that merges the indoor/outdoor areas of this like new Bay Farm Contemporary together in perfect harmony.  A gorgeous yard, big open kitchen, home office/bonus room and a luxurious master suite make it a #1 choice.  Offered at $ 629,000.  Call or email me for more information or a private showing.

5 Resons Real Estate Professionals Aren't Dinosaurs

Are real estate professionals going the way of the dodo?   A spate of recent commentary suggests that the role of the real estate professional is diminishing. The Wall Street Journal asked, Are real estate agents dinosaurs?   VHT.com discussed how listing aggregators have shifted consumer attention away from agents and brokers.  And 1000 Watt Consulting predicted that the real estate business will change as the wall between buyer and seller crumbles.  All of which leads one to think that real estate professionals may soon be extinct.  But we don’t agree.  We would argue that you cannot liken a real estate agent to a traditional middleman, such as a bank tellers or travel agent.  It’s one thing to ask a consumer to withdraw cash from an ATM, or book a flight to Chicago, without assistance.  But it’s quite another to expect a consumer to negotiate and traverse the often-complicated terrain of buying or selling a home without an expert advocate on his side. Let’s take a look at the five reasons we believe disintermediation – that is, cutting out the middleman – is not in the cards for our industry.

1. Comprehensive and complete property information is not available

For a consumer to make the best real estate decision – and the average client makes this decision once every 7 years – he must be able to see and compare all the available properties to determine the best fit, price, and valuation.  The multiple listing services (MLSs) list most, but not all, available properties. By contrast, a local, knowledgeable real estate professional is also aware of an inventory of homes that are not currently on the market – “pocket listings,” in industry parlance. Without consulting an agent, the consumer has no way to know about these options.

2. Negotiation is the norm

We are not selling consumables, airline tickets, ball bearings, or books. Real estate requires negotiation — sometimes below list price, sometimes over, and sometimes with off-market homes that are not yet priced.  Multiple factors determine that pricing, including replacement costs, exclusive features, speed, urgency, financing, egos, and both parties’ unique motivations. In short, a real estate transaction – even using standard California Association of Realtors forms – is a complex investigation, negotiation, and closing.

3. No two products (properties) are alike

If you cut out the middleman, you’d better be sure that the product you’re purchasing is homogeneous and standardized. But unless you’re talking about a new neighborhood home development of 50 units or more, homes are like snowflakes: no two are identical.  They differ in square footage, floor plan, exposure, topography, finish work, price, and, most importantly, the emotional connection of the buyer or seller. A real estate professional’s unique market and product knowledge is priceless in these negotiations.

4. Transactions aren’t simple

Middleman-free transactions tend to be simple, such as a purchase that can be completed with a credit card plus a receipt. Once again, examples would be airline tickets, ball bearings, books, and some standard consumer products.  By contrast, a home search and transaction are complex. Even after a deal is ratified it requires the navigation.

5. Decision support requires knowledge and experience

Information, which used to be the province of real estate professionals, has become transparent and easily accessible. Know where to look, and real estate data is at your fingertips. However, information doesn’t equate to knowledge and experience – assets integral for navigating and successfully completing real estate transactions.  Access to information is not the attribute that defines a real estate professional. Rather, his or her value is determined by advice, decision support, and recommendations on how to proceed – or not – in a transaction. That experience and knowledge creates value for the client well in excess of any market-based (and often negotiable) fees.

Great Income Property at 1004-1006 59th Street, Oakland, CA.

Two charming houses on one lot: a craftsman style, 2 plus bedroom, 1 ½ bath and a 1 + bedroom, 1 bath rear cottage both loaded with original detailing but with modern kitchens and baths, upgraded electrical, heating, plumbing, roof and new foundation.  Just a short distance to Ashram and Emeryville shops.  Income bargain at $489,000!

Think College Now Fundraiser

Please join me for the annual Think College Now fundraiser, Monday, March 19th, 5pm at Monaghan's in Montclair. Supporting Oakland schools is a cause very close to my heart as I am sure it is yours. I look forward to seeing you there!

Five Insurance Mistakes to Avoid and Still Save Money

Here are 5 great points to start the year off right provided by Adrianne Peixotte of ProInsurance.

1.  Insuring a Home for its Real Estate Value Rather Than for the Cost of Rebuilding.
When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home.  But insurance is designed to cover the cost of rebuilding, not the sales price of the home.  You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.  Raise your deductible.  An increase from $1000 to $2500 could save up to 25% on your premium payments.
2.  Selecting an Insurance Company by Price Alone.
It's important to choose an insurer with competitive prices, but also one that is financially sound and provides good service.  Check the financial health of insurance companies with independant rating agencies and ask friends and family for recommendations.  Select an insurance company that will respond to your needs and handle claims fairly and efficiently.
3.  Only Purchasing the Legally Required Amount of Liability for Your Car.
In today's litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued--and those costs may be steep.  Consider dropping collision and/or comprehensive coverage on older cars worth less than $1000.  Insurance industry groups generally recommend a minimum of $250K of bodily injury protection per person and $500K per accident.
4.  Dropping Flood Insurance.
Damage from flooding is not covered under standard homeowners and renters insurance policies.  Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies.  Many homeowners are unaware they are at risk for flooding, but in fact 25% of all flood losses occur in low risk areas.  Furthermore with significant snow fall this winter, spring related flooding may be particularly severe, thus increasing the importance of purchasing flood insurance.  Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area.  If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance.  Information on flood insurance can be found at www.FloodSmart.gov.
5.  Neglecting to Buy Renters Insurance.
A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane.  Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.  Look into multi-policy discounts.  Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.

Pacific Union Extraordinary Video

Enjoy this video about the extraordinary real estate company that is Pacific Union International.