Attended NAR Convention, Comments on San Francisco Real Estate and a Sub-prime Loan Story

It's always enjoyable and very educational to attend the National Association of Realtors Convention. This year it was in Las Vegas and after having attended two conventions (we also had our Keller Williams Realty "Family Reunion" there) in Vegas this year, I am so done with Vegas.

With 30,000 people attending, I think that I heard someone say that it was the largest one ever. This is somewhat disappointing that more of us weren't in New Orleans last year to help the economy there.

All of this rambling brings me to my point: the common thread that I heard from at least 3-4 of the speakers was to get a blog! So here I am--through with procrastinating and all set to share my unique perspective on the wonderful city that I call home: San Francisco.

I love San Francisco and the real estate market is very dynamic and exciting. I missed out on most of the "frenzy" in the early 2000's and am happy now to be in a "normalizing" market. Despite the fact that well-priced homes in nice areas in good condition sell quickly (21-30) days and over asking, we do have a higher than normal number of listings--a four-month supply--it just doesn't seem like it.

We do have quite a few neg am loans that are adjusting and it's sad that some people may be losing their homes. Many undeservedly, some deservedly. I had a listing recently where the lady had inherited the home from her mother, only owing $300,000 at the time. She re-financed a year later, taking $100,000 out in cash. The next year, she re-fi'd again taking out $125,000 in cash with an interest rate of 8.94%! With payments going up $1000 a month and going on disability, she went into default. She was extremely upset when I told her that she wouldn't get any money out of the house. I believe in being honest with my clients even if they don't want to hear it. Bottom line, she refused to allow me to show her home, was in total denial and the property was foreclosed on. IF someone needs my help to do a short sale, I am ready, willing and able to help. (See my website: http://www.shortsalesanfrancisco.com/ for more short sale info and help.) It sure beats getting foreclosed upon and the new buyer can sometimes get a real good deal. My advice to my colleagues is to walk away--as I did--if a seller won't cooperate with you. Many more people need our help.