Last week we all read about the drop in sales, and even May sales dropped around 30%, this is what I experience. I had a Fantastic June - 8 closings, which is the highest production month for me this year.
Yes I did see a drop of in visitors to open houses, and I do feel the frenzy did die down some. However when I search for new listings for my buyers and am working with about 15 right now, I don't have a lot of options. Most of what's available has defects that are unacceptable to my buyers (railroads, main streets, t-intersections,...).
So contrary to the pundits proclaiming the end is near. I don't buy that scenario. Buyers are waiting for choice properties to appear. They are ready, to pull the trigger once that property appears.
So my word to you sellers is don't be afraid to sell, prepare your property well (and for God's sake, please don't paint the walls white if you've decided to repaint!).
Let me know what's it like your neck of the woods.
I has a client ask would it be possible to do a short sale without providing the bank any income and asset documentation.
I previous experience in trying to accomplish this was with National City, and it was a definite no. Has anyone, accomplished this recently. I'd be curious to know who the bank was, and your approach.
Thanks for the help.
I was reading John Occhui's post
The Next Wave of Bad Loans - Option Arms
This is not new news; this is a rehash of what has been said about Option ARMS since the beginning. My tag line that I print on my business card and had on my website during the go-go years was, "Friends Don't Let Friends Buy Options ARMS."
I once had a booth at the Fremont Art and Wine Festival, with a big poster with my tag-line, and all the mortgage brokers that passed by laughed because they understood what it meant, but they'd loved the money they were making off option ARMs.
With the exception of the little old blind ladies, there is no sympathy here for borrowers, you were focused on your cash-out and paid no heed to the consequences. If you take a loan with a variable element, you have to be prepared to deal with the variable when it happens.
At an open house last week, a mortgage broker came by all excited because he now was offering an FHA with only a 0.5% down payment. I asked him, if someone can't manage to save 3.5% do you really think they'll be able to manage their money to make the monthly mortgage. He agreed, but continued to try to educate me on the program benefits. Yes, I know it's harder to make money, but please let's not be doing things that will make matters worse down the line.
If they are going to allow people to buy homes with no skin in the game, then they should cap their DTI's to 30%. That would be sensible, but since the same people who ran the banks during the crisis are still running the bank, why should we expect any sensibility from them or the government. Everyone is simply interested in getting their next trick.
A client was asking my how they could reduce they MAGI (modified adjusted gross income), below the $150,000 threshold for Married Filing Jointly.
The answer was I don't practice as a CPA anymore. Having said, that I was still curious, so the the only way to reduce MAGI which is AGI (line 37 on the bottom of page 1 of the 2008 form 1040) is to reduce taxable income (defer income or increase 401k withholding) or increase the deductions to get to AGI (which are IRA, SEP and Health care account deductions).
Take a look at the 1040 Form
Or one could choose to quit working or take some unpaid time off - hey it's worth considering.
If anyone other ideas, please do share.
FAQ on the $8000 credit.
Lately every home I bid on has been getting mulitple bids and going over asking. And they're not all REOs, in fact the last two were regular sales in Newark, CA.
I bid on a duet in Newark recently and it got 7 offers, and looks to have went over asking, which was $25k over the last closed of the same unit. It's nuts to chase up a house in this environment.
Also a entry level detached home in Newark got 33 offers with the high about $50k over asking. Also nuts. Again these were regular transactions.
Yes interest rates are low, and prices have come down, but the lack on inventory in Fremont, Newark, and Union City is temporary is making buyers behave irrationally. Similar to how they behaved in 2003-2005.
More homes will be coming on the market, especially in the low end, so be patient. Don't Panic!!!
There will be plenty of homes for everyone to get into at reasonable price.
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I know Fremont, Union City, San Ramon, & Pleasanton. I can negotiate a great price on a home for you that's associated w\ a great school. Realtor, Mortgage Broker, MBA. Short Sales, REO
Education
UC Berkeley, Economics
UCLA - Anderson, School of Business, MBA
London Business School, coursework in Strategy and Finance
Credentials: MBA, CPA (inactive), REALTOR, Broker
Experience
2009 has one been my best year since I started doing real estate in 2002. The beginning of the year was a buyer's market and I focused on that aspect. Then around March I started doing short sales and continued to work with buyers. As the market shifted in April to a sellers market I become involved in more lsitings. From the summer on, I've 65% selling agent and 35% buyer's agent. Though I am currently working with a number of buyers, it's vey difficult to find appropriate properties given the tight supply.
I am expecting the situdation to change in January/February 2010.
Currenlty I am the Broker Owner of SUNIL SETHI REAL ESTATE. I've been doing real estate and financing full time since beginning of 2002. Prior to that I worked in the high-tech world helping young companies go to market, get funding, develop business plans. My original career was as a CPA (inactive). I practiced for 4 years in the tax department of Arthur Andersen and 3 years with Morrison and Foerster. I originally got my Realtor license in 1992 and started working part-time in the industry than.
Most of my clientele is interested in buying a home associated with a high performing school. It's the number one reason people buy homes in Fremont. Fremont has 28 elementary schools, of which in 2006, 10 (36%) had an API score greater than 899, and another 12 (43%) scored between 799-900. The remaining 6 had scores between 732-800, which in comparison to the neighboring districts is still considered great. Two of the Mission Elementary Schools (Mission San Jose Elementary, Gomes Elementary) were ranked top 10 in the state, as ws Hopkins Junior High and Mission San Jose High School. My buyers have looked at Cupertino, and other sites on the Peninsula, but end up choosing Fremont because you simply get more square feet for the dollar and comparable API.
However Fremont is also an attraction for buyers for the diversity it offers, with over 50% of the population consisting of various minorities.
100% of my business is from referrals and is splits 50/50 between new home buyers and trade-ups. I haven't been seeing much investment buyers here simply because the cash-flow doesn't make sense. My buyers and sellers love me because I don't sugar cost things. I tell you what I really think. My CPA (inactive) background means I tend to more conservative and want to make sure you understand the pros and cons of each property.
Hey, thanks for everything. Very smooth, very painless (except for mistakes made by me!) I will definitely recommend you
Janice Kary
San Diego, CA
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Dear Sunil,
You have helped us refinance twice in the last 5 years. Both times my
wife and I were extremely satisfied. We truly felt that you have your
client's best interest at heart. Thank you for all your hard work on our
refinances. We have no reservation in recommending you to our friends and
family.
thank you,
Frank and Michelle Edelman, Fremont, CA
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I'll never use anyone else again. I wanted to get a HELOC in place before I left the country, which was a week away, and Sunil did it! At the start of the process he emailed me a spreadsheet of various options and then went over pros and cons of them, including the tax benefits. The appraiser was there the next day, and we signed docs the day before I left. Sunil even personally came to our home, because he knew we had little time between the packing and wrap-up of remaining errands, so that he could answer any questions during the sign-off. And best of all, everything was exactly as he said it would be - no surprises. If you are looking for one of the best educated mortgage brokers around, who can find you a great program and rates, arranging for expeditious funding with no surprises, give Sunil a call.
Barry Augus, Oakland, CA
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My husband and I will not use anyone but Sunil to handle our home loan needs. He has gone way above the line of duty in taking care of our loans, not just when we bought our house but also when it was a good time to refinance. We would recommend him every time.
Irene Hagmann, Fremont, CA
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I would like to say that I highly recommend Sunil Sethi at Show and Sell Realty because: During the time my place was on the market Sunil went out of his way, I think, to sell this property by actually rolling up his sleeves and helping in the grunt work. Such as placing tan bark and placing flowers along the walk way, helping to get me deals on contractors, loading stuff in to the trash to go to the dumps, and many more things that I have never had a realtor do for me !! He gets VERY involved and I would be more then happy to hire Sunil Sethi/Show and Sell Realty again in the future !
Regards,
Al Dixon, Fremont, CA
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With Sunil, I was able to secure the lowest rates and most appropriate loans. Sunil watched my portfolio with care and that insured my investments were matched with optimal loans. Dave Buciak Director, Exalead Software
San Francisco, CA
----------------------------------------------------------------------------- Thank you Sunil for all your help! As you have assisted me and friends I have referred, I have been impressed by your professionalism, knowledge, and service level. You are always very responsive, and I really appreciate your practical advice and willingness to help. Thanks again! Paul Schreiber, Fremont, CA
----------------------------------------------------------------------------- Sunil, Thanks for all your help. It was a pleasure working with you since, you handled both the real estate and financing aspects of the purchase of our new home in and sale of previous home in North Beach. It was a competitive bidding environment, but you managed to secure our new home at a fantastic price, and sell our old one for the highest price in the community. We love the view of Angel Island. Thanks so much.
Ray Whitley, San Francisco, California
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You're a true professional Sunil. Every once in awhile good things happen to us in life, and I think when I chose you as our agent it was one of those good things. Thanks for your day-in and day-out professional care. Thanks for making the experience easy. Working with you was a pleasure. I have already recommended you to my clients and family. Please continue to let me know when an opportunity to improve my position becomes available.
Ed Moura, CPA, Concord, CA
----------------------------------------------------------------------------- As first time home buyers, we weren't familiar with the loan process. Sunil walked us through the process step by step and was always available to us day or night and on weekends if we had any questions. He gave us the tools we needed to decide which loans worked best for us and showed the risks of various loans. I would recommend Sunil to our friends and family; he is professional, competent and gives 110%. We were very pleased with his service and will be using him in the future. Taya Hernandez and David Rands II, Livermore, CA
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