George Langford's Blog

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2010-04-29T09:16:00.001-07:00

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Spring San Francisco Real Estate Report!

2010-04-07T17:10:00.000-07:00

Click on the link to read the Report!

http://www.inkswitch.com/viewItem.php?itemID=31396

Earthquake Preparedness Kit - Are you Ready?

2010-04-06T15:11:00.000-07:00

We have recently had Earthquakes in Southern California and Mexico. Although this activity is not out of the "Norm" it is always a reminder that we need to be prepared living here in San Francisco.

After a major disaster the usual services we take for granted, such as running water, refrigeration, and telephones, may be unavailable. Experts recommend that you should be prepared to be self-sufficient for at least three days. Store your household disaster kit in an easily accessible location. Put contents in a large, watertight container (e.g. a large plastic garbage can with a lid and wheels) that you can move easily.

Your basic emergency kit should include:

*Water – one gallon per person per day
*Food – ready to eat or requiring minimal water
*Manual can opener and other cooking supplies
*Plates, utensils and other feeding supplies
*First Aid kit & instructions
*A copy of important documents & phone numbers
*Warm clothes and rain gear for each family member.
*Heavy work gloves
*Unscented liquid household bleach and an eyedropper for water purification
*Personal hygiene items including toilet paper, feminine supplies, hand sanitizer and soap
*Plastic sheeting, duct tape and utility knife for covering broken windows
*Tools such as a crowbar, hammer & nails, staple gun, adjustable wrench and bungee cords.
*Blanket or sleeping bag
*Large heavy duty plastic bags and a plastic bucket for waste and sanitation
*Any special-needs items for children, seniors or people with disabilities. Don’t forget water and supplies for your pets.
*A component of your disaster kit is your Go-bag. Put the following items together in a backpack or another easy to carry container in case you must evacuate quickly.

Prepare one Go-bag for each family member and make sure each has an I.D. tag. You may not be at home when an emergency strikes so keep some additional supplies in your car and at work, considering what you would need for your immediate safety.

Flashlight
Radio – battery operated
Batteries
Whistle
Dust mask
Pocket knife
Emergency cash in small denominations and quarters for phone calls
Sturdy shoes, a change of clothes, and a warm hat
Local map
Some water and food
Permanent marker, paper and tape
Photos of family members and pets for re-identification purposes
List of emergency point-of -contact phone numbers
List of allergies to any drug (especially antibiotics) or food
Copy of health insurance and identification cards
Extra prescription eye glasses, hearing aid or other vital personal items
Prescription medications and first aid supplies
Toothbrush and toothpaste
Extra keys to your house and vehicle
Any special-needs items for children, seniors or people with disabilities. Don’t forget to make a Go-bag for your pets

District 5 - Noe Valley San Francisco

2010-04-05T16:23:00.000-07:00

Over the years, Noe Valley has become one of San Francisco's most coveted residential areas. Many of the Victorian and Edwardian homes in the area have been updated for modern living, and the area is very convenient for out-of-town and downtown commuters alike, with easy access to highways and the J-Church Muni Metro line.

Twin Peaks rises high above the valley, blocking much of the fog that lingers in the city's Western neighborhoods; frequent sunny days make this a wonderful home for those who love socializing with their neighbors.

24th Street is the heart of the neighborhood, and here you will find friendly faces popping in and out of boutiques, restaurants, charming cafes, salons and a bevy of long-standing small businesses. Throughout San Francisco, this area is known as a popular place for both new parents and dog lovers to congregate - watch out for strollers and dog leashes while window-shopping!

The inclusiveness of the neighborhood is bolstered by a number of community events, including a weekly farmers market and October's much looked-forward-to Harvest Festival. Of course, Noe Valley neighbors find reasons to gather every day -- whether at Douglass Park playground, the newly opened recreation center and dog run, or just out in front of one of the many coffee venues.

■Zip Code(s): 94114, 94131, 94110

For the First Time in a Year, Fewer Sellers Slash Asking Price

2010-03-19T11:22:00.000-07:00

For the first time in a year we are seeing fewer Sellers slash asking prices. In some markets the fewer slashed from home Sellers is resulting in bidding wars. Just under 20 percent of homes that went up for sale in March have been reduced once.

San Francisco Market Update:

List Price to Sell Price is 98.15%

What does this mean for Buyers?

If you find a home that is priced right, in good condition and in a great location it will sell fast. The day of waiting for the Seller to drop the price is becoming less and less. There is less inventory on the market at the moment and more buyers taking advantage. In some cases here in San Francisco we are seeing multiple offers on properties.

What does this mean for Sellers?

Preparing you home is key in this market. Preparation can be painting, updating or staging to allow your home to be the "Gem" property in this market. Pricing correctly in the beginning is imparative. The market will determine the value of your home.

Find out if you can afford a Mortgage without the Mortgage!

2010-02-23T19:30:00.001-08:00

It's natural as a First Time Home Buyer to have the "Fear" of a mortgage. Paying rent all your life and never having such a large payment does sound intimidating at first. Well I have the solution to help ease that fear!!!

Solution:

Step #1: Go talk with a Bank or Mortgage Broker/Banker to see if you can qualify for a loan. This will allow you to know how much you can purchase and what the estimated monthly payment would be for your specific scenario.

Step #2) THE MOST IMPORTANT STEP OF ALL!
Take the difference between what you currently pay in Rent and what your propsed New Mortgage payment would be. Take the difference and put it into a Savings account for 3 months. This will allow you to see what it would be like to actually have a mortgage without the committment! See how life would be.... if it feels tight consider lowering your purchase price, if it's comfortable stay at the proposed payment, and if life still seems very good, explore the opportunity to increase your purchase price.

For Example:
If you pay $2,000 a month in rent and your payment would be $3,500 a month for a mortgage. Take $1,500 a month and place it into a savings account as if you were paying a mortgage. At the end if you decide to purchase a home you will have saved money for moving expenses or even New Furniture and you will already know what it is like to have a Mortgage!

Why let Fear control your decision? Try this out and take away the fear of a mortgage and the "un-known".

30 Days VS. 3 Plus Months - You be the Judge!

2010-02-18T16:08:00.000-08:00

The wire is down for First Time Home Buyers to cash in on the $8,000 tax credit. April 30th you must be in contract and close by June 30th. You still have the opportunity to take adavantage of the tax credit.

Buying a home that is being sold by a seller and not a bank may be your only option soon. "Regular" sales or a home that is being sold by a seller and not a bank will allow you to close an escrow around 30 days. Short Sales are taking so long that it might be 3 months before you hear back from the bank and at that time the answer could still be no. Taking that long for a response might put you out of game for the credit.

But I can get a better deal when I buy a short sale.... right?

Sellers are very aware of Today's market and understand that they are going against banks. Banks are very aware of the market as well and won't let a home go for any price either. Having your Realtor negotiate with a seller could be more beneficial. A lot of banks will not allow for the buyer to receive credits to help pay for closing costs. You have a better chance at trying to ask a seller to help pay some or even all closing costs. Buying a home from a Seller might actually be a better choice of the two. Are you willing to wait for the bank to respond over 3 months but have your interest rate increase? If this were to happen that Short Sale might actually cost you more in the long run. See examples below:

"Regular" Sale: Seller & Buyer
List Price: $500,000
Seller Pays 3% Closing Costs: $15,000
Buyer Pays: $475,000
Payment at 5.125 Interest with 20% Down: $1,708.00 (Estimate)

Short Sale: Bank & Buyer
List Price: $500,000
Bank does not allow credit for closing costs
Buyer Pays: $500,000
3 month Response time interest rates go to 5.25%
Payment at 5.25 Interest with 20% Down payment: $1,750.00 (Estimate)
Buyer out of pocket for closing costs $15,000

Is the short sale reall worth waiting for? You be the judge!

***Payments do not include HOA's or Property Tax. They are estimates and for example purposes only!

Beat the Clock - Credit Soon to Expire!

2010-02-12T14:32:00.000-08:00

First Time Home Buyers have a great opportunity to take advantage of the $8,000 Tax Credit. Unfortunately even this great opportunity does have an expiration date!

What makes a First Time Home Buyer?

As long as you have not owned property within the last 3 years you are considered a First Time Home Buyer. You must intent to live in the property and have it has your primary home. Can not be used for investment properties or second homes.

Tax Credit Timelime:
April 1st, 2010 - Must be in Contract on a home (In Escrow)
June 1st, 2010 - Must Close Escrow on your property

Please call George today for more information or to take advantage of Today's Buyer incentve Market!

First Time Home Buyers Have A Unique Advantage in Today's Mortgage Market

2010-02-09T10:17:00.000-08:00

Mortgage rates have fell for the third straight week. The credit markets are still tight but have loosened up significantly from 90 days ago.

Buyer Advantages in Today's Market:

#1) Low Interest Rates
#2) Opportunity to Negotiate with Sellers to pay for Closing Costs
#3) $8,000 Tax Credit available to First Time Home Buyers

What to Prepare for when applying for a loan;

#1) Provide Bank Statements
#2) W-2 Wage and Tax Statements
#3) Pay Stubs
#4) Provide Assets (ie: 401K, IRA's, Retirment Funds)
#5) Clean up Credit Score - The highe the credit score the better qualifying terms)

It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5% down payment, which can come from a family member, employer or charitable organization as a gift. For a non-FHA-insured loan, lenders are requiring a larger down payment.

FHA Mortgage Changes - Effective April 5th, 2010

2010-01-22T13:37:00.000-08:00

New Year brings some minor changes to the FHA Program. FHA =(Federal Housing Administration).

What is FHA?

FHA loans have been helping people become homeowners since 1934.

How do they do it?

The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

Low down payments
Low closing costs
Easy credit qualifying

CHANGES FOR 2010:

FHA Currently Collect a premium of 1.75%

Effective April 5th, 2010 FHA will now collect an upfront mortgage insurance premium of 2.25% for the following:

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 2.25 percent
Streamline Refinances (all types) = 2.25 percent
HOPE for Homeowners (Delinquent Mortgagors) = 2.00 percent
Home Equity Conversion Mortgages = 2.00 percent

This might seem like a hit to the housing market. To buyers this will be a small increase in your monthly payment.

Is it too soon? You be the judge!

Please contact a HUD approved Lender for details!

CLICK HERE to Visit HUD's Website and Learn more!

Just Bought a Condo - Why do I need an HO-6 Policy?

2010-01-21T16:36:00.000-08:00

Scenario: You have just purchased a Condo and the lender wants you to purchase an HO-6 Policy as a condition of lending you money.

**Please Consult your Insurance Agent for specific coverage in your area. The following information is deemed liable but George Langford takes no legal responsibility**

What is an HO-6 Policy?

If you think insurance for your condominium is covered by your association fees, think again. Typically, your monthly condo fees are used to fund a building insurance policy. If your unit is robbed or damaged, your building insurance will not provide any coverage for your personal possessions, nor will it offer you any protection from personal liability. An HO-6 Policy covers the interior of your unit compared to the exterior of your unit that is typically covered in your monthly dues.

What does the HO-6 Policy Cover?

Under the general terms of HO-6 condominium owner coverage, your policy should cover your personal property from 16 perils:

Fire or lightning

Windstorm or hail

Explosion

Riot or civil commotion

Damage caused by aircraft

Damage caused by vehicles

Smoke

Vandalism or malicious mischief

Theft

Volcanic eruption

Falling objects

Weight of ice, snow, or sleet

Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance.

Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system.

Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance.

Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)

Why is the Bank requiring this Policy if the HOA (Home Owners Association) has an Insurance Policy in place already?

It varies from lender to lender but most banks are now requiring an HO-6 Policy when purchasing a home, and they may require it even with a refinance. This is just an extra step banks are taking to ensure their assets (Properties) they lend on. Most policy run on average a couple hundred dollars a year. I would consult with your Mortgage Broker or Banker for more details.

When Buying a Home should you get a Home Inspection?

2010-01-20T16:14:00.000-08:00

YES!

What is a Home Inspection?

A Home inspection is a visual examination of the structure and systems of a building. If you are thinking of buying a single family home, condominium, or multi-unit building you should have it thoroughly inspected before the final purchase by an experienced and impartial professional inspector. A professional inspection is simply an examination into the current condition of your prospective real estate investment. It is not an appraisal or a Municipal Code inspection. An inspector, therefore, will not pass or fail a building, but will simply describe its condition and indicate which items will be in need of minor or major repairs or replacement. A complete inspection includes a visual examination of the building from top to bottom. The inspector evaluates and reports the condition of the structure, roof, foundation, drainage, plumbing, heating system, central air-conditioning system, visible insulation, walls, windows, and doors. Only those items that are visible and accessible by normal means are included in the report.

When Should I have an Inspection Done?

The best time to consult the inspector is right after you’ve made an offer on a property. The real estate contract allows for a grace period (Inspection Contingency) to inspect the building. Ask your professional agent to include this inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional inspection.

What is my Duty as a Buyer?

You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know that are within your diligent attention and observation. This is the best way to protect yourself. It is extremely important for you to read all written reports provided by professionals and to discuss the results of the inspectionswith the professional who conducted the inspection. You have the right to ask the seller to make repairs, corrections or requests. After the inspoection if you feel you do not want to purchase the home based off of the findings you have the right to cancel the escrow.

San Francisco Real Estate Inspections
San Francisco Single Family Homes, Condos, Tenancy In Common, New Homes, Multi-Unit Buildings, Investment Properties.

George Langford - Zephyr Real Estate

New Year - New Bank Guidelines!

2010-01-06T13:16:00.000-08:00

Ringing in the New Year seems like just another day, but 2010 will bring some changes to the lending guidelines. Below are some significant change that would affect a buyer's approval or the type of property you may purchase.

Change #1: Conventiaonal Loan Debt to Income (DTI)
2009 - DTI was 55% for Conventional
2010 - DTI is NOW 45%

**FHA will still allow DTI to be 55%

Definition for DTI: The ratio of monthly debt payments to monthly gross income. Lenders use a housing DTI ratio (house payment divided by monthly income) and a total DTI ratio (total debt payments including the house payment, divided by monthly income) to determine whether a borrower's income qualifies him or her for a mortgage.

Change #2: FHA Approved Properties
In order for FHA (Federal Housing Administration) to lend money on a property it first must be "FHA Apporved". As of February 2010 all properties that are FHA must get approved again.

What does this mean for you the bueyer?

This Process could take over a month to obtain an approval. Expect Longer escrow times in 2010 due to this change.

*** I do know of a Lender/Bank that once they approve a few of these properties FHA will allow them to administrate the approval process without getting the FHA Approval. Please feel free to contact me with further information.

2009-2010 Real Estate - What we had what to expect!

2010-01-04T08:45:00.000-08:00

2010: The year of Growth

If 2009 was the year of economic recovery, 2010 will be the year of growth.

Existing-home sales in 2009 rose to an estimated 5 million units for the year, a 2 percent increase over the 4.9 million sales in 2008. For 2010, NAR *National Association of Realtors are forecasting sales of 5.7 million units, a 13.6 percent increase.

The key to recovery in 2009 was the lower end of existing-home market. Fueled by the huge number of distressed sales - which drove down prices and returned buyers to the market looking for bargains. Also helping were continuing low interest rates and the extension of the first time home buyer credit.

A look back at 2009 and a glance into the Future: (2009 Estimated & 2010 are projected numbers.)

Economic Indicators:
Inflation Rate 2009: -0.4% 2010: 1.6%
Unemployment rate 2009: 9.3% 2010: 9.8%

Housing:
Existing-Home Sales
Sales (in millions) 2009: 5.011 2010: 5.694
Prices: 2009: $172,600 2010: $178,800
Change (in price) 2009: -12.9% 2010: 3.6%

New Home Sales
Sales 2009: 397,000 2010: 549,000
Prices 2009: $211,100 2010: $219,900
Change (in price) 2009: -9.0% 2010: 4.2%

Affordability Index 2009: 166 2010: 147

Inventory:
Housing Starts 2009: 564,000 2010: 752,000
Month's supply 2009: 8.5 2010: 8.0

Please keep in mind that the San Francisco/ Bay Area is a different market. We have seen home prices rise in the past 6 months in the San Francisco Area. We are seeing multiple offers on properties well priced, good condition and great locations.

$50,000 to San Francisco Property Owners!

2009-12-23T08:37:00.001-08:00

Not in time for Christmas, but this is great new for San Francisco home owners. San Francisco property owners will be getting $150 million gift of green. Under "San Francisco Sustainable Financing Program", homeowners will have access to up to $50,000 apiece to install a variety of clean energy improvements. It's not free money, but the terms are agreeable: 20 years to pay, with bills attached to your property taxes.

And, no, this is not another unfunded mandate imposed on overburdened taxpayers. The $150 million will be privately funded, courtesy of an 18-month-old Oakland startup, Renewable Funding LLC, that specializes in such programs, utilizing a financial instrument it developed called Property Assessed Clean Energy (PACE) bonds.

5 Questions to ask before you purchase a home!

2009-12-16T10:09:00.000-08:00

The following 5 questions may help you decide if right now is the time to buy a home.

Questions & Answers:

#1) Why are rates so low?

Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac & Ginnie Mae in an effort to stabilize the housing market. The bank plans on purchasing $1.25 trillion of securities allowing rate to be more affordable to consumers.

#2) Are rates expected to stay this low?

It's hard to tell, but don't count on it because lending landscape is likely to change next year. The Fed said it would wind down the purchase program by March 30, 2010.

#3) Why do different mortgage surveys come up with different average interest rates?

It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Some surveys take points paid by the buyer to the lender into consideration.

#4) What else does the consumer need to know?

The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. The lowest down program is FHA with 3.5% still comparable to a 30 years fixed!

#5) So is now the best time to buy a home?

It all depends on personal situations. Home buyers certainly have a lot of factors working in their favor right now - low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in spring.

THE REAL ANSWER! If you can afford the monthly payment and have the ability to put down at least 3.5%. NOW would be the time to buy. Are you willing to bet that even if home prices continue to fall that interest rates will continue to remain the same? *We have seen home prices rise in San Francisco and the Bay Area over the past 6 months. You be the judge!

If You Don't Buy a House Now, You Are Stupid OR Broke!

2009-12-11T14:46:00.000-08:00

Have you read this article yet?

It was featured in Business Week. My first thought, wow! what a blunt andbroke harsh statement! But the writer, Mark Roth, uses this headturning title to get your attention to make excellent points for those who are on the fence. Namely that interest rates are at an all time low, in fact, the lowest in 40 years. He noted that in the late 70s, rates hit a high of 18%! Can you even imagine buying a house at 18%? I personally can't fathom that possibility. In the 80s, when rates dropped from 12% to 9%, my parents practically danced their way to the 1st refinance of their home. Generation X'ers probably would never dream of purchasing a home above 7% given all we have ever known are super low rates hovering between 5-6%. Mr. Roth points out the history of previous interest rates as well as the impact of rates on one's purchasing power. I happen to agree with his prediction that as the economy becomes more stable, interest rates WILL rise to hedge inflation. My prediction has been that by this time next year, rates will have risen 1-2% at a minimum.

What is a Grant Deed? What is a Note?

2009-12-08T09:21:00.001-08:00

When purchasing a home you will hear these two terms from your Real Estate Agent, Lender (Mortgage Broker) or the Escrow Officer at the Title Company. So what do they mean?

Grant Deed

The most commonly used property deed to transfer title in California is the grant deed, although it is not against the law to use other types of deeds. There are two guarantees contained in a grant deed:

* The grantor states that the property has not been sold to anybody else.
* The grantor states that the property is not burdened by any encumbrances apart from those the seller has already disclosed to the buyer.

Grant deeds do not need to be recorded to be valid, nor do they need to be notarized to be valid, but most sellers do ask a notary to witness the deed, acknowledging that the seller is the person who signed the deed. And most buyers want the protection of recordation, to give "constructive notice to the world" that the property has been sold.

Under California law, and your state laws may differ, to be valid, a grant deed needs to contain six essential elements. Those six items are defined as:

* A written document.
* A clause that transfers title, called a granting clause.
* The names of the Grantor and the Grantee.
* A description of the property being transferred.
* Execution, delivery and acceptance. It must be signed by a competent grantor, meaning minors and those declared incompetent cannot sign a deed; given to the buyer while the seller is still alive (not after death) and accepted by the buyer.
* Grantor's signature.

Promissory Note:

A written, signed, unconditional promise to pay a certain amount of money on demand at a specified time. A written promise to pay money that is often used as a means to borrow funds or take out a loan.

The individual who promises to pay is the maker, and the person to whom payment is promised is called the payee or holder. If signed by the maker, a promissory note is a negotiable instrument. It contains an unconditional promise to pay a certain sum to the order of a specifically named person or to bearer—that is, to any individual presenting the note. A promissory note can be either payable on demand or at a specific time.

In conclusion:

The deed is recorded when you purchase a home that shows the change in ownership from seller to buyer.

The Promissory Note is recorded as a payment or lien against the property to pay the bank (mortgage) on time for the disclosed amount and terms that have been negotiated.

Supplemental Tax Bill - You will get one when you Purchase a home!

2009-12-07T10:30:00.001-08:00

What is a supplemental tax bill?

As the name suggests, a supplemental tax bill is a property tax bill issued in addition to the annual regular secured property tax bill. The Assessor-Recorder’s office reappraises property whenever a change of ownership occurs or new construction is completed. The Assessor will send you a “Notice of Supplemental Assessment” to inform you of the new assessed value. Following this notification, the Office of the Treasurer & Tax Collector will send one or more supplemental tax bills to collect the difference between the taxes on the old and new values for each year. Whereas the deadlines for payment of regular property tax bills fall on the same dates each year (December 10 and April 10) the deadlines for payment of supplemental bills can vary based upon the issue date of the bill. Please note that the regular secured property tax bill reflects only the assessment amount of your property as of January 1, 2007. You will not be liable for any supplemental taxes until the date that a supplemental tax bill is issued.

This is very important to keep in mind when purchasing a home. The supplemental property tax bill will be mailed to you several months after your purchase. You may get one or two statements depending on the close of escrow date. They are triggered by the change of ownership and will apply whether or not you take a loan to purchase the property. However, a subsequent refinance of the property will not necessarily trigger a new supplemental tax bill. The completion of permitted improvements to a property may cause a supplemental tax bill to be generated, corresponding to an increase in assessed value commensurate with the cost of the improvements, but this can occur whether or not the property is refinanced when the work is completed.

For more information please visit San Francisco Treasurer & Tax Collector Website!

Enter to win a $20.00 Starbuck Card! Tomorrow 1-4PM!

2009-12-05T13:38:00.001-08:00

Enter to win a $20.00 Starbucks Card Tomorrow!

Open House from 1-4pm!

Lender On-Site to Answer Real Estate Questions!

LOCATION : 850 Corbett #1 San Francisco, CA

2 Levels
3 BD 3 BA
1 Master Suite
Ensuite Marble Bath
Large Private Slated Patio
Wood Floors and New Carpet throughout
Open Living Room Dining Room
Granite Gas Fireplace
Glass Atrium off Dining Room
Gourmet Kitchen, Stainless Steel Appliances
Large Family Den/Media Room
Independent Deeded Parking
Huge approx 2266 sq ft per tax records

Elegant 3 Bedroom/ 3 Bath, 2 level contemporary condo with a spacious floor plan Entry level: Open living area with wood floors, gas fireplace, large dining area all with ample natural light from atrium and large windows. 2BR/2BA. Gourmet kitchen: stainless steel appliances, travertine tiles, granite counters. Master Suite: marble finishes in BA, tranquil private slated patio. Lower level: media room and Bedroom/office and full BA. New carpet throughout.

Conforming or Jumbo Loan? What is the difference?

2009-12-05T12:57:00.000-08:00

Conforming Loans:

Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing that results in the availability of mortgage credit for Americans.

Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year.

Loan Limits for Conforming Loans are $729,750

Jumbo Loan:

Jumbo Loans

Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as 'jumbo' loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy.

For more information please Contact George Langford!

415.3363.8191

Housing Affordability - High Record for 3rd Straight Quarter!

2009-12-02T15:41:00.000-08:00

November 19, 2009 - Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.

The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.

"At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices."

Maintaing Your Wooden Deck!

2009-12-01T16:30:00.000-08:00

Maintaining Your Wooden Deck

A regular maintenance program can improve the appearance of your wood deck and significantly extend its life. The primary causes of wear are moisture and sunlight. Moisture can be trapped on the deck by leaves, debris, or items stored on the deck, such as planters. Debris tends to collect in the spaces between deck boards, trapping moisture, which causes decay in the deck framing. The shady underside of the deck is more likely to be damaged by decay. A putty knife, another narrow tool, or a hard spray of water from a garden hose can remove the debris from between the deck boards. If the deck boards are too close together, they can be widened to approximately 3/16 inch by using a circular saw.

To clean an older deck and improve its appearance, scrub it with a stiff brush and a solution of TSP (trisodium phosphate) in warm water; mix one cup TSP crystals into a gallon of water. Be sure to wear rubber gloves and, if you are scrubbing by hand, wear protective goggles. If you are going to be working on your hands and knees, rubber kneepads would be helpful. After scrubbing, hose off dirt and solution with water. If areas of the deck are discolored with mildew, apply a solution of one part water to three parts household bleach to the stained areas. Commercially prepared deck cleaners are also available. Some cleaners contain fungicides and mildewcides and others contain special bleaches to lighten the wood.

For large, heavily soiled decks, a power washer is ideal to clear off surface grayness and save a lot of scrubbing and effort. A power washer with a 2,000-pound per square inch pressure pump rents for about $25 per hour or $75 per day. These sprayers are very powerful and special care should be made to avoid damaging the wood. Be sure to wear safety goggles. After the deck is clean and dry, examine the surface carefully for loose boards, nails, and other damage. Use a nail set to punch nails below the deck surface.

Oxalic acid can make your just-cleaned deck look almost new. Oxalic acid is sold at paint or hardware stores and it lightens and brightens the wood as you apply it. It is also useful for removing stains. Oxalic acid causes skin irritation so wear rubber gloves and protective goggles when handling it. Avoid contact with nearby plants. Mix four ounces of crystals to one gallon of warm water. Apply liberally with a sponge, mop, or garden sprayer, but do not use metal buckets, wire brushes, or steel wool. The more time it takes to dry the better it works, so try to work in the early morning or on an overcast day, rather than in the full sun. Let the solution act on the deck; then thoroughly hose off the surface. The deck may look quite new when finished, but do not expect this to last. The deck will slowly gray with time and sun exposure.

There are stains that can restore the original color and keep it looking new. Water repellents or wood preservatives can help maintain deck appearance. Read the manufacturers' recommendations on these products for coverage and application methods. These products should be applied with a brush to allow for adequate penetration of the material into the wood. Do not apply these materials in direct hot sunlight, as you want it to soak into the wood instead of evaporating. Reapplication of these materials may be necessary every three to four years, depending on the amount of sun exposure and climate in your area.

The framing beneath the deck should be examined periodically for signs of decay. This is usually indicated by a white or brown growth on the surface of the wood, followed by softness and deterioration. Minor decay can be treated by wire brushing the surface and applying a fungicide such as copper napthenate (Copper Green) to the area. Probe the wood with a screwdriver to determine if it has weakened.

Any wood that is seriously weakened by decay should be replaced. If it looks like there are areas of significant damage it is probably best to hire a deck specialty contractor to make repairs, especially if the deck is high off the ground.

Mortgage Impound Accounts - What are they?

2009-11-30T14:54:00.000-08:00

Mortgage Impound Account Payments

The purpose of a mortgage impound account is to have you pay the lender each month:

-your regular loan payment

-income taxes

-hazard insurance

The first charge is a lender charge. The other two charges are third party charges that you must pay periodically or annually. Instead of waiting around to pay these amounts, the lender collects this from you monthly.

Mortgage Impound Account Purpose

The lenders collects this money and pays it on your behalf, in theory. In practice sometimes they are late with this, so you need to keep on top of this.

Lenders often give a borrower a discount on their interest rate if they agree to pay their additional expenses such as taxes and insurance on a monthly basis.

The purpose of this is to make sure you don't get behind on paying these other charges.

Some lenders can require that you do this every month. This is usually if the size of your loan is over 90% of the value of your property. This can vary from lender to lender and state to state.

When comparing offers from lenders you can check to see if the rate reflects these impound accounts and the discount that goes with it.

It is also important to know what your total monthly payment will be after you get your new mortgage loan. If it includes impounds this can end up being several hundred dollars more per month extra.

Below Market Rate Housing in San Francisco (Lotttery)

2009-11-27T14:54:00.000-08:00

The San Francisco Below Market Rate ("BMR") Inclusionary Housing Program requires developers to sell 15% of units in new, private developments at a "below-market-rate" price that is affordable to low to moderate income households. The program is administered by the Mayor’s Office of Housing (known as "MOH") and currently includes over 750 ownership units. At least 100 new units to become available each year.

To get into a BMR an applicant is placed into a lottery and there are no guarantee!

Program Highlights:

How the BMR Units are Priced?

Most BMR units are priced to be affordable to median income households spending no more than 33% of their income on housing expenses. We price the units to include condominium association fees, property taxes, the current interest rate, and we assume a 10% down payment from the buyer.

Maximum Income

The majority of projects will be available to households with a combined income of no more than 100% of median income, although some will be available to households whose income is at 80% or 120% of median income. The amounts are adjusted on an annual basis. Our office will update these income maximums between March and May of each year.

100% of Median Income for the City and County of San Francisco 2008

*
A one person household can make no more than $58,050
*
A two person household can make no more than $66,300
*
A three person household can make no more than $74,600
*
A four person household can make no more than $82,900
*
A five person household can make no more than $89,550

For more information please visit the following website: San Francisco BMR

6 Month Increase in Home Prices - San Francisco & San Mateo Counties!

2009-11-25T10:13:00.000-08:00

The chart above shows the index levels for the U.S. National Home Price Index, as well as its annual returns. As of the 3rd quarter of 2009, average home prices across the United States are at similar levels to what they were in autumn 2003. The 3rd quarter values show improvement over the previous two quarters of 2009 and have risen well off their recent bottom.

The 10-City and 20-City Composites continue to show monthly improvement in their annual return figures. Both composites emerged from double-digit annual declines with September's report, the first time in 21 months. In addition, 19 of the 20 metro areas saw improvement in their annual returns compared to the previous month, Cleveland being the only exception.

San Francisco and Washington DC have reported six consecutive months of positive returns. Chicago, Minneapolis, San Diego and the two Composites were close behind with five consecutive months of positive returns. In addition to the two Composites, nine of the MSAs reported positive monthly returns for September and four of those -- Chicago, Detroit Minneapolis and San Francisco -- were greater than +1.0%.

Winter Home Sales - Normally Slower...NOT this Winter!

2009-11-24T08:33:00.000-08:00

House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different!

What is different for the Real Estate Market this Season?

Reason #1:

We're going to see far more interest in the fourth quarter than we generally do because of the tax credit. Traffic surged on Trulia.com on Nov. 5th due to the extension of the home buying tax credit. The new law extends tha tax credit for First-Time home buyers. This will create a higher volume of interest this Holiday Season.

(To Read more on the tax credit click on link: $8,000 Tax Credit)

Reason #2:

Low interest rates will create a desire for home buyers to take action this Winter Season. The Real Estate makret along with other aspects of the Economy have seen positive improvement creating the "act now" attitude with buyers in Today's market. Rates will not be where they are at Today a year from now. if positive movement continues with the Economy, the cost to borrow money will become higher to balance inflation.

Reason #3:

The Winter Season has always been a great time to get a "deal' in the Real Estate market. If you were Selling your home, would you want buyers coming through while you were getting ready for family and friends? Sellers that stay on the market during this time "need to sell". This allows buyers to negotiate better terms and price on homes still on the market. Also, because there will be less amount of buyers out there looking, in turn this will be less competition for you as a buyer.

If you would like a FREE buyer Consultation contact George today! (415) 336-8191

Happy Holidays!
-

Bay Area Real Estate Makes A Comeback!

2009-11-19T18:54:00.000-08:00

Bay Area home prices have begun to rise from the depth of a 3 year slump. Homes are now selling for 3.8% more.

Prices on bank owned properties are driving the market. There was an 11% surge in home sales over $500,000. We are now seeing multiple offers and homes going for over asking price.

Inventory of homes is about 50% less than a year ago. Buyers seem to have confidence that the market has hit bottom and are taking action.

If you would like a market analysis on homes in your area please feel free to contact me and I will provide a detailed FREE report.

To watch a full report click on link! http://abclocal.go.com/kgo/video?id=6982902

Dine! Shop! Drink! Join us Tonight!

2009-11-18T10:52:00.000-08:00

On Wednesday, November 18, 2009 thousands of friends, neighbors and associates in San Francisco will support loved ones and friends living with HIV/AIDS and battling breast cancer by supporting local participating restaurants, merchants and bars. They will join hundreds of Zephyr Real Estate agents by simply spending a day and/or night out in their neighborhood dining, shopping and drinking with friends, family and colleagues.

Click Here For Participating Shops, Restaurants & Bars!

Spend a night out for AIDS and Breast Cancer
Participation is affordable and fun!
Dine Around at neighborhood restaurants
Shop Around at local merchants
Drink Around at your favorite bars
Invite your friends, family and colleagues out to support local chefs, merchants and business owners
Participating restaurants, merchants and bars will donate a portion of their proceeds for the day to AIDS Emergency Fund and Breast Cancer Emergency Fund
AEF and BCEF provide emergency assistance to more than 2700 clients each year when they are too sick to pay their bills
Due to our low overhead, nearly 100% of proceeds benefit AEF/BCEF’s clients in need

FREE Home Buying Seminar! RSVP Today!

2009-11-17T15:46:00.001-08:00

9 Tips for Improving Your Credit Score

2009-11-17T12:08:00.000-08:00

Below are 9 Tips to Help Improve your Credit Score.

1) Review your current credit report or accuracy. Everyone is entitled to one free credit report a year. You should get one from each credit bureau - Experian, Equifax and TransUnion. Check to make sure that the information (Name, Social Security Number & Address) are correct. It's very common for your credit reports to have mistakes and incorrect information. At minimum make sure the information you are being evaluated on is correct.

2) Repair credit report mistakes. If you find something on your credit report that is incorrect or missing you should dispute the mistake by contacting the credit bureaus. Each bureau has their own dispute procedures on their website. They are required by law to investigate it and have a response within 30 days.

3) Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of yoru credit score.

4) Increase the length of your credit history. This accounts for about 15% of your score. Don't cancel old cards or open a lot of new ones in a short time span.

5) keep credit card balances low. It's a good idea to keep the balances below 25% of your available credit. This account for roughly 30% of your score.

6) Keep new credit requests to a minimum. This accounts for 10% of your score. If you are trying to get a loan don't apply for credit cards first.

7) Beware that paying off collection accounts will NOT remove it from your credit report. It will stay on your credit for 7 years.

8) Pay off your debt rather than moving it around. The most effective way to improve your credit scores is to pay down your debt. in fact, owing the same amount but having fewer open accounts may lower your score.

9) Beware of credit-repair scams. By all means, don't pay someone to wipe away the negative items in your file. If they don't follow through, the damaging items will reappear in two or three months.

Weekly Poll - Take the Quiz!

2009-11-13T15:57:00.000-08:00

I am trying a new Weekly Poll. This will be done every Friday!

Please type your answer below. Results will be posted at the end of the weekend!

What's the most impressive feature you'd love in a kitchen?

A) Two Dishwashers
B) Wine Steward
C) Modern Lighting
D) Lot's of Cabinets
E) Granite Countertops
F) Built-In Expresso
G) Two Sinks
H) An Island
I) 6 Burner Professional Stove

*** Please type your answer below under comments. You may only choose one**

Home Improvements under $5,000 and benefit Sellers!

2009-11-12T15:49:00.000-08:00

Top 12 do-it-yourself Home Improvements that Cost under $5,000 and benefit Sellers.

*Please not ROI stands for Return On Investment

1) Cleaning and De-cluttering ($200 Cost/ $1,700 price increase / 872% ROI)

2) Home Staging ($300 Cost / $1,780 price increase / 586% ROI)

3) Lightening and Brightening ($230 Cost / $1,300 price increase / 572% ROI)

4) Landscaping ($320 Cost / $1,500 price increase / 473% ROI)

5) Repairing Plumbing ($385 Cost / $1,250 price increase / 327% ROI)

Rounding out the top 12, the list of low cost, do-it-yourself home improvements includes: updating electrical, replacing or shampooing carpets, painting interior walls, repairing damages floors, updating kitchen, painting outside of home, and updating bathroom/s.

The home improvement projects with the highest price increases to a home's resale value are updating the kitchen ($1,200 cost / $2,850 price increase), followed by painting outside of the home ($900 cost / $1,815 price increase) and home staging ($300 cost / $1,780 [price increase).

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 98% of Realtors, costing less than $200 and returning a value of nearly $1,700 to the home's sale price, or an 5872% return on investment.

Information provided by HomeGains.com

What is a "Good Faith Deposit?"

2009-11-06T16:16:00.000-08:00

So you have found a home that you love and want to place an offer.

The agent says "Bring your check book for the initial deposit." What does this mean?

In the contract on page 1 (California Residential & San Francisco), there is a place for the buyer to state how much of an initial deposit they are placing into Escrow for the home they would like to purchase. This does not mean that the property will be held for you or that it gets taken off the market. Although it does show 'Pending show" on the Multiple Listing Service. This allows the seller to still market the property, but advises agents and buyers that and offer has been place on the property. Until the release of contingencies from the buyer the property is still on the market. Contingencies allows the buyer to investigate the property, disclosures and secure the appropriate financing. The initial deposit is more like a goodwill gesture, indicating to the seller that you are serious about the prospective purchase.

How much is a typical initial deposit?

A typical initial deposit is 3% (Three Percent) of the purchase price. Ex: On a $500,000 home the deposit would be $15,000. The check is made out to the Title Company and dated according to the purchase agreement. Once the offer is accepted or ratified the check is deposited into the Escrow account within 3 business days.

What happens to the Deposit when we close Escrow?

When it's time to close Escrow, the 3% will be applied toward the required funds needed from the buyer. Required funds could include lender closing costs, inspections billed to Escrow, down payment, points paid, escrow fees or anything that is non-recurring.

For a FREE Buyer Consultation on the Home Buying Process call George Today!
(415) 336-8191

Building Built in the 80's? Sorry, you're out?

2009-11-05T17:07:00.000-08:00

If you don't live in an apartment built after 1979, you might not realize that such buildings aren't covered by the city's rent control ordinance.

That means tenants in those buildings can be evicted at the whim of the landlord.

That would change under a proposed ordinance from Supervisor John Avalos that would extend so-called "just cause" eviction rights to basically all renters in San Francisco, meaning they could only be evicted for about 15 approved reasons, such as failing to pay rent or the owner moving in.

The proposed ordinance would not confer rental price controls to post-1979 properties.

Avalos said the economic crisis has made the need for the legislation acute because tenants were being evicted from buildings that were foreclosed on. Foreclosure is not an approved reason for evictions from pre-1979 buildings.

"Tenants are being hit hard in the city," Avalos said at a Board of Supervisor's committee hearing Monday. "It seems to me like we want to make sure the playing field is even."

Berkeley has similar eviction rights for almost all renters, and supporters call it a matter of basic fairness. The Housing Rights Committee, tenant advocates who back Avalos' proposal, said between 16,000 and 23,000 rental units in San Francisco don't have "just cause" eviction protection.

Landlords and builders, though, said more regulations will dry up construction loans and kill incentive to create rental housing, shrinking available apartment stocks and city tax revenue.

"Enough is enough," said David Fix. "I was an excellent landlord, but you drove me out of the business. ... This is another solution in search of a problem."

The board's land use committee is to further consider Avalos' measure next week.

Four Ways to Stage Your Home. Create Well-Rounded First Impression

2009-11-04T10:34:00.000-08:00

Feeling good about a home and a neighborhood is part and parcel of making the decision to buy, so staging a home should involve more than just raising the charm factor. Look for ways to also make the house say "safe and secure" to ensure a more well-rounded first impression.

Here are some options for sellers to consider:

1. Hedging your bet-Trimming the bushes at the front entry and near the windows of the home adds curb appeal and opens sight lines around entrances.

2. Security with style- choose attractive storm doors and entry doors with more secure locking options.

3. Light it up- Motion-activated lighting, timer controls and dusk-to-dawn options paired with path lighting and landscape lighting means the curb appeal of the home doesn't go down with the sun.

4. High-tech peace of mind- Easy-to-install, whole-home wireless security systems and monitoring means you can control locks, lights and cameras from a computer or cell phone.

Leverage the opportunity to show a home's strength by marrying curb appeal and charm with few upgrades that deliver on peace of mind.

Call George today for a FREE Consultation on Preparing your Home for Sale!

Great News! $8,000 tax Credit Extended until April 2010

2009-11-03T15:03:00.001-08:00

Today the Senate passed the extension on the $8,000 tax credit. The home buyer tax credit was due to expire in 28 days. The Senate has passed the extension until April 30th, 2010.

The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

What is new in the law?

$6,500 maxiumum credit would be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

The tax credit has fired the housing market, driving existing home sales to the highest level in over two years. Sales jumped 9.4% according to the National Association of Realtors!

How Much More Does a Home Cost Compared to 25 years ago?

2009-10-29T11:16:00.000-07:00

So over the past 25 years we have seen the Real Estate Market go up and down like a yo-yo. But how much more does a home cost today compared to 25 years ago?

1984 Home Price of $100,000
Interest Rate at 17%
Total Monthly Payment was: $1,425.68

2009 Home Price of $500,000
Interest Rate of 5%
Total Monthly Payment: $2,684.11

A difference of $1,258.84!]

Does it seem like owning a home costs that much more today? You be the judge!

Write your thoughts....and let me know what you think.

What Happens When The Government Stops Saving Us?

2009-10-27T17:20:00.001-07:00

What is going to happen when the Government stops letting money flow into the market.

Where is Real Estate going to stand?

What about Interest Rates?

Why shouldn't I wait to buy?

ANSWER:
The Real Estate Market is driven by how much it costs borrowers to borrow money from a Bank. As of right now we still have low interest rates that allow buyers to have the affordability of purchasing a home. This is caused by the Government allowing money to be borrowed from bank to bank and then to consumer at a reasonable cost. But the Governement can't continue to do this forever. So eventually the cost to borrow money will have to increase. In turn this will be passed down to the consumer as higher interest rates in the future.

One thing to keep in mind........ When thinking of buying a home you should primary concern should be how much will this cost. If i borrow X amount of dollars from the bank, how much will that cost me monthly. Buyers tend to get more concerned about how much the pruchase price of the home is going to be vs. how much the money they are going to borrow will cost.

So why buy now?

We have prices that have come down from a year ago and interest rates that have been reamining low. It's the perfect combination of for buyers to take action in this market.

Even if prices are to come down even more (which in the Bay Area we are actually seeing homes sell close to list price.) If prices were to come down would you be willing to bet that interest rates will stay low? The combination of a price reduction in the market and an increase in interest rates would put you in the same market we are in today. Possibly even costing you more due to the fact that the interest rate has increased and would be paid over a duration of 30 years!

So what is stopping you from buying today? Not sure about the market?

Buyers have the PERFECT combination to buy in this Market.

Money Available + low interest rates + Price Reductions = BUYERS MARKET!

Call me Today!

Should you use the listing agent when buying a home?

2009-10-26T12:20:00.001-07:00

An Agent has certain Fiduciary duties to a client (A fiduciary duty is the highest standard of care possible). These can be boiled down to Loyalty, Obedience, Diligence, Disclosure, Accountability, and Confidentiality.

It’s really hard for the agent to be fair and just to both sides, and the listing agent's first obligation when the listing agreement was signed was to the seller, not the buyer. Whether itt’s negotiating the purchase price, negotiating credit for repairs, or negotiating an extension of time, you want someone to be your negotiating advocate 100% of the time throughout the process. If someone is negotiating for both the seller and buyer, it makes it tough to be your advocate all the time.

Here's the core potential problem of using the listing agent: One Agent cannot provide full Disclosure and maintain full Confidentiality at the same time. To avoid this conflict of duties, a Dual-Agent may not place either client into a beneficial position over the other.

For example, a Dual-Agent can provide the asking price of a home but can’t provide advice as to its appropriateness. Similarly, say a Dual-Agent performs a Comprehensive Market Analysis. The findings can be shared between the two parties, but not interpreted for either client. In these situations, I have suggested that a current market appraisal be used to set price, with the appraiser being selected by both parties.

The decision to allow a dual agency is a personal choice.

Since the Seller pays the commission to the Buyer's Agent there really is no reason not to get professional guidance when purchasing a home. After all, the Seller starts off with dedicated representation – you may want this too!

Bay Area's Hottest & Coldest Real Estate Markets!

2009-10-24T07:41:00.001-07:00

Below is a list of the Bay Area's Hottest & Coldest Zip Code's. Hot Zip codes are determined by the ratio of Sale Price to Asking Price.

Emeryville is actually one of the Top 10 Zip Codes in the Nation as of Today!

Home Priced Right, Good Condition, Good Location = SOLD!!!

HOT BAY AREA ZIP CODES BELOW: These are the Bay Area ZIP codes where houses sold for the highest ratio to their asking price in the third quarter.

City ZIP Ratio (Sales Price to List Price)

Emeryville 94608 105.65%
San Jose 95122 105.22
Oakland 94606 105.06
Berkeley 94703 104.78
San Lorenzo 94580 104.45

COLD BAY AREA ZIP CODES BELOW: These are the Bay Area ZIP codes where houses sold for the lowest ratio to their asking price in the third quarter.

City ZIP Ratio
Rio Vista 94571 93.47%
Napa 94558 93.45
Alamo 94507 93.07
Half Moon Bay 94019 92.94
Los Gatos/
Monte Sereno 95030 92.26

Search for home in your area at www.GeorgeLangford.com

Home Buying given you a sour taste? Watch Video and Call Me!

2009-10-23T20:11:00.000-07:00

This was fun so I thought I would share. Fun Friday! If you feel like this or have experienced this give me a call today. Home Buying with a personal experience.

Happy House Hunting!

Co-Sign for Family or Friends? Need to know!

2009-10-22T13:34:00.000-07:00

Co-Signing has always been an option when helping a family or friend get approved for a loan. It's not a bad thing if done correctly, and is used all the time to allow someone who might not qualify but can afford to pay a loan get approved. But there are some things to consider when you decide to help someone out. Remember that when you co-sign for a loan this means you become part owner of the debt acquired and the payment owed monthly.

So what happens when you want to re-finance your property or go to apply for a loan?

The bank consider the amount you co-signed for as part of debt that you owe and the monthly payment will be considered as your monthly debt.

So how do you prove to the bank that the other person makes the payment?

1) NEVER take cash from the person you co-signed for and make the payment yourself. shows the bank that you are the person making the payment

2) Try to have the individual you co-signed for make the payment directly on the loan.

3) If you feel more comfortable making the payment to ensure that it gets made every month. Have the person write you a check and not pay you in cash. Make sure they reference the loan # on the memo & payment period. You make the payment by check as well or online and reference the same loan #.

The key to remember is that banks want to see a paper trail for 12 months at minimum. This will allow the bank to see that the payment is not being made by you, this will help them not to consider this your debt and hold it against you. If you don't do this correctly and keep a paper trail, this could mean denial on a loan in the future for you.

if you have any questions please do not hesitate to call or email.

Paying off ALL debt can double your home buying power!

2009-10-20T09:42:00.001-07:00

So people wonder from time to time how can we afford a home?

So you go to speak to a bank and they tell you that you only qualify for $300,000. So now what? What can that buy in San Francisco at that price?

Paying off ALL your debt can actually double your purchase price when qualifying from a Banks point of view. For Example: A combined gross household income of $13,000 a month with monthly debt of $662.00, and FICO scores of 750+ can only qualify for $300,000. If that household was to pay off all debt they would be able to purchase a home at least for $700,000. (This scenario is based off of Today's rates, qualification guidelines and for example purposes only.)

Why such little monthly debt can affect your qualifying?

Banks have a debt to income ratio that's tailored to specific programs and vary from each Financial institute and available loan programs. Debt to income ratios determines the borrowers liability to the bank. Such a small amount of debt could mean a minimal increase in your D.T.I. (Debt to Income Ratio) which could be the difference of approval or getting denied.

* The above scenario if based off of FHA Access program that only requires 1/2% down payment.

For a FREE consultation to see how you can pay off your debt and how you can afford to purchase more home for your money in San Francisco call me today!

See how a family with $123,000 of debt paid it off in 4.5 years!! CLICK HERE!

Buyers paying close to asking price in Today's Market?

2009-10-16T10:14:00.000-07:00

A report was just released that home buyers are currently paying closer to listing price in August, but are still negotiating thousands in discounts. This is a look at the market from a national standpoint.

Here are the numbers:
Buyers paid $6,525 or 3% less than the asking price in August. This is down from $7,017 or 3.3% in July.

24.7% of all listed homes have had at least one listing price reduction.

So what about here in San Francisco & California?

In two California Markets buyers paid more than asking price during August. In the El Centro MSA, buyers paid 2.2% or a median $2,479, more than asking price. In the Stockton MSA, buyers paid 1.3%, or $2,515, more.

San Francisco Market:

The homes that have been sold in the past 30 days have gone for 99.47% of the listing price. In some small markets here in the city we are seeing multiple offers on properties in great condition and well priced.

So does this mean the market is in an up swing?

At this time I do not believe so, although we are seeing lower inventory which allows seller's to have the ability to negotiate more on their behalf. Buyers don't have all the options they had 6 months to a year ago. A rise in foreclosure's is projected, so this may allow more negotiating power for buyers as inventory rises again.

Any thoughts?

George

Credit Problems? You can still get a mortgage!

2009-10-15T15:48:00.001-07:00

Worried that you can’t qualify for a home loan due to lack of credit?

Did you know that some lenders will approve your loan even if you have NO FICO SCORE?!

Yes NO FICO score. Work with your mortgage professional to gather documentation to submit “alternative credit” to the lender. This is done by simply getting letters from companies and/or individuals such as your auto insurance company, PG&E company, cell phone company, cable provider, or your landlord. Have them type a letter on a company letter head that simply states you have been a customer for at least a year, you are in good standing, you have paid “x” amount on-time for the past year (2 years is even better!) and their information for reference, Signed and dated. DONE! This will be submitted to the credit bureaus as alternative credit and added as a credit supplement. So if credit issues are stopping you from buying in this great real estate market…. Get off the fence and contact me today to guide you through the process of home ownership.

Does it cost to have a Realtor represent a Buyer?

2009-10-14T18:46:00.000-07:00

I had a client (Buyer) the other day ask me how much do I charge for my service. So I thought that education is key and decided to write a post in regards to this topic.

Does a Realtor charge for representing a Buyer in a transaction? Yes!

The answer is yes. Commission is split between the Seller's Brokerage and Buyer's Brokerage. This is typically agreed upon when the Listing agent has the Seller sign the Listing agreement. This is an incentive to Buyer's agents to get the home being listed Sold.

So how much does it cost the Buyer? Nothing!!

The commission is strictly paid by the seller for both agents. Buyers do not pay a Fee or Commission to a brokerage representing them. It's free representation for the buyer. So remember that when you are purchasing a home you have a FREE service that is available to use. USE IT!

*If you are a buyer and a company requires you to pay them for you service do not pay them any money!*

(The above statement is true for Northern California, other area of the state and US may vary for commission terms and conditions of agents commissions: San Francisco, East Bay, South Bay, Peninsula, North Bay areas.)

Thanks again for reading and Happy House Hunting!

Contingent & Pending.....What is the difference?

2009-10-12T12:31:00.000-07:00

Contingent and Pending are two terms that describe the current availability of a property on the market. They both share similar traits but also are very different in many ways.

Contingent and Pending means: That an offer from a buyer has been accepted on a property for sale. They buyer and seller have come to an agreement on a price and terms of the contract/ transaction. Although during the escrow process terms and conditions may be negotiated based on findings of reports or different terms that may arise.

So what is the difference?

Contingent Status:

This means that although the buyer and seller have come to agreement on price and terms, the buyer is obtaining further information on the property. This includes a Termite report or Home Inspection Report if the buyer elected to have one done. The buyer still needs to review Condo/ TIC documents including H.O A. Newsletters, financial records, reserves, possibly sellers approving the buyer for a TIC, Covenant, Conditions & Restrictions for a condo and the approval of what further reports the buyer has elected to have. Along with inspections and reports during the Contingent period the buyer is awaiting final approval from the bank (underwriter), that all the needed documents have been submitted, approved and acknowledged by the Bank. This allows the buyer to have a period that if something arises and their financing is not approved, the buyer may back out of the contract without losing their "good faith deposit." So Contingent means that the property is sold with the understanding that the buyers is to perform duties in financing and inspecting documents (ie: Title) within the time lines specified in the contract.

Pending Status: Pending means that all the contingencies in the contract have been approved. The buyer has done all the investigating and has approved everything that they have found on the property. The lender has given the okay that the loan has a final approval and the buyer may move forward on the purchase. During the pending process is when loan documents are being prepared by the Bank, escrow documents are being processed at the Escrow company. In this time frame the buyer and seller will be scheduling appointments at the Escrow company to sign all transaction related documents.

* Most contingent properties are still available to view. Keep in mind that a Buyer has already placed an offer and that if you do decide to write an offer you will be placed in back-up position in case the first offer does not go through. This will depend how far the buyer/seller are in on the contingencies and if the seller wants to participate. I hope this helps out!

If you need my assistance please feel free to contact me via email or phone.
(415) 336-8191 - Cell
georgelangford@zephyrsf.com

Search for Homes Online!

First Meeting with a Bank or Lender.

2009-10-07T12:53:00.000-07:00

Buyers should always be prepared when meeting with a Lender or Bank to get pre-approved. Homes that are priced right and in great condition are starting to move quickly. Being prepared to write an offer at any time when looking for a home is a must. In order to get a pre-approval from a bank it's good to always have all your documentation ready for review. Not having the proper approval letter could cost you your dream home. So what do you bring to the appointment. Below I have examples of what a lender or bank might request to pre-aprove you. Keep in mind that every bank is different and that your Real Estate agent should call them prior to the meeting. A well prepared team is a successful one! Happy house hunting!

What to Bring to Your Loan Appointment:

* W2's and 1040 tax returns for the past two years

* Paycheck stubs covering one month

* Residence addresses – covering the past two years

* Names and addresses of each employer – covering the past two years

* Last two months’ statements for all assets (i.e. checking, savings, stocks, retirement accounts, etc.)

* Addresses of other real estate owned

* Payment for credit report and appraisal

* Photo ID

HARP -Home Affordability Refinance Program

2009-10-01T13:14:00.000-07:00

I thought I would go over the HARP program since it came up today with a client. This program can be used by individuals that had a fixed term mortgage and now will become adjustable. Also if you have a hgher interest rate and would like to lower your payment. In order to use this program the original loan must have been sold to Freddie Mac or Fannie Mae. If sold to Freddie Mac the property must be used as a primary residence. If sold to Fannie Mae it can be Primary or Secondary home. Below are the guidelines for this program.

HARP Guidelines:

*You may Finance up to 105% of property value
*Primary Residence min FICO score of 620
*Secondary Residence min FICO score of 680
*Can only finance rate & term (No Cash Out)
*Debt to Income Ratio can not exceed 45%
*No late mortgage payments in the last 12 months
*Must have owned the property for 3 months
*Current loan can not be Government. Example: FHA LOAN
*No adding/ deleting borrowers if loan is with Freddie Mac
*You CAN add borrowers if with Fannie Mae as long as the original borrowers remain on the loan.

For more information please feel free to contact me via email or phone.

GeorgeLangford@zephyrsf.com
C: 415.336.8191

$8,000 Tax Credit going away December 1st, 2009

2009-09-30T10:09:00.000-07:00

The First Time Home buyer Credit will be going away as of December 1st, 2009.

If you have NOT owned a home in the past 3 years you are a Frist Time Home Buyer!

Tax Credit will be 10% of the purchase price up to $8,000.

Income Limitations not to exceed the following to qualify:
Single $75,000
Married $150,000

Remember that escrows are typically 30-45 days. You must close escrow on your home prior to the December 1st, 2009 deadline date.

**Please remember to refer all tax information to your CPA or tax advisor**

NEW Loan Program - .5% (half percent) down payment

2009-09-25T13:59:00.000-07:00

There is NEW Loan Program available to buyers. The program only requires .5% (Half Percent) down payment. This program is utilized as two loans. The rate today (Rates are subject to change) would be 5.5% on the first loan and 8% on the second loan. No FICO score required. Full documentation of income, assists and debt are required by the lender. If you would like more information on this program contact me today! (415) 336-8191.

Pending Homes Sales on a Record Roll!

2009-09-21T10:24:00.000-07:00

Pending Home Sales on a Record Roll

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.

My Opinion: We have seen a rise in the number of multiple offers on properties here in the city. of course every market is different. Especially here in San Francisco. We have sub markets within the San Francisco market that are divded up my neighborhoods. But with rates at an all time low, tax credit of $8,000 available to first time home buyers and the times of processing and underwritting from banks are getting faster. Does this mean a recovery of the market? The only way to measure that will be time and facts or statistcs to be released. The ONLY way to know if the time is right for you if affordability. Everyone has a different situation. If you can afford the payments on a home than you should own one.

Any thoughts?

FREE Home Buying Seminar - October 24th, 2009

2009-09-16T12:36:00.000-07:00

Happy Belated Birthday San Francisco Rent Ordinance

2009-09-03T07:07:00.001-07:00

On June 13the rent ordinance had it's 30th birthday. Do you think this ordinance has lived up to it potential?

To evaluate whether the Ordinance has accomplished it purposes in life, we have to go back to the beginning. The Ordinance starts out with the following:

“Tenants displaced as a result of their inability to pay increased rents must relocate but as a result of such housing shortage are unable to find decent, safe and sanitary housing at affordable rents levels. Aware of the difficulty in finding decent housing, some tenants attempt to pay requested rent increases, but as a consequence must expend less on other necessities of life. This situation has had a detrimental effect on substantial numbers of renters in the City, especially creating hardships on senior citizens, person on fixed incomes and low and moderate income households.”

“. . . a housing shortage still exist with the City and County of San Francisco and total deregulation of rents at this time would immediately lead to widespread exorbitant rents increase and recurrence of the crisis, problems and hardships . . .”

National Apartment Association for several years in a row, has identified San Francisco as one of the cities with greatest annual increases in rents. How can that be? 1978 is looking pretty good by comparison if you’re a renter.

The basic economic rule here that we need to remember is that when you have adapted such a rule and allow a restriction on rents you create a shortage of available units. When available housing does come on the market it's allows for those rents to be higher to balance for the lower rents.

In order for this ordinance to create reach exactly what it was meant to do it would have to create complete stagnation in San Francisco. Does everyone want to live in the same apartment from 22 until they die? I don't believe so, so this basic human nature eliminates the use of this ordinance. San Francisco with it's great weather, beautiful views and strong economy would not allow for this.

Your Thoughts?

Recycle Your Old Parking Cards - Every Little Bit Helps!

2009-09-02T22:07:00.000-07:00

Going Green Tip! Everything Help!

Did you know your San Francisco Municipal Transportation Agency (SFMTA) parking cards can be recycled? Please recycle your used parking cards by dropping them into your at-home recycling bins. Thank you for thinking green.

3 Bedrooms, 2 Bath Silver Terrace Home Offered At $499,000

2009-09-02T21:31:00.001-07:00

Wonderful property that shows pride of ownership. This Silver Terrace gem has been well taken care of and loved by the same owner for over 50 years. There are wood floors under carpet and wood burning fireplace in living room. There is a good sized eat in kitchen with updated granite counters & skylight. Grow your own vegetables in the back yard. Add to the mature fruit trees, hot pepper plants, herbs, tomatoes and so much more. Close to Highways. Make this your new home and schedule a viewing! Call TODAY!

Sophisticated South Beach Loft!

2009-08-22T10:14:00.000-07:00

NEW Offering Price: $735,000

This spacious loft boasts 1255 sq ft (per tax), 2 baths, washer/dryer, secured parking, roof deck and low HOA's. Do you commute? Located just 1 block from Cal Train and Muni pick ups, transportation is a snap. Need Warm Sun? Open the giant blinds and feel the glow of the morning sun from south facing windows or take the elevator to the roof deck and hang out with a drink and a book. Enjoy a day at the baseball park? Save on parking and walk! Safeway, Whole Foods, Tres Agaves, District, South, 21st Amendment, South Park Cafe, Cinque Coffee, The Creamery and entertainment are all with 1-2 blocks. This awesome location has a walk score of 94.

CLICK HERE TO VIEW THIS WONDERFUL PROPERTY!

3R Report San Francisco - What is it?

2009-08-15T08:52:00.000-07:00

3R Means Report of Residential Building Record. San Francisco keeps a record from the 1900's that allows buyers to see the history of a property.

**NOTE** Some records were lost in 1906 (Earthquake) and are ONLY as valid as the information given and the individual inputting the information into the computer.

What is a Residential Building?

A residential building is a building or a portion of a building containing one or
more legal dwelling units. Hotels or motels containing 30 or more guest rooms are not
considered residential buildings. Therefore, a Report of Residential Building Record (3R) is not needed.

WHAT IS A REPORT OF RESIDENTIAL BUILDING RECORD (3R REPORT)?

A 3R contains the following information about
a residential building:

- Address of the building including
condominium or unit number if an

- Block and Lot

- Present authorized occupancy or use

- If the property is classified as a
Condominium
- If the building contain any Residential Hotel
Guest Rooms

- Zoning district

- Building Code Occupancy Classification

- Expiration date for non-conforming use

- Building construction date

- Original occupancy or use

- Building permit application history and

status of building permit:

N = Unknown
I = Issued
X = Expired
C = Completed

- Franchise Tax Board lien
- Abatement case on the property
- Number of residential structures on the lot
- If energy inspection has been done and
proof of compliance has been issued The above information will be shown on the
report if available through the Department of Building Inspection microfilm records. In many cases, submittal of additional records from other city agencies such as the
Assessor’s Office and SF Water Department will be required for the completion and/or
revision/update of a 3R. Please note that a 3R does not list the electrical or plumbing permit history, cancelled or withdrawn building permit applications and any
building permits taken for the commercial portion of the building.

WHEN DO I NEED A 3R?

A 3R is needed prior to the sale or exchange of any residential building; except for the first sale or exchange of a newly constructed residential building within one year of the date of the Certificate of Final Completion of the construction of the building.

It shall be unlawful for the owner and/
or representative of a residential building
to sell or exchange without providing the
buyer a 3R.

See 2007 San Francisco Housing Code,
Section 351 (a).

HOW DO I OBTAIN A 3R?

The owner or authorized agent (person licensed by the State of California to sell
property, trustee or power of attorney) may request a 3R by filing out an application
form. Forms are available at the Public Information Counter located on the 1st floor of 1660 Mission Street or on our website at http://www.sfgov.org/dbi under “Forms and Checklists.” You may also request to have the application form mailed or faxed to you by calling (415)558-6081.

You may request 3R in person or mail your application form and payment to:

Department of Building Inspection
Customer Service Division
1660 Mission Street
San Francisco, CA 94103
Attn: 3R

What Buyers should know regarding Short Sales - PLEASE READ!

2009-08-14T13:20:00.000-07:00

What Buyers Should Know About Short Sales

A San Francisco title company familiar with short sales estimates that only 20% of all accepted offers on short sale listings close escrow. Buyers who choose to make offers on short sales need to know that the likelihood of closing the escrow is not good and that if escrow closes the property may be in substantially different condition from when it was first viewed. This is important when buyers are expending money on inspections, appraisals, etc., or when buyers need to have occupancy by a certain date. Following is a brief description of the short sale process and a list of some of the pitfalls that can occur in a short sale.

What is a short sale? A short sale occurs when a seller owes more on their home than it is worth. As an example:

Existing Financing Negotiated Short Sale

Current market value: $600,000 $600,000
First loan: -$ 500,000 Reduced to -$450,000
Second Loan -$ 150,000 Reduced to -$110,000
Cost of sale (Commission, etc) -$ 40,000 Commission -$ 40,000
Amount Due from Seller at Close of Escrow ($ 90,000) -- 0 --

Since most sellers in this situation are unable or unwilling to bring money to the table at close of escrow the only way they can ‘sell’ the property is if the lenders agree to reduce the amounts owed them. In effect, the owners ‘own’ title to the home but the lenders have all the equity. The owners can only sign an offer to sell the home subject to the lenders agreeing to take less on their payoffs.

Lenders control the deal. Lenders will only reduce the principal amount they are owed when they believe that there is no alternative. Sellers must show hardship and lenders must be convinced that the offers received represent maximum sales price for the property. Even when the lenders have agreed to reduce the loan balances they often reserve the right to ‘change their mind’ and occasionally they do at the last minute. Changes of this kind can result in the failure of the transaction to close or the buyers’ having to bring additional funds to close the escrow.

Lenders move slowly. Lenders do not move quickly on short sales and when there is more than one lender with a lien on the property then it is necessary to negotiate with each lender and for the lenders to cooperate with each other. It can take four or five months for a lender to approve a buyer’s offer on a property in which the lender is agreeing to modify the principal balance of the loan. Often, even after the lender has approved an offer it will reserve the right to accept a better offer should one come in.

Short sale offers do not stop the foreclosure process. If the seller has not been making payments on the loan, the lender has likely started foreclosure proceedings. Most lenders have different departments for negotiating short sales and for processing foreclosures and these departments do not necessarily communicate with one another. It is possible that a property may be foreclosed upon while a short sale is being negotiated and that the buyer may be unaware that the ownership of the property has changed. A purchase agreement for a short sale does not translate into a purchase agreement for a bank owned property and it is unlikely that the buyers will be able to purchase the property directly from the lender.

Short sales are “as is”. Most short sale purchases are ‘as is’. Buyers are generally allowed to have
inspections but lenders rarely make concessions for repairs or pay for required retrofit work or other costs of sale. These costs frequently must be borne by the purchaser.

Seller’s liability may be limited by seller’s ability to pay. In a normal buyer/seller transaction if the seller does not comply with the contract the buyer can pursue the seller for damages. Because the seller in a short sale is not receiving any proceeds from the sale and usually has no other assets there is little a buyer can do to ensure the seller’s compliance with the contract as the seller may be “judgment–proof”. There is no way to guarantee that the seller will convey the property in the condition in which the buyer viewed it. Frequently all appliances and fixtures and even sometimes the copper plumbing are removed from the property; sometimes the interior has been trashed. The seller may have rented the property to tenants while in escrow and kept the rent and security deposit, leaving the buyer with a tenant occupied property. Sometimes the seller refuses to move after close of escrow and claims occupancy rights as a tenant. Sometimes the seller decides that it is in his best interest to allow the property to go to foreclosure and refuses to sign the closing papers, essentially killing the deal. Additionally, while the seller is required to fill out the Transfer Disclosure Statement in a short sale transaction, it is important to understand that a buyer has little redress against a seller who has made inaccurate or incomplete disclosures.

Foreclosure: Terms & Processes

Type Description

Short Sale : When there are not enough proceeds to close escrow per the contract terms.

REO – Real Estate Owned : The foreclosure process is completed and the property is Real Estate Owned (REO)
generally by the lender.

Sold : as per normal real estate transaction with some disclosure exceptions.

Notice of Default (NOD): Letter sent to party as reminder loan has not been paid; may include a grace period
and penalties for failing to cure the default.

Lien : holder may file a Notice of Default (NOD) against the property. Timing is days 1-90.

Notice of Sale (NOS): The next 30 days after the NOD. Days 91-120.

SD – Sale Day: Day 121.

When the property is “SOLD” or auctioned on the “Steps of City Hall”. Redemption Period Right of mortgagor to property by paying debt before sale at foreclosure; right of owner to reclaim property after its foreclosure sale to settle claims for unpaid taxes. Generally up to 5 days before the sale date by bringing loan current plus all charges for owner occupied 1-4 dwellings. Up to 90th day on other property. Civil Code Section §1695 Civil Code Section §1695 mandates various duties of the Buyer and Seller.

Note: Seller gets 5 days notice and can rescind accepted offer within this period.

Example – “within 5 days after acceptance”. Must be in state mandated form. Civil Code Section §1695 is used when it cannot be ascertained whether the property is to be owner occupied or not. Use the CAR contract form “Notice of
Default Purchase Agreement” (NODPA). This form includes the “Declaration and Proof of Real Estate License” as well as the notice required by Civil Code Section §1695 (page 11 of NODPA – rev. 4/08). Civil Code Section §1695 is issued on any property where a Notice of Default (NOD) has been filed including short sales. An equity purchaser (person who acquires title to any residence in foreclosure) is exempted from Civil Code Section §1695 if the property is to be a personal residence. Zephyr highly recommends Civil Code Section §1695 be used in all transactions whether exceptions apply or not when a property has a filed Notice of Default (NOD).

Issues in the foreclosures process:
1. How does a commission get paid?
2. How do the Buyers get financing?
3. Do I get a full title policy?
4. How do we get fire/liability insurance?
5. How and/or can we do an inspection?
6. How do we get the owner and/or tenant(s) out?
7. How do I get the security deposits for the tenant?
8. Are leases valid?
9. Why in the heck did I ever think about doing foreclosures???

Neighborhood Walk Score - Try Your Neighborhood!

2009-08-13T14:47:00.000-07:00

This is a wonderful tool for both Buyers and Sellers. Buyers can use this tool to determine the "walk score" of a neighborhood. Sellers can use this as a wonderful marketing tool when selling their homes. Not only do buyers look for attributes in a home but also in the surrounding neighborhood. What is exactly in a score? Read Below! Try your neighborhood out today!

Click Here to Score your Own Neighborhood!

What Does my Score Mean?

Your Walk Score is a number between 0 and 100. Here are general guidelines for interpreting your score:

*90-100 = Walkers' Paradise: Most errands can be accomplished on foot and many people get by without owning a car.
*70-89 = Very Walkable: It's possible to get by without owning a car.
*50-69 = Somewhat Walkable: Some stores and amenities are within walking distance, but many everyday trips still require a bike, public transportation, or car.
*25-49 = Car-Dependent: Only a few destinations are within easy walking range. For most errands, driving or public transportation is a must.
*0-24 = Car-Dependent (Driving Only): Virtually no neighborhood destinations within walking range. You can walk from your house to your car!

Tri-Level condo Open Sunday 8/9/09 1-4PM

2009-08-07T22:17:00.000-07:00

Enjoy the spectacular views from the abundant windows in this Tri-Level condo.

Parking space included with unit!

Open House Will be Sunday 1-4pm.

For more information on homes that meet your needs contact me today!

Visit the link below for more information on the Property:
http://www.inkswitch.com/viewItem.php?itemID=20361

No loans for condos reported.....FALSE! Please read

2009-08-05T09:07:00.000-07:00

Today on SFGate.com the following story was posted in regards to financing in the condo sector of the housing market. There are loans available for condos and with as little as 3.5% down payment. Below are a couple points I wanted to point out in regards to this article.

1) New construction is very different lending and that was a problem in Mr. Hong did not close until July. The unit was not finished at that time
2) The ratio of owners that actually live in the complex vs. renters has always been a determination when buying a condo and is nothing new. Even when times were going great we still had to watch that ratio in certain complex's.

San Francisco Specific: Always remember that in San Francisco we have condo and TIC (Tenancy in Common). Condos will have less of a downpayment than a TIC. TIC will require at least 20% down.

There ARE loans out there for all. If you have a specific circumstance please feel free to contact me at (415) 336-8191 or email at georgelangford@zephyrsf.com.

Condo buyers find it tough to get mortgages

Carolyn Said, Chronicle Staff Writer

Back in September, when Tae Hong signed a contract to buy a condominium in Oakland's new Pacific Cannery Lofts, he expected to move in quickly. With a 20 percent down payment, excellent credit and good employment as an...

Read Full Story

Buying can save you $241,359 over 30 years!

2009-08-01T10:19:00.000-07:00

*The Following calculations are based off of paying $3,000 in rent per month. Purchasing a home for $500,000 with 3.5% down payment. Each individual calculations may be different. For a specific rent vs own scenario please contact me today! (415) 336.8191* Rent vs. Buy Analysis		Rent	Buy
Rent and fees		$1,273,127
Mortgage payments			$854,500
Property insurance	+		$6,644
Property taxes	+		$365,414
Maintenance	+		$12,000
Opportunity cost (tied-up equity)	+		$1,583,431
Tax savings (interest/taxes)	-		$136,296
Appreciation	-		$1,660,971
Total cost	=	$1,273,127	$1,024,720
Present value at inflation		$760,973	$519,614
Difference			$241,359

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Show Details

Year	Rent & Fees	Mortgage Payment	Insurance, Taxes & Maintenance	Opportunity Cost	Tax Savings	Appreciation	Cost of Buying
1	$36600	$28483	$6000	$3038	$6502	$25000	$6020
2	36966	28483	6280	5122	6414	26250	7222
3	37336	28483	6574	7307	6323	27562	8480
4	37709	28483	6883	9598	6227	28941	9796
5	38086	28483	7207	12000	6128	30388	11174
6	38467	28483	7547	14517	6024	31907	12616
7	38852	28483	7905	17157	5916	33502	14126
8	39240	28483	8280	19925	5804	35178	15706
9	39633	28483	8674	22826	5687	36936	17360
10	40029	28483	9087	25868	5564	38783	19091
11	40429	28483	9522	29057	5437	40722	20903
12	40833	28483	9978	32401	5304	42758	22800
13	41242	28483	10457	35907	5165	44896	24785
14	41654	28483	10960	39583	5021	47141	26863
15	42071	28483	11488	43436	4870	49498	29039
16	42491	28483	12042	47477	4713	51973	31316
17	42916	28483	12624	51714	4550	54572	33699
18	43346	28483	13235	56156	4379	57300	36195
19	43779	28483	13877	60813	4201	60165	38807
20	44217	28483	14551	65696	4016	63174	41541
21	44659	28483	15258	70816	3823	66332	44403
22	45106	28483	16001	76185	3621	69649	47399
23	45557	28483	16781	81814	3411	73132	50536
24	46012	28483	17601	87716	3192	76788	53820
25	46472	28483	18461	93905	2964	80627	57257
26	46937	28483	19364	100394	2726	84659	60856
27	47406	28483	20312	107198	2478	88892	64624
28	47880	28483	21307	114333	2219	93336	68568
29	48359	28483	22353	121814	1949	98003	72697
30	48843	28483	23450	129658	1668	102903	77020

Top 7 Reasons why Buying is Better than Renting

2009-08-01T09:51:00.000-07:00

1. Buying doesn’t always cost much more than renting. According to a recent study by the Associated Press, the gap between monthly mortgage payments on a median-priced home and the median rent has decreased from $777 to just $221 in the last three years.

2. Affordability is at an all-time high. In markets across the nation, including the inland areas of California, prices have declined by nearly 40%.

3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.

4. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%.

5. The Tax Credit. First time homebuyers-defined as anyone who hasn’t owned a home in the last three years- are entitled to an $8,000 tax credit. (Ownership of a vacation property or a rental property doesn’t disqualify homebuyers from this program.) No repayment is required for homes sold after 36 months of occupancy and ownership.

6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades.

7. It’s yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden.

Are you paying $3,000 or more in rent per month here in San Francisco?

Call me and find out why buying may be less expensive than renting, YES even in San Francisco and the greater Bay Area.

New Rule in Protecting Home Loans Effective July 30th

2009-07-29T12:47:00.000-07:00

Example of Good Faith Estimate Disclosure Click Here

The Federal Reserve Board on Thursday approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending). The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA).

The MDIA seeks to ensure that consumers receive cost disclosures earlier in the mortgage process. In several respects, the MDIA is substantially similar to final rules issued by the Board in July 2008. However, the MDIA also broadens and adds to those regulatory requirements. The final rule largely follows a proposal issued by the Board in December 2008. Under the MDIA, creditors must comply with the new provisions on July 30, 2009. The Board's implementing regulations apply to dwelling-secured consumer loans for which a creditor receives an application on or after July 30, 2009.

The MDIA requires creditors to give good faith estimates of mortgage loan costs ("early disclosures") within three business days after receiving a consumer's application for a mortgage loan and before any fees are collected from the consumer, other than a reasonable fee for obtaining the consumer's credit history. These requirements are consistent with the Board's July 2008 final rule, which applied to loans secured by a consumer's principal dwelling. The MDIA broadens this requirement by also requiring early disclosures for loans secured by dwellings other than the consumer's principal dwelling, such as a second home.

In addition, the rules would implement the MDIA's requirements that:

Creditors wait seven business days after they provide the early disclosures before closing the loan; and
Creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance.

The rules would permit a consumer to expedite the closing to address a personal financial emergency, such as a foreclosure.

The notice that will be published in the Federal Register is attached. Publication is expected to occur soon.

Eureka Valley - Dolores Heights Single Family & Condos/ TIC/ Co-op Housing Report

2009-07-28T11:43:00.000-07:00

Below please find the current housing numbers for Eureka Valley - Dolores Heights Area. Please note this information is pulled from the Multiple Listing Service. The validity of this information is based solely on the providers. Zephyr Real Estate , George Langford deem this information to be reliable but take no legal responsibility.

Eureka Valley - Dolores Heights
May 2009- July 2009

Single Family Homes

Active - 18
Pending - 2
Sold - 14
Avg Listing Price - $1,549,000
Avg Sq. Ft - 2,112
Avg Days on Market - 73
Avg. Sale Price - $1,469,643

Condo/Coop/TIC/Loft

Active - 26
Pending - 3
Sold - 15
Avg Listing Price - $824,114
Avg Sq. Ft - 1,356
Avg Days on Market - 72
Avg. Sale Price - $747,167

For information in an area other than the one stated above, contact me and I will provide a detailed Report for an area of your choice.

11% Increase for June Home Sales - GREAT NEWS!

2009-07-27T11:34:00.000-07:00

Today the U.S. Department of Housing and Urban Development released a report for June Homes sales. newly constructed single-family homes spiked 11%. However sales are still 21% less than last year and prices are still continuing to drop.

What does this all mean?

This is a good indicator that the recession is bottoming out. We have to get all the inventory currently on the market into Buyers hands. Once we have done this, new construction will resume again which in turn will create more jobs and help to boost the economy into a more positive territory.

All this news is wonderful, although we have to continue to watch and see if this is caused by the tax credit. The tax credit at this time is set to go away in December.

Stated Income Available Now? Ture or False?

2009-07-26T10:28:00.000-07:00

YES! It is true. Mortgage California has been certified as the ONLY Lender in Northern California to offer a true STATED INCOME loan product on "A Paper" financing.

Some of the product Highlights:

3/1 and 5/1 products available
Rate 7 Term Refinance
Purchase
No First time home buyers
Single Family residence only
No Secondary Financing
700 Minimum FICO
Owner Occupied
Primary Residence
70% LTV (Loan to Value) to $3,000,000 Loan Amount

Counties include: Contra Costa, Los Angeles, Marin, Napa, Orange, San Francisco, San Mateo, Santa Barabara, Sonoma and Ventura.

Looking for an open House this weekend?

2009-07-25T10:51:00.000-07:00

Finally the weekend is here. For some it is time to relax, but for me in the business of Real Estate it's the time to work. The San Francisco Board of Realtors have created a wonderful website to search for open houses. No more driving around and wondering if the signs you see fits the home you need. Below you will find the link to the website were you can search for open homes in San Francisco. If you need information on a home that is on the MLS (which you can search at www.GeorgeLangford.com) but is not open please feeel free to contact me.

Enjoy and Happy House Hunting to all!

Cheers!
George

Consumer Knowledge Before Buying a home

2009-07-24T12:26:00.000-07:00

I have come up with a few things that I think the Consumer should know before purchasing a home.

1) Remember to ALWAYS shop around for a mortgage. Make sure to go directly to the financial institute you bank with. They may be able to give you a good rate based off of the already established relationship you have with them. Another great source would be a Mortgage Broker. They have the ability to shop around to multiple banks at one time. This Saves you from filling out multiple applications and will also ensure that you have every possible scenario available to you. They can also help with Create financing (Lower FICO scores, lower down payments, self employed & etc.)

2) Run numbers! Sit down and look at your monthly budget. Make sure that you are not stretching yourself . When purchasing a home you will have your mortgage, property taxes and insurance. (If condo or TIC insurance is typically billed into the HOA monthly fee.) A smart number to remember is that your Mortgage (Mortgage, taxes, Insurance or HOA if applicable) should not exceed 35-40% of your net income. All always remember to have a reserve amount of money that if you are to loose your job you are ablt to maintain your payments. Typically in today's Economy 6-12 months of reserve (Total Monthly Bills) should be sufficent enough.

3) Ask Questions! Don't assume that your agent or Mortgage Broker is telling you everything. (Although they should be in my opinion!) Take responsibility in knowing exactly what you are getting into. If you are not sure how someone came up with an answer have them explain it to you. Agents do this on a regular basis and to them purchasing a home is nothing, but to a consumer who does this typically 1-2 times in their life, it's the complete unknown. The more knowledge you have the easier it becomes to place an offer on a home.

4) Get Pre-Approved not Pre-Qualified. Today the lending industry is changing every minute. What is the difference between the two?

The distinction between the two is that pre-qualifying determines how much a lender will lend you. It involves obtaining a letter from the loan officer who looks at your debt ratios, gross income, and work history to see if you're qualified to make the monthly payments. This usually can take weeks while you wait for a pre-qualifying letter.

Pre-approval, on the other hand, takes it a step further and usually involves non-refundable fees. This process takes into consideration your credit history report, income verification, confirmation of down payment, and ability to pay closing costs. Once approved, the pre-approval letter lets the real estate agent and seller know you're qualified to negotiate terms.

This is VERY Important!! Sometimes we think that we can afford that $500,000 home but in reality we can only afford the $300,000. Also remember that just because you are approved at $500,000 doesn't mean you have to spend that on a home. Do what is comfortable for your lifestyle.

More to come. I will be updating on a regular basis with Tips and also Real Estate Terms that will help Sellers and Buyers be more aware in Today's market.

10 Dos and Don'ts for Selling a Home

2009-07-24T12:03:00.000-07:00

This market offers vast opportunities for home owners who have equity and are in need of a larger home to sell and make it a reality. Below is a list of Dos and Don'ts that can help you prepare your home for sale.

5 Dos

Consult a real estate agent (George Lanford) before prepping your home for the market. If you just start making changes, you may be focusing on things that are not as important as others. If you spend $1 you want to get that dollar back or maybe even more.

Make sure an agent (George) will have a strong online presence. The majority of house hunters begin their search on the Internet and then narrow down which ones to actually visit. 80% of home buyers start on the internet and making your home present on the internet is the key to creating exposure.... More Exposure = Greater Selling Price!! $$$$$$

Be certain your agent is knowledgeable about the area. He or she should have a good understanding of the local community, schools, recreation and politics to share with potential buyers.

Feature professional color photos of your home. This is as important for the Internet listing as it is for the printed brochures. The brochure should also include a detailed floor plan. Ask your agent to take local pictures of shops & Parks to highlight the area you live.

Have a clear understanding of the selling process. Familiarize yourself with the typical marketing time in your area, what to expect with a home inspection and any hot-button items that could be of concern. Also, be familiar with the contract process, attorney review, mortgage contingency, deposit escrows and closing time frames. In San Francisco or the Bay Area there are different City requirements that need to be completed when selling a home. For example: San Francisco is completely different than San Bruno or even Oakland.

5 Dont's

Don't just go with the agent who tells you your house is worth the most. Conduct some research to verify the pricing, and consider looking at the competition.

Don't just assume that the agent who sold you your house will be a good fit on the selling side. Interview more than one person to find out what each has to offer. There are agents that work directly with Buyers and directly with Sellers. Know what exact areas the agent you are using specializes in.

Don't ignore offers that don't meet your asking price. By not countering even low offers, you could easily discourage what may ultimately be a good offer.

Don't assume that your agent works full-time. Many do not, so be sure to ask.

Don't just accept everything your agent says. Get it in writing. Make sure he or she offers a written marketing plan with which you agree. Also, understand that once you sign, you are locked in to a legal contract for the term agreed upon.

** Most importantly don't be afraid to get creative. Your agent should not be doing the "norm" in this not so "normal" market. Contact me to hear about my selling techniques that are different for Today's market.***

Multiple Offers Up In June Vs May- 2009

2009-07-23T11:01:00.000-07:00

Redfin announced today that 80% of offers this month so far have been made on properties with multiple offers. That is up from 69% last month. This was reported on the website SFGate.com.

This is a good indication as to the market, but we also have to realize that this is only what Refin is reporting. We have not had any agency like NAR (National Association of Realtors), or CAR (California Association of Realtors) report any stats like this at the moment.

Personal Note: I would agree that in the areas that they are reporting (East Bay & Central Valley) we have seen an up turn in the number of homes being sold. On the other hand though this is nothing like 2006-2007 when we were seeing multiple offers going 10-20% over the asking price.

San Francisco has seen an upward movement in the amount of properties that are currently being sold. We are even seeing on homes that are priced correctly and show in excellent condition are moving and even getting multiple offers.

Over all Market: Now is a wonderful time to buy. We have loan products out there and available to everyone. We are still able to finance 3.5% down payment, credit scores down to 580, closiong costs negotiated to be paid by seller and stated income for self employed is available. If you can afford to buy now and it makes sense financially.....Call me Today!

** Blog post to follow with more information on Self Employed Stated Loans now Available**

Article Referenced in above remarks: http://www.sfgate.com/cgi-bin/blogs/ontheblock/detail?entry_id=44120&tsp=1

New Website

2009-06-24T01:00:00.000-07:00

I am very pleased to have made a major upgrade to my website. I hope that the new site will offer my clients and the public and much better and easier way to navigate the scary world of Real Estate. I am very excited to the new changes that will be coming in the future. A few things to look forward to in the next week will be: Search for home for sale by graphing a map with pop out windows, mortgage section with a weekly mortgage update provided byMortgage California, about section will be completed with a detailed description of who I am and much more. I hope that everyone enjoys the new site. This is a work in progress but is wel worth it.

www.GeorgeLangford.com

Welcome to George Langford's Blog

2009-06-22T16:05:00.001-07:00

Welcome to my new real estate Blog. Please check back often as I will be posting regular updates.

Sincerely,
George Langford