Avoid Mortgage Rip offs

A new book Mortgage Ripoffs and Money Saverswill be a must read for every home Buyer, Seller and Realtor in the country... and it may be one Lenders and Mortgage Brokers should read too.

As a Realtor I've been confounded and confused by the numerous and odd charges listed on my clients Closing Statements... if I'm confused, imagine how my clients felt. I even had one client who got "ripped off" by a "friend" when they bought, and due to the massive pre-payment penalty they also got ripped off when they sold. This Broker was so bad his negligence probably cost my clients a home that they were the highest bidder on, then stuck them with a terrible loan. I'm convinced this "friend" was a rookie who didn't know any better... but imagine if a "friend" could cost you that much, how much an unscruplous lender could get away with?

After reading Bob Bruss' review of Carolyn Warren's book... and then seeing on Amazon.com that 21 out of 21 reviewers gave the book a 5-star rating (I've never seen a 100% rating and I order and review tons of books on Amazon) I had to get it myself.

For $12.21 on Amazon (cheaper if you buy used)... this is a MUST READ whether you're Buying or Selling today or 10 years from now.

Order it by clicking here: Mortgage Ripoffs and Money Savers: An Industry Insider Explains How to Save Thousands on Your Mortgage or Re-Fi or I'll provide another link at the end. In fact... if you know anyone thinking of Buying or Selling... order extras... this book as a gift will make you a friend for life!!!

As Bob Bruss states... "this (book) is vastly different because it reveals the insider secrets even many mortgage professionals don't know." This will be required reading for everyone of my clients from now on... I'll be ordering in bulk and handing out free copies whenever they let me know they are "getting ready" or "getting serious". Finally... my clients and I can rest easy... saving hundreds... and YES... THOUSANDS of dollars if not tens of thousands of dollars in rip offs.
Order it now... or please do contact me if you're thinking of Buying or Selling... and I'll hand deliver a copy when we meet.

Stale listings report - Single Family's over 90 days

"Deals" are rare in San Francisco... even our slow markets would be consider "Seller's Markets" in most of the rest of the country... but there are ways to find deals. The simplest one is to focus on "stale" listings... those properties that have been on the market for at least 60 days...

This report is for Single Family Homes of any size and price range throughout San Francisco that have been on the market since at least April 10th... roughly 90 days.

SFR Report - 90 Days

Since there are 78 homes listed I can't provide the "Detail" report which has extra photos. So I have two recommendations for getting full details. First - visit the #1 MLS search site... SF-MLS-Search.com and enter the Listing Numer or find it using the Map. Or, feel free to email me with the Listing Number or the property address and I'll reply back with the "Detail" report. Please track down my email at www.RobRegan.com(I'm trying to avoid spam by not spelling out my address).

"Stale" Condo report

These are all the "Condos" they have been listed for sale since April 10th... roughly 90 days.

Condos - 90 days

Again, please use SF-MLS-Search.com to find more details... and for tax info or past sales you might find more info at PropertyShark.com or Zillow.com.

Of course I'm also happy to receive an email from you (if you don't have another Agent who can do the same for you) with the Listing number or the property address, and I'll reply back with the "Detail" report and as much other information as I can find.

Don't forget, you can set up an Email Alert service to get NEW listings sent to you that match your criteria. There are 3 services that do that - exclusively in San Francisco. These three are:

SF-MLS-Search.com
CleanOffer.com (you must enter my name to get access: Rob Regan)
Automated-HomeFinder.com

Each has it's own unique benefits.... and all are FREE!!!!

San Francisco prices up

According to DataQuest home prices were up 8.4% over this time last year in San Francisco. The Bay Area as a whole was up 3.4%. Solano and Sonoma Counties continue to suffer... if you're looking for "deals" those are the counties to visit. In San Francisco these statistics are "old news" to those of us with feet on the street. In fact, we're now in the summer slow down. In April & May the market was very hot with a lot of multiple offers and fast sales.

If you read my older posts you'll see I had been predicting this market for the past year or so. With interest rates remaining low, and still many all-cash or high-cash offers here, and virtually no such thing as a San Francisco foreclosure, the San Francisco market is strong and steady.

Buyers have come to discover that there are few places as beautiful as San Francisco, and within the city, there are some neighborhoods that are more desirable than others. And in those areas, you pay a premium if you want to own your home. If you'd like to know more about what makes one area more desirable over another, give me a call or drop me and email. I can explain fog lines, which neighborhoods have the best restaurants and shopping, the best views, and so on.

How much can you save with a Discount broker?

I just got an Evite to a charity event from an acquaintance who recently bought a San Francisco condo through a new discount brokerage. One of her co-hosts Sold his Loft using the same discount brokerage. They mention in the Evite that the discount firm will donate $1,000 to the charity for any business they drum up at their event.

So obviously the two hosts are happy - right? After all, the Buyer got a 20% refund on her Buying commission - at a $1,650,000 purchase price that's an $8,250 rebate. Not too bad - right?

The co-host Seller was able to list his Loft for 1.5% instead of 2.5% and is happy because he got his $589,000 Asking Price so he "saved" almost $6,000.

However, I know better. San Francisco is a complex and difficult real estate market to navigate. You have to be careful in analysing each property, and the market, before figuring out your offer price or your Listing price. So choosing the right agent and brokerage can end up saving or costing you a lot of money. Knowing this, I did some research to see how these two "really" did.

As it turns out, my quick "CMA" (Comparative Market Analysis) which indicates "fair market value" seems to indicate that the $1,650,000 was probably at least $50,000 too high - if not $100,000. So her $8,250 rebate may have cost her at least $40,000.... $40,000 that went directly into the pocket of the Seller of that condo who used a well known and respected Brokerage... the Seller is probably still laughing all the way to the bank since they bought the property for $150,000 less just 9 months earlier. Ouch! That's 10% in appreciation. According to the DataQuick numbers I've used in previous posts appreciation was less than 2% during that time frame. That's why I say they over paid by "at least" $40,000. It may be as much as $100,000 even after factoring in the so-called "savings" or rebate.

Then I looked at the Loft Seller's situation. Six weeks before his Loft sold, another Loft in his building on the floor below that was 141 SqFt smaller sold for $599,000. In fact, within a 1/2 mile radius of these 2 Lofts, 19 Lofts sold in the previous 7 months and only two sold for cheaper than the co-host "saver" of commissions. So what does the math work out to be? The 1.5% commission cost him $8,835 to net $580,165 before other costs. The $599,000 seller paid $14,975 netting $584,025 before other costs. So... the Seller with the smaller condo netted about $4,000 more. And that doesn't take into account the other 15 Lofts that sold for a lot more... his "savings" looks to me to be about negative $15,000 to $30,000.

Another discount broker was the subject of a 60 Minutes piece a few weeks ago. The NAR is up in arms because they felt their voice wasn't heard. One full service agent was interviewed, and didn't know how to answer the "savings" question. Unfortunately for the TV segment she's probably just too busy making her clients "real" money or savings, not phantom ones. This is a pet-peave of mine.... general media pieces written or produced by people who have no expertise and don't even bother to scratch the surface, let alone sniff out the reality of complex issues.

The truth is that if these were "real" savings, then Discount Brokers would rule the day. Buyers are smart - they determined they didn't need Travel Agents years ago... but they still rely on experienced professionals when it comes to the largest financial decision in their lives.

And why - with these kinds of "savings" that non-real estate professionals think they are getting - haven't discount brokers gained much of a foot hold after years and years of trying?

My personal opinion is simple.... why would a Realtor who was an expert, who had a lot of happy customers, decide to earn less and move to a Discount Brokerage? The answer is that they don't. The only types of real estate agents that these firms can attract are either those who failed elsewhere, or just got their licenses. So they don't know what they don't know. They don't know how to Sell a Loft for over $600,000 and not $589,000. And they don't look at a $1.65 million property, and realize it's a simple check of past sales to discover only 9 months earlier it was only worth $1.5 million to a buyer represented by an experience agent.

The analysis I did, and do every day, looking at "fair market" values takes some time and expertise. Then it requires Sales & Negotiation skills to get my Seller's the highest possible price, and my Buyers the home of their dreams for the lowest possible price. Unfortunately for the two people who are so nobly contributing their time to a charity, ended up contributing a lot more to the people on the other side of their transactions.

If you are considering Buyer or Selling, please call an agent like myself, and interview at least 3 Realtors before making a final decision. Hopefully we can help you see the difference during the interview process... not after you've lost thousands and thousands of dollars thanks to un-skilled or inexperienced advisers.

Property Search service

If you've yet to try the service that allows you to search by Map - it's got a new and improved look. This screen shot is of San Francisco, and the mouse is hovering over one property so that you see it's basic details. If you then click it takes you to the Full Detail page.



You can use the criteria selectors on the bottom of the page to choose property types and price ranges. And then select portions of the map for area specific searches. Finally, you can Save Searches and set up auto-email alerts for those searches, and you can save specific properties to return to see what's happened with them. Try is out at www.SF-MLS-Search.com/welcome.html

Pricing trends in San Francisco - ALL TIME HIGH

March numbers appeared to be off in San Francisco, but then April went up quite a bit.

In March 2006 median prices were $769,500 and dropped to $753,000 this March.
Then April shot up to $790,000.

$790,000 is actually the highest Median Price for San Francisco EVER!

That is - at least according to DataQuick. Originally it was believed that the market peaked in the Summer & Fall of 2005. In fact, October 2005's $778,000 Median price remained tied for the highest with April 2006 and June 2006. Now, April 2007 is 1.5% higher than all previous peaks.

What does this mean for the market? Well, this is not a significant over all price appreciation, so this isn't necessarily an "investors" market. I personally know several investors who do quite well within San Francisco. But they focus on multi-unit fix and flips. For residential real estate - it simply means that San Francisco is on what appears to be a never ending upward climb.

San Francisco is a unique city. There is virtually no foreclosure activity, and the sub-prime mess is a blip on San Francisco's radar. All-cash buyers, and wealthy buyers abound. New York City with price per square foot well into the $1,000's with HOA dues nearly 2 to 3 times higher than San Francisco continues, in my opinion, to be the my measurement for where San Francisco prices are likely to go.

Today in San Francisco buyers are beginning to see $1,000 per SqFt prices and complain. Soon, it may be that anything below that number is considered a bargain, not the norm.

Where to find the Bay Area real estate bargains

If anyone is looking for a Wine Country home... this year appears to be the year. Prices keep falling off and For-Sale signs seem to be everywhere. Median prices in Napa and Sonoma are $563,000 and $519,000 respectively compared to well into the $600's in Napa and the high $500's for Sonoma last year. And for those looking for Foreclosures and sheer investment properties Solono Country appears to be suffering the most with Contra Costa finally seeing some signs of strengthening.

Scroll down to the bottom of this page to see the numbers for yourself: http://www.dqnews.com/RRBay0507.shtm

Latest Real Estate Statistics

San Francisco prices are up 2.4% in February from a Median of $740,000 to $757,500. One reason - in addition to continued low interest rates - is that there just isn't much for sale. The number of homes that have sold dropped dramatically - down 12.6% from last year.

As usual, the overall Bay Area figures from DataQuick (which includes "inferior" areas - or rather non-"Super Star" areas) show a flat market with 0.3% price growth and the lowest number of homes sales since 1996.

San Francisco too has "super star" areas and neighborhoods - anything in the Northern parts of the city. So the Marina, Cow Hollow, Pacific Heights, Russian Hill, North Beach, Telegraph Hill, Presidio Heights - all remain strong markets. Other neighborhoods with plenty of sun shine and retail shopping like Noe Valley and Cole Valley remain strong. And Single Family homes as well as Condos remain strong.

However, TIC's are off sharply, as are neighborhoods with lots of fog and little San Francisco-specific character.

Cash buyers remain plentiful in the most sought after parts of town and most desirable properties. Yet, few Sellers seem to want to give up their cherished properties at any price. So the "stand off" that DataQuick refers to is of a different sort in these areas.

Spring: "Moderate Increase" expected

DataQuick's November homes sales report for the Bay Area and San Francisco came out. You can read it here.

Once again the Bay Area's prices were down (1.4%), while San Francisco was up (0.7%) from November of last year. The quote from the report that jumps out at me is from DataQuick President Marshall Prentice who said "As prices stabilize and sellers get real about asking prices, a lot of the fence-sitters will jump in. We could see a moderate increase in sales counts".

In fact interest rates are incredibly low, and given that his comments are about the Bay Area in general, San Francisco is likely to see an even bigger boost in sales counts and price appreciation. In this "slow" market San Francisco has held up and even increased. As "fence-sitters" jump in, San Francisco may well see a decent run up in prices.

If I were a buyer I'd try to get in before March or April when sales heat up. And if I were a Seller I'd prepare my house for a March or April listing. Sellers - click on the "Free Home Value Service" link for a price evaluation report. Buyers, search for homes at either the "MLS Property Search" service, or "Auto Email Home Search" or at "CleanOffer".

Interest rates hit 2006 low

According to Bankrate.com the average California Jumbo interest rate is below 6%!!! With everyone predicting 7% to 8% interest rates, and indeed it hit 7% earlier this year, the sentiment was that the market had to fall. But what now?

I've been saying for several months now that I thought San Francisco would get hot again by or during the Spring of 2007. With interest rates this low, that's making my prediction a stronger one.

I keep hearing reports of how tough it is in nearby markets - but near San Francisco is NOT San Francisco. Prices are UP this year compared to last year, and 2006 was "slow" in comparison to the last couple of years.

What will 2007 bring? Honestly it is anyone's guess. But there are plenty of Buyers around, still not that much for sale, and buying power is at it's highest since 2005. Buyers ought to be on the look out and ready to snap up anything they like before prices rise again, and Sellers should gear up for a Spring-time Listing.

Condo prices up 2.5% & SOMA high-rises

From the San Francisoc Chronicle on the high rise developments in the SOMA & South Beach neighborhoods
"Luxury Residences"

Finally some quotes from general media sources that are catching up to what I've been saying for a while now. This from the above article:

"So far, the San Francisco new condo sales, for the most part, have been sheltered from the kinds of decline other segments of the Bay Area housing market have seen. At the highest end, the market is an island governed by its own set of rules with buyers who have few financial constraints or in some cases are shopping for their second or third home."

Luxury market hits record high

According to First Republic Bank's "Prestige Home Index" San Francisco's luxury market ($1 million or higher) is now at a record high of $2.96 million. That is a 1.1% increase in the 3rd quarter over the 2nd quarter of this year, and 4% higher than the 3rd quarter of 2005.

So much for the Bubble pundits - one of whom I just saw is going to try to charge for his blog. All he does is posts rants and raves about the market and people in it... now I can't see if he'll avoid this report since it flies in the face of his never ending bubble prediction.

Interestingly too is that San Francisco's luxury price of $2.96 million is higher than both San Diego's at $2.18 million and Los Angeles at $2.37 million.

Most Active Home Sale months in San Francisco

I nearly forgot, but while researching for my previous post, I took a close look at number of homes sales per month. This is the "scary" number the mass media reports to say "homes sales dropped 34%" or whatever the latest figure is. Yes but... did price drop??? My previous post answers that - seasonally they do from one month to the next month, but year over year has been flat to slightly up the last 7+ months.

But what about those scary home sales numbers? Well, 2006 total homes sales appear to be off by about 20% from last year. But last year was the best on record. I believe this year will be the 3rd or 4th best on record, so plenty of homes are selling. But upon closer inspection, both years proved what most Realtors know.... that the highest number of sales occur in May & June.... BUT this is a tad misleading because this is when they "Close" and are reported as "sold". With most homes closing in 30 days, the actual sale is a month earlier. So if you're wondering when to sell, April & May are the most active months.

Next on the list are February & March, and then July through October. These 6 months appear to be roughly similar. The worst time to sell is December and January, with February a hit or miss month.