A Piece of the Pie

Cute bargain home in Berkeley

This cute little home  just came on the market at $270,000, which is a great deal for Berkeley. It one won't last long but with many buyers taking a break for the holidays, there may just be a chance for a first time buyer to swoop this up.  

Details:

Address:  3108 Deakin St.

Price: $270,000

Space:  3 bedrooms and 1 bathroom in a relatively spacious 1355 sq ft on a 4500 sq ft lot

Type:  REO

Hmm, not sure if there's an issue that isn't showing up on the MLS or if this one is just priced to sell.  

 

Why We Do the Oakland is Home Workshop

Hey East Bay community!  We're having an event tomorrow about sustainable property ownership and you're invited!

There's a flip side to the devastation our communities have experienced due to the foreclosure crisis. Buying a home has become a lot more affordable, interest rates are crazy low and now is the
best time in a while to sustainably buy a home. 

We put on this event because people from the community asked for it.  We are also concerned about the devastation communities experience when a large number of owner occupants are forced to leave because they have lost their homes and investors move in.  

We hope that by educating the community, more people will achieve their homeownership dreams here in Oakland in a way that is sustainable and lasting.  

Here are the details:

Oakland is Home is a community gathering and panel discussion about sustainable property ownership in Oakland. Come learn about programs for first time buyers, the home buying process, how self-employed people can prepare to qualify for a loan and more!

Reception starts at 6pm. Light refreshments will be provided. Soulful music offered by dj fflood.

Panel discussion moderated by education and social justice advocate Patricia Rocha-Malone. Patricia is the current organizer for Mix It Up East Bay. 

Panelists:
Farrah Wilder, Realtor - BHG Mason McDuffie Realty
Sheri Powers, the Homeownership Center Director of the Unity Council
Heather Headley, Sr Loan Consultant - Mason-McDuffie Mortgage
Kevin Skipper, Broker - Rooster Realty
Sandra Smith, Sr Loan Officer and FHA specialist - Prospect Mortgage
Brady Thomas, Loan Consultant - LaSalle Financial

Nationwide prices down, Oakland prices up

For the past four years, our country's economic woes, including the devastating credit and foreclosure crises, have consistently been headline news.  Nationwide, millions of households have been affected by foreclosures and home prices have plummeted.  Based on this info, people often begin the process of purchasing a home with incomplete information.

Well aware that getting a loan can be difficult, once preapproved, buyers are relieved and hopeful.  If the national news is any indicator, there are a surplus of homes sitting on the market and sellers are desperate to sell.  Homes should sell for less than asking (or at least not more), buyers should have some time to consider whether they want to purchase a particular home after seeing it and before making an offer. 

What national news and even local news, unless extremely local, tends to miss is that real estate markets vary widely.  While prices continued to drop nationwide during the first part of this year,  Oakland prices actually increased 13%.  And this is unique for Alameda County, Oakland was one of only three Alameda County cities where prices increased.  

Another statistic rarely discussed is what percentage of homes are sold for more than the seller's asking price.  Again, the news would suggest that people are getting deals and to most people, a "deal" means that they are able to purchase something for less than the asking price.  Most Realtors in the Bay will tell you that plenty of homes are still being sold for more than asking. Right now, some of my clients are able to purchase a home for less than asking but on the more competitive homes, that's not always the case. And motivated sellers who can afford to price their home aggressively are doing that and pricing them below the market value.  I looked at MLS data for the 448 homes sold in Oakland between January and April of 2011 and found that 42% sold for more than asking.

The good news is that first time buyers who never thought they could buy in the Bay are buying great homes at prices that are much more affordable than they were several years ago.  Most have been able to secure great interest rates and manageable 30-year fixed loans.  After what can be a crazy process of rushing to beat savvy investors, trying to figure out how much is too much when it comes to repairs needed on an older home and determining what to compromise when assessing the options in their price range, many first time buyers are happy to have purchased in the most affordable and sustainable real estate purchasing environment in many years. 

Can't afford the space you want....?

...could be worse.

Many first time buyers in the Bay can't afford their dream home. Maybe you probably can afford a larger home than this one.  Enjoy!

Great article provides negotiation tips for buyers

Oh how I love Tara-Nicholle Nelson. Once again she hits the nail right on the head with a thoughtful, thorough and useful article for home buyers. This time, she lists some of things that some buyers do that could turn sellers off. 

In a market, like Oakland, where things aren't as easy for first time buyers as the media often suggests, this article provides great advice. 

SFGate article offers useful tips for Bay Area bargain seekers

Several days ago I showed a cute little home that was bargain basement priced in the low $100,000's. It was small but well maintained and situated on a nice street in Oakland's San Antonio area.  The price seemed too good to be true, sure the living room and kitchen were a little dark due to the close proximity of the house next door but we couldn't find a real issue with the home....at first.

As we walked through the living room, suddenly, we heard banging and the booming bark of a huge dog.  A very large pit bull was protecting the narrow walkway between his home and the one we were inside of by barking angrily and throwing himself against the living room window. After uncovering the secret behind the low price, we gave our new friend the satisfaction of a job well done and left.

Sometimes the flaws of a bargain home aren't so obvious.  This SFGate article is a must-read for home buyers seeking a bargain in the Bay Area.  It offers great advice on evaluating homes, particularly older homes and homes that have been sitting on the market. 

Repairing our troubled relationship with home ownership

In a sea of conflicting messages about homeownership, especially in the Black community, the decision to purchase a home can be tough. On the one hand, we’ve been bombarded with messages telling us that owning a home is a part of the American dream and a relatively safe way to build wealth.  Yet for the past three years, news headlines have described hundreds of thousands of foreclosures.  Because we see the devastating effects that the boom and bust cycle of recent years has had on our community, we know that in many cases, the people behind the numbers are people of color. 

Our more difficult experience with property ownership is not new.  African Americans and Latinos have historically had a lower rate of property ownership than other ethnic groups.  The data that I was able to find indicates that from the ‘70s through the ‘90s, only slightly more than 40% to 45% of African Americans owned homes compared to nearly 70% of White Americans.  Currently, African American and Latino homeownership rates have crept up to about 46% and 48% while nearly 75% of White Americans now own their homes.   According to Loren Schweninger’s book “Black Property Owners in the South, 1790-1915,” published in 1997, to varying degrees, this disparity has always existed.

Those of us who have achieved property ownership have done so despite great challenges.  Under the United States’ system of institutionalized discrimination against African Americans and other groups that existed until the mid-1960s, it was perfectly legal to deny African Americans equal access to many of the basic tools for wealth creation, such as education and jobs, that would have allowed them to earn and save enough money to purchase property.  Through the 1960s and beyond, even when African Americans (and often other groups of color) had the resources to purchase property, they faced many barriers. Redlining, discrimination from sellers and neighborhood associations, and policies instituted by cities, the Federal government and other government entities kept many of us from becoming home owners.  

African Americans who have been able to acquire property  have always faced a higher risk of losing it.  A notable example of this occurred when tens of thousands of African Americans who had been given land by the government during the Civil War were, after the war ended, forced by government order to return the property to the original plantation owners.  In the years since slavery was abolished, African American landowners have lost their land in a variety of ways. Some had it taken from them by theft or forced partition sale.  Many African American farmers lost their land due to discriminatory lending practices by the USDA.  Here in the Bay, thousands of African Americans, including homeowners, were forced out of their homes in San Francisco’s Fillmore District in the 1960s and 1970s.  And in the few years since the foreclosure crisis began, the rate homeownership has declined for African Americans more that it has for any other group.

Since we have heard these stories of loss from our parents and grandparents and we are seeing it continue in our communities, it wouldn’t be shocking if many of us stopped trying to purchase homes.  With the down payment and closing costs of the average starter home in Alameda county ranging from about $15,000 to $30,000, why would someone making an average salary commit to saving and then spending so much money on something they might lose?  Why not just continue to rent?       

The answer is simple:  African Americans deserve the same opportunity as any other group to sustainably own real estate.  Although not all of us will seek to become property owners, when we do, it should generally be beneficial and should not be more risky or financially harmful for us than it is for people of other races. Just as we demand equal opportunities to become doctors or members of our friendly neighborhood country clubs, we should expect and seek an equal opportunity to achieve sustainable property ownership.  Just as we continue to protest injustice, donate to causes, and embark on journeys where we are the first or one of very few African Americans to do something, we should continue to value and seek sustainable property ownership in our community.

When done sustainably, property ownership increases wealth and offers a means to pass that wealth on to future generations.  Even during a down market, I’ve helped people sell homes for 15 to 20 times the price that their parents or grandparents paid years ago to buy those homes.  Also, property owners have more control over how their property can be used and don’t have to worry about rent increases or being evicted by a landlord who decides to move in or do a massive rehabilitation project.  Furthermore, today’s home buyers are getting loans that are much more sensible so they are much less likely to lose their homes because of a crazy increase in their mortgage payment.

Sustainable property ownership is one of the keys to full participation in our society and it offers a means of acquiring a great deal of wealth.  We must educate ourselves on how to own property sustainably and continue to fight the unique challenges regarding property ownership that continue to plague our community.

East Bay buyers see market shift in their favor

For the past three years of economic crisis and the explosion of foreclosures and short sales resulting from it, the East Bay’s real estate market has gone through several major shifts.  Beginning in 2007 and through 2008, the market became flooded with bank owned properties and people were hesitant to buy homes.  Those brave enough to buy found little competition and more abundant government down payment assistance. 

Confidence eventually rose and more first time buyers and investors entered the market while lenders and PMI companies sought to minimize their risk by tightening lending standards. The market shifted in sellers’ favor, especially after the Federal and State tax credits were announced in late 2009. It wasn’t unusual for a listing to receive 20 to 30 offers within its first week on the market.  Sellers demanded quick closes and short contingency periods and their willingness to offer concessions like closing costs credits or home warranties evaporated. 

Since the late summer, the market in the East Bay has begun to shift back in buyers’ favor. 

This Redfin article gives a great summary of the Bay Area’s real estate market. October’s sales were down from where they were a year ago.  Although the Peninsula and San Francisco are still seeing bidding wars, other areas are slowing down.  Sellers may not be fully on board with the slow down:  “(a)s the Bay Area prices enter a winter lull, Bay Area buyers and sellers are still at a stand-off on price, with many Redfin buyers seeking 5% – 10% discounts off the asking price, while most sellers are usually only willing to give 2% – 4%.”

The shift back to buyers’ favor has been dramatic in the East Bay, especially on properties that are less attractive to investors such as single family homes over $150,000 and condos.  In Oakland, there were about 100 fewer closings (228) this October than last (324).  Homes are also staying on the market longer.  This October, closed homes had been on the market an average of 37 days while last October they had been on the market for 34 days.  Prices, however, were relatively stable. The median sold price for October 2010 was $258,170.  Last October it was $257,500.  The average sold price was up $6,000 from $258,200 to $264,000.

This market is the most favorable market for buyers in years.  Interest rates are still very low – rates on loans with a 30 year fixed rate have consistently been below 4.5%.  Competition on homes is way down and sellers may be more willing than they were in more competitive times to offer concessions and accept offers from buyers who are using government programs.  Furthermore, as the holidays approach and the days grow shorter, more buyers will leave the market which offers more opportunities for the buyers that remain. 

Of course, it’s still more difficult to get a loan and homes in popular neighborhoods that are priced attractively and are move-in ready are still seeing a great deal of competition.  Also, many government programs have less funding or they have run out of funds. 

artHouse openHouse at 7008 Outlook Ave

I have a listing coming up that I thought was just perfect for hosting cocktail parties. So, instead of having the same old boring open house, that's exactly what we're doing! 

7008 Outlook is a spacious, 4 bedroom home located in the East Oakland hills. It has two decks and views of San Francisco from the master bedroom. 7008 Outlook is on a large, beautiful tree-filled lot that is reminicent of a Tahoe vacation home. 7008 Outlook is gorgeous and move-in ready.

artHouse openHouse is for everyone, people in the market to purchase a home and those who just want to enjoy great art, music and food.

artHouse openHouse will feature art by talented local artists including Jack Eastgate, Alicia Kester, Michael Orange, Jonathan Holt, Deadeyes, AshRose. Chris Hambrick of Bungalow13 is curating.

DJ fflood will be spinning laid back soulful beats.

 

The event will be from 4pm to 8pm on Wednesday October 27th.
Click here for more info - http://client.bhgrealestate.imprev.net/24/4624/20650/20650.ipv

Thanks Mom and Dad!!

Before the housing bust, saving wasn’t a major priority for Bay Area young professionals.  Not only, to the chagrin of Suze Orman, were we in a society and era that promoted mass consumption, buying a home was so much more expensive than renting that there wasn’t a huge incentive to save.

Enter the housing bust beginning in 2007 and the rapid decline in home prices and interest rates.  Suddenly, especially in many East Bay cities, buying a home became much more affordable.  Deals were all over the place but the Bay’s young professionals were at varying levels of preparedness.  Most simply hadn’t lived a lifestyle that prioritized saving for a down payment and closing costs.  Others hadn’t had enough time working (or enough raises) to save while managing school debt and the Bay’s cost of living. Still others hadn’t fully overcome the credit issues from their youthful transgressions.

No matter what, there was little doubt that with the ability to buy a home with monthly payments that would be equal to or less than what they were paying in rent, now was the time to buy a home. At first, the market was slow and sellers (especially bank owners) were willing to give credits to buyers for their closing costs. Also, the law was allowing sellers to provide buyers with a gift for their down payment.  This was all great; buyers were able to buy a home without having had to save for years. 

That changed as competition on homes increased and it became a seller’s market.  Buyers asking for credits were easily beat by cash buyers or buyers who could buy without asking for concessions.  To make it even harder for buyers, the government banned down payment gifts from sellers and reduced the amount of money that sellers could credit to buyers for their closing costs.  Lenders also became much more conservative, requiring evidence of reserves or evidence that the buyer had money over and above the amount required for the down payment and closing costs.  Enter Mom and Dad.

Not everyone will have parents who are willing or able to help them. Even if they are able, some parents have more to give than others while other parents will be reluctant (even they offered the help in the first place) or will require repayment.   No matter how much or little they give or what stipulations come with the offers, many first time buyers would not have been able to buy without their parents help.  It doesn’t have to be Mother’s Day, Father’s Day or a birthday to express appreciation to all of the parents, friends and relatives who have helped us buy when we would not have otherwise been able.