A Good Time to Buy? Or Not.
by Ron Gable - Our VP/Manager in the HMB REVIEW 11/1/07

I always marvel at how the economics of our industry swings as the exterior influences affect the economy. Last year, the media was still talking about multiple offers and crazy things buyers were willing to do just to get sellers to accept their offers. The word overbid became commonplace in our real estate jargon and several slang words for overbidding were part of our normal dialogue.

People would talk about the number of offers on the properties they were selling, or buying. Neighbors would talk about houses down the street. “They got 6 offers…we got 8 offers…it sold for $100,000 over…we were able to get it for only 5% over the asking”.

Now in some markets particularly in parts of San Mateo County, some of those scenarios still exist. We are not seeing it in the degree we did at the height of the frenzy but are seeing some of it nonetheless. Because of the turmoil in the sub-prime market, the market dealing with high ratio loan to values particularly in the lower or starter price ranges has slowed quite a bit. Many of these “sub-prime” loans were made to borrowers who could not verify their income, had less than stellar credit and minimal or no down payment. Although there are still loans available for buyers that have moderate credit and can’t document their income, they do need a small down payment. What surprises me about this is that with some buyers not able to buy, many that are seem to be sitting on the sidelines. What I am sensing is that the feeling is “It’s not a good time to buy”. Because there are fewer buyers in the market, there are more available properties which means that some homeowners would be willing to accept less or offer more favorable terms than they would just a short time ago. And yet with all the negativity in the media, some buyers would rather sit it out. “It’s probably better to wait until the market and the other buyer’s situation improves. It will be more fashionable to buy then and I can feel good about beating

FORECLOSURES IN THE COUNTY HAVE TRIPLED (COAST ISN'T SO BAD)


There was an interesting article in the San Mateo County Times the other day. It appears that the current real estate market media hype, in the land of the sub-prime borrowers, has finally hit San Mateo County. Foreclosures are definitely more prevalent in areas where sub-prime loans were given to borrowers with less than average credit and with low down-payment. If it isn't just losing control of your debt situation sometimes people are also faced with "life" and the unexpected. Unfortanately, people cannot afford their home anymore.

Because it is our goal to provide excellent service we like to refer our clients to the most qualified lenders in the industry. One person who we like to work with is our good bud over at Lawson & Associates, Gabe Bodner. Gabe is so educated in his craft that he would never want to see his clients in the financial positions where they were in fear of losing their dream home.

According to RealtyTrac.com, there are currently 7 homes in pre-foreclosure and 5 homes ready for auction on the Coast. That is not too bad considering there are cities California where they are facing foreclosed homes in the 1000's. Ouch.

To save yourself from Foreclosure, here are some tips (Taken from the HUD website):

1. Contact your lender, immediately
2. Talk to a housing counseling agency, such as HUD
3. Prioritize your debts
4. Explore Loan Workout Solutions
5. Call your Realtor
6. Beware of Predatory Lending Schemes

FINALLY...OUR FALL IS HERE!

BLUE SKY BABY!


It has been rough the last couple of weeks. Rain, wind, some fog, overcast. We are so spoiled in late September and October. The days on the coast when there is nothing better than stopping by the pumpkin patches on Highway 92 then spending a day on the beach. We are pleased to announce that today was a picture perfect day. Light wind, 70 degrees, and what locals call pumpkin traffic. Don't worry - it goes away.

Fall is in the air. The Real Estate market usually picks up a little too. Good news, last week, 7 pending sales in our inventory (South HMB to Montara). As of today, 113 single family homes. If you can believe it, that is almost the same number of homes on the market as last year.

WHAT DO YOU EXPECT AT AN OPEN HOUSE?

Our Sunday's are usually dedicated to our clients and open houses. In this market, open houses are more important than ever. It is important for seller's to open their home especially for the first two weeks after the house is put on the market. Feedback from potential buyers is precious because there are things you can change such as moving furniture, trim a few branches, paint rooms, etc. But, there are also items that are unchangeable, such as, floor plan design, change countertops or even remodel. The bottom line, is that you can hear what they are saying.

For buyer's, on the other hand, it is a time for you to see a flurry of homes all in a day. You can also compare the neighborhood and also compare what is on the market. Most of the time, it is difficult for us to show 10 homes in a day. And when you can go at it alone it is nice to go at your own pace.

We love holding open houses, but we also like to be respected as professionals, not pushy agents. For those who do know us we are not heavy sales people and want to make visitors feel welcome when they visit a home.

What is your experience like when you visit an open house? How do most agents make you feel? What do you like about them? What don't you like?

I am interested...any comments?