Team Perotti
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Don't miss this great home in an easy-access location! While this 3 bedroom, 2 bath home is in need of some cosmetic TLC, it offers great location, flat lot, loads of space. More
In a visit to Chicago this week, Cliff met with several real estate brokers to get a sense of the status of real estate market recovery across the U.S. As many of our clients are finding out, we are experiencing a boom in the real estate market in Marin and San Francisco, with multiple offers being seen across multiple price bands. Coupled with an inventory shortage, these markets are seller's markets, at least in the short term. The Chicago market has been moving much slower, with significantly reduced (30+% in some cases) prices. The short sale and REO portion of the market appears to be a larger part of the Chicago market at the moment than in the SF Bay Area, but the occasional multiple offer is starting to show up. Just one more sign that the low housing prices, low interest rates and pent up demand are about to launch that perfect storm.
If you are living in your home during the time it is being marketed for sale, it will stir 
up lots of memories and emotions. One’s home is one’s sanctuary, and it is a little odd to invite perfect strangers (“guests”) into our homes so they can decide whether or not they want to buy the house. It is a necessary evil to get the house sold quickly and for top dollar! Remember, the way you live in your home vs. the way you market and sell your house are two very different things. Everyone knows that a staged house garners top dollar vs. a house that is not staged. So, how much staging does one have to do to make it worthwhile?
According to the 2011 HomeGain Home Improvement National Survey, the top five nationwide home improvements that Realtors recommend to home sellers, based on average cost and return on investment (ROI) to sellers, are:
My philosophy is simple: Less is MoreJ
Check the curb appeal. The house must sparkle from the street as much as possible. Make sure the plants are pruned, lawns mowed, driveways, and walkways swept clean. Clear cobwebs and power wash all structures. Paint the front door a bright color if it looks tired. Add a potted plant or two at the front door to welcome “guests.”
Clear the clutter inside and out. Inside, remove all personal objects such as photographs, from the home so buyers can imagine living there with their own things. Move furniture around or out for ease of walk flow.
Clean, clean, clean inside and out!!! Clean the windows, carpet and draperies if needed. Touch up with paint where appropriate. Perhaps just the baseboards need a touch.
NOTE: It is very important to me that the client (homeowner) is comfortable with the changes that are happening within their home. While it needs to show well in order to get top dollar, it also needs to be comfortable to the homeowner during the time it takes to get it sold. A comfortable client is a happy one!
A few new items can freshen up a room and really make a difference:
Replace old dishtowels with new ones in the kitchen. Clear off everything but the essential items on the counter top that are used daily, i.e., toaster, coffee maker, etc.
Replace old pillows with new ones in the Living Room, Family Room or Den. Also consider adding a new throw or two.
In the bedrooms, especially the Master suite, take stock of your bedding. Nothing freshens up a bedroom like new bed linens (duvet cover, pillows and throws).
Replace old towels in the bathrooms with new ones. Tie a ribbon with a bow around the hand towels to remind “guests” that they are for show only.
Accessorize with faux orchid arrangements, candles, candlestick holders, vases filled with pebbles, shells or fresh lemons, faux fruit in a glass bowl and/or “coffee table books”.
A very small investment of just $500 can make a very big return!
This article was contributed by Team Member, Lesley McTaggart, who offers staging services to our clientele.
New Listing! Villa with Boutique Producing Vineyard!
We've listed this one-of-a-kind property for discerning buyers who love the romance of producing their own pinot noir wine from their own boutique vineyard. The vineyard has 99 producing vines and has been a great source of enjoyment and gatherings of friends over the years. The home itself is beautiful has been meticulously maintained with superb quality and elegance. Click Here to find out more!
We're proud and excited to have a new member in Team Perotti...Tom McGowan! Tom joins the Team from ZipRealty, where he worked primarily in the Peninsula market. He will be working both San Francisco and the Peninsula for Team Perotti. Welcome aboard, Tom!
Team member Lesley McTaggart just listed 46 Mohawk Ave., Corte Madera, CA for $655,000! It's a great value in a SUPER location. It is a bit of a fixer, but at that price...Wow! This home is a short sale, so not for the buyer in a hurry. Won't last long, so reach out to us for further info!
We often hear the terms "Recourse Loan" or "Non-Recourse Loan" when talking about home mortgages. So what does it all mean? And should you care? Well, it can mean ending up owing a lot of money, even after you lose your house in foreclosure. And yes, you should care.
A recourse loan means that, in the event of a default by the borrower and the lender has to foreclose on the property, settling for less than the original loan amount, the lender could still pursue the borrower later for a deficiency judgment. This is bad.
On the flip side, a non-recourse loan means that, in the event of a default and subsequent short sale or foreclosure, the borrower could NOT be pursued by the lender for any deficiency. Obviously, this is a huge issue.
In California, loans put on the property at the time of acquiring the home (acquisition debt) is non-recourse for a 1-4 unit property. Further, with recent changes in CA law, all loans on a 1-4 unit property are non-recourse, whether acquisition loans or not. There is an exception if the buyer/borrower commited fraud, but such cases are not the norm.
In some states, all financing of real estate is recourse financing. For example, in Illinois, regardless of the type of loan (acquisition or refinance), the borrower can be held liable for any deficiency after a loss is suffered by a lender in a short sale or foreclosure. Not good.
SO, for all the math majors out there...Recourse = Bad; Non-Recourse=Good.
Last month Gov. Jerry Brown signed into law SB 458, which provides for immediate relief for short sale sellers from trailing liability to junior lien holders when completing a short sale in California. In order to receive protection under this law, the following conditions must be met:
• The property must be a 1 to 4 unit property;
• the junior lien holder must approve of the short sale;
• the borrower must not have committed fraud in their original loan application process;
• the property must not be owned by a corporation, limited liability company, limited partnership, or political subdivision of the state.
This is great news to those thousands of property owners who have been paralyzed from moving forward with a short sale for fear of being subsequently sued for some unresolved loan balance by their HELOC or other junior lien holder. It's also important to note that this protection does not apply in the case of a foreclosure that goes all the way to trustee sale and is subsequently sold on the auction block. This provides some great incentive to borrowers to complete a short sale in lieu of just walking away from the property.
When seeking a loan modification or short sale from a lender, the borrower must demonstrate "hardship." There are 15 different types of hardship, which are:
• Loss of employment
• Income reduction
• Business failure
• Damage to property
• Death of spouse or wage earner
• Severe illness
• Inheritance
• Divorce
• Relocation
• Military service
• Payment increase or mortgage adjustment
• Insurance or tax increase
• Separation
• Too much debt
• Incarceration
The borrower seeking a short sale or loan modification must write a "hardship" letter to the lender, citing one or more of the above hardship causes. It's been my experience, that the typical borrower has at least 2 to 3 of these hardship causes. And, while we hear about “strategic short sales”, often the borrower has at least one of these hardship causes that can apply to their situation. Visit http://www.bayareadistressedproperty.com/ for more information.
With decreasing levels of homeownership and increasing levels of renters across the United States, now may be the perfect time to buy that rental property, whether you're considering a single-family dwelling or an apartment building. In addition, financing has become more accessible for such investments in the last few months. More and more, we are seeing all cash investors diving into the marketplace... So, yes, now is a great time to buy investment real estate.
Displaying blog entries 1-10 of 25
