Coastal Real Estate and Lifestyles

I’m squeaking this final 3rd Part in a few weeks before the end of Fall!…With the help of Eric at Oceanshore Hardware on Main Street, I am reminded of the Fall chores to get us ready before Jack Frost makes his appearance. Ok, how can we make this fun?  Yeah, right.

If you have just one day, or half day, to get ready for the winter season, here’s the short list:

Winterize the house - We are very fortunate that in our part of the country “winterize” means check the exterior of the house (you can do this once a year!) with pen & paper, tape recorder, whatever works for you - make note of the to do’s while you walk around the outside.If you do this every year, you will notice the things that are in need of repair before too much damage has been done.  You probably already know what to look for but Eric reminds us -

1. check the roof
2. clear out the gutters
3. make sure the downspouts are in place and directed away from the house
4. replace smoke detector batteries
5. check expiration date on fire extinguishers
6. check weather stripping around doors and windows
7. check outdoor lightbulbs

Sellers, don’t forget to check on your rentals or vacant properties for these things.  Contact me if you need names & numbers for handymen or professional inspectors.

Mom and Dad talk for months and months.  Do we move or do we stay?  Finally, a consensus, we move.  heavy sigh.  I decided to involve my children in discussions about our cross country move - even before a decision had been made.

There is so much anxiety about a such a major life change that it’s natural to think that the children will feel the same way.  For our family, I found that I didn’t need to give them the right answers, I simply needed to listen to their questions and answer as best as I could.  They also needed to know that whatever happened, we would still all be together, wherever it was.

Sometimes families don’t have a choice about when to move.  We were fortunate with our timing so we moved the summer before our oldest was to start middle school; our youngest was to enter 4th grade.  Immersion into new schools at those grade levels was a breeze.  Of course, I worried that my daughter would get sucked into the social dramas that play out in adolescence  - but without the benefit of elementary school comrades.  How would she weather this huge unknown?  Once we got to our new home town I decided to be proactive.

For my middle schooler, I planned a Halloween Party and invited EVERYONE from her homeroom class.  No playing favorites allowed.  I think about 12 kids came - in costume.  It was great for me too, because I got to meet parents and see who actually brought their child to the front door, and who dropped them off at the curb (at someone’s house whom they had never met). 

For my 4th grader, I agreed to become the Room Mom since no one else volunteered to do it.  Let the new mom do it!  This was great too because when he was invited to someone’s house to … I guess it’s still “play” in 4th grade … I already knew who the child was from organizing classroom parties and events.

Overall, the best feat was to create enthusiasm for my kids’ benefit even though I was not at all enthusiastic about relocating.  And before we left, I gave each of their best friends a prepaid phone card to call any time (so their mom and dad wouldn’t have to pay for the long distance phone charges).  For me, it felt like I was being torn from my mother’s womb.  Too dramatic you think?  OK, how about - it felt like losing my best friend.  Hmm, that’s pretty bad too.  Well, you get the point.  It was hard.  But, I survived, thrived, and am glad for the ”adventure”.  The kids are too.

I’m surrounded by the effect animals have on our lives.  Currently the issue is the birds whose lifestyle has been tragically assaulted by the Cosco Busan accident.  As we’ve all been reading, the ripple effect has been enormous.  It really hit home for me watching the few lucky birds finally being released into our own Pillar Point Harbor.  Were my feelings because our community was a safe place for the birds to be released or was it because I am an incurable animal lover?…perhaps a combination of both.

I’m reminded of the enormous support for animal rescue during Katrina.  I would read up to the minute stories on animal rescue blog sites - back then not fully understanding the power of the blog as an effective means of timely communication.

Here’s the blog from the International Bird Rescue Research Center website.  Sounded far away to me, but when I looked deeper into the site, their tech person is a local guy who is getting up close details on the bird rescue efforts by his blogging.

There is lots of local support for animal rescue.  I even read that local community members, binoculars in hand, were on watch for birds that may have ended up in our waters in need of rescue.  Here are 4 resources that I know of who can help if you know someone who has to give up a pet or if a stray pet or litter has been found and needs temporary foster care.

Companions-in-Waiting - 650-328-0474

WKODIT (stands for What Kind of Dog Is That?!).  Based in La Honda.  650-747-9650

Bay Area Animal Rescue.  Call 650-712-8218 or email BAAnimalRescue@aol.com

Peninsula Humane Society(PHS) - 650-340-7022

Also see the Half Moon Bay Review’s “Pet of the Week”, featuring an adoptable animal from one of these non-profit organizations.  This campaign has been running almost 2 years and lots of local animals have found their forever homes.  (As we know from real estate, photos sell!)  A December edition highlights all (or as many as they can fit in) of the advertised animals that have been rescued during the year.  Look for it next month - very fun to see!

As it becomes more difficult to buy a house, rents naturally go up.  If you are a landlord you may do some upgrading in between tenants.

Before you replace the carpet, again, consider a nice large tile.  To warm up the room, visit a local flooring store to purchase a remnant the size you need and have the edges finished.  You will be helping the environment, the health of your tenant and adding greater value to your investment.  Also you can change the colors out more easily.

Consider low or no-VOC (volatile organic compound) emissions paint when repainting.  The demand is building, use it and your tenants will appreciate, especially if they understand.  VOC’s were used to make the paint and other paint products easier to use and last longer.  Most major manufacturers now offer a no- or low-VOC paint alternative.

Use compact flourescent light bulbs - ideally for all lights - but especially for exterior.  They last much longer.   Also, you and your tenant will be replacing them much less.  I know the light is not as warm, but I think we are beginning to get more used to them.

Consider getting a Home Energy Rating to evaluate overall performance.  This can be done on new construction and existing homes.  A good rating may also qualify you for a better loan if you are considering refinancing.  Local mortgage consultant Bill Griffis of Wells Fargo in Half Moon Bay is working hard in our community to make 1st and 2nd mortgages for homes that qualify with eco-friendly features more understandable and available.  Check out the article below.

Resources:

EcoBroker

Residential Energy Services Network (RESNET)

National Mortgage News Press Release dated 7/30/07:  Wells Does $1 Billion in Green Lending

Two bills are in process that will alter the real estate loan business - if passed…

Cancellation of Mortgage Debt - HR 3648 - Rengal bill

This updated bill would make it easier for a home seller to close on their home for less than the loan amount due.  It would take at least one nail out of the coffin of the homeowner faced with possible foreclosure.  Currently, if faced with having to sell his house for a loss, a homeowner is required to pay income tax on the difference.  There is an effort to get this bill passed before the end of this year and proposals to have it be retroactive to January 1, 2007.  Here’s an example from NAR’s website-Cancellation of Mortgage Debt Q&A:

“Assume a family purchased their home for $100,000, with a mortgage of $95,000. Later, they need to sell the home. They find that the value of homes in their area has declined and they can sell for only $89,000. At the time of the sale, the outstanding balance on a mortgage might be, for example, $92,000. Thus, there will not be enough cash at settlement to repay the lender the full balance of the mortgage. In some limited circumstances, a lender might forgive the amount of the balance that exceeds the purchase price ($3,000 in this example). “

For homeowners in our area, of course the numbers are much larger.  Those most affected in our area will be 1) established homeowners who over-refinanced and are now forced to sell due to unforeseen circumstances; 2) first time homebuyers who got into the market with a teaser loan, try but can’t continue to make payments at the higher rate and need to sell to get out from under the escalating debt; 3) those who used equity to purchase a second home, either here or somewhere else and need to sell.  None of us plan for a job loss, divorce, job transfer, or a medical emergency.  We may have the “Emergency Fund” to get us through 3-6 months, but in some of these cases it won’t be enough.  If a homeowner finds himself in this situation, he may find that either he can’t list the home to be competitive and cover the debt, or it’s not in his best interest to accept a lower offer price because of the tax consequences.  If the seller is able to complete the sale (the lender has agreed to accept less than the total loan amount), the seller is faced with having to declare that difference as taxable income.  The lender would provide the homeowner with a Form 1099.  This bill was originally proposed several years ago and has gone through several drafts. 

Mortgage Reform and Anti-Predatory Lending Act of 2007 - HR 3915 - Frank bill

This new bill is designed to reduce predatory lending practices and put in place greater accountability measures in the mortgage industry for consumer protection.  While on the surface it appears like a no brainer, there are such strong feelings on both sides of the fence that this bill clearly warrants further investigation.  This bill proposes: (my opinion/thoughts as of today will be next to each point.)

• A nationwide mortgage licensing system and registry; (seems like a good idea.)
• Prelicensing education from approved courses; passing a test that would be developed by the national registry; license renewal guidelines; (education and testing is good, but testing by the same organization that licenses?)
• To amend the Truth in Lending Act by inserting “anti steering” wording including the elimination of incentives in certain circumstances and yield spread premiums (YSP); (what impact would there be to eliminate ysp’s?  are ysp’s as bad as this bill makes them sound?  how much are they abused?)
• To amend the Truth in Lending Act by inserting a “defense to foreclosure” clause for the consumer against a judicial or non-judicial foreclosure attempt by the mortgage holder; (where’s the layman’s interpretation?)
• Require disclosures that specify current and future payment amounts for variable rate loans; (seems obvious)
• Prohibiting credit extension without regard to payment ability of the consumer.  Here is exact wording from the bill - this is important — “A creditor may not extend credit to a consumer under a high-cost mortgage unless a reasonable creditor would believe at the time the mortgage is closed that the consumer or consumers that are residing or will reside in the residence subject to the mortgage will be able to make the scheduled payments associated with the mortgage, based upon a consideration of current and expected income, current obligations, employment status, and other financial resources, other than equity in the residence.” (Section 302.2a) (this seems like a black hole - with wording like ‘reasonable’ and ‘believe’ and ‘consideration’; more research required)

To hear the actual testimony from Congressman Frank on this bill proposal, click here.  Thanks to the InmanBlog reference dated 11/2/07.  To view the 10/22/07 Press Release from the House Committee on Financial Services with links to the Bill and a section by section summary, click here.

I do believe the mortgage industry needs changes; I don’t yet know if this Bill as it currently is written accomplishes that.  I feel we are moving in the right direction, I just want to understand this more before I weigh in with more persuasive opinions.  We need more facts on the short and long term consequences of these proposals.  Homeowners need to understand these terms and then contact our local representatives.  I am interested to know what you think.

11/16/07 update:  House of Representatives approved this Bill with some modifications with a 291-127 vote.  Other modifications are in progress.  Contact your congressman to share your views while politicians work to refine the final wording.

 Resources:

Federal Reserve Education website
Thomas

Is blogging necessary to be successful in real estate?  No.  Then why do I do this? 

The internet opened the flood gates to real estate information and data in the last several years.  We began to see MLS listings, advice, new home builders, FSBO sites, foreclosure sites, and more on the web.  It was all there for us to just use - or Register and use.  Some were new businesses and others were existing businesses that developed a web presence.  Online property searching, contact info, and zip codes began to be sold via lead generation companies for the real estate industry.

Then emerged discount and online brokerage models.  While these businesses are developing, the traditional brokerage models, in an effort to compete and continue to be Full Service, are improving their online resources for consumers.  There is such a “mash-up” of products and services out there now that I believe the next phase has yet to present itself.

Why do many of us still stall when it’s time to make a decision?  Could it be data overload - even though it feels like there isn’t enough information?  What is data?  Snippets, facts, statistics, home values, trends – we’re absolutely surrounded by data in our lives, and especially in our line of business.  Data can easily remain meaningless and confusing.  It’s not until you combine data with knowledge, experience and context that you can actually turn it into useful information.  Data is what a competent Realtor uses to create information.  When you can create and place that information in the specific context of an individual client’s situation, only then can you actually facilitate resolution of the financial/emotional commitment dilemma that they face. 

In addition to the given skill sets necessary in marketing, finance, negotiation, disclosures, personal interaction, time management, we also need to contribute to the solution.  But the data has to be filtered through your brain first, before it can become part of a solution.  Therefore, one of my new roles is Information Manager.  Blogging is information management with a personality.

Realtors share knowledge and competence to prospective buyers or sellers at an Open House.  Visitors, in addition to looking at a house, may be checking out the local Realtor.  Blogging is like a virtual Open House.  A Group Blog is like a networking event 24/7.  I can continuously get to know other bloggers and increase my circle of competent Realtors and other professionals beyond my current base.  That value for my clients, my business, and my personal development is priceless.

Winter on the Coastside is a close rival to Fall!  The weather cooperates (for the most part) and is even spectacular on some days.  Coming off the heals of the Fall season, which our area thrives on, Winter does not disappoint.  Start or continue a tradition with one or more of these events.  I’ve also added in a bit of personal perspective.  Also, click on the “View Larger Map” below to see the locations of each event marked.

Check back.  Events, dates & times may be updated.
(**) Tickets required
(*) Drop by

 11/30/07 New Addition: 
Napping House Studio - Creative Decorative Pillows.  These are labors of love, many are not yet online, some sell before ever presented to the public.  Many designs; Holiday designs are selling out fast.  If you see one online, order, or call for details, 650-726-9545.  Local resident and friend Beverly has that gifted artist “eye” and is a detail nut (so we relate!).

** The Johnston Holiday House - Saturday, 11/3 and 11/10, and Sunday, 11/4 and 11/11
The historic Johnston House will be festively decorated and filled with fine crafts along the theme of “Joy to the World” at the annual annual holiday festivity, with a special holiday tea from 10 a.m. to 4 p.m.  Admission is $10 per person.  Organizers request no children please.  Tickets available at our office, Coldwell Banker, Half Moon Bay, and numerous locations around town.  Contact 726-0329.
Location:  South of Town
The Johnston family was HMB’s first families, settling on 1100 acres just south of downtown in the late nineteenth century.  When family members could no longer care for the property it went into disrepair.  A new organization was formed in the 70’s called the Spanishtown Historical Society.  With their vision and support this classic home was brought back to life and is now open periodically for all to enjoy while taking in a bit of history. 

* Ladies Night at Main Street Goldworks – Thursday, 11/15/07, 5:30-8:30 p.m. 
Local women know this is the place to be.  Last year was the first  and it must have been such a hit that they are doing it again this year, called it the “2nd annual”.
Location:  Downtown Half Moon Bay
Many “downtowns” have their local jeweler.  You may think they are all the same, they are not.  Husbands, dads, boyfriends, engaged couples, and more come to this store from far reaching places.  I’ve spoken to these people myself.  My husband, a customer also (luv you sweetie!) is pretty darn picky about the gems he buys and Jay’s work and selections are a winner.  He also does custom work.

* Night of Lights - 6 p.m. – 10 p.m., Friday, November 30, 2007, 7 p.m. Parade of Lights,  Downtown Main Street, HMB.  Hosted by Downtown Business Association.  Downtown shops stay open late for holiday shoppers and entertainment fills the streets, including horse and buggy rides, street performers, carolers, a parade, and more.
Location:  Downtown Half Moon Bay
What can I say, it’s midwest charm without the snow.  Having lived in the midwest, I know this and have never appreciated our weather more than since I’ve been back.  A great family outing to window shop, sip hot chocolate, and listen to carolers.  You don’t even have to spend any $$, but the store owners would love it if you do.  If you want a very un-mall-like shopping experience, with many one of a kind and unique gift ideas, shop downtown HMB.

* Ritz Carlton Annual Gingerbread House Contest
Entries taken:  Nov. 30-Dec.3 (650-726-7296 to enter the contest);  Dec 4-9 viewing and voting; Dec 9 at Tree Lighting, winner announced by CBS 5 “Eye on the Bay” Host Liam Mayclem.
Location:  South of Town
The Ritz opened in HMB in 2003.  I would say, with some melancholy, that our area has been discovered since then.  Many locals enjoy events here as well as out of town visitors.  It’s a great place to get that “city feel” without going to the City.

** Ritzy Trees, a Holiday Fundraiser to be held at Ritz Carlton, Half Moon Bay.  Tuesday, 11/27/07 – 6:30-9:00  $75 a ticket to Benefit Coastside Family Medical Center and Boys & Girls Club of the Coastside.  A ”Ritzy” sit down dinner for great local causes.  Tickets available at Coldwell Banker, Half Moon Bay, until gone.
Location:  South of Town
The Coastside Family Health Center has changed owners over the years.  Locals have fought to keep it up and running as our only convenient “major” healthcare facility.  The Boys & Girls Club relies on our funding to offer its programs.  David Cline, a well established local Realtor (also at CB) heads the Board.  He and fellow board members work tirelessly for the boys and girl of this community and continually work to find a permanent home for the kids.

Local Artists “Trunk” Show, Saturday and Sunday, Dec. 8th & 9th, 10 a.m. to 4 p.m.  Cidar and treats!
* Julie B designs – original jewelry by long time talented local artisan.  Her work is also available at Personal FX on Main.
I’ve known Julie since our kids were in Elementary School at Farallone View together.  She would always wear fabulous jewelry, even when coming to pick up the kids from school!  Little did I know then that she made jewelry for friends.  Years later, I attended a small gathering of local artists and noticed her beautiful work on display.  I now save my pennies to buy one of her pieces at this time of year.  She can also do custom work.  Her husband is well known photographer, Robert Buelteman.
* Pottery by Nancy Quickert - stunning one-of-a-kind pieces.  Nancy is a talented artist as well as a teacher who has been sharing her unique work with locals and patrons in the know for probably longer than the 15 years I have known her!  Nancy is one of those special people who is always creating, always giving, and is a true gift in our community.  You must see her work.
* Fiber Arts by Leslie Greenberg - Leslie’s work will also be for sale at the Clay House event.
Location:  The Clay House, 750 Drake Street, Montara
Warning:  The items for sale at this event will not resemble anything you may find at a Mall.
Note:  If you have a local event, make a comment if you wish to be included or contact me offline.

* December Shopping Night, December 20th.  Downtown Half Moon Bay Main Street.
Stores are open until late again for last minute shopping.
Location:  Downtown Half Moon Bay

* Maverick’s Surf Contest– Winter date TBD with approx. 24 hours notice.  The media will know as soon as the event is announced.  While usually an annual event, it did not take place last year.  It is scheduled to happen this year per this local report.  Surfers from around the world come to our little community to await the word from contest officials that the wave action has created the perfect storm for the mother of all surf contests.
Location:  El Granada/Princeton
The event used to happen with many a local simply going about our business.  Over time, more and more people came to see these mammoth waves and the brave and talented men who fearlessly ride them.  Two years ago, the high school all but shut down because of so many “illnesses” that day…(my children included!).

View Larger Map
Click on Larger Map link for interactive local detail.

Where else can you find this unique combination of small town charm, location, character and weather? 

The Coastside - Visited by Many, Home to a Lucky Few.

Loma Prieta happened without me.  That was not the big one and this week’s shaker was only a burp.  They are reminders of the ONE to come…  Why is this important?  The liklihood of continued quake activity is based on where we live in North America, from the article on Bay Area Earthquake Probabilities from USGS.  It doesn’t matter if you live in the North Bay, San Francisco, South Bay, Alameda County or Contra Costa County.  What matters is that we share ways to remind each other of the importance of relative readiness.  It’s like insurance, we prepare in the hopes of not having to use it.

It felt like a steady rumble for several…long…seconds.  Halfway through the rock and roll, my teenage son quickly finds me - highly unusual for him to track me down so quickly these days (except, of course, if it’s because he needs some $$).  His speed impressed me.  Basketball practices must be paying off.  I realized that he had never felt an earthquake before.  He wasn’t even a dream in ‘89.  I said, “Yep, that’s an earthquake.”  Nothing fell, burst, or cracked.  Phew!  Ok, back to what I was doing…But, of course, it got me thinking again “are we ready?? - NO!”

In 1989, I was on a business trip back East, my daughter was 9 months old and in day care.  I’ll never forget how I felt watching those surreal images on TV of the Bay Bridge, and the SF Marina - combined with no phone service for over 12 hours to know how anyone in my family had fared.  Was the day care center affected?  Where is my daughter now?  Could my husband get back “over the hill” to pick her up?  How badly was Mountain View hit where he worked?  Is my house ok? Neighborhood still ok?  The questions went on and on…with no means of communication.

Fortunately, even with the San Andreas reminding us of her presence, our house came out of it unscathed except for Grandma looking back at us a bit sideways.  So this time, I guess part of me knew that it would have to be a BIG ONE to get me worked up.  In any event, I need reminders like anyone.  And I look at Earthquake Disclosure forms every day!

The very things that make the Coastside most desirable, like seclusion and less traffic, can have a downside also.  One downside for us is our limited access in times of emergency.  We’ve been through it with Devil’s Slide closures.  Here’s a few handy references while the media is keeping this subject top of mind (to borrow from real estate terminology):

San Mateo County Office of Emergency Services (OEM) - Disaster Preparedness Links

“The Sheriff’s Office of Emergency Services [OES] is funded through a Joint Powers Agreement between the 20 incorporated cities and the County of San Mateo. The Cities contribute money to fund the JPA based upon a formula that takes into account the population and average assessed property value of each city. The County then matches the funds contributed by the cities. The remainder of the OES budget comes from state and federal Emergency Management Assistance program funds.”  From the About section of SM County OEM website (link above).

My question:  How are our Coastside’s unincorporated areas like Moss Beach and Montara covered within these budget guidelines?  I’ll get back to you.

And more…  Local news here is that OEM plans to have installed new signs with safe evacuation routes (or how to quickly leave the coast) will soon be posted.  They are also in the works of preparing to install tsunami sirens.  This from the October 31, 2007 edition of the Half Moon Bay Review titled:  “Tsunami signs…”

*Homeowner’s Guide to Earthquake Safety, 2005 Edition - Source:  Disclosure Source
*Note:  This handout is a state law requirement in a sale transfer.

The biggest MUST DO’s if you haven’t done this already:

1. Strap your water heater properly
2. Have a wrench handy and know how to turn off your gas at the meter
3. Contact someone out of our area to be the “hub” of communications

These 3 you can do today.  There are lots of web resources linked in this post for future reference.  I will be writing more on this subject as I find even more community resources for us.  This and other related posts in the future will be archived under “Emergency Preparedness”.

My final reminder to get prepared using visual aides…

Daly City, San Mateo County, CA - Loma Prieta 1989 (1)

Santa Cruz County, CA - Loma Prieta 1989 (2)

(1,2) - courtesy of Yuprocks.com, earthquake photos.

What are neighboring communities doing to prepare?
Ask these hyper-local HOMESCOPES experts.

Is a homeowner really interested in selling when their house has been on the market for nearly a year or more?  Putting your house on the market is not a walk in the park these days like it was in recent times - now past.  A seller may not understand their TRUE motivation .  The real reasons sometimes present themselves after the umpteenth open house with no forthcoming offer.  Some people come to the conclusion that selling isn’t what they want to do after all.

I’ve learned the difference between wanting to sell and needing to sell.  For these properties below, all under $1 million, something is keeping them on the market.  It is not the need to sell.  Simply wanting to sell is fine; perhaps that motivation is to “test” the market, or get top dollar…but not in a market like the one we are in.  If buyers aren’t coming, the seller needs to adjust.  Sellers that feel they can’t adjust because of loan constraints are in a difficult place.  Their strategy will have to be unique to their circumstances.

Now with new lending guidelines and the Fall Season in full swing, some sellers are more motivated than ever OR they are getting out of the market.  Seven listings expired today alone on the Coastside, and that is not including withdrawns or cancellations.

Address - City - Days on Market - Current List Price - Area

* On leased land.. 

**No longer active as of this morning’s market check.

If you are a seller in this market, do you really want to sell?  If you are a buyer in this market, don’t wait for the price to drop, just make an offer if it’s a property you want.  If you are a Realtor (r) in this market, you are working!