Coastal Real Estate and Lifestyles

I just read this from one of my mortgage contacts, John Esplana.  Here is his email to me:

“I am almost done reading Shift by Gary Keller and I came upon his “The Seven Don’ts of Mortgage Funding”.  After thinking about it long and hard, I added one of my own for a total of eight Don’ts.

In today’s volatile times, we must be proactive in helping our Clients thru the process from Initial Consultation thru to Close of Escrow and beyond.  This would be a great hand-out to share with your Clients as soon as you meet with them.

As you or your Clients go thru the home buying and/or loan financing process, I wanted to share with you the 8 DON’TS of Mortgage Funding.

1. Don’t assume that this mortgage transaction is going to be the same as the last time you went out and got a loan.  In today’s New World of mortgage, all banks and lenders will scrutinize your loan in great detail and may ask for more documentation than you are used to.
2. Don’t change your employment status.
3. Don’t make any major purchases (cars, furniture, home theater, vacations, etc.).
4. Don’t increase your credit card debt or miss any payments.
5. Don’t change bank accounts or make undisclosed large deposits.
6. Don’t apply for a credit card, co-sign a loan or make a credit inquiry.
7. Don’t spend money you have set aside for closing – not any, not ever.
8. Don’t delay in providing all paperwork asked for by the mortgage company. “

Thanks for passing this on, John.  To reach John for questions, contact him directly at BWC Mortgage Services.  jesplana@yourmortgageteam.net

…of an “under 5 year” Realtor - Wednesday, Nov 19, 2008

Exercise - my trainer/wellness coach may read this! 

Make lunch for high schooler (I know, I know - I don’t do it every day)

Check email and prep for day

Sadly, had to cancel a 9 a.m. webinar regarding Inbound marketing due to last minute changes in schedule.

Call a client to check in and discuss transaction

Meet Montara friend to discuss/collaborate.  On the way took a picture of PG&E trimming trees to protect their lines on a Montara country road in preparation for winter storms.

Drive to Diamond Heights, San Francisco

Preview said SF property for a San Diego buyer (by preview, I mean take notes, take pictures, pick up disclosure package as requested)  Loved this custom shoe closet!

Head over to San Ramon for a Round Table I was invited to by one of my mortgage contacts at Mason-McDuffie. Three Realtors were invited to share what’s current in our markets and discuss how to share accurate and timely information to our clients. (more on that later)

Stop at a nearby coffee shop for a decaf mocha and cash for the Bay Bridge

Return to the office to scan and send the 100-200 page disclosure package to San Diego client with notes

Download photos taken and upload to Picassa to privately share with him

Call other clients to catch up and update regarding strategy for listing their home in Spring 2009

Go home to eat and give Monte (our dog) some attention. (I’m not going to tell you what I ate.)

Send two emails to same client that I spoke with in the morning with follow up information

Create a post to my blogsite.  Review notes from today’s meeting for another post to come.  (I got about 5 ideas for blog posts to share with you, and will probably get to 2 of them.  But if we see each other, I have the info in my head.)

Check in with my son (was at practice when I got home)

Start to read Half Moon Bay Review

Didn’t get very far before falling asleep

The Coastside is known for spectacular Fall and Winter sunsets.  One of the most beautiful I’ve seen is in a photo taken by local photographer, Michael Wong, of Spring Mountain Gallery in Half Moon Bay.  That photo is in the header of my website.

I just happened to have my camera as I was leaving the office one night this week and caught this one from the building’s parking lot.

We have much to be thankful for, those of us who live here.

What a pleasant surprise to see a new feature on my searches.  The system now adds a line that indicates the percentage of the last price reduction, if there was one.  What this does is quickly give the consumer a little more information.  Here’s a quick example of two from my email alert a minute ago.

Notice Coronado had a 6% price reduction on 11/5 and Touraine had a 2% price reduction on 10/28.  It seems like they’re rounding up.  Coronado by my calculation was 5.7% and Touraine was 1.96%.  This data should not be taken out of context.  It will be most meaningful if you are tracking a property or neighborhood to watch for hyper-local trends.

This is not the same as searching by price reduction.  I asked our Multiple Listing Service about that recently.  They replied to my email that, no, price change percentage is not a value that they have at this time.

Is this of value?  If not, how could the search be improved?  I’ll pass your feedback on to our MLS and my IDX search vendor.

Natural hazards include earthquake fault zones, seismic hazard zones, state fire responsibility areas, flood hazard zones, liquefaction areas, whether underground storage tanks are nearby, airport proximity, land conservation, etc.

Natural Hazard Disclosure Company, Property I.D. attorney, Mailana Mavromatis brought a room full of San Mateo County Realtors up to date this week at the San Mateo County Board of Realtors office.  Most of what was discussed we already knew, but she spiced up her presentation with interesting stories, new information, and lunch from Draegers.

A seller is required (Cal. Civil Code 1102 and 1103) to provide the Natural Hazard Disclosure Statement (NHDS) to the buyer.  This is on the printed purchase contract.  However, for an “exempt” seller, such as a financial institution in an REO sale, she pointed out that the seller is not responsible for providing the Natural Hazard Disclosure (NHD) form, but is required to provide the Local, State, and Federal disclosures (i.e. the information). 

There are several companies that provide this third party report.  The ones that I’ve seen and/or used are Property I.D., JCP, and Disclosure Source. 

There will be a new disclosure added to the report effective January 1, 2009.  The new law, AB2881, states that a seller must disclose whether his property is within one mile of agriculture.  This is applicable to the Half Moon Bay area communities due to our abundant farmland and ranches.  Sellers in neighborhoods such as Spanishtown, Alsace Lorraine, Frenchman’s Creek, Clipper Ridge, to name a few that come to my mind, will have added protection knowing that their buyer knew about nearby agricultural activities.  Two important issues are water runoff and sensibilities.   Will be property be affected by watering methods of the neighboring farm?  Will the distinctive aroma of brussel sprouts wafting through the bedroom window bother me?  Or will the natural alarm clock (rooster) down the road interrupt my sleep routine?

If you are buying an REO property, your agent should give you and review the C.A.R. REO Advisory in addition to the Statewide Buyers and Sellers Advisory.  The REO Advisory spells out the exemptions and the requirements of natural hazard disclosure.

Diligent buyers and sellers make for smooth transactions.

A great west side Half Moon Bay neighborhood with very easy access to the Coastal Trail!

• Just north of the Strawflower Shopping Center

• South of open fields, recreational horse-back riding, and westside Miramar

• Due east by a short distance of the Pacific Ocean, Coastal Trail and beaches

Streets within this neighborhood provide cozy ranch style homes and a few two-story contemporary style homes.  Most, not all, were built between 1968 and 1978.  Average square footage of these homes is approximately 1682.  There are a few cul-de-sacs - this home for sale is on Marie Court listed by Susie Hughey-Haas.  The last sale in this neighborhood was in our current Q4 with the sale in October and the close of escrow in early November.

 The homes along Pilarcitos, the oceanfront portion of this neighborhood, are newer with an average age of 19 years, and larger, with an average square footage of approximately 2400 square feet.  The last sale on Pilarcitos was in Q2 2007.  Two homes on Pilarcitos have been on the market within the last year but are currently not in the MLS.

In the last 30 days in this neighborhood only:

• 1 property sold - 14% off list price for cash offer - within first 90 days.
• 2 single family homes are available listings
• 2 residential lot is an available listing (1 R1 and 1 PUD)
• 1 property is in contract
• 1 property reduced price
• 2 properties became expired listings

This interactive Google Map has many Half Moon Bay area points of interest so you can see the distance from this neighborhood to businesses, like coffee shops, other neighborhoods, etc.
View Larger Map

Link to Homes for Sale in Kehoe - Casa Del Mar neighborhood right now.  (Note:  Hawser is in the Seahaven neighborhood, but the MLS shows it in this neighborhood.  It’s nearby but not the same neighborhood.)

Thanks, Julie, for sending this reminder to me.  Her husband Rob and his sister Jane will host the first screening in San Mateo County of the award winning documentary about tick-born Lyme disease tomorrow evening.  Coastsiders are surrounded by numerous hiking trails and open space; now we have an opportunity to get some first hand information on this topic.

Robert Buelteman, an award winning photographer and long time Montara resident, has been battling Lyme disease for over a year now.  He shares a little of his story in this SF Chronicle story last May.

Local film showings like this and others are sponsored by Half Moon Bay’s Reba Vanderpool at The Visionary Edge.  Per The Visionary Edge’s full press release, this film has already won awards, including the FREDDIE Award, Infectious Diseases Category, International Health & Medical Media Awards (to be awarded November 14, 2008.

The Half Moon Bay Review wrote a full article about the event in this week’s paper, 11.5.08, in the Community Section under Arts & Entertainment.

Saturday, November 8th, doors open at 7:00, start at 7:30pm, Ted Adcock Community Center, 535 Kelly Avenue, Half Moon Bay. Advance tickets $10, door $15.  No one turned away for lack of funds! Call 650-560-0200 or email reba@deepspirit.com for tickets.

Repayment plans and loan modifications may become popular in the next twelve months.  We’re well into absorbing the unsustainable subprime loans.  Let’s hope the lenders have the foresight right now to be working on, that is, modifying, the Option-ARM (borrower has option of making lower monthly payments to their adjustable rate mortgage rather than the full principle and interest amount for a set period of time) loans that were popular in California a few years ago.

A loan modification is when one or more terms in the existing mortgage/deed of trust is negotiated, accepted and documented.  According to bankrate.com’s article, “Fending off Foreclosure”, the servicer actually adjusts the terms of the loan to make it affordable. It may lengthen the amortization schedule or lower the interest rate to cut the monthly payments, or roll the past due amount into the loan and re-amortize the new balance so the borrower can pay the additional debt back over time.

Coastside homeowners are not immune, and I also want to make local landlords, buyers, and would-be sellers aware of these trends.  Some long time homeowners may have refinanced between 2004-2006 and now find themselves in a financial bind.  I write this to give you, or someone you may know, direction and resources.

I began educating myself when I started getting about 3-5 “loan modification” bulk sent emails a day from xyz-business I had never heard of.  So I attended a seminar sponsored by another mortgage broker that I didn’t know.  It was packed with mostly mortgage consultants and a few real estate agents.

The program, which a mortgage, real estate, or even title professional could subscribe to, cost an annual fee to join.  (I didn’t join.)  It uses a network of specialists who take on a homeowner’s file and work to improve the current loan’s terms.  The charge (held in escrow until settlement) for the homeowner needing the loan modification is about $3500.  There are restrictions on how and when fees should be paid according to the Department of Real Estate (excerpt below), so educate yourself, and work with someone you trust…

“If a Notice of Default has not been recorded against your property, it may be permissible for a real estate broker to assist you in working out a loan modification or otherwise negotiate a possible resolution to your problem with your lender or loan servicer and ask you for payment in advance for their services. However, the broker must have you sign an agreement that tells you what services will be performed, when they will be performed and how much you must pay. The broker cannot have you sign an agreement until it has been submitted to the Department of Real Estate for review and the broker has received permission to use it and collect the advance fee.”

Homeowners can do it on their own.  In my continued education on this topic, I headed to my Reader and found Seattle Realtor Ardell DellaLoggia’s post on loan modifications.  Thank you Ardell for spelling it out in a real life scenario!  Read this post and numerous interesting comments!

I found this on, where else, Twitter.

Local applications?  Pumpkin Festival comes to mind.  The high school grad night?, which I will be working.  School administrators and teachers?  Police?  Park rangers?  Sometimes I tweet on Tuesday tour day when I see noteworthy houses to share.

SEOmoz Whiteboard Friday - Adopting Twitter from Scott Willoughby on Vimeo.

SEOmoz Whiteboard Friday - Adopting Twitter from Scott Willoughby on Vimeo.