Coastal Real Estate and Lifestyles

It’s really about the contract.

A few of many points we reviewed in a C.A.R. Purchase Agreement class yesterday:

1. The location at the top of the contract is the location where the contract is written and is the jurisdiction used if any legal action were to ever be pursued.  This is something to be aware of if the offer is from out of the area. 

2. If the seller has not gotten inspections - or completed any repairs - prior to listing the property, be aware of the wording regarding repairs that pertain to who can make the repairs, permit requirement, and how to tell if the repairs were “performed in a good, skillful manner with materials of quality…”. Item 10.

3. We learned deposit strategies that are relevant to our current market of more short sales and reo listings.  Knowing these could save the buyer a few or several thousand dollars.  Item 2.A.

4. Carefully review your time frames if you are dealing with a tenant-occupied property.  Be aware of landlord/tenant rights in California, particularly the 2007 update extending notice to 60 days if the tenant has occupied the property for a year or more.

Ok, I’ll state the obvious here.  Talk to your Realtor, Broker, or real estate attorney about how all clauses in the contract may affect your particular offer.  The C.A.R. contract is 8 pages, not including an inspection advisory.  The PRDS contract (used in the San Francisco peninsula and Silicon Valley areas) is 8 pages including the Advisory Disclosure.

Credit goes to fellow Active Rain member Marc Grossman, Orlando FL, for this image.

The U.S. Senate passed the American Recovery and Reinvestment Act of 2009 last weekend with the final tab for the stimulus bill at $787.2 billion.  The next step is President Obama’s signature.

The housing highlights:

1) The conforming loan limit cap that was reduced to $625,500 on January 1, 2009 (from the temporary increase of $729,750) is again reset to $729,750 through December 31, 2009.
2) The first-time home buyer credit is increased by $500, from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years.  There are income limits.
3) The timing for the first-time home buyer credit is extended from July 1 to Dec. 1, 2009.  Home buyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

An important piece of getting things moving again will be resolution; the fact that something was done.  Having said that, I don’t think it ’s going to make it easier to buy a house in the short term, but it could facilitate buyers and sellers getting off the fence in an attempt to move on with their lives, which will include either buying their first home, making a long-term real estate investment, selling their home, or finally considering a move-up purchase.  The Half Moon Bay Coastside trends will probably follow what happens in greater San Mateo County.  The Coastside is also a bedroom community for the San Francisco Peninsula, San Francisco, and Silicon Valley employment.

Using the 2008 Coastside* median price of $819,000 as an example, down 4.8% form 2007, that would still require a down-payment of approx. 10% (819,000 – 729,750 = 89,250; 89,250 is 10.8% of 819,000) to keep the loan within the new conforming loan limit.  If you are considering a purchase, consult with a mortgage broker or direct lender to discuss ALL your options.

Coastside for this purpose is Half Moon Bay, El Granada, Moss Beach and Montara, combined.

Chart comparing the current housing tax credit to the new plan’s tax credit.  Thanks to the Peninsula Real Estate Guru for locating this chart.

Consult your financial advisor and tax professional to fully understand how this new plan may affect you.

Half Moon Bay welcomes Lance Armstrong’s 2009 AMGEN Tour of California, riding through the Coastside tomorrow, Monday, Feb 16, 2009.  It could be fun to cheer them on if your schedule allows.

A San Mateo County Info alert was sent out to give us the heads up to plan drive times accordingly.  The riders will be coming through the Coastside on a Monday morning after the normal peak commute of around 7:00-7:45 a.m., for Coastsiders driving to school or commuting south on Hwy 1 to Hwy 92 East into the greater Peninsula or Silicon Valley.  Also, the Tour website provides a schedule of estimated times for the various stages of the ride.  Our area is in Stage 2 of the tour.

Below are estimated times of when the riders will be in the specific Coastside areas:

• 9:11 - 9:23 Hwy 1 southbound, Pacifica City limits
• 9:32 Montara/Moss Beach
• 9:39 - 9:59 El Granada
• 9:44 Half Moon Bay, Mirada Rd
• 9:54 Half Moon Bay, Miramontes Point
• 10:06 East on Tunitas Creek Rd

More detail:  Tour of California Stage 2 schedule for Monday, Feb 16, 2009

For local day-to-day interest:  Half Moon Bay coastside offers great trails for biking and a terrific bike shop, The Bike Works.  Here’s what people say on Yelp.

I think there must be many happy marriages here.  In fact, couples do get married here in Half Moon Bay.  We’re surrounded by pulsating waves, crisp air, great food, soft sand, the list goes on…

If you plan to bring your valentine to the coast this weekend, there’s plenty of places to get that lovin’ feelin’.  Here’s a couple special events that I know of -

Oceano Hotel & Spa, right on the water in Princeton, is offering a Romantic Valentine’s Day Retreat, through Feb 16.

Local pianist, Lisa Spector, offers a Valentine concert for couples on Sat. Feb 14 and for singles Friday, Feb 13 , both at 8 p.m. (call 650-726-5119 for prices, details), per the online Half Moon Bay Review Community page.

Of course, it’s invigorating to join with your significant other, or call a special friend … put on your walking shoes and stroll along one of the spectacular beaches.  Montara’s beach is amazingly beautiful, and there are several just south of Half Moon Bay that can be very serene.

Here’s a list of local lodging including Bed & Breakfasts, restaurants, and other visitor fun.  Check for availability at all these places first.

Since we eat on the coast frequently, I’m taking my valentine (for 30 years) to dinner at a romantic restaurant in San Francisco.  Perhaps we’ll cap the evening with a sampling of the “hot” confection of the moment, a chocolate-covered caramel with exotic salt.

Image provided by Michael Wong, Spring Mountain Gallery, Half Moon Bay, CA.

A handful of agents attended a short sale training seminar two years ago when the Coastside had 2 short sale listings.  I was there.  Today we have 24, including “pendings”, between Half Moon Bay, El Granada, Moss Beach, Montara, and Pacifica.  Yesterday I attended another short sale training.  This was one of several being held this week for Coldwell Banker agents throughout the Bay Area.

What does it mean when a property listing is advertised as a Short Sale?

A short sale occurs when the purchase price is less than (i.e. short of) what is needed to pay back the loan(s) on the property.  In this case, the holder of the first deed of trust would have to accept the reduced amount for the sale and forgive the balance in order to close escrow.  Of course, there also may be 2nd lien holders, unpaid taxes, etc.  There are two types of short sale listings:  1) approved short sale by the lender(s); and 2) not approved short sale by the lender(s). 

Non-approved short sale listings means the lender has not yet given their approval to accept an offer at the list price, which is most common so far.  Most “active” short sales are not approved because the loss mitigation department will not work up a file until an offer has been submitted.  When the offer is submitted, the agent changes the listing in the MLS to “Pending Show” because it’s ratified with the seller.  However, the next step is negotiations with the loss mitigator at the financial institution.  The goal is an acceptable outcome for the lender, seller and buyer.  There were 4 successful short sales in January 2009 on the coast - 3 in Pacifica and 1 in El Granada.

Short Sale (real estate) Wikipedia

If you subscribe to the San Mateo County Alert system, you would have gotten this notice today like I did.

You can see the rest of the notice at smcalert.info.

In fact, I did receive this piece of mail from “Property Tax Reassessment” within the past week and it does look official.  I set it aside to read the fine print later.  When I read today’s alert while out on the new listings tour, I stopped at home to see if it asks for the $179 fee….yes, it does. 

To see if you qualify for a property tax reassessment for your coastside home, contact the San Mateo County Assessor directly or download the application from their website here.