Mark Zuckerberg and the 1% Mortgage – SkippyBean Realty

As we’ve been pleased to point out before, San Ramon, and Danville mortgage interest rates are not just ‘low’ – that would be like saying Michael Phelps is a ‘good’ swimmer. When you borrow at a rate below the inflation rate, you essentially borrow for free. Using someone else’s money to do a job for you is one of the less well-hidden secrets of successful people – so it should come as no surprise that some of today’s most prominent business names are right in there with everyone else, getting a mortgage that takes advantage of today’s environment. Only more so.

 

This is the basis for the (if you haven’t heard, sit down and take a deep breath) 1% mortgage rates currently actually being granted to some homebuyers. Such seemingly too-good-to-be-true rates are available only to those with exceptional credit and extremely high net worth. How exceptional and extremely? Mark Zuckerberg is a good example. The billionaire founder of Facebook recently refinanced his $5.95 million home in Palo Alto at a 1.05% interest rate on his 30-year mortgage. How in the world did he get this jaw-dropping loan? 

 

The bank figured he was good for it.

 

Now, for those of us in San Ramon, Danville, Pleasanton, and Dublin who do not (at the moment) happen to have a few billion in the bank, the current average mortgage rate for those with qualifying incomes and credit hovers somewhere north of 3.375% and south of 3.65%.  That’s for those getting a mortgage at the 30-year fixed rate. But what about that 1% rate? If you are getting a mortgage in San Ramon, Danville, Pleasanton, and Dublin anyway, why not shoot for the stars? 

 

Well, my high-flying friends, keep in mind that applying for (and getting approved for) the 1% mortgage rate is not for the faint of heart. As mentioned, the applicant needs to have a very high income and net worth to qualify, and the qualifying process can be a bit intimidating. But if your first thought is, ‘I’ll just have my people handle it,’ you’re in the right frame of mind!

 

For the rest of us, the good news is that the Federal Reserve seems unlikely to alter the already exceptionally low rates that are available right now to everyone.  We have about two to three years of low rates ahead of us according to analysts at Bankrate Inc., the private firm that tracks mortgage rates and trends. So getting a mortgage now puts us in the historic low range.

 

So, even if you aim high, you can keep in mind that these days the bottom ain’t so bad, either.  Considering getting a mortgage in San Ramon, Danville, Pleasanton, and Dublin?  I’m here to help you every step of the way.  Call me anytime for first-rate referrals.

 

Danville and San Ramon Rental Homes & the Rent vs. Buy Metric – SkippyBean Realty

For everyone who rents (or leases) Danville, San Ramon, Dublin and Pleasanton rental homes, it’s a choice that comes up every year: rent or buy. In addition to the common sense considerations everyone brings to that important decision, some financial measurements have been developed through the years that attempt to bring an element of rationality to a largely subjective decision.

Actually penciling out an answer isn’t always satisfactory because it is literally impossible to quantify elements like peace of mind. To some who own their Danville, San Ramon, Dublin and Pleasanton homes, there is great peace of mind in controlling their own destiny. To others, the worry of being responsible for a home’s maintenance or taxes makes the ‘peace of mind’ factor a wash — or even a negative.

Likewise, those who lease Danville, San Ramon, Dublin and Pleasanton rental homes may find the lack of responsibility liberating…or the lack of control bothersome. It’s a personal preference. What makes it even less subject to mathematical measurement is that anyone’s preference is likely to change due to life and career factors. (Just try to measure that, bean counters!)

 All this is to introduce a new one of those metrics just introduced by Zillow this month. The metric, which is a pretty clever one, was introduced in an online article by Zillow’s Nalina Varanasi. Her all-but-hilarious introduction describes traditional methods used to try to quantify the rental homes vs. owned homes financial tradeoffs. The unintentional amusement arises from the 850 words and seven paragraphs it takes to describe just two of them. The mind-numbingly complex ratios-divided-by-more-ratios explanations are invariably followed by phrases like, ‘but the main problem with this’ or ‘still, this doesn’t account for…’

 Zillow’s new measurement is also exceedingly complex, but yields one simple number. They call it the ‘Breakeven Horizon.’ It’s the number of years after which buying becomes more financially rewarding than renting. (At the exact number, it wouldn’t make a difference one way or the other). Since the Breakeven Horizon can’t take into account the very real personal value judgments, it’s as flawed as all the others. But it does yield an interesting nugget: in general, as a nation-wide average, it has been moving downward. Right now, the break-even point for most homes in the U.S. is around three years. In places like Miami-Fort Lauderdale, the break-even period comes in a scant 1.6 years.

Still, I have to admire author Varanasi’s boldly self-aware skill in her choice of headlines. Her announcement of the new Price Horizon metric is titled,

“Should You Buy or Rent? Depends on How Long You Want to Stay and Where You Want to Live (Of Course)”.

By the way, whenever you want to buy or rent, if it happens to be anywhere around Danville, San Ramon, Dublin and Pleasanton, don’t hesitate to give me a call!  We’ll find you the home that fits your needs (Of Course)!

 

You’ve Got 5 Seconds To Sell Your San Ramon & Danville Home

You’ve Got 5 Seconds To Sell Your San Ramon & Danville Home.

It’s 9 O’Clock: Do You Know Where Your Listing Is? – Call SkippyBean Realty

It’s 9 O’Clock: Do You Know Where Your Listing Is? – Call SkippyBean Realty.

Home Automation: The Next Big Thing? – SkippyBean Realty 925-999-9891

 

Advanced technology has become such a prominent feature in our everyday lives it is no surprise that it’s increasingly affecting San Ramon, Danville, Dublin, and Pleasanton CA home values. As “Home Automation” features grow in importance, bottom-line home values are following suit. It’s a new phenomenon, one that motivated home sellers (as well as homeowners heeding long term home values) should understand. 

 

Home automation – the inclusion of luxury technological features like temperature control, lighting control, security systems and the like – are becoming more commonplace, increasing home values in the process. A few years ago, adding such bells and whistles to an existing home would probably have been more pricey than the return would justify — but that is becoming ever less true. Think hi def flat screen TV and you’ll have a good example of the direction home automation is headed: ever-improving features for lower and lower prices.

 

As automated features become more widespread and their prices lower, some of them are growing increasingly simple to add. And the scope of home systems and their effect on home values can be quite varied. For some, adding an ‘automation system’ might consist of something as simple as installing remote or automatic control of a few lights. Others might make electronic security the key, choosing to install a full-fledged central system.

 

Where wireless home Internet networks are already in place, home values can easily be raised by the addition of remote operation. Right now that may sound like an unnecessary futuristic feature, but it may turn out that being able to control lights or heating systems from afar could substantially increase energy efficiency (along with home values).

 

Matthew Berman, one of the owners of New Yorkdesign firm Workshop/apd, was recently quoted in the New York Times describing a “whole-home” lighting system.

“A popular feature of this kind of system is the ability to hit one button when you’re leaving your house to turn off all the lights.” As a practical matter, he also recommended keeping automated systems separately controllable, making them less complicated to operate and less subject to breakdown.

 

It’s important to think long-term as well as short-term — especially for anyone looking to increase home values, whether for future or immediate sale. Home automation is looking like a worthy candidate for the Next Big Thing, and buyers might be ready to gravitate toward advanced features that distinguish one San Ramon, Danville, Dublin, andPleasantonCA seller’s home from the competition.  Call me if you would like to discuss how home automation might come into play when it comes to selling your San Ramon and Danville home. 

Selling a House & the Art of the Kitchen Remodel

 

San Ramon,Danville,Dublin, andPleasantonhomeowners who happened to read last Wednesday’s Associated Press article were certainly cheered up. “Most economists,” it read, “said that the January report was encouraging, especially when viewed with other recent positive housing data.” The A.P. was discussing the most recent NAR. report that sales of homes had increased 4.3%. The same report indicated that although prices were still depressed, the pace of decline has been slowing markedly.

 

So, for anyone who has been putting off selling a house in San Ramon,Danville,Dublin, andPleasanton, it is becoming clear that the overall market is headed back up. But what to do about those prices? Sit and wait? For those who have waited long enough, there are positive actions that have long been used to affect the market value of homes. Prime among them: the low-cost kitchen remodel.

 

Appliances

One kitchen-remodeling shortcut is to simply replace old appliances with new energy-efficient ones. A new range, oven, dishwasher and refrigerator are straightforward kitchen upgrades that can’t help but increase the odds of selling a house. To save money, consider buying from appliance warehouses or even online. Another idea is to reface appliances that are more serviceable than they look – an especially apt approach for stainless surfaces that just cannot be revived.

 

Kitchen Cabinets

Putting a new face on old cabinet doors and drawers give a kitchen a fresher look. Experienced hands choose classic designs in neutral colors to appeal to the greatest number of potential homebuyers. Check the home improvement stores. They usually have a wide range of low-cost panels that fit most cabinets. An even thriftier option is to simply change the hardware on cabinet doors and drawers. New hardware gives a kitchen a different look – but please — instead of gold, go for stainless steel or brushed nickel (a look today’s San Ramon,Danville,Dublin, andPleasantonbuyers generally prefer).

 

Sinks and Faucets

A gleaming new sink and faucet can also improve the chances of selling a home. Many people favor a stainless steel sink, but it is the fresh caulking and shine that really screams “new”.  New faucets that are stylish and functional also improve a kitchen’s salability and are one of the absolute cheapest quick fixes for any kitchen. Just be careful that any new purchase is compatible with the existing fittings.

 

When it comes to selling a house, there are many things the homeowner can do to improve its salability yet don’t cost an arm and a leg. Simple kitchen remodeling efforts needn’t be overly expensive, but can greatly improve the walk-in appeal of the entire property.  If you are

considering selling a home in San Ramon,Danville,PleasantonorDublin, give me a call today to discuss a price evaluation.  We can also talk over some quick improvements you might make to take advantage of the upcoming spring market.

 

How Foreclosures Affect San Ramon, Danville, Pleasanton, and Dublin CA Home Values – SkippyBean Realty

How Foreclosures Affect San Ramon, Danville, Pleasanton, and Dublin CA Home Values

News reports of foreclosures and their effect on the real estate market seem to be part of the new normal, especially in the areas hardest hit by the housing market slump and slow pace of recovery. True enough. But (even more than politics) all real estate is local. What is true in one market does not necessarily apply in another. Whether foreclosures in San Ramon, Danville, Pleasanton, and DublinCAaffect home prices here, and how much, depends on several independent factors.

The number of foreclosures sold compared to the number of non-foreclosures sold is the most important factor affecting home prices. As the National Mortgage Professional Magazine notes, it’s all relative. Take as an example (not San Ramon, Danville, Pleasanton, and Dublin CA) an area where most sales are foreclosures. The situation dictates that appraisers and agents use those foreclosures as fully weighted comparables in their appraisals and comparative market analyses. In contrast, prices in a town with fewer foreclosure sales compared to non-foreclosures will be less affected. Those foreclosures appear more like aberrations than true representations of the whole market.

Prices of foreclosures are another important factor.  Throughout 2011, foreclosures frequently sold for something around 30% less than non-foreclosures, according to many national studies.  The lower the selling price of the foreclosures, the more they draw down comparable estimates and the affected market.
Proximity is an important factor, as anyone with a nearby foreclosure will agree. But “spread” is important, too. If they have occurred at every price point in every subdivision, prices are likely to be impacted more severely than if foreclosures are confined to a distinct area.  A clear example occurs when two subdivisions out of dozens contain the lion’s share of foreclosures. Of course, prices within the unlucky subdivisions will inevitably be more severely impacted than prices elsewhere.

If you are considering selling your home and would like to know how foreclosures have affected prices in your neighborhood, give me a call.  I will be happy to offer you a complimentary consultation and price evaluation.

“What’s Most Important in a Real Estate Agent?” – Brooks Landry – SkippyBean Realty – San Ramon CA Real Estate

What would you guess is the most important skill or quality when it comes to choosing your San Ramon,Danville,Pleasanton, andDublinreal estate agent? Since that real estate agent is someone who will play a key role in the financial event most families consider the most important they ever face, it’s well worth investigating. When you buy or sell a home, it almost always turns out to be an indelible milestone in the family’s history. So what quality is most important in making the choice of who you want to play that key role?

The week of January 21^st  the National Association of Realtors announced the results of a survey that addresses the question in a serious way. As published in their Economists’ Outlook, the answer is both surprising and – when you think about it – not so surprising at all.

Communication and negotiating skills both come up as key factors that buyers consider important. Both qualities are considered necessary to instilling confidence among the parties to any home sale. Nobody wants any surprises during the process; everyone wants to know what’s going on at all times.

Knowledge of the real estate market, which is key in establishing and relating the real values in a home sale, is valued even higher. Knowledge of the purchase process — the ins and outs of the technical details of what is often a complex series of requirements — is thought to be even more important for a real estate agent.

But those are not the most valued quality according to the NAR survey, which was national in scope. It queried a national sample of actual recent buyers of new and previously owned homes, so the answers they report are based on real experience with real estate agents by real home buyers.

Slightly more important was ‘responsiveness’ — which I personally think of as the service side of communication. It means that the national sample of home buyers think a good agent not only knows the right answer to the many questions that come up, but also knows how to answer the phone!

So that leaves the last and greatest quality that real buyers value: and it’s the hands-down winner with an overpowering 98% of all buyers in agreement. The quality is honesty and integrity. More important than knowing the market? Than people skills? More important than keeping in touch?  More important than mastery of the legal and technical issues?

You bet!

The Importance of Having a Good Appraiser in Your Corner

Importance of Having a Good Appraiser in Your Corner

“Your house is probably your biggest single investment. Get it appraised properly to get the best return on your money.” – Myra Cristobal, Bankrate.com

Everyone knows who real estate appraisers are: they are the licensed professionals who estimate the price or worth of San Ramon,Danville,Pleasanton, andDublin properties. Their estimates are used as the bases for different purposes such as determining a mortgage limit, arriving as a negotiated selling price, or calculating property tax rates.

Their appraisal product is far more than a dry financial document. It is a story with a purpose — a purpose that impacts the future of everyone connected with a real estate transaction. Like any good story, it needs to be based on familiar and realistic premises, and its conclusion needs to be compelling. Major decisions will rest upon it, so if it supplies convincing evidence for its conclusions, it is likely to be given great weight.  That’s why there are bottom line reasons for every San Ramon,Danville,Pleasanton, andDublinreal estate buyer and seller to be able to rely on a good and knowledgeable appraiser.

First is the fact that there is a wide range of skill in the appraising community.  Appraising is not a simple task. A professional appraiser needs to have a history of combining experience, focus, and accuracy for his or her appraisal to carry weight with both buyer and seller.

Another reason to seek a well-qualified appraiser is that his opinion will top the list when mortgage loans are brought into play.  Getting a home approved for a mortgage in today’s market can be a daunting task.  A key factor in that equation – especially when it comes to bank-owned or short sale properties – is the appraisal product. Banks need to see that the numbers make sense (and will usually rely on their own appraiser). If you hire an appraiser with thin experience in the San Ramon,Danville,Pleasanton, andDublinmarket and little acquaintance with area comparable sales, his opinion may well be eliminated from the calculations.

And that brings up the third and vital reason: an excellent appraiser will know today’s San Ramon,Danville,Pleasanton, andDublinmarket inside-out. The current market price of any property cannot be accurately understood without analyzing the market itself. Just as all markets fluctuate, the price of a house yesterday may not be its value today. A good appraiser should be able to produce a price on a property for sale quickly and accurately, and then document his appraisal to convincingly relate area comps to it.

Whether the subject property is yours now or one you hope to make your own, it is in your interest to make certain that the appraisal is as accurate as possible. It is also why well-networked real estate agents bring great resources with them — including qualified and reliable professional appraisers.  If you are looking to buy a San Ramon,Danville,Pleasanton, andDublinhome, I hope you will consider allowing me and my team place our resources at your service!

 

 

New Software for ALL SkippyBean Realty Clients!!

IT’S HERE!!!!

All of my homeowners in the East Bay have been wanting a program or access to a program that would give them an accurate….really accurate assessment on their homes market value and whats going on in their neighborhood.  This program is our monthly Market Snapshot that gives all homeowners accurate info on the most recent home sales and most recent active listings, including foreclosures and short sales in their neighborhood. If you own a home you need to check this out.  On top of the home value option it compares local schools with all the information and grades as well as lists local stores.  We can have it set up to a monthly email update, bi-weekly email update, or quarterly email update.

Check us out at http://www.SkippyBeanRealty.com and click on the Market Snapshot tab! Its Zillow times 100!