Pleasanton Real estate

Whats in a name?

What have we learned about this business?
The loan business is kinda slippery. Remember negative amortization loans? In the 1980s buyers hated those and would not touch them as since the lower monthly payments involved with them actually were insufficient to amortise the mortgage. As a result these loans became unpopular.
Fast forward 20 years and now lets introduce the neg am loan and call it…the Option Arm!
Buyers like this name, gives them the option to pay after all…..

Pleasanton Real estate

How to save money on repairs when you sell

We recently sold a house in Livermore on Arlene Way and as is normal the buyers had a structural pest control inspection which resulted in a $4000 bill for dry rot to the exterior wood siding.After the seller calmed down he asked me what we could do about this. We looked at our options for cutting the cost. Did you know that you do not have to use the same company to do the work, well you don’t but we were in escrow and only had 2 weeks before closing so here is what we did.

I had the termite inspector come back out to the house at no charge and show the seller and myself exactly what was needed. The seller being a handy guy and working nearby at LLnL
decided he could do the removal of the dry rot himself and so he did, it took him a day and a half.
We then had the termite co come back out and reinspect, give us a clearance then they replaced the damaged boards and painted. Result was a final bill for $2200 a $1800 savings for the seller for a day and a half of labor!

If you as the seller get the pest inspection up front BEFORE you place your property for sale
then

a/ you get to choose the inspector
b/ you get to bid out the work usually at a substantial savings!

Pleasanton Real estate

Why is it bad news?

Why are falling prices seen as bad news? Last few years the media has insisted that rising prices are bad news. In fact there was seldom a day that did not feature a story on the low affordability index (remember that), how fewer and fewer families could afford to buy even an ‘entry level house’ in this overheated market and so would have to rent.What about now then, now that prices are down 10 -15%? Now that prices have fallen this is great news! Affordability index has fallen sharpley, and although loans are harder to qualify for (read normal) there are good deals to be had. In the long term lower house prices will allow more folks to stay in the area. Companies who previously could not attract workers to the bay area and indeed were being forced to leave will now have the option to stay and workers will be more inclined to move here after all.

Families who in 2005 could not afford to move up to a larger home, will now find if they do the math, that it is now relatively more affordable for them to do so, and although their house will sell for less, the destination house will be purchased for proportionately less also.

Make no mistake, this slowdown although fairly widespread will not last forever, since more people are still moving into the state that moving out.

I say to sellers now, forget 2005 prices, they are gone. Be realistic and you will sell your house.
No doubt, wherever you move to, the money you feel you have ‘lost’ on your home sale, you will more than make up on a purchase. All you are doing is transferring your equity!

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