From my lender sources, the real estate buyout started on October 1, 2008. The basic translation of bailout is you renegotiate your mortgage with your lender to reflect the current market value of the home. Seems similar to a short sale where your REALTOR negotiates with the bank for a lower SALES price. The difference is with a bailout, you do not have to sell the property.

I have had a few clients contact me about how to get started with a bail out. As with the recent changes in jumbo loan amounts, changes take about 6 months for the banks to get systems in place and get the training needed to provide the service to clients. From what I have heard, Countrywide seems to be the only bank right now, Oct, 11, 2008, that can do a bailout/buyout program for their clients. It is yet unclear to me how it will affect one’s credit.

Please let me know if you have more information about how it will affect one’s credit, if there are other banks that are offering this amazing opportunity to their clients.

For those who love a Craftsman style home, there is a BEAUTIFUL one for sale (again) at 1226 Minnesota Ave. in the Willow Glen area of San Jose. This house has 2700 sq ft., artist studio and a HUGE full height basement. It was for sale almost exactly 2 years ago for the same price at $1,425,000. The details of this home are true and original craftsman. From the dental crown molding untouched by the usual white paint (which is a crime!- please no paint!)…

to the built in cabinets in the dining room and my personal favorite a library with a sliding ladder (HOW COOL IS THAT!!)…

The stats for Willow Glen this week are 13 sales in the last 7 days and the count has gone up to 259 houses on market (up 3 from 256 last week).

What is your favorite listing right now?

Okay, financially speaking, the world is a bit scary right now. Banks are closing and being absorbed. I am reading about people pulling money out of their banks (and putting it under their mattresses essentially). Our whole economic system is morphing into something new.

That being said, people (lots of people) are still buying houses. There are amazing bargains to be found. But, how do you find a good lender? One that is less likely to be absorbed or leave you high and dry…

Here are my top 5 suggestions for finding a good lender:

1) Ask about the lenders volume. A good lender is dealing in $100Million a month or more range.

2) Ask about the length of time the lender has been in business.

3) Who do they partner with or who owns the lending company? Do those partners appear strong, do you know the names of those companies?

4) What kind of education does the individual lender have?

5) Has the lending institution ever done sub prime lending?

And, of course, your realtor should be able to guide you to a great lender!

As a realtor, I like to think I am up on the neighborhoods that I serve. Part of that is driving around a bit and checking out streets I may have not seen in awhile. Today, my meandering home took me down one of my favorite streets, Franquette. I like this street because of the huge lot sizes (I am just jealous) and how it always seems to have a house under construction. That street is really going through a metamorphosis. Anyway, today I drove by a stand out in front of someone’s home on that street that was selling tomatoes. About 7 large romas for $1.00. I have no need for tomatoes right now, but I HAD to get some! Can’t beat local and fresh for a buck!! Tacos, salads and pasta sauce for a week!

Sept. 3, 2008 was a BBQ for GMAC to celebrate its affiliates (realtors, title companies, pest inspectors etc.) It was a tri-tip, chicken and root beer float party with over 200 people attending between 3-6p. THAT DAY, GMAC announced it was closing it’s doors! Crazy!

I am told that they will be reopening with a new name very soon we shall see.

Sorry about the title, I have been doing a bit of Wii Rockband singing lately. Anyway, one of the bigger questions in real estate is about pools. Do they add or subtract value? In my experience, for single family mid range homes in a family type/professional neighborhood a pool causes any of the following thought processes to occur with buyers:

1) Typically, younger families do NOT want a pool and will either discount their offer to so they can fill it in OR often not even look at your property. Please note as with everything, there are exceptions (I have a buyer right now with young children who want a pool!). The risk of child drowning is too great for many parents (and grandparents). Pool report.

2) It depends on the location of the pool- If the pool takes up the whole yard or if you walk out the back door and have some grass and some place to entertain/play and then see a pool off in the distance (that can be gated). Young families are a bit more likely to buy if the pool is positioned away from the house and even better if it is gated (note: covers and netting are not as valued by buyers and can translate into the offer price).

3) How are the fences around the yard? Many buyers are concerned about the liability of neighbor kids coming into their yard and getting hurt at their pool because of a faulty fence, they could be liable. Fences are often thousands of dollars to replace and can also play into the offer price.

I have had two clients buy homes with pools and fill them in over the last 2 years. The cost was between $7,000 and $10,000 with permits to remove the pool. Any landscaping is an additional cost. If you have a home with a pool, I recommend getting a quote for filling it in (your realtor can do this for you). This way you have that information handy if you get an offer and the buyer wants to negotiate about the pool.

A smaller pool has less concerns as it is less expensive to fill in, easier to maintain and gate.

When I am paying someone for services, I tend to have HUGE expectations whether is is a party clown or tree trimmer, if I have hired someone for a job, I expect that person to provide good service (well, I actually expect excellent service and I will accept good service).  To me, it is a no brainer, when someone is paying me to help them buy or sell a house, I do all that I can to not only cover the basics of:

1) Answering the phone (duh, right, but how many times do you call a professional and get voice mail EVERYTIME! or some automated system- ugh!)

2) Returning emails and text quickly

3) Doing what I say I am going to do

Again, those are the basics of what I expect from someone I hired. My true expectations run deeper because I see the bigger picture of your network. If you were to hire me, you know a ton of people, it is likely you will know someone looking to sell or buy. I want you to think of me when you talk with them- simple. That is the mindset I have when I hire someone, I expect that they will want to do all they can to win my networks’ business. So, in addition to the basics, I am looking for contractors that go a bit above and beyond. They are tricky to find, but once I find them, you can bet I send them a bunch of referrals!

What contractors have you found to be excellent?

This house at 2573 Malaga Dr. has a lot to offer with a 4th bedroom that was opened up in to an office or living room, A/C 1678 sq. ft. on 7660 sq.ft. lot with hardwood floors and dual pane windows on a great street with Booksin Elem. I was shocked to read that it was a short sale and listed at $799,000. That price just does not have the ’short sale’ ring to it.

It was interesting to see all of us agents adjust our thinking once we realized it was a short sale. Because of the stress a short sale puts on the transaction and the time involved, the value in our minds appeared to drop.

As I was walking through this house I was listening to the agents discuss the details and I noticed the built in entertainment area and how my husband would be removing the wall to get his tv to fit.

Nice house and I recommend taking a look if you are in the market!

holly@hollybarr.net 408 887-3225

The count is up-that is a great thing for buyers! Willow Glen has 257 properties on market. The agreed upon healthy number is 225.  From what I am hearing from other agents and clients is that there are more houses coming on market. My hypothesis is that sellers are trying to get on market before the holiday and seasonal slowdown. I know of three listings coming to market in the next few weeks and I have heard from other top producers that they all have one or two coming as well!

While on tour this week, I saw 10 houses and my pick of the week is 911 Ellis Ave. CUTE little 2 bedroom 2 bath home with a finished bonus space off the garage perfect for an office! Beautiful remodeled open kitchen with two living spaces within the 1229 sq. ft.  (it feels like 1500 or more). Both bathrooms have been updated and all the details have been attended too. WONDERFUL treelined street and steps to downtown!

All the details are covered in this house!

Beautiful built in cabinets

Open house this Sunday 1:30.

What have you seen out there in real estate world?

When a company agrees to move you or relocate you for a new career, essentially, there are two sets of buyers and two sets of sellers all working in concert to close escrow at the same time.

1) The sellers sell the house to the relocation company (seller and buyer).
2) The relocation company (now is the seller) sells it to the buyers found through the realtors marketing efforts.
3) The buyers have an agent and a transaction perspective as a buyer and often a sale of their house that effects # 1and 2 above (possible 3rd set of buyers and sellers).

It is essential to have an agent with sharp communication skills on the phone, email, fax and even texting. With that many transactions happening at the same time everyone needs to know what is happening and what needs to be done.

(more…)