A Little Perspective on Today's Market

I just returned from a two-day real estate seminar that I regularly attend (presented by Buffini & Company), and wanted to share some of the statistics and information on the real estate market that were discussed.

Newspapers and the cable news networks continue to talk about the foreclosure mess. And, it is indeed a mess, but the singular focus on this story is distracting from some other fascinating numbers and stories. So, this is a healthy reminder to have a little perspective on the market, and to look past the alarmist reports out of the media.

Did you know that as of July 2007, right before the subprime problems began to emerge, that about 97% of all mortgages were current? And that about 30% of all real estate was owned free and clear, unencumbered by mortgage obligations? The real surprise is that those numbers have not changed all that much in the intervening months. As of November 30th, 95.1% of all mortgages are current.

Various forecasts predict that about 20-30 billion dollars are going to have to be written off because of foreclosures on subprime loans. That sounds terrible, but given that there are almost 10 trillion dollars in mortgages out there, that is less than 1 percent of all mortgages being affected by the subprime fallout.

It is a very complicated economic situation, so it is important to have some perspective on the big picture. But, keep in mind that the market is simply correcting itself. There are and will continue to be some negative results for some individuals and a ripple effect through some sectors of the economy. Yet, interest rates are terrific right now, There are some hot deals and motivated buyers out there, and it is a great time to invest in real estate for the future.

Next week, I will be mailing out to my regular clients a detailed look at the 2007 real estate market and a look ahead to 2008. If you would like information on the market from a trusted advisor, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

The East Bay's "Green Corridor"

Four major East Bay cities--Oakland, Berkeley, Emeryville and Richmond--have announced that they will work together to create what they call the "Green Corridor," a business region comparable to the Silicon Valley that will focus on Green technologies and solutions. This is a terrific commitment that should greatly benefit the local economy and, of course, the earth.

According to the Oakland Tribune, the cities will work together to "create programs and policies that promote energy conservation, green construction, a green industry and more. They plan collectively to seek state, federal and private money for research, job training and job placement targeting high school and community college students."

I hope to see this take off in the coming years, and it feels like we have a huge head start with so many leading edge eco-friendly developers and companies like the Alameda County Computer Resource Center, the City of Berkeley's new solar initiatives, and companies like EcoHome Improvement, Build It Green, and Bio-Diesel Hauling. These are just the tip of the iceberg, of course, and don't forget Lawton Associates own green condo development Gate 48 in the Temescal district!

Living in the East Bay, it is just so easy to go green, and I am happy to see the local city governments providing the incentives and vision to take us even further.

Berkeley's Golden Duplex Rule

Every town has obscure laws that can be confusing, and one to be aware of in Berkeley is the "Golden Duplex" rule. If you are buying a duplex with tenants in Berkeley, or if you are a tenant in a duplex that is being sold, it would be wise to find out if your duplex qualifies as a "golden duplex."

Strictly speaking, a Golden Duplex must meet two criteria. First, back in 1979, one of the two units must have been occupied by the owner at that time. Second, one of the units must now be occupied by the current property owner. The property is allowed to have changed owners (and tenants) during this time, but if these two criteria are met, then the property is a Golden Duplex.

Why is this important to know? Because properties that qualify as Golden Duplexes are generally exempt from Berkeley's strict eviction protection laws. Normally, tenants have a lot of protection from the City of Berkeley, but tenants in a Golden Duplex can typically be given a standard 30-day eviction under almost any circumstance.

This seems like quite an arbitrary rule, but there is a logical history. Duplexes are generally considered to have tenants who have a more familial relationship, especially when one of the units is occupied by the owner, so strict eviction protections should not be necessary. The rule does not apply to all duplexes in the city out of concern that all duplexes would become owner-occupied and there would be fewer rental units available. So, the dividing line was drawn at 1979, which was the year that rent control was introduced in Berkeley.

Obviously, this can be a complicated matter, and a lot of research and lawyers might be necessary. But, having a duplex confirmed as a Golden Duplex can be done. If you have questions about Golden Duplexes or other Berkeley rent control issues, just let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Getting Ready to Move

So, you have sold your house and bought another one. You thought that was challenging, but now comes the hard part--actually moving all of your stuff from one home to another. Whether you are moving across town or across the country, moving has the potential to be one of the most stressful events in your life. Here are some tips to help make moving day a little bit easier.


Make your moving van reservation two to three weeks ahead of time, and call to confirm regularly. For a standard two or three bedroom house, you will probably need at least a 20-foot truck. Consider reserving a dolly to help you move your larger items.

Get your boxes ahead of time, and consider spending a little more money on "auto bottom boxes." These are standard-sized moving boxes that pop into place and have an easy folding mechanism to close the box. No tape needed, and the box is securely closed in seconds.

Other supplies to have on hand include marking pens, strong packing tape and a tape gun, strong scissors, bubble wrap or other padding material for dishes and small fragile items, and blankets or furniture pads for protecting larger items.

You will need to keep some necessary possessions unpacked until the last minute. Keep a few changes of clothes and a toiletry bag handy, as well as a few towels and sheets. With all this activity is recommended to keep a first aid kit handy, too. Keep some disposable kitchen items around for simple meals, plus some activities to keep kids and pets happy. And, make sure to leave all of your cleaning materials easy to access.

Moving with pets can be very stressful for them. On moving day, keep them confined to one room, so that they will be the last members of your family to go into the car. When you get to your new home, take care of them first by placing them with love and attention in a room while the truck is being unloaded.

There are so many complicated aspects to moving, and everyone's situation is unique. If you have questions, or would like a complimentary Moving Tips guide, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Rumor Control--Foreclosures

A few weeks ago, I wrote a blog entry on the basics of the foreclosure process. With so much in the media about foreclosures almost every day, people have a lot of questions about foreclosures and how they work.

In addition to sharing this information, I would also like to help put an end to the rumors that buying foreclosures is an easy way to make money and get deals in real estate. It is possible to get deals and make money, but it is definitely not EASY, and there are many many pitfalls to watch out for.

I worked in foreclosures for about seven years throughout the 1990s, so let me share some tips and information from my experiences.

First, there are not that many foreclosures in the more desirable neighborhoods of Oakland and Berkeley. In fact, most of the East Bay foreclosures are in cities like Antioch and East Oakland, so finding a foreclosure that you might like will be difficult from the get go.

Second, buying foreclosures on the courthouse steps can be a tricky business. First, the bank wants to get their money back, so the opening bids may not be as low as you would hope. They will also require buyers with all cash. Plus, there are some very experienced players there who know how to game the system to their advantage. Buyer beware!

Third, it is very, very difficult to know the condition of the house in foreclosure that you are buying, since you probably won't be able to go inside before you buy it. It could be a neglected property in disrepair, or the person losing his or her home might be upset and cause intentional damage. Also, make sure you know exactly which deed of trust you are buying.

If you are looking for deals in foreclosures, it is probably best to wait until the bank has to sell it on the open market. At that point, the banks might be willing to make a deal. After all, they are not in the homeowning business. But, bear in mind that the sales will likely be on an "as is" basis and excellent credit is necessary.

I said it before and I will say it again--foreclosures are a tricky business. If you have any questions about buying foreclosures, let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Guide to East Bay Farmer's Markets

If you live in the East Bay and live for fresh locally-grown produce, then you are in luck. There are more Farmer's Markets in our region than you could ever believe. You can get fresh lettuces and peppers and berries and oranges and almost anything your heart desires at a local Farmer's Market every day of the week (Except Mondays...the farmers need a day off, too!).

Here is a quick daily guide to East Bay Farmer's Markets. Maybe you can run out on your lunch hour and pick up some fresh produce for tonight's dinner!

TUESDAY: Alameda (Taylor & Webster), Berkeley (Derby & MLK), Concord (Todos Santos Park), El Cerrito Plaza, Union City (Kaiser), Walnut Creek (Kaiser).

WEDNESDAY: Hayward (Kaiser)

THURSDAY: Berkeley (Shattuck & Rose), Concord (Todos Santos Park), Fremont (Kaiser), Livermore (Carnegie Park), Martinez (Court & Main), Martinez (Kaiser), Oakland (Fruitvale).

FRIDAY: East Oakland (73rd & International), Fremont (Nummi), Oakland (Kaiser Piedmont), Old Oakland, Richmond (Civic Center & McDonald), Walnut Creek (Rossmoor).

SATURDAY: Berkeley (Center & MLK), Brentwood (2nd & Maple), Castro Valley (BART), Danville (Railroad & Prospect), El Cerrito Plaza, Fremont (Centerville), Hayward (Main & B), Oakland (Grand Lake), Oakland (50th & Mandela), Oakland (Millsmont), Oakley (City Hall), Orinda (Avenida de Orinda & Orinda), Pinole (Pear & Fernandez), Pittsburg (Railroad & 6th), Pleasant HIll (City Hall), Pleasanton (W. Angela & Main), San Leandro (Bayfair), San Ramon (Forest Home Farms), Union City (Old Alvarado), Vallejo (Downtown).

SUNDAY: Crockett (Pomona & 2nd), Oakland (Jack London Square), Kensington (Arlington & Amherst), Martinez (Main Street), Oakland (Montclair), Moraga (Moraga Rd & Moraga Way), Newark (Newark Mall), Oakland (Fruitvale), Oakland (Temescal), Walnut Creek (N. Broadway).



Please keep in mind that some Farmer's Markets are seasonal and might be interrupted due to rainy weather. For more complete information and regular updates, please visit the terrific East Bay food website EdibleEastBay.com.

If you are looking for great resources around the East Bay, just let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Safety Measures for New Homeowners

Oh, it is so exciting to move into your new home. So much new space to explore and discover. Buying and arranging new furniture and decor. Having your friends and family over to see the new home. But, before you get too comfortable, there are some simple safety measures you should take make your home the haven it should be.

• Introduce yourself to the neighbors and exchange contact information. In the event of an emergency or natural disaster, these will be the people you rely on.
• Install an automatic gas shut valve. This is especially crucial in earthquake country.
• Secure water heaters. And while you are at it, make sure that cupboards and furniture won't tip or fall if there is an emergency.
• Re-key all the locks to the home. You never know who the previous owners provided keys to.
• Keep vegetation trimmed to prevent fires.
• If there is extra reason to be concerned, install a home alarm and outdoor lighting.

There are many ways to make your home safe. If you would like more ideas, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.