So, What's a Short Sale?

In this changing real estate market, everyone is talking about "short sales," but the regular consumer might be left wondering what exactly a short sale is. While we Realtors know all about them, this is something every homebuyer on the market should be aware of. So, here is a quick introduction to the world of the short sale.

A short sale happens when a homeowner:

• Can't make their mortgage payments
• Is facing foreclosure
• And the market value of the house is less than the loan amount

So, a short sale is basically selling the house for less than the amount owed on the house. This allows the homeowner to avoid foreclosure and make good on their loan obligation. It will affect the homeowners credit, but it is typically not as bad as having a foreclosure or bankruptcy on your record.

Of course, any short sale is subject to the approval of the lender. But, they will often approve the short sale because banks are not in the business of foreclosures. They do not want to take possession of the house and then have to sell it. They just want their money back.

Preparing for a short sale will require a lot of paperwork, communication and patience for all paperwork. It is not a typical real estate transaction, and the close of escrow can take longer than normal.

Short sales can be complicated, but smart buyers can find some good deals. Other sticky issues to be aware of concerning short sales are taxes, disclosures, the lender approval process, and more. If you have questions about short sales, just let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Oakland's New Seismic Retrofit Incentive Program

If you are an Oakland homeowner, you simply must consider taking advantage of Oakland's new seismic retrofitting incentive program. And, if you are buying a home in Oakland, there is no reason not to retrofit your home. The City of Oakland is making it very easy and very affordable for you to save your home in the next earthquake.

First, the permitting process for retrofitting has been made cheap and simple. There is now just a flat fee of $250 . This includes the cost of the permit and sending an inspector out to approve your plans. Previously, this could have cost you an extra couple of thousands of dollars, depending on the scope of your project. But, now it is $250 whether it is a simple bracing or a major seismic retrofit project.

Also, to make things simple, the City is providing a set of pre-approved basic plans that can be used or altered for most homes in Oakland. This will save you even more money, because you will not have to spend as much on engineers and architects.

Finally, and here is the biggie, you can get a rebate of up to $5000 on your seismic retrofitting when you buy a home in Oakland. If you submit your $250 permit application in the first 60 days after recording the property transfer, you can qualify for this rebate. You then have 180 days to get your retrofit plan approved, and another year to complete the work. At that point, you can be reimbursed half of your city transfer taxes, up to $5000. (What makes this deal even better, is that you probably only paid half of the city transfer tax as part of your purchase).

So, I urge all Oakland homeowners to look into this great new program. Spending some time and money now on this matter, could make your life a lot easier (and save you tens of thousands in repairs), when the next Big One hits. Find out more from the City of Oakland's website.

If you live in Berkeley, that city also has a very good incentive program. If you have any questions about seismic retrofitting and civic incentive programs, just let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

EcoFabulous!

From time to time, I like to write about the green movement and how it applies to real estate and home design. So, today I want to point you in the direction of a fabulous blog--Ecofabulous.com.

Ecofabulous is run by Zem Joaquin (and what a great name is that?), a design professional with a background in green technologies and philosophies. She is also the "green editor" at House & Garden Magazine. And, in the current issue of H&G, they take a look at Zem's own ecofabulous home here in the Bay Area, which she has fashioned into a green dream home without compromising aesthetics or quality.

Here are some great tips that can gleaned from her greening:

*Buy a classic house with "great bones" that you can work with.

*Retain as much original flooring and construction as possible, so as not to create waste for landfills.

*Use as many reclaimed and recycled materials as possible. She used a cork flooring made from a winery's unused materials!

*Use vintage and antique design pieces instead of newly manufactured pieces.

*Use use non-VOC, non-toxic paints and finishes.

Read Zem's blog entry and link to the House & Garden article here at the Ecofabulous website. If you would like more information or guidance on greening your own home, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.


*Photos courtesy of Ecofabulous and House & Garden.

Buyer's Market=Seller's in Mourning

So the market seems to be settling down somewhat. The last few months have been a bit crazy. And, as I've said before, the market is not plummeting or caving in...it is simply correcting itself. A lot of questionable practices led us to where we are now. And, where are we now? It looks more and more like a buyer's market every day. So, where does that leave the sellers?

On this point, I would like to defer to the wisdom of real estate guru Joe Niego, one of the top presenters with Buffini & Company (the real estate coaching service I use, as many of you know). Joe says that sellers are currently going through the classic five stages of mourning.

Many sellers bought real estate in the last 5 to 10 years, saw their neighbors real estate profits go through the roof, and expected the same will happen for them. In fact, many of them think they fairly deserve it. Unfortunately, the market dictates price, and that leads to sellers in mourning, as Joe says.

So what are the five stage of mourning you might expect to go through if you are getting ready to sell your home?

1. Denial--"This won't happen to my amazing house"
2. Anger--"Why aren't I getting top dollar, like my neighbor did last year?"
3. Frustration--"But I want and deserve a threefold profit...make it happen!"
4. Disappointment--"It is what it is, but I'm not happy about it"
5. Acceptance--"The market dictates price, and this is the price someone is willing to spend on my home."

This is also a very strong reminder of the emotional part of selling your home. It is not just a gigantic financial transaction, it is also your home. No wonder emotions can take control. If you are looking for assistance in better understanding the financial and emotional sides of selling a home, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

New Listing--4262 Gilbert

Well, I just got back from Russia (...more on that later...), and have a new listing on the market. This is a beautiful Cape Cod-style farmhouse near Piedmont Avenue in Oakland. It is on the rear lot behind another home, so it is very private. The address is 4262 Gilbert Street.

The home features 3 bedrooms and 1+ baths, and has tons of storage. With over 1800 square feet, this place is very spacious. The upstairs bedrooms feel as if they are floating in the trees that surround that house. The living room and dining room feature these very unique Venetian-style plaster walls. The kitchen has been updated with new butcherblock counters and ceramic tile floors. Plus, there is a very convenient utility room (for laundry and more storage) between the kitchen and the lush backyard. The backyard even has a treehouse and a work shed.


Such a fine home so close to Piedmont Avenue won't last long. If you would like more information or would like to arrange a tour of the home, please let me know. And, there will be an open house on Sunday, October 7 from 1-5pm. Or visit the property website. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

The Problem with Mold

Say the word "mold" in a cheese shop, and people's faces light up with visions of a pungently tasty blue cheese. Say the word "mold" anywhere near a real estate transaction, and people will flip out. Why is mold so controversial? Read on!

You might think mold will only be found in decrepit old unkempt homes, but you would be wrong. This is a problem that can affect any home, old or new, clean or dirty. (Check out the plight of these owners of new condos in Emeryville, as reported in the East Bay Express).

Mold can grow anywhere in a home, and I mean anywhere--from air conditioning ducts to baseboards to the leaves of house plants. Also, check for mold in abthroom & kitchen caulking, carpet padding, vents & ducts, behind bookshelves, and any humid damp areas. Sometimes a visual inspection is not enough and an expert must be called in to inspect.

The problem with mold is that some forms can be very toxic and could cause disease. Some of the health risks of mold exposure include: allergy attacks, asthma, bronchitis, headaches, nausea, rashes, and more.

It is best to monitor any possible mold situation and take care of it as soon as possible. A regular inspection and early remedies should be quite affordable. But, ignoring a mold problem can cost you a lot of money (like the story in that article link up above). The East Bay can get quite damp, so make sure to protect your investment in your home by keeping mold in check.

Then, go to Pt. Reyes for some great blue cheese!

If you ever have any questions about mold problems, just let us know. We are happy to help.






That luscious blue cheese pic is courtesy of Pt Reyes Farmstead Cheese. Mmmmmmm.

Getting a Real Estate License

Corey here while Mary is storming the Kremlin! Today, we'll take a look at what it takes to become a real estate agent. Perhaps you would like to become an agent, or perhaps you've just wondered what qualifies us to do what we do.

During the recent real estate boom, everyone and their dog became a real estate agent, and at one point there was one licensed agent for every individual looking to buy or sell a house in California. (How are they all supposed to make a living?)

The licensing requirements from the State of California are changing a bit as of October 1. California has historically been one of the easiest states to get licensed in, and these changes make it a little bit tougher. But not much.

The most basic requirements are that you must be over 18 years old, be a US citizen, and be able to pass a background check. The background check is supposedly quite stringent, so thankfully I didn't have any blemishes on my record.

Before you apply to take the licensing exam, you now must pass three classes. The first two classes are required: Real Estate Principles and Real Estate Practice. Principles covers the basic real estate laws, and the Practice class deals more with the day-to-day career of being an agent. And, third, you must take an elective class, which can be anything from Escrows to Appraisals to Real Estate Finance and more.

Once these classes are completed, you can take the Real Estate Salesperson exam, which gives you 150 questions in 3 hours. Study hard! Between the classes, the exam fees and the license fees, it will cost you about $750 to get your license.

Then comes the tough part...finding a good brokerage to hang your license at and getting those first clients. Thankfully, I'm working with Mary, who has been with Lawton Associates for over 13 years and she has many, many wonderful long term clients to work with.