2007 Toy Drive for Toys for Tots

Join Me and Lawton Associates in supporting the annual Toys for Tots drive to help gather toys this holiday season for underprivileged boys and girls. Just bring an unwrapped toy (or 2 or 3 toys!) to the Lawton Associates office in Rockridge, and then join us for holiday treats.

We will be accepting toys Monday through Friday, 9am to 5pm, until Friday, December 14th. Don't Delay! The Lawton Associates office is located at 3160 College Avenue (at Alcatraz) in Suite 201. We are right above Noah's Bagels...just come up the stairs.

Happy Holidays, and thank you for supporting Toys for Tots!

If it is a Buyer's Market, Why Aren't They Buying?

Everyone keeps saying that it is a buyer's market. And, it sure looks like one. There is a lot of inventory on the market, sellers are dropping their prices, and good loans are still available. Well, someone better tell the buyers that it is a buyer's market, because a lot of them are still holding back.

Why are buyers being so reticent in this market that appears to be working in their favor? After years of multiple bid offer situations and paying astronomical prices for modest homes, one would think that buyers would be jumping at the chance to get some of the deals that are out there now. I have a few ideas.

Buyers are unsure about the mortgage market. A lot of people still think that good mortgages are not available, but the mortgage market has come back after a brief period of crisis. Sure, the crazy sub-prime loans to people with questionable credit may not be available. But, if you are a solid buyer with good credit, there are plenty of attractive loans available.

Buyers are unsure about the long-term value of a home purchase. Real estate is almost always a good long-term investment. If you are looking at a quick flip investment, right now might not be the best time, especially for amateurs. But, if you are planning on being in your home at least 5 to 10 years, you shouldn't be worrying too much about value.

Buyers are worried that prices will go down. There is a fear among buyers that they might be getting a good deal, but that if they hold out they might get an even better deal. But, if you find a home that you love and you are willing to make a deal on it, that is the right value for you. And, if you can get a good loan and plan on staying in the home for 5 to 10 years, you have nothing to worry about. Plus, if you wait, you might miss out on the home of your dreams.

The real estate market is a living breathing animal that changes all the time. If you have questions about the market, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

It is the Market, Not the Marketing

As the market continues to correct itself after these turbulent months, most houses are taking longer to sell. It is a good time to remember that in most cases, it is the market, not the marketing.

Many sellers are still in denial that their house won't cause a bidding war. They still think that they can list their house higher than the market will bear, and that they will get offers over the asking price. This is becoming a rare occasion, limited to the nicest homes in the best neighborhoods.

Buyers are also becoming more fickle. They know they have the upper-hand in most negotiations, due to the amount of inventory on the market and the slowing market activity. Many buyers are taking their time, making sure they have good financing, implementing all contingencies, and doing lots of inspections. And, they should.

I keep hearing from other Realtors about all of the effort they are putting into their listings, and frustrated that they aren't getting offers. They build elaborate websites, have multiple open houses and broker tours, send out fliers and postcards, and more. Even though they might get hundreds of potential buyers and agents through the property, they are no takers.

No matter how many people visit the home, you just need to get that one buyer who is perfect for the home. That is what can be frustrating about real estate marketing. Most marketing, such as for consumer products or movies, is geared to sell as much as possible. Whereas real estate marketing is all about getting that one perfect buyer.

So, remember that when it comes to the real estate market, it is usually the market and not the marketing that affects sales. When the market is hot, you can do very little marketing and get multiple offers. When the market is slow, you can market your heart out and still get nothing. The market at large sets the pace and the price.

If you have questions about the real estate market, especially here in the East Bay, let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Giving Thanks--Housing Consortium of the East Bay

Thanksgiving seems so early this year, so we better get a jump on thinking about what we are thankful for. My mind always turns to community organizations and non-profit groups, and I would like to give thanks and a big shout out to the Housing Consortium of the East Bay (and I hope you will consider supporting them as well!).

The Housing Consortium of the East Bay creates affordable, accessible housing for persons with developmental disabilities in Alameda and Contra Costa Counties. HCEB's supporters include family members of persons with developmental disabilities, professionals who provide funding, coordinating and direct services, advocates and other interested community volunteers. Activities include housing development, planning, resource development, training, technical assistance, and coalition building.

I have worked with Darin Lounds, who heads up HCEB, to acquire 15 properties in the last 18 months, allowing the developmentally disabled people they work with to live in comfortable home environments instead of large-scale care facilities.

So, join me in giving thanks to HCEB. And, stayed tuned for an announcement about our brokerage's upcoming community support program for the holidays.

What to Expect During Escrow

The escrow process is a mystery to many real estate consumers, especially first time home buyers. What happens during this period, and what should you expect? If everything in the transaction goes according to plan, it should be smooth and seamless. But, as they say, always expect the unexpected.

The escrow process is basically taking this very complicated financial transaction involving large sums of money and property and then putting it into the hands of a neutral third party. When a buyer makes a purchase offer in California, the standard purchase offer form is also a set of escrow instructions. If the seller agrees with all of the details, he or she signs the contract, and an escrow account is opened at the mutually-agreed upon escrow company (such as Placer Title).

The escrow officer gathers all the documentation from both sides of the transaction, plus the buyer's deposit check. This check is deposited in an escrow account, and all sides must agree before the money in the account is transferred. That is one reason why an impartial third party is so important.

Another role that the escrow officer takes is making sure the buyer's financing paperwork and the seller's loan payoff information is all in order. Then they will prepare all the necessary documents and closing statements needed to transfer the property from the seller to the buyer. This also includes handling any title paperwork with the city and county, as well as arranging title insurance.

Sometimes disagreements arise during the escrow process, and the escrow officer is there to facilitate getting all parties in agreement. Sometimes the contract and paperwork needs to be amended. But, sometimes, an agreement cannot be reached and the transaction is cancelled; in which case, the escrow officer will oversee the transfer of any monies in the escrow account.

This is just a simple overview of the escrow process, and there are many more aspects to it than this. Of course, it can also become complicated and sticky, but we are always thankful when it works out smoothly. If you have questions on the escrow process and how to make it go as easily as possible, just let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

San Francisco Bay Area Oil Spill--What You Can Do

Almost 60,000 gallons of oil have spilled in the bay, after a large container ship scraped up against one of the Bay Bridge towers. Most beaches are closed. Surfers have been getting covered in oil, and even getting sick. Waterfowl and other wildlife are being injured and killed by the spill. If you are looking for a way to help, here are some resources to check.


Volunteer efforts have not yet started, although many people are eager to help. Check the Oiled Wildlife Care Network website, run by UC Davis or call (800) 228-4544. They will be posting information later today or this weekend on how you can help. If you come across oiled wildlife that needs help, call the Oiled Wildlife Care Network at (877) 823-6926. And, do not try to handle or clean any oil-soaked birds or animals yourself.


You can also help the clean-up by simpling reporting on the movement of the spill by calling O'Brien's Group, the private cleanup company that is already getting started. They can be reached at (985) 781-0804.


You can get additional information and updates at the California Coastal Commission website and the San Francisco Chronicle website. And here is a Google Map of the affected areas:

You Have to Spend Money to Make Money

Remember the old adage that you have to spend money to make money? Well, it certainly is true if you are planning to sell your home, especially in this market. They key word there is "planning". If you plan ahead, you will have a better sense of the scope of work and spending that will be required to sell your house. So, what are some categories of planning that you should budget for?

Inspections. You should have several inspections to make sure your home hasn't developed any problems that need to be disclosed. Some inspections to consider are pest/structural, general home inspection, sewer lateral, chimney, and roof. Keep in mind that you will need to include any inspections in your home's disclosure package. Inspections can cost you a couple thousand dollars, depending on what you schedule.

Repairs and Updates. Based on what the inspections turn up, you may need to have some repairs done. Perhaps you will need some work on the sewer or roof, or perhaps an update to the electrical system. It is hard to budget ahead for this until you get the inspections done. You may also want to consider updating features in the home, such as an out-of-date kitchen or perhaps adding dual-pane windows. A good Realtor can help advise you on what will make your home more attractive to the market, and how to do it in an affordable manner.

Staging and Landscaping. This topic has been discussed several times here before, but a home with attractive interior design and clean landscaping goes a very long way toward improving your curb appeal. Depending on the size and needs of your home, this can cost in the range of $2-4,000.

Commission. It might seem self-serving to bring this up, but this is how Realtors get paid. And, having a healthy commission available to the buyer's agent will likely cause more agents to bring clients through your home. The typical commission rate in this region is 5-6%. You might also want to consider an incentive to the Buyer's agent, such as a bonus. Commissions are paid at the close of escrow after the house has sold.

Closing Costs. There are many costs associated with the legal transfer of property, including transfer taxes. The standards for which side pays which fees varies from region to region, and this will typically come out of any proceeds.

The costs of selling a home vary drastically from transaction to transaction. If you would like help planning a budget & schedule for selling your home, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.