Greenspan Weighs In

Throughout the mortgage industry mess of the last few months, I've been wondering what former Fed Chairman Alan Greenspan has to say about all this. For years and years, through Clinton and Bush, his word had been gold. But I couldn't help thinking that some of the policies he put into place led to the current situation--of lenders giving to people who weren't qualified and consumers accepting loans they couldn't handle or couldn't understand.

Well, Greenspan weighs in today as part of an interview that will be airing on 60 Minutes this Sunday night.

The Associated Press reports....

"Former Federal Reserve Chairman Alan Greenspan acknowledges he failed to see early on that an explosion of mortgages to people with questionable credit histories could pose a danger to the economy.

In an upcoming interview, Greenspan said he was aware of "subprime" lending practices where homebuyers got very low initial rates only to see them later jacked up, causing severe payment shock. But he said he didn't initially realize the harm they could do.

"While I was aware a lot of these practices were going on, I had no notion of how significant they had become until very late," he said in a CBS "60 Minutes" interview to be broadcast Sunday. "I really didn't get it until very late in 2005 and 2006," Greenspan said.

An excerpt of the interview was released Thursday."

To read the whole article, click here. What do you the good folks of the Bay Area think about this?




Fun fact--Greenspan's wife is NBC's Andrea Mitchell.






(Photos courtesy of AP and Harry Walker)

More Berkeley Real Estate Regulations

Nearly every town has its own unique real estate regulations to abide by, and last week I wrote about Berkeley's RECO--Residential Energy Conservation Ordinance--guidelines that require properties to be energy efficient. Well, there is more where that came from! What other issues do you need to be aware of when participating in a real estate transaction in Berkeley?


Seismic Upgrades and Transfer Tax: The City of Berkeley has imposed a transfer tax equal to 1.5% of the sale price. But, the good news is, up to one third of the tax (0.5% of the sale price) may be rebated to pay for the seismic strengthening of the structure.

Rent Control: Berkeley has strict rent control regulations, so make sure you follow them when buying or selling a home with renters. Renters need 24-hour notice before any inspections or open houses. New owners can do "owner move-in evictions" if it is for the primary homeowner and immediate qualifying family members, but renters must be evicted properly and they may be eligible for moving and related costs reimbursement.

Creek Protection: Berkeley has a beautiful and intricate network of creeks, and homes bordering the creeks have strict guidelines for protection of the creeks. Make sure to contact the City of Berkeley to see if your property is effected by this regulation.

Sewer Lateral: Berkeley also has regulations to make sure that the sewer lateral connecting the home to the city sewer system is in good working order. I've blogged about this before, so read all about it right here.

These can be kind of tricky. If you would like more information about these and other regulations affecting real estate transactions in Berkeley, please let me know. I'm always happy to help. I can be reached at 510-547-5970 x62 or MSmartt@jps.net.

Curb Appeal

A few years ago, no one ever seemed to talk about "curb appeal," but now it comes up all the time with my buyers and sellers. Thanks HGTV! In case you don't know, curb appeal is how appealing your home looks on the street. Does its appearance invite you in with a warm embrace, or would it be a perfect place to film a horror movie?

Here are a few basic tips to help maintain your home's curb appeal:

*Every time you mow your lawn, change the cutting direction. If you are showing your home, mow it in one direction, then once again to ensure even cutting and to provide an attractive square design.

*Keep your front door freshly painted, and regularly clean the door's handle, hinges and other hardware to keep it shiny.

*When painting your home, consider the exterior build. One-story or rancher type homes should have a paint design that accentuates vertical elements. Conversely, multi-story homes should emphasize horizontal elements.

*Keep the front of your home clutter free. Arrange any lawn furniture you might have, and keep lawn tools put away in the garage or a shed.

*In planning your landscaping, avoid trees and bushes that might drop a lot of leaves, and think color and fragrance.

These are just a few simple tips that can be used for almost any home. If you would like to discuss ideas for your own home, please let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Real Estate 101

Berkeley's RECO Guidelines

As we all know, Berkeley is always ahead of the curve on many socio-political trends, especially on environmental issues. So, if you are selling a home in Berkeley, make sure you are in compliance with the City of Berkeley's RECO guidelines.

RECO stands for Residential Energy Conservation Ordinance, and the guidelines apply to all homes and apartment buildings being sold or transferred. It is the seller's responsibility to get the property in compliance and provide proof to the city. For the full rundown on Berkeley's RECO requirements, please visit the RECO website.

The compliance guidelines are fairly reasonable and will save money for the occupants in the long run. The requirements include such items as installing CFL lightbulbs, enhanced insulation, weatherstripping, and water-saving toilets and showerheads. Most of the 10 requirements are very affordable, and can even get you rebates from various utility companies like EBMUD and PG&E. Even better, the cost of your expenditures are capped so that you don't go into bankruptcy making your home energy efficient.

In fact, most these requirements are good ideas to save the earth and will also save you some money due to their cost-efficiency. So, whether you are ready to sell your house or not, get those upgrades done and call an inspector to come certify your home as RECO compliant.

There are many ins and outs to the RECO guidelines, but these are the basics. If you would like more information or would like to discuss how to get this work done, let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

PS...Here is a fun fact about the City of Berkeley. The nickname for their website is CobWeb.

The Coolest House on TV

Friends and colleagues know that I love reality shows, and I'm currently very into watching Big Brother. Not only do I love the drama, but, as a real estate agent, I love this house! Hmmm, I wonder what it would list for?






The house has an Alice in Wonderland theme that is very fun. There are small doors to fall through, oversized beds and furniture, and teacups and chessboards galore. It would be very cool if they opened the house up for fans to wander through once the season is over. Hmm, maybe I can hire CBS to do my staging sometime...



As for the drama, we're rooting for Daniele all the way. She is a very smart player, yet doesn't seem deceitful in the least. While her dad is very difficult to tolerate, both for her and the audience, we laughed our heads off when Eric was mimicking him the other night. Eric can be quite annoying at times, but we love watching him pull off the goals that the viewers give him as "America's Player", like his stunt with Evil Dick. This competition is going to come down to those three players, I believe, so I won't even waste keystrokes on the others.

Normally I offer my real estate advice and services at this point in the post, but also let me know if you want to dish about Big Brother!

PS. All photos courtesy of CBS.com

New to Market--East Lake Lofts in Oakland

If you are in the market for a very cool loft in Oakland, well today is your lucky day. Our brokerage is just now bringing to market the East Lake Lofts near Lake Merritt in Oakland. If you are familiar with the popular Mutual Creamery lofts, these are similar in style and are just around the corner.




These impressive brick and timber lofts feature large open floorplans and double-height ceilings, all with that cool industrial live/work loft look and feel. There is a wide variety of floorplans. The "West Wing" is a one-story brick-exterior building with soaring, arched rooflines. The second warehouse-type structure is an impressive three-story brick building with extensive views and walls of windows.


The East Lake Lofts are located in one of the hottest “Up-and-Coming” areas of Oakland, near downtown, Jack London Square, Lake Merritt and Chinatown. Lake Merritt offers running and cycling trails, picnic spots, a children’s park, the historic Grand Lake Theater and the Grand/Lakeshore shopping/dining district. Also nearby is the China Hill district (including the famous Parkway theater for movies, pizza and beer) and Jack London Square (soon to feature the upcoming California Harvest Hall).



There is a grand opening open house this Sunday, September 9 from 1pm to 5pm. The address is 1018 4th Avenue (@ East 10th St). If you would like more information, or would like to schedule a tour, please let me know. I can be reached at 510-547-5970 or MSmartt@jps.net.

Thank You! Thank You Very Much!

Every once in a while you need to toot your own horn, and today is that day. I am very fortunate to have so many great clients, many of whom have become valuable friends. And, several have have passed along their testimonials about working with me, to share with potential clients in the future. So, with a modest blush, I share them with you.


"As a single, first-time home buyer, it was important for me to work with a professional who is knowledgeable, responsive and trustworthy. Mary's experience, warmth and her willingness to go above and beyond in every area exceeded all my expectations."
-- Karin S., Oakland

"As a first-time homebuyer, Mary helped me through the entire homebuying process with patience and perseverance. She knows and understands the Oakland loft market, and most importantly, she knows and understands people. Mary provides excellent customer service and repeat customers become long-time friends."
-- Karna W., Oakland

"Mary Smartt was a one-in-a-million find. She really listened to us and helped us find exactly what we wanted. (We were exploring all of the East Bay and Mary understood the whole area). During the sale she knew just the right people for inspections and testing, people who gave us invaluable advice. Finally, she negotiated for us and we got the house. She has just the right mixture of professionalism and care. We recommend her to all our friends."
--Chuck & Roshni, Alameda


If you are entering the real estate market and would like to receive the same level of customer service, please contact me. I am always happy to help. I can be reached at 510-547-5970 x57 or Msmartt@jps.net.

If You Build It, They Will Come (for Permits!)

Have you been following the story of the Danville man who built a baseball practice field for his son's little league team in his back yard? Sounds sweet doesn't it? But it is also a good reminder to get those permits when you are making any additions or alterations to your home--from upgrading a bathroom to building a miniature AT&T Park in the back forty.

Here's the basic information. The Danville man spent about $300,000 to transform 18,000 square feet of his lot into a baseball field and practice location with batting cages and more. However, he did not get the proper permits to build something so large, especially the 14-foot high fences that obstruct his neighbors' views of Mt. Diablo and the hills. Some neighbors complain that the structure looks like a prison.

The City of Danville has denied the man's belated permit requests and ordered him to deconstruct the unsightly addition. He is, however, trying to make peace by lowering the fences to below 6 feet high. But he is unlikely to get approval.

You can read the coverage of the whole story in the San Francisco Chronicle.

Some people think that it is easier to ask for forgiveness than permission. Our cities and communities have zoning laws and permit processes for a reason--to preserve the sanctity and value of the community as a whole. While this man has a right to make improvements to his property (within reason), his neighbors also have the right to their views and quiet enjoyment of their own property. How would this man feel if his neighbor built a huge windmill in his backyard because he just love windmills? By the way he plays the game, that would have to be acceptable as well.

Need more reminders to run your improvement plans by the city for permits? This man in Rolling Hills Estates in Southern California is getting one day in prison for every foot of un-approved fence he put up on his property's border. The fence is 180 feet long. That is six months in jail, because the new fence poses a safety risk on a popular horse trail.

So, even if you are just making minor improvements, it is better to be safe than sorry. If you have questions about permits and city ordinances, please let me know. I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Labor Day Weekend Events

So, what are you going to do this weekend? Remember, the Bay Bridge will be closed, so keep alternate transportation in mind. As I wrote yesterday, you can get all the 411 right here. Here are some ways to have fun and avoid the freeways.



If you are in the East Bay, I highly recommend the annual Art & Soul Festival in Downtown Oakland. Six stages of music (including Lucinda Williams and Big Bad Voodoo Daddy), rides and activities for kids, an artisan marketplace, food and wine tasting, and more. This is a great event each year!

Or take the Ferry to the Sausalito Art Ferry. Now in its 55th year (!!!), the best artists and artisans from the west coast show of their latest work in one very beautiful location. If you've never been, you must check it out!




Or take BART to the Big City for two very different events. Celebrate the 40th anniversary of the Summer of Love with a reunion concert in Golden Gate Park. And, the gay community celebrates bear culture at the huge new event--the 4th Annual Hairrison Street Fair. (Woof!).

No matter what you choose to do...have a great time with your friends and family. Have a great weekend!

Bay Area Bridges--Good News / Bad News

Well, there are a lot of developments with Bay Area bridges, and I just had to weigh in. I've written about the bridges (and public transportation) before, and here is an update.

So the new Benicia Bridge opened this past weekend, and it is a wonderful thing! In addition to having an expanded capacity, the bridge features "open road tolling" allowing FasTrak users to glide on by at the speed limit with no slowing down. There are no toll booths to slalom through. Previously, when I took this bridge during the evening commute, there would be a traffic jam waiting to get across the bridge that could hold you up 15-20 minutes. We literally flew across the bridge yesterday at the height of rush hour. Heaven!

As the traffic reporter on the radio said as crossed the bridge, "Property values just went up in Benicia thanks to the new bridge!"

And, unless you've been living under a rock the last month, you probably already know that the Bay Bridge will be closed all of this Labor Day Weekend for retrofitting. Highway Patrol will start to close off access to the bridge by 8pm in both directions. It will not re-open until Tuesday at 5am.

So, how will you get around? BART will be running around the clock to its main stations, and the ferries will be expanding their services. Or, you can stay off the freeways, relax, and enjoy your community. Last year, when the Bay Bridge was closed in just one direction over Labor Day Weekend, there was a significant drop in traffic across the system and other bridges.

For more information on the Bay Bridge closure and other transportation options, please visit the Bay Bridge website.

Market Update

The media continues to spread a message of gloom and doom about the real estate market. While the reports should be listened to and deeply considered, always keep your individual situation in mind if you are currently active in the real estate market.

CNN reports that the "glut of homes hits 16-year high." Keep in mind that this statistic is on a nationwide basis. That information is helpful for a large snapshot of the market and for a look at macroeconomic trends, but you are presumably buying or selling a home in the Bay Area. Well, today the San Francisco Chronicle calls the market in East Oakland a "dead zone," and finds the inventory of homes for sale to be rising, and homes in escrow to be flatlining. But even that requires a closer look. That same article mentions that there have been 65 homes sales in Oakland over $1 million since May.

So, it is same old story that the rich are getting richer and the poor can't buy homes. And, the market is undergoing a correction period more than a freefall or collapse.

What this means in common sense terms is that if you have money, you should have no problem continuing to buy real estate. Mortgage lenders are tightening up their regulations. If you are a buyer, you are going to need 20% down and a great FICO score in almost every situation (and you should consider great tools like the Monthly Mortgage Assistance Programs). If you are a seller, you might need a little patience and a lot of courage to price your home lower than you expected.

It is a complicated market there. It always has been, and it always will! If you would like to discuss the East Bay real estate in more depth, let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

"All the world's a stage..."

You might be wondering if you need to stage your house to help sell it. I can tell you right now that you do indeed need to stage your house. You might be thinking, "Hey, she hasn't even seen my lovely home. What does she know?" I know that you need to stage it. Let me tell you why.

You are trying to sell your house, not your home.

While I am sure your home is lovely, but it is your home and it is full of your personal taste, furniture, and memories. To sell your house, you need to present it as a showplace, cleared of its past and ready for the future--ready for new ideas and new adventures.

Buyers want to see a house that is light, airy and open--a blank slate for them to envision their futures. They want to see new furniture, new designs, and they want to see as much of the floorplan as possible so that they can begin to imagine their own furniture and ideas in the space. Buyers want to see your house as their future home.

Professional stagers can help you with everything from de-cluttering and re-organizing to providing new paint and new designs to maximize your house for the market. Take a look at the following before and after pictures of the dining room of a house I recently sold so that you have a better idea of what stagers can do for you.

Before:
















After:

Which would you prefer? Look at the difference in space and color and think about which one you would want to buy.

This staging was done by Scout, and there are many terrific staging companies in the East Bay, such as Jackie Brown. If you would like to further discuss the power of staging or need a referral, please let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Have a great weekend!

6 Degrees of Separation

Writing about Bryan's HOA banking services yesterday reminded me of the power of referrals and our networks of friends, families, and colleagues. What a great way to live and work!

I met Bryan after my son referred him to me. He had gone to high school with Bryan's sister and knew of Bryan's home search in the East Bay. After Bryan was in his new home, I referred him to Pam, another client of mine who does landscaping. Coincidentally, Pam's son used to work for me. So many of my personal and professional relationships have fascinating connections like this and makes life a lot more interesting.

I also just returned from an inspiring professional retreat produced by Buffini & Company that focuses on the power of referrals. Who would you trust more....a plumber that your good friend or sibling recommends, or one you find on the internet or phone book?

After more than dozen years of working in real estate in the East Bay, I am so pleased to look at the talented group of people I know and work with. If you ever need a referral f0r some help in the East Bay, let me know. And, I just might ask you next time I need a referral (like it would be great to know some wonderful caterers or mechanics!). Check out my ever-growing network of referrals at Mary's List or just drop me a line. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

(And, oh by the way, if your friends and family ever need a realtor, I'm never too busy for your referrals!)

A New Way to HOA?

One thing to always keep in mind when planning to purchase a condominium or into a similar “common-interest community,” is the HOA, or Homeowner’s Association. You will need to think about how involved you will be in the HOA and how much you can afford to spend on the monthly fees and possible special assessments.

The HOA is a community comprised of all the individual homeowners and is represented by an elected board consisting of homeowners who oversee the management and development of the entire building or organization. They do everything from enforcing the rules of the building to organizing maintenance and upkeep to handling problems that might arise. If you are living in a smaller development, say two to eight units, you will more likely be involved with the HOA versus if you live in a larger building, of say 100 units or more.

Monthly HOA fees can vary wildly, so you need to figure how much you can afford. They might cover general maintenance to utilities to the salary for a concierge. The arrangement is different for every association, so make sure to find out what it covers. You might also get hit with a “special assessment” should a significant problem arise. Perhaps the roof develops major leaks and a new roof is needed. Or perhaps a driveway or garage requires re-paving. Special assessments can surprise you, they can cost a lot, and you are responsible for your share.

But, keep in mind that the HOA can be your friend. For instance, the HOAs in several Emeryville condo buildings have been battling their developer for poor construction that led to mold and other problems. Those HOAs have led the legal battle on behalf of the residents and have made great strides so that the individual homeowners could continue their day-to-day lives as smoothly as possible.

But, could there be a better way to HOA? Bryan Wong is the VP of Community Association Products and Services for Popular Association Banking, and he specializes in helping HOAs run effectively and smoothly. For instance, he can arrange loans and banking services so that HOAs can better manage their money and create more affordable payment plans for the dreaded special assessments. Plus, they can help with litigation should that arise, or wisely invest the HOAs holdings to help prepare them for the future.

If you would like more information about HOA management, I invite you to get in touch with Bryan at 925-730-2183 or BWong@bpop.com. And, of course, I am always available for any of your needs at 510-547-5970 x57 or MSmartt@jps.net.

Put Me In, Coach!

Friday is here, and it is nice to write about some non-real-estate topics sometimes as we head into the weekend. Let's talk about coaching. Not leading the team to win the World Series or Super Bowl, but life and career coaching. Coaching has made a tremendous difference in my career and life, and I highly encourage it.

A coach is someone you can meet with to help you establish a strategy for your work and your life. It might sound like therapy, but it is not. A coach helps you identify goals that you want to achieve and then create a plan to tackle them. My coach helps me to better understand my goals, to better articulate them, and to refine them so that my goals are achievable. Coaches challenge you with new ideas, and they provide a healthy dose of accountability. For most people, it is just too easy to set goals, only to forget about them later. A coach stays on you until you achieve success.

If you are new to this concept, you might be thinking, "Oh great, something else to do!" But, it can be as simple as a phone call or a coffee meeting every 2-3 weeks for just 20 minutes. Plus, it really helps you focus your time management so that you are working smarter, not harder. You'll barely even notice the time commitment, but you'll definitely notice the positive results.

I get all my coaching through Buffini & Company, a real estate training and coaching company. In fact, I'm off to our annual Mastermind training retreat in San Diego for the next few days. I really look forward to it every year. If you have questions about coaching or would like help finding the right coach for you here in the East Bay, let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Have a great weekend!

Real Estate 101

So, What is the Difference Between Real Estate Agents and Realtors?



Real estate professionals reading this blog might be rolling their eyes about covering such a basic topic, but I still get asked all the time what is the difference between a real estate agent and a Realtor. Most people use the terms interchangably, like calling a tissue a Kleenex or a Canon copier a Xerox.


All Realtors are agents, but not all agents are Realtors. An agent is merely someone who has passed the state licensing requirements to buy and sell real estate. The main difference between a Realtor and an agent is that Realtors (like myself!) follow a strict code of ethics and belong to a Realtor board. Perhaps a good comparison is the difference between a licensed doctor and being a board-certified doctor.


There are 17 rules in the Realtor code of ethics, including such items as:

• Put the buyers' and sellers' interests ahead of their own


• Refrain from exaggeration and misrepresentation, and investigate and disclose problems


• Cooperate with other Realtors, agents and brokers


• Make sure all written documents and contracts are clear and easy to read and understand


• And many more. For a complete list of the code of ethics, click here.
  

In addition to a strict code of ethics, Realtors can help you assess your financial readiness, assist with negotiations, provide market analysis, and more. To see the National Association of Realtors' complete guide and resources, please visit Realtor.com.

With such expensive transactions, it is best to work with the highest level of professionalism possible, whether the market is thriving or rocky. Trust a Realtor to help you out. And, yes, I am a Realtor. If you need help buying or selling a home, I would be happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

(PS. Go Danny!)

Trulia & Zillow & You

VERSUS

The real estate consumer is becoming more and more web savvy (otherwise you wouldn't be reading a real estate blog, now would you?), and two of the more popular sites are Trulia.com and Zillow.com. What are they and how can they be of use to you? Or, are they of no use at all?

Both sites collect and analyze real estate information in many different urban metropolitan centers, including the Bay Area. Both sites offer current listings, data on recent sales, and valuations on properties. Trulia tends to have more of an emphasis on current listings and includes a nice interactive Q&A function called "Trulia Voices." And, Zillow seems to have the edge in providing valuation information.

I recently read that 85% of real estate consumer begin their journey with web searches. Are these two sites the best place to start? I think they are a fine place to start in order to get a snapshot of the market, but I highly encourage you to work with a realtor for your transaction.

Both sites have an incomplete inventory of homes for sale, mostly including just those from the chain brokerages and those actively submitted by agents. You are better off using a more complete site like Realtor.com. And, working with a realtor will help you find the gems in the neighborhood or to best market your home.

As for valuations, the sites use algorithms and applications that lack human eye and intellect. The comparables they include are not very realistic, sometimes comparing small 2 bedroom condos to large 2 bedroom single family homes in the same neighborhood. The value of a home is truly determined by the buyer and the seller negotiating in the free market. If the buyer makes an offer and the seller accepts it, then that is the value. If a home is listed too high, especially in this changing market, no one will buy it. And that means the list price is not that house's value.

So, Trulia and Zillow are fine for market pictures and to do basic research--even I look at them sometimes. But for real guidance in the real estate world, rely on a realtor with expertise in your neighborhood. If you need expertise and guidance in Berkeley, Oakland or other East Bay neighborhoods, let me know. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

Real Estate 101

Dual Agency--Yea or Nay?

Whether you are a home buyer or seller, it is important for you to understand the legal nature of the agency relationship you have with your agent. We must act in your best interest while representing you in a real estate transaction. This gets complicated if you find yourself in a "dual agency" situation.

What is dual agency? Basically, it means that a real estate agent is representing both the buyer and seller in a real estate transaction, which is legal in California (but not in all states). A real estate agent who is working as a dual agent could easily find herself in a conflict of interest by trying to represent the best interests of both parties. On the other hand, if the agent has a sound understanding of everyone's goals and works in a highly ethical manner, there shouldn't be a problem.

So, what should you do if you find yourself in a dual agency transaction? First, insist on clear communication at all times. Second, be explicit with the agent about your needs in the transaction. Third, check with the agent's broker if you have any questions or concerns.

If all the involved parties work hard toward a smooth close of escrow (like they always should!), dual agency doesn't need to be a problem. But, it is your right and responsibility to ask questions and make sure it is the right representation for you. It can be a complicated situation, so if you have questions or want more information about dual agency, please let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

East Bay Fun

A Day Trip to Port Costa

Okay, enough talk about the mortgage market and real estate. Time to have a little fun here in the East Bay. And what is a better than a day trip here in our own backyard. Ever been to Port Costa? Ever HEARD of Port Costa? Let's go!

Port Costa is a small outpost in the north end of the East Bay, just before you reach the Carquinez Bridge, and then east towards Martinez. And, I mean small. The population at the last census was 232! The town was founded in 1879 as a railroad ferry landing on the intercontinental railroad. It soon became the busiest wheat-shipping port in the country. Once the railroad bridge was built in Martinez in the thirties, the once thriving and colorful community started to slow down. Now, it is a fascinating step back into the past.

Vintage buildings line the old commercial district, and is home to two restaurants and a great old hotel. And it is a great site for antique spotting and shopping. The more popular events there are the annual car show, craft show, and talent show. The Port Costa Conservation Society is currently working with a team of volunteers to refurbish the old Port Costa School building.

As for dining, visit Port Costa and have a great meal at The Bull Valley Inn or The Warehouse. Both are old time architectural marvels. And the food is great! The Bull Valley Inn has an impressive wine list....and make sure to try the prawns.

Have a fun weekend!

The Mortgage Mess

What Does It Mean To You?

I am sure most people are aware of the major changes in the mortgage markets this past week. Some are calling it a crash, and others are calling it a correction after a few years of out-of-control loan practices. But what does this mean to regular consumer or the buyer on the market right now? After checking in with several mortgage brokers and my colleagues, this is what I have to recommend.

First, the rules are changing fast. Loan guidelines are getting tighter. Much tighter. If you are pre-approved for a loan, don't assume that pre-approval is still valid. Check in with your mortgage officer to re-run the numbers. Chances are that your access to money has been restricted.

Second, if you are getting ready to hit the market, know that you better have very good credit and some serious money ready for a down payment. It looks like the days of 100% financing are over...at least for know. Some of the mortgage brokers that people are still calling them saying that they know that the market is changing, but how do they get 100% financing now. Well, the answer is: you don't get 100% financing.

Third, if you are making an offer, make sure to get a loan contingency. These have been out of favor in the East Bay real estate market for years, but you will need this now to cover yourself.

That said, this can be a very strong buyer's market right now. There is a lot of inventory and also a lot of price reductions. Sellers are getting a little worried. That means the power is shifting to the buyer when it comes to offers and negotiations. If you are ready to hit the market, let me know. I can be reached at 510-547-5970 x57 or MSmartt@jps.net