California State drought situation.

California is in a deep drought, as evidenced on this map of the state of drought in the US, from the NIDIS web site (National Integrated Drought Information System).  It is not going to go away.  Knowing where we waste water is useful:

Thanks for reading,
Francis

Silicon Valley real estate

Trends: Local prices and graphs.
The total yearly stats, locally by City, for 2014.

Note: our next free E-Waste collection and shredding event will be on: Sat. 4/11/15, at our Coldwell Banker office at 161 S. San Antonio Rd, Los Altos. Times: E-Waste 9am to 3 pm. Shredding: 10 am to 2 pm (or until our truck is full).

Owning a home - the Consumer Financial Protection Bureau.

Thinking about owning a home one of these days, even if it is not going to be very soon?

A good way to start is of course to talk to a Realtor® (not just a real estate agent).  A Realtor® is a member of the National Association of Realtors®; he adheres to a very strict code of ethics. Not all agents are Realtors®!

Some of us however like to do some research first, investigate and read about a subject, and be comfortable before making a move. 

A very good place to start, which is not very well known, is the Consumer Financial Protection Bureau which was created right after the 2008 financial meltdown.  Their “Owning a Home” page is really comprehensive, full of essential information about the whole process.  It touches on the financial aspect of the journey to owning a home (loan options, rates etc…) to the actual procedures of closing such a transaction.  By the way, these procedures include new documents and disclosures  that will be taking effect on August 1 of 2015.  The old closing documents and forms will be shelved.

In the financial part, you will see that no one can quote you a rate right off the bat, without knowing a good deal about your personal situation.  So, when you read about that fabulous rate in the paper or in an ad, you’d better be careful, - it is probably for the cleanest, richest, ideal top-credit-rating person   My advice is rather to choose a loan agent whom you know will look out for the best loan for you when the time comes (not necessarily the cheapest).  You will also see that depending on the type of loan, you can borrow more or less…
that walked on the surface of this earth.

As far as the details on the procedures, paperwork, customs and uses, and the most efficient ways to go about doing your search and purchase, I’d go back to your Realtor® of choice - the one whom you know will look out for your best interest.

Thanks for reading!

 

Francis
 

Silicon Valley real estate

Trends: Local prices and graphs.
The total yearly stats, locally by City, for 2014.

Note: our next free E-Waste collection and shredding event will be on: Sat. 4/11/15, at our Coldwell Banker office at 161 S. San Antonio Rd, Los Altos. Times: E-Waste 9am to 3 pm. Shredding: 10 am to 2 pm (or until our truck is full).

Properties off MLS...

Properties off MLS…. controversial.

 A lot has been said and written on the subject of properties selling “off MLS”, meaning they have not been on the Realtors’ Multiple Listing Service and were sold before making it to that database, common to all Realtors.

 Coming from a country where a common database of properties for sale is nearly non-existent, I can definitely vouch for the huge benefits that such a common database offers, both to buyers and to sellers. We could go on and on describing those benefits, but let’s just say that it pretty much ensures that a property for sale, by virtue of being exposed to all the agents around, will sell for its real, highest market value (low, high, but the most accurate result of supply and demand).  Also, a buyer will find all that is available for sale in one place, which means more choice and less wasted time going from one provider of information to another provider of information.

 So, why sell a property “off MLS”?  There are some unique situations where the sellers do not want the whole public to know that they are selling, and that is understandable.  There will always be special circumstances (i.e. very high price range, specific sellers’ needs or preferences, etc..).  But these exceptions aside, I see mostly downsides to not offering a property for sale through the MLS:

-          Less information for buyers and sellers about current sales activity, and "comparables". How do you price a property if you don’t know how, and how much similar homes sold for? This information is easily accessible (and reliable!) in the MLS.

-          A situation where both the seller and the buyer are “gambling”; one gambles that he/she bought for a lower price than if the house had been offered to all potential buyers, the other one gambles that he/she sold for the best, highest price.

-          A lack of confidence by the clients-buyers that they are being treated fairly: after looking for a home for several months and missing out on several offers, a buyer is not happy to learn that “that” house was for sale, but (s)he did not know about it,

-          The creation of smaller entities, or “channels”, where such properties are “known” or “available” to select agents and their clients; again, this is going back to a system without a reliable common database for all, and in my opinion does not serve the public well. Indeed, even those agents may be unaware of some other offerings in a different channel, and their clients will miss out on those opportunities.

 The practice of selling real estate through an MLS is not perfect, but it is the result of an evolution, and it is immensely practical and fair, and someone coming from a system where it does not exist sees it right away.  As an agent, I keep close tabs on all channels showing properties available for sale, even “off MLS”.  But using “alternative channels” excessively undermines the MLS, and I am afraid this will make it more difficult and unpredictable for the public to find or sell real estate – and a lot less efficient.

Let me know what you think!
Thanks for reading,

Francis

Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates