Tag: realtors

Existing-home sales near 5-year high – great article I wanted to share…

Hello Blog Readers!

Sabrina here, came across this great article pulling statistics from the National Association of Realtors.  Please enjoy this positive report on our real estate market.

Existing-home sales near 5-year high

NAR’s year-end stats show housing markets flirting with pre-bust growth

BY INMAN NEWS, TUESDAY, JANUARY 22, 2013.

Existing-home sales, prices and inventory saw dramatic changes in 2012 reminiscent of the housing boom, statistics released today by the National Association of Realtors show.

At 4.65 million units, 2012 existing-home sales were up 9.2 percent from 2011, according to NAR’s preliminary totals for the year. That would be the highest volume since 2007, when 5.03 million were sold.

Bolstered by low inventories, the national median existing-home price was up 11.5 percent from a year ago in December, to $180,800. December saw the 10th consecutive month of year-over-year price gains, a trend not seen since May 2006.

For 2012 as a whole, the national median existing-home price was up 6.3 percent, to $176,600, the largest annual price gain since prices surged by 12.4 percent in 2005.

At 1.82 million units at the end of December, existing-home inventory now represents a 4.4-month supply, the lowest level since May 2005, near the peak of the housing boom.

“Likely job creation and household formation will likely fuel (market) growth,” said NAR Chief Economist Lawrence Yun in a statement. “Both sales and prices will again be higher in 2013.”

To finish reading this article and few their charts and graphs please visit: http://www.inman.com/news/2013/01/22/existing-home-sales-near-5-year-high

Here is another great article about home sales: http://newsgeni.us/?em=info@thecatonteam.com&p=106674

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

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Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Can I Buy Your House Please? Great article from the Wall Street Journal

When my friend and lender Vanessa showed me this article – I was so excited.  I preach to each client trying to buy a home in our beautiful San Francisco Bay Area to write a letter to the seller – just in case.  It might not always work – but when it does – it’s amazing.

To read my client and friend –  Tatjana and Michael’s personal experience – where the note made all the difference – please read:

http://wp.me/p1GGbd-7Z

To read the Wall Street Journal article please visit:

http://online.wsj.com/article/SB10001424127887323482504578227703128967098.html

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at: 

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

2013 – New Real Estate Laws for California

Hello Blog Readers!  Happy New Year.  2013 is going to be an awesome year in real estate for our gorgeous San Francisco Bay Area Peninsula.  Thought you would like to know what goes into effect this year in regards to California Real Estate Laws!

The “Pease Limitations” that reduced the value of itemized deductions, including the mortgage interest deduction, are permanently repealed for most taxpayers but will be reinstituted for high income filers.  This provision reduces a taxpayer’s itemized deductions by 3 percent of the amount of his or her adjusted gross income (AGI) that exceeds the threshold amount.  Under the new law, the Pease thresholds are $300,000 for married taxpayers filing jointly and $250,000 for single taxpayers (i.e., a married couple with an AGI of $400,000 would be $100,000 over the threshold; the couple’s deductions would be reduced by $3,000 which is 3% of $100,000).  No matter how high a taxpayer’s AGI, the Pease reduction cannot exceed 20 percent of the amount of itemized deductions otherwise allowable for the year.

The restoration of a tax deduction for mortgage-insurance premiums, including premiums paid to the Federal Housing Administration and private mortgage insurers.  This provision expired at the end of 2011 but has now been retroactively extended for all of 2012 as well as 2013.

10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

Capital gains rates will remain at 15 percent for those earning less than $400,000 (individual) and $450,000 (joint).   Gains above those income levels will be taxed at 20 percent.  Gains on the sale of principal residences will remain unchanged and continues to exclude the first $250,000 for single taxpayers and $500,000 taxpayers filing jointly.

I received this information for the California Association of Realtors

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

New Short-Sale Program Offers Relief for Underwater Homeowners…

Please enjoy this article I found interesting….

The Fannie-Freddie program allows short sales for owners who are current on loan payments but are encountering a hardship that could force them into default.

WASHINGTON — Though there are still some snares and drawbacks for participants, one of the federal government’s most important financial relief efforts for underwater homeowners started operating Nov. 1.

It’s a new short-sale program that targets the walking wounded among borrowers emerging from the housing downturn — owners who owe far more on their mortgages than their current home value but have stuck it out for years, resisted the temptation to strategically default and never fell seriously behind on their monthly payments.

Industry estimates put the number of underwater owners across the country at just under 11 million, or 22% of all homes with a mortgage. Of these, about 4.6 million have loans that are owned or securitized by Fannie Mae or Freddie Mac. Eighty percent of these Fannie-Freddie borrowers, in turn, are current on their mortgage payments and meet the baseline eligibility test for the new short-sale effort.

Here’s how the program works and where the potential snares are. Traditionally short sales, where the lender agrees to accept less than the full amount owed and the house is sold to a new purchaser at a discounted price, are associated with extended periods of delinquency by the original owner. The new Fannie-Freddie program — designed by the companies’ overseer, the Federal Housing Finance Agency — breaks with tradition by allowing short sales for owners who are current on their payments but are encountering a hardship that could force them into default.

Say you are deeply underwater on your mortgage and recently lost your job or had your work hours reduced. Under the new program, you can contact your mortgage servicer and ask to participate in a Fannie-Freddie short sale for non-delinquent borrowers. You’ll need to find a qualified buyer for the house, typically with the help of a real estate broker or agent knowledgeable about short sales who will list the property and obtain an offer and communicate the details and documentation to the servicer. If the proposed short-sale package is acceptable, the deal would then proceed to closing weeks — or months — later.

Eligible hardships under the new program run the gamut: job loss or reduction in income; divorce or separation; death of a borrower or another wage earner who helps pay the mortgage; serious illness or disability; employment transfer of 50 miles or greater; natural or man-made disaster; a sudden increase in housing expenses beyond the borrower’s control; a business failure; and a you-name-it category called “other,” meaning a serious financial issue that isn’t one of the above.

Borrowers who take part in the new program can expect to rid themselves of the money-devouring albatross their mortgage has become — without going through the nightmares of foreclosure or bankruptcy — and to get a chance to start anew, better equipped to deal with the financial hardship that caused them to sell their house in the first place.

What about the snares in the program? There are several that participants need to consider.

•Credit score impact. Though officials at the Federal Housing Finance Agency are working on possible solutions with the credit industry, at the moment it appears that borrowers who use the new program may be hit with significant penalties on their FICO credit scores — 150 points or more. This is because under current credit industry practices, short sales are lumped in with foreclosures. According to Laura Arce, a senior policy analyst at the agency, the government is in discussions with the credit industry to institute “a special comment code” for servicers who report the new Fannie-Freddie short sales to the national credit bureaus that would treat participants more fairly on FICO scores.

•Promissory notes and other “contributions.” In the majority of states where lenders can pursue deficiencies, Fannie and Freddie expect borrowers who have assets to either make upfront cash contributions covering some of the loan balance owed or sign a promissory note. This would be in exchange for an official waiver of the debt for credit reporting purposes, potentially producing a more favorable credit score for the sellers.

•Second lien hurdles. The program sets a $6,000 limit on what second lien holders — banks that have extended equity lines of credit or second mortgages on underwater properties — can collect out of the new short sales. Some banks, however, don’t consider this a sufficient amount and may threaten to torpedo sales if they can’t somehow extract more.

By Kenneth R. Harney Distributed by Washington Post Writers Group.

I read this article at: http://articles.latimes.com/print/2012/nov/11/business/la-fi-harney-20121111

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

A Cinderella Story – Fredric and Heather

When it came time to sell their first home Fredric and Heather called the Realtor who helped them their first go around – Susan Caton. By then, Susan and I (Sabrina) had partnered up and became The Caton Team.  It was an exciting meeting, sitting around the dinning room table planing for the sale of their home and discussing the hopes, dreams and reality of their next home.
In the competitive Bay Area real estate market a buyer needs to be ready to make a fantastic offer the moment a home pops on the market.  If a buyer has to sell their current home – writing an offer contingent on the sale of a home is not as attractive to the seller as a non-contingent offer.  Therefore, we agreed that the best course of action was to sell their current home to be prepared to pounce when their next home came on the market.
This can be a scary moment – where will the family live if we don’t find the next home.  Nonetheless, the hunt for their next home began way before the for sale sign showed up in their front yard.
So Heather and Fredric did a fantastic job getting their home ready for sale.  Before our first open house The Caton Team had wind of interested parties.  Within a week their home was in contract.  Oh my!
So the serious house hunting hits.  We’re out day and night checking out everything on the market, new and old…and we start writing offers.  Good offers, solid offers.  But we keep getting out bid, sometimes by all cash, sometimes just larger down payments or out of the the ballpark offers.  Regardless, the sweat starts beading.  Now we’re talking short term rentals as the close of escrow on their current home slowly approaches….and we are very thankful for the 30-days of rent back we negotiated to give us a little more time.  That was extremely helpful, but not enough.  So, a short term rental was located.  More offers.  Out bid.
Suddenly there is buzz around a certain Silicon Valley IPO.  The weeks leading up caused a mini boom on the peninsula.  Offer dates, multiple offers, no contingencies, all cash – you name it – things were a bit nuts.  Then the dust settled, and as a boom of new listings flooded the market a week old listing was suddenly overlooked.  We wrote an offer.  Out of the blue, another offer comes in.  This house was awesome.  We couldn’t let it get away.  Proud to say our reputation preceded us and the Selling Agents knew we’d get the job done – when it came down the the nitty gritty, we helped our friends and clients prepare a terrific offer package and in the end their offer was accepted.
The phone call to your clients when you get to share the good news that they got the home of their dreams – well, it’s one of the best phone calls around.
Thank you Fredric and Heather for trusting The Caton Team with all your real estate needs.  Here’s to many happy years in your new home.
Got Questions? – The Caton Team is here to help.
Email Sabrina & Susan at:  Info@TheCatonTeam.com
Visit our Website at:   http://thecatonteam.com/
Please enjoy my personal journey through homeownership at:
Thanks for reading – Sabrina

5 Smart Moves for First Time Homebuyers

I came across this article and felt it was very timely – I also added my 2 cents in italics.  Enjoy – Sabrina
As a first-time real estate buyer, you probably have no idea how the overall purchasing process works or how to make sure you’re making a smart decision to purchase. And you’ll probably be very surprised to learn how much work it really is just to buy a home. To get you started in the right direction, and this is just a start, here are a few tips that you should consider.
Get lender-qualified and find a good real estate agent
To start off, you should get qualified by a lender to see what price range you can realistically afford and interview some real estate agents to find the right person to represent you in your transaction.
Once you’re qualified and have your price range estimate in hand, you’ll be able to spend your time shopping in neighborhoods that you can afford. But remember: Just because the bank says you can qualify for a certain amount, that doesn’t mean you should spend that amount. Make sure you can actually afford the monthly payment, along with all your other bills.
For real estate sales professionals, you should get referrals for a full-time agent or broker who sells at least five or more properties per year and is well-educated on the process and location where you plan to live. You should call references, check that the agent’s state sales license is up to date and interview them to make sure you’ll be comfortable working with them.
My 2 cents – Buyers should work with a lender who picks up the phone and answers their e-mails and questions in a timely manner.  Unless a buyer is using all cash, the home loan is VERY  key to purchasing.  A buyer will find that during the hunt and offer process – they will need an updated lender approval letter about every 30 days and your Realtor will need questions answered as your home journey progresses.  If the lender doesn’t respond, it can throw the home transaction off.
Make sure you plan to be a long-term owner
Once you know your price range and have looked at some properties, it’s time to make sure that you believe you can find a property that you will own for a minimum of five years. If your price range doesn’t match where you want to live, you’d be better off staying a renter and saving some additional money until you can afford where you want to live. This is because an owner really doesn’t earn any equity, on average, in a property for at least five years. That’s the generalbreak-even point, and you really need to shoot for longer than that as an ownership strategy. The truth is, long-term real estate ownership can be a great way to earn wealth, but short-term ownership usually will diminish your wealth.
My 2 cents – Due to our SF Peninsula location, The Caton Team advises buyers that they will mostly likely be in their new home for more than 5 years – closer to 7+ years before they see enough equity to sell.  Real Estate is definitely a long-term investment!  In regards to sitting back and saving though – it all depends on the real estate market where the buyer is purchasing and how fast homes are appreciating.  That’s why a buyer needs a full time agent to help them sort this out.  
On the SF Peninsula, we hit bottom on prices in 2009 – though not many people knew that.  Since then, due to low inventory, historically low interest rates and high demand; prices are moving up quickly with each sale.  Around here sometimes the market appreciates faster than buyers can save – and the last thing any buyer wants to find out – is that they waited themselves out of the home purchase market. 
Since no one can control the market and where prices are going.  If a buyer is serious about purchasing on the SF Peninsula and the home they want is not in their price range, The Caton Team suggests they go back to the table and re-evaluate their wants and needs list.  Determine if they can settle on something they didn’t necessarily want but fulfills their need.  And in time, they will earn equity, be able to sell their first home and buy a home more to their wants list than their needs list.  This might be the hardest part about purchasing on the Peninsula.  Often it pushes a buyer away from buying a home and more towards buying a condo since the price is more affordable and often larger and in better areas than similarly priced homes. 
Educate yourself
Buying property is probably the most complex, riskiest and expensive thing you will ever do. Do your homework: Talk to real estate owners, go to first-time buyer seminars, check out online material and read some books to learn what to avoid in the buying process. The more you educate yourself, the better the chances that when things go wrong — and they will go wrong — they will only be minor issues, not major headaches.
My 2 cents – In our experience the pro-active buyer is the most successful.  A Realtors knowledge and experience cannot be downloaded, though we try to explain and guide – there is so much to cover.  When a buyer steps in the real estate market it is far different than they expected.  Knowledge is power.  The Caton Team will never push a buyer to sign their name to a price or contract unless they feel it is the right thing to do.  And that feeling comes from educating themselves.  Asking questions, driving through areas, going to open houses and also sitting in our car to discuss homes as we tour.  It does take a lot of work to buy a home – and a buyer must be up for it if they want to succeed.  The Realtor cannot do this alone – a buyer must work closely with their Realtor and communicate!  Communication is so key to a successful working relationship.  And let your Realtor know who you would like to communicate.  Phone Email Text?  Just let us know.
Find a nice affordable property
The real gems in real estate are the nice, decent shape, moderately priced, boring houses, town homes and condominiums that are within your budget. Most buyers stretch to purchase the most expensive property they can afford. What if you lose your job? How about saving some of your money for retirement? You want your home to be an asset you can afford, not a liability that leaves you with no additional funds over the cost of homeownership. Also, skip the fixers, prize properties or anything that sounds too good to be true: Those always end up having issues, and owners realize, after the fact, that the deal they thought they were getting really was just too good to be true!
My 2 cents – This really hits home.  Often times buyers are so focused on getting a “house” they tend to overlook the repairs.  Figuring they can fix it themselves.  Sounds great in theory – until the repairs cost more than expected and now the monthly budget is tighter than expected.
When I purchased my first place, a one-bedroom condo, it only required some cosmetic updates.  We did most of the work ourselves, but in the end it still cost us about $20,000 and that was a condo – not a home.  Home repairs can be expensive.  And remember – it’s not an unexpected home repair – it is an expected home repair.  Because, like everything else, homes will deteriorate and require lifelong maintenance.  HOA dues don’t seem so crazy anymore once you compare what a home repairs might cost!
I’d rather see a first time buyer buy a condo that needs updating than a home that needs a roof, foundation repair and new windows. 
It’s hard for first time buyers to gauge and understand the cost of home repair and maintenance.  Ask your parents or a trusted friend who owns their home to get an idea of what maintenance and repairs can be like and how they are discovered.  Better yet start practicing your skills at painting etc or start getting quotes to better understand the cost.  We call this homework.
 
Take your time
Realistically it should take you six months or longer to buy a nice quality property that will add to your long-term wealth. Make sure you have a full understanding of what the marketplace has to offer in your price range and that you know what you’re doing.
Those are a few tips to get you started in the right direction. Real estate is buyer beware, so try to make sure you’re one of the buyers who is “aware” of how to make quality wealth-building real estate decisions. Down the road you’ll pat yourself on the back when things work out well.
My 2 cents – Be patient.  This is a journey not a race.  It will be frustrating.  At times a buyer will feel like this is just an uphill battle without any hope in sight.  Writing several offers and getting outbid will be stressful.  However, there is one thing we can say in our 25+ years of Real Estate experience.  If you want to buy a home and you are realistic, willing to adjust your wants and needs, taking the time to understand your financing options, your day to day expenses and doing your homework – you will get a home! 
Doris Day said it best – what will be will be.  Thanks for reading!
Got Questions? – The Caton Team is here to help.
Email Sabrina & Susan at:  Info@TheCatonTeam.com
Visit our Website at:   http://thecatonteam.com/
Please enjoy my personal journey through homeownership at:
Thanks for reading – Sabrina

A Cinderella Story – Michael and Tatjana… A Picture is Worth a Thousand Words

When Michael and Tatjana reached out to The Caton Team – we were very excited to be their Realtors for their first home purchase.  We got them preapproved with Melanie Flynn of First Priority Financial and hit the ground running.  They were so excited, started checking out properties and sooner than later, we began to write some offers.

With fingers crossed and prayers whispered we waited on pins and needles to hear back on their first offer… they didn’t get it.  The first time you lose a house – it’s the pits.  The second and third time it doesn’t get any easier.  Tatjana and Michael started to lose hope.  Who wouldn’t?

But The Caton Team wouldn’t let them lose out on their dream.  As full time Realtors, we’ve spent countless sleepless nights hoping and praying our client’s dreams come true.  We knew – you have to get back on the horse, try, try again….there are other fish in the sea.

And they did – but they had one request.  They no longer wanted to write a letter to the seller that included their adorable family photo.  In shock, I asked why.  They were adamant – ‘what’s the point?  The seller is looking for the most money and highest offer.’  I smiled.  We could hear the disappointment in their voice.  But we had faith.  We couldn’t change what we were doing.  The offer package The Caton Team prepares for each offer is thorough and it is successful.  Sometimes money talks.  But sometimes, it’s the other items in the offer package that get the recognition.

As we waited to hear back on their offer I was looking at the copy of the photo we sent of their family.  I’ve known Tatjana since the 6th grade and here she was, with her husband and two beautiful sons…  The phone rang, couldn’t get to it fast enough.  It was the seller’s agent.  I could hear the happiness in her hello.  They got the house.  Quickly she interjected – it wasn’t about being the highest price, they weren’t.  It was about the letter and the picture.  (It still brings tears to my eyes.)  Turns out the owner was deceased and had charged her best friend with handling her estate.  Her wish was for her home to be sold to a nice family – not an investor.  She had built that home from the ground up, raised her family there, and she wanted her best friend to pick the sweetest family for her home.  And boy they couldn’t have found a better family.

Sometimes it really isn’t just about the money.

Congratulations to Michael and Tatjana – to many happy years and memories in your new home!

 

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Popcorn Ceilings – No Night At The Movies…

Please enjoy my candid journey through homeownership at http://ajourneythroughhomeownership.wordpress.com where I share my personal stories of being a young homeowner.  My newest blog is about Pop Corn Ceilings… Enjoy!

Thanks for reading – Sabrina

San Mateo County Homebuyer Assistance Program

Music to my ears.  Just came across this program to help homebuyers living and working in San Mateo County.  Please visit their website for updates.

Homebuyer Loans

Downpayment assistance loans for first-time homebuyers
in San Mateo County

Together with Meriwest Mortgage, HEART has created a customized loan package that is not offered by any other lender. Our goal is simple: to help you buy a home with a 5% downpayment.

Working with Meriwest Mortgage, a wholly owned subsidiary of the not-for-profit Meriwest Credit Union, HEART has created an entirely new loan package that helps qualified moderate-income families earning not more than $150,000 and who have not owned a home in San Mateo County in the last 3 years and meet other qualifications, buy their first home in San Mateo County, or to move substantially closer to transit in the county. This program does not apply in Daly City.

* Guidelines current as of July 2012. Subject to change based on rapidly changing market conditions. Check back often for updates, or call John Souza at Meriwest Mortgage at (408) 849-7115.

How does the Opening Doors Program work?

Together with a Meriwest Mortgage first home mortgage loan, HEART of San Mateo County offers a below-market rate second loan up to $78,225 to help facilitate a home purchase with a minimum of 5% downpayment. This program does not apply in Daly City. You may purchase a home or condo anywhere else in San Mateo County.

Based on the maximum sales price of $521,250, with a conforming first mortgage amount limit of $417,000, the maximum 2nd mortgage loan is  up to $78,225. Borrowers can put more money down on a home purchase above the $521,250 limit, however, the first and second mortgages remain at the previously described limits.

The 2nd mortgage allows for an 80% loan to value ratio on the first mortgage. The purchaser is not required to buy private mortgage insurance (PMI) for this loan. This results in significant savings to the homeowner of thousands of dollars in annual mortgage insurance premiums.

The Meriwest Mortgage first loan products that will be available for this special program are:

a 30-year fixed rate

a 5/1 adjustable rate mortgage (ARM) 30-year full amortizing

and a 5/1 ARM adjustable 40-year loan fully amortizing.

In combination, these loans reduce the monthly payment to the homeowner. Note the maximum loan is subject to change depending on market conditions. The first mortgage may be up to 80% Loan to Value.

Who Qualifies?

In order to qualify for this loan, you must meet a few specific requirements. There aren’t many of them, but they are important, and you must be able to prove that you meet each and every one of them. Please review the list below and check those to which you can answer “yes.”
Guidelines current as of July 2012. Subject to change based on rapidly changing market conditions. Check back for updates, or call John Souza at Meriwest Mortgage at (408) 849-7115.

Do you and your family earn $150,000 or less each year?

Do all borrowers have good credit – FICO score 680 or higher?

Is the purchase price of the property you want to buy $521,250 or less?

Do you currently live or work in San Mateo County? If you live or work in Daly City, you may apply for this program, but you cannot purchase a home or condo in Daly City.

Is the home you are purchasing in San Mateo County? This program does not apply in Daly City.

Have you NOT owned a home during the past 36 months, OR, if you have, will you be selling your current home and buying one that is substantially closer to transit in San Mateo County?

Will the total household debt to income ratio be less than 45%?

Will you be able to make a down payment of 5% of the purchase price?

Will you be able to demonstrate continuous employment for 24 months prior to application?

Do you have 5% downpayment available?

If you answered yes to these questions, you may qualify for Opening Doors. To begin the application process and find out for certain if this program is right for you, click on the APPLY NOW button. You will be taken to the website of Meriwest Mortgage, a subsidiary of Meriwest Credit Union, and you will be asked to begin an application for a mortgage loan

Click Here to Apply

If you have problems accessing the site, have questions, or need further information, please call HEART at (650) 872-4444 ext. 4#, or email pstinson@heartofsmc.org.

FAQ

Q: What do I do if I have more questions?

A: You can download a full set of Frequently Asked Questions here

Q: What are the interest rates?

A:  Please call John Souza at Meriwest Mortgage, 408-849-7115 for today’s rates.

Q: How is the program funded?

A: HEART’s donations from local employers fund the program. HEART continues to raise funds to enable this program to grow and serve even more local employees. Please click on the Donate Now button to make a gift, or contact Paula Stinson at (650) 872-4444, ext. 4#, pstinson@heartofsmc.org Thank you!

I read this article at: http://www.heartofsmc.org/programs/homebuyer-assistance/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

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Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

Susan Caton – of The Caton Team Realtors – Interviewed by the Daily Journal – Article by Sally Schilling

Please enjoy this article below, my partner and mother-in-law, Susan Caton was interviewed by Sally Schilling of the Daily Journal regarding the local San Francisco Peninsula Real Estate market.

First-Time Home Buyers Beat Out By Cash

By Sally Schilling – Daily Journal Correspondent 9.17.12 5am

Low interest rates and low housing prices have first-time buyers feeling optimistic about purchasing a good home. But people who have saved up enough money for a sizable down payment are finding they are still not in the most favorable position in the housing market.

Cash buyers are often beating out first-time home buyers who are taking out loans.

“They’re being beat out, but not necessarily priced out,” said Anne Oliva, president of the San Mateo County Association of Realtors. Sometimes, cash buyers get preference over buyers with home loans, even if their cash bid is lower, she said.

Traditional home buyers with a 20 percent down payment are struggling, said Oliva, who is currently working with a couple for whom she has put in nine different offers. Her clients have enough for a 20 percent down payment, but sellers are thinking it is better to go with the cash buyer for the sure deal.

The challenge may be even greater for first-time buyers of units in complexes, such as condominiums or apartments. Investors are buying up units with cash and turning them into rentals, said Oliva.

First-time buyers with a 3.5 percent down payment on a condo, for example, may get pre-approved for the loans and have their offer accepted. But they could lose final approval of the loan once the lender sees that the complex has a high number of rentals.

“Every lender looks at the renter-to-owner ratio,” said Oliva, who ran a program for first-time home buyers in San Bruno. “If the renter-to-owner ratio is high, they will not lend.”

While she understands that buying and renting condos is a good move for investors, Oliva worries about how this trend will affect the number of homeowners.

“We could have a huge problem with increasing homeownership if this keeps happening,” she said.

Abundance of cash

“There’s a lot of cash out there,” said Susan Caton, a Realtor based in Redwood City. “It’s amazing, even over $1 million there’s a lot of cash.”

Caton worked with a client who was outbid several times on homes priced at more than $900,000. “They kept getting beat out, and beat out,” she said.

One home priced at more than $1 million in San Francisco had 25 offers on it. A client offered with 60 percent to 70 percent down and had excellent credit. They were beat out by an all-cash offer that was less than asking price.

The all-cash offer closed in nine days, whereas the client’s offer which would have closed in 30 days.

“In San Mateo County, it’s the same thing,” she said. “With 40 or 50 percent down or better, you are still beat out by cash offers.”

Caton agreed that the low housing inventory is a big part of the problem, along with the conditions that come with first-time home buyers with loans.

“Fifty percent down is a darn good offer and a good loan,” she said. “But the sellers or agents are saying ‘take the cash, it’s a sure thing,’ especially with no financing or property conditions.”

Many home buyers do get discouraged.

“It’s a hard battle,” said Caton. “It takes a lot of patience, but they can’t give up.”

But she sees a silver lining in the dark cloud.

“In each instance when a buyer is beat out a number of times, when they finally get a house they are so happy they got the one they got,” she said.

Strings attached

There are many reasons for sellers to prefer all-cash offers from prospectors over a down payment from a home buyer with a loan. Many strings are attached to a deal with a first-time home buyer; the sale may take longer to close, an appraisal is needed and sometimes sellers are required to do repairs. And on the other hand, a cash offer may have no conditions.

“If you’re up against cash offers, it’s very difficult,” said Diane Viviani, a longtime real estate agent in San Mateo County.

The cash-buyer trend is especially apparent in the $500,000 to $700,000 range, where inventory is low, said Viviani.

Recently, a home on Oneill Drive in San Mateo had 30 offers on it, she said. The listing price was $525,000 and it sold for $675,000, after being on the market for just eight days.

“I’ll tell a buyer to make the best offer you can,” she said.

For those taking out Federal Housing Administration loans, the down payment only needs to be 3 percent, said Viviani. But with such a low down payment, the lender’s liability is higher and the buyer seems less attractive.

“It’s doable,” said Viviani of FHA loans. “But when something comes at or below market [price], they’re seeing them go [to cash buyers].”

Fading trend

Joe Rodden, a longtime real estate broker based in Redwood City, has seen this trend. A home on 18th Avenue was recently sold to a cash buyer, despite the offer being 5 percent less than the other offers from people taking out loans, said Rodden.

“[The seller] felt more comfortable taking cash because it was a sure thing,” he said.

When asked what happens to the houses after they are bought with cash, Rodden said this is up to the buyer. Cash buyers could potentially close a deal with cash and then take out a loan, but the contract would still say all cash.

The cash trend has become less common in the past couple of months because prices have bumped up, said Rodden.

“Now cash buyers don’t see the same bargain,” he said.

I read this article at:

http://smdailyjournal.com/article_preview.php?id=1754902&title=First-time

Sabrina’s 2 cents…

Reading this article, it is clear – the local San Francisco Bay Area Real Estate market is highly competitive – so really nothing has changed.  We live in one of the greatest places on earth!

Though the focus of this article made it clear how tough it can be – The Caton Team has seen the light at the end of the tunnel.  After our clients experience writing multiple offers and being out bid – we reevaluate the situation and get back into the market.  I’m happy to say in the end, we find the right home for the right client.  Each experience is different though… thus our ‘Cinderella Story’ blog entires.  ENJOY!

A Cinderella Story… Lisa and All Those Offers…. at:

https://therealestatebeat.wordpress.com/2012/07/02/a-cinderella-story-lisa-and-all-those-offers/

A Cinderella Story… Jake  and Sophia…. at:

https://therealestatebeat.wordpress.com/2011/09/09/a-cinderella-story-part-2-jake-sophia/

A Cinderella Story…Nisi and Rip… at:

https://therealestatebeat.wordpress.com/2011/08/15/a-cinderella-story-part-1/

Got Questions? – The Caton Team is here to help.

Email Sabrina & Susan at:  Info@TheCatonTeam.com

Visit our Website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp us at: http://www.yelp.com/biz/the-caton-team-realtors-sabrina-caton-and-susan-caton-redwood-cityå

Or Yelp me:  http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina