Real Estate Podcast with Scott Fuller

Today I wanted to debunk a myth I hear a lot around this time of year. It goes something like this: “If you want to sell your home for the most money, you need to wait until spring and summer.” This statement is simply not accurate. In fact, some of the strongest times to sell your home occur in the fall and winter. As we get into January and February, that’s when we see homes start to sell more quickly and for more money. “January and February are great months to list.” One reason for this is that there is simply less competition on the market. This makes it easier to attract buyers to your home and helps it stand out. Additionally, there’s a sense of urgency for buyers that isn’t there in the spring and summer. In a perfect world, everyone would buy and sell in the summer because it’s more convenient with the weather, schedules, etc. But life happens. Those who decide to sell in the winter usually decide to do so for a specific reason, whether it’s a job transfer, change in familial status, or some other reason. Don’t buy into the hype that you have to wait until late spring or early summer. You can sell earlier in the year and possibly get more money and a faster sale. If you have any questions about your particular situation or anything else related to real estate, don’t hesitate to give me a call or send me an email. Happy holidays to you all.

Today we want to show you all the new features we’ve added to our website that are designed to help you make cost-of-living comparisons for different cities you might be considering moving to.  Cited below for your convenience are timestamps that will take you through these features step by step. Feel free to watch the full message or use these timestamps to browse specific points at your leisure:  0:25—Using the “Resources” tab on the front page to find the destination cities we have data for1:04—How Phoenix compares to San Francisco (hint: it’s 62.8% cheaper)1:27—The different ranking criteria we use and the links we offer for more info1:46—A deeper dive into the cost of living comparison2:12—A section featuring our webinar we did with our partners in Phoenix 2:38—More cost of living and other living comparisons3:27—Using the “Phoenix Area Tour” section to request a tour from our team We have 26 different cities we can offer comparisons to, but if you’re interested in a city that we left out, just let us know and we’d be happy to provide all the information you need.  If you’d like to know more about these website features or you have any other real estate questions, don’t hesitate to reach out to me. I’d love to help you.

Are you wanting to buy a particular home, only you don’t quite qualify for the amount? You have options.  First, think about your debt-to-income ratio. This is a figure that lenders look at to decide what you can qualify for; it’s calculated by comparing how much money you make to how much debt you have to pay off. Factored into this ratio are things like credit card debt, student loan debt, car payments, and similar things. Usually, to qualify for a home loan, your debt-to-income ratio can’t exceed 43%. “It boils down to having a mortgage planning session to find out the ways we can structure a plan for you to get into the home you want at a monthly payment you’re comfortable with.” If a house you love is higher than what you’d be able to qualify for, one option you have is to pay off one of your debts entirely, like your car loan. For example, if you have an existing $15,000 car loan for which you pay $600 a month, paying off that loan entirely will free up $600 to you each month to put toward your house payments. That equals roughly $50,000 to $75,000 more purchasing power. However, you might qualify by putting 20%, 15%, or 10% down instead and paying off your loan. In the end, it boils down to having a mortgage planning session to find out the ways we can structure a plan for you to get into the home you want at a monthly payment you’re comfortable with. We work with some excellent mortgage lenders to help you look at and identify your options. If you have any questions or would like to speak with one of these lenders, reach out to us. We’d be glad to help you.

California as a whole has experienced negative net migration, meaning more people are leaving California than are coming to the state. This trend could impact the real estate market, and today I’ll discuss how.  It certainly does indicate a mass exodus, but it also means that there are a lot of buyers who are looking to purchase your home—you may just have to market your property a little differently. For example, many of the people who live in San Jose and the peninsula are looking for a lower cost of living and better schools. A lot of these people are renting in South Bay, so they’re flocking to the East Bay and areas like Fremont, Livermore, Dublin, San Ramon, and even Danville. In essence, they’re moving up, and if you’re looking to sell your home, you need to have those people in your marketing range. “To make the most of this trend, it’s important that you consider who your target market is, where they’re moving from, and when you’re listing your home on the market.” Don’t just market your home to your neighborhood and city. Market it to where the buyers coming from South Bay can see your listing. In fact, many of the agents who represent these buyers don’t even have access to the lockboxes we use out here, but we make it work. Those living in the Walnut Creek, Concord, Pittsburgh, Pleasant Hill, and Lafayette areas can expect to see an influx of buyers coming from San Francisco or Oakland. Those living in Oakland can also expect a number of buyers from San Francisco. In the end, to make the most of this trend, it’s important that you consider who your target market is, where they’re moving from, and when you’re listing your home on the market. If you have any questions about this topic, don’t hesitate to reach out to me. I’d be happy to help you.

If you’re thinking of relocating, what steps should you take to make for a smoother transition? It depends on your reason for moving. If you’re relocating because an employer has asked you to do so, then they’ll likely take care of the logistics for you. If you’re relocating for personal reasons, though, then the burden of executing this move will fall squarely on your shoulders. Thankfully, there are several helpful tips you can keep in mind to make this easier, many of which we’ll discuss in today’s message.  Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:  0:26 - Introducing today’s topic 1:26 - How our “Leaving the Bay Area Roadmap” can help with your move 2:03 - Roadmap step No. 1:  Have a discovery consultation 2:32 - Roadmap step No. 2: Research your destination 2:51 - Roadmap step No. 3: Determine the equity position of your home 3:08 - Roadmap step No. 4: Have a destination consultation 3:37 - Roadmap step No. 5: Consult with a CPA/ financial planner 4:06 - Roadmap step No. 6: Take an exploratory trip 4:28 - Roadmap step No. 7: Get approved 4:46 - Roadmap step No. 8: Prepare your home for sale 5:02 - Roadmap step No. 9: Take a home buying trip  5:33 - Roadmap step No. 10: List your home for sale 5:55 - Roadmap step No. 11: Schedule the logistics 6:25 - Roadmap step No. 12: Move into your new home 6:51 - How to get your own copy of this guide If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

If you’re thinking of selling your home, there are a couple scenarios where it’s feasible to sell it as-is.  First though, the definition of “as-is” can vary from person to person, so make sure you and your listing agent have a mutual understanding of what your home’s as-is condition is and you don’t encounter any unwanted surprises.  “You don’t want to use the term “as-is” when marketing the home to the open public.” Now, if you inherit a property with a lot of problems that you have neither the time nor money to fix, this is a good opportunity to have an as-is sale. Because of the work involved in fixing up the home, you’ll typically get an offer below market value, but you’ll also likely get a cash offer and be able to close quickly.  If everything in your home is in good condition and you don’t want to make any major upgrades to it, this is another good opportunity to sell as-is. However, you don’t want to use the term “as-is” when marketing the home to the open public, because buyers will assume something’s wrong with it. This option will allow you to still sell at a good price.  If you have any more questions about the best way to market your property based on its condition, don’t hesitate to give me a call or send me an email. I’d be happy to help you.

An iBuyer is a company that will agree to purchase your property, sight unseen, and close the transaction quickly.  Here’s how it works: You fill out a form that includes all the information you know about your house. You upload photos of your property. You’ll receive an offer for your property, often instantly. That offer, as you can imagine, is going to have to come with some sort of a discount to the company—they’ll be purchasing it and then reselling it, so there needs to be some sort of margin of profit for them. Under the typical real estate sales model, you’ll pay 5% to 6% on real estate commission. With iBuyers, you’ll still pay them that average commission, as well as providing them a discount on your home for the convenience of their service. That could be anywhere between 10% and 20%, and that goes toward covering their resale costs. All in all, there’s not a large margin of error for these companies. They’ll also send an inspector in to physically inspect the property, so remember that there is still an inspection time frame when you work with iBuyers. If the inspector finds something wrong with it, then they’ll negotiate the price down even further. “90% of the people who had received an offer for their property from ZIllow’s iBuyer program had actually opted to sell it on the normal market, feeling that they could get more money for their property that way.” Zillow once said they only make around a 0.6% profit per house, which is about $1,700 per house. That sounds low, but remember that they’re doing this on a very, very large scale so as to make a sizeable profit. Zillow also has said that 90% of the people who showed interest in their iBuyer program and had received an offer for their property had actually opted to sell it on the normal market, feeling that they could get more money for their property that way. If following through with the regular process would take longer but net you more money when the home sells, why would someone consider working with an iBuyer? The primary reason is liquidity. If a seller needs to move quickly, an iBuyer might be a convenient route to go.However, you don’t really need to use an iBuyer to get that result. You can get the full market exposure and a reasonable price by selling with an agent and still be able to close early. Our team does this all the time. We put together a strategy for you to sell your current property and to buy a new one without having to sell it at a discount. Though iBuyers aren’t yet prevalent in the Bay Area, you can see in a map at 3:18 in the video above that shows where these companies are cropping up more and more. Some areas even have between 5% and 10% saturation in their markets! Ultimately, an iBuyer is for a home seller who needs a quick sale and doesn’t care about taking less than what their property is worth. If you have any questions about this concept, feel free to reach out to me. I’d love to have a conversation with you.

Reverse mortgages are a great solution that many buyers in our market might not consider, simply because they don’t understand it. To better illustrate what reverse mortgages are and how they can be useful to certain buyers in our market, I recently asked Fernande Bencze of the Attorney Action Club to share her thoughts. You can check out our full conversation in the video above.  Essentially, a reverse mortgage is a loan that allows homebuyers aged 62 and up to purchase a property and, instead of making monthly payments, receive payments from the lender.  Though the loan balance can be paid off at any time, a reverse mortgage loan only comes due when a homeowner permanently leaves a residence or passes away. This makes it a good option for buyers with equity to spare. There are actually two types of reverse mortgages available in our market. First, there’s the Home Equity Conversion Mortgage (or HECM), which are insured by the Federal Housing Association.  “Reverse mortgages offer the benefit of allowing you to live in a home without a monthly mortgage payment, while simultaneously boosting your retirement nest egg.” There is also the High-Value (or Jumbo) Home Equity Conversion Mortgage. These loans are designed for properties valued at or above $800,000.  The way you leverage these loans can also be highly flexible depending on your goals. Many buyers may choose, for example, to decide to set aside some of their equity to apply toward their retirement, rather than using 100% of it toward their next loan. Reverse mortgages offer the benefit of allowing you to live in a home without a monthly mortgage payment, while simultaneously boosting your retirement nest egg.  The most important thing to remember when seeking this, or any other, home loan is to partner with a real estate professional who can help you develop a plan that suits your specific circumstances. If you have any other questions or would like more information, feel free to give me or my team a call or send us an email. We look forward to hearing from you soon.

What are the different ways homeowners hold title to their property in California? Today I’m joined by Denae Budde of Budde Law Group to answer this question. If your property isn’t vested the right way, it can cost you a lot of time and money down the road.  The default way to hold title is tenant in common, which can apply to couples, family members, or friends. You can also hold title as joint tenants—you don’t have to be married. Community property would be for married couples, though.  Another way to hold title is known as joint tenants with right of survivorship. With this type of ownership, if a husband and wife buy a property and hold it as a community property, when one spouse dies, the other inherits the entirety of the property and they get the step-up in tax basis to that point in time. “Don’t save on the short end, because it will cost you on the long end.”  One situation I see happen a lot is homebuyers getting to the closing table, but once they’re presented with the document asking them how they want to vest the property, they don’t know what to pick because this is the first time they’ve seen such a document. What can you do to prepare yourself for this?  You can start by speaking with an estate planning attorney, a family planning attorney, or a real estate attorney and exploring your options. If you don’t specify, the default title will be joint tenants in common.  Some people elect to write their own deeds in order to save money in the short term, but doing this brings certain risks. If you don’t do it properly, someone’s interest can get left out. Also, if you’re not specific in your wording, title will default to right of survivorship. From a title insurance perspective, this isn’t considered an insured deed, either.  If you’re not sure how you’re holding the title to your property, you can check by going online and getting the basic information for the recorded document, and then going to the recorder’s office and getting a copy of the deed. That will show how you took the title.  The bottom line is this: Don’t save on the short end, because it will cost you on the long end.  If you have any more questions about this topic or you’d like to get in touch with Denae, you can give her a call at (925) 939-3880 or email her at dbudde@blglegal.net.  As always, if you have any other real estate questions for me, feel free to call or email me as well. I’d love to help you.

Today I’m joined by Brian Linchey of Mason-McDuffie Mortgage to talk about a strategy that you can use to get more buyers interested in your home. Let’s say that you have a property that’s listed for $1 million and it’s just not selling. The first thing that you’re probably going to think about doing is reducing the price. However, one strategy that Brian has used before is an interest buydown, which allows the buyer to be able to reduce their mortgage payment and allows the seller to avoid making a price reduction. If you had that same $1 million listing and reduced its price to $960,000, the seller is going to be accepting less money. Instead of losing that $40,000 though, you could pay a couple of points to buy down the buyer’s interest rate. That might only cost a seller $22,000 instead of $40,000.  “You could even use a price reduction and an interest buydown at the same time.” The benefits of this are significant on both sides. It lowers the interest rate by up to ¾ of a point, which can have a significant impact on the buyer’s monthly payment. By lowering that payment, you can also open yourself up to buyers that might not have been looking for your home at first or may not have qualified for it without the buydown. It’s really a win-win situation. Another strategy could be to use both. Maybe you do a slight, $10,000 price reduction and let the market know about it, while also doing a $15,000 interest buydown.  If you’re a buyer or seller and you’d like to look into this strategy more, don’t hesitate to reach out to Brian at (925) 231-4311 or blinchey@masonmac.com. If you have any other questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Today on “The Real Estate Market Minute,” I’ll be going over why home prices will soon be going up in the San Francisco real estate market.  In 2004, Google went public and created 1,000 new millionaires. The same thing happened when Facebook went public in 2012. In 2019, however, experts are expecting around 5,000 new millionaires to be created. These will come from companies such as Airbnb, Lyft, Pinterest, and Uber. This influx of millionaires will have an impact on San Francisco real estate. Some will purchase high-end property, but a majority will be purchasing around the $1 million price point. Though there may be properties under this price range right now, there likely won’t be in a few years. “Nothing’s going to happen overnight.” San Francisco prices are already sky-high, but we’re nearing the end of our market peak. Though inventory, days on market, and interest rates have been increasing across the country, these powerful businesses insulate our area from feeling the effects. How much of this will trickle into the East Bay? Probably not a lot—people there work long hours and are interested in staying close to their area and near their work. Nothing’s going to happen overnight; investors must own their stock for at least six months before cashing out. Regardless, it’ll be interesting to see what happens over the next year. If you have any real estate needs, have questions, or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

If you’re in the market to buy a home or you know someone who is, this is a video you should bookmark. The biggest thing that’s keeping people from buying a home is the down payment. Coming up with a down payment for a home can be challenging in the East Bay, but it’s not as challenging as a lot of people think. Many believe that you need 20% down to buy a home. That’s just not true. There are plenty of programs out there that will allow you to purchase a home without a huge down payment. “The conforming loan limit for 2019 is $726,525.” The new conforming loan limit for 2019 is $726,525. Some down payment assistance programs out there will allow about $50,000 to go toward a down payment. After that, buying a home could be as simple as saving an extra months’ rent payment. It’s basically a deferred payment loan for the life of the loan, but it allows a buyer to get into a property without much of a down payment at all. There are plenty of areas where you can find a home for under $726,525, such as Concord, Martinez, Pleasant Hill, Brentwood, and Antioch. There are more homes to choose from in these areas. I work with a few lenders who specialize in helping homebuyers come up with a down payment. If you have any questions about the process or about anything else real estate-related, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

If you want to improve your credit or you have a major purchase in mind for 2019, here are five tips that will help you:  1. Shoot for a credit score of 750. The highest credit rating you can get is a score of 850, but only about one out of every 200 people actually achieve this score. If you can shoot for 750, though, you’ll still get the best types of rates.  2. Automate your payments so they’re always on time. Roughly 35% of your credit rating is based on your payment history, so set up automatic payments so all of your bills are paid on time.  3. Watch your credit limits. A good rule of thumb is to keep your balances between 10% and 30% of whatever your credit limits are. For example, if you have a credit card with a $1,000 limit, don’t spend over $300, but make sure you spend at least $100. If you don’t use your credit or you keep it as close to 0% as possible, that will hurt your overall credit rating because banks want to see that you’re actually using your credit and actively paying it off.  4. If you have a card you don’t use anymore, don’t close it down. If you close it down, that will hurt your credit rating. Instead, try to use it as needed and keep the balance between 10% and 30%. 5. Be careful when opening up a credit card with a specific department store. In fact, don’t do this unless you plan on shopping at that store on a regular basis and the terms of the credit card are beneficial.  “Keep your balances between 10% and 30% of whatever your credit limits are.” If you’d like to know more about improving your credit, you’d like to talk to an expert who can help you boost your score, or you want to check your score today to see where you stand, don’t hesitate to reach out to us. We’d be happy to help you. 

2019 is right around the corner, and if you’re looking to sell your home after the new year begins, you may want to think about getting a pre-inspection. Here are three reasons why: 1. You’ll find out what may scare buyers away. Most homeowners already know what needs to be repaired, but they may not know about health and safety issues or other things invisible to an untrained eye. A home inspector will uncover anything that needs to be fixed, and with their report, you’ll be able to disclose any issues (and repairs) to potential buyers. 2. Buyers will have more confidence in buying. Because you’ve had your home inspected and have fixed any major issues, buyers will know they’re buying a property that’s in good condition. As the market softens and demand for homes decreases, you need to be sure your listing stands out. The way you compete is by guaranteeing buyers a professionally inspected, worry-free purchase. “At a minimum, get a home inspection and a pest inspection.” 3. Negotiations will be minimized. Because you’ve put everything about your inspection and subsequent repairs on the table, buyers know exactly what they’re getting. If you didn’t have pre-inspections, buyers would be leery of making a purchase and often offer a low-end price. Your transparency is key in giving buyers a sense of what they’re getting into. Once you have a contract with the buyer, it’s less likely they’ll be able to ask for a price reduction or repairs (if you’ve fixed major issues noted in inspections). At a minimum, get a home inspection and a pest inspection. We’ll then comb through these inspections and find out the major issues that need to be taken care of, such as health and safety-related items. You don’t necessarily need to do chimney, pool, or roof inspections unless your inspector suspects you need one. If you’re looking to sell, have any questions, or need more information, contact us. We look forward to helping you with your real estate needs.

You’ve probably heard a lot of people talking about the changing real estate market. Homes are staying on the market for longer than they have been in the past and inventory is increasing. We’ve been seeing this for about the last 60 to 90 days, but here are some concrete numbers that show what’s actually going on right now. In Danville, for example, there are 152 active detached homes for sale, which is a pretty high number compared to what we’ve seen in the past. The average days on market here is around 75 days. Keep in mind that I’m not breaking this down by price range, so the average is brought up by a lot of the upper-end homes that typically take much longer to sell. Still, a 75-day average is huge. “If you’ve been on the fence about buying, now is the time to hop off and make a purchase.” Here are some of the numbers for some other towns around the East Bay: Dublin: 58 detached homes for sale and an average days on market of 42 days on market. Castro Valley: 42 detached home for sale and an average days on market of 38 days on market. Antioch: 178 detached homes for sale and an average of 36 days on market. Fremont: 200 detached homes for sale and an average days on market of 37 days on market. Livermore: 133 detached home for sale and an average of 50 days on market. As you can see, the average days on market has greatly increased from the 10-, 15-, and 20-day averages we were seeing earlier in the year. What does that mean for you as a buyer? If you’ve been sitting on the fence about buying, now is the time to get back out there. If you’re a seller, you need to ask yourself if it makes sense to sell now or at the beginning of 2019. We don’t know what’s going to happen with the market for sure, but the trend shows that it’s going to continue to soften. The good news for sellers is that we still have a relatively strong market. If you look at other markets around the U.S., they’re lucky to get a home under contract within six months. Sellers should also know that they shouldn’t price their homes like their neighbor did earlier this year. You need to price based on data from the last few weeks to get it sold. If you have any questions for us about buying or selling a home in this market, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

There are a few different ways you can structure a contingent offer. To explain, let me lay out three different scenarios: Case No. 1: Your house isn’t on the market yet, and you’re putting an offer on another property. A lot of sellers might say they’re not sure about your offer, especially if they’ve received other offers. Case No. 2: Your house is on the market, but it’s not under contract. The seller will likely take that more favorably since it’s more likely that you’ll get your home under contract at some point soon. Case No. 3: Your house is on the market and is under contract. From the seller’s point of view, this is almost as good as an offer from a person who isn’t writing a contingent offer. “There are often opportunities in the East Bay area to get a contingent offer accepted.” For case No. 1, you need to be prepared to put your house on the market and to show the seller of the house you’re looking to buy that you’re serious and ready to go. These are some things you’ll need to do: Create a listing agreement with a real estate agent and determine a list price that is going to get your home sold. Make it competitive; don’t test the waters here. Have all of your seller disclosures completely filled out. That way, we have a paper trail we can track and you’ll be ready to show the house as soon as it goes on the market. Get past your home inspection and look into any repair items like dry rot, water damage, infestations, and so on. Get professional photos taken of your property. Consider having a staging consultation. Have a fully underwritten loan approval. This is almost the same thing as having cash, from a seller’s point of view. If you have all these things done, you can put an offer on the home you’re looking to buy and you’ll let the seller and their agent know that you’re serious and your home’s sale won’t be viewed as a liability that would cause them to pass over your offer. As we’re getting into a market that’s a little more balanced between buyers and sellers, there are often opportunities in the East Bay area to get a contingent offer accepted, even if your house isn’t yet on the market. You’ll need to demonstrate to the seller that it’ll be ready to go on the market within 24 hours of them accepting your offer. If you have any questions about this, please feel free to reach out to us. We know the process can be a bit overwhelming for sellers, but part of our service is having a consultation with you to show you exactly how it works and to create a strategy from start to finish that will make it happen for you.

Now that we’re into August, our market is slowing down and starting to soften a bit. If this means we’re headed for a downturn, there are four things you can do to prepare yourself. First, take a look at your mortgage note and make sure you’re in a good position before rates go up. If you have an adjustable rate mortgage, find out what your options are to get it fixed in case you plan on living in your property for a long time. If you’re an investor, evaluate your real estate portfolio and consider getting rid of any properties that aren’t performing well. If you have one or more properties that aren’t doing well or have a lot of deferred maintenance attached to them, now’s the time to decide whether you’re better off selling them now before something potentially happens sometime down the road. “Typically when property values decrease, so do rental rates.” If you’re a landlord and you have tenants living in your property, put together some longer-term lease contracts so you can lock in the current lease rate. Typically when property values decrease, so do rental rates. While you may not want to do this because of the possibility that rates will rise, think about what could happen if your tenants want to renew their leases in six months and rental rates have plummeted in the meantime. Lastly, check if you have any credit from your home equity line of credit that you can use. Before the last downturn, a lot of people had credit from their home equity line that they were going to use but were prevented from doing so by their lender once the market started to turn. If you need access to those resources, talk to a CPA or your financial planner. If you have any more questions about what you can do to prepare for a market downturn, don’t hesitate to reach out to me. I’d be happy to help you.

Today I’d like to share some staggering statistics regarding affordability in the Bay Area. The app called Blind is used by many tech workers to communicate with each other anonymously. Recently, Blind sent out a survey to 2,326 tech workers across different companies, including Google, Facebook, Oracle, etc., to ask if they could afford a home here. Of those surveyed, 59% reported being unable to afford a home in the Bay Area. “59% of surveyed workers in the Bay Area reported being unable to afford a home here.” This is not surprising, given that the median home price in San Francisco is $1.6 million. At this price, only 12% of people in San Francisco can actually afford to buy a house. It’s not just the average worker who can’t afford to live in the Bay Area—59% of tech workers can’t either. This is exactly why we see so many people selling their homes and leaving the Bay Area. If you have any questions about this or are interested in buying or selling, please feel free to contact me.

What is the difference between a condo and a townhome? There is a lot of confusion out there regarding these two types of property. People tend to assume that multiple units stacked on top of each other are classified as condos, and this is generally true. Similarly, most think of townhomes as being two-story homes with rentable upstairs and downstairs units. This is not necessarily the case. And it isn’t just prospective buyers who are confused about the how properties are classified. I recently spoke with a woman who owned a property she believed to be a townhome for years, only to eventually discover that her home is technically classified as a condo. “Terms and regulations can vary between townhomes and condos, so it’s important to be aware of how a property is classified.” There is such a thing as townhome-style condos, so it is important not to make uninformed assumptions about the classification of properties you encounter. I recommend double checking with your Realtor as to whether a property is a townhome or condo. At this point you may be wondering, “Why does the classification of a property matter in the first place?” Actually, it comes down to financing terms and regulations, as these can vary between property types. Whether you’re marketing a property as a seller or are looking to purchase a property as a buyer, being aware of how it’s classified will matter. When it comes to condos, you will generally own the airspace between walls. But with townhomes, you will also often have ownership over the land the property sits on. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Every seller wants to get top dollar for their home, but it is important not to let this aspiration get in the way of your better judgment. Today I would like to go over a common appraisal scam that certain unscrupulous buyers have been employing lately. To explain this scam, let me paint an example scenario for you. Imagine you have a home with a market value between $780,000 and $820,000. You place this home on the market for a list price of $800,000, then a frustrated buyer comes along and makes an offer far above this figure—let’s say $900,000. Should you take this offer? “It is best to not let dollar signs cloud your decisions.” As tempting as it is, you shouldn’t. An offer that sounds too good to be true probably is. This over-inflated offer may be part of an appraisal scam, which is where buyers submit an intentionally outrageous offer that they know won’t match the appraisal. They do this so that they can get you to the negotiation table and secure a much lower price. To avoid having this happen, always consult with your Realtor. What our team does when faced with this circumstance is to insist that the buyer remove the appraisal contingency if they are serious about that high of an offer. This way, they cannot go through with their plan if it is a scam. If a buyer making an offer like this can provide proof of funds and is willing to waive the appraisal contingency, then everything is good to go. Otherwise, it is best to not let dollar signs cloud your decisions. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What are the five things you shouldn’t overlook when purchasing a property in our East Bay market? 1. The home’s surrounding neighborhood. Take a look at the neighborhood at all times of the day. What does it look like at night, or during the morning, or during the afternoon? Is the neighborhood conducive to what you might be looking for? 2. Your daily commute. What’s your trip to work going to look like from your new property? If your commute might be a long one, you might want to take a look at it during the busiest commute hours in the morning and evening. “Is your home’s neighborhood conducive to what you’re looking for?” 3. Whether or not the CC&Rs or HOAs limit what you can do with the property. This means exterior enhancements, paint, etc.  4. Whether or not you can rent out the property. If you plan on purchasing the home for a short period of time and then renting it out, you might not be allowed to do so if the home is located in an HOA area.  5. Things you can’t change about the property later on. If you don’t like the lot size, for example, you might be limited in making future enhancements to it, so take a look at that and decide whether you want to reconsider or not. If you have any other questions about buying a home in our area, just give me a call or send me an email. I would be happy to help you!

Whether you’re purchasing a property with existing appliances and home systems or you already own a home, it’s important to understand how long home systems and appliances truly last. One of the most important things to realize is that even though systems or appliances may not be broken down, they still might not be as efficient as they could be.  If technology has advanced far past the level at which your current appliances and systems are functioning, you may want to consider making some repairs.  “Staying proactive about repairing or replacing systems and appliances will save you a lot of trouble.” Sometimes, replacing systems and appliances altogether might also be necessary. Staying proactive about repairing or replacing systems and appliances will save you a lot of trouble down the line.  It is important to know how long each of the systems and appliances in your home will tend to last. Knowing this will give you a better idea of where you should make investments toward a more efficient home.  Air conditioners, water heaters, and stoves all last eight to 15 years. Refrigerators last between seven and 13 years, dishwashers last between nine and 15 years, and washers and dryers last five to 15 years. HVAC systems tend to last the longest—between 10 and 30 years.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Homeowners associations can include single-family residences in a community or a townhouse or condo community. Before you purchase a property within a homeowners association, there are five things you should know. First, what is the monthly cost of the HOA? For condos and townhomes, that can range from $250 to $450 or even $500, depending on what the community offers. “What is covered by the HOA and what benefits are available?” You need to be comfortable with that monthly payment. Plus, your lender will qualify you based on your mortgage payment, taxes, and HOA fees, so it’s important to know what that amount is in order to qualify to buy the property. What is covered in the HOA? Homeowners associations may cover general upkeep of the area, landscaping, pool maintenance, tennis court upkeep, and other amenities. Some HOAs cover trash removal, water bills, and insurance for the property—which is not the same as your personal policy. Figure out what the HOA offers and what benefits are available to you. What are the rules and regulations in the HOA? Different homeowners associations will have different rules, such as where you can park, how many people you can have over, and other things like that. Are you happy with the outside of the house? The great thing about HOAs is the community will be uniform. There are specific colors for the outside of the house and the front door. There are also rules about mowing the lawn and landscaping. Some people may view these regulations as a downside because there is less freedom for what you can do with your property. Finally, how can you get involved with the HOA? You may want to get on the HOA board to make the rules and regulations and further improve the property and the community itself. If you have any other questions about homeowners associations or you would like to learn more about buying a home, just give me a call or send me an email. I would be happy to help you!

If you’ve been thinking of buying a home, you may be happy to know that the government has recently made it easier to qualify for a mortgage. Recent changes announced by Fannie Mae will be great news for anyone who perhaps previously struggled to qualify for a home mortgage. First of all, the debt-to-income ratio has increased to 50%. “The government has recently made it easier to qualify for a mortgage.” This means that you’re able to be qualified based on 50% of your income going toward your mortgage. Next, adjustable rate mortgages can be done with 5% down. In the past, a higher percentage was required. Another key change is that you may now qualify using future primary employment income. What this means is that if you have a pay increase or new job coming up in the near future, that higher income can help you qualify for your purchase, today. Self-employed borrowers may now also qualify based on one year of tax returns. In the past decade or so, self-employed people had very few options—so this is great news. Finally, timeshares are no longer considered mortgages. So, if you’re attempting to qualify for a home purchase you will no longer have to worry about a timeshare counting as a current mortgage. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Should you invest in real estate as part of your retirement plan? It’s a good idea, but you need to make sure it’s right for you. Should real estate be part of your retirement plan? Actually, including real estate in your retirement plan is a great way to diversify your portfolio. Most financial planners agree that diversification reduces the risk in your retirement plan. However, investing in real estate may not be right for everyone. It does require you to set a lot of money aside in case something happens in the property. For example, the air conditioning may go out, you could lose a tenant, or you may need to take care of deferred maintenance items. When you invest in real estate, you need to have an emergency fund to take care of those things. Real estate is a big commitment. Unlike other kinds of investments, real estate is not necessarily liquid. It can be difficult or expensive to get rid of your real estate investment. “INVESTING IN REAL ESTATE IS A BIG COMMITMENT.” So, before you take the plunge, make sure you do your research. First, find out how much money you need to put down. Also, decide who will manage the property. If it’s a local property, you may be able to manage it on your own. If the property is in another city or state, then you need to find someone you trust to manage the property for you. If you have any other questions about investing in real estate, just give us a call or send us an email. We would be happy to help you!

When you’re looking at buying a home, it’s very important to have your agent run comparables on the home before you decide on making an offer. What we’re seeing more and more in this area is listing agents are purposely pricing the home low to get multiple offers. In many situations, we are seeing a $1 million home being priced at $600,000. It creates a craze among buyers who are looking at this $1 million home and thinking they can get it for $600,000. The idea behind this strategy is that the listing agent and the seller want to create a multiple offer situation in which the potential buyers are trying to outbid each other and end up going over the actual price of the home. “RUNNING COMPS BEFORE SUBMITTING AN OFFER WILL HELP YOU ANTICIPATE WHAT OTHER OFFERS WILL BE.” Comparables, or “comps,” are properties that have sold that are like-kind in your area in the last 60 to 90 days. If you’re buying a home in the area and you want to make sure you’re putting in your highest and best offer, make sure you have your agent run the comps on that home to know what it will actually sell for. Doing this also helps you anticipate what kind of offers you may be competing against for the home and helps establish a reasonable market value for the property. To set yourself up to get the best outcome as a buyer or a seller, make sure you’re doing your homework and having your agent working for you to find these things out ahead of time. If you’re looking to buy or sell a home or you have any other real estate questions, please don’t hesitate to give me a call. I’d be happy to help.

To maximize the return on your investment, here are five things you need to consider when reviewing your offers. You have your home on the market, you have a due date for offers, and you’re starting to receive them. What do you do when you find yourself in a multiple offer situation? First, have your agent confirm with the other agents that their clients have submitted their highest and best offer, and make sure that all the documents are completed with all the information you need to make the best decision. Remember that the highest price isn’t always going to be the best offer. “REMEMBER THAT THE HIGHEST PRICE ISN’T ALWAYS GOING TO BE THE BEST OFFER.” To maximize the return on your investment, here are five things you need to consider when reviewing your offers: Timeline. What is their time frame to close escrow? Is it too soon for you or will the timing take too long? Contingencies. There will be inspection, appraisal, and loan contingencies written into most offers you receive. Review these carefully; they should be reasonable for the buyer but you want to make sure that they will be able to follow through with what they’ve promised in the offer. Type of financing. Cash isn’t always going to be the best option, so be sure to carefully consider the other financing options that buyers include in their offers. The down payment. How much is their deposit and down payment? Rent-back agreement. A rent-back agreement may be necessary if you need time to find another house after you make the sale. As your agent, I take the time to interview each buyer and buyer’s agent to ensure that the offers they present are solid. I want to know what their motivations are in purchasing the home, both emotionally and financially. This will help you make a better decision in a multiple offer situation. If you have any other questions regarding this or any other topic, please reach out to me. I would be happy to help.

Many people incorrectly think that price per square foot will be the same for all homes in an area, but it’s just not that simple. There’s a major misconception out there in real estate that price per square foot will be the same in all homes in a neighborhood. You have to consider adjustments in each unique home for the features, benefits, amenities, lot size, and other things. You can see a comparison of this in the video above. The three homes in the example range from 1,407 to 1,954 square feet but the price per square foot goes up as the total square footage goes down. “MANY FACTORS GO INTO PRICE PER SQUARE FOOT OTHER THAN THE AREA.” This pretty much holds true in most markets. If you’re building a home and you have a square or rectangular foundation, the price to continue to make it larger actually decreases. Price per square foot simply isn’t always the same across the board. When you sell your house and you’re assigning a price, you need to consider all the features and adjustments. If you’d like to know what your home is worth, we’re always happy to come out and give you an assessment and full market evaluation to let you know what your home’s price per square foot is. This will help you make sure you don’t make any mistakes when you price your home. If you have any questions or you’re thinking about buying or selling a home here in the East Bay, give me a call or send me an email. I’m here to help.

The Bay Area is a great place to live. However, it can get pretty expensive depending on where you choose to buy a home. Welcome back to another edition of the East Bay Market Minute, the fastest 60 seconds in real estate. We’ve got an interesting topic for you today. We’re going to take a look at the cost of homes in terms of average price per square foot along the BART lines. **If you’re not from the Bay Area, BART stands for Bay Area Regional Transit and the BART lines are basically the mass transit system around here. ** The graphic in the video above shows you where the BART lines go and what the average price per square foot is in each of those areas. The lines go up into the Richmond area in the northwest and North Concord in the east, and as far down as Millbrae in the southwest and Fremont in the southeast. As you can see, the price per square foot varies quite a bit. As you get into the city of San Francisco, the price goes up over $1,000 per square foot! At the same time, homes in Oakland are much more affordable at an average of $300 square feet. “IT MAKES SENSE THAT A LOT OF PEOPLE ARE MOVING OUT TO THE EAST BAY.” It’s not surprising that we’re starting to see people living in San Francisco move out to the East Bay. Obviously, the price per square foot is advantageous out here, but when you combine that with good schools and good communities, a lot of people from the city are moving here and increasing demand. If you want a copy of the graphic in the video above for yourself, let me know and I’d be happy to send it over. If you have any other questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

When you sell your home, you need to understand the difference between its value and its price. Here’s how. When you sell your house here in the East Bay market, it’s important to understand the difference between value and price. Value is merely a function of supply and demand, while pricing is a function of how to market a property based on the value. Take a car for example; buyers go to Kelly Blue Book to get the value. They aggregate different sales of comparable cars and consider all the features, age, mileage, and benefits to give you a value range of what the car might be worth. Translating it to real estate is the exact same concept. “A HOME’S VALUE IS DETERMINED BY RECENT COMPARABLE SALES.” To get the value of a property, we consider how it compares to other properties that have recently sold, the current supply and demand, and other similar items. The value is based off other comparable properties that have sold, just like cars. From there, you’ll use this knowledge as a marketing strategy to determine what you’ll actually list the home for. To determine the value range you should list it, you want to determine what’s going on in the current market. How much demand is there and how much inventory is there? This will help you determine whether you should market the home on the lower end of the value range or the higher end. If you’re thinking of selling your home this year and you’d like to discuss the value of your home and the best way to market it from a pricing standpoint, give me a call or send me an email. I’d be glad to help you.

Changes in new construction could have a pretty significant impact on the real estate market. I’ll go over what to expect today. How are changes in new home construction going to affect the market? If you look at the chart above, you’ll see what builders are expecting in 2017 compared to what they actually faced in 2016. This year one of their biggest concerns is building material prices. “IF YOU’RE LOOKING TO BUY NEW CONSTRUCTION, BE PREPARED FOR AN UPTICK IN PRICES.” The reason for this is that the United States has a softwood lumber agreement with Canada and they are at a stalemate in negotiations pertaining to unfair import practices for lumber. Until that gets resolved, we are likely to see much higher prices for lumber and other building materials. In fact, from February 3rd to February 10th, the framing lumber composite price rose from $366 to $391, which is the largest weekly price jump since August of 2003. When the builders have to take on these costs, they have to pass it on to the consumer. So, if you are looking to purchase a new construction home, you’ll want to keep in mind that prices of new construction homes will likely be going up. If you’re a seller, the uptick in new construction prices could bode well for you too, as that might increase the value and demand for your home. If you have any questions, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you!

Doing these three things will get your home sold quicker and for the best price. If you’re looking to sell your home in 2017, there are three things you can do to sell for the most money in the shortest amount of time. First, price it right from the beginning. Home values are in a certain range and if you go just a little bit below the median of that range, it will be the price that brings the most interest in the shortest amount of time. “DOING THESE THREE THINGS WILL GET YOUR HOME SOLD QUICKER AND FOR THE BEST PRICE.” If you price your home at the top of the value range, other homes might sell before yours if they offer similar benefits but are priced more competitively. You don’t want to end up sitting on the market for two or three weeks. If you do, you’ll have to keep dropping your price and buyers will sense the desperation to get your home sold. Second, have all of your repairs completed before you put it on the market. It would also be a good idea to get a pest report done. That way you show the buyer a finished product and let them know you have done your due diligence. Finally, make sure you declutter. Some houses need to be staged and some don’t, but every home needs to be decluttered and depersonalized before going on the market. If you have any other questions, please feel free to give me a call or send me an email. I’m happy to help!

If you’re selling your house, you shouldn’t ask any agent that practices dual agency to represent you. Here’s why. What is dual agency? Dual agency is when an agent represents both the buyer and the seller in the same home sale. Why should you avoid this situation when selling your house? Let me put it this way: how can an agent equally represent both sides when the seller is trying to sell the house for the highest price they can and the buyer is trying to buy it for the lowest price they can? If I’m representing a seller and I get a call from a buyer who’s interested in that seller’s house and also wants me to represent them in purchasing that house, that’s a problem because the seller has already hired me to look out for their best interests. They have my fiduciary duty to sell their home and get the most money in the shortest amount of time. “DON’T WORK WITH AN AGENT WHO PRACTICES DUAL AGENCY.” If you’re thinking about selling your home this year, you should ask every agent that you interview if they practice dual agency. You need to find out whether your agent will also represent a buyer that comes directly too them, or just you. My suggestion is to only work with an agent who doesn’t practice dual agency. Not only can a dual agency situation cost you money when you’re trying to negotiate the price up front, but it can also cost you money when negotiating repairs and other terms during the transaction process. If you have any questions about this topic or are thinking of buying or selling in the East Bay market, feel free to give me a call or shoot me an email. I’d be happy to speak with you!

Donald Trump is the President-elect. How will his presidency impact the East Bay real estate market? Donald Trump will become President in January. That said, what effects might his presidency have on the East Bay housing market? Interest rates have gone up 0.5% since the election ended. That is a pretty big jump. Considering that the average loan amount is $700,000, a 0.5% increase means a $200 increase in your monthly mortgage payments. Janet Yellen is the head of the Federal Reserve, and she determines when mortgage rates are raised or lowered. We have seen very gradual increases, but there may be more pressure from a Trump Presidency for Yellen to increase those mortgage interest rates over the long term. As rates go up, affordability will go down. The large sell-off in tech stocks will impact a lot of buyers. Many people in the East Bay work in the tech sectors, so as people sell off tech stocks in order to invest in other things that may do better under a Trump Presidency, that may impact people’s ability to purchase real estate in the East Bay. “INTEREST RATES WILL MOST LIKELY CONTINUE TO RISE.” Demand may change in regards to undocumented immigrants. Most undocumented immigrants who work here in the East Bay are renting apartments until they become documented citizens. If these people end up leaving the United States (of their own accord or due to new immigration policies) and fewer immigrants come into the United States, we could see a lot of vacancies in those apartments. There has been a large push by builders to continue to build high-density housing, so as we see more vacancies, that could impact the housing market. Rental rates will also drop, causing more people to rent rather than buy a home. Since buyer demand will drop, home prices will go up, further affecting affordability. Rescinding mortgage restriction programs, like Dodd-Frank, could actually have a reverse effect and increase affordability. Getting rid of some of those programs could provide more loan programs because there would be less regulation for financial institutions. There are a lot of factors at play, so it’s hard to say exactly how Trump will affect the real estate market. I definitely think that interest rates will go up soon. We are nearing a peak in the market, so if you are thinking about making a move, now could be the time. If you have any questions, please don’t hesitate to give me a call or send me an email. I would be happy to help you!

In Money Magazine’s list of top 50 places to live in the U.S., two cities in the East Bay made the cut: San Ramon and Fremont. Money Magazine recently came out with their list of the 50 best places to live in the U.S. They looked at factors such as taxes, health care, education, jobs, and home affordability. It was no surprise to us that two of the cities on this list are right here in the East Bay. Coming in at number 21 is San Ramon. They are calling it “mini-Irvine.” With new neighborhoods, parks, and the headquarters for Chevron and 24-Hour Fitness in their backyard, this is a fantastic place to live and work. If you would like more information about San Ramon, reach out to us and we would be glad to send you some great resources. “SAN RAMON IS A FANTASTIC PLACE TO LIVE AND WORK.” At number 46 on the list is Fremont. This is a city with a diverse culture, as well as a great economy. It’s also very close to Silicon Valley. If you have any questions about any of the cities on the list or here in the East Bay, we would love to talk. There are a ton of great ones out there. Give us a call or send us an email today.

Contrary to what you may think, listing your home during the holidays is actually a very smart idea. Here are seven reasons why. While most people think that there are fewer buyers looking for homes during the holiday season, there are a few reasons why this time of the year is a great time to list your home. Here are my top seven reasons: Buyers out looking for homes during the holidays usually have an impending reason to move. Because there will be less competition on the market from other home sellers, there will be a larger number of buyers who are serious about getting into a home quickly. Buyers are more emotional during the holidays. Buyers want to be able to come in and see themselves in your home when it comes time for next year’s holiday. Houses show better during the holidays. Your house will look better with holiday décor and buyers love to see this. “BUYERS ARE MORE SERIOUS ABOUT FINDING A HOME DURING THE HOLIDAYS.” Buyers have more time to look at homes. Because it’s pretty common to take a few weeks off during the holidays, buyers will be able to take some time to make more prudent, rational decisions about purchasing a home. Some buyers have to buy a home before the end of the year or before tax season ends. For a lot of people, this is a financial decision that they make under the guidance of their CPA. Some buyers need to relocate before January. Because many new jobs begin in January, some buyers will need to be sure that they have a place to live and are settled in by November and December so that they can start work in January. As a seller, you won’t have to move during the holidays. A good agent will be able to arrange a situation in which you close during December and then extend your occupancy in the house or get you a rent-back until you’re ready to move in January or sometimes even as late as February. Don’t be tricked into thinking that buyers are only around during the spring or summer; lower inventory and less competition make the holidays a great to list your home. If you have the flexibility to be able to do this, give me a call or send me an email and I’d be happy to point you in the right direction!

If you’re thinking about selling your home, you may be wondering which improvements will get you the best return on investment. A couple of weeks ago, we sent out an email asking all of you to send us your questions about real estate and, overwhelmingly, the most asked question was, “Which additions or enhancements to my home will get me the best return on investment?” Here are my top three picks: Garage door replacement. If your garage door needs to be replaced, a new one will net you a great return on your investment. The average cost of a new garage door is $2,000, but the average resale cost for that replacement is $2,600. This cost recouped is 131%! Entry door replacement. Since this, like the garage, is going to be one of the first things that potential buyers see when looking at your home, it’s important that it makes a good first impression. A new front door will net you a great ROI as well, since the average cost to replace a door is about $1,400 and the resale value is almost $1,900—or a 128% cost recouped. Curb appeal goes a long way. A minor kitchen remodel. In our area, the average cost of a minor kitchen remodel is about $24,000 and the resale value of this enhancement is about $28,000, which is a 116% return on the investment. “INSULATING YOUR ATTIC CAN NET YOU A 150% RETURN ON INVESTMENT.” Bonus tip: attic insulation. This improvement often goes overlooked by many sellers who are getting their home ready for the market because they don’t think that buyers will necessarily inspect the attic. Rest assured, a fully-insulated attic will make a world of difference when it comes time for the home inspection. The average cost to insulate your attic is about $1,381 and the average resale value is $2,000 with a cost recouped of 150%! One renovation that many people think about making is a bathroom remodel. Obviously, this can be a very important thing to consider, but according to the numbers, the job cost is about $22,000 and the resale value is just a bit less than that, so the cost recouped is about 95%. I hope this helps you better determine where you should put your money in order to maximize your investment in your home. If you have any other questions about selling your home or anything else related to real estate, give me a call or send me an email. I’d be happy to help you!

When deciding whether to accept a contingent offer, there are a few questions you should ask first. Let’s say you’ve got your home for sale on the market and you receive an offer from a buyer that is contingent on them selling their existing home. Should you accept it? The first thing we need to find out is if the property that they own is currently on the market. If it’s not, that’s going to indicate a somewhat risky situation. If their property is on the market, find out whether it’s sitting at a higher price range or a lower one. Properties in higher price ranges tend to take longer to sell, while properties in a lower price range tend to receive offers quicker. If the property is under contract, we need to find out whether or not the buyer of that property has removed contingencies already. If they have, that means that there is a pretty good chance that the property is going to close. “CONTINGENT OFFERS CAN POTENTIALLY BE BETTER THAN OTHERS.” Most of the time, when a buyer puts in an offer on your property and they have a property to sell, they’re usually pretty serious about their offer. From their point of view, if the home they’re selling is under contract, they won’t want to back out of the offer that they have on your property because it could leave them with nowhere to go. For these reasons, if all of the conditions look right, we’ll usually recommend that sellers go ahead and accept a contingent offer. Contingent offers can potentially be better than other offers because that buyer has more motivation to close than a buyer who doesn’t actually have to make a move. If you have any other questions on this topic or any others, feel free to contact us directly by phone or email. We’d love to hear from you.

If you’re an investor with a property that has had renters for a long time, I wanted to share a few things that you should look out for. We always want to maximize your ROI when you have a rental property, and we’re seeing many investors not charging market rate for rent. The classic case is someone buying an investment property 15 years ago and charging $2,000 a month in rent, and having great tenants who pay on time. Then, investors come to us ready to sell, but the tenant can’t leave because they probably work in the area and have kids in the local school district. Market rate has gone up to, say, $3,000 a month, and that tenant can’t afford to move out anywhere. “WE ALWAYS WANT TO MAXIMIZE ROI WITH RENTAL PROPERTIES.” If you’ve dealt with investment properties in California, you know that it’s expensive, time-consuming, and requires hiring an attorney to get rid of a tenant. Many times during this period, they’re also not paying rent. Keep this in mind if you’re an investment property owner! If you have more questions on this subject, please feel free to call me or email me. I’d be happy to answer them for you.

When you are out looking at properties, you typically only visit homes during the day. Most open houses on the weekends end before 5 p.m. However, it’s important to visit a home at night before you purchase it. Why? Here are five reasons: Find out what the commute is like. Driving in the evening allows you to see what that commute home from work will be like. Here in the East Bay, a lot of people find that the commute is longer than what they want. It is important to know how much time you will spend driving to and from work before you buy a home. “FIGURE OUT WHAT THE COMMUTE IS LIKE BEFORE BUYING THE HOME.” You will see how many kids are in the neighborhood. During home showings, kids are usually in school. If you go to an open house on the weekend, you might see a few kids, but driving through a neighborhood in the late afternoon or evening gives you a better idea of how many kids are in the neighborhood and if the area is a good fit for your own children. Is the neighborhood safe? By driving through the area in the evening or at night, you can spot any potential issues that may threaten your family’s safety. Are there any loud neighbors? Will there be people having band practice or loud parties on school nights or during the workweek? Can you live with that? How is traffic in the area? If you are buying a place closer to downtown, that area may see some busy traffic around 7 or 8 p.m. The noise may be a problem, but you should also keep in mind that traffic is a safety issue. If you have any other questions about buying a home or about real estate in general, give me a call or send me an email. I would be happy to help you!