Real Estate Report

Ojos Contacto, Sign Here!

2012-02-18T13:02:00.000-08:00

I have recently been very concerned that in our quest for efficiency as Realtors, and the crushing weight of the minutia driven bank's on line platforms for clearing distressed properties, (and which give no quarter to the distressed owners), that we are making a grave mistake. In fact, it could send our industry to the grave.

Buyers and sellers need emotional time to process what they are doing. Sitting at a kitchen table and working through the signature lines is the best line of sight to airing out fears, feelings and excitement. From the beginning of a contingency release signing party, to the end, often the buyers have moved light years in terms of resolve. But only because they can muse and reflect on this momentous event as I am sitting with them. I watch as the mental clutter comes out and we take each conflicting thought and find a home for it. I neutralize irrational fears, agree with rational reservations, review the game plan, review the product and at the end of an hour or more, everyone moves forward. The sellers are relieved and start packing, the buyer is confident in their decision.

But now with on line signatures and the time demands and the feeling you are not an effective agent if you are not demonstrating your digital savvy, we rush through email signatures without the benefit of breaking real estate bread together and letting the emotional body butter the sandwich.

AND, reading online documents is not the same as holding a paper in the hand. I can't tell you why, whether it's the angle or what, but I absorb detailed documents when I can tough them and read every line for a hidden bomb delivered by the bank, lender or inspector.

If we can commoditize the sales process , then anyone can do it. What the good agent brings to the table is the wisdom, life experience and knowledge of how humans make decisions to GUIDE the client through their own unique process which allows them to making a comfortable and informed decision. To make the process less stressful and confusing. To hand hold, affirm, review and reveal.

I miss the long coffee chats when signatures were required. I think I may just have to move past digital signatures and ask for 'ojos contacto' at key points in the transaction. I miss looking deeply into the eyes of my clients and reading their souls as they sign on the dotted line.

2012 Worries, Walmart and Tiffany's

2011-12-13T15:56:00.001-08:00

Well, the year was not an easy one. And as we go into the next election, respondents to a Houselogic survey indicated that housing was a large cloud on the mind of the public and fundamental in who they will vote for in the election . Chief among their worries:

Jobs/unemployment – 54 percent
Housing – 27 percent
National security – 8 percent
Healthcare – 4 percent
Energy/Environment – 2 percent
Other – 4 percent

Interesting that being deathly ill with no insurance or being bombed was less threatening than being homeless or unemployed. Brings up my favorite topic, Maslow's Hierarchy of Needs:

You just can't be worried about making love when the roof over your head is mortgaged to the hilt and you can't come home from a long day at work when there is no work. Additionally having the phone ring every ten minutes from your loan servicer reminding you your life is going to the dogs doesn't do much but wire your nervous system to crave some certainty.

The challenge with this market is the fear that things are going to correct the minute you cave in and sell short. Now your credit is wrecked and you are a renter again. Or, your FICO is already in the toilet from months of stringing along and the self concept you held of yourself as a prosperous adult homeowner is trashed. "What if I can't trust my own judgement anymore?" The idea that your best thinking landed you in this mess undermines your self confidence which paralyzes you when you have to make yet another critical decision. "Do I stay or do I go now?" The clash is real right now.

The idea of relief in the form of letting go of the precipice and falling onto anything remotely solid is alluring. The idea of letting go of family memories, your pride of ownership, your loss of stature is bruising.

One thing to consider and may console you is this: if you are over 50 you didn't grow up in the age of the internet. You depended on family for fiscal guidance and wisdom. You probably repeated the beliefs and expectations of your family culture and because you were not immersed in information about how the 1% lived, it was okay to have one TV, an old sofa and spaghetti every Family Friday night.

Then came the internet.. Investing was transparent, 401K's for everyone, pressure from the media to invest, to buy homes, to be a full fledged American citizen complete with debt to the hilt. So instead of living within our means we credited up and bought not one house but several. We put money in the stock market and took vacations, because it was expected. Frugal was social leprosy.

Had we stayed naive in our own little community cultures, content with less, we might have actually been happier, ala the cultures in Costa Rica or Columbia.. Very little material wealth, high peace of mind.

But here we are now, aware of fine cigars and fast cars, the ability to stay young and beautiful with enough coin, careless wealth displayed by gold grills on music artists and Mira Lago's over 67,000 sq ft home for the Donald and his 38 year his junior wife. What the hell happened? And we are 114th on the Happiness Index. Go figure.

So we trudge into 2012, (with the Mayan calendar sounding not so bad), and wonder is this the year that things may inch toward happier times?

We know we have an hour glass economy. The Tiffanys and the Walmarts are doing great. The upper crust barely noticed a blip or actually got richer. The 99%, whether they are newly demoted middle class types or the under educated and long bitter bottom of the 99% is disenfranchised. There is no middle anymore. These were the contented folks that poured coffee at Starbucks, delivered our mail, worked at Nordstrom, opened fancy restaurants for the 1% to flaunt their affluence. They had bed and breakfasts, car dealerships, they held us all together, the stitch in the middle that has come unraveled.

So as you ponder your underwater mortgage, your job prospects, keeping the kids in private school, foregoing your annual trip to Hawaii, take heart. You have a lot of company.

I can't say any of this is fun. Working through the broken hearted is awful work. But we will get through it and I find that after the move and the pressure is off and everyone is settled in new surroundings that joy does return. The pleasure in simple things is restored and there is a patina of gratitude that rests nicely on people. There are no U Hauls going to heaven, it's just stuff and when the game is over, all the pieces go back in the box. Embrace simplicity. Look within. Be kind. Do no harm.
And come Jan 1, 2012, you have a nice new white board for your life. Create it carefully and with joy.

America is Falling Behind. Maybe

2011-11-17T17:51:00.000-08:00

While China is poised to become the world’s largest economy within a decade, according to some economists, India already has a rising middle class that is larger than the entire US population, says others.
Dire prophesies about the fall of America abound, and they sell books and interviews like moo goo gai pan sells the fortune cookie.

Yes, there has been rapid growth in those two countries, but Americans have not stopped innovating. China and India are moving up, yes, they are rated 94th in GDP and 129th respectively in the CIA’s World Factbook. But China and India lack clean water and access to safe food in many cases where rural communities are filthy compared to the standard of living we enjoy here. Many citizens are subject to horrible working conditions, urban noise, and air pollution. It will take years for the culture of social justice and responsible entrepreneurship to be inculcated into those countries, if at all.

As consumption becomes less and less tolerated, as excess is shunned and the new status symbol is simplicity, those countries may for both cultural and religious reasons choose to act more moderately. What we see as progress they may feel is moral and or social decline. The pursuit of pleasure in the US has reached a borderless state and many believe it's time to reign in pleasure for pleasure's sake and return to more a demure expression of our society. All three economies may undertake a wholly more contained expression.

For many in South and East Asia, the teachings of Lao Tzu's "Tao Te Ching" still resonates and the ideas of individualism, disruption and innovation are not as deeply embedded in those cultures.

America is unique in that it embraces change, tolerates differences, seeks novelty and creativity. We still boast some of the top universities
in the world.

According to Rob Asghar , Fellow at the University of Southern California's Center on Public Diplomacy , for these countries to "become long term giants, they must become more economically and socially integrated." And to achieve that, "they must be culturally integrated, which means a host of conflicts are on the horizon regarding varying societal views on change, tradition, materialism, social mobility, openness, patronage and so on."

Our biggest threat is our own internal polarization and political dysfunction. The American people are ready and willing to adapt, to protect our country's beauty and re assert our best values. If we could stop worrying about our neighbors and pull ourselves up by our own Birkenstocks or Manolo Blaniks, we would make more progress and lessen our anxiety about the threat of the 'other'.

Limes, Potatoes and Cheese!

2011-09-01T12:24:00.000-07:00

All the names of our Santa Cruz County agricultural, industrial and tourist history are on the street signs.

Hames, Moran, Corcoran, Hihn, Rodriguez, Castro, Spreckels, Johans, Neary,Portola, Swanton, and Porter, just to name a few. These are some of the names that brought cattle, sweet potatoes, logging, apple farming, tanning, lime kilns, dairy farms, fishing or tourism to Santa Cruz County.

You can see a beautiful remnant of the lime industry here in Santa Cruz at Fall Creek Park in Felton. The plaster and mortar industry depended heavily on Santa Cruz lime kilns which barged the lime blocks up to San Francisco 75 miles away. The history of the lime industry is fascinating and now the old kilns are covered with moss and ferns and are lovely to see and imagine the workers and the hot fires that transformed the lime.

Sugar Beet farming began in Rio Del Mar

Claus Spreckels was another influential founder. In 1872 he purchased 1,500 acres of what is now Rio Del Mar, Seascape and parts of Aptos by Cathedral Dr. He paid about $81,000. He started with one dollar .

Claus was impacted by the turmoil of Europe growing up in Germany in the early 1930's and so left for the US. He arrived in America with a $1.00 and could speak no English. He found work in a grocery store for $4.00 a month! Yes, $4.00 a month. And he was allowed to sleep in the store. After 4 years he understood the grocery business and opened his own store. Not content with that success, he took the arduous journey to San Francisco and opened another grocery and a brewery! He sold the store for $50,000 and the brewery for $75,000 and found his way into the sugar business.

Would you work for $4.00 a month?

He experimented with the land he bought in Rio Del Mar and grew sugar beets. He built a refinery for the beets at what is now the Capitola Fire Station. The beets were shipped from Soquel Landing, which is now the Capitola Wharf.

Adolf Speckels accused of murdering co founder of the
San Francisco Chronicle

He also utilized and extended the wharf in Aptos, now only visible at low tide and then only the remnants of it, as a violent storm left behind only pieces.. He built a spur from the narrow gauge railroad to the pier in order to back haul redwood lumber to Hawaii.

Claus fathered 13 children but only 5 reached adulthood. They married into the Mangels, Corcoran and Grosse families and built some beautiful homes in the area.

Find out why Claus' son Adolf, was acquitted of a charge of murdering the co founder of the San Francisco Chronicle with whom he was angry!

More to come on

The original Spanish Land Grants offered to only a few powerful families .
There were 16 Ranchos covering the Coast to the mountains.

When the Mexican government began giving the large Ranchos away, they were sold only to a few powerful families with long time ties. Later, the families, over time, sold off or leased pieces of the grants to developer luminaries and visionary farmers or men of industry.

Rancho Agua Puerca y las Trancas, or Dirty Water Rancho was the most northly including Swanton and Davenport.

Rancho Refugio connected the Western limits of the city of Santa Cruz to Davenport.

Rancho Canada del Rincon en el Rio San Lorenzo lay north of present day Santa Cruz along the San Lorenzo River.

Rancho Tres Ojos de Agua, or Three Springs, covered most of today's High Street in Santa Cruz.

Rancho Arroyo del Rodeo covered what is now Live Oak and Soquel.

The Castro Family owned Rancho Soquel, Rancho Aptos and Rancho San Andreas
which covered the coast from Watsonville to Rio Del Mar and Soquel.

The Perils of Pricing Too High

2011-07-29T13:09:00.000-07:00

Perils of Pricing Too High
According to data wizard, Peter Krause, "The principle of conformity states that value is created and preserved when a property’s characteristics “conform” to the demands of the market." Does it have a home office? Is the yard sunny and private? Does the home have hardwood floors. These are common attributes that have appeal to a wide swath of buyers in the immediate market.

Peter continues, "Thus, properties found within this price range are well anchored from a value perspective. Properties that lie outside of this range will, to one degree or another, be impacted by their non-conforming status." for example, a location that is near a body shop or a property that has 4 different flooring materials will find that those characteristics will pull the value proposition down.

This is described by the principle of progression/regression and depends on whether the property is inferior or superior to surrounding properties.

While there are many opinions on pricing there is only one set of facts. I will reveal more soon.

So I Drove My Lamborghini To The Open House and...

2011-06-22T14:19:00.001-07:00

When Netflix opened at $15.00 a share it was hoping to get the bounce that PayPal got after Pay Pal went public. Netflix definitely made a splash with a price today of $248.66! And what about the LinkedIn money? Priced suspiciously low at $45.00 a share it soared to $109.00 bringing back a gut wrenching memory of the turn of the century tech culture that left us dizzy with stock options. Well, that LinkedIn IPO was a gift to the early investors who promptly got that money out to the economy.

A guy rolled up in his Lamborghini to look at house, a young guy, and he said, "Dude, I don't want to compete with the next IPO at Facebook or whatever, let's buy this house now!" He was flush with LinkedIn money.

In another case, a big wig at a "group discount" type company, is buying his trophy beach house fast before the tech money rolls out and makes competition drive prices from their current ridiculous values. Cash baby, they are all cash.

Let's Talk Cab and Coffee My Ohana!

2011-06-15T18:45:00.000-07:00

Sorry to leave you hanging, I was resting my spirit at the base of Yosemite Falls, which was full to flood stage! Incredible sight. But here I am back in the land of red wine and encouraging you to go see Marin Artukovich at MJA Vineyards.

Marin has a wonderful history that involves two of life's finer pleasures, coffee and wine. He farmed coffee on Kona for years and if you go taste his Cabernet Sauvignon he'll share wonderful stories about beans, brains and roasting coffee while he shares his sumptuous wines. Someone called it "vacation in a bottle!"

Marin moved his Napa wine operation to Santa Cruz and teamed up with local Cathy Bentley who had a background in coffee as well. Together with winemaker Mikael Wargin, this trio of colorful personalities preside over both the MJA Vineyards and the tasting room on Ingalls Street in Santa Cruz.

The tasting room at the Ingalls Courtyard, home to Kelly's French Bakery, is open daily noon to 6! You will not find a more friendly tasting room or a better crowd of fun seekers than at MJA. But don't let the conviviality fool you. There are some seriously good Cabs to be had here. Whether you choose Davine Cellars or Serene Cellars label, you are going to love these lush wines.

Marin also produces 2 Sauvignon Blancs and a Pinot Noir that you must try with his chocolate covered coffee beans as a chaser to the red wines.

If you're shy at all about learning about wine, or have trouble asking questions, start your experience at MJA. The friendly, encouraging atmosphere will make it easy to learn or to enjoy some debate whether you are a beginner or a seasoned connoisseur.

Remember, there are 11 wineries on Ingalls Street , park once and enjoy.
PS! I'm headed over to Main Street Garden restaurant to review this very buzzy spot!

All About Santa Cruz Wineries

2011-05-20T10:47:00.000-07:00

You don't have to go to Napa, burn gas, pay $300.00 a night for a room to go wine tasting and meet some nice folks. No, no, no my little oenophile!

You can pedal over to the Ingalls Street Courtyard and have a fantastic afternoon and never get in a car!

Located at the top of Santa Cruz just before you head out towards Davenport, turn left on Swift Street and a short distance to Ingalls St where you turn left again. Park the car. And forget about it.

Here you will find over 10 winery tasting rooms, 2 of which I'll talk about here.

Let's start with Silver Mountain Winery. Jerold O'Brien has been producing wine for over 30 years from his vines high atop the Santa Cruz Mountains. His Certified Organic vineyard sits at almost 2100' above the sea with commanding views over the mountains and looking down onto a distant Highway 17! Amongst the clouds, the occasional snow flurries, and the gorgeous sunlight, Jerold's grapes thrive.

Growing tender Pinot grapes is his passion and his wine reflects this commitment. Along side these luscious reds is his crisp Chardonnay. Not overly oaky or loaded with butter, Jerold's Chard is a favorite at the tasting room. The Chardonnay grapes are also grown at the vineyard and are organic.

Members of his very successful wine club stop at the winery to taste as a benefit of membership and enjoy 20% off on all the wine they buy during the year, except of course, Jerold's generously discounted collections, like his Economic Recovery Special, featuring Spencer's Choice Pinot . Spencer is the beautiful blue eyed winery dog who presides over the porch! This velvety elixir is sumptuous and opens in the glass beautifully.

The second Silver Mountain tasting room is located at 402 Ingalls St Suite 29, right next to the Santa Cruz Organic Brewery and is open Thursday through Sunday Noon to 5 ish! If the room is packed , they'll keep pouring! The winery itself is open only Saturday, Noon to 5:00PM and is located about 9 miles up Old San Jose Road, turn right at Miller Hill Cut off.

Next stop is across the courtyard to Sones Cellars. Michael and Lois Sones met at sea on a cruise ship, so the masthead on their label is a nod to that romance!

I love their Cancione Del Mar, or Song of the Sea, a crisp blend of great whites, using Sauvignon Blanc, Pinot Gris, Torrontes and my beloved Viognier. This blend is redolent of pineapple and pear, soft and yet has a nice slice of mineral, like a ripe apple cut with a carbon knife!

Another fun offering at Sones Cellars is the The Hedgehog. You purchase a special bottle that you can bring in and refill with quality table wine, much as they did in the old days! This is a great red wine and perfect for Friday dinner.

If you haven't visited this chic and lively little corner of Santa Cruz, you need to stop missing the fun! I'll share more tidbits about the other wineries soon! And of course a story on Kelly's French Bakery who started the whole enterprise on Ingalls.

http://sonescellars.com/
http://silvermtn.com/

Good Mood Food for Getting Through a Short Sale

2011-04-14T17:14:00.000-07:00

Let's face it, the world is a complex place and just calling the bank can be a hassle when you have to scream "Representative, representative!" 100 times to get the computer voice on the phone to transfer you . Anyone can lose a good mood in a call queue. Here's some foods to consider. Good Mood Food, starting with the Omega Monsters: Salmon, walnuts and canola oil. These babies help your heart, eyes and joints as well as fighting depression. Stock up on flax seed, tuna, trout, sardines, mackerel and anchovies. 2-3 Servings a week. B6 Team: Vitamin B6 aids in the production of serotonin, the feel good brain chemical. It reduces anxiety and mood swings so get at least 3 servings a day of red bell pepper, spinach, potatoes, chicken or nuts. 3 servings a day Group of B12 : Vitamin B12 fights depression and fatigue and is found only in animal foods that may be high in saturated fats. Too avoid that choose skinless chicken breast, low fat cottage cheese, or Greek Yogurt. 2-3 servings a day. Seize the C:Funk fighting serotonin is a neurotransmitter and requires Vitamin C. Red bell peppers, cantaloupe, and strawberries are good sources and have anti aging properties! That should boost your mood! 2 servings a day What's a Serving look like? fish, beef, chicken 3 oz nuts, seeds, oil, dried fruit 1 oz Cereal,leafy greens, dairy 1 Cup Veggies, sliced fruit, juice, oatmeal 1/2 C It's spring! ( I think) So celebrate with some good mood food!

A Good Way To Fail

2011-04-14T14:54:00.000-07:00

We are odd creatures about price. When I had a flower shop in Santa Monica, on my first Valentine's Day I thought selling discounted roses would be the way to lots of orders. I answered the phone full of enthusiasm for my discounted humanitarian price that would drive romance to a new high. But a funny thing happened. 2 out of 3 people said "Thanks." and hung up. The next year I tried a different tactic. I used higher quality roses, better vases and silk ribbon. Then I doubled the price from last year. I answered the phone a nervous wreck, choking out the new price with dread. "Here's the address" they all said. Why? Because, they figured, if I was charging more, they must be better and because I was ethical and wanted them to come back next year, they were better. Consider a glass of wine. "How is it?" my friend asks. Well, compared to Chateau Haut Margeaux, not so great. Compared to Two Buck Chuck? Awesome! How do we quantify value? As a real estate business person, our brokerage fees are hard to quantify. If we do a superlative job, shield our client from stress, mask the difficulties, resolve all the discord and present a sale at the end of 45 days of our own hellish labors, they wonder what we did. If we involve them in the drama, offer them sleepless nights participating in the uncertainty of a transaction in this market, or blast the other agent so we look like heroes, they often wonder, "Why am I paying this guy to torture me?" Since homeowners on average sell only once every 6-9 years, they are not selling in the same market in which they experienced the last sale, so all of their expectations will be violated. Unlike going to the cleaners or grocer, which they do weekly, the consumer cannot compare their experiences tangibly and they tend to make choices largely on price of services. Once they realize they have chosen badly, they are in too deep. Our current market is NOTHING like anyone has experienced prior. Please find a full time, constantly re educating, active, engaged real estate business person. This person should also be networked to financial advisers, tax experts, lawyers and estate planners so they pick up on trends, problems and market conditions well ahead of the newspaper or colleagues. In addition they must now stay on top of on line marketing or pay dearly to have a service that provides SMM, RSS, blogging, syndication, hosting, photography, video, hosting, players and links, all so that your home shows up on Google! This all takes drive, and additional time, energy and resources to deliver a better outcome. So you can pay now or pay later, but I say pay for the best and get a superior outcome.

Realtors With Experience Are The Key!

2011-04-12T16:47:00.000-07:00

Are you deep into a short sale? Ready to scream? Here are 5 key things to keep in mind: 1. Work only with an experienced Realtor. This industry is wiping out the weak, the lazy, the uneducated and the slackers. It is far too difficult to make a short sale work to risk it on a rookie. Be sure you have an experienced Realtor. Ask the following questions: a. What is Equator? b. How many stages are there in a short sale offer? c. How have you handled the Jr. lien holder previously? d. Please explain the 'investor' stage to me. e. Please explain the language in the Car SS form. If you get vague answers or a deer in the headlights look, excuse yourself immediately. Each bank is different so there is no uniform protocol to getting the short sale done, but each requires the following: 1.A signed purchase agreement by the buyer and the seller. Even if the seller is behind in his loan payments, has a notice of default, or is trying for a loan modification, he is still the owner of record and must agree the sale. 2. A hardship letter that is very detailed and offers the following four parts: 1. What lead to your financial collapse? 2. What sacrifices have you already made? 3. What are the benefits of the short sale? 4. A statement that you are willing to maintain the home. 3. Your last 2 years tax returns 4. Your last 3 bank statements 5. A list of any other assets or a statement that you do not have any. 6. Your agent can provide comparable sales in the neighbor and should write a detailed letter shedding light on the conditions in your neighborhood. 7.A Financial Statement for any period not covered by tax return. It is very important that you separate the elements and label them with a sheet of paper: My Financials, My Tax Returns, Comps, My Hardship etc. The person reviewing your file looks at hundreds of files and is very jaded. And probably tired. You must get them to wake up. A photo is also helpful, even an image of a pencil or a beleaguered person will jolt the attention of the asset manager looking at your file and will make you stand out. This is war, a war of attention. Fortune favors the BOLD! Also, be neat, this sends a message that you are responsible and can complete a goal. They are stocked up on whiners and wimps. GO AFTER IT! And remember, a short sale successfully handled frees you of negative equity, you can re purchase in many cases after two years, and you relieve a lot of stress on your self or your family. Good luck!

What Most Americans Are Missing

2011-04-10T09:23:00.000-07:00

Fallan Research and Communications, Inc. discovered that 91% of all homeowners still believe real estate is a good investment. 72% of renters want to own a home.http://www.realtor.org/wps/wcm/connect/4cdb6500463596dc84e7bdce195c5fb4/3_11_Home_Dellivery.pdf?MOD=AJPERES&CACHEID=4cdb6500463596dc84e7bdce195c5fb4 Americans have never been good at planning. While other cultures have traditionally saved more and planned for future generations, our cultural trait of "pull yourself up by your bootstraps" has led us to be a do it yourself culture. But as we have slowed down the pace of our lives and find ourselves taking a hard reflective look at the value of acquisition verses security, we are making changes. Security, while instinctive has not been intellectually embraced. Living Americans have never experienced a war or physical threat to their safety. Apart from the terror of aids in the 80's, no plague or pox has made us think about our destiny. We have enjoyed freedom from worry that burdens many other nations even today. The 'Greatest Generation' that experienced the depression did plan, many have enviable fortunes to pass down, but find their children are spoiled and entitled and have no life skills to manage any form of wealth. But those that still have their thinking caps on, are rethinking the whole thing. Gone are the casual expenditures on the next big flat screen. Maybe a hybrid is not so geeky after all. Do I really need 200 channels of TV for $150.00 a month? What legacy do I want to leave and how much time have I remaining to get it together? Through all of the soul searching and agonizing "if only I'd have...." the dream of home ownership is alive. It is largely a biological drive to own your own shelter. Animals defend their nest courageously, without shelter they die. We have a deep limbic need to feel secure in our nest. Ownership speaks to that drive as well as the highest of Maslow's needs, self actualization. http://www.abraham-maslow.com/m_motivation/Hierarchy_of_Needs.asp Nobody wants a landlord telling the they can't express themselves with a lavender bedroom, or decoupage bathroom door! "Let me be me!" is every renters cry. So having a home expresses both the second of Maslow's needs, Shelter (second only to air,water,sex, and food) and the highest, self actualization. As you think about whether to buy a home or not, remember it is not totally realistic to think only in terms of fiscal sense. You must have shelter. Renting is great when you are young with few assets and responsibilities, but when you are 80 and don't want your kids to put you in a home or hanging out with a lot of other folks with walkers, owning you own home gives you massive control over your destiny. ONLY by buying young and buying smart will you assure yourself of that security. Or, if you have squandered that chance and are over 40 , buy smart and hand the asset to a well informed adult child, and you will have made a legacy for them and for their children. Only by setting that example and talking about the virtue of sacrifice and planning will we save our society from the "me first" thinking that took root in the 80's. By being committed custodians of our assets and thinking more about generational time lines, will we starve out the disposable thinking of many Americans today. If you accept that the new normal may not hold the cavalier expenditures of the past, that life is profound and your responsibility is to model good decisions for your children, nieces, nephews, friends and business relations, you settle into a way of thinking that is more about quality and less about quantity. Shelter, it is a huge concept. It has been a long time since prices and % rates collided to your benefit. Think long and hard about the wealth creation you can gain right now in this historic time. This constellation of conditions may never come again, as this event is a product of globalization. Once the standard of living has equalized around the globe, things will settle again into more predictable patterns and this anomaly will vaporize. The dream is alive, and the means are here to make huge gains. Don't miss it, but expect it to manifest slower than we fast paced Americans prefer.

HAMP and HAFA Offer Real Help to Distressed Homeowners

2011-02-22T14:16:00.000-08:00

Don't believe all the negativity in the anecdotal world. The HAMP program, Home Affordable Modification Program from the government has modified 600,000 mortgages and the servicers, or the company collecting on home loans on other programs, has created a look a like program following the HAMP guidelines and have modified over 1.5 million loans.

That is 2.1 million homeowners that have had real help in staying in their homes. The 1.5 million look a likes required no tax payer dollars as well, but would not have happened but for the structure created by HAMP.

HAMP lenders receive an incentive only AFTER a successful short sale closes, or a loan modification is successful. There are many incorrect myths about this process currently.

As recently as Feb 1, 2011 the rules have changed for the better. Until recently, selling your home short of the needed money to pay off the loan could take over 6 months, and often ended in foreclosure if all parties were not communicating effectively or at all. Some of the changes are:

1. A borrower's reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months prior to certain dates in the HAFA process but may not have purchased another home.

2. Servicers are not required to determine if the borrower's total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.

3. Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii)Alternative Request for Approval of Short Sale and (iii) a signed Hardship Affidavit.

4. If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower's eligibility and , if eligible, send the borrower the Short Sale Agreement.

5. HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.

If you check out this website, www.hopenow.com/questions.php to take a self assessment quiz.

Please do NOT avoid your loan servicer. If you are too distraught, I am happy to call and start the process. The NEW HAFA rules make short sales much more desirable and way less cumbersome. HAFA, Home Affordable Foreclosure Alternatives program.

Pick up the phone, call me or call your lender if you are in trouble.

Death and Taxes

2010-12-07T10:45:00.000-08:00

I love the easy topics! I explore death at http://www.perfectpassings.com/. Check in if you anticipate that you might 'shed your mortal coil', but if you're here to stay, don't bother!

Taxes, wow, so much misinformation on this topic. Cable news delivers a pre packaged opinion containing very few facts and the local news, well, not much going on there either.

When we talk about these tax 'rates' we feel like they are real. But we are one of the few countries that have a 'tax code' and it is highly manipulated by Congress. Change the tax rates and then pass a new tax regulation that negates the effects. The tax rates only apply AFTER a corporation or individual has fiddled with deductions, so the real margin is very fluid. And what you end up with is an 'effective rate' vs. the published rate. But the explanation doesn't make good news bytes and the CPA's lobbyists love those tax code changes. Here's an interesting publication from 2004 from the GAO. www.gao.gov/new.items/d051009sp/pdf

So a complete redo of the tax code might be simpler. Also, having to pay taxes right off the top might help America return to a 'build and earn' model, rather than a 'quickie get rich quick' model that doesn't really contribute to the social structure. ( I think that the stories of overnight billionaires is demoralizing our young people, but that's another story.)

A simple straightforward tax might also limit corporate crime. If the tax code was simple and violations easy to catch, a CEO might think twice about cooking the books. We have too many loopholes, dark corners and sneaky accounting tricks to make the tax rates even meaningful.

On the macabre side, this is the last month you can pass out of this world with limited tax consequences. When Yankees owner George Steinbrenner died on July 13, 2010 just months after the estate tax expired, he saved his heirs a possible $500 million in taxes. Hospital wards will be contentious places this New Year's Eve.

So this month , death and taxes are going to be a potent brew.

Talk to me, log in to http://www.perfectpassings.com/ and tell me how your family plans for the afterlife. One client has an annual family meeting once a year, outlining expectations and the responsibilities of each family member going forward. Brilliant family they are.
Or talk to me here on Real Estate matters! Love hearing from you.
Seasons Greetings,
Terry

Don't Ignore What's Really Going On....

2010-10-22T09:01:00.000-07:00

Remember the G-6? Then the G7 and recently the G8? A bunch of severe looking dudes that got together to talk about stuff on a global scale. I always thought it was just another excuse to travel large on the taxpayers money.

I though the G was for: Geeeeeee, we're going out of town, call the mistress!

Well, things changed when China said " hey! " The table is too small, all of us young growing countries are not at the table. "What about us, what about Brazil?" We have way more going on than Italy.

So it became the G 20. Yeah China, you did it! Now they are all headed to Korea.

Well, they may not be so happy with the irony of it now. When the other emerging countries got a seat at the table they realized, "Hey, China, keeping your currency low is messing up our exports too!" It wasn't just the US that was taking a hit.

For some time now Washington has been cajoling, pressuring, encouraging, demanding that China devalue the Yuan. The current situation allows China's exports to be great values and undermines products from other countries. By balancing currencies in the global market , all counties are on a level playing field which seems like the competition will be to make better products, not just the cheapest products.

Our weak dollar does provide some benefits though. "A weaker dollar gives U.S. exporters the opportunity to boost their profit margins or gain market share"., says John Higgins , economist at Capital Economics. Additionally U.S. companies with operations on foreign soil may see a boost in the value of the overseas earnings in terms of the dollar.

The impact is mixed of course, so there is no straight line to a solution or rationale. Ebay reported a rise in the marketplace deals for the first 9 months of the year, helped by foreign exchange gains against the U.S. dollar, but Eli Lilly reported the sales of its main drug Zyprexa, fell 7% in the international market due to the same thing with a different view point. They say,
it fell due to "the unfavorable impact of foreign exchange rates and lower prices".

So watch the bigger picture. The story for the economy isn't really depressed housing prices in Stockton, Tracy and Las Vegas. It's what the big money is doing on a global scale. The world is one big retail store now and the power players are changing the rules and the goals.

It's exciting, exhausting and YES, you have to learn a few basic concepts and terms, but then you get it and you can see your little problems are not that big a deal. Relax, enjoy a smaller life, spend time with our kids and loved ones, bake a pie, go pick out a pumpkin, savor the smell of wet leaves. The big stuff? Out of your hands. The little stuff? It makes a huge difference in the quality of your life.

Let's see what goes on in Korea.

August Housing Statistics

2010-09-07T16:03:00.000-07:00

We continue to see strong motivated buyers in the market through the summer. July we saw 16.6% of properties listed in escrow, at the close of August it dropped marginally to 14.1%. The median price for what it's worth rose from an average selling price of $467,000 in July with 188 homes selling to $485,000 in August with 166 homes closing escrow. In Santa Clara, there was an influx of foreign money purchasing homes in the Silicon Valley and some Euros looking in Santa Cruz.

We are hearing from the 30-45 crowd that home ownership is still an attractive goal and that after all the media debate and pundits ranting, folks want to own their own home. We are living through a transition where not everyone will have the privilege however.

Quality properties priced according to this market sell very quickly, often under 10 days, while overpriced and under maintained homes languish.

Santa Cruz is a gem, tucked away from the madness of the greater world, clean air and fresh breezes! Enjoy your day hiking, biking, swimming, kayaking, kite surfing, or walking the beach.
It's a great place to call home.

Mid Year Stats

2010-08-31T09:59:00.000-07:00

Don't react to the news about the market as presented on the news. Even the BBC, most neutral of all, gets national stats on air and we are a very micro market at the beach. And within our county we have the devoted sandophiles who must reside ON the beach, all the way to the country folk who prefer drier air, red tail hawks and lots o' space! No one rule applies here in beautiful Santa Cruz.

We are way low on inventory, only a 4.5 month supply of homes. (If nothing new was listed, at the current rate of sale, all homes would be sold in 4.5 months) 16% of homes for sale are in escrow, not the best number but not terrible either. We currently have 1,493 homes up for sale as of July 31, with 248 escrows in play. So if you are a seller, look at your pricing and consider those odds. NOT EVERY HOUSE SELLS. Listen to your agent if you have a good one.

On a year over year basis, DataQuick reports that Bay Area median has risen for 10 straight months, though July's gain was the smallest in that series. Last month, foreclosed on homes made up 26.1% of the sales, down from 33.6 % in July 2009. The monthly average for foreclosure resales oer the past 15 years is about 8%.

Regarding the lending climate, banks are making loans. I have had several great loans close for buyers with good downs, or great credit scores and strong jobs. But, since banks can borrow so low and buy other assets for risk free income, they are disinclined to make riskier home loans in what some perceive to be a still deteriorating economy. This may change as the feds press them to lend money. Look for the Fed rate to change.

We are also starting to see the first round of foreclosed homes that have been updated and put back on the market. Flippers are in the market improving the quality of homes.

It is going to take TIME for this all to clear and there are different levels of activity going on. Solid buyers/investors looking for super deals, cautious first time buyers who instinctively know this is a once in 30 year phenomenon, people leaving home ownership behind forever and the slow slogging through of the defaulted owners. Americans are not good at being patient, but time is the only healer of this mess.

3 Myths You Should Know About Shortsales

2010-08-10T13:12:00.000-07:00

1. Short sales are a waste of time.
NO. If you wear out emotionally and let your home go to foreclosure, it stays on your credit bureau FOREVER! It can affect a career choice, (fiduciary, banker, military, security clearance),
it will torpedo your credit for 10 years and you have to revisit it every time you are asked, "have you ever been foreclosed on?" UGH.
A short sale however, under some circumstances, will let you repurchase in 2 years, your credit score is less adversely impacted and you are relieved of stress as well.

2. No one will show my short sale home.
WRONG. While uninformed agents, or agents without the confidence to handle a short sale won't show it, savvy agents that are informed and competent will be eager to show your listing, especially one listed by a CDPE designated agent. (see http://www.cdpe.com/) These agents know how to get the sale done.

3. Anyone can sell a property short.
WRONG again. You must have a verifiable hardship to begin the process. I can tell you more about that and it's not straight forward, so call me for details. You may not think you can, but check first.

The terrain of real estate is changing daily. From a federal level, from the internal understanding of banks, investors are waking up, (not the purchasing investor, but the investors behind the loans that are defaulting) everyone is getting educated. Folks who brazenly put their flipped short sale resale on YouTube for all the world to see with a 60% profit have banks keeping prices higher. (Thanks guys, don't you know social media gets read by corporations too?)

Bottom line: IF YOU OR SOMEONE YOU KNOW IS SUFFERING from mortgage stress, have them call me. I lost my own vacation home to a short sale, so I understand that it can happen to anyone and it is PAINFUL. But the alternatives are worse. Open your mail, be fearless and call me! 831 515 1101. I can help.
Terry Ballantyne
Broker Associate
GRI~ CDPE
Sereno Group Real Estate
DRE#01257150

2010-04-18T11:05:00.000-07:00

New Homebuyer Tax Credit Update

These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011.

Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes.

Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.

These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer.

For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.

The State will allocate the tax credits on a first-come, first-served basis.

Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.

Taxpayers will not be eligible for either tax credit if any of the following apply:

The taxpayer was allowed a 2009 New Home Credit.
The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.

March Home Sale Results in Santa Cruz

2010-04-03T13:35:00.000-07:00

Only 4 homes closed escrow in March over the $1,000,000 mark, but 13 went pending, or are under contract, a great gain. 102 properties under the $1,000,000 market are under contract in March, another solid gain.

The statistics are skewed in the media because so many sales are short sales which can be 60-180 days under contract, but the buyers are making offers quickly and the best properties are in escrow in under 20 days in the $400,000-$650,000 market. That market is moving quickly.

If you are in distress, don't wait too long to market your property. Interest rates are starting to climb, and that inflationary cycle that has been looming is still out there. While distressed families often go into paralysis, you must keep your wits about you and reach out to your mortgage lender and your creditors. Make a realistic estimate of your chances for fiscal recovery and decide whether to hold 'em or fold 'em. Often the relief from the pressure gives you renewed energy for a do over.

Our society is struggling with a huge demographic shift right now. Countless workers are reviewing their opportunities, rethinking their options, and determining what the next chapter is going to look like. It won't look like the past, that ship has sailed. So much has changed, gone is the pay phone, film, video rental outlets, music stores, hotel keys, (remember those big plastic tags, "Drop in any mailbox, postage guaranteed"), letters, and countless other changes to our social fabric. Also, America is finally the salad bowl it always claimed to be with diversity in all sectors of the work force. The Baby Boomers are moving en mass to the golden years, leaving behind a generation much smaller and then comes the swell of the Boomlett kids, or Millennials.

This is a time to think creatively, don't be constrained by the past, look forward to what makes you feel valuable, what makes you feel like a contributor. Unshackle yourself from pre-conception, and look at the world as it is now. Find new ways, forge new trails. If you have to let your home go, so be it. It's sticks and mortar. The real value is the memories which are yours to keep. Go out and forge new ones. You are you, regardless of conditions.

2010-03-22T17:59:00.000-07:00

Real Estate Outlook: Freddie Mac Predicts Positive Recoveryby Kenneth R. Harney

Could we be heading for a "double dip" in the economy, taking us back into recession, as some Wall Street analysts predict? Could the Federal Reserve's planned departure from the mortgage securities market send home loan rates spiking upward, and knock the wind out of the housing recovery? Those are scary questions.
But last week one of the country's most accurate economic and housing forecasters came out with projections for the balance of the year that basically said: None of that scary stuff is going to happen.
Frank Nothaft, chief economist for mortgage investor Freddie Mac, sees what he calls "a very steady, quarter to quarter growth" pattern ahead, with no "double-dip" mini-recession hurting real estate, and only minor increases in interest rates.
Notehalf's econometric models point to expansion of the U.S. economy in the 3.3 to 3.5 percent range, as measured by the Gross Domestic Product (or GDP) through 2011. In economic terms, that's sort of a "not too hot, not too cold" scenario that helps keep interest rates low and inflation under control.
Nothaft forecasts average 30-year mortgage rates around 5.6 percent by the end of the year - up from today's rates but still in historically low territory and not high enough to seriously constrain housing demand or sales.
In fact, Nothaft expects total housing sales - that's existing resales plus sales of newly constructed homes -- to be at a nearly 6 million annual rate by the end of 2010, and even higher in 2011.
One sobering area in his projections, however, is prices. On a national average basic, his models point to a pattern of relatively flat prices for the coming year as the result of continuing high foreclosures, short sales and other distress situations in parts of central California, Nevada, Arizona and Florida.
But Nothaft emphasized in an interview with Realty Times last week that "the national numbers tend to obscure what's happening in regional and local markets" that are not heavily burdened with distress sales, and where underlying economic demand already is producing higher prices and multiple bids on homes for sales.
************************************************
We here on the coast are seeing things stabilize. Inventory is down, prices are holding. In Santa Clara county the higher end is beginning to move and we tend to follow them by a number of months. The worst seems to be behind us and if Bloom Energy or Bright Source takes off, go team! The big engine in the Silicon Valley will be roaring again.

The 4 Things You Need To Buy and 2 You Don't

2010-03-10T13:11:00.000-08:00

Are You Ready to Buy a House?
Four Things you need to buy a home, and two things you don't
By frontdoor.com Published: 11/01/2007
Sure, owning your own home is the American dream. It's also the largest investment most of us will ever make, so go into it knowing what you'll need when you go from tenant to owner -- and what you won't need.
Here's what you'll need:
1. Enough money to make monthly mortgage payments. Duh! If a mortgage payment will bust your budget, you can't get rid of your landlord yet. Use our mortgage calculator to estimate your monthly payment.
2. Enough income to pay property taxes and homeowner's insurance. The mortgage isn't the only cost you'll have each month. You also have to pay taxes and insurance. If you can't make those payments, say bye-bye to the house.
3. The ability to maintain the property.You must keep a home in good repair or it will lose its value and you'll lose money. You can do the work yourself or pay someone to do it. Either way, you can't ignore the peeling paint and the window that won't close like you did when you were a tenant.
4. A decent credit record. If you have lots of late payments, have declared bankruptcy or left old debts unpaid, it's harder to get a mortgage. And if you do get one, your bad credit record will make you pay a much higher interest rate.
Here's what you won't need:
1. A big down payment.It's best to make a big fat down payment so you can skip paying private mortgage insurance and lower your monthly payments, but you can buy a house for almost nothing down.
2. ExperienceIn most major cities, real estate companies hold home-buyer education classes for first-timers. Go, even if you have no immediate plans to buy. The information you get can lead you to other sources of help. And of course, we'll help you right here on FrontDoor.com Real Estate.
Courtesy of Frontdoor by HGTV

Quick Update on Foreclosures

2010-02-12T10:06:00.000-08:00

Good news per DataQuick Research:

The number of California homes entering the foreclosure process declined again during fourth quarter 2009 amid signs that the worst may be over in hard-hit entry-level markets, while slowly spreading to more expensive neighborhoods. There are mixed signals for 2010: It's unclear how much of the drop in mortgage defaults is due to shifting market conditions, and how much is the result of changing foreclosure policies among lenders and loan servicers, a real estate information service reported.

NODs reached an all-time high in first-quarter 2009 of 135,431, a number that was inflated by activity put off from the prior four months. In the second quarter of last year, NODs totaled 124,562. The low of recent years was in the third quarter of 2004 at 12,417, when housing market annual appreciation rates were around 20 percent.

"Clearly, many lenders and servicers have concluded that the traditional foreclosure process isn't necessarily the best way to process market distress, and that losses may be mitigated with so-called short sales or when loan terms are renegotiated with homeowners," said John Walsh, DataQuick president.

While many of the loans that went into default during fourth quarter 2009 were originated in early 2007, the median origination month for last quarter's defaulted loans was July 2006, the same month as during the prior three quarters. The median origination month during the last quarter of 2008 was June 2006. This means the foreclosure process has moved forward through one month of bad loans during the past 12 months.
"Mid 2006 was clearly the worst of the 'loans gone wild' period and it's taking a long time to work through them. We're also watching foreclosure activity start to move into more established mid-level and high-end neighborhoods. Homeowners there were able to make their payments longer than homeowners in entry-level neighborhoods, but because of the recession and job losses, that's changing. Foreclosure activity is a lagging indicator of distress," Walsh said.

The state's most affordable sub-markets, which represent 25 percent of the state's housing stock, accounted for 52.0 percent of all default activity a year ago. In fourth-quarter 2009 that fell to 34.9 percent.

On primary mortgages, California homeowners were a median five months behind on their payments when the lender filed the NOD. The borrowers owed a median $13,510 on a median $325,818 mortgage.

On home equity loans and lines of credit in default, borrowers owed a median $3,939 on a median $62,965 credit line. However the amount of the credit line that was actually in use cannot be determined from public records.

Estate Tax and You

2010-02-07T21:06:00.000-08:00

It is unfortunate that the U.S. Senate has been unable to forge a resolution to the repeal of the estate and generation skipping tax which took effect on January 1st. These changes last one year and then in 2011 and then we go back to a death tax with only a $1.0 million exemption per taxpayer. The big question is whether Congress will pass legislation during 2010 which will be retroactive to January 1, 1010. Who knows?

The back story:
In the 2001 Tax Act, many changes were made to the transfer tax system, including increasing the estate and generation skipping (GST) transfer tax system gradually to $3.5 million as of 2009, lowering the top rate for all three transfer tax systems to 45%, eliminating the state death tax credit and ultimately repealing the state and GST taxes (but not the gift tax), and thereafter lowering the top gift tax rate to 35% and eliminating of the "step up" in basis under section 1014e of the IRS code, so a decedent's basis will 'carryover' to those who inherit his or her property.

Stay tuned for the what's coming!

Foreclosure Update
Distressed properties continue to dominate the market. Fierce competition is at hand for properties in Santa Cruz county between $400,000 and $650,000. Have your financials, verification of funds, loan approval and pay stubs up to date and be prepared to battle. We are returning home values to more realistic levels.. It is bloody and brutal and lives are being upended. Yes, the banks led us to the slaughter but the good news is hopefully you will not have to be a slave to your mortgage payment. A home will once again become a home, and no longer an ATM machine. Takes a lot of pressure off. But for now, the stories are painful, the stress is enormous and many people will be starting over. It's okay. You are not alone. And the future may be a much better ratio of mortgage to take home pay. Keep fighting for your dreams.

Luxury Market Update
In the last three months 11 properties sold at over $1 million dollars. The winner was a lovely newer home in Rio Del Mar that closed at $3,500,000. But the bulk of the sales were under $2 million with a couple of exceptions. 8 of the 11 homes had market times over 100 days, while the remaining 3 sold in less than a month. Let's see what spring does to this market,
and will over heating in the valley drive those sales come summer?

Selling Hints
Nothing is more important than clearing clutter, you must be able to see the floor, with only the legs of furniture on it. Cleanliness is next to Godliness, or whatever higher power you admire,
and pet or smoking odors are the kiss of death. (Ask a truthful friend if your house is stinky)
Keep the curtains open, light is the most requested quality home buyers ask for. If you can afford it, put in a skylight. You'll get your money back, or you'll get your money from the house because it may mean the difference between selling or not.

Ok, keep the faith, get a great agent that cares about you, understands technology and has seen the inventory.

Peace and competence,

Terry

Why In The World Buy a House? Because you have D needs!

2010-01-21T14:42:00.000-08:00

D Needs? yes, according to Abraham Maslow's hierarchy of needs, housing pretty much scratches every itch. From the basic need for shelter, air and food and water our needs progress up. As soon as one need is satisfied, another need arises. And if you are deprived of a need, you default back to getting that one satisfied, pronto. The people in Haiti are now preoccupied with shelter and food. Any higher needs are on hold until that basic need is fulfilled. And so we live our lives. That is why 'noblesse oblige' works. Those who come on line with the baser needs in place provided by parents and family money, can work on self actualization sooner. Their bellies are full. They can contribute to others moving up their own pyramid. The baser needs referred to as D needs or deficiency needs, and the higher ranks a B needs. Here's the list:

1. Physiological Needs (lizard brain) {amygdala}
These include the most basic needs that are vital to survival, such as the need for water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.
2. Security Needs
These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health insurance, safe neighborhoods and shelter from the environment.
3. Social Needs (dog brain) (limbic system)
These include needs for belonging, love and affection. Maslow considered these needs to be less basic than physiological and security needs. Relationships such as friendships, romantic attachments and families help fulfill this need for companionship and acceptance, as does involvement in social, community or religious groups.
4. Esteem Needs (ah, human mind)
After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment.
5. Self-actualizing Needs
This is the highest level of Maslow’s hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others and interested fulfilling their potential.

But back to houses.

Certainly if you are choking, starving, dehydrated or sleep deprived, nothing captures your attention except the satisfaction of that need. But if you are reading this , we can go on to Need #2. Houses answer the call for shelter, they answer need #2, the need for security and certainty. Coming home to a nice warm house in a good welcoming neighborhood, fits #2.

How about #3? Social needs. A house fulfills the desire to belong: belong to a neighborhood, a country club, a street of party givers, a community. A home is the base unit of Need #3.

#4. Okay, here's the trophy house buyer.. Number 4 is about self esteem.. Reflected glory. The big dog neighborhood you made it into. Wine cellars, pools, built in aquariums, media rooms. Oh yeah baby, number 4 is all about real estate and home ownership.

And last? The downsizer.. He is all done with climbing the ladder, pandering to others opinions, keeping up with the Jones'. He like his port, his hybrid camellias and a simple life. Need #5 says, "I am the master of my fate and the captain of my soul" (Invictus)

So don't fight it. If you have a steady job, don't overbuy, pick a great location, know your lender and the terms of the loan, find a Realtor that will steer you away from an impulsive or misguided choice, go ahead.. move up the pyramid, you have needs. Now some facts:

From Dataquick: An increase from November to December is normal for the season. Last month’s year-over-year increase was the 16th in a row. The sales count was the highest for a December since 8,372 homes were sold in December 2006. Sales for Decembers since 1988 have ranged from 5,065 in 2007 to 12,349 in 2003, while the average is 8,762.

The rich are doing fine according to American Express: AmEx dominates the market for affluent customers, with individual card purchases averaging $9,392 in 2008, compared with $2,699 for San Francisco-based Visa Inc. and $2,269 for Purchase, New York-based MasterCard Inc., AmEx said in August, citing company reports.
At year end, AmEx had lowest loss rates among the six- biggest U.S. credit-card issuers, including JPMorgan Chase & Co. and Bank of America Corp. according to Bloomberg.

I think American Express also showed wisdom and vision in dealing with long time clients in trouble with the recession by cutting interest rates, allowing principle reductions and maintaining relationships. Those prudent customer service moves are paying handsomely.

That's the news this week in Real Estate.

Peace and competence,

Terry

First Things First, Your Safety Online

2010-01-14T17:21:00.001-08:00

Here are some tips to keep you safe on line. While the world is becoming increasingly transparent, you are still in charge of your privacy levels.

First:
Be wary of quizzes and games. They’re fun, and seeing how you stack up against your friends is a big ego boost, but it’s amazing the amount of information they can gather as part of their terms of service.

When you sign up for a quiz, typically a notice pops up to declare that interacting with the application requires opening access to information such as: "access will let [the application] pull your profile information, photos, your friends' info, and other content that it requires to work." Pretty broad rights.

Be sure to use the privacy options on Facebook. They provide very granular privacy tools that are useful to spend some time reviewing. Start by dividing your friends into separate lists. You might consider creating lists for ‘work’, ‘good friends’, ‘family’, ‘clients’, etc.Once you’ve created your lists, go through your friends and add them to the appropriate list. Friends can be on more than one list or none of them. Your friends are not able to see how they have been sorted.

Once you have sorted your friends, click on settings in the upper right corner and then on privacy settings. There are many areas of Facebook where you can control what you chose to share. Let’s start with Profile. You can edit many portions of your information here so that it is visible from everyone to no one but yourself. If you have used the list function to sort your friends you can also exclude certain lists from having access. So if you don’t want your coworkers to see photos that your friends might post, you could exclude everyone you listed in ‘work’. The granularity is pretty extreme and appears to be getting even more so. Facebook also give you a link on the page to view your profile as one of your friends will see it. This is a nice way to test if your changes are going to have the desired effect. Here is a quick YouTube video that shows how to set up lists and set privacy.

I want to spare you from the experience of the person that bashed their employer on Facebook, forgetting they were in their network... "your fired" posted on their wall right after they finished their rant!

Peace and competence,
Terry

2010 The Market Starts to Quiver

2010-01-13T18:17:00.000-08:00

Historically, January in real estate is a void. People recovering from the holidays, travel, and writing resolutions. But this January feels a little like 2002. Multiple offers, a bit of an urgency about getting in on the foreclosures with a loan and some cheap money. Here's how cheap it is:

At 4.87% your house payment of $2116.83 will buy a $400,000 loan amount. at 7.875% that same payment buys a $322,231 loan...whoa. That's a difference of a 2 bedroom or a 3 bedroom. Don't overlook this advantage! Rates will rise.

The crystal ball is still milky, we have rumors of the double dip and just hoping that the banks are getting their act together, but the pent up anxiety of the American consumer is wearing thin and people are anxious to exhale and feel like life is normal again.

Watch here for easy to digest, factual information on real estate in Santa Cruz County.