Here are a few statistics showing how strong the San Francisco Real Estate Market is.

• More than 1 million square feet of office space was signed by tech tenants this year alone, the fastest quarterly take-up of space in more than a decade. Seventy-five percent of first-quarter leasing was to tech companies, and the frenzy is unlikely to slow down soon. At least a half-dozen companies like Yelp, Salesforce and Square are known to be still shopping for big chunks of space.
• The 415 area code, which includes San Francisco and Marin County, was the destination for $3 billion in venture capital investment last year. That exceeded the amount invested in the South Bay, though it trailed the Peninsula, according to National Venture Capital Association
• San Francisco in February had the third-lowest unemployment rate in the state and Bay Area at 8 percent, trailing only Marin and San Mateo counties. For the last three years, the city has had the highest number of job listings at “high growth” startup companies in the region, according to jobs site StartUpHire. That’s nearly 40 percent of the Bay Area’s 2011 total, which has led the state that has led the country.
• Apartment rents have shot up 14 percent in the last year, prompting developers to dust off plans for 3,000 new units now under construction. The average cost of a one-bedroom was $2,330 in 2011, up from $2,010 in 2009, according to RealFacts.

2.    Making verbal agreements
If you’re asked to sign a document containing instructions contrary to your verbal agreements-don’t! For example, the seller verbally agrees to include the washing machine in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. More importantly, your state may require that contracts for the sale of real property be in writing. Do not expect oral agreements to be enforceable.

3.    Choosing a lender just because they have the lowest rate
While the rate is important, consider the total cost of your loan including the APR, loan fees, discount and origination points. When receiving a quote from a lender, insist that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan). The cost of the mortgage, however, shouldn’t be your only criterion. Have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promised. If in the final hours of the transaction you determine that the lender has suddenly increased their profit margin at your expense, you won’t have time to start again with a different lender. Ask family and friends for referrals. One should always interview prospective mortgage companies.

4.    Not getting a written Good Faith Estimate of closing costs
Within three business days after the lender receives your loan application, you must receive a written statement of fees associated with the transaction. This is both the law and the best way to determine what you’ll pay for your loan. Bring the Good Faith Estimate (GFE) with you when you sign loan documents. You should not be expected to pay fees which are substantially different from those contained in your GFE.

5.    Not getting a rate lock in writing
When a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and program details.

6.    Using a dual agent – i.e., an agent who represents the buyer and the seller in the same transaction.
Buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price. In the standard real estate transaction, the seller pays the real estate commission. When an agent represents both buyer and seller, the agent can tend to negotiate more vigorously on behalf of the seller. As a buyer, you’re better off having an agent representing you exclusively. The only time you should consider a dual agent is when you get a price break. In that case, proceed cautiously and do your homework!

7.    Buying a home without professional inspections
Unless you’re buying a new home with warranties on most equipment, it’s highly recommended that you get property, roof and termite inspections. This way you’ll know what you are buying. Inspection reports are great negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends that certain repairs be done, the seller is more likely to agree to do them.
If the seller agrees to make repairs, have your inspector verify that they are done prior to close of escrow. Do not assume that everything was done as promised.

8.    Not shopping for home insurance until you are ready to close
Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around.

9.    Signing documents without reading them
Whenever possible, review in advance the documents you’ll be signing. (Even though some specifics of your transaction may not be known early in the transaction, the documents you’ll sign are standard forms and are available for review.) It’s unlikely that you’ll have sufficient time to read all the documents during the closing appointment.

10.  Not allowing for delays in the transaction
In a perfect world, all real estate transactions are close on time. In the world we live in, transactions are often delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is inconvenienced and angry. Will you be thrown out? Will you have to find interim housing for a week or more? The eviction process takes a little time, so the Sheriff won’t immediately remove you, but this type of stress-producing episode can be avoided. How? Terminate your lease one week after your real estate transaction is scheduled to close. That way, if there is a delay in closing your transaction, you have some leeway. This approach might cost a little more, then again, it might not.

Not too long ago we blogged about legendary singer Jerry Garcia’s Nicasio estate coming to the market.  The listing generated quite a buzz, but it appears that it never did find a new owner.

This spring, the property hit the MLS again, asking $3.995 million, the same price it was listed for back in fall of 2010.  Now, 6 weeks later, it’s getting more aggressive in getting sold.  The price was cut by almost 10%, to its current asking price of $3.595 million.

The Nicasio estate is not too far from George Lucas’ Skywalker Ranch, and where recently plans for his Grady Ranch studio were axed when NIMBYs in nearby Lucas Valley Estates vowed to litigate.  The recent price cut may be needed now that Lucas is working with the Marin Community Foundation on exploring low income housing options for the land.

The property is surrounded by open space and is self sufficient, with a deep well for water, large propane tanks for gas and a veggie garden. The main residence is 7000 +square feet, with 5 bedrooms and 7 baths.  A separate 1500 square foot artist studio also resides on the nearly 11 acres.

For all you Grateful Dead fans who missed out on the first go around, here’s your second chance.  And it’s not too far away from Terrapin Crossings, the new restaurant and music venue that Phil Lesh recently opened in San Rafael.

Simply put, bad news on the economy can be good news for interest rates, and JPMorgan’s headache – plus uncertainly in Europe and talk of tough new financial regulations – may cause mortgage rates to fall significantly in the coming weeks, presenting an exceptional opportunity for homebuyers and current borrowers thinking about refinancing a mortgage.

Here’s why: Mortgage rates are closely aligned with the yield on 10-year U.S. Treasury bonds, and the yield falls as more bonds get bought up by investors.

As the trading practices at JPMorgan get a public airing, investors may very well decide that securities are a bad investment right now and turn to Treasurys. That, in turn, would drive down yields, and mortgage rates with them.

We keep a close eye on Wall Street as well as Main Street, and we encourage buyers and sellers – and current borrowers, too – to pay close attention to Treasury yields and mortgage rates in the weeks ahead.

We’re ready to help, and so are our partners at Mortgage Services Professionals.

Strong buyer demand and low inventory led to multiple offers and higher prices for many homes, but sales at the lower end of the market have outpaced higher-end sales, preventing the median price from rising. Investors and first-time buyers, are still buying the under-half-a-million-dollar properties more than any other priced properties.

The median Marin single-family home price in April was $760,000, virtually unchanged from $761,600 in the same month of 2011. The Marin county recorded 213 sales during the month, up more than 22% from a year earlier.

The number of houses and condos that entered a contract for a pending sale rose to a total of 326 in April, up more than 42% percent from 230 in the same month of 2011 and the highest April figure since 2005.

The number of listings on the market in April rose to 622, up 8% from 573 in March but still down by almost half from 1,173 in April 2011. Marin’s relatively low inventory in recent months has fueled bidding wars for some properties that have pushed prices above the asking amount. There seems to be a lot of listings coming on but they are selling quickly.

With spring traditionally the busiest season for home sales, the summer and fall could give clues as to the health of Marin’s real estate market. If more sellers list their houses in the summer, it could “soften” some of the upward price pressure.

Right now the market is extremely hot. Give Jimmy a call to discuss your future plans, whether buying or selling.

1. Organize all your paperwork: Make a list of things in your house that may need repair, or any changes you have made. It really helps your agent when it comes to talking to prospective buyers, or their agents. Also any upgrades you may have made, did you do the bathroom, kitchen? Have you made any changes to the water heater, roof, windows? Also if any of the upgrades you have made, include a warrenty, see if they are transferable to a new owner.

2. Declutter: You should get rid of things you may not need on a day to day basis. If you start early you will not be rushed when it comes to getting your house on the market. Remove large items from counter in the kitchen, this helps it look open and counter space will shine through. Sort your items and take down personal items, it helps your prospective buyers be able to visualize their own personal items in their places. Have a yard sale, this may help you reduce the items you have, and give you a little bit of pocket change.

3. Clean! Clean! Clean!: Dirty homes are not best sellers. Now is the time to spruce up paint, and give your home a good cleaning before your list. Maybe refresh your carpets, clean wood flooring, tidy up all the bathrooms with a nuetral scent airfreshner. Just a little shine and clean can go a long way when it comes to buyers eyes.

4. Get an PRE-Inspection: This is always a good idea, it will cost a bit of money, but having a pre-sale inspection can help identify problem areas that even you may not know of. If there are things that you may not know about, it can severly affect your listing price, and a pre-inspection can help you stop any surprises later.

5. Make Repairs or Get Estimates: The pre-inspection may leave you with a repair list, keep in mind that buyers will also have that inspection and will find these large or small problems. Head them off at the pass and do some fixing. For the large repairs get estimates, that will give you barganing power on the negotianting table.

6. Start Staging: A well dressed home can help with your bottome line! Ask your agent for some suggestions, but any prepping you can do will be a big improvement. Staging can simply be reagranging furniture and removing clutter. Make sure to not forget the outside, curb apeal is always a nice touch. Clean up landscaping, plant some seasonal flowers to give it color, or touch up some paint.

This list will help you be pro-active once you have decided to list your home. Just start with these first steps towards a sucessful sale

If you should have any questions before listing, or would like some help or suggestions on the above list, drop me a line..

“The first offer is always your best offer.”

This isn’t true in every situation, but there are reasons why agents believe this, and why sellers either accept the first offer or at least give it serious consideration. In Marin, the first offer is critical due to the high levels of competition among buyers competing for a house. This is the result of low inventory.

Get in the buyer’s head

Understanding why the first offer is usually the one you should accept, consider the buyer and the journey he or she’s on. Buyers in the real estate market normally begin by dipping their feet into the water. They generally go to a few open houses, check out prices online, and start to do their homework.

From there, buyers begin to get more serious. They may start going on private, second or third showings with their agent. They really start to get engaged in the process. They become “the real dealer”— a buyer who is completely in the game, approved for amortgage, and actively engaged with their mortgage lender or broker. Maybe they’ve even written an offer or two.

Real dealers are often the ones who write the first offer a seller receives on a property. And that’s why their offers should be taken seriously! Real dealers know about new listings within hours of it going online. Or, since they are so engaged with their agent at this point, the agent may spot it first and send them a text or email.

This buyer will want to see the property ASAP. Since they’re so familiar with the market, they’ll be able to tell once they step foot inside if it will work for them, if it’s priced right, if it shows well, and if it’s in line with present or past comparable sales. If the property meets their criteria, the real dealer, armed with all their knowledge and motivation, will make an offer.

The real dealer

Their offer may not come in within days of a property going on the market. But it will come from an informed buyer who is knowledgeable of the market. If a home is priced too high and a month or two goes by without an offer, it will be the real deal buyer who has been watching the listing and waiting to see how the market responds. If they note that there aren’t any offers on it and there is no activity after some time, the real dealer will come in with a low offer, which actually may be a good offer, on the seller’s home.

While you may see it as an insulting “low ball” offer coming out of left field, you should still look closely at this offer. Who is the buyer? How long have they been looking? Have they written other offers nearby? Are they working with a good local agent? Does the offer come with a pre-approval letter? Is this offer actually a number that is close to the number your real estate agent initially suggested?

As hard as it may seem to contemplate an offer much lower than your asking price, serious sellers should look at all the signs leading up to it and consider if this is the offer to accept. Trust your agent. And even better, trust the phrase, “The first offer is always your best offer.”

As of Thursday, according to Freddie Mac’s weekly survey, the average rate on a 30-year loan was 3.83 percent, down from 4.63 percent a year ago, setting a record low.

According to financial planners, homeowners considering refinancing first should delve into their financial goals, specifically the length of time they plan to live in the home.

Some homeowners decide it makes more sense to stay with their current mortgage, especially if the savings are small or they plan to move within a year or two.  According to one financial planner, when homeowners refinance, they’re not building equity; they’re starting at the beginning of the amortization tables.

Amortization schedules work like this: In the first few years, almost all of the payment goes toward interest, so the longer the homeowner has the loan, the more is put toward the principal.

Those who refinanced in the last year or two don’t have to consider amortization tables, but they do need to know their equity position – and when refinancing would begin to pay off.

To calculate that, start with a rundown of all the closing costs, then divide the closing costs by the amount expected to be saved on each monthly payment.

Depending on the lender, most homeowners likely need to have at least 20 percent equity, and maybe a little more, if they want to wrap closing costs into the new mortgage.

Marin County, like so many Bay Area counties, is experiencing an extreme lack of homes for sale. Multiple offers are again the norm, and buyers are frustrated. Buyers are out there in droves because of continued low interest rates and the feeling that the bottom has finally been reached.

In Marin County, there are almost half as many homes and condos for sale as there were at this time last year, and the number of homes under contract is up by a third.

So why is there such a lack of inventory when it’s finally become a sellers’ market again?

My feeling is that sellers are waiting for the prices to go back up to the inflated bubble prices that we saw from 2005 to 2007. But those prices couldn’t sustain themselves then, nor can they now. What most experts agree upon is that a healthy home value appreciation should result in around 2 percent annual gain. If sellers are waiting for the height of the market pricing again, they may have to wait it out for a number of years.

Smart sellers should consider that there are so many buyers out there, the chance of selling your home now is significantly greater than if there were more homes to choose from, especially if they have a house that has some particulars that make it a bit different.