Why use an Agent? I'm pretty smart and I can find stuff on the internet.

I love this question because it's an opportunity to teach folks that they don't even know what they don't know.

Here's a great example that came up for me this week; I am also a writer and I was reading a fellow writer's blog. She just got a movie deal for one of her books and she was so excited. Here's what she wrote:


So we gave them two months. About a month later, I get a call from my lit-agent saying, really, more squeeing, that we're expecting an offer from The Weinstein Company! This was huge news because, beyond the obvious, Meryl was once Harvey Weinstein's right-hand gal, and the fact that they were reteaming on something meant they really wanted to get this done.

So I squeeed and squeeed and waited by my email for more details...and waited....and waited....and finally, like a week and a half later or something, we got the offer. I jumped up and down and squeeed some more and would have immediately accepted (because I am a writer, not an agent) but my agent is savvier than I am and prepared a counter-offer. (See, this is why agents are good things. Very good things. Because I would have squeeed forever and happily cashed whatever sum of money they shoved at me and called it a day.)

When you find the right property, you, my client, get so excited - dreaming about where you're going to put your cute little armoire - that the details of the deal become secondary - at least that's my experience in the last 20 years of helping people.

I am the same way! I remember when I had an accident on an outside terrace. The table we were sitting at blew over and my left hand was crushed. I required emergency surgery and had pins in my fingers then physical therapy. When I went to get re-imbursement, I had no idea what to ask for. So, I hired an attorney who charges 30% of the settlement. I thought, I am smart, I negotiate all day long, maybe I can save myself 30% of something. I thought about it overnight and hired him the next day. I had thought maybe I could get my expenses plus $20K ish for the hassle. My attorney negotiated a settlement of expenses plus $75K. After all was said and done - I more than doubled my money by hiring the attorney.

Now, I am not saying I'll make you double what your property is worth when I sell it but, I know that the value I bring to the table - in all areas of the deal, not just the money - far outweighs the fee I receive.

April Home Sales Up

Interesting article about the uptick in the nation wide market.
Locally, things are changing. The sales per day is increasing and the inventories are being reduced.

Mortgage rates have been ticking up since the first of the year with inflation worries.

All in all, property values are down - we've been buying $350K houses in San Jose! and $160K houses in Merced - that actually break even.

Also, still got investors in DallasForeclosureFinder.com - there is competition between bidders! So, the saavy investors are still there.

Treasury Chief Says Worst May Be Over - AOL Money & Finance

<cite>Treasury Chief Says Worst May Be Over - AOL Money & Finance</cite>: "

Treasury Chief Says Worst May Be OverBy JEANNINE AVERSA and MARTIN CRUTSINGER,APPosted: 2008-05-07 15:47:35Filed Under: Recession WatchWASHINGTON (May 7) - The worst of the credit crisis may have passed, Treasury Secretary Henry Paulson said Wednesday, while acknowledging that rising gas prices will blunt the effect of 130 million economic stimulus checks. He ruled out a second stimulus package for now.

"

Square Feet: California builders squinting at a market bottom, trade group says

<cite>Square Feet: California builders squinting at a market bottom, trade group says</cite>: "

California builders squinting at a market bottom, trade group saysSue McAllister01:49 PM on Thu, May 15, 2008topic: Economy Home buying Homebuildingrecent related posts: � Housing construction permits dwindled in March � California building industry has 'cautious optimism' for 2008; Bay Area prices 'dead flat,' perhaps masking marble upgrades galore � A home builder that saves your hand from scaldingSales of new homes in California dropped 49 percent in March compared to the same month in 2007, the California Building Industry Association reported today. But that decline was not as bad as February's year-over-year decline of 57 percent, which the trade group said provides 'mounting evidence that the bottom of the current housing cycle is near.'

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PMI is getting harder and harder to find

Got this notice this morning:

May Mortgage Insurance Changes

Due to rapid changes with the availability of Mortgage Insurance coverage, we have added a summary starting on page 5 of Private Mortgage Insurance (Doc 6102). This document has been updated to reflect the changes outlined below.

It's getting harder and harder to get PMI and most lenders have limited/eliminated their second mortgages.

There are still ways to make it happen but, if you are in the middle of a transaction, make sure your lender is on top of the (often) daily changes.

Have you lost a deposit or had a transaction fall through due to last minute underwriting changes?

Location Location Location

I was in a meeting this week when a friend came up and, in that hushed conspiratorial tone asked "How's Real Estate?"

"Gosh, I am busy!" I replied

She didn't know what to do. She literally just stared at me for about 3-4 seconds.

While it's true the money markets are off and it's a bit harder to get a loan than it used to be, It has been SO MUCH worse! It wasn't that long ago that you couldn't get a loan without excellent credit and a decent down payment that you worked really hard to earn.

Of course, that's before the speculators came into the market and took advantage of other people's cheap money. We only have ourselves to blame.

That being said, there are still some great markets in Silicon Valley. This week a friend made and offer on a $1.2M home in Santa Clara with Cupertino schools. They came in $50K over asking price and were out bid by $250K!

What's the market like in your neck of the world?

Yes on 98, No on 99

Today is my birthday - thank you - and I got a call from an old client first thing this morning. I am thinking, "what a great person to call me on my birthday". I pick up the phone and hear, "I have a voting question". Hmm, guess it's not all about me.

There are two eminent domain issues on the ballot. Both restrict eminent domain but there are a few differences. First, Prop 99 only "protects" owner occupied single family homes while 98 covers all property.

I live in a duplex and rent out the front unit. I own and occupy the place but my SFR neighbor would have more rights than me. That just doesn't make sense to me.

Second, Prop 98 doesn't allow "price setting" while 99 does.

Third, Prop 98 protects renters while 99 ignores them.

Property rights are property rights. It shouldn't matter whether it's a shopping center or a single family home. Property rights are one of the guiding tenets that make America great.