Who's at Most Risk from a Bursting Bubble?

1. Home Owners with Little Equity

2. Home Owners with Adjustable Rate Mortgages

3. Anyone Who Must Move - If you have good equity in the house you certainly have the ability of selling it and moving on. Home owners who have high equity after living in a home for some time might be sorry they didn't sell when prices were high, but they can typically sell without a loss. Home owners who made a hefty downpayment, bu bought during bubble growth, will take a hit if they can't wait for values to come back up.

Common Sense Bubble Tactics
Keep your overall debt load as low as possible to help you manage an unplanned move
Use equity funds to increase your home's value, not buy luxury items Try to buy a home with good resale potential. Pay attention to your local market. Watch sales trends and read what your local and regional experts have to say about a potential real estate bubble in your area, but keep in mind that even the experts don't agree on where, when--or if--the bubble will burst. If it does, just hang in there, because over time real estate is a great investment. Prices will rise again.

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Consumers demand real estate agents who embrace innovation

The role of the real estate agent is changing from the keeper of the data to a strategist, psychologist and even more of an über salesperson. Industry analysts and executives said there are still agents who are afraid of and unfamiliar with technology, and eventually, this could hurt their business.
``There are some Realtors today who wouldn't use e-mail if they didn't have to,'' said Gregg Larson, president of Clareity Consulting in Scottsdale, Ariz. ``Your average consumer was more tech-enabled and tech-literate than the average Realtor a few years ago, and that creates an imbalance. . . . But recently there has been a lot more investment in technology.''
As more real estate companies consolidate and become bigger giants, they tend to invest in more technology, Larson said. Still, according to the California Association of Realtors, as of late last year, only 45 percent of their Realtors surveyed used e-mail as their primary form of communication with clients.
``It's as if an agent picked you up to see a home in a stage coach and they said, `I'm very automobile illiterate,' '' said Marc Davison, founder of VREO Software in San Luis Obispo, a developer of real estate systems, software, services and tablet PCs.
But the Realtors who are using technology are finding that they have gained an edge in a competitive market, especially in the Bay Area, where there is a huge influx of new realtors, many coming from the technology industry.

Source -Mercury News

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Bay Area Real Estate - A Risky Business

For years, real estate has been one of the best investments in the Bay Area, but some experts are saying it's now becoming a risky business.

A study released Thursday says homeownership in California is at its highest level since the 1960s -- but in large part because people are taking more and more risks to get there. The Public Policy Institute of California says families are taking on enormous debt, skipping down payments, choosing interest-only or adjustable-rate mortgages, and signing up for 40-year loans. Many couldn't afford to buy without such measures.

According to the report, over half of people who bought a home in California in the past two years are ignoring federal guidelines and sinking more than 30% of their income into mortgages. Twenty percent are spending more than half their income.

The gamble has paid off for many. In just the past three years, local home prices have shot up 47%, which helps explain why buyers are willing to pay over the asking price. We saw a modest two-bedroom home in San Mateo Thursday that sold for $100,000 over the price is was listed for.

Broker Bill Mott has been in the business for 30 years. He says the risks could backfire if prices go down, but they don't have to."

As long as they don't sell, they'll be fine," he said. "If they keep the property, then it's their home and it'll be fine. Because eventually even if it stops or slows down or stops appreciating it'll be only a cycle again. It'll start appreciating again. It has to.

"The median prices for a Bay Area home stands at $501,000.

Source -CBS5

Labels: bay area ral estate school, Bay area real estate, California real estate, california real estate license school

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Steps To Buying A Home

Here are few pointers when buying a home ...

Step 1 - Get Your Finances in Order
Step 2 - Get Familiar with the Mortgage Industry
Step 3 - Get Pre-Approved for a Mortgage
Step 4 - Determine Your Wants and Needs
Step 5 - Learn to Work with Real Estate Agents
Step 6 - Start Searching for a Home
Step 7 - Handle Pre-Offer Tasks
Step 8 - Make an Offer
Step 9 - Home Inspections and Other Tests
Step 10 - Avoiding and Correcting Last Minute Problems
Step 11 - You're on the Way to Closing

Source- about.com

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New Rules For Real Estate Agent

Under a new law many Vermont real estate agents will have to go back to real estate school. Before getting a real estate license people will have to take a 40 hour course that wasn't required before. Also people who let their real estate license lapse for more than 5 years will have to take a new real estate license exam.
The requirements are designed to better protect people who want to buy a home.
"The change is a great change because it brings Vermont up in line with the rest of the country. We have traditionally lagged behind other states with real estate in our educational requirements and the real estate profession has really gotten pretty complex. The real estate licensing exam reflects the new changes in law," explains Deb Markowitz, D-Vt. Secretary of State.
The Real Estate Commission and Vermont Association of Realtors both support the changes.

Source- Channel 3 News

Labels: California real estate, real esate agent, Real Estate School

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Questions To Ask When Buying A Home

Below are some questions to ask when buying a home ... if you think there is some that could be added to the list below, please email me or put it in under comment sections

1. If you decide to work with an agent, will the agent help you compose your offer to purchase a home? If not, who does help?

2. If the agent uses fill-in-the-blank forms, ask for a blank sample copy to take home and study.
What types of disclosures are sellers in your area required to give to buyers? Can the agent give you a sample copy of typical disclosures?

3. What types of home inspections are standard in your area? Are there other inspections that the agent recommends?

- How much do the inspections usually cost? Are they regarded as a buyer expense?
- When are inspections done?

4. Is a survey required for most transactions? If so, who typically pays for it, the buyer or the seller?

5. Who does the title search to verify that the deed is problem free, attorneys or a title company? What's the average cost for that service?

6. Who acts as settlement agent, the person who puts together final paperwork for you to sign? (attorney, title company personnel, real estate broker, other)?

7. Other than loan costs, what's the average total cost for other closing fees?
- Taxes, settlement agent fees, etc.

8. How long does it usually take to close on a home once an offer is accepted?

That's a good start. After you have the answers to those questions, you'll have a better feeling for the basic customs in your area.

Source -about.com

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San Diego, California Homes Continue To Be Third Most Expensive

Being one of the three most expensive markets in the U.S., San Diego is not even in the top ten as far as the rate of appreciation this past quarter, that means prices may be cooling slightly, but not necessarily for long, say local Realtors. The market in San Diego, California, still appears to be brisk, and there are still a large number of people shopping. Majority of homes in the North County that were once $300,000 a few years ago, now sell close to $500,000 which is about 15 percent annual increase.

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Zip Realty advises, "If you are a buyer thinking of purchasing, don't wait. There is no bubble, it doesn't exist, so it cannot burst. There is no time like the present. Get in now and pick up that equity for your future. You don't have money to put down or pay for closing cost, don't worry. With $0 down financing and the seller paying your closing costs, it is extremely easy to purchase a home. If you're a seller, you have picked up a great deal of equity. Is it time for you to also make a move? There is a buyer out there that would love your home, and is willing to pay a high market value for it."

Labels: California real estate, san diego, san diego real estate, san diego real estate school

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Home Sales Rise in California ... Million Dollar Homes !!!!

Am I missing the point, here I am listening to people complain about gas prices, real estate prices sky rocketing but if you look at the numbers, more million-dollar homes were sold in California last year than in the two previous years combined, a real estate information service reported.
A total of 33,107 Golden State homes sold for a million dollars or more last year. That was up 73.5 percent from 19,080 in 2003. The total was 13,871 in 2002, according to DataQuick Information Systems.

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Last year's surge was strongest during the second quarter when year-over-year sales were up 109.3 percent. During the year's final quarter, sales were up 61.0 percent.
It seems like people keep buying even if the price keeps going up, is it going to level at one point or no ?

Labels: California real estate, California real estate license, california real estate license school, home sales

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Office Real Estate Market Going Strong for the Ninth Consecutive Quarter

According to Colliers International which is a global partnership of independently owned commercial real estate firms. the national office market continued to make strides during the second quarter of 2005, The April through June period represented the ninth consecutive quarter of positive office market absorption.

Job creation stayed strong during the second quarter, including 'office using employment(1) during this three-month period," said Ross Moore, Vice President and National Director of Research for Colliers International. "This contributed to the continued health of the office market. We anticipate further growth in the third quarter and for the balance of 2005. Just a few office markets project a slowdown, with the vast majority forecasting demand to meet or surpass current levels."

Consistent with lower vacancy, rents showed very modest increases during the quarter. Downtown rents increased 1.1 percent while suburban rents increased only 0.2 percent. Office rents are not expected to demonstrate any meaningful increase during the remainder of 2005, although quickly improving market fundamentals increasingly suggest higher occupancy costs in 2006.

The Top Healthiest Office Markets in Q2:

Downtown:
CITY ABSORPTION (in square feet)
Boston ------------------------------- 551,000
Denver ------------------------------ 440,000
Fort Lauderdale --------------------- 172,000
Houston ----------------------------- 782,000
Miami ------------------------------- 145,000
New York Midtown (south) ---------- 1.1 million
Philadelphia ------------------------- 334,000
Sacramento ------------------------- 167,000
San Diego --------------------------- 155,000

Suburban:
Suburban Baltimore ------------------ 366,000
Suburban Boston --------------------- 907,000
Fairfield County, CT ------------------ 711,000
Suburban Fort Lauderdale ------------ 870,000
Suburban Philadelphia ---------------- 1 million
LA & Ventura County, CA ------------ 1.6 million
Suburban Miami --------------------- 689,000
Suburban Minneapolis ---------------- 583,000
Northern Virginia --------------------- 1.3 million
Suburban Tampa --------------------- 667,000
Suburban Sacramento----------------- 798,000
Suburban San Diego ------------------- 865,000
Suburban Seattle---------------------- 643,000
Silicon Valley --------------------------625,000
Orange County ------------------------ 2.4 million
Suburban Phoenix ---------------------1.7 million
Suburban Portland ---------------------709,000
Suburban Raleigh----------------------- Durham 616,000

Source: Colliers International

Labels: commercial real estate, commercial real estate firms

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