What makes San Bruno unique and why is it a great place to buy a home?
San Bruno is a city that offers the perfect balance for a home buyer, especially for new home buyers looking for their starter home. The location, the downtown scene, and the weather are all high points that recommend it!
The location of San Bruno, between San Francisco and Silicon Valley, gives any home buyer a convenient compromise for those couples who may be working areas, as many couples in the area do. Also, getting to downtown San Francisco is faster from San Bruno than from the Sunset District of SF because of the easy access to the 101 and 280 freeways!
San Bruno is also very close to SFO and has a friendly business climate. The class “A” office spaces have attracted companies such as Walmart.com, YouTube and United Airlines! Lastly, the northern part of San Bruno is considered the “end of the fog line” meaning you will have more warm and sunny days while living in San Bruno, as compared to many parts of San Francisco.
All of these things and more make San Bruno an amazing city to live in and a great place to buy a home, raise a family and work!
How is the housing market in San Bruno these days?
The housing market in San Bruno is recovering in the same manner as the rest of the peninsula, thankfully! It’s still strong for selling homes that are in good condition with competitive prices. There are also still homes that need some cosmetic upgrades, if you’re looking for a mild fixer upper!
Essentially these homes have become “stale” on the market due to faulty marketing techniques which gives a buyer the opportunity to find some really attractive deals! It helps when you work with a local agent who knows the area and inventory and is willing to dig a little to find these deals!
Is a Condominium Better than a Single Family Home?
The answer is it depends mostly on your needs. But, with condominiums, one must do more research and understand what is being bought (a community of multiple residences that share common area spaces) to determine if it really is better.
So, what’s important to look at when it comes to a condominium? First and foremost is to make sure that the Home Owners’ Association (HOA) is strong financially and management wise. The key is to read the HOA documents package from cover to cover and get some additional feedback from your real estate agent. Do a deep title search on the property to see if there are any liens or lawsuits.
Interview the property management company to see what they do, if there are many issues with late home owner dues, how much money is in the reserve fund, when was the last time they did a
reserve study, and what kind of insurance they having including liability, workman’s compensation, earthquake, etc.
Next, make sure you read the “Covenants and Conditions and Restrictions” package (CC+Rs) that is prepared and provided by law by the HOA. This package will reinforce your research. Additionally, it includes bylaws, Articles of Incorporation, the operating budget, reserve funding and schedule, insurance information, the minutes of the meetings and newsletters, memos, etc. You also might want to have an attorney that specializes in reviewing these documents read them and give you an opinion. It will be well worth the fee.
From first time homebuyers attracted to the affordability of a condo to the empty nester that is looking for hassle free living, a condominium is exactly the right answer. Additionally, some condominiums have amenities like 24-hour doorman service, pools, spas, gym facilities, etc. that provide extra benefits. Just make sure that you do your homework. You want to buy in a strong, well run, and adequately financed condominium.
Sometimes everything works out how you want it to!
Recently I worked with a client who was committed to finding the right property that she could afford and also fit into her long-term plans. When she came in looking for an investment property of multiple units, with low down payment, low monthly payments, and in a good rental market near San Francisco I thought that she may just be asking too much.
She interviewed a lot of people, asked questions, listened to their advice and did her own investigations and then, when she felt comfortable she acted decisively and heeded the advice of the professionals working for her. We were able to find her a great four-unit building with only a 3.5% down payment. And, believe it or not, the property even has a positive cash flow with her living for free in one of the units!
The market right now is so varied that even some of the most difficult to find situations have a chance to found. It’s important to know what you’re looking for and to recognize when you’re asking for too much, but always take a chance on finding just the right place because it happens!
What are three things buyers or sellers can do to make the transaction smoother?
There’s not any three particular things that can be done to make everything smoother as there are so many different parts of every transaction that need to be monitored. What does this mean? It means there is one specific thing in particular that needs to happen.
Buyers and Sellers need to find a Realtor® that they can trust and have confidence in. Listen to their advice because it comes from years of experience in the market.
I find the greatest obstacle to getting my clients the best terms a smooth transaction is building enough trust that they will listen to my advice.
10% down and not FHA!
Property type: Three-bedroom, two bath in Half Moon Bay
Appraised value: $585,000
Loan amount: $508,000
Loan type: 30yr fixed
Rate: 5%
Back story:
For a long time in this economy the only way to do a 10% down mortgage was through FHA. This loan makes the blog because it was the first loan we’ve done in a long while that was approved at 10% down outside of FHA!!
And, as always, it closed in less than 30 days!
Taking advantage of interest costs can change your situation!
Property type: Four-bedroom, five bath in Tiburon
Appraised value: $2,500,000
Loan amount: $420,000
Loan type: 5/1 ARM to 5/1 Interest Only
Rate: 3.875%
Back story:
The goal of this refinance was to be able to free more liquid cash on a monthly basis for my clients. Living on a fixed income in a hard economy can be difficult. My clients were facing some strict financial situations but by refinancing to an interest only mortgage at a lower rate my clients were able to make their fixed income stretch further and cover other important expenses!
For a lot of people, their home is their largest asset and refinancing can allow access to the equity in a home when it’s needed while maintaing the financial goals of the owners.
More on Tax Credits
Tax expenditures are spending programs disguised as tax cuts that are directed to “help” specific groups. They cost an estimated $1.1 trillion this year and are the largest single part of the federal budget. They equal nearly as much as the $1.3 trillion deficit. They range from subsidies for housing and healthcare as well as anti-poverty programs.
Let’s look at an example involving the Pentagon and how they purchase planes. Instead of a $1 billion check for a new plane, the Pentagon often gives a company like Boeing a $1 billion tax credit. It looks like we are saving $1 billion in spending and simultaneously reducing taxes by $1 billion. But, in reality, the economic consequences are exactly the same as if we had written a check. Doing it this way, however, makes it look like the Pentagon spent less money however.
Here are some details on the top tax credits.
The Top Four Tax Credits
Tax credits given to employees for employer paid health insurance ($177 billion)
Mortgage interest deductions ($104 billion)
The earned income tax credit, which is a direct payment program for the working poor ($57 billion)
Corporate Tax Credits
Special Blue Cross / Blue Shield deductions ($690 million)
Oil and gas credits to oil companies ($1.18 billion)
Credits to railroads for maintaining railroad tracks ($70 million)
Capital gain exclusions for small businesses ($170 million)
Tax Breaks for Social Programs
Tax incentives for the preservation of historic structures ($470 million)
Deductions for endangered species recovery programs ($20 million)
Deductions for charitable contributions– not including health and education ($43.8 billion)
Exclusion for foster care payments ($400 million)
Tax Breaks for General Items
Exclusion of reimbursed employee parking expenses ($3.1 billion)
Exclusion for employer provided transit passes ($530 million)
Tax Breaks for Select Groups
Exclusion for disability compensation and veteran death benefits ($4.37 billion)
Additional deductions for the elderly ($2.6 billion)
Credit for child care ($2.2 billion)
Special deduction for teacher expenses ($160 million)
Exclusion of parsonage allowances ($620 million)
The tax credits amount to quite a large number. Cutting them by just 1/3 would reduce the national debt significantly.
Sources: Office of Management and Budget; Joint Tax Committee
Fantastic! At long last San Mateo County communities will have single stream recycling available!
Great news! Recology will be the new service provider for garbage, recycling and compost pick up for San Mateo County residents. Under the current service, pick up of recyclables happens bi-monthly which means multiple bins fill up & sit at the side of our house. Residents also have to sort paper from metals/plastics and pick up of compostable food waste is not a provided service.
As a former San Francisco resident up until 2004, I’ve been sorely missing this type of compost/recycling program which SF has had in place for several years.
Full details here on Recology’s program including use of their bins. If you want to reduce your garbage bin size & save a little money each month, go to: http://www.recologysanmateocounty.com/single_family.htm by July 9th.
The new service will start January 3rd, 2011.
What You Should Know About Making an Offer on a Short Sale
First, what is a short sale? A short sale is a home that is sold for below what the current owner owes on the property. And, at the time of closing, the seller does not have the means to make up the shortage.
Now, here are some things that you should know.
It used to be that a short sale would take up to six months or longer to receive an approval. Now, due to programs
like Home Affordable Foreclosure Alternatives (HAFA), the average time is 90 days. Still, every lending institution is
different, so it is important that you have an understanding of timelines, documents that are needed, etc.. Also,
choose an agent that is familiar with the short sale process. Additionally, find out which banking institution is
involved in the negotiation and approval process. Have your agent work with the listing agent to find out what the
average turnaround time will be.
Make your best offer using comparable sold properties in the area over the last 3 months (longer than that does not
reflect the current market) and the appraisal that the bank has done. Lenders want to minimize their losses, so if
you make an unfair low offer, it will most likely be rejected. What the lender wants is a strong buyer and a decent
and fair offer.
In your offer, don’t count on asking for repairs or credits. You will probably have to take the property “as is”.
Know if you are competing in a negotiating or multiple offer market – it matters as to the price you will have to offer.
With multiple offers, the bank will usually pick the highest and best offer.
In the end, if you have the time and patience and understand how to bid, short sales can be a win-win situation.
