Donna is our latest satisfied customer!

My assistant Lilly and I recently closed on a home for Donna, an 85-year-old client. Donna lived in San Mateo many years ago before moving to Las Vegas to be closer to family.

It didn’t take long for Donna to realize that Vegas wasn’t her scene, so she moved back to San Mateo. Once there, she quickly learned that she’d been priced out of her little town, and needed to find a less expensive option.

So, Donna started exploring Concord! That’s where we met – at one of my listings. She told me she was looking for a white kitchen in a traditional rancher. A few months later, she found her dream home in Concord

I stopped by on Saturday before a hike with my dogs to give Donna the key and help her carry in a few items she brought over.  They would have loved to help too and I would love to help you – dogs are extra ;-).

 

Tax returns and your loan approval!

Our friend Jay Vorhees at JVM Lending came up with another relatable blog recently: Tax Transcripts and 4506-T forms. It generally explains how those forms work, and reminded me of an experience of my own. First, a summary of Jay’s blog:

Every time a lender gets a loan from a borrower, they also have to get the last two years of tax returns. This is why borrowers sign IRS Form 4506-T as part of their disclosures. It formally authorizes lenders to request tax transcripts, which then show the filer’s status and income information.

Lenders are required to request transcripts from the IRS before a borrower can (borrowers can only request them directly if the IRS reject’s a lender’s request). If there is a minor error between the 4506-T and the tax return, this rejection may occur, so it happens pretty often.

That covers the basics of how the 4506-T form works and the role it plays in a real estate transaction. It’s a more subtle part of the process, but can cause huge headaches when done incorrectly. Take, for example, my experience with a property at Madeira in Pleasant Hill last year.

I represented the seller, and the buyer had their lender in Oakland, with a Bank out of L.A. Unbeknownst to us, the bank was being bought out and the new bank was called Bank of Hope – yes, really. But it turned out to be the Bank of Hopelessness.

Abode, Advertising, Banking, Building, Buy, Buyer

Processes changed, the lender in Oakland was let go and nobody knew what they were doing. Communication was terrible. One of the balls that got dropped was getting the tax returns. We closed almost two weeks late and the only way this ended up closing at all is by the processor who I had been speaking with regarding other issues. They actually went down to the IRS office and got the tax returns. She went beyond what is required (and probably got tired of our phone calls), but my seller is an attorney and also made multiple phone calls as they had already purchased a new home that was about to close.

This is one of the best reasons to get fully underwritten before you start to write offers. If all the documentation is in upfront, there won’t be any surprises or delays once you get into contract. Selecting the right lender can be the difference between smooth sailing and dark nightmares.

Moving? Save a tree!

Are you planning to move soon? Already initiating that process? Then you know you’ll need an endless supply of cardboard boxes to get the job done!

According to RecycleSmart.org, the average home move requires 60 cardboard boxes, or more than half of a one-ton pine tree. So, make sure when you’re done with your move that you recycle those boxes in the proper can. Don’t leave them in the regular garbage can, and only compost them if they were food boxes with grease that can’t be recycled.

Cardboard can be recycled over and over again, and you can even leave tape and labels on them to make the process easier. If you really want to save space in that recycling bin, break down each box so they’re flat.

Again according to RecycleSmart.org, the average person moves 11 times, which is about six trees’ worth of boxes. If you recycle those, you can still get the job done and save a few trees while you’re at it!

For more info on recycling cardboard and to order a bigger recycling bin at no charge, visit www.RecycleSmart.org.

Congratulations to Mckenzie!

I recently closed a home for my client, Mckenzie. She currently lives in the city and will be moving to Clayton. Thus, we met at the Legion of Honor to see the Monet exhibit, celebrate her closing and give her the house key, as seen below.

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IMG_1020The tenant doesn’t leave for another six weeks so this was a great way to celebrate and she was very happy to have closed! The process became a bit stressful as the family wanted to use their local bank in the valley, and the parents were co-signing. However, this bank was primarily an AG bank and did not close on very many condos.

Buyers rarely understand at the onset what a difference a great lender can make and the lasting experience everyone involved will have. If it is a great experience, the impression is minimal, but when it is not so great, it can become one of your worst nightmares. This ultimately ended well because of the family’s relationship with the local bank, yet, we still needed an eight-day loan contingency extension (but only closed four days late).

If you want to be the next client who buys or sells a property with me, I will help you navigate the process to a successful close! Just reach out at www.kristinlanham.com or call me direct at (925) 899-7123.

Don’t hold your breath for another recession

According to an Inman.com article, Kevin Thorpe (Global Chief Economist at Cushman & Wakefield) says we are going to have a very long economic expansion.

At the National Association of Real Estate Editors conference, Thorpe said, “The U.S. will not be going into recessions anytime soon. Recessions don’t just happen. First, we need to see imbalances somewhere in the economy — too much credit, too much exuberance in any particular sector.”

A frequent speaker in the local real estate arena, Carol Rodini and some Bay Area economists agree that some changes Donald Trump’s Republican cabinet will make – redoing the tax code, trying to replace Obamacare, etc. – will be good for the economy.

Carol recently noted the top 10 tech companies in Silicon Valley are sitting on about $3 trillion in cash between their domestic and foreign accounts. Those companies grew about 7 percent last year and they believe that will continue this year.

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So, if and when we end up in a recession, she believes it will be about a 4 percent dip. The Bay Area, because of Silicon Valley, will not feel it like the rest of the nation. For those buyers who are hoping for a dip so housing will be more affordable, you might want to buy now, before interest rates go up. For sellers: now and the near future is a good time to list!

The smallest decisions can make your house more valuable

When selling a home, oftentimes the goal is to maximize financial return on the deal. Everybody wants to make as much as they can off their home sale, and even the slightest changes can increase what a home sells for.

Take this article on Inman.com for example. It’s about how homes with blue bathrooms sell for $5,400 more on average than others, according to a Zillow study. Crazy, right? Literally just changing the color you’ve painted a wal or two can add thousands of dollars to your wallet!

The article goes on to list a couple other color choices that can add or subtract from the sale price; for example, grey (and other neutral) exteriors sel die about $3,500 more than homes with other colors.

It really goes to show that small aesthetic decisions can play a huge role in netting you some extra zeroes on your home sale. It’s always wise to cater to the current trends when painting, decorating and remodeling your home to go on market – even if it means just a couple grand more in your pocket.

I try to stay tuned in to what’s popular so I can help you make those decisions. I am committed to maximizing your value as a seller, and on the flip side, getting you the best deal possible as a buyer. Give me a call if you’re interested in a real estate transaction!

How do appraisers value a property?

Our friend Jay Vorhees at JVM Lending has posted another great blog recently. This one is about what realtors can say to appraisers. Check it out below!

Lenders are not ever allowed to communicate directly with appraisers. They are only allowed to order appraisals through an Appraisal Management Company, which in turn contacts the appraiser.

Realtors, however, can communicate directly with appraisers and it is highly recommend that they do so.  I meet the appraiser at the home, provide them with the comps I used to come up with the list price and let them know how many offers I had and the offer price of them.  It is important to be nice, and not tell them ‘how’ to do their job.

Below is the criteria appraisers use for Comparable Sales Data guidelines.

1. Size: Comps need to be within 20% of the size of the subject property. For example, they usually cannot use a 1,300 square foot comp for a 1,000 square foot subject property. Likewise, they cannot use a 700 square foot comp for a 1,000 square foot property.

2. Distance: Comps need to be within one mile of the subject property, and not over any major barriers like a freeway or a river.

3. Same Town/City: Comps need to be in the same city as the subject property in most cases, even if the comp is less than a block from the subject property.

4. Closed: Comps need to have closed in the last 90 days. Pending sales and listings are not acceptable.

5. Lot Size: Lot sizes must be accounted for too. If the subject property is on a small lot of 6,000 square feet, for example, a comp and a 12,000 square foot lot will have to be downwardly adjusted significantly in most cases.

6. Adverse Influences: If the subject is on a busy street or abuts a school, a freeway or an industrial area, valid comps will need to have similar adverse influences or they will make adjustments to equalize the value.

7. Bracketing Comps: Valid comps need to “bracket” the appraised value. Hence, at least one comp needs to be priced higher than the appraised value, and one should be priced lower.

At the end of the day. Appraisals are still subjective based on the appraiser’s interpretation and experience. Most of the time they are trying to do their best, and as markets shift, they have to adjust. They do not always have some inside information about a neighboring sale or a credit and that is why it is important for the realtor to meet the appraiser.

New review from a happy customer!

One of the greatest joys of working in real estate is sharing in the excitement (and relief!) of buying or selling a home with a client.

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Oftentimes, I become close with my clients just by virtue of developing a personal connection while I vet houses for them. Throughout the process, we usually text, call, email and meet in person dozens of times. So, when we succeed together and find the perfect buyer or the perfect property, it’s extra special for me to get a great review!

For example, I recently helped my client and friend Mckenzie with a transaction, and here’s what she wrote for me:

Kristin is amazing-she went above and beyond as my real estate agent; as a first-time homebuyer, I am SO lucky that I found her!! I found Kristin on Zillow, I was interested in a specific property and sent an email. She followed up and was immediately so helpful over the phone. As I said, I am a first time home buyer, and she gave me lots of advice. She met with me in person to go through the home buying process (like a crash course) which was VERY helpful, and something she didn’t have to do, as I wasn’t even looking at properties yet. She went out of her way, she knows her stuff, she is quick, gives good advice that isn’t biased, and made sure through the whole process I was finding what I wanted. She has a great reputation with other agents in the area and has lots of people she works with that she recommends in terms of home repairs etc. Even after escrow closed, she is still talking with me making sure I have what I need, helping me find handymen and other things I hadn’t even thought of. On top of how capable she is-she is also so fun and has personality plus! It was actually an enjoyable process for me (who would have thought!?!?) I have already been recommending Kristin to friends looking to buy in the area, and if I ever buy/sell again, will definitely be contacting Kristin to be my agent!

What a sweet note from Mckenzie! I loved working with her. If you want to be like Mckenzie, and be my next satisfied client, please give me a call or shoot me an email!

4040 Siino Ave, listed with views of Mt. Diablo.

Tired of renting? Looking for a place to store all your toys? Welcome home to 4040 Siino Avenue in Concord!

This 2-bedroom, 1-bathroom, 1,102-square foot home on a nearly quarter-acre (.23 acres) lot, has refinished hardwood floors, an updated bathroom and gorgeous, cozy bedrooms.

Relax on the covered patio, take in a beautiful view of Mt. Diablo and enjoy a perfect getaway that you get to call home. It’s situated on a quiet street, has a large detached garage with three bays and an extra spot for a boat or RV, and even a separate area for a kennel and dog run.

Everything you could ever want, all in the heart of the East Bay. And it’s offered at just $470,000 right now! We’ll have this awesome home available for viewing at our Open House on Sunday, June 25th from 1-4 p.m. Come stop by!

Owners have the largest mortgages in history!

It’s no secret that the housing market has been unbalanced over the past few years. Prices have been rising, and with them, so have average home loans.

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According to The Mortgage Bankers Association (MBA), the average home loan size is the largest its been in the history of its survey, which began in 1990.

Additionally, the median mortgage size was only about 3.3 times the median annual income in 1990 – now, it’s more than 5 times as big. This is likely due to the increase in housing prices, buyers getting bigger homes and lower interest rates over the years.

Here’s a look at some housing market characteristics for select years.

Housing market data points
Courtesy Realtor.com (link in text above)

According to Mike Ervin of Supreme Lending, people are just waiting and waiting for mortgage rates to go down. People who are using securitizers like Fannie Mae and Freddie Mac have to wait until the Fed buys up more mortgage bonds so that rates will go down. It is unknown if that will happen, but rates have dropped in 2017.

Multiple factors can affect the bond and mortgage markets. The most recent major event was the Trump election and presidency, which saw a large immediate increase in mortgage rates, which have since rebounded, even with the Fed raising rates.

In California, we are in the wealth-building business and real estate in the Bay Area is going to be a good investment for years to come. I am here to advise, provide insight and help you build wealth through real estate.