Client Appreciation Party

After sending out invites, speaking with past clients and those who have referred me, coordinating with the venue, and designing the event, I am happy to share some pictures of a fun day with my wonderful clients and friends. I also want to give a big shout-out to Prima Ristorante, where we enjoyed appetizers, wine tasting of old and new-world wines, great company and friendship all in the cozy space of their room with a fireplace.

Frank, our sommelier, did a wonderful job of introducing us to the nuances of French vs. California wines, and we finished with a blind tasting of a white and red. We had to guess if it was a French or California wine based on the taste. We also had a seasoned waiter who served us some amazing appetizers of  calamari, shrimp, antipasto platters, rice balls and deep friend olives – yum!

We also gave away some door prizes: two $50 gift cards to Whole Foods donated by Lukasz Wilk of Wolf Construction, a certificate for house cleaning donated by my stager Heather Farry, and two bottles of wine from Prima as part of the day’s event.

Many may think the job of a realtor only involves buying and selling homes with my clients. But being a guide, friend and advocate for my clients is actually the biggest part of the job and celebrating them is my favorite part! I look forward to seeing new and old faces at future events!

Applying for a Home Loan? See JVM Lending’s “Don’t” List!

Once you’re pre-approved, the last thing you want to do is knock yourself out of qualifying range. My friend Jay Vorhees at JVM Lending is a great source on this issue, as he’s seen hundreds of borrowers in this situation. Now, he sends them a list of “actions to avoid” with every pre-approval letter. Heeding his advice will help you at least prevent delays and extra paperwork. Take a look!

1. Do not make large deposits that can’t be explained. When you are trying to qualify, any large deposit – think $500 for a new mattress, or all-cash payments – must be explained. Otherwise, an entire account can become invalid and unusable for qualifying. Always keep a paper trail to make large deposit explanations easier!

2. Do not take on new debt. If you increase your credit card balances, finance a vehicle, or take on debt in another way, your ratios will be impacted and it will reduce your maximum purchase price.

3. Do not take vacation days if you’re paid hourly. A single day off work can push you out of qualifying range if your debt ratios are high and approaching your limit.

4. Do not spend liquid assets. Pre-approval software relies on specific liquid asset levels. So, pre-approval amounts can change if liquid assets are significantly reduced.

5. Do not miss payments on any debts reporting on a credit report. This one is pretty obvious, and you should avoid missing payments anyway, but missing monthly payments that reduce your credit score may also reduce your qualification amount!

6. Do not co-sign for someone else’s debts. That’s a dangerous maneuver anyway, but even if you’re just a co-signer, the debt will show up on your credit report. That makes you responsible for the debt and the payments.

7. Do not file taxes with a tax liability owing, or with less income than in previous years. This mostly applies to self-employed borrowers (especially during tax season). The most recently filed tax returns will be what the qualifying income is based on, and all tax liabilities must be proven paid. JVM recommends that borrowers file an extension when possible if they are making offers during tax season.

Things NOT to do when your house goes on the market

You’ve probably seen endless lists about how to sell your home. Everything from choosing the realtor, to the staging, to the deliberation is under the microscope. But how often do you get told how NOT to do things? RIS Media has put together a good four-step process for how to not get in your own way when selling a home.

First, don’t over-improve the house, the article says. This is good advice. While it’s important to clean up any holes and cracks in the wall, and make sure the lighting is fresh, etc., doing too much can be damaging to your case. But if you go out and make your dream changes to the house right before you sell it, you better hope your potential buyers see it as an awesome improvement, too, and not a large project to fix.

Next, don’t over-decorate. Simple, neutral colors and decorations will be just fine. Similarly to the first point, if you decorate your home with a bunch of lace, lavender and lemon scent because they are things you like, you’ve done too much. What if a buyer walks in and is immediately overwhelmed by it all? Keep it simple. Remember, the buyers are the ones who get to decorate when they move in. This is why I pay for a staging consult; because it tells you what to remove, and then I highly recommend doing some staging as it makes a huge difference in how your home is photographed. The online view of those photos will be the first impression a prospective buyer gets, and will help them decide if they want to see your home in person.

Third, and probably most important: do not BE THERE when the buyers arrive. If your realtor is going to show the house, try to get everyone (pets included) out for a couple hours. Go to a movie. Have lunch at the park. Find a way to get out of the potential buyers’ ways, so they aren’t attacked by a bunch of people upon walking in. Remember, they want to see themselves in the house. Not you!

Lastly, don’t take things too personally. You’ve put a lot of blood, sweat, tears, money and memories into your home. When a buyer lowballs you or requests repairs, don’t be upset. They are trying to afford their newest home, too. And they might tell you the reason they have to offer low is because of something they think needs updating that you disagree with. Bite your tongue, and keep negotiating. Remember, it’s all a business!

Newest must-see boutique: Filthy Gorgeous

Can one city have too many boutique stores? Not when it’s the holiday season, and definitely not when the newest redo boutique store in town is one of the coolest ones I’ve seen!

Filthy Gorgeous took over the space on S. California Blvd. and Botelho Dr. next to the Site for Sore Eyes and Jinny’s. It is a small corner that was previously vacant. It is just a few steps away from Broadway Plaza, where it had a store prior to the Broadway Plaza remodel.

Besides the ideal location, Filthy Gorgeous has some truly stunning home decor in their store. You can get anything from furniture, to art, to lighting to the basic home decor. They also run an interior design business, and you can see pictures of ongoing local projects on the website.

The brother-sister team of Jonathan and Tirzah created Filthy Gorgeous together and have grown it into a massive business that has been featured in multiple national outlets and on TV. And now they are back in Walnut Creek!

When I visited, I was really impressed by the style and choices in the store (my favorite items was a Buddha Goddess Head). Someday, I’d like to redecorate certain parts of my house with items from Filthy Gorgeous. Once you visit, you’ll probably want to do the same!

Filthy Gorgeous gets a perfect 5 out of 5 Mt. Diablo’s from me!

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Are millennials looking for homes or glorified dog houses?

Everyone loves dogs! I love my dog! You love your dogs, too! It seems that millennials especially like their dogs, as a recent Time article explained that “space for a dog” is the third-most common reason cited by millennials for buying a home in today’s market.

What really struck me about the article is this: “space for a dog” is listed ahead of “children” or “marriage” as reasons for purchasing a home. It came in only behind “more living space” and “building equity.”

Now, isn’t that interesting?  We know millennials are getting married later and having fewer children than previous generations, and the housing market has become so expensive across the county that it prices out people who have spent money on marriages and providing for children, but it’s still surprising to see it behind a reason like “space for a dog.”

The rental market prices have also skyrocketed, which makes me think that millennials would rather pay a mortgage in some cases and have their own home with ample room for their four-legged friends, than pay a monthly rent in properties with strict pet policies.

I guess you can always buy a home first, let your dog break it in, and then bring in a partner and children! Whatever works! It’s just funny to see the difference between their generation and mine, and why they pursue home-buying.

Selling a home without an agent is risky!

When you sell a home, you don’t need a real estate agent, just like you don’t need a lawyer when facing criminal charges. You can, if you want to, represent yourself in a court of law, and you can always put your home up for sale by owner (FSBO).

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But, it’s an extremely risky proposition. As outlined in this Inman article, there are many things to consider when putting a home up FSBO. Here are eight things, summarized from said Inman article, that sellers risk when they don’t have a realtor representing them:

1. Knowledge

Realtors are professionals in this business. They have expansive knowledge of the complicated home-buying and selling processes, possess loads of helpful data, and have large networks of people who can help minimize the difficulties that arise.

2. Time

The non-realtor probably doesn’t realize how many hours are put into any given home, buy or sell. Real estate agents are available for clients around the clock, on a whim, and can confidently and smoothly quell any concerns by potential home buyers.

3. Presentation

Preparation is essential to selling a home – what buyers see when they walk through the door will determine if your home sells. Agents can prepare the finest details and have stagers, professional photographers and others who will help make the space beautiful.

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4. Marketing

Anyone can draw up a “For Sale” poster, but realtors will design, distribute and widely market the home to a huge number of potential buyers. Realtors can access predictive analysis and promote to those demographics on social media. Also, they know just what to write to draw interest.

5. Negotiation experience

If you’re doing FSBO, what do you do when you actually receive an offer? There’s a purchase agreement to be discussed, price negotiations to be had, and so on. Realtors will make sure you don’t get screwed by a buyer, and that you only incur costs you’re supposed to pay.

6. Inspection and repair know-how 

One of the most important parts of any real estate transaction is knowing which inspections to expect and how to get them done. This is where the realtor’s web of resources comes in handy again – he or she should be able to provide repair people to fix anything discovered in an inspection.

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7. Transaction management

Once a home is in contract with a buyer, there are more steps to close the deal. Realtors can make sure the right people are contacted to handle the closing, appraise the property, repair anything found in inspections and anything else to follow up on.

8. Closing finesse

There are expectations upon closing a property. Non-realtors probably don’t understand what the buyers expect, in terms of when move-in/move-out occurs, the condition one should leave their home in, or what to do if a last-minute issue arises. Realtors do know, and they are worth the time and money to ensure your sale is in good hands.

FSBO’s may be intriguing to the cheap and/or self-confident, but the small savings on a realtor’s commission is not worth the hassle that comes with navigating such a difficult process without professional help, and often a house sells for less than what it would have with an agent even after the commission has been paid.

On that note, there’s a reason I do what I do! I’d love to help you buy or sell a home. Please reach out any time for information regarding the current, local real estate market!

Open House: 4391 Pembroke Dr. (Concord)

The Kristin Lanham Team has another beautiful home going on the market – this one is in Concord, on Pembroke Dr. Take a look at some of the pictures below, and swing by for a peek at our Open House this weekend!
 
The home is a cozy, mid-century charmer with a serene, quiet backyard. There is room for an RV or a boat, which includes a spa and storage shed, all surrounded by professional landscaping and lots of plants and flowers.
An open concept makes it warm and welcoming. The updated kitchen with its expansive island is the centerpiece for family gatherings and additional storage. The open-beamed ceilings add to the interior charm. There are stylish updated bathrooms, dual-pane windows, lots of natural light and great flow from outdoor to indoor for entertaining.
 
This house has been meticulously loved – an updated, warm interior and a vibrant backyard planted specifically to attract hummingbirds, butterfiles, and bees.  A perfect place to call home!
Come take a look at the Open House this weekend from 1-4 p.m. on both Saturday (9/9) and Sunday (9/10)!
3 bedrooms | 2 baths | 1250 sq. ft. |.17 acre lot
Offered at $580,000
To take a virtual tour of 4391 Pembroke Dr., click HERE!

What is the most expensive zip code in CA?

If you had to guess which California city has the most expensive real estate, what would you say? San Francisco, maybe? Certain parts of Los Angeles – remember the show 90210?
Watkins-Cartan House, 98 Alejandra Ave., Atherton, CA
Nope, the honor goes to the 94027 zip code – Atherton, CA. For those not familiar, Atherton is right above Palo Alto and the average cost of a home there is…wait for it…$6.17 million. According to Zillow, home values in Atherton reached a low point in summer 2009, dipping below $3 million.
I asked my friend Jay Vorhees of JVM Lending what kind of average income would be necessary to afford a home in Atherton at 25 percent and 50 percent down.
Given that the average income in Atherton is about $250,000, I was wondering how exactly a median home price of $6.17 million was affordable there! Here’s his assessment:
Assuming no consumer debt, a 4.0% rate and a 42% debt ratio, with 25% down, PITI would be about $29,000 per month (rounded). This would require $69,000 of monthly income or $828,000 annually.
With 50% down, PITI would be about $22,000 per month (rounded). This would require about $52,500 of monthly income or $630,000 annually.
So how does the average income earner in that area afford Atherton? Most likely people have had these homes for years, thus the lower income. For new purchases, stock options from IPOs are not usually included in your annual income, thus allowing the the nouveau riche of Silicon Valley to buy with cash or put 50% or more down.

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.