Get Property For $5000 in Oakland? What You Should Know About Auctions.

I am hearing from many people that they are itching to buy a house via auction.  One friend told me that they were going to buy a house in Oakland this year for $5000.  He said that he did not care about the condition of the house or the neighborhood.  I understand, buying a piece of property for 5 grand is enticing.  If houses were available to purchase for $5000, I would buy a West Oakland Victorian and renovate it back to its turn of the century glory.    Here are a few things you should know about buying property via auction.

There is no Department of Real Estate regulations of auctions, nor separate regulations of auctioneers who conduct real estate auctions.  If the auctioneer is selling real property the auctioneer must be a licensed broker or work with a Department of Real Estate licensed broker.

To buy a home via auction you MUST have adequate financing lined up before bidding as the purchase agreement usually does not contain a financing contingency. (a period a time in which you can back out of the contract if you can not cement financing.)

When buying a home via auction you will not be provided with any reports or disclosures regarding the property condition.  For example, the foundation could fail and the roof could be long overdue for replacement. Unfortunately an inspection contingency period will not be a part of the part of the purchase contract.  A time period in which you can back out of the deal if you are not satisfied with condition of the house.

Typically bidders who purchase homes via auction are professional investors, they are not folks looking to buy a home to owner occupy.  They are investors who know all of the potential pitfalls regarding the process When you are bidding on a foreclosure via auction you could be bidding on just the junior or second mortgage that has been foreclosed.  For example the starting bid on a home is $40,000.  You bid on this property and win the home for the $40,000 amount.  However, unbeknown to you, there could be a senior loan or mortgage attached to this property for an additional  $300,000, where you are now responsible for paying it off in full in order to actually own the home.  How horrifying would that be to think you are purchasing a fixer upper home for $40,000 and realize you are now on the hook for $340,000!

I wouldlike to hear from you!  Do you have a positive auction experience in the Bay Area?  Let me know.

Buying A Home In Oakland? Buying A Home In Berkeley?

This photo is from the California Online Archives. Oak trees at Mosswood Park in Oakland When you buy a home you buy a piece of the street and a part of the city.

Growing up and still living in Oakland, I often run into people I know. I can see the distress on folks faces as they ask me how business is. You can't avoid all of media coverage regarding the declining real estate market. One would think that the entire real estate market has collapsed. Oddly enough my pressure-free, no nonsense approach to real estate has paid off and 2008 was a great year for my clients and I. Last month Red Oak Realty awarded me a Managers Award for 2008. So let's just look at real estate in Oakland and Berkeley. Since January 1st 2009, 326 residential properties have sold! (The first 47 days of this year) Compare this to 345 properties sold between the same time period in 2004 390 properties sold between the same time period in 2005 361 properties sold between the same time period in 2006 332 properties sold between the same time period in 2007 Only 186 properties sold between the same time period in 2008 - the start of one of our worst real estate years. To make this short, buyers are back. In Berkeley the average home price for properties that sold since January 2009 are as followed: average list price was $624,990 and the average sold price was $612,637. Sellers are getting 98% of their asking price on average. In Oakland as a whole, the average home price for properties that have sold since January 2009 are as followed: the average list price was $ 79,464 and the average sold price was $84,599.When I searched for homes in select neighborhoods of Oakland, Rockridge, Redwood Heights, Montclair, Grand Lake, Glenview, Lincoln Heights and Upper Rockridge the numbers went up drastically. The average list price was $601,102 and the average sold price was $582,941, seller are getting 97 percent of their asking price. (these statistics include condos and homes of all sizes.) So what does this all mean? Well with 743 homes currently pending, (in contract to close escrow) in Oakland and 51 homes currently pending in Berkeley, buyers are feeling like now is a great time to buy a home in Oakland and Berkeley. There are experts that say the market will drop another 8-10% in the next year as unemployment increases and more mortgage interest rates adjust, but if you are trying to "time" the real estate market perfectly, you could miss the bottom and find yourself in a market that has increased in value. Berkeley median home price actually increase by 2% for the fourth quarter in 2008.

Consider this:

• It looks like Congress will increase the first time home buyers credit to $8,000 from $7,500. What more, this credit will not have to be paid back!
• As stocks seem more and more volatile and the health of major companies are uncertain, real estate historically proves to be a sound investment for long term wealth.
• With the Bay Areas ideal weather, are very close commute to San Francisco and UC Berkeley in our backyard, the Bay Area will always be highly desired.
• If you are now in a position to buy a home, buy the absolute best location you can afford. Work with a reputable local Realtor who is in touch with the Oakland and Berkeley neighborhoods and understands the subtle nuances that can make a difference in future resell value.

Should you buy a house in Oakland or Berkeley now?

I am talking to people everyday who are on the fence about buying a home now. Is now the right time to buy a house, or should you wait to see what the Oakland and Berkeley real estate market will do. When looking at the graphs above provided by BrokerMetrics. Home prices in Berkeley are down only 3.8% since September 2006. In Oakland the median home price is down a 47.3% since September 2006. These numbers are good to view, but to really understand this real estate market, you need to know exactly what is happening in your zip code and neighborhood. Oakland has seen such a drastic drop in the median price of a house as this statistic includes sales all over the city. When you combine the sales in East Oakland, West Oakland and North Oakland, areas that have experienced a major decline in value, the entire value of the city is affected. Factors that determine value are: crime, the foreclosure rate in the neighborhood and the performance of the area school. Areas such as Rockridge, Montclair and Crocker Highlands in Oakland have seen drop in price, but overall they are still highly desirable resulting in less of a decline in value.

The question you must ask yourself before buying are: will I remain in my home for at least 7 to 10 years before selling? Am I okay with no increase in appreciation for a few years? What will I save in regards to the tax benefits of homeownership? (Contact your tax advisor to determine how the deductions of interest and property taxes will affect your bottom line.) If prices go up in a year or two, will I regret that I didn't purchase a home in a declined market, and lastly can I afford the mortgage payments with property taxes and insurance? (A good mortgage broker will provide you with spreadsheets of your monthly payments so you can plug those numbers into your monthly budget.)

I believe in full disclosure of the pros and cons of the big investment of buying a house. You should know there is a tax credit of up to $7500 for first time homebuyers. This incentive will expire June 2009. For more information, click here.

My blog is interactive! Do you have questions? Email me and I will respond. Send me an email at DeidreJoyner@gmail.com or click on the email me button on the side of this page.

Quality Homes Wanted in Oakland and Berkeley

Over the last week, I have been house hunting for my buyer clients in both Oakland and Berkeley. Buyers are looking for houses in the best locations that will hold their value throughout any real estate market, (with sensible floor plans). Because most sellers are holding off on selling as they are waiting for a better real estate market, quality inventory is low. Buyers are still out there hoping to take advantage of the real estate market slow down and folks are getting frustrated by the selection.

The people who are choosing to sell their homes are homeowners who want to move up. They realize that they will not get as much money for their home, but they also know that they will not spend as much on the larger home. (Depending on the area)

Other homeowners are selling their homes due to divorce, job relocation, empty- nesters who want to downsize and death. (People who have lived in a home for decades until they died).

There is a great deal of inventory in the transitional neighborhoos at low price points, but for folks who want to purchase a home with a price tag of $550K-$800K you have company. I am seeing multiple bids placed on 3 bedroom houses in prime locations that will hold their values. The exception is when a house is over priced to begin with as these houses sit on the market until the price drops.

Overall, the Oakland and Berkeley real estate market will continue to be a strong market for real estate, as we are close San Francisco and we have the best weather and sense of community!

Mid- Century Treehouse in Berkeley

Labor Day is over, school is in; look for more new listings to hit the real estate market this September and October.

This was my favorite house from last week's broker's tour. Being that my children are older and a big backyard is not necessary for me now, I really like the idea of having a private deck in the front of the house and a deck with views off of the living room. This Reece Clark house was well designed, as the kitchen is very close to the extra large front deck, making entertaining and barbecuing easy. The living room has a beautiful raised ceiling with beams and there are fantastic views from almost every room. This house made me feel like I was in a luxurious tree house! Built in 1962, this mid-century home in Berkeley is in an ideal location; if you lived here you could walk to Peet's Coffee, Rick and Ann's restaurant, Red Bird boutique and Vessel boutique. This home is 148 Stonewall Road in Berkeley and it is currently listed with Grubb Co. Photos are courtesy of Carolyn Jones.

Mutual Respect Proves To Be A Winning Combination!

Last week I met two of my buyer clients at my new office, (I am now at Red Oak Realty in Oakland) to write an offer on a house in the Berkeley Hills. My clients are great and I REALLY enjoy working with them. They offered to pick up a pizza pie from Zachary's, so we could eat while we burned the midnight oil.

Since this was the first offer we were writing together, we discussed everything and talked out several scenarios, as we were writing with competition. (We knew there were 3 to 4 other offers coming in on this particular house.) As we were eating pizza and brainstorming together, the room was full of laughter as we were having fun writing the offer! When you are working with a Realtor who is well suited for you, writing an offer can be a pleasurable process.

A few months back these same clients were considering writing an offer on a different house, but they decided not put their hat in the race. This is what the wife wrote to me in an email, and she approved me sharing this with you.

..."Mostly, thank you for holding our hands, encouraging us, for your wise feedback and counsel, and ultimately giving us this space to do the soul-searching in finding the right house. I'm enjoying all of the people I'm meeting along the way (Diane, Laurel, Lara) and I can see very clearly how your wonderful relationships are such an advantage in this process. Probably not many people say that in the middle of the process (even when that process means deciding not to put an offer in), but we feel well-represented." - Deidre's current buyer

By the way, Zachary's Pizza is one of my favorite pizza spots! For the son's baby shower, I requested Zachary's Pizza for the menu. Zachary's is locally owned and has been an Oakland and Berkeley favorite for 25 years! Visit Zachary's online at, http://www.zacharys.com/

Pictured above is the winning artwork by Donna and Tony Aweeka, Oakland, CA. Photo from Zachary's website.

Life in the Oakland and Berkeley Hills

It doesn't matter how many times I see deer cross the road, it always brings a smile to my face. I took this photo as I was leaving a house on Keith Avenue in the Berkeley Hills off of Marin. I was driving with my friend and colleague Nicole, and I asked her to stop the car so I could take a snapshot. I felt like a tourist! This reminds me of when I was showing property to a family from Russia who was thinking about purchasing a home in Berkeley. As we were looking out at the up-slope of the backyard in the Berkeley Hills we saw a few deer grazing on vegetation and the wife said to me, "how sweet they put real deer in the yard for staging". When you are out driving along Grizzly Peak or Skyline Blvd. it is amazing that we live so close to trails and wildlife. We sometimes forget about this as we are driving downtown or across the Bay Bridge to San Francisco, but this is one of the reasons living in Oakland and Berkeley is so supreme!

Has your Oakland or Berkeley area home declined in value?

What is value? The worth of something compared to the price actually paid. Because of the recent down turn in the real estate market, your house might be worth less than what you paid for it. For some of you, you are taking the declined market in stride, as you have no intentions of moving out of your home. For others, you feel trapped. You feel that you want to be able to sell your home at any time without taking a loss. Fortunately, many areas of Oakland and Berkeley are holding strong and in some cases seeing multiple offers. Unfortunately there are communities that are suffering. If the purchase price of your home was more than it is currently worth, there is the possibility you could get your property taxes reassessed. Fidelity National Title has created an informational website regarding Proposition 8 , a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a decline-in-value. Click Here to view the website! Remember home equity is really ghost equity; it doesn't count as money in your pocket until you cash out.

Mid Century Home on Blake in Berkeley

Last Thursday on Broker's Tour I was happily surprised by this mid-century home in Berkeley. This home had the great features, an open sensible floorplan, easy outdoor-indoor living, and (not included in the sale of the house)great fifties furniture.

So here is my question to you. Do you like when mid-century homes are mixed into neighborhoods dominated by bungalows? Do you prefer when neighborhoods consist of homes built all within the same era. This home is situated among bungalows...

What Does "As-Is" Really Mean?

So you are selling your first home in the Temescal area of Oakland. You informed your Realtor that you want to sell your home "as-is"; you declare that you do not want to credit the buyer on needed repairs that could be discovered during the inspection period. You feel that you and your Realtor have priced your home fairly, and you have strong convictions that no home is perfect. You purchased your home in a strong sellers market and you agreed to the flaws, as you are realistic about home ownership.

So, here is the short of it. You can promote your property as an "as-is" sale. This might not be advisable, as the perception to buyers is, "as-is" equals, "fixer".

It would be wiser to find out all of the major flaws first, disclose them and price your house accordingly. When a buyer asks about the great price, your Realtor would respond by stating, "The roof will need replacement soon, and the seller took that in to account in regards to price."

If you decide to sell your home "as-is" both the seller's and buyer's Realtors will still suggest inspections. It is highly encouraged that any buyer fully inspect their future home. A home purchase is the biggest investment that we will ever make. So you telling your buyer don't ask for a credit if there are newly discovered problems is giving your buyer the following choices: walk away from the transaction or accept the house with all of its problems. In real estate everything is negotiable until all of the contingencies have been removed. (Call me if you have questions about contingencies.)

What you as a seller should want in this market is a negotiation. Wouldn't it be better to share some of the expense, than lose the buyer altogether? Remember, this is a real estate market that favors buyers and real estate finance can be difficult.

Sellers keep in mind, if you are in contract with a buyer and they cancel for any reason,  you will need to disclose their inspection reports to any new buyer if your house goes back on the market. When houses go back on the market after they have been pending, buyers do not give them as much attention, as they do new listings.

Remember real estate is a negotiation. There is no buying frenzy right now. When selling your home, work with a Realtor who will be honest with you, even when it is uncomfortable.

Is losing a transaction over a few thousand dollars of credit to a buyer worth it?  or did you not really want to sell your home?

Really!

Facts about the Oakland and Berkeley Real Estate Market:

· Pricing your home on the low side of its competitive value will give you a bigger audience of buyers.

· Local Realtors who have a great reputation amongst their colleagues command big support and interest from the real estate community for their listings.

· Selling your house naked is a bad idea. With fresh paint, refinished hardwood floors and staging, your house will get a second look by buyers.

· Gone is the day that you can post your home on the MLS and the buyers will come. Don’t chase the real estate market! Use a quality Realtor; they will bring the market to you.

· Whenever clients follow my advice in regards to pricing and preparation they have been thrilled with the results. Their homes sell for over asking in a short time frame.

· Really!

Homeowners Get House in Competition in Berkeley

Over the last few months I had the pleasure of working with Liza and Matt. They are a newly engaged couple who knew exactly what they wanted in a home. They wanted a place to entertain their friends and family in a relaxed environment, with a good size yard for a garden and their dog Sadie. Oh, and they wanted the home to be within their budget and in Berkeley.

Yes, it is true that Buyer's have an advantage in this market, but it took some time for the right house to come along. Yesterday, Liza and Matt just closed escrow on their new home on Blake Street!

Congratulations! I want to thank them, as handing them the keys to their first home was sheer bliss to me. I feel honored to be a part of a significant event of their lives.

Thank You!!

Seismic Rebates For New Home Purchases in Berkeley

Are you purchasing a home in Berkeley?

Have you purchased a home Berkeley within the last year?

If your home needs seismic repairs such as, bolting your foundation to the mudsill, improving a substandard foundation, or removal of an un-reinforced masonry chimney, you can now get a rebate back from the city!

Berkeley is giving a dollar for dollar rebate to new homeowners for up to ½ percent of the homes purchase price. The city is putting aside a portion of your city transfer tax and will give a rebate if the work is completed within a year of purchase. (That is $3000 for a home that was purchased for $600,000)

To qualify your home must be 5 units or less, have a wood frame, be built prior to 1989,plans must be approved by the city prior to the start of work and they must be done with permits by licensed contractors. (There are more requirements check with the City of Berkeley)

Click here to view more information on this seismic rebate.

For many of us our home is our only asset. Add strength to your investment and utilize this rebate, what a great incentive.

Moving to Oakland? Don't Forget the Closing Costs.

So, you are ready to buy a home. What will it actually cost in terms of out of pocket expenses. In addition to your down payment, there are closing cost. The approximate cost is 3% of the purchase price of your new home. Here are some of the fees:

Title Insurance - (This insures that you are receiving the property free and clear of liens, except your new mortgage)

Prorated Property Taxes - (You will make sure the property taxes are current, however you are paying the taxes at the sellers tax rate. Within 6-12 months you will receive a Supplemental Tax Bill which is the difference between the sellers property bill and your property taxes. Property taxes are based on the purchase price of your home.)

Any lender fees - Often these fees are minimal

City transfer tax - the city wants their money

The following is a list of the cities in Alameda County and their transfer tax. (Emeryville has No city transfer tax!!!) Typically this tax is divided equally between the buyer and seller, for example if the city transfer tax is $15 per $1000 dollars of purchase price and the purchase price is $500,000 then the buyer and seller will each pay, $3750 in transfer cost as part of their closing cost.

Transfer Tax in Alameda County Cities:

City of Alameda: $12.00 per thousand

City of Albany: $11.50 per thousand

City of Berkeley: $15.00 per thousand

City of Hayward: $4.50 per thousand

City of Oakland: $15.00 per thousand

City of Piedmont: $13.00 per thousand

City of San Leandro: $6.00 per thousand

County transfer tax is $1.10 per thousand and this is generally paid by the seller.

If you are confused at all, call me at 510.693.4253 or email me at deidrejoyner@comcast.net

Property Tax Benefit for For Folks 55 Years Old or Older

Do you live in Alameda County? Is your once perfect home in the Oakland Hills now too big since the kids moved out? Take advantage of Proposition 60 and 90 a property tax benefit for Alameda County homeowners.

Residents 55 years old or older can make a one-time property tax transfer within Alameda County. Since the passage of Prop 13, people are afraid to sell their larger homes to downsize to a more appropriate size for fear of a huge increase in property taxes.

Ask me for more information about this one time tax transfer and also about the cooperating counties in California that will allow you to transfer your tax base.

Call ore email me for my free booklet.

510.693.4253 cell - deidrejoyner@comcast.net

Why is my house not selling?

The Bay Area real estate market is healthy, in fact many properties are having multiple offers, so why is your house not selling?

Here are a few things to consider. Sadly for sellers the real estate market peaked in September 2005, so you need to think realistically, most likely you will not sell your home for the same price your neighbor got two years ago. The good news is any home will sell at the right price!

When your home hits the real estate market, the first three weeks are critical so you need to price your home right from the beginning. Even in this market buyers think a home has "issues" when it is on the market longer than 25-30 days. Remember there is no fooling a home buyer, home buyers and their Realtors will know what your home's true value is.

Sometimes with the correct pre-marketing plan your home will have multiple offers! Make sure your home is ready for the marketplace, it is best to present your home to the public with your "A game". Sometimes you will see homes on the market with confidential remarks such as, "seller to replace flooring by close of escrow." Regardless of the promise, a home will not sell unless a buyer falls in love with it. Unless you are selling your home as a "fixer" a person should physically see what they are buying.

Hire a Realtor who will aggressively market your home. In today's market it is super important to have a heavy emphasis on Internet marketing. The vast majority of home buyers start their home search on the Internet.

When you are considering selling your home, identify the reasons. Is it just because you want a change or have you out-grown your home? My point is maybe now is not the best time for you to sell. Maybe there are some inexpensive fixes to the "problem" aspects of your home. Possibly it is best to hold on to your home another year or two until you acquire a bit more equity.

If you are looking for a Realtor to give you honest answers to your tough questions, give me a call, I am happy to help. My motto is, I would rather under promise and over deliver. I am here to be your resource and when the time is right, I am ready to work aggressively for you.

Take a look at one of the websites I built for a recent condo listing, www.50EmeryBayDrive.com.

Even Die Hard "Do It Yourselfers" Hire Realtors

Why Even Die Hard
“Do It Yourselfers”
Hire Realtors Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions in the Bay Area today usually exceed $500,000. If you had a $500,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $500,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be risky to consider a deal in real estate without the professional assistance of a Realtor. But if you're still not convinced of the value of a Realtor here are a few more reasons to use one:
1. Your Realtor provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your Realtor can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property.
2. When selling your home, your Realtor can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
3. Often, your realtor can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your Realtor markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer.
4. Your Realtor will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your Realtor, you do not have to allow strangers into your home. Your Realtor will generally prescreen and accompany qualified prospects through your property.
5. Your Realtor can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your Realtor is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Multiple Offers in a Softer Market

Last Summer I had the pleasure of selling an adorable bungalow in the Melrose District of Oakland. The following is a letter of recommendation from the sellers.

Dear Deidre,

We want to express our sincere appreciation and admiration for the work you did in selling our property. We found that we were constantly amazed and pleasantly surprised by the enthusiasm and professionalism that you showed throughout the entire in process. We did not think we would find someone even more conscientious than ourselves, and are still thankful that we found you. Even before we decided to sell our property you provided us with information that helped us to make a sound decision. Once we asked you to be our agent, you were available with affordable and effective marketing ideas as well as cost-effective contractors for various repairs. You even served as “project manager” for some of the work, and kept us informed about the sales status every step of the way. You were simply fantastic!

As you know, we have recommended you to friends who have let us know that you were every bit as generous and competent in helping them. We will continue to do so, but also want to extend our willingness to serve as a reference to anyone considering working with you. We wish to confirm your skills and your commitment.

Thanks for your invaluable help and guidance. - John and Elizabeth

Homeowner sells with ease

Website: Berkeley Parent Network-http://parents.berkeley.edu/ This web site contains thousands of pages of recommendations and advice contributed by members of the Berkeley Parents Network, a free parent-to-parent email network for the community of parents in the Berkeley, California area. Formerly called "UCB Parents", this network is run by a group of volunteer parents in their "spare" time. Many busy parents have taken the time to give their suggestions, their wisdom, and their experiences. Check out BPN for advice from schools to repair specialists.

Recently, I sold 50 Emery Bay Drive in Emeryville. I was happily surprised to see that my clients recommended me on the Berkeley Parents Network! I feel honored to be mentioned on BPN, as all recommendations come from people who live in our community who feel compelled to share a great experience.

Here is what my sellers had to say: " I wholeheartedly recommend Deidre Joyner with Prudential. She just sold our house with great success! (Multiple offers in less than a week, sold over asking, etc...) She is an Oakland resident so she knows the market very well. Check out her website (www.deidrejoyner.com) and call her at 510.835.6180. She does everything to sell your house. "