Luba Muzichenko

San Francisco Realtor

Archives for May 2008

Uncle Sam's Got Your Mortgage Covered (and it's at a Lower Rate!)

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So – I just heard the word from my favorite mortgage broker, Monica DiPerna about the new Government Sponsored 30 Year Fixed Mortgage Program.  This will definitely open up more opportunities for first time homebuyers and those looking for a home that’s slightly below the range of median priced homes in San Francisco. 
This is what Monica sent out yesterday:

The government has sponsored a program that allows homeowners with a loan amount above $417,000 and up to $729,000 to be able to refinance below market rates.  Many of you have emailed me to ask me where these rates are currently.  Today, you could refinance into a 30 Year Fixed Amortized Loan Program up to $729,000 and lock into a rate of 6.75% with no points and prepayment penalties.  This may be a good opportunity for those that are thinking of remaining in their property for a longer period of time or those that have an interest only loan and want to start paying down the mortgage.
 
The current rates for a Regular 30 Year Fixed Jumbo Loan are very high.  They average 7.625% with all lenders.  6.75% is definitely a great rate for a Jumbo Loan these days.
 
If you have any other questions, please don’t hesitate to contact me and we can put together a strategy that makes sense for your financial plan.
And then today – Monica sent out an alert that rates fell!
Today, the Government Sponsored rate has decreased to 6.375 if you have the following elements:
 

720 FICO SCORE

Loan amount of $728,000 or under

20% Equity in the property

NO CASH OUT

Rate and Term Refinance

Single Family Residence ONLY

Amortized loan ONLY

Must have 6 months of reserves in the bank (Your retirement account is sufficient)

All of your monthly debt must be 40% of your gross monthly income

 
If you are interested in shifting to an Amortized 30 Year Fixed Jumbo please let me know and I will email you a to do list.
 
Have a great day!

Why Are SF Real Estate Agents Are Dropping Like Flies?

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I just found this half-written post in my “drafts” and realized that I could really use an extra hour or two each day.  I started to write it after reading an article the other day on SFGate.com that brought to my attention that the number of real estate agents has started to shrink.  In fact, the California Association of Realtors has had a 16 percent drop in membership from 192,660 at the end of 2007 to had 161,600 members in February – just a few months later. 
Now – it wasn’t so much the fact that there are agents dropping like flies drop that surprised me – it’s that some of the agents mentioned in the article were Zephyr agents!  Agents that I ACTUALLY KNOW!  In Fact, one of the agents mentioned in the article, Jaime Gutierrez, was actually in the same training class that I was in at Zephyr when I first started my career as a Realtor.  
Now, I’m not sure why things didn’t work out for Jaime, or the other agents in the article, or why they have worked out for me.  But I do know of at least three theories that may help solve the case of “Why San Francisco Real Estate is Causing Agents to Drop Like Flies!” 

1)  The Get Rich Quick Theory – If you ask your friends, I’m willing to bet that a large proportion of them have either taken a class in real estate, or have thought about doing so.  Many people I have met have the impression that helping people buy or sell San Francisco Real Estate is an easy way to get rich quick. 

With the exception of a few crazy years when SF real estate prices were soaring through the roof and selling a home required no marketing ability, no negotiating skills and no commitment to going above and beyond the call of duty for your clients - there is no such thing as “get rich quick in San Francisco real estate”. 

Not to mention the fact that in the San Francisco real estate market – an agent has to SPEND a good bit of money in order to make money.  Everything from business licenses and insurance to advertising to professional insurance to medical insurance to equipment expenses and much much much more cut into our bottom line.  So while we might gross $150K per year, it’s possible to net something closer to $30K after all of our expenses have been accounted for (and that’s even before taxes).   

2)  The Selling Real Estate is Easy Theory – I get the feeling that a lot of people think that as an agent, you get your real estate license and then you go out and sell.  I also get the feeling that most people don’t realize that helping people buy and sell real estate involves a lot more than an episode of House Hunters will lead you to believe. 

First – clients don’t just fall in your lap and everyone isn’t just knocking down your door to buy or sell their home.  Helping people buy and sell homes is work.  Finding clients is work.  Negotiating sales is work.  Navigating through contracts and escrows is work.  Marketing properties is work.  It’s all WORK! 

I probably average a 60-80 hour work week.  I work 7 days a week most weeks, and I don’t even count things like writing this blog (the blog is like more or a hobby) or real estate conversations with random people as “work”.  If I added that in, my work week would be more like 80-90+ hours.

2)  The Anyone Can Do It Theory – I get the feeling that a lot of people think that as an agent, you get your real estate license and then you go out and make money.  What they don’t realize is that while the better real estate companies do offer you training, they don’t offer you clients.  The agencies that do offer you clients offer you drastically reduced pay.  The only thing that all agencies offer you is a desk and a phone and an email address.  The rest is up to you.  And remember – if you don’t sell anything, you don’t make any money!

It takes a decisive character, a desire to work hard, the need to help people, the ability to think fast, incredible attention to detail and an infallible commitment to your clients’ best interests to really become a good real estate agent.  The ability to “chat people up” just isn’t enough to make you a good agent.  And in a normal real estate market (ie. one where people aren’t throwing hundreds of thousands of dollars above the asking price at every property on the market like a few years ago) you have to be a good real estate agent in order to survive as a San Francisco Realtor.

I love San Francisco real estate.    I love helping people buy and sell homes.  I love that I am able to do something I enjoy so thoroughly, and that I get paid to do it.  But not everyone is cut out to work in this industry.  Not everyone wants to work so hard.  Helping people buy and sell SF Real Estate is at times, utterly exhausting.  And for those that find fullfilment in this crazy business, this career can bring absolute happiness.  For those that don’t, well… they can always go back to their “regular” jobs. 

San Francisco Home Sales Data – April 2008

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Do you realize that it’s MAY???  I mean, a third of 2008 is now but a memory.  Winter is over (though I couldn’t really tell by today’s weather) and Spring isn’t far from being over too. 
Other things that typically happen this time of year is that San Francisco Real Estate Sales pick up – and this year is no less typical (in this regard at least) that others.  With that being said – I went ahead and ran the sales from the MLS as I do every month and found some interesting stuff.
Notables from April 2008 sales figures:

  • Median sales price rose across the board from last month.
  • The selling price vs. listing price percentage increased in single family homes and TIC’s, but dropped in condos.
  • Days on market decreased across the board.
  • In terms of sales volume, single family home and condos increased drastically over last month, but we had just 2 more TIC sales than we did in March.

Last month I had a theory about TIC buyers.   And I’m starting to think I was right.  I’m also noticing better deals on condos due to less competition.  In fact, I was just able to help my client negotiate an offer on a condo for $50K under the asking price.  We did provide the sellers with other concessions such as a short escrow and free rent back, but we got the price we wanted – so I think everyone is happy.  The point is, there are good values out there right now – and if you’re hunting for a home right now, you might find a good deal.  And sellers, don’t be afraid to sell now – but do be prepared to be realistic about the sales price. 
So here’s this month’s summary of home sales pulled directly from the MLS. Remember, these are all closed sales and not pending sales.
Check back monthly to get the latest facts and figures – and if you have any questions about these statistics, or the market in general, feel free to give me a holler! I’m always happy to talk “real estate!” 😉
Here’s a quick snapshot of the market from April 1, 2008 through April 30, 2008:
Single Family Homes

  • 193 Homes Sold
  • Median Sale Price was $935,000
  • Minimum Sale Price was $350,000
  • Maximum Sale Price was $5,625,000
  • Median Selling Price was 104% of asking price
  • Median Days on Market was 30
  • Median Selling Price for homes that sold within 30 days was 105% of asking price

Condominiums, Lofts & Co-ops

  • 184 Homes Sold
  • Median Sale Price was $815,000
  • Minimum Sale Price was $335,000
  • Maximum Sale Price was $4,625,000
  • Median Selling Price was 98% of asking price
  • Median Days on Market was 35
  • Median Selling Price for homes that sold within 30 days was 104% of asking price

TIC’s

  • 40 Homes Sold
  • Median Sale Price was $664,000
  • Minimum Sale Price was $263,500
  • Maximum Sale Price was $1,799,000
  • Median Selling Price was 102% of asking price
  • Median Days on Market was 45
  • Median Selling Price for homes that sold within 30 days was 102% of asking price

Weekend Blog Linkage

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Here’s the weekly collection of the internet’s greatest hits (so to speak) from the past week. Some have something to do with San Francisco Real Estate, and some don’t even come close to being SF Real Estate related. Expect these to pop up sometime during the weekend – as my time permits. Enjoy!
The Tenant Terrorizers [Curbed SF]
Where the Hell is Little Hollywood Anyway? [SF Weekly Blog] 
Building Permit Costs Set to Increase [Curbed SF] 
How Much Home Does Median Income Get You in SF? [Socketsite] 
We Could All Use a Little Therapy [Apartment Therapy]

Open Shutter to the Past: San Francisco in Pictures – Steinhart Aquarium (1925)

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Visitors to Golden Gate Park Looking at the Seal Pool at the Steinhart Aquarium

Welcome back to Photo Friday – my little way of taking a break from San Francisco Real Estate and instead blogging about our great City’s past instead. All photos are published with permission from the San Francisco History Center and San Francisco Public Library.

I have got to say, I have been jonesing for the grand re-opening of the Academy of Sciences in Golden Gate Park.  I miss the Academy of Sciences.  The photo above shows the Steinhart Aquarium in 1925 with the former seal pool that used to be outside the entrance – and yes, there really were actual seals in there! 

Long after the seal pool was gone, and the Academy of Sciences had a facelift (in the late 1960’s) it became one of the many San Francisco backdrops for my childhood experiences.

Back when the world felt really big and I felt really small, the giant dinosaur would greet me inside the front entrance.  I’d wander around touching giant crystals and spying from a distance into the alligator pool.  I remember being in awe at the animal exhibits (I didn’t realize that they were stuffed dead animals at the time) and remember watching the sea mammals in their tank for what seemed like hours at a time.   It was a world of discovery for me!

As I got older though, the Academy of Sciences and the Steinhart Aquarium changed for me.  The dinosaur that used to greet me disappeared, the stuffed dead animals gave me the heeby-jeebies, the alligators didn’t look so scary.  And the sea mammals – well, I just felt sad when I realized how tiny their enclosure really was!  I had gotten bigger, and the Academy of Sciences must have gotten smaller along with the rest of the world around me.  I stopped going there all together except for an occasional show at the Laserium. 

Then in 2005, when I realized the place was going to get a complete overhaul, I knew I had to go and say goodbye to the place in my memories.  It was great for a nostalgic trip down memory lane, but I didn’t feel the least bit sad that the place was going to look nothing like my old memories.  Times had changed, science had changed, and it was time for the Academy of Sciences to change too.

And now, the grand-reopening of the Academy of Sciences is right around the corner!  This fall, the doors will open, and I will be there to make sure that I collect a whole new set of memories there!  And in the meantime, I’ll have to find other ways to keep myself entertained in San Francisco. 

If my nostalgic little trip wasn’t enough of a history lesson for you, Wikipedia has a pretty decent background on the Academy of Science’s history for you. 

For now – I’ll be crossing off the days until the Academy of Sciences finally opens!