Luba Muzichenko

San Francisco Realtor

Archives for June 2008

Gone Fishin'

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gone-fishing.jpg

It’s that time of year for me again.  It’s time for summer vacation.  And as I do most years, I am heading up to Lake County for some fishing, boating, kayaking and general relaxation. This year, I’ll add smoke inhalation to the list thanks to all the fires that are burning, but I digress.

I’ll be back in town on the 12th Of July, and will resume the usual blog posting schedule when I return, along with a hectic listing schedule (I’ll have a handful of new listings on the market when I come back – check back towards the middle of July to get the full scoop on them.)

If you really miss me,  you can follow me on Twitter where I might pop in occasionally to say “hi.” 

When I come back, I’ll be ready to jump back into the San Francisco real estate market, so if you need help buying or selling property in the new year, know that I’ll be relaxed, refreshed and ready to work my butt off!

Get Real The Latest San Francisco Real Estate Updates

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Just a little blurb to let you know that I’ve just addes a new market report feature to the blog. 

If you just can’t get enough San Francsco real estate market updates between this blog and The City Update(TM), you now have one more option when it comes to getting the latest deets on what the market is doing. 

You can narrow down your reports by zip code or property type, and you can sign up for as few or as many zip codes as you like (you just have to reenter your info for each new zip code/property type). 

You can sign up in the sidebar on the right, or you can sign up right here.

Go ahead, get your SF real estate data fix on!

Oh – and as always, your info will not be sold, rented, shared, abused, danced on, or in any other way misused.  In fact, you’ll never hear from me unless you contact me directly.  Just thought you’d like to know.

 

SF Home Buyers – It's Time to Get Real

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A hint… if you’ve seen 30 properties, and you can’t picture yourself living in any one of them, it’s not that there’s something wrong with all of the properties on the market, it’s that your search criteria is unrealistic.
If you get to this point, it’s time to reevaluate your search, and ask yourself “Do I really want to own a home?” Some people are commitment phobic, and aren’t really ready to commit to buying a home. There’s nothing wrong with that. Keep renting. Renting is OK. Owning a home is not for everyone.
But if you find that you do have the desire to own a home, but you’re just not finding the right home in your budget, you will be faced with two choices:

  1. Reevaluate your standards – you may have champagne taste and a beer budget.
  2. Keep renting temporarily, and SAVE until you CAN buy the home that’s right for you.

Your REALTOR® will be able to tell you from the beginning whether your goals match your budget. In fact, that’s one of the first things I do when I meet a buyer for the first time. 
I’ve had to be the “bad guy” on many occasions and have told potential buyers that their goals are unrealistic, or at times, that their financial situation is too risky to stretch to buy as much as they’ve been approved for.
If I’m your REALTOR®, I want to help you buy a home that you like AND that you can afford. 
The reality is that in San Francisco the first home you own will never be as nice as your last rental. 
In SF, it’ll cost you less to rent a home than it will to pay the mortgage on the same home. 
That’s why many people rent and continue to do so – because they can’t afford to purchase.  (Of course, there are other reasons not to purchase a home, but that’s a different topic altogether.) 
If you have homeownership goals but don’t know if they are realistic, contact me.  I can let you know if you need to adjust your goals, your budget or both – and I can do this BEFORE you set out house hunting so that you don’t waste your time chasing a pipe dream. 

San Francisco Real Estate Fast Facts: Condo Sales May 2007 vs. May 2008

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San Francisco Association of Realtors District Map

Here’s the latest Fast Facts update from the SFAR. Updates are provided almost weekly and each week is a different sector of the market (ie. Condos, Single Family Homes, 2-4 unit dwellings, etc.).
Check back next week for more statistics.

Fast Facts

 

 
 

 

 
Condominiums

 

 
 

 

 
District 1

May 2007

May 2008
Number of Sales

17

15
Median Selling Price

905,000

850,000
Average DOM

30

62
 

 

 
District 2

May 2007

May 2008
Number of Sales

1

3
Median Selling Price

790,000

937,000
Average DOM

2

33
 

 

 
District 3

May 2007

May 2008
Number of Sales

4

3
Median Selling Price

440,000

380,000
Average DOM

50

86
 

 

 
District 4

May 2007

May 2008
Number of Sales

7

5
Median Selling Price

585,000

606,000
Average DOM

37

40
 

 

 
District 5

May 2007

May 2008
Number of Sales

42

32
Median Selling Price

911,000

938,500
Average DOM

29

52
 

 

 
District 6

May 2007

May 2008
Number of Sales

15

8
Median Selling Price

842,000

831,500
Average DOM

26

35
 

 

 
District 7

May 2007

May 2008
Number of Sales

31

32
Median Selling Price

1,295,000

1,075,000
Average DOM

36

50
 

 

 
District 8

May 2007

May 2008
Number of Sales

51

45
Median Selling Price

699,000

775,000
Average DOM

36

47
 

 

 
District 9

May 2007

May 2008
Number of Sales

59

42
Median Selling Price

750,000

795,000
Average DOM

46

77
 

 

 
District 10

May 2007

May 2008
Number of Sales

8

4
Median Selling Price

509,500

349,475
Average DOM

64

34
 

 

 
District 11

May 2007

May 2008
Number of Sales

7

3
Median Selling Price

478,000

539,500
Average DOM

51

79

Open Shutter to the Past: San Francisco in Pictures – Ocean Beach Cleanup (1948)

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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.

The word around the weather channels is that this weekend is going to be NICE in the City!  Today, the weather is supposed to hit the mid 80’s in parts of SF.

And when the weather heats up around SF,  people in flock to Ocean Beach to cool down.  Unfortunately, these same beachgoers bring with them trash, bottles, cigarette butts and general filth.  A photo I took with my cameraphone on a hot April day gives you an idea of the aftermath. 

And apparently, people have been trashing the beach since long before I was born. 

Today’s Photo Friday shows the “Sand Cleanup Machine!”  The newscopy that went with the photo in 1948:

“BEACH CLEANUP STARTS-There shouldn’t be any broken glass, cigaret [sic] butts or other annoying refuse in the sands of Ocean Beach any more, now that the city’s new sifting and cleaning machine is in action. The device, which cost $9433, went to work yesterday afternoon. It will take a month to go through all the sand from the zoo to the Cliff House.”

Hmmm… I’m not sure how well the machine really worked, but if people trashed the beach then like they do now, I’m guessing that machine wore out after just a few days of cleaning. 

Anyhow – it’s too nice outside to be writing long blog posts, so this about wraps things up for the day.  Get out there and enjoy the nice weather!

Oh, and please, if you do come to the beach to escape from the heat in the rest of the City, please – be coureous and take your trash with you when you leave. 

Thanks and Happy Friday! 🙂

People Are Actually Reading!

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As more and more people swing by this here little real estate blog, I find myself getting more and more emails from readers.
Sometimes the readers are home buyers, sometimes the readers are home sellers, sometimes they’re other Realtors from across the country, sometimes they’re people with random questions about real estate.
The other day, I received a letter that was a little inspiring and reminded me that I don’t just write my blogs and my newsletter for myself.  It reminded me that people actually read what I write, and it made my day so much so that I thought I’d share it with the rest of you readers.
Here it goes:

Hello Luba,
You may or may not remember me, but I emailed you asking for a canvas bag a couple months ago. Firstly, I want to say thank you for that. I use it quite religiously every week I walk to the local produce store and it leaves me with a great sense of pride in enabling me to feel I am doing every small part I can in living green (and also saving myself and the grocer money. After all I am working towards a house here!). This initial contact with your voice leads me to my second statement of gratitude.
I have been reading your newsletters and I want to say good job, not only for informing me the buyer, but also for showing us that you are a true entrepreneur and doing everything within your power to help us and in turn help you thrive in this questionable state of the economy. First it’s the bag promotion and then the newsletters. I am looking forward to continued updates and other projects that will keep us excited about our dreams and futures.
By reading your newsletters I have motivated myself to take night classes in real estate at CCSF. It is only the first week and I am already drowning in the possibilities of the economy and learning so much about how real estate is woven within the fabric of our lives, from trends in loans and interest rates related to population spikes, rising oil prices, inflation of commodoties, and the local and federal politics and laws that shape our societies. I hope that by the end of this semester at the very earliest, I will have become an educated property seeker and have this initial spark of motivation to thank you for almost entirely. I look forward to the day when I or another young buyer can financially patronize your services and you might see a financial gain from your hard work, which I am certain you will reinvest in our futures.
Thanks again!
Grant Inaba

Grant’s letter really made me smile!  As a Realtor, I know that I often have an impact on the lives of my clients.  But what I often forget is that anything that I say might even have an effect on people that aren’t yet my clients – and are (for at least the time being) total strangers!  Writing my blogs and my newsletter gives me a great way to share information and insights with people I haven’t met yet – and it’s great to know that someone, somewhere is able to get something out of it! 🙂
Thanks for writing Grant!  :-)   Good luck with the real estate classes!  🙂

Chris Daly Strikes Again – 2 Unit Buildings Targeted

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I’m really not sure what Chris Daly has against homeownership in San Francisco.
Don’t get me wrong.  He’s done a few decent things for affordable housing in San Francisco.  But he’s focused all of his housing energy on the rental sector of the market and has done everything in his power to keep homeownership unaffordable for San Franciscans. 
In addition to opposing much of the new development in San Francisco, Daly’s always had it out for TIC’s and their ability to condo convert.  Even though the ability to convert TIC’s to condos in San Francisco allows middle-income people to buy here in the City, Daly attempts to put up brick wall after brick wall to stop the process in it’s tracks. 
His newest thing - Chris Daly wants to stop the fast-track condo conversion status that vacant 2 unit buildings now hold in San Francisco.  Apparently, there’s just too many conversions occuring for Daly’s taste. 
What does that mean to current owners of 2 unit buildings?  Your dreams of fast track condo conversion may be shattered by the one and only Chris Daly.
What does that mean to potential buyers of TIC’s in 2 unit buildings?  You may want to rethink your long term plans.  You’ll need to make the decision now, to either be OK with the lack of fast track conversion potential in your future home, or to decide to buy a condo instead which means less space and less amenities for the same money. 
I’ll try to keep you posted of any news with this whole situation, as well as opportunities to voice your opinion on the topic as I hear about them.  And if you have comments on the topic, feel free to voice them here on the blog – I’d love to hear your opinions.
The full scoop, per the San Francisco Realtors Association:

Last week, what was merely a possibility became a reality. Supervisor Chris Daly introduced a proposed ordinance that would place two-unit buildings in the condominium lottery and exempt two-unit buildings that are owner occupied as of August 1, 2008. The full text of the proposed ordinance appears below.

Under city law, ordinances must undergo a 30-day waiting period before they may be heard in committee. This is to allow interested parties an opportunity to study ordinances and take positions on them; so the first hearing on Supervisor Daly’s proposed ordinance will not occur until early July, at the earliest.

ARTICLE 7

SEC. 1359. PARCEL MAP.

(a) The requirements of Subsection (c) of Section 1356 of this Code shall apply to Parcel Maps.

(b) The Parcel Map shall conform to the requirements of Chapter 2, Article 3 of SMA and to the Subdivision Regulations regarding detailed format and contents.

(c) In the case of Conversions where a Tentative Map is not required, the requirements of Section 1314 and the requirements of Article 9 on Conversions shall apply, provided that hearings as provided in Sections 1313 and 1332 shall not be required, and the 10-percent low and moderate income occupancy as provided in Section 1341 shall not be required, and provided further that Article 9 shall not be applied to two-unit buildings only where both units are owner-occupied for one year as of August 1, 2008 and where both units remain owner occupied by the same owner occupants as on August 1, 2008 up until prior to the application for Conversion. The Director of Planning, however, shall make the determination pursuant to Section 1385 concerning preservation of low and moderate income housing.

(d) In addition to the requirements of Subsection (c), the owners of record of a two-unit building conversion that qualify for the exemption from Article 9 must certify under penalty of perjury and the Department must verify with the Rent Stabilization and Arbitration Board, and with the Human Rights Commission as applicable, that since November 16, 2004, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8)– (14) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if an eviction has taken place under Administrative Code Section 37.9(a)(11) or (14), that the original tenant reoccupied the unit after a temporary eviction. For purposes of this Subsection a “senior” shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of the lottery; a “disabled” tenant is defined for purposes of this Subsection as a person who is disabled within the meaning of! Title 42 U.S.C. Section 12102(2)(A); and a “catastrophically ill” tenant is defined for purposes of this Subsection as a person who is disabled as defined above, and who is suffering from a life threatening illness as certified by his or her primary care physician.

(e) If the owners of record cannot satisfy the requirements of Subsection (d), then the owners of record shall comply with Article 9, including its Section 1396.1(g)(3), prior to submitting an application for Conversion.

(f) If the Department determines that an applicant has knowingly provided false material information under Subsection (d) above, the Department shall immediately deny the application, or if the applicant has submitted an application for conversion, shall immediately deny the application for conversion. Moreover, the Department, the Director, or other authorized person or entity may also enforce the provisions of this Subsection under Section 1304 or any other applicable provision of law as warranted.

Possibly the Worst Mistake a Seller Can Make

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The other day, I met with a couple that was interviewing agents to sell their home.  We met twice, for several hours each time. 
I gave them the low down on the good, the bad and the ugly about their home.  I suggested ways to make their home more desirable and we spoke at length about the best way to price their property in this market. 
The sellers were avid HGTV fans and had almost memorized the list of the 25 biggest real estate mistakes. 
The phrase that they kept repeating over and over was that one of the worst things you can do when you sell your home is to be greedy about the price.  In fact, Setting Too High of a Sale Price shows up as number 2 on HGTV’s list of the 25 biggest mistakes. 
When I talk to sellers about the potential price of their home, I talk to them about three different numbers: 

  1. The Listing Price – This is more about strategy that it is about the true value of a property.  A listing price is used to generate interest in the property.  In some SF housing markets, it’s still a very safe bet to underprice a property to gain the most interest possible.  The market then naturally determines the true value of the property by letting buyers compete.  In other San Francisco housing markets, the listing price must be much closer to the true value of the property.
  2. The Likely Selling Price – I’m conservative.  I’ve always been conservative.  I tend to focus on promising only that which I am confident that I can deliver.  So – when I speak to my sellers about a likely selling price, I’m really talking about the minimum price that I’m confident the market will pay for the home.  This is the low end of the price range I provide.
  3. The Maximum Selling Price – The fact is that every property has a maximum value.  I call this the “wishful thinking” price.  This is the maximum price a seller might get for her property if it’s priced properly and marketed properly, and there’s ample competition amongst the potential buyers. 

The highest price a seller should ever list their property at is the likely selling price.  Setting the price too high will leave the property languishing on the market while the properly priced competition gets offers and gets SOLD!
Back to my story.
A reminder – the sellers had stated over and over and over that they knew that being greedy about the sales price was one of the worst mistakes a seller could make!
When I called them to follow up to see whether they had chosen a listing agent, they said they had, and they said that they chose an agent because the other agent had given them a higher value for their home!!!
I don’t like to speak poorly of other agents, but the fact is that some unscrupulous agents will give sellers a high value for their property knowing that the sellers will likely list with them once they hear this price.  Once they have the listing, they know that the property will eventually sell, even if it takes months on the market, and several price reductions before this happens.
The problem is – it’s not the agent that decides the selling price, but the BUYER!  The market will ultimately decide what the final selling price will be, not the seller, not the listing agent, not the buyer’s agent – but the buyer.
In this particular case, I actually know of the agent that provided the sellers with the higher value and ended up with the listing.  As of today, this agent has almost a dozen active properties on the market with an average time on the market of almost 70 days!  In fact, only one of this agent’s listings sold in the last six months!  And it sold for around $50K under the asking price after more than 100 days on the market!
I’m not sure whether it’s ironic or just sad that even though the sellers knew what the worst mistakes in real estate could be, they will be making that mistake when they list the property too high. 
Unfortunately, because they already signed the listing agreement with the other agent, I’m not even allowed to give them advice about the pricing of their property and to remind them that being greedy about the sale price will be the biggest mistake that they can make.  But if they just happen to be reading this – then hopefully they’ll get the message.  I wish them the best of luck with the sale.  They have a really cool house in an awesome neighborhood. 
If they just get serious about the price and they’ll not only be avoiding one of the biggest real estate mistakes, they’ll end up with a smooth and stress free sale and a nice profit to boot.

Open Shutter to the Past: San Francisco in Pictures – West Portal Tunnel (1920)

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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 swear – it seems that more and more often, idiots people are driving their cars right into the MUNI tunnel at West Portal Station.  In fact, there was ald 87 year old woman who did it yesterday, there was a drunk guy that did it a few months ago. 

The tunnel was built in 1918, and contrary to what it seems is becoming popular belief, it was always meant for streetcars. 

Over the years, the West Portal area, like most of San Francisco, has gone through a major transformation.  When this photo was taken, the area was just starting to be developed by local self-made developer Fernando Nelson.  By the 1930’s, West Portal Avenue had come to look similar to the way it looks today, with little shops that line the avenue.  By the 1960’s and 1970’s, it was determined that San Francisco needed to improve its public transportation (as if that still isn’t the case today) and so the old West Portal tunnel was demolished and in 1976, a new one was built in its place, along with the surrounding metro station. 

And it’s been there ever since.  The tunnel, people, is just for streetcars.  Please, please, please stop trying to drive through it! 

Have a good weekend, and if you’re driving, please, try to remember to stay on the road and out of MUNI tunnels. 

Where Did the Time Go?

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I have to apologize!  I’ve been a little MIA the last couple of weeks.
If you swing by this here little San Francisco Real Estate blog often, you’ve proabably noticed that it’s been a while since I’ve posted anything more than a few statistics. 
To be honest, I’ve been busy on many fronts. 
I have several listings that I’m preparing to come onto the market early next month.  I have been working on The City Updateâ„¢.  I’ve been working feverishly with several buyers to find them the perfect home. 
And I also took a few days to hit up a conference in Las Vegas where I learned how to help my clients make better decisions surrounding the tax and financing implications of buying or selling real estate in San Francisco.  While the seminar doesn’t really sound  exciting to most people, I learned so much that over the next few weeks, I’ll be sharing some of that knowledge with the readers out there in blogland.
In the meantime though, I’ll just be trying to get back into the swing of regular blog posts.  Stay tuned as I resume the regularly scheduled programming. 
And if you really miss me before my next post, you can follow my daily doings on Twitter.  It’s kind of an addiction.