Realty World – Town and Country

You know, it’s funny. In the last year or so, the Real Estate industry or Business, whatever you want to call it has been a hot topic, even more than usual.
I have worked in this industry for ten years through the “hay day” and into the “new” market. What has changed? Well…
For me not a whole lot We still are a service based industry. I never considered myself a salesperson, the agents that I have trained can attest to that. We don’t have anything to sell, our clients do, nor do we have anything to buy. I am still the same Consultant and Facilitator that I was before, only now I am in higher demand.
When I meet with a client for the first time the meeting is the same now as it was 3 or 7 years ago, I let them know that my job is to explain the realities of the market and make them a better buyer or seller. Staying current on trends on my market area and being a strong negotiator are valuable in any economy.
Real Estate is fun to talk about whether you really do know what you are talking about, or think you know what you are talking about. Just turn on the news and there it is, but what are they saying? When they are giving you national housing statitics do they really matter to you? The answer is, it depends. Every area has its own market so while it is interesting to watch the news and listen to the talking heads read the teleprompter, think to yourself does this apply to my market? What are we seeing?
Like I said, I am still doing the same job I have always done, with ethics and integrity as my compass and I know that I am not alone because most of the same people that I started in this industry with that were here before me and taught me some of these lessons are still here too doing the same job too, and the ones that never learned them are no longer here. I guess that is what is “new” in this market.

Excerpt from CLTA News:
Governor Signs Buyer’s Choice Act into Law
Measure to take Effect Immediately as Urgency Statute
The Governor signed AB 957 (Galgiani), also known as the Buyer’s Choice Act, over the weekend amidst a spate of political gamesmanship that put its passage into question. While the bill had almost no opposition in the Legislature before its signing, it nevertheless faced an uncertain future as one of hundreds of bills that could have been vetoed by a Governor unhappy with the progress of talks over water legislation.
The bill, which takes effect immediately as an urgency statute, prohibits a seller who acquired title to residential real property at a foreclosure sale from requiring a buyer to purchase title insurance, or escrow services from a company chosen by the seller as a condition of receiving offers or selling the residential real property. A transaction subject to the act would not be invalidated solely because of the failure of any person to comply with any provision of the Act. The measure is effective only until January 1, 2015, unless extended by the Legislature.
For commonly asked questions surrounding AB 957, please see the CLTA’s Buyer’s Choice Act FAQ.
Buyer’s Choice Act
Frequently Asked Questions
Q. What is the Buyer’s Choice Act?
A. The Buyers’ Choice Act is a new law that prohibits a seller who acquired property as a foreclosure sale from requiring a buyer to purchase title and escrow services from a company chosen by the seller as a condition to receiving offers or selling the property. It was enacted by Assembly Bill 957 (Galgiani).
Q. Who is a seller under the Buyer’s Choice Act?
A. A seller is defined as a mortgagee or beneficiary under a deed of trust who acquired title to the property at a foreclosure sale, including a trustee, agent, officer or other employee of any mortgagee or beneficiary.
Q. When does the Buyer’s Choice Act become law?
A. On October 12, 2009. The law is an urgency measure and became effective when it was signed by the Governor on October 12, 2009.
Q. Can a buyer agree to accept the recommendations of the seller as to which title or escrow provider to use?
A. Yes, provided that a written notice of the right to make an independent selection of those services is first given by the seller to the buyer.
Q. Does the new law apply to all real estate transactions?
A. No. The law only applies to residential property improved by four or fewer dwelling units.
Q. What settlement services are covered by the law?
A. The law covers title insurance and escrow services.
Q. Are there penalties for violating the Act?
A. Yes. A seller who violates the new law is liable to the buyer for three times all charges made for the title insurance or escrow service. In addition, a seller who violates the law is also considered to have violated their licensing law.
Q. If a person violates the law can the sale be set aside?
A. No. A transaction cannot be invalidated solely because of the failure to comply with the law.
Q. What is the reason the Legislature passed the Buyer’s Choice Act?
A. The Legislative findings and declarations state that the recent troubled real estate market has resulted in a concentration of the majority of homes available for resale within the hand of foreclosing lenders and has dramatically changed the market dynamics affecting ordinary home buyers. The act declares that the potential for unfairness occasioned by the resale of large numbers of foreclosed home requires that protections against abused be made effective immediately.
Q. Does the Act continue indefinitely?
A. The Act is only effective until January 1, 2015 unless it is extended by the Legislature.

Industry lobbyists are urging more tax credits, but home sales seem to have momentum of their own
By Prashant Gopal
BW Magazine
Homebuilders and Realtors are lobbying Congress to keep alive the tax credit for home purchases and to make it available to more buyers. They say the $8,000 credit—which is for people who have not owned a home for three years or more and expires after Nov. 30—has boosted demand for low-priced homes, many of them foreclosed and in need of repair. But, they maintain, it has done nothing for the “move-up” market, let alone the luxury segment. Many say the housing market will falter unless the credit is extended, doubled in value, and given to any buyer. “The giddiness we see out there [about a recovery] is without merit,” says Richard A. Smith, chief executive officer of Parsipanny (N.J.)-based Realogy, the parent of Century 21, ERA, Coldwell Banker, and Sotheby’s International Realty.
But some little-noticed data indicate there’s more strength in housing than the industry recognizes. Prices have stabilized, and even appreciated, in the middle- and high-priced segments of the market in many cities, not just in the low-priced segment that is most directly helped by the home-buyer tax credit. That’s according to the Standard & Poor’s/Case-Shiller tiered price indexes for 17 metro areas, which were released on Aug. 25 but received relatively little publicity.
Seasonally adjusted prices rose in each segment of the market (low-, medium-, and high-priced) from May to June in cities including Boston, Washington, and Chicago. High-end prices went up even in hard-hit Phoenix. Las Vegas, where foreclosures are running extremely high, is the only one of the 17 metro areas that saw a price drop in all three price categories in June.
“The tiers are really revealing,” says economist Karl E. Case of Wellesley College, who developed the index with Yale University economist Robert J. Shiller. “[The rising prices] can’t be just first-time buyers.” While prices could fall after the expiration of the tax credit, says Case, “It’s not a knockout blow if the expansion is broad-based.”
Those arguing that housing needs government life support say most of the sales action is in foreclosed homes, which tend to be super-cheap and are being bought as starter homes or investment properties. But a National Association of Realtors member survey seems to contradict that theory. Even as home sales rose, the share of first-time buyers dropped from 53% in March to 30% in July.
As for the argument that luxury is dead, Toll Brothers (TOL), the nation’s largest luxury homebuilder, announced last month that in its May-July quarter it posted its first year-over-year increase in signed home contracts since 2005. Toll Brothers even started cutting incentives in some markets, mostly in the Northeast and mid-Atlantic states.
True enough, the housing market remains weak. Increasing the tax credit to $15,000 for all homeowners through the end of next year would result in 675,000 additional home sales, according to an analysis by Mark M. Zandi, chief economist at Moody’s Economy.com (MCO).
There is evidence that sales fall when credits expire: In California, homebuilding slowed in July after a $10,000 credit for newly built homes expired. And with the rush of summer buying over, the market remains vulnerable to rising unemployment as well as a new wave of foreclosures, which could flood the market and drive down home prices. The Mortgage Bankers Assn. said last month that 9.24% of residential mortgage loans were delinquent as of the end of June, the most since recordkeeping began in 1972.
On the other hand, the housing market might be able to absorb more foreclosed properties as long as banks dribble them out slowly, says Rick Sharga, vice-president of Irvine (Calif.)-based RealtyTrac. “We may be in an unusual period of time where the market is recovering in spite of the record number of foreclosures,” he says. “It’s hard to explain, but that’s what the numbers suggest at the moment.”
With prices down and mortgage rates low, housing affordability is the best in years for those who can qualify for a mortgage (admittedly no easy feat). Michelle Meyer, an economist with Barclays Capital (BCS) in New York, says that while the tax credit did contribute to the lift in sales and prices, “A lot of it has to do with greater affordability and a brighter economic outlook. Even if you say some of the gain is artificial, it’s still true that we’re seeing an increase in housing demand, and that shows fundamental strength.”

Sometimes buyers don’t even know what they should expect from a Real Estate Professional. I think their hope is that they will be treated professionally, be shown all the homes that match their criteria and have a good negotiator representing them.
When deciding who you’d like to put your trust in, here are a few questions you can ask:
Are you a Realtor®? A new buyer may not even know the difference between a Realtor® and an Agent.  Realtors® adhere to a strict code of ethics and pay an annual fee to belong to their local & state association.  They are kept abreast of issues as they arise via CAR® (California Association of Realtors). Wouldn’t you like someone who adheres to a strict code of ethics and is continually learning about new challenges for buyers and sellers? Agents that do not belong to their local association are not allowed to call themselves Realtors®.  Did you know that?
Do you have any Designations?  Designations are earned by Realtors® that exceed the minimum standards required to pass the California real estate license exam. It is actually quite easy to cram for a test and pass, but it is another thing altogether to continually be studying and working the business from all angles.  It is both costly and time consuming for the Realtor® to earn Designations.  If you work with someone with Designations, you know they are committed to excellence.
 What kind of experience do you have?  It might help you to know how long your potential agent has been in the business. It is not necessarily a bad thing if they are new to the industry as long as they have a good mentor working alongside them.
In most cases, your gut instinct will not lead you wrong. My mom’s favorite phrase, “You Can’t Fool Mother Nature”, meaning that the feeling you get in your gut when something feels wrong will rarely lead you astray, is a valid barometer for you to check.   
When you feel you’ve found the right professional for you, PLEASE be loyal to them. It is so very frustrating in this business to work diligently with your buyers only to find that they are “two timing” you, or worse.  Working with multiple agents, and not committing to one is NOT in your best interest as a buyer.  Please remember that it is time, effort and expense on the part of the professional representing you to locate properties, drive you around town and spend numerous hours with you and then learn you are not loyal to them.  You may or may not be asked to sign a Buyer Representation Agreement. Either way, please be honest with the professional you choose and let them know if at any time you are dissatisfied.

As a resident of Shadow Cliff homes in Pleasanton and speaking as a Pleasanton Realtor, I can say our neighborhood is quite busy! There are currently 2 active homes on the market ranging size from 1,135 sf. up to 2,165 sf. and ranging in price from $509,000 to $699,950. In the last 35-days 3 homes in the neighborhood have gone pending. Two of these homes are priced at $559,000 and one at $569,000. Last year, all year long we didn’t have this kind of activity in the neighborhood.
As an original owner, I purchased my home in Shadow Cliff in 1988 and at the time had no children. Since then of course things have changed and have a daughter now in college and my son still at Amador High School. Many know Pleasanton is well known for its educational system and thus many people want to move here.  Shadow Cliff is a wonderful community and very friendly.