Driving around the Trivalley, you will notice a lot of open house signs during the weekends. Open houses have been a staple of real estate marketing for a long time. In more recent years, as the technology of virtual tours and videos have progressed, the effectiveness of open houses could be questioned. Nonetheless, many real estate agents still hold open houses and many home sellers today request them from their agent.

What home sellers sometimes fail to consider, are the dangers behind holding open houses. As most everyone knows, open houses are open to the public. Guests of open houses do not need to be accompanied by their real estate agents, as they would be when they make appointments to come see your home at a specific time and place. As a result, you are exposing your home to complete strangers. While some of these strangers will be legitimate buyers in the market, others will be neighbors just curious to see the inside of your home, individuals killing the afternoon and looking for decorating ideas, a potential buyer or seller wanting to meet a real estate agent–or worse of all–a possible thief looking for your valuables.

With so many unknown variables, here are some must take steps a homeowner should take prior to opening up the doors for an open house:

Ensure that your real estate agent meets and greets everyone at the front door to serve as the first line of defense against suspicious individuals.

Put away all of your medication drugs and empty the medicine cabinet. It has been known for individuals to go through bathroom medicine cabinets looking for pain killers and the like.

Any item of monetary or sentimental value should be boxed and put away. Small valuable items such as jewelry, cash and watches that typically sit on top of a dresser or on the bathroom counter are too tempting to just leave out.

Family photos should also be put away to protect the privacy of your family members. Not only will this depersonalize your home and help the potential buyers feel more ‘at home’, it will make sure that the wrong stranger does not have specific information about your family.

Put away all mail and bills. Identity theft is a major problem in our country, and by leaving your personal account numbers in view, will open yourself up to this issue.

So while there are some advantages of getting exposure to the market with open houses, there are also some dangers which all home buyers should be aware of to avoid any misfortunes.

Chris Kamali is a TriValley Real Estate Agent, helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.

So what do gas prices have to do with the real estate market? Well directly, probably nothing! Although the argument can be made that people can again afford to commute and thus secondary markets outside of the main business centers will thrive again. Or someone can argue that the lower prices in fuel will help the economy and as the economy improves, so does the job market and with the government lowering interest rates, buyers will again be able to afford homes and this will be the spark we need in consumer confidence.

While all of the above may be true for the market, what I take from the situation is much greater and valuable.

What we (again) learn from this situation is that the experts cannot predict anything correctly. Wasn’t gas going to be $8 per gallon by the end of the year like it is in Europe? Weren’t we all going to stop driving SUVs? I have listened to many economists provide their prediction on the real estate market, the fuel market, the job market and they are all as accurate as the weather man (who said it was supposed to rain today??) The truth of the matter is that no one knows what is going to happen next.

Just as quickly as gas prices went up, they came back down even faster. Just as quickly as home prices went up, they came back down even faster. So who is to say that things will not again ignite going into a buying frenzy as prices are at levels not seen in the past five plus years.

Whatever your crystal ball shows, stick with it. Don’t let the predictions set forth by the so called “experts” make your decision for you. Just as gas prices and home prices went up, they came down. And just as they came down, they will again go up. The market is a roller coaster ride that never ends - when you want to get on this ride is up to you.

Chris Kamali is a TriValley Real Estate Agent , helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.

The Housing Assistance Act of 2008 now includes a change that takes away much of the benefits to this plan.  The following article in the Wall Street Journal speaks in details to this change affecting the modification of the homeowner’s tax exemption.

Chris Kamali is a TriValley Real Estate Agent, helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.

It appears that it would not be a good time to refinance your home in Pleasanton due to the current lending guidelines.  As it stands right now, you have what is called an 80/10/10 loan.  That is an 80% 1^st mortgage, 10% second mortgage / equity line and 10% down payment.  The lending market today has seen virtually all of the secondary financing (home equity lines) disappear.  The investors today are hesitant to lend up to a 90% loan to value and to be in second position behind the initial lender who is lending the 80%.  Since the secondary mortgages are gone, we are seeing lenders lend up to 90% with one loan and it will need to include the additional expense of  PMI.  So, based on the fact that you have a good rate of 6.25% on your first and a steal at 4.75% on your second without paying any PMI, you are in good position and should not consider refinancing your Pleasanton home at this time. 

Chris Kamali is a TriValley Real Estate Agent, helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.

So, are we at the bottom?  Is this the time to buy?  Quite honestly, I don’t know.  But here is something interesting to think about.  Maybe you should buy BEFORE we hit the bottom (this is not a typo).  Here’s why.

If we are 6-18 months away from the ‘bottom’ and prices are going to slide down further, then maybe it is a good idea to wait it out until then.  However, if we are 3-6 months away from the bottom, then I think that would be the best time to buy. 

(Keep in mind this analysis is only for individuals who are currently renting and thinking of entering into the housing market.  If you currently own a home and are thinking of moving up, you have no worries because you would be selling and buying in the same market, whether it is a hot or cold market)

Let’s take a look at the chart I have drawn up.  Letter “A” represents the market if we are 6-18 months away from the bottom.  With a possible year and a half of price correction left to go, it would most likely be wise to wait on the sidelines until things were closer to letter “B”. 
The only way we know we have hit the bottom of the market by definition is only after we have bounced back as represented by letter “C”.  As the chart suggests, the prices we see right before the bottom would be similar to the prices right after the bottom, hence a buyer buying at point “B” or point “C” would be buying while the market price would be the same.  While the market price would be similar in this scenario, there would be a significant difference in the purchase price and terms.

At point “B” the market has still not recovered and the economy is suffering.  As a result, interest rates will be lower and banks would be competing for the business of the buyers.  Capturing a lower interest rate, can save you thousands in the long run even if you pay a higher price than someone who buys the house for cheaper but pays much more in interest over the years. 

Further at point “B” the other buyers are still on the sideline waiting and waiting and waiting.  This allows you to be selective and not have to fight over best house deals in the neighborhood.  When you put in your offer, the sellers are nervous of losing you and your offer and as a result would be willing to negotiate price and terms much more aggressively and in your favor.

In review, point “B” allows you to purchase in an environment which would share similar market prices compared to the market once we bounce back from the bottom, you are able to capture in most cases a lower mortgage interest rate, pick out your favorite home from a large selection and negotiate a better price and terms with sellers who are afraid they may lose you if they don’t deal…sounds good to you?

And what if you wait until point “C”.  Point “C” represents the market after prices have jumped back up and everyone knows we are back at a regular increasing market.  The media is back on the housing bandwagon remembering that real estate is still the best investment.  The federal reserve is again raising interest rates making mortgages more expensive.  Open houses are busy with buyers and the best homes on the block receive multiple offers.  You put in an offer and the seller now knows that we have hit the bottom and they are no longer willing to negotiate as they did just months ago.

So, are we at the bottom should not be the question because we will never know until we bounce back.  Are we 3-6 months away from the bottom…now that’s a good question!

The stimulus package signed by the President has made a major impact on the conforming loan limits and has opened up many new loan options for a major sector of the buyers in the market. One of these loans (FHA), which was popular in the 1990s but had lost their practicality when Trivalley home prices surpassed the loan limits which were available at the time. Today, the loan limit for an FHA maxes out at $729,750 for the Trivalley and serves as a viable option for individuals with little down payment and less than perfect credit reports, but still make a healthy salary. With the amount of buyers which this opens the door upto, will we see a difference in the market soon? Guess we will have to wait and see.

Below, I have included some highlights of the FHA loan which can be utilized by any homebuyer, not just first time homebuyers. If you have any questions or would like to see if these is a viable option for you, please contact me!

• 97.15% LTV-Low down payment-less money out of pocket
• Any buyer-not just first time buyers.
• Long-term financing-30 fixed, yearly adjustable, intermediate arms.
• We can underwrite, draw docs and fund the loan.
• All loans go to FHA for final approval.
• The loan limit is $729,750 based on County
• 100% gift allowed for down payment and closing costs.
• Can pay revolving and installment loans to qualify.
• Do not count 401K loans in debt ratios.
• Non-occupant co-borrowers are OK-blended ratios.
• Easier qualifying criteria-not fico driven.
• Bankruptcy-Chapter 7-2 yrs. from discharge.
• Chapter 13-12 mos. on time payments
• Alternate sources of credit are ok.
• FHA loans are assumable to qualified borrowers.
• 31/43 debt ratio guidelines-can go higher with good borrower.
• Full documentation only.
• Property must be in good standing with no health and safety issues.
• Seller must pay tax service fee at minimum-approx. $75.
• Borrower must have valid SS number.
• Owner occupied only and moves into home within 60 days.
• Up-front MIP-1.5% plus origination fee
• .5% monthly mortgage insurance for 30 yr. loans and .25% for 15 yr.
• MMI-monthly mortgage insurance must be in place for a minimum of 5 yrs.
• Seller can pay all closing costs up to 6% of the purchase price.
• No reserve requirements on a 1-2 unit purchase.
• Purchase and refinance transactions are allowed.

Chris Kamali is a TriValley Real Estate Agent, helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.

Loan programs and rates are changing constantly. 100% financing wasn’t around when your grandparents were buying their first home. And while the banks have pulled most of these programs back, 100% financing programs still exist for certain borrowers, including special first time homebuyer programs. And that’s just the tip of the iceberg for there are many different options that determine how long your interest rate remains the same and how that affects your monthly payment.

In addition to the changing loan programs out there, you should really find out how much home you can afford before looking at the big homes on the hill. Knowing the exact price range of homes you should be looking at makes the process much more efficient, seamless and enjoyable.

Wouldn’t it be nice to know the monthly mortgage payment of each individual home on your list before you actually got out there in person? If you are looking for a referral to some of the top mortgage brokers in the trivalley, contact me!

Chris Kamali is a TriValley Real Estate Agent, helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.