THE SECOND STORY | February 7th, 2013

Alameda….is there a (w)rap in your house?

Ah, spring is in the air.  Well, it was until today!  It was cold and rainy this morning.  And cold this evening!  This was spring last November when I was in New Zealand!  We will have our spring soon!

Boomer Chick Musings – one chick’s take on what is happening out there!

Quick Glimpses –
Want 100% Financing and tax breaks?(the rich )  WSJ
Want 95% Financing?(more costs for Buyers) CNN Money
Home Improvements UP! NYTime

If you want to see what’s in for paint colors, check out some of my recent FACEBOOK entries!  Become a friend on my biz FB page.

Commentary – 
What’s going to happen to prices?

As long as inventory is super low, prices will continue to climb…especially if all-cash transactions carry the day in bidding wars.  Those properties that are selling for all cash don’t have appraisals and they set the bench mark for the next highest level.

Who is making all the all cash transactions?  Well, lets see.  Very wealthy people.  Very wealthy people who have grandkids and want the gkids to have a nice home.  Buyers who have wealthy folks who will carry the loan for the kids…(heck, interest is pretty much over-rated and non-paid these days).  Buyers who have relatives with cash, close the deal, and then put a loan they (the Buyers) can afford with an institution.   The folks then figure a way to forgive the kids the loan over time (see your accountant).

When, and I don’t profess to know when that is, interest rates start heading up….the prices will begin to fall down.  Some buyers will be not able to qualify at the higher rates and they will have to take themselves out of the market.  With fewer buyers,  sellers will have to offer incentives…like helping with closing costs, or making improvements that they didn’t previously have to consider, or paying points on a loan, or dropping the price to find buyers.

I once did a transaction years ago, in which my Buyer offered stock in a well-known company as a down payment for a house!  The stock obviously got converted to cash during the closing period. That house was on Pearl Street.   I can’t remember how it went down but it really happened.   

When rates get high, sellers with equity may offer to carry a loan for the buyers.  In the old days that was called ‘wrap around loans.’   The seller did the wrap by carrying financing for the buyer, while still paying the original loan.  This was kind of funky but a lot of transactions needed this to get done because the rates were so high (yes, 18% when I got into the business).  This is not allowed now.   Check this out…An all-inclusive deed of trust.

Then again, it was so long ago, it seems it was a dream.  No, it wasn’t a dream.  Gosh, real estate agents need to know their stuff.  Keep it legal.  Keep it ethical.  Keep it right.

ALAMEDA REAL ESTATE THIS WEEK….
Highest and Lowest Priced New Listings this week
Broker Tour Tues (another fun bike ride!)
Active and Pending listings (all types)  33, 71

New  8
BOM back on market 1
Price Change  3
Pending  6
Sold   4
Expired  1
Withdrawn/cancelled

A couple of these are a bit off….one was expired and then put on as new.  Another was withdrawn/cancelled and put on as pending.  ARGH!  Just decided to take them off the mls as I read them.  Call me/email me if you have questions.

ALAMEDA REAL ESTATE AWARDS THIS WEEK…
Winner of the Week I think it is almost sold…3 days on the market.
Got me a makeover  Seller made some sweet improvements on this 1 bedroom, single family home.
I’m out of rehab!  These sellers did a re-do on this condo…not just clean up.  It became…so much better!

Be ready for The Shredding Party!  Feb 23 9-noon!  All my clients are invited (included those I helped years ago…I sent them all invites by snail mail)!  And here’s the bag that I’m giving to those who come!  Email me if you have questions.  It’s for my clients, friends (including my Neighborhood Watch and church group!)

That’s a wrap!  Make it work!  Carry on~

best, marilyn

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Marilyn

I arrived in Alameda in 1973, as a new bride...with husband Carl Schumacher, both of us from Newport Beach. He was embarking on his career as a Naval Architect (i.e. yacht designer) under Gary Mull. Please see the 'ABOUT ME' page in this website! www.MarilynSchumacher.com to see how it has all turned out! I'm so blessed!