A little over a year ago, I set out to earn the GRI designation. After an intensive 14 course series, I have achieved my goal. I now can proudly display the nationally recognized GRI designation which I earned from the Graduate Realtor Institute.
Realtors can earn the designation after successfully completing rigorous coursework covering legal issues, financing, technology, pricing and evaluating properties, residential construction, home inspection, land use, environmental hazards, real estate investment, disclosures and taxation issues.
The Graduate REALTOR® Institute (GRI) designation indicates to buyers, sellers and other real estate industry professionals that I have made the commitment to provide a high level of professional service to my clients by securing a strong educational foundation.
Realtors who have obtained the GRI designation are considered leaders in their profession.
Because buying and selling property has become increasingly complex, a keen understanding of real estate laws, tax issues and market conditions is crucial to the success of your real estate transaction. As a sophisticated consumer, your transaction deserves the knowledge and professionalism of a GRI.
Morgan Hill’s City Manager Speaks at SCRA
Date: Thursday February 19, 2009Posted in: real estate, Santa Clara County, Realtor, Morgan Hill, housing market, City of Morgan Hill
Several times in the past (July, 2008 and October, 2008) I have written about Morgan Hill’s City Manager speaking at our Wednesday morning South County Realtors Association meetings. Ed Tewes does an excellent job on updating us on the current issues affecting Morgan Hill and environs. As would be predicted, the number one topic was how Morgan Hill is braced to handle the existing economic recession.
Mr. Tewes began with the good news. Although the Santa Clara Valley Water District had been on the brink of enforcing mandatory water conservation, it appears that we may escape that restriction as the latest rainfall brings us much closer to the seasonal normal amount. However, that doesn’t allow us to water with impunity, don’t forget.
One of the questions that the city is mulling over that is of interest to many citizens is whether there should be a movie theater downtown. We have an excellent multi-plex at Tennant Station that should serve the city’s needs. The City Council is considering a downtown cinema, but not at the old Granada Theater site. The new structure would be at the corner of 2nd Street and Monterey Road. My personal opinion is that we shouldn’t stretch our entertainment dollars too thin and shouldn’t over-leverage our tax dollars by constructing a new theater downtown.
The City Manager’s brief presentation then focused on the four areas the City Council was currently considering:
- Capturing new regional economic growth: be prepared to attract future growth by investing in our infrastructure and redevelopment
- Focus on the downtown corridor: subsidize growth and use redevelopment monies
- City Council workings: should all council-members participate in policy workshops rather than sub-committees?
- Ongoing economic issues: how should the city deal with the revenue reduction due to no development fees, lower property taxes, transfer taxes, and sales taxes
The City Manager stated an interesting fact regarding development fees and why there were currently none being collected. For the past 6 months, there have been no new construction building permits pulled in Morgan Hill. This is a record. (As an aside, previously I was a civil engineer and was the Morgan Hill plan check engineer for a brief period. Although I’m sure there are currently tenant improvement permits, remodel permits, and a host of other types of building permits being applied for, it’s hard to fathom no new construction permits.)
The last topic Mr. Tewes covered is how Morgan Hill was handling the economic crisis. There have been staff layoffs and compensation reduction. An interesting turn of events is that the City of Morgan Hill and the City of Gilroy are meeting to discuss ways to share costs and services. The cities will be considering regional fire and police protection as well as shared environmental and recreation programs.
South County Realtors Association Wednesday Meeting
Date: Wednesday January 14, 2009Posted in: real estate, Santa Clara County, Realtor, Morgan Hill, South Santa Clara County, listings, housing market
Our January 14, 2009 meeting of the south Santa Clara County Realtors in Morgan Hill included many new real estate listing announcements, several price reductions advertised and 17 sales for the week announced by the Realtors in attendance. I always try to attend these weekly meetings so that I can be informed on new listings that haven’t yet been submitted to the multiple listing service and to mix and mingle with the other Realtors. It is a benefit to my clients that I know so many of the local Realtors personally because it is a definite advantage when negotiating a contract with them.
One home was on tour this morning, 2193 Windemere Court in Morgan Hill. The list price is $3,150,000.
This gated estate is a total of 7,783 sq.ft. on a 2.47 flat acre lot located on the eastern edge of the valley. The main house has 6 bedrooms and 4 1/2 bathrooms and the attached guest house has 1 master bedroom, 3 bathrooms and a pool house below with a full, remodeled kitchen. The backyard looks wonderful for entertaining with a unique pool and outdoor kitchen. In addition there is a vineyard, wine cellar and 6-car garage.
I viewed this home when it was on the market in 2004 and it sold for $1,900,000 at that time. The current owners have greatly improved the condition since then and according to the listing agents, they have put in $500,000 worth of upgrades. However, I feel that the price needs to be more in the middle $2 million range in order to attract a buyer.
South County Realtors Association Wednesday Meeting
Date: Wednesday January 7, 2009Posted in: real estate, multiple offers, Realtor, Morgan Hill, residences, housing market, list price
The South County Realtors Association welcomed Realtors and affiliates back from a two week break with a robust meeting and a great turnout. Over 25 real estate sales were announced and many of those sales were multiple-offer situations. There were two sales announced that were priced over $2 million. A lot of new real estate listings were also announced as well as changes to existing listings - lots of price reductions.
Three Morgan Hill real estate listings were on tour this morning: 408 Scotts Bluff Place ($978,000), 15750 Casino Real ($700,000) and 820 Mercedes Drive ($724,900).
820 Mercedes Drive is a well-priced 6 year-old single story home with 4 bedrooms and 2 1/2 bathrooms. The home is 2727 sq.ft. and it is situated on a 7841 sq.ft. lot. It is a lovely home with a nice floorplan, gated front courtyard, 3 car garage and a backyard with a very nice built-in barbecue, fireplace and patio area. Although the backyard is small, it looks to be very low maintenance (which is sounding better and better to me these days!)
820 Mercedes Drive sold for $1,049,000 in May of 2006. Please contact me if you have any further questions about this or any other listing.
10 Ways to Prepare for Homeownership
Date: Friday November 14, 2008Posted in: real estate, Realtor, real estate buyers, buying a home, homeownership, Morgan Hill Real Estate
1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop your home wish list. Then, prioritize the features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.
What to Leave for the Buyers
Date: Saturday November 8, 2008Posted in: real estate, Realtor, real estate buyers, buying a home, homeownership, close of escrow, home selling
When I represent sellers in a transaction, they often ask me what they need to leave with the house. Unless negotiated otherwise, all fixtures attached to the house must remain, as according to contract. Most Realtors have a story about the dining room chandelier “accidentally” disappearing or the $1000 custom copper kitchen faucet that is replaced with a shiny new stainless steel faucet from Home Depot just before close of escrow. Obvious no-nos.
Beyond this, I always hope that the sellers and buyers can briefly meet at the property shortly before close of escrow. I have attended many of these meetings with my clients and it is very advantageous for the buyers to hear all of the seller’s tips regarding the care of the home and the property. Sellers like these meetings also because if they have a prize rose bush, for example, that needs special care, this is an opportunity to give the special instructions to the buyers. Then I recommend that the sellers never return to the property just in case that rose bush is replaced with a built-on barbecue….
I always give my buyers the necessary utility and media numbers they need to get everything up and running right away. But in addition to this it’s nice if the sellers can leave the following for the buyers of their property:
- Owner’s manuals and warranties for appliances left in the house.
- Garage door opener.
- All sets of house and mailbox keys.
- Code to the security alarm and phone number of the monitoring service if not discontinued.
- Any personal property that the seller and buyer agree on such as paint, spare tiles, etc. that the buyer may need in the future.
My friend and co-hort, Harriet, is going to be joining me on Twitter.com. As quoted from the Twitter website: ”In countries all around the world, people follow the sources most relevant to them and access information via Twitter as it happens—from breaking world news to updates from friends. See what people are doing right now.”
Twittering is as fun (or maybe more fun) than blogging. You can give an update on “What are you doing?” in 140 characters or less, as often as you like. You can form virtual friendships and, for me at least, learn the latest real estate news as perceived by fellow Realtors.
I’ve just recently become a member of the Twitterati and I’m not yet as addicted to Twitter as a lot of the people I’m following are. But I’m looking forward to tweeting back and forth with my friend Harriet!
To follow me on Twitter, look for me under my Twitter id, which is the creatively conceived: GretchenMerrick.
A Brief Primer on Distressed Properties
Date: Monday September 8, 2008Posted in: real estate market, mortgage, REO, real estate, short sale, Realtor, foreclosure, interest rates, refinance
Even with all of the buzz in the media regarding short sales and foreclosures, I still have people asking me basic questions regarding the difference between a short sale, pre-foreclosure, foreclosure and REO. So if you are completely educated on this topic, you might want to go onto my next post because this post will be just going over the basics on these topics.
The first step that a financially distressed homeowner should take is to call their bank and ask to speak to the loss mitigation department. They should ask for someone who can help them with a forbearance agreement or a loan modification agreement. Remember, the lender doesn’t want to foreclose but would prefer to work on options that would allow the homeowner to stay in their home.
Should these agreements not be obtainable, the homeowner should explore selling their home as a short sale. A short sale happens when the unfortunate situation arrises where the owner must sell but their mortgage amount is greater than the amount that they can net on the sale of their home in the current market.
Why do banks accept short sales? Simplistically, they do because the mortgage is in arrears, the property may be in poor condition, the homeowner has suffered a hardship (must be proved), the area or neighborhood has depreciated, or the bank simply has too many REOs (bank-owned) properties on their books.
Why do short sales get such a bad rap in the real estate market? Because of the time that it takes for the seller’s bank to agree to the contract price. This can take 30 to 90 days (I’ve seen longer.) Most buyers lose patience and look for another home to purchase.
What do banks require from the short seller? The package must contain, in addition to several other items, the most recent mortgage statement, hardship letter (for job loss - pink slip, for divorce - divorce filing, for excessive debt - consumer credit counseling, for illness - a letter from their doctor, for death - a copy of the death certificate, for a job transfer - the relocation order), completed financial statement, three months bank statement, three months pay stubs or P&L statements, two years past tax returns and current asset statements. If this is incomplete, the process will be delayed that much further.
If the short sale is unsuccessful, foreclosure is the next step. A foreclosure is the legal process of selling property to satisfy a defaulting borrower’s debt. The preforeclosure process has several steps: Notice of Default given to homeowner, Notice of Trustee Sale setting the auction date, the Trustee Sale auction, and the Trustee’s Deed which transfer the property title to the highest bidder or to the beneficiary (the bank).
The timeline for a foreclosure begins with the Notice of Default (NOD) recorded. On Day 14, the NOD is mailed to the borrower (homeowner). At this point in the preforeclosure timeline, some buyers may offer to buy the mortgage from the owner. Some owners are not accomodating and may not allow any inspections of the home. Also the burden is on the buyer to check whether any liens are on the property. On Day 91 the Notice of Trustee’s Sale is recorded and mailed. Day 115 is the deadline to cure default and Day 122 is the Trustee’s Sale.
There is no right to withdraw an offer made at the Trustee’s Sale. The buyer is responsible for any liens on the property. The minimum bid at the Trustee’s Sale covers the loan balance, accrued interest and the fees and costs associated with the foreclosure. These days, most often there are no bids on many of the properties due to the high minimum bids. At that point the bank becomes the owner and the house becomes a Real-Estate Owned property.
Short sales and foreclosures effect a distressed homeowner’s credit rating differently. Although there are not definite amounts that the scores will be lowered and these numbers may be optomistic, a general rule of thumb is that short sales will lead to a loss of 80 to 100 FICO points and that it will take approximately 18 months for the short seller to be able to buy real estate again at a decent interest rate. A foreclosure will lower the credit rating by about 250 to 280 points and it will take approximately 36 months after going through foreclosure to be able to purchase a home with a mortgage that has a reasonable interest rate.
Purchasing a Home? Why Use a Realtor?
Date: Saturday August 16, 2008Posted in: real estate market, Realtor, housing market, buying a home
The reasons for using a real estate agent are both many and very significant. They include, but are not limited to the following:
1. The seller of the home will have a qualified Realtor looking out for their best interests. They do not pay their Realtor to look out for you. That is my job.
2. Real estate is all that I do. I am constantly monitoring the market and actively looking on your behalf daily. Through my networking, I often have information on new listings before they hit the market.
3. As a Realtor, I have access to information that the public often finds difficult to obtain. I can research any home on the market before my client writes an offer to ensure that my client isn’t paying too much.
4. Negotiating isn’t much fun for the average home buyer. This is one of my strengths and I love to do it. I negotiate on property all the time when an average home buyer will only negotiate on a few homes throughout their entire lives. I save my clients money.
5. Besides price, there are other terms in the contract that also require negotiation. I am completely familiar with the real estate contracts in use and know the ins and outs of negotiating the various terms.
6. Contracts can sometimes seem overwhelming and confusing. I work with these contracts on a daily basis. I will assist you with understanding the components of the contract and ensure that you are protected.
7. There are many other details relating to the purchase of a home to deal with. I align myself with other professional service providers to make the purchase easy. I have great alliances with mortgage brokers, title and escrow officers, and home inspectors. You don’t have to worry about much of anything…I do it for you.
8. My services don’t cost you anything. I work on your behalf for free!
Graduation vs. The Market
Date: Wednesday May 28, 2008Posted in: real estate market, real estate, Realtor, High school, graduation, housing market
For years, I’ve noticed that the real estate market seems to slow during the final weeks of May and first few weeks of June. I was always surprised that graduation could make a noticeable difference in the attendance to open houses and number of buyers out looking at listings. But I got to learn first hand this year how graduation can TAKE OVER YOUR LIFE!
Our daughter just graduated from high school and between the huge party we co-hosted, out-of-town relatives visiting and the myriad of parties to go to in honor of the graduates — now I understand. We are so proud of Emma and wouldn’t have missed a minute of the congratulatory celebrations, even if it did mean removing myself from the real estate scene for a week or two. She will be off to University of California at the end of September and so shouldn’t we be savoring every last minute with her?
So if you currently have your home on the market at this time, please be patient. We weeping mothers and relieved fathers, and all of our various and sundry relatives and friends will be back actively participating in the housing market once the graduation festivities quiet down for another year.
