Barry Ripp ~ East Bay Area Real Estate

1. Don’t buy if you don’t plan to stay
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market.

2. Start by shoring up your credit
Since you probably will need to get a mortgage to buy a house; you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Choose carefully between points and rate
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

4. Hire a home inspector
A home inspector can let you know about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.

5. Get professional help
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an experienced agent, who will have your interests at heart and can help you with strategies during the bidding process.

6. Bonus Tip: Be patient
Buying a home is one of the largest purchases most people will make in their lifetime. The key to avoiding buyer’s remorse is to be completely comfortable before signing on the dotted line.

Union City Eases Up (slightly) on Rental Owners: Rental property owners in Union City will now have until July 31 to comply with the businesses license requirement.  Any property owner renting a single family home, condo or multi-family development must have a business license. Those who do not currently have a license must also pay one year in arrears.

Union City staff will be sending a letter that includes this updated information to property owners early next week.

For more information please contact Christina Nitoff at (510) 675-5343.

On  last Monday, April 5, banks nationwide began offering the Home Affordable Foreclosure Alternatives Program (HAFA). This new federal program will try to help homeowners avoid foreclosure by offering incentives to lenders that offer a short sale or deed-in-lieu of foreclosure.

Earlier this week, the National Association of Realtors (NAR) reported some lenders and loan services have been slow to implement the program or are unaware of its availability.

NAR has prepared resources to help REALTORS® answer questions about HAFA. Their new short sale Web page includes HAFA forms, breaking news and Fannie Mae and Freddie Mac real estate commission policies.

Call your Realtor today for more info, or contact me and I will be happy to forward you some information.

~ Barry Ripp emailto: barry@barryripp.com

www.barryripp.com 510-794-7690

A new national survey gauging attitudes toward housing finds that 65% of Americans still prefer owning a home, despite the challenging economic environment and the housing downturn. The Fannie Mae National Housing Survey, conducted between December 2009 and January 2010, polled homeowners and renters to assess their confidence in homeownership as an investment, the current state of their household finances, views on the U.S. housing finance system, and overall confidence in the economy.

The survey revealed that homeowners and renters alike are taking a more cautious approach to homeownership. 23% renters polled said they will buy a home later than once planned. In addition, Americans with traditional, fixed-rate mortgages with predictable payments are significantly more satisfied than those with other types of mortgages. Respondents cited non-financial reasons such as safety (43 percent) and quality of local schools (33 percent) as driving factors in wanting to own a home, ahead of financial considerations.

60 percent of consumers believe that buying a home today is harder than it was for their parents, and 68 percent think it will be even more difficult for their children. 88 percent also believe that walking away from an underwater mortgage is not acceptable.

 ~ Barry Ripp    www.barryripp.com

Are you ready to paint that old house?

Well, if it’s built before 1978, you may be in for a surprise. That’s because lead-laced paint was used in more than 38 million homes before being banned for residential use in 1978. And starting in April 2010 (next week), the EPA’s Renovation Repair and Painting (RRP) rule takes effect; it requires that anyone paid to do a job that will disturb lead paint must:

• Be EPA certified
• Follow specified safety practices to contain and properly clean the work area, minimizing the generation and distribution of lead-paint dust
• Pass a final cleaning inspection
• Provide homeowners with proper documentation, including the Renovate Right pamphlet and a pre-renovation form

The bad news: Renovation prices may go up, what with more certifications, work requirements and inspections. The good news: Job sites will be safer for contractors and homeowners.

If you’re hiring a remodeler or painting contractor, know what to expect from them. Check these important facts about the dangers of lead, checking for lead in your home and keeping your family safe.

Good luck with your painting project.

This information was obtained from the “Handyman Club of America”

The Federal Reserve announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information … suggests that economic activity continues to strengthen and that the labor market is stabilizing,” the Fed said in a prepared statement.

“Household spending is expanding at a moderate rate, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly,” the Fed said.  “However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls. 

“While bank lending continues to shrink, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels” the Fed said.

The Fed also said it would end its program of purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help keep home loan rates low. That program will conclude at the end of this month when the Fed’s mortgage bond holdings reach the $1.25-trillion limit it set last year.

Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to C.A.R.’s 2009-2010 “State of the California Housing Market” report released today.

 California’s median home price hit bottom in February 2009 at $245,170.  Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009.  The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.

 Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009.  Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year.

 So if you are thinking of buying, what’s stopping you? Contact me and I can show you your next step, why wait any longer?

1. Cabinets
Cherry will remain the most popular wood for kitchen cabinetry, followed closely by maple, while alder increases in use. As for the finishes placed on those cabinets, medium natural, dark natural, glazed, and white painted will all be common.

2. Flooring & Counters
Ceramic and porcelain tile, as well as natural stone tile, remain popular kitchen flooring options, but hardwood will dominate the kitchen landscape more than ever in 2010. For countertops, granite continues to be the most popular option, but quartz will nearly catch up in popularity. For backsplashes, ceramic or porcelain tile and glass will serve as the primary materials.

3. Flexible Faucets
Standard kitchen faucets will become less standard in 2010 in favor of more convenient models. Pull-out faucets continue to increase their market dominance, while pot filler faucets will also become more prevalent. Kitchen faucets will most often be finished in brushed nickel, followed by stainless steel, satin nickel, and polished chrome.

4. Refrigeration
Bottom freezers and side-by-side refrigerators remain a popular option. A surprising trend is the extent to which under-counter refrigerator drawers are being used in the latest kitchen designs. Perhaps even more surprising is that under-counter wine refrigerators have been recently specified by half of kitchen designers.

5. A Range of Cooking Options
The tried-and-true range continues to serve as the workhorse for cooking, although the combination of a cooktop and wall oven is beginning to overtake it. Gas will remain as the most popular type of cooktop over electric.

6. Dishwasher-in-a-Drawer
Standard dishwashers, with the traditional door that pulls from the top down, will once again be easily the most common type in 2010. However, an increasing number of dishwasher drawers will be installed in kitchens this year for their convenience and their ability to wash small loads of dishes in each drawer, thereby saving water and electricity.

7. Appliances Stainless steel appliances will continue to be a popular choice of kitchen appliances, followed by black then white.

~ Barry

Information obtained in part by the National Kitchen & Bath Assco.

When something breaks down in your home, wouldn’t it be wonderful if you could pick up the phone, request a service call, pay a nominal service charge and have the problem fixed? In theory, this is how a home protection plan works.

A home protection plan, also called a home warranty, is an insurance policy that insures homeowners against defects in the major systems of their home. Most policies cover the heating, plumbing and electrical systems as well as built-in appliances like the stove, dishwasher and garbage disposal. Some companies will cover movable appliances like the refrigerator, washer and dryer for an extra charge. And some policies even include roof coverage-if you pay an additional fee.  The basic warranty plan costs about $300. per year.

Home protection plans are popular in the real estate industry because they provide a relatively inexpensive way to take care of home defects that develop soon after the home sale closes. For example, let’s say the water heater quits working the day after closing. That could be a fairly high expense for a new homeowner; however, if there is a home warranty in place, the hot water heater will probably be replaced for the nominal cost of a service charge…about $45 per call.

Some sellers offer to pay for a home protection plan to cover the home for the buyer for one year. If problems arise during that year, the buyers simply call the warranty company and pay the service charge. The warranty company pays for the repair or replacement.

Seller coverage is also available to cover the home during the listing and sale period. Seller coverage works the same as buyer coverage except that there are usually more limitations on the coverage. For example, the furnace is usually covered under both buyer and seller coverage. But, the amount of coverage offered under seller coverage is often less than the amount that’s available to the buyer if the furnace breaks down after closing.

One seller who had signed up for seller coverage was able to have some of the defects that were discovered during the buyer’s inspections fixed by the home protection plan company for the cost of a service charge. This was a great deal for the seller because it saved him money and he didn’t have to pay the policy premium until closing. Seller coverage is usually charged by the day.

If the seller of a home you’re buying does not offer to pay for a home protection plan, you can pay for one. Be sure to order it before the closing date.

 ~ Barry Ripp

Information was obtained in part by the CAR & Dian Hymer (who is a nationally syndicated real estate columnist.)