Posts Tagged ‘Atherton’

Are Bank Owned and Short Sales Always a Good Deal?

By Russ Boyd | January 25th, 2010 0 Comments

All home buyers have one thing in common: Everyone wants a great deal. The buying public seems to think that “great deal” equals foreclosure, short sale or bank-owned property. The truth is that these properties may appear to be bargains, but in many cases you could be buying someone else’s problems. So the real issue is whether the foreclosure, bank owned or short-sale property you’re considering is a bargain or problem. If you’re looking for a bargain property, here are some key issues to consider:


1. What is your time line for purchasing?
You may find the perfect short-sale property, and the seller may accept your offer. The challenge is that you don’t have a deal until the bank approves the short sale. At many large lenders, a single short sale processor may have hundreds of files to handle at one time. I’ve experience delays of up six to get an offer approved. The wait can be extremely frustrating and it can also be costly.

For example, months from now the offer made today you may be too high or to low. Also, interest rates are more likely to go up rather than down during the coming year. And, just because the seller has accepted your price, it doesn’t mean the bank will. You will have a better shot at buying a short sale where the bank has preapproved the sales price. It still may take a long time to close, but not as long as it would if the price was not preapproved.


2. Are you prepared to be in a multiple-offer situation?
You’re not the only one looking for a “bargain.” Many buyers are searching for distressed properties and the approval process takes so long, multiple offers are common. The sellers agent or lender will not tell you about the details of other offers.


If another offer comes in at a higher price and at better terms, the bank is obligated to take the best offer. If the property is a short sale, the seller’s signature on the document merely opens the negotiation – it does not finalize it. Furthermore, the seller/lender may continue to market the property even after they have signed a contract with you.

3. Ask the agent if the seller participated in the “Cash for Keys” program
The best candidates for good bargains are those properties where the sellers are still occupying them. Many banks have a program called “Cash for Keys.” This program pays the owners of foreclosure and short-sale properties money to keep the owner from trashing the property when they move out. It’s not uncommon for disgruntled owners or tenants to remove or damage appliances, plumbing and electrical systems. Cash for Keys is designed to minimize these behaviors.


4. Beware of tenant occupied and vacant properties
It’s never a good practice to purchase a property without doing a physical inspection. Also, be sure you have stipulated the right to make a final inspection prior to closing.  This is especially important with distress sales.  Also, if the property is tenant occupied be sure the contract states the property must be delivered to you vacant.  Trust me, you don’t want to be responsible for evicting a tenant.   Also, the longer a house stays vacant, the more likely it is that problems will develop.  Not only vandalism, but rats and mice are more likely to move into vacant properties. Rodents can chew through the wiring and generally wreak havoc with the home’s electrical systems.


5. Is the deal more important than your lifestyle?
A property can be a great deal in terms of the price, but is it worth it if it’s in a poorly rated school district or if you end up with an extended the commute? A “bargain price” won’t make up for a poor floor plan, airplane, train or traffic noise or the occasionally whiff of the sewage treatment plant? When you purchase, it’s important that you take all of these issues into consideration rather than focusing exclusively on the price. A property with any of these types of problems will be harder to sell in the future.

As you can see, it’s important to consider the price in conjunction with the quality and the convenience of your lifestyle once you move in.

Of course there are good distressed property deals out there. Nevertheless, don’t limit your search. Keep in mind that, depending on the neighborhood and price range, anywhere for 10 to 50 percent of the sales may be distress sales. This means that 50 to 90 percent of the available homes are likely occupied by owners that are maintaining their homes and in better neighborhoods. In the long run, they may be a much better bargain.


A true bargain is when you find a home in the neighborhood and price ranges that fits your lifestyle. A house you will be proud to call home.

  • Get new posts via email
  • Subscribe

Moving at the Speed of Opportunity

By Russ Boyd | January 11th, 2010 0 Comments

You’ve probably heard the old saying “You Snooze, You Lose!” I’m told that the line came from the character known as George Owens on the 80’s sit com, “Mr. Belvedere.”

I think the words spoken by “George Owens” say a lot about where some “homebuyers” are relative to this market. Hopefully that’s not you.

Some people are sitting on the sidelines…taking a wait and see attitude, waiting for the market to “change,” hoping that some of the perceived risk will be reduced by more stable credit and mortgage markets, and wishing that just one more piece of positive news would filter out of the media to convince them to become active and take action.

Well, guess what? It just isn’t going to happen that way. Not if you want to capture the market at the bottom, at least. Let me explain why, and how to avoid “staying sidelined,” so you are in the right position to capture current opportunities.

Imagine for a moment that you are attempting to merge onto the freeway, where traffic is moving at 65 miles per hour -  now picture yourself coming to a stop.

Being behind somebody that stops on an on ramp waiting for the “right opportunity” can be scary, yet I imagine it’s happened to all of us at one point or another.

So, when you’re at a standstill, how hard it is to find just the right opening between the rapidly moving cars. You know how hard it is to get your car to go from zero to 65 miles an hour in a very short distance and merge into flowing traffic. It’s not easy.

Now, picture yourself in this same situation – only this time, you continue moving down the on-ramp, and, once you find the right opening to merge, you join effortlessly into the moving traffic.

Simply put – it’s hard to find an opening when you are standing still. You know this – but did you know that this principle is not just a question of physics – it’s a question of money and opportunity? And did you know that it applies to many would be home-buyers?

Movement creates opportunity. It invites new things to happen. Movement means you are ready to take action – that you are responding and adapting to the changing marketplace.

As the market continues to evolve we are past the time to watch, to wonder and to wait. Now is the time to pay attention! Watch what’s happening, and look for your opportunity. Believe me the growing positive statistics, like those at our Market Activity website, www.bayareamarketmetrics.com reveal that there are plenty of buyers ready to jump at the right opportunity. Remember, if you are sitting on the sidelines, all you can do is watch.

But what about those that “just got lucky”, right? Well here’s how people get “lucky”, they (1) they get into motion, (2) they get their financing lined up, (3) they find a great agent who welcomes their business and they start looking for the right home (4) They make an offer that fits the circumstances, (5) and THEN they “get lucky”. In other words, they are people willing to move at the “speed of opportunity”.

Remember, just like you can’t easily merge onto a highway from a dead stop -  neither can you find the best home buying opportunity unless you are moving at the “speed of opportunity.”

If you want to move at the “speed of opportunity”, a good place to start is understanding the current level of market activity. Our Bay Area Market Metrics Report can be viewed at www.bayareamarketmetrics.com.

  • Get new posts via email
  • Subscribe

Ten Reasons To Love Menlo Park

By Marcy Moyer | August 12th, 2009 2 Comments

1. Schools, Schools, Schools! Menlo Park, like Palo Alto and Mountain View, have some really outstanding schools. Students in this district are consistently high performers and many gain admission to top universities after high school.  There are two public elementary school districts:  Menlo Park and Las Lomitas. As well as many private schools which include: Trinity, Phillips Brooks, St. Raymond, St. Joseph’s (part of the Sacred Heart Schools), and Peninsula School.

2. Burgess Park. located next the Civic Center, this park features a little league baseball field, a regulation baseball field, an open play field, lighted tennis courts, a soccer field, picnic areas, and children’s playgrounds. The Burgess pool, rec center, sports center, and skate park are adjacent to the main park area. There’s also a lovely and relaxing duck pond here that’s a great place to relax and read a book.

3. Huge Library. Menlo’s library (a quick walk from Burgess Park) is one of the town’s focal points, especially for children and families. My two sons always enjoyed the Summer Reading Programs, and Storytimes are another free, entertaining, educational, and kid-approved favorite. Professional storytellers spin their magic at scheduled times throughout the week. On certain days, the stories cater to younger or older kids. The online live homework help program is one of the library’s new services. It’s totally free, and many of the tutors also speak Spanish.

4. Annual Connoisseurs’ Marketplace. This is the summer festival for summer festival lovers – and one of the best events in the area. There’s hardly anything more enjoyable than wandering a tree-lined street while local bands play during this popular festival of visual, performing, and culinary arts. It’s always the third weekend of July on Santa Cruz Avenue. This year, Organic Alley will highlight samplings of the finest organic food the area offers. Old favorites like the cooking demos and the kid’s fun zone will be up and running. The festival is always as eco-friendly as possible, and it embodies community values and the sense of civic responsibility cherished in Menlo Park and the Bay Area.

5. The Guild. This independent movie theatre is the place for real film lovers. Hard-to-find independent and foreign films play here, and the space itself has art-deco touches everywhere and velvet curtains surrounding the movie screens. Plus, it’s free refills on Mighty Leaf Tea AND all you can drink coffee (two great touches that make movie-going a lot less draining on your wallet and more pleasurable.) This is not your basic space-age blockbuster twelve screen Cinemax, and sometimes you have to put up with crackly sound or finicky seats. Nevertheless I’ve never had a bad experience here–the movies are always thought provoking, and sometimes the manager thanks you personally for coming.

6. Santa Cruz Avenue. This is the main drag of Menlo Park, where great shopping and world-class restaurants are crammed in side by side. You have endless options here – craft shops, clothing boutiques, interior design stores, bistros – literally anything you need. During lunch time it’s crawling with business professionals eating at sidewalk tables, and there are always shoppers resting on benches or teenagers hanging out in the coffee shops.

7. Every Kind of Home. Wonderful housing options here as well.  New homes, green homes on Willow, ranch homes on huge lots, condos, town homes, and tons of rentals near downtown ensure you’ll find exactly what you’re looking for in Menlo Park when it comes to your living needs.

8. Caltrain Station. You can get anywhere from here! You can also get here from anywhere on Santa Cruz Avenue, which is the biggest plus of all. This station is literally steps from Cafe Barrone and Kepler’s Books, so if you arrive a little early you can always grab a magazine or a cup of coffee to ease your wait.

9. Kepler’s Books. When the final Harry Potter book came out last summer, Kepler’s threw the bash of the century. There was a brass band, tents selling magic charms, Hogwart’s culinary staples, and a sorting hat. Kids of all ages wandered around in robes with magic wands tucked under their arms, and it seemed like everyone from the Bay Area decided Kepler’s was the place to snag this  seventh wonder. My favorite touch was the keepsake ticket handed out at the beginning. You paid for the ticket, and traded the ticket in for the book. The line of Potter fans snaked out the door and around the corner, and the Kepler’s staff did everything possible to make sure the night went smoothly. This place has a great history, and is one of the last independent bookstores standing in the Menlo Park/Palo Alto area. If they don’t have something in stock, they’re always happy to order it for you.

10. Menlo Medical Clinic. The staff here is friendly and accommodating, and the clinic gives off a good – we actually care about your health vibe – instead of that sterile, impersonal feeling. The lab staff is well trained, and it’s very clean. The doctors in this group are among the best in their fields, and everyone in the facility is professional and helpful. MMC is affiliated with Stanford Hospital, so coming here with any illness or ailment guarantees you’ll receive the best medical attention possible.

  • Get new posts via email
  • Subscribe