Tracy Dearman\’s Blog

I was in a meeting this afternoon and the topic was the importance of a Reserve Study for Homeowners Associations. For a seller and a buyer of a condominium the financial stability of the HOA is of utmost importance. One of the most important tools to use to ensure strong long term financial stability is the Reserve Study.  Since  the Davis Sterling Act a responsible Board of Directors ensures they have a line item in the budget to have a reserve study completed every three years. What I found out today was on the intermittent years between the reserve study a level 3 financial study is also required  which is a “mini” reserve study, or simply put  a financial review of all maintenance and repairs of the common area.   The majority of HOA’s fail most in “implementation” of common area projects  because they do not have a plan of action. The reserve study can  and should be used as the implementation tool to get the projects completed to maintain and raise the value of your home and community.

As a  seller of a  condominium unit you need to know that potential buyers will want confirmation of the financial stability of your HOA. As a buyer of a condominium unit you want to make certain before you purchase that the HOA you are interested in is financially fit and has the tools in place to continue. Does the HOA have reserve studies conducted regularly? Does the HOA use the Reserve Study to schedule maintenance and major common area projects?

How is your HOA BoD and community doing? How is your management company wokring with your HOA BoD to ensure your community is financially fit?   Chime in and let me know. In the meantime if you want to know the value of your property check out the link below.

http://www.homeinsight.com/Widget/default.asp?LG2QYD45T8FE

There are signs, and articles and debates that the real estate market has stabilized in many areas in the US. What about California? what about your area?   Affordable home prices, low interest rates, the extension of the tax credits has many of us believing the market has stabilized. It very well may have on the average for the Nation, but what about California? What about your specific neighborhood or local area? What do you think? Email me, facebook me, twitter me, let me know your opinion.  

The tax credit has been extended for buyers as long as you enter into a transaction by April 30, 2010  but most importantly close by June 30 2010. If you are on the fence it is time to take the leap!! If you want help determining  if the market has stabilized in  your area of San Francisco or Oakland check out www.homevaluesnow.com   or www.buyahomeoakland.com   for a free market report. Let me know what you think!!

For more information about the first time homebuyer tax credit visit http://www.irs.gov/newsroom/article/0,,id=187935,00.html   and visit me on my website at www.tdearmanhsm.com  (a work in process)

I read an online article a few days ago about  whether or not a  homeowner should invest money in remodeling or not. It came at the same time I  noted an article in February 2010 issue of Realtor magazine about the same thing. A remodel is probably a good idea if you do not over do it. Keep it simple, keep it smart.  Many are feeling that the home they purchased is not the “stepping stone” home to the next bigger and better home but the one they will stay in for a lifetime. So upgrades may not be a bad idea.   My opinion is that keeping your home inviting, light, yet functional is always a plus. Check out this link for more to decide if you should begin your next remodel project

http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/weston-remodeling-its-a-waste-of-money.aspx.

 And as always if you or anyone you know is interested in buying or selling a home, let me know and I would welcome the opportunity to serve you. tdearman@hsmsf.com

The LA Times reported that the number of home foreclosures for a major sector of the banking industry topped 1 million for the first time in the third quarter of 2009 as struggles spread to homeowners with prime loans and modified mortgage payments, according to a report by the Office of the Comptroller of the Currency and the Office of Thrift Supervision. What is the reason for this continued rise in foreclosures? Is it job loss? Is it   a new strategy for homeowners to just walk away from their obligation? Is it the cost of living expenses that continue to rise?   The report released by the Office of the Comptroller of Currency and the Office of Thrift supervision says “Mortgage performance continued to decline as a result of continuing adverse economic conditions including rising unemployment and loss in home values” This is the same news we have been receiving for months. While these are third quarter results I would like to suggest that we will most likely see the same results with the 4th quarter of 2009. I am convinced that 2010 will bring new opportunities for the unemployed, new legislation from Congress, and a holistic approach from the lenders to ease up lending requirements to make it easier for home-buyers to purchase homes, investors and builders to get back into the market so we can see movement in the housing industry. This in turn means more jobs which translates into more spending. The solution from my computer seems simple, why are our leaders having such a hard time? What do you think?   Ponder this as you celebrate the holidays, saying goodbye to 2009 and Welcome 2010! Have a safe and Happy Holiday season!!!

 If you are curious if the market has changed in your area please visit

http://www.homeinsight.com/Widget/default.asp?LG2QYD45T8FE

So we all heard the good news last week. The tax credit for first time homebuyers was extended. There was an added incentive for those who own a home as well.   This is fantastic and will absolutely help to continue the recovery of the housing market. I predict that lenders will begin to loosen their underwriting criteria to make it easier for buyers to take advantage of this and for sellers to sell there homes-since there will be buyers.Read on to get the full story and let me know how you plan on taking advantage of this! As always you can contact me at tdearman@hsmsf.com. If you want to know if the market is recovring in your area check out   http://www.homeinsight.com/Widget/default.asp?LG2QYD45T8FE

Deadline for home tax credit extended The Money Times (11/06/09)Washington   – Some heartening news for residents who want to avail the $8,000 tax credit from the federal government stimulus package but are running out of time in closing the deal by Nov. 30.In an effort to spur home buying, the Senate unanimously agreed Wednesday to extend and expand the termination of home buyer tax credit into spring. President Barack Obama is expected to sign the bill today.In the first phase of the government™s homebuyer tax-credit program, only first-time purchasers were eligible for up to $8,000 in tax credits. But the new bill gives an opportunity of up to $6,500 tax credit for homebuyers who have lived in their current homes for at least five years.Eligibility for the incentives
Both the first time home buyers and those currently residing in their own houses have to sign purchase agreements by April 30, 2010 and sales must close on their new property by June 30.The credit facility would be extended for another year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days. Article continues here:

http://www.themoneytimes.com/featured/20091106/deadline-home-tax-credit-extended-id-1090056.html

I was reading an article in the San Francisco paper and the journalist was suggesting that buyer should not jump to purchase a home right now. Buyers should wait for the extension of the $8000  first time homebuyer tax credit (for first time homebuyers)  or wait for home values to decrease even more. The opinion of this journalists was that these were the only two options. I do not buy it completely. I am hopeful that the tax incentive will be extended and by the look of  this  first round  the extension will   happen. Moreover there will be an added bonus of a $6500 tax credit for other buyers. This will continue the revitalization of the economy. The sad truth  is that there were homes that were  grossly overpriced becaue there was a market that allowed it. This is turning   around  with home values resetting at “real values,” and buyers purchasing what they can  ligitimately afford.   For information of these incentives and how they may benefit you check out  HSMSF NEWS  

As always you can always contact me directly at tdearman@hsmsf.com and if your are crurious if the market has stabilized in your area  click here.  

While the burst real estate bubble might be bad news for the economy, it™s good news for home buyers “ particularly those looking to purchase in the San Francisco Bay Area.   For many, now is arguably the best buying opportunity of a lifetime. Understanding that the time is now, know also how and where to begin.  

Establish a Realistic Budget- Owning a home involves more costs than may immediately be apparent. In addition to your mortgage, you will be responsible for taxes and homeowner™s insurance, as well as mortgage insurance if you buy with less than a 20% down payment.   Wise homebuyers also set aside savings for future maintenance and unexpected emergencies. The reality is that you will eventually need to repair or replace a number of items in or outside of your home.

Buy What You Need-While real estate is often considered an excellent investment, it’s important to only purchase as much home as you actually need and can afford. Bigger isn’t always better; sometimes it’s simply more expensive. Higher taxes, larger insurance bills and more maintenance can eat away at even the best budgets. Buy what you need, unless you are consciously planning for growth.  

Plan for Growth -Homebuyers can conversely be too modest when it comes to purchasing a home. If you intend to begin or extend a family, you may outgrow your home sooner than expected. Plan for growth to ensure you will be as comfortable in your home tomorrow as you are today. If done thoughtfully, you won™t need to continually move or upgrade to keep up with changes in family size or dynamics.  

Understand Appreciation- Although you don’t want to base the purchase of your home solely upon appreciation, it’s important to understand how the future value of your home is likely to impact your ability to move later if you choose to.   When the time comes to sell, rent or exchange your current property, a home with long-term appreciation provides greater buying options for the future. Search for areas and neighborhoods with attractive features expected to increase your home™s value over time.    

with a Reputable Agent and Broker- A highly competent real estate agent and mortgage broker are worth their weight in gold, which is why you typically find that investors would never think of going it alone.  Arm yourself with the right team “ one that will take the time to determine your needs, negotiate strongly on your behalf, manage the often-daunting paperwork and legalities of buying and financing your home, and help you navigate the entire process with relative ease.

 Take advantage of unprecedented home prices and mortgage rates in the San Francisco Bay Area. Take control of your financial future today. Email me at tdearman@hsmsf.com or check out my market snapshot  below for information about homes in a San Francisco neighborhood that you are interested in.         Click Here for Your Free Market Snapshot

 The Association™s web site for homeowners, www.sfbaywindow.com, contains more than 130 articles on subjects important to owners. From œAdding a Room to œZoning Districts, it™s all there, making the site the most robust resource guide for San Francisco homeowners on the web.

Want to know more about sidewalk repair? What to do about barking dogs? Confused about who™s responsible for repairing the fence between your backyard and your neighbor™s? Aren™t sure if you need a permit to remodel your bathroom? The answers to all these questions and many more can be found on the Association™s very informative and unique site.

Topics are separated into three easy-to-navigate sub-headings: Your House, Your Neighborhood and Your City.

Are you curious to see if the market has stabilized? Click below for more information.

Click Here for Your Free Market Snapshot

There are many positive reasons to purchase a home. Through november 30, 2009 first time homebuyers can receive a tax credit up to $8000. There is discussion to extend this into 2010. Cut and past the link below into your browser to read what the National Association of Realtors suggests as why NOW IS A GOOD TIME.

 If you need or want more information please contact me directly at tdearman@hsmsf.com. If you own a home and are thinking of selling, I can give you a market snapshot of what your home is worth.

 http://www.realtor.org/ewarehouse.nsf/WebDocs/03053073093204323793222D74D54173043297E24146E06F16E37966D26F7DC0CF081584A5C48625756A0074BA82/%24FILE/25258244.pdf