Real Estate and Real Life in the Wine Country

If you’re planning to sell your home, you should hear your REALTOR® suggest staging, which helps to set the scene in your home, making it more appealing to buyers through renovation or redecoration. It can help make your abode more appealing by allowing prospective buyers to envision themselves living there.

With proper staging, something as simple as painting your walls can go a long way towards selling your home faster and for the best possible price. According to a 2006 study by Accredited Staging Professionals, homes listed for sale without being staged lasted, on average, 163 days on the market. Staged homes averaged only 8 to 13 days on the market.

Staging costs vary depending the scope of the project. Some staging techniques, like rearranging furniture or simplifying the décor, are free. Other projects, such as installing granite countertops or new kitchen appliances, can be costly but might help boost your home’s appeal. Costs also differ depending on where you live. According to Barb Schwartz, author of “Home Staging: The Winning Way to Sell Your House For More Money,” the cost of staging a home on the West coast averages $2,800, compared to $1,800 in the Midwest and approximately $3,800 on the East coast.

Don’t let these numbers deter you from the idea of staging, most of the time staging is as much as cleaning out your clutter and start packing the things you won’t need for a while and need to move anyway. There are many reasons to stage your home. For a complementary staging service and a specific plan for your home, call or text me!

Mirjam de Rijk

Mirjam@C21Alliance.com

707-486-2638

This week I had the honor to put a very interesting building on the market. It’s the oldest church building in Calistoga.

Calistoga has an interesting and rich history and is a beautiful town to visit. You won’t be the only one visiting, it is a great destination year round. Should you decide to go, please don’t forget to visit the Sharpsteen museum, it is a lovely museum with a beautiful display on the old Calistoga. Should you like to stay for a few days, you won’t regret this, there are quite a few beautiful places to stay. Calistoga is in the middle of Wine County and besides the many wineries, it is known for their hot springs, make sure you pamper yourself with a spa treatment.

This is a picture I found in the Sharpsteen Museum, it was taken in 1908. It is the oldest church building in Calistoga. Built in 1869 as a one room frame church and extensively remodeled by C.J.B. Moore in 1902, which gave it its Victorian Gothic appearance, this is the first church that was built in Calistoga. There are two attached one bedroom apartments each having their own entrance. The city of Calistoga has put this building on the preliminary list of historical buildings and it is their intention to have the building maintain its current look. More information is available at the property’s website: www.1323cedarstreet.com.

The zoning is residential, please check with the city of Calistoga for other uses, possibly a B&B.

Asking price $ 749,000. Please feel free to contact me for more information.

Have a great day!

  Mirjam

When we read about  the latest news sometimes we forget the real toll that the mortgage debacle is impact…Pls see from Reuters (www.reuters.com)

Financial job cuts soar on housing woes
Tuesday August 21, 3:34 pm ET
By Jonathan Stempel

NEW YORK (Reuters) - A deepening U.S. housing slump has caused an alarming surge in job losses at U.S. financial services companies, and the end is nowhere in sight, consulting firm Challenger, Gray & Christmas Inc. said on Tuesday.

The industry has announced 87,962 job cuts so far this year, 75 percent more than the 50,327 recorded for all of 2006, Challenger said. Nearly one-fourth of this year’s cuts have been announced in August alone.

Of this year’s cuts, 35,830, or 41 percent, were tied to housing market troubles, including riskier subprime mortgages. Job cuts by real estate and construction firms totaled 21,620, more than twice the number for all of 2006, Challenger said.

“Many companies expected the mortgage situation to implode; they’ve just been wondering when the bubble would burst,” Chief Executive John Challenger said in an interview. “But many are stopping on a dime, shutting down operations.

“Companies are not surprised by what’s happening, but the reality of the situation and the speed with which it occurred is shocking,” Challenger added. He said it could be months before housing-related job cuts peak.

In the last week, investment bank Bear Stearns Cos, credit card issuer Capital One Financial Corp and mortgage lenders Countrywide Financial Corp and First Magnus Financial Corp announced 8,640 mortgage-related job cuts, Challenger said.

Another 2,400 cuts were announced by SunTrust Banks Inc as part of the bank’s existing cost-cutting program.

Many companies exposed to the housing market have struggled with rising delinquencies and foreclosures as mortgage rates have reset higher and housing price appreciation has slowed.

Meanwhile, credit conditions have tightened as investors have grown unwilling to buy home loans once thought safe, starving many lenders of cash they need to operate normally. Dozens of mortgage lenders have quit the industry this year.

April has been the year’s busiest month for financial job cuts, Challenger said. That month, companies announced 33,789 cuts, including 17,000 by Citigroup Inc and 3,200 by bankrupt mortgage lender New Century Financial Corp.

Job cuts are mounting as credit losses widen.

On Tuesday, the government’s Office of Thrift Supervision said troubled assets, or loans at least 90 days past due, rose at savings and loans it regulates to $14.2 billion in the second quarter from $9.5 billion a year earlier.

Meanwhile, home foreclosure filings in July surged 93 percent from a year earlier and rose 9 percent from June, to 179,599, according to a Tuesday report by research firm RealtyTrac.

John Challenger said it’s understandable for mortgage workers to feel whipsawed. Countrywide, for example, cut 500 jobs last week after having added 6,931 jobs from January to July, with increases in every calendar month.

“It’s devastating (for morale),” he said. “It’s hard to keep morale up, given the boom-bust nature of the mortgage sector.”

(Additional reporting by John Poirier and Patrick Rucker in Washington, D.C.)

So do we find any light at the end of this tunnel? Interesting news from MBA

How FHA Could Help Homeowners
Wall Street Journal (08/22/07) P. A4; Solomon, Deborah
Officials from HUD and the Treasury Department are collaborating to determine how the Federal Housing Administration can help cash-strapped mortgage borrowers avoid foreclosure, a plan that likely will involve the agency refinancing the loans of homeowners who have not yet missed mortgage payments but who probably will encounter problems once rates on their adjustable-rate mortgages rise. Approximately 120,000 refinances will be handled by the agency this year, but FHA officials believe twice as many refinances are possible if Congress passes legislation to modernize the loan program. Lawmakers are considering a hike in the FHA loan limit to upwards of $417,000 in pricey markets–which would help borrowers in California, New York and other expensive states–plus a repeal of the 3-percent down payment requirement and implementation of risk-based insurance premiums. However, Sen. Richard Shelby, R-Ala., could complicate efforts to pass the bill, as he has voiced concerns about the impact of such changes on taxpayers.

Let’s hope that we see some relief for those homeowners that are worried about their futures.

Denise

The fed did cut it’s rates and that is great news, but it’s more interesting in the sense that it addresses  investor fears. I really do appreciate Pat’s level headed comments on what is going on in his article “Why the stock markets keep falling”.

Bottom line is that fear is contagious and investors are not immune for this, the stock market is notorious for it’s over reactions. Also the media does an awesome job in feeding on fears since that is what sells: bad news sells better than good news.

Oh well, that’s life. However, just to put some things into perspective for our buyers/investors:

Yesterday I was at our local Realtor breakfast in Windsor and there are tremendous loan programs out there. A few that were mentioned: Chase still will do 100% financing on stated income but the Fico score has to be 740 or higher. WaMu has a Mortgage Plus loan program, a flexible mortgage that lets you change your rate when rates go down (no closing fees, no origination fees, no pmi).

For all of you that have been thinking about buying a home, either move up or move down, just call me. Now is a great time to do either one of them, despite the news. In my next post I will spend some  ‘blog space’ on this.

Yes, now is an opportune time to take advantage of the great opportunities that are available in Sonoma County. Just call or email me for a list.

Mirjam

 Last week I was on a Cruise with Holland America in Alaska and on our hike in Ketchikan we came by a very interesting little ‘fixer’.

Looking at the amount of moss on the roof it really brought home the amount of rainfall in Ketchikan every year, it’s a rain forest area. That gives a whole different meaning to mold….

This is only one of the reasons why it’s wise to hire a local Realtor when selling or buying. You need someone who is familiar with the area. For a seller, you want to have all the necessary disclosures taken care of and for buyers, you want to know everything that there is to know with regards to the desirability of  the property you are about to buy.

It’s easy to find homes for sale with all the information available, it’s easy to post a home on the internet. It is something else to stay current with local developments regarding the sales process, maybe a local ordinance, a change in required paperwork, a change in the contracts. Chris Iverson, a realtor in Palo Alto wrote an interesting article on the subject.

In Sonoma County, things are constanly changing. A recent change was in Graton, there is a sewer lateral that affects all home owners who are thinking about selling their property. Just so you know…

Have a great day!

Mirjam

For those of you in the lending market, let’s hope that today is the start of a  better week than last week….to set us in the mood. I received this from the VP to day to set the stage for the week ahead.

· Borrower’s must have no previous bankruptcies in their family history going back

· A minimum of 25 years self-employment history now required for all NIV Programs

· All non-arm’s length transaction borrowers (mortgage, real estate professionals,

Some good news today….

NAMB Releases New Trend Data on 2007 Mortgage Markets
Conservative Trend Continues As Market Corrects

Washington, DC – July 24, 2007 – The National Association Mortgage Brokers (NAMB) (www.namb.org)  today released new trend data that shows mortgage brokers continue to close fewer non-traditional or “subprime” loans than in 2006.The data is part of an ongoing survey of mortgage brokers nationwide that is conducted by NAMB’s research partner Wholesale Access Mortgage Research and Consulting, Inc. The latest update confirms that the trend toward more traditional loans continues to be the norm in 2007 as the market corrects from a decade-long housing expansion. “This data shows that brokers are anticipating and meeting the changing needs of their customers,” said NAMB President George Hanzimanolis. “The shift in the market toward more traditional loan products is yet another reason we have cautioned Congress not to overreact to existing concerns and allow the market to adjust.”Prime loans continue to make up the majority of all loans originated by mortgage brokers, according to the study.  Though their share of the marketplace dipped slightly in April – to roughly 56%, down from 61% in March – prime loans were still by far the most widely used class of mortgages.  In April, only 11% of all loans offered were subprime.In 2006, 13% of all loans offered were subprime loans, designed for homebuyers with credit scores below 620.“This ongoing study further puts subprime mortgage issues in perspective,” said Hanzimanolis.  “For all the attention that these loans have received in the media, we’re talking about a small – and shrinking – portion of the homebuying market.”The survey responses came from more than 200 brokers, and were analyzed to compare types of loan products offered, adjustable versus fixed-rate offerings and combined loan to value ratios. To view a chart of these finding, click here.###The National Association of Mortgage Brokers is the voice of the mortgage broker industry with more than 25,000 members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry, which originates over 50% of all residential loans in the United States.Let’s hope this happens….. 

Merrill Says Fed to Cut Rates in October on Slowdown (Update2) By Daniel KrugerAug. 6 (Bloomberg) — Merrill Lynch & Co.(http://www.ml.com/index.asp?id=7695_15125) said the Federal Reserve will cut interest rates in October as the turmoil in the credit markets and falling home prices slow U.S. growth. The central bank will reduce the target rate for overnight loans between banks by a quarter percentage point to 5 percent, Merrill chief economist David Rosenberg said in a report today. In June, Rosenberg said the central bank wouldn’t lower borrowing costs until next year. An almost 100 basis point increase in the difference in yields on corporate and government debt, a 15 percent decline in equities and another 5 percent drop in home prices will slow gross domestic product growth to 1.5 percent next year, Merrill said. The firm had predicted GDP of 2.3 percent. Rosenberg’s earlier forecast of a 4.25 percent year-end federal funds rate was among the lowest of economists surveyed by Bloomberg News. “The Fed will cut rates to 3.75 percent by mid-2008,” Rosenberg said today in the report. That would bring the Fed funds rate to the lowest level since October 2005. Merrill is one of 21 so-called primary dealer firms that trade directly with the Fed.

Market Line Reports Some Big News….

“The economy grew at an annualized 3.4 percent in the second quarter of
2007, and the unemployment rate for the months of April, May, and June was
4.5 percent. Meanwhile, small businesses and consumers were more
pessimistic about the future than the previous quarter, according to the
new Quarterly Indicators: The Economy and Small Business.

A copy of the Quarterly Indicators: The Economy and Small Business can be
found at: http://www.sba.gov/advo/research/sbqei0702.pdf. For inquiries
about the quarterly indicators please feel free to contact Chad Moutray at
advocacy@sba.gov or (202) 205 6533.”

More Tomorrow…

Denise

Fed Interest Rates from two views: 

Market Line
08/08/2007

Yesterday the Fed told us the biggest danger to the U.S. economy is still inflation and kept the Fed funds rate at 5.25%. Regarding the housing and mortgage markets the Fed merely stated that financial markets have been volatile in recent weeks, and credit conditions have become tighter for some households and businesses, while the housing correction is ongoing. And late yesterday afternoon a telling, but often overlooked report on consumer borrowing told us that consumer credit increased $13.2 billion in June to $2.46 trillion. This was after a $15.9 billion increase in May, reflecting that consumers are turning to credit card and non mortgage debt to maintain spending. This morning we are seeing the unwinding of the flight to quality bid the treasury market has experienced the past few days. The strong earning report from Cisco after the market close yesterday has lifted the spirits of equity investors who are now selling bonds to move back into stocks.

Information provided by Southern California Mortgage Exchange

Fed Softens Its Bias, Citing Growth Risks and Tighter Credit
Investor’s Business Daily (08/08/07) P. A1; Shinkle, Kirk (www.ibd.com)
The Federal Reserve voted for the ninth straight time to hold the federal funds rate steady at 5.25 percent at its Tuesday meeting, but it issued its first post-meeting statement that acknowledged problems in the credit markets. The central bank stated, “Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing.” However, the Fed once again noted “moderate” economic expansion and underscored its ongoing concerns about inflation. Some analysts believe the fact that the central bank is less biased toward inflation risks indicates that a neutral bias might be on the horizon, permitting rate reductions in the coming months; but others speculate that a steady stance on economic growth and the housing downturn makes it unlikely that the central bank will cut rates any time soon. Future traders indicated a 25-percent chance that rates would be lowered at the central bank’s Sept. 18 meeting, a drop from a 65-percent likelihood at the start of the week.

But, much more fun was the August meeting of the local Chapter of the Woman’s Council of Realtors http://www.wcrca.org/chapters/chapter28.asp , an affiliate chapter of the national organization http://www.wcrca.org/. It was “hat” day and the winner was our own Jon Lehre, Marketing Director of The Cal-Bay Mortgage Group with a very unique chapeaux from Silo & Linus. Can you believe that a guy won the contest???

The speaker was Victory Williams Turner from Victory Speaks Consulting Company on  Negotiation techniques.  She had several very good points that I would like to share:

• Know your facts…nothing more will turn off a buyer/seller (B/S) more than “bluffing” them about the house, the neighborhood, schools, etc. The old “knowledge is wisdom” saying will help you more than you can ever imagine in gaining credibility with your client.
• Understand the personality traits of your B/S. She highlighted the 4 types that we all should know : verbalizers, convincers, rationals, and reasonables and how to manage their expectations.
• Know your business etiquette. With all the different cultural groups now in the bay area we need to be more sensitive than-ever about  ways to interact with our clients so that we do not offend.
• Read the body language of your client
• Watch out for “the take it or leave it close.” Give yourself plenty of room to negotiate.
• 80%/20% Rule with a different spin— 80% of the objections diminish the last 20% of time remaining to negotiate.

All in all a good time was had by all…..some time away from the difficult market that we are all finding ourselves in….

more tomorrow….

Denise

http://www.garychus.com

Be your own judge….but for me Gary Chu’s in downtown Santa Rosa is still the best Chinese in the area. See the website for more information.

It isn’t easy to keep track of a moving train, but I hope to assist you, the reader, with some information that crosses my desk about this ever changing market.

Today we find several articles from Investors Daily, the NY Times, Dallas News, and the WSJ.

Loan Standards Up as Defaults, Wall St. Hit Banks, Lenders (www.investors.com)
Investor’s Business Daily (08/07/07) P. A1; Stoddard, Scott
A drop in demand for mortgage-backed securities has caused a credit freeze that has prompted mortgage lenders to cease underwriting certain loans, take a closer look at borrower qualifications and hike interest rates on some products. Experts note that prime borrowers are finding it difficult to obtain financing; and the lack of credit could slow home sales even more, spark price declines and push up default rates. Inside Mortgage Finance publisher Guy Cecala states, “There’s definitely a backlash now in which investors are saying they don’t want to hold anything with a mortgage attached. Loans are going to be much harder to get and more expensive to get.” With interest rates on approximately $1 trillion in adjustable-rate mortgages slated to increase in 2007, the inability of borrowers to refinance into fixed-rate products could spell trouble. Some experts worry about the impact of the housing downturn on the economy, insisting the Federal Reserve needs to cut interest rates or Fannie Mae and Freddie Mac need to be given permission to purchase more home loans.
 

American Home Mortgage Seeks Chapter 11 Bankruptcy Protection
New York Times (08/07/07) P. C3 (www.nytimes.com)
American Home Mortgage Investment has filed for Chapter 11 bankruptcy protection, saying it suffered “extraordinary disruptions” as buyers abandoned the mortgage debt market due to the sluggish housing sector and the increase in loan defaults. The Melville, N.Y., company was unable to return up to $800 million that it had promised to creditors–which included Deutsche Bank, JPMorgan Chase and many other big names on Wall Street. American Home Mortgage, at one time one of the largest residential lenders in the country, was not heavily involved in subprime lending–unlike many of the other lenders that have filed for bankruptcy protection this year. In other news, Aegis Mortgagehas suspended loan originations, and National City’s mortgage unit said it will no longer originate home equity applications through brokers.

Where do mortgages lenders go to for their sub-prime loans now? Maybe the Demos have some direction for the market????

Democrats Raise Heat on Mortgage Overhaul
Wall Street Journal (08/07/07) P. A2; Cooper, Christopher (www.wsj.com)
Sen. Hillary Rodham Clinton, D-N.Y., is the latest presidential candidate to propose tougher measures to combat unscrupulous mortgage lending as part of her election platform. Clinton’s plan involves mandating new disclosure requirements on mortgage brokers and taking steps to limit their ability to dictate lending terms to clients. Central to her strategy is a measure that would force brokers to plainly state what their fees are and an obligation of full disclosure of monthly tax and insurance costsfor sub-prime mortgages. Several of Clinton’s rivals on the Democrat side also have proposed tougher rules for mortgage lenders–most notably former Sen. John Edwards, D-N.C., who additionally is championing the establishment of bailout pools to help homeowners who are on the verge of foreclosure.

Market Line writes this morning:

We shall soon see if Bernacke has any sage advise for our futures. Maybe we should all enter the reverse mortgage market since the “baby boomers” may represent the salvation of the industry!
 

Reverse Loans Moving Forward
Dallas Morning News (08/07/07); Moos, Bob (www.dallasnews.com)
Public education campaigns by AARP, the National Council on Aging, federal agencies and other groups are helping to increase interest in reverse mortgages among senior homeowners. The National Reverse Mortgage Lenders Association expects volume of more than 120,000 reverse mortgages this year, which would be a 57 percent increase from 2006. Although the reverse mortgage market is still in its infancy, with only 1 percent of senior homeowners having taken out the most popular offering–the Federal Housing Administration-insured Home Equity Conversion Mortgage–industry observers say business is starting to take off. The trade association projects that the amount of equity locked up through the mortgages will mushroom from $4.3 trillion this year to $37 trillion by 2030.
Well on that last note, off to lunch at the Royal China Restaurant and according to Molly Jackel…..http://www.santarosa.net/dining…I hope it is as good as she says. My review later!

Royal China
3080 Marlowe Rd., Santa Rosa, CA. Chinese
“This restaurant is so good in so many ways that it’s tough to know where to begin. Try the spicy string bean chicken, which is not saucy and sweet, but a drier, more savory version. The basil calamari is flash-fried, tender and perfectly cooked. Very solid wonton soup, hot and sour soup and pot stickers. Service is professional, and the décor is smart. Lunch and dinner, Sunday-Friday; Saturday, dinner only.” –Molly Jackel