1. Seller is motivated
2. Offers accepted as they come
3. Foreclosures on the rise
4. Bank owned property
5. Short sale
6. Section I work completed
7. Seller will pay for closing costs
8. No offer date
9. Price reduction
10. Sale amount subject to lender’s approval

Writing an offer in a changing market requires one to be more cautious when it comes to contingencies.  A standard finance contingency of 3 to 10 days might no longer be enough. Loans are still available for qualified buyers. The mortgage broker or direct lender chosen by the buyer will communicate how much time he needs to get a firm loan commitment. This time frame has determined how long of a contingency one will write into the offer.

Recently I have heard  of several  situations where the lender required a second appraisal just before closing. The lender’s concern was, that in the time between the first appraisal and the close of escrow, the market value could have changed. In one instance the lender required a larger deposit and in an other situation the lender backed out of the deal. Apparently certain neighborhoods have been flagged to be in a declining market and lenders are paying attention. More than ever it is important to work with a full time experienced real estate agent who understands the changing market conditions. To protect the buyer one should discuss writing a very long finance contingency into the contract. This might not get the offer accepted but in my opinion it is better to be safe then sorry. Once the buyer removes the contingency and later has to back out of the contract, the deposit will be at risk. In any case buyers need to be informed! 

Traditionally January is not a month realtors like to list properties. Normally sellers and buyers are recovering from the holidays. For a seller listing in January means that you are busy getting  your home ready during an already demanding time of the year. However this upcoming January might be different. Stagers seem to have a lot of business booked for January. This means listings will hit the market early this year. Sellers have been holding back hoping that the market will swing in their favor. Sellers are waiting for lower inventory and therefore less competition. Of course there are areas like Palo Alto with hardly anything on the market now and January would be a great opportunity to list when others are waiting for the traditional spring frenzy to start. How will buyers react to the increase in inventory early on? I think they will be ready. Interest rates are still very low and people are still moving to our beautiful Bay Area.  Overall values are holding on the Peninsula. The first brokers’ tour is scheduled for January 8th. It will be interesting to see if we will have more properties on tour than in previous years.

One million dollars still doesn’t buy you much in Burlingame. A starter home with 2 bedrooms and 1 bath with an average 1170 in square footage is what you can buy. These homes are located in some of the sweet neighborhoods East of El Camino Real. Most likely this house needs some up-grades in the kitchen and bathroom but there is good news. You have 12 homes to choose from and with an average of 61 days on the market, there is room to negotiate!

Next year Burlingame will be celebrating its 100th birthday.  Some of the fun events coming up in 2008 are:

A show about Burlingame’s history performed at Burlingame High School

A Vintage Fashion Show

Historic Walking Tours

A citywide dance for 7th and 8th graders at the Burlingame Recreation Center

A Centennial Day event for families with movies and fireworks at Bayside Park

A Centennial Ball will be the culminating event on June 6th

The celebration started in June of 2007.  You already missed the parade, a vintage baseball game, a picnic and a scavenger hunt.  For more information and dates of up-coming events go to:  http://www.burlingame.com

I learned the other day again why it is important to purchase a home warranty.  This particular property had two wall heaters.  During the home inspection we discovered that one unit was not working.  PG&E was called to inspect and light hte pilot light.  A clean report was issued stating that both units were in good working condition.  Escrow closes and the new home owners move in a couple of days later.  Of course this happens to be the coldest week of the year, temperatures drop into the thirties and you guessed it, the heater doesn’t work.  You arrange for space heaters and electric blankets and are glad that you have a home warranty policy in place.  The heating system is one of the standard items covered under this policy.

If you are a resident in the Shoreview neighborhoods of San Mateo, you have been paying for flood insurance for some time.  Starting in 2009 about 85,000 property owners will be required to do the same.

FEMA has announced that they will be up-dating the flood hazard map for the city of San Mateo by January 2008.  The change will affect neighborhoods south of Highway 92 and East of El Camino Real.  This change might include neighborhoods such as Fiesta Gardens and San Mateo Village.  Flood insurance will be required for properties secured by a loan that are located on the new flood zone map.  Previously homeowners who obtained flood insurance prior to the mandatory date, which is expected to be in 2009, were able to get a better deal.  You might consider calling your insurance agent to lock in a $300 premium compared to $1000.

The City Department of Public Works has copies of the preliminary/revised Flood Insurance Rate Map.  To receive a copy of the section that shows your property, call: 650.522.7300.

For more information go to: http://www.cityof sanmateo.org

1.  Make sure your home has no curb appeal, this will guarantee that potential buyers won’t get out of the car.

2.  Do not stage your home.  No Feng Shui allowed here!

3.  Restrict your showing times, make it really difficult for agents and buyers to see your home.

4.  Please take no pictures, anyone looking online will see a map with a little house indicating the location of your home.  This is plenty of information!

5.  Absolutely no pictures of the inside.  As a result buyers looking online will not spend more than 15 seconds looking at your home.

6.  Keep your home off as many websites as possible.  Advertising online could attract buyers.

7.  Do not pay for any inspections.  Buyers will have several contingencies and have plenty of reasons to get out of the contract.

8.  Do not clean or unclutter your home.  Buyers who make it through the front door will leave quickly.

9.  Please do not have a sign in your front yard.  Your neighbors won’t know that you are selling and can’t tell their friends who always wanted to move into the neighborhood.  Keep it a secret!

10.  If you are not a smoker, start smoking now.  Buyers hate any kind of smell and smoke is on top of their list.