Two For The Price of One! (so to speak): In addition to my comments on this site about home inspections, I also wanted to bring you some market current info on the state of the market--and it's definitely GOOD! The following info is more general to the overall market, but--take note--it applies even more so in Marin! Research firm CoreLogic issued the first full analysis of the 2012 housing market Monday, and it confirms the good news we’ve been reporting for months now: Homes sales and prices are rising, new-home construction is back on track, and foreclosures are down dramatically. Even better news: “The housing market enters 2013 poised for further recovery, with improvements in prices, sales and serious delinquencies,” Core Logic wrote in its latest MarketPulse report. “This is an extremely positive development for the economy because the real estate cycle drives the business cycle … that drives economic growth.” Home sales rose 6 percent in 2012 to 4.2 million, the first increase since 2005. Equity sales – excluding foreclosures, bank-owned properties, and short sales – jumped 11 percent to 3.2 million, while new-home sales increased 3 percent to nearly 300,000. Home prices, meanwhile, rose 6.3 percent, year over year, for the largest increase in six years. CoreLogic said home prices “are by far the most important indicator in the housing market because they have strong ripple and housing-wealth effects.” The research firm credited the price rise to a “massive reduction” in bank-owned homes for sale and the historically low inventory of homes on the market. Bank-owned homes are a drag on overall home prices because they typically sell at a discount of 20 to 30 percent. CoreLogic said sales of bank-owned homes are down 60 percent from their peak in April 2009, indicating that the housing industry is “transitioning to a more stable, long-term recovery.” The drop in foreclosures also signals an improving economy. At the end of November 2012, there were 2.6 million mortgages in serious delinquency – 90 days or more past due – down 15 percent from a year earlier and down 28 percent from their peak in January 2010, according to the report. Looking forward, CoreLogic said it “expects continued market improvement, with home prices expected to rise 6 percent in 2013 due to high affordability fueling steady demand, a lower level of REO (bank-owned) sales and a low inventory of unsold homes.” Rising home prices, it said, “will slowly release the pent-up supply of inventory as under-equitied (underwater) borrowers are unlocked and opportunistic sellers begin to provide relief to tight inventories.” So, if you're planning to sell, now is a GREAT time to call us to help you list and sell your home. And, if you're a buyer, with continued low rates, coupled with the aforementioned market info, what better time to jump in and get the home of your dreams at the start of the increased values discussed above. To get in touch, our numbers are: Peter: (415) 279-6466; Jane: (415) 531-4091. Give us a call! We'd be glad to help!

THE IMPORTANCE OF INSPECTIONS: One of the routine, but still most important parts of buying a home is your investigation of the home as to its structural and related physical integrity. This can cover not only the physical condition of the home and outbuildings, but also other related factors that, while not a part of the actual structure, can have a major affect on that structure. So, just for a change, here is some good information on the inspection process. Home inspections are an essential part of the home-buying process, but what constitutes a thorough inspection and how do you find the right professional to do the job? A general inspection is meant to identify structural or systemic problems in a home: Construction: Condition of walls, ceilings, floors, foundation, insulation, and roof. Electrical: Wiring, grounding, main panel, circuit breakers, light fixtures, and exhaust and ceiling fans. Plumbing: Toilets, showers, sinks, faucets, and traps. Check condition and identify materials used for potable, drain, waste, and ventilation pipes. Systems: Water heater, furnace, air conditioning, duct work, fireplace, chimney, and sprinklers. Appliances: Dishwasher, range and oven, refrigerator, garbage disposal, washer, and dryer. Garage: Slab, walls, ceiling, garage door, and firewall. Exterior: Siding and trim, doors, windows, lights, gutters, driveways, fences, sidewalks, landscaping, and drainage. Sometimes a general inspection may not be enough. Specialists may be called in to test for asbestos, lead paint, radon, or methane gas, as well as mold and wood-eating pest damage. It’s always a good idea for buyers to be present during home inspections to get an up-close look at the condition of their new home, ask questions, and learn from the inspector’s comments. Plan on at least three hours, and perhaps five or more, for a thorough inspection. How to find the best inspector for the job? Ask friends for their recommendations, and also the real estate professional who’s assisting you in your home search – he or she has probably dealt with dozens of inspectors and can steer you in the right direction. Many skilled home inspectors do not belong to a national or state association of home inspectors, but such membership is often a plus. Organizations include the American Society of Home Inspectors, the National Association of Home Inspectors, the International Association of Certified Home Inspectors, and the California Real Estate Inspection Association. One other area that inspections can be very helpful is in the selling of a home! That's right--I said 'Selling'. How, you may ask. Simple, we recommend at least a pest inspection before placing your home on the market. If it appears necesary, we'll also recommend other types of inspection. The reason is that you know before ever going to market what, if anything, may be an issue. You then have the option of getting it repaired or not, and noting this to prospective buyers when you provide them with the report(s)O as part of your disclosure. You also can take into consideration any issues when you price the home for sale, and make it clear that you have done so, to any buyer that may want to bargain over price due tot the issues in the report. Need advice on getting inspections, or who to use? Give us a call. As always, we'd be glad to help. Call Jane: (415) 531-4091; or Peter: (415) 279-6466.

The Latest News: Just returned from the annual CyberStars Summit conference, held this year in San Diego. For those of you who aren't familiar with the CyberStars, it's an invitation only group of Realtors across the country who are renowned for using the latest in technology to assist their clients in the purchase and sale of real estate. There are about 225 of us, and Jane & I have been members for over 10 years now. At the conference, we received lots of great info and as the year progresses, you will all see and be the beneficiaries of this info as we put it to work to make your real estate transactions smoother and easier. If you'd like more info, just give us a call or email. Best regards, Peter

HARP Petition: For those of you who aren't aware of it, the White House has a petition filing place on its web site that allows anyone to file and/or sign a petition to the White House on any subject. If the number of signatures reaches, the WH will reply to it. Now, this doesn't in any way have the force of law, but if enough signatures land on a petition, it CAN lead to someone initiating the process that would lead to a law. Currently, a petition has been established to eliminate the HARP eligible mortgage cutoff date. Under HARP, to be eligible, your mortgage has to have been in force no later than March 31, 2009. Under the petition, if it ever led to a law, this date would cease to be a cutoff and any eligible mortgage would be able to apply for HARP program relief. So, what to do? SIGN--NOW!

NEW RULES TO PROTECT AGAINST FORECLOSURE

NEW RULES TO PROTECT AGAINST FORECLOSURE: The Consumer Financial Protection Bureau (CPFB) has announced new rules that may help in avoiding foreclosure--or at least delaying it while you try to make some arrangements (refi, loan mod, etc.) to avoid the foreclosure. The title of this item is a bit misleading--if you don't pay your mortgage and are unable to get a loan mod, you WILL lose your home. However, the new rules can help. One is that lenders/servicers cannot commence foreclosure proceedings until at least 120 days after you miss a payment. In some states under traditional methods, a lender could file a notice of default, beginning the process, the day after you missed a payment. This new 120 day rule gives a homeowner more time to initiate and possibly complete some alternative plan to avoid foreclosure. Another rule requires lenders no longer follow a 'dual tracking' process. Under this process, even if you were seeking a loan mod from your lender, the foreclosure process ground on, often side by side with your loan mod app. You rarely had only a designated single person from the bank to talk to, and, consequently, the right hand never knew what the left was doing. Result? Foreclosure in many cases where you might have qualified for the mod, but for the foreclosure process going on. Yet another rule now requires that in cases where you've filed a loan application at least 37 days before a scheduled foreclosure sale date, the lender must give full consideration and decision to that app before continuing the foreclosure (this continuation would only then occur if your app was denied). Another rule requires that the lender or servicer provide you with written notice of your options once you have missed two payments, and also requires you be given acces to the person(s) responsible for updating the status of any loan app or mod app you may have in process. There area a number of other rules as well and the new rules do NOT apply to all lenders. Exempted form the rules are small lenders/servicers handling fewer than 5,000 loans. Want more details? Go Online: www.consumerfinance.gov, which is CFPB's web site. As always< Good Luck.

HUGE FORECLOSURE ABUSE SETTLEMENT: Federal regulators have reached a settlement with 14 major banks regarding mortgage foreclosure abuses and errors on past foreclosures. Totalling $10 Billion, distributions will include $3.75 Billion to homeowners who were foreclosed in 2009 and 2010. Among the 14 lenders are Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. Another $6 Billion will be provided to homeowners currently facing possible foreclosure because they are behind on their payments. If you were foreclosed upon in either of these years, or are in default currently on your mortgage, IMMEDIATELY CONTACT YOUR LENDER TO DETERMINE YOUR ELIGIBILITY for participation in these payouts. As always, I wish you Good Luck. This definitely is good news.

Help From The Cliff

On November 21,I had written here that the Mortgage Forgiveness Debt Relief Act was due to expire on December 31 (2 days ago), and strongly recommended that anyone possibly affected by its potential demise should immediately call, write or email their Congressional reps in the House & Senate, and demand that it be extended. Well, one of the many benefits of the passage late last night of a deal to avert the 'Fiscal Cliff' was inclusion in the bill averting the cliff of the extension for at least another year, to December 31, 2013. In case you have forgotten the details, the law allows homeowners going through short sales, modifications and/or foreclosures to avoid income tax liability on any forgiven debt as a result of the transaction. A cautionary reminder is also important here: only debt incurred on your home between two specific dates is covered. For details as to exactly how, or if, you are covered under the law, contact your accountant or tax preparer immediately if you are involved in any of these situations. Another benefit of the Cliff avoider is that, while capital gains taxes will increase from 15% to 20%, capital gains tax rates on sale of a personal residence will remain at 15%. So, if you are selling your home to avoide foreclosure (or for any other reason), and have a gain in value from when you purcheased it, you will still only pay capital gains tax at a rate of 15% of the gain, just as before the Cliff avoider passed last night. Congratulations to everyone in these circumstances, and a big 'thank you' to Congress for finally getting off its collective ass and doing something to help the country and its citizens! As we enter the New Year, continued Good Luck.