Peter Pays Paul

The Contra Costa Times reports today that as many as 20,000 homeowners are eligible for property tax relief. This is due to a decrease in property values from the peak of the real estate market in 2005. Most of the homeowners eligible for the discount are located in the cities of Concord, Antioch, San Ramon, and Brentwood.

The article reports that those eligible for the tax reduction should expect a card in the mail by this weekend notifying them of the smaller tax bill.

If you use Google to search the web, as I do, then you need to read the article by the folks over at Sellsius. These great tips will make your search should help you return better results.

HT: Jeff Brown

According to Contra Costa Association of REALTORS® there are currently 1,241 active REALTORS® in Walnut Creek, CA. According to the City of Walnut Creek’s website the current population of Walnut Creek, CA is estimated at 66,111 people. That means that there is one REALTOR® for every 55 people in Walnut Creek. This number does not take into account the number of DRE licensed individuals that are not part of the Contra Costa Association of REALTORS®.

With so many options to choose from, how do you decide who is best? It is easy to be overwhelmed with this daunting decision or to be influenced by the slick-talking salesman who just wants your money.

Connie De Groot an agent in Southern California released a press report of the “Top Ten Things to Look for in a REALTOR®”. Inspired by her list, here are the things to focus on when choosing a real estate agent to represent you.

• Look for a full time real estate agent. A full time agent is more likely to know markets because they focus on real estate and not something else. Most people would not go to a podiatrist for brain surgery. They would go to a neurosurgeon. Why would you go to a baker/mechanic/pilot/etc. for real estate?

  For most people their home is their biggest asset. Entrusting this transaction to a part time agent can be a risk.

• Look for a full service real estate agent. Using a discount broker is fine, if you want to save money. But you must understand that you get what you pay for. A full service agent should handle the transaction so that you can get on with your life. A full service agent will schedule and attend any inspections, arrange for repair work, and coordinate the transaction freeing you from these time consuming activities.
• Find a trustworthy agent. A great agent is going to look after your bottom line first and their own second. This is why they earn their commission. They protect your interests and represent you.
  Many agents will tell you what you want to hear to get the listing or the deal, and then the truth will come out later. Find an agent that is bold enough to tell you the truth, even if you don’t like the truth. An agent that is misleading to another person, may be misleading or deceptive to you. Listen to their speech to others for clues to their honesty.
• Find an agent that is a specialist. Jeff Brown talks about the downfalls of a one-stop shop in real estate investment. The same dangers are lurking in other areas of real estate. A jack-of-all-trades is often not “excellent” at any of them.
• Look for an agent that is technologically inclined. It is important that your home be placed online and properly advertised to attract buyers. Almost 61% of home buyers walked through a home they viewed on the internet according to the National Association of REALTORS®. Many agents will buy a “website” for their listing. This does not mean that the website will be found by anyone on the internet.
• Look for an agent with a team. Finding a reputable handyman, plumber, or other contractor can be daunting. Many agents have worked with these professions before and are able to refer you to quality workers. BEWARE: ask how the agent knows the contractor and if they have used them before. The referral may be a relative or friend.

These are the important things to look for in an agent. Other characteristics like enthusiasm and drive are important, but can be misleading.

Choose someone you like and can work with. If you can’t stand an agent, find one that you can work with. You should feel comfortable talking with your agent. During your transaction you will be communicating with your real estate agent consistently and speaking with them should not be dreaded.

This current market is a great market to buy investment property or a first-time home.

Why? In many markets, including the East Bay Area of California, the market has returned to a more normal status. The insanity of the seller’s market during 2004 and 2005 has shifted to a buyer’s market. In some areas of the country there has been a price correction for homes.

The buyer’s market is a simple product of supply and demand. Currently, there are more homes on the market than buyers. This creates a surplus of homes. In Concord, California there was roughly a 12 month supply of single-family homes available, according to my calculations.

Two things can resolve the current surplus of homes. 1) More home buyers enter the real estate market. This is the more unlikely solution. Mortgage lenders have tightened their qualifications for loans. Eligible home buyers must have better credit scores and a stable financial situation to qualify for loans. Also, interest rates have increased in the past few weeks, decreasing the amount home buyers qualify to purchase. The combination of these two factors make this solution less likely than the other.

2) Home owners decrease their home prices. Sellers will need to make their home more attractive to the available home buyers in the market. One of the ways will be a reduction in listing price. This can be evidenced through buyer incentives (credits toward closing costs) or by lowering the asking price. Home sellers are forced to compete on price to entice buyers into the home.

Home sellers cannot immediately increase the number of home buyers as a result of their actions. However, a home owner can lower the price of their home to increase the home’s attractiveness to the available buyers. If you can buy more house for less money, why wouldn’t you?

This makes it a great market to buy a home for investment or personal use. I say that with a caveat: The holding period should be greater than two (2) years. I make this caveat because I think that we are near the bottom of the current real estate market correction. I am not sure that we have reached the absolute bottom yet. A two year holding period allows for the real estate market to reach bottom and begin to rise again.

My advice to buyers and investors: Call your agent today and get in the market! This in my opinion is a great time to buy for the long haul.

My advice to sellers: Do not expect to set the terms of the deal. You are no longer in the driver’s seat of the real estate market and need to make concessions to home buyers.

The Shell Ridge Open Space is the largest open space within the bounds of Walnut Creek. Shell Ridge is a great place to ride your bike, go for a hike, or take your dog for a walk.

Just being in nature is one of the best parts of the Shell Ridge Open Space. Walking along the trails it is not uncommon to see squirrels, reptiles, and other wild creatures. In the midst of the Open Space is an extreme sense of calm from experiencing the beauty around you.

Here is a map of the Shell Ridge Open Space.

Below are some pictures taken from the Shell Ridge Open Space.

Here is the current market data for the Meadow Creek, Indian Valley, and Walnut Heights areas of Walnut Creek as of today June 6, 2007. I have included only single family homes in this search.

Only one home sold in the last 30 days in this area. There are 6 homes currently in escrow in Walnut Heights, Meadow Creek, and Indian Valley.