April 25th, 2008 . by Mike Kelly
The following was asked of other agents by another agent who is obviously ticked that she cannot get them to agree to a “Short-Sale” so she can get PAID!! I find the question absurd! Here is her question followed by MY reponse!!
Her Question: Short Sales, Are Banks opening them self up to a law suit or Class Action suit?
In a declining Market, a homeowner contracts with me to sell their property. I participate in the local MLS and offer a co-broke to a buyers agent, which is another contract. I list their property and some weeks or months later the bank(s) say “ok” but the “the agents involved in the transactions are going to lower their commission”, It dawned on me, a third party, the bank, is interfering with my contract with the Seller and my contract with the co-broker.
If this is happening to you,? If I understand a little contract law “conduct interferes with another’s economic advantage or expectations, they have committed a business tort”
My reply: Read the rest of this entry »
Posted in Miscellaneous, Short Sales | Please post a response »
April 13th, 2008 . by Mike Kelly
Craig Norgard (left)
Buying a home or real estate is the largest investment a person or a couple makes. Although the process is very exciting, it is crucial to have as in-depth an understanding as possible of the building, its components and related issues in a relatively short time.
Having this detailed knowledge is very useful, not only for persons considering buying, but also for those men or women considering repairing, remodeling and even selling a home. This knowledge can have very positive financial rewards in the immediate, short term perspective, but also great rewards over the long term future of their home ownership.
Read the rest of this entry »
Posted in Real Estate Radio Show | Please post a response »
April 13th, 2008 . by Mike Kelly
Are guest host next week, as I tour my family heritage in Ireland, will be Adrian Roach of Keller Williams Realty and the “Hermosillo Group”. Adrian is no novice to radio having had a fun show back in his college days in Colorado. Having moved from Colorado in 2001, Adrian’s first taste of Sonoma County business was in the retail sector managing a local clothing store. The rather hectic and draining schedule of retail prompted him to enter the field of real estate as this basically IS the life style of one who makes a living selling real estate!! He was perfectly suited!With the help of his wife, Tina, he began the journey which has led him to Keller Williams Realty and the partnering with Shawn Hermosillo. This culminated in the forming of their team, The Hermosillo Group. His real estate background includes an association with Coldwell Banker where he attained the prestigeous “Diamond Society Award”.
Read the rest of this entry »
Posted in Real Estate Radio Show | Please post a response »
April 13th, 2008 . by Mike Kelly
The best buyer’s market in 35 years: In April of 1973, mortgage rates were about the same as they are today. Since that time, we have only had mortgage rates this low during 2001 and 2002 (5.65% as of this writing!), the height of the seller’s markets where there was little inventory. In the last two major buyer’s markets, one in the early 1980s and the other in the early 1990s, the rates were much higher. When I started in the business in 1978, interest rates were at 9.75 percent, en route to 18 to 21 percent in 1980. In the early 1990s, the rates were hovering in the 11 to 12 percent range. Thus, today’s buyer’s market, with exceptionally low mortgage rates plus a substantial supply of inventory, is the best time in decades to purchase. What are you waiting for? Give me a call today!! 707-322-8503
Posted in Miscellaneous, Housing Updates | Please post a response »
April 12th, 2008 . by Mike Kelly
Here in the greatest state of California we lead the nation in Realtor and Consumer services. My particular Association of Realtors has NOT owned their MLS for over 30 years! We get by on member dues and providing membership with outstanding programs locally and through the state and NAR. Our Association has flourished and is constantly held up as an example of life without the “MLS”. Those wishing NOT to become Realtors are just focused on the tip of their nose; the next deal. You need to step back and see the larger picture and understand the lay of the land and the dangers inherent in anti-trust legislation, brokerage fee limitations and independent contractor status. Quick buck licensees will join because their broker makes them or the will seek a company which doesn’t “bother them” with those pesky Realtor fees! Read the rest of this entry »
Posted in Miscellaneous, Statewide Issues | Please post a response »
April 12th, 2008 . by Mike Kelly
Land is almost scarce now days. I have a parcel I’m marketing for a client in Cloverdale and it has very little competition. One thing you need to remember–If you bring the property to market you must have the following done:
- Percolation test: Not an old outdated test but a viable, “vested” test with system design in place. If you don’t have this and face a “wet weather” perc then you’ve created a major headache for ALL parties to the transaction as so many inches of rain has to fall before you can test and if you miss the “perc” date then you’re into the next year!! “Vesting” the system is the way to go. I’d contact the PRMD (Permit Resource Management Division http://www.sonoma-county.org/prmd/). Actually this would be your first stop to determine many facets of your properties marketability including but not limited to: zoning, minimum lot size, density, land use, septic requirements, water zone, etc.

- Water: If you’re in Sebastopol you could be in a zone 3 or 4 water area. Zone 4 means you MUST prove water before you can build. Buyer’s want to come in and have a complete package awaiting them. The two essentials are septic and well. Get these in place and you can move forward. Weeks’s Well and Drilling are the kings of Wells in Sonoma County.
- Survey—know your property lines. I can’t tell you how many clients’ I’ve represented who bought their acreage years back and where told the “fence” is the property line!! Rarely is it the case! And remember, Assessor Maps state right on them for “Assessment Purposes Only!” I sold a huge parcel in the Sharps road area years back which was over 600acres on the AP Map but when surveyed came up 50 acres short!! I could go on and on about the lawsuits I’ve heard from Surveyors who are called in “after the fact” to determine property boundaries!
- Is the land plantable for vines? Soils reports? Just because the neighbor has vines doesn’t mean yours will!! Don’t misrepresent! And if you have plans for a home forget about the new owner giving them any value. Your 10 acres price and finished housing product push the overall estate into the custom built arena. Someone buying this property will want THEIR dream home—NOT YOURS.
- Lastly, financing. Good opportunity for you to carry and try an installment sale. If not great financing actually exists for bare land. Will you be exchanging? I’ve heard rumors of IRS investigation into changing the “like-kind” status so you might want to get this puppy on the market and exchange while the exchange laws are still in place!!
- And Listen to my local radio show: The Real Estate Hour, 1350AM, Sundays, 9 to 10am, KSRO. Thanks!
Posted in Miscellaneous, SonomaCountyRealEstate | Please post a response »
April 11th, 2008 . by Mike Kelly
I do a pest report here in the greatest state of California but insist the BUYER order/pay for the home inspection. I don’t want any whisper of “steering” (hey, I’m in California!!Land of lawsuits, disclosures ad infinitum!!) or handing a Buyer a home inspection I ORDERED. No, let them get dragged around by the home inspector and shown every nook and cranny of their new digs and be given THEIR OWN report with list of summary items to work on. We can then negotiate this through. Read the rest of this entry »
Posted in Miscellaneous, Wisdom Shared | Please post a response »
April 11th, 2008 . by Mike Kelly
MAKING SENSE OF THE LATEST FORECLOSURE NUMBERS FOR CONSUMERS–This synopsis provided by the California Assoc. of Realtors
3.6 percent of borrowers were at least 90 days late on their payments in December – the highest percentage in more than five years, reported the Mortgage Bankers Association. Even so, it’s important to remember that 96.4 percent of borrowers were on time with their mortgage payments. And new foreclosures accounted for only 0.83 percent of all home mortgages in the fourth quarter of 2007, up from 0.54 percent in 2006. Read the rest of this entry »
Posted in Miscellaneous, ForeclosureInformation | Please post a response »
April 6th, 2008 . by Mike Kelly
Chairman Ben S. Bernanke
Developments in the financial markets
Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
April 3, 2008
Chairman Dodd, Senator Shelby, and other members of the Committee, I appreciate this opportunity to discuss current economic and financial conditions and the actions the Federal Reserve has taken to stabilize financial markets and the economy.
Although the situation has recently improved somewhat, financial markets remain under considerable stress. Pressures in short-term bank funding markets, which had abated somewhat beginning late last year, have increased once again. Many lenders have been reluctant to provide credit to counterparties, especially leveraged investors, and increased the amount of collateral they required to back short-term security financing agreements. To meet those demands, investors have reduced their leverage and liquidated holdings of securities, putting further downward pressure on security prices. Credit availability has also been restricted because some large financial institutions, including some commercial and investment banks and the government-sponsored enterprises (GSEs), have reported substantial losses and writedowns, reducing their capital available to support increased lending. Some key securitization markets, including those for nonconforming mortgages, continue to function poorly if at all. Read the rest of this entry »
Posted in Miscellaneous, International Markets | Please post a response »