REMODEL UPDATE

Spring is here and work is underway on our 4th and final phase of our office remodel.

The new Property Management Department offices are now being built in the area formerly occupied by the Accounting Department staff.

It’s been a challenge to take care of business amidst the noise, disruption and moves.

The staff has done a super job handling it while “taking care of business”. We invite you to stop by and take a look!

MARKETING MATTERS

According to the California Association of Realtors:

- Although the national foreclosure rate rose 79% between Dec. 2006 and Dec. 2007, the rate was still only 1.033% of all homes. This is a regional problem, not reflective of the overall real estate market.

- Foreclosure statistics are rarely presented in context. Because about 30% of home are owned free and clear, only seven-tenths of 1% of all homes were in foreclosure last year.

- As many as 15 million homeowners now owe more on their mortgages than their homes are worth. Homeownership isn’t building wealth for these people, James Surowiecki editorializes.

T.I.C. TRENDS IN SAN FRANCISCO

Tenants-in-Common ownership, where by a buyer owns a percentage interest in a property with rights to a specific unit, has increased in popularity in recent years.

According to a study by Plan C, an organization committed to improving the quality of life in San Francisco, TIC’s are concentrated in the most progressive neighborhoods such as Castro/Noe Valley, Haight/Western Addition, Mission/Bernal Heights and North Beach Chinatown.

According to U.S. census data, TIC’s are being formed primarily in solidly middle class neighborhoods. In fact, recent data show increased activity in the Richmond, Sunset and Excelsior Districts.

It’s unfortunate that laws are not liberalized in San Francisco to create more entry-level homeownership opportunities. The TIC market has evolved as an “answer” to the lack of leadership in City Hall to change the status quo.

HIGH CLOSING COSTS?

According to Global Property Guide, a recent study rated Real Estate transaction costs in the U.S. among the lowest in the world.

The report shows that U.S. transaction costs represent 9.07% of property values, compared to Korea, which has the highest rates at 22.08%.

Transaction costs include registration fees, Real Estate agent fees and transaction fees.

The National Association of Realtors (NAR) works closely with national Real Estate organizations of other countries in improving the practitioners’ professionalism so sales can be handled more cost-effectively.

GOING PAPERLESS?

Property Management or Loan Department clients who currently receive checks by mail can save time and paper by enrolling in Electronic Transfer.

When you enroll in Electronic Transfer, your monthly check will be automatically forwarded to the bank account of your choice (checking or savings account).

Give us a call at (415)752-3600 to find out how you can arrange for auto deposits.