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Fall 2007 Issue
Market Update: Expecting a Good Year Overall
In spite of a summer of uncertainty, I'm as busy as ever working with both buyers and sellers.
I have had more transactions in the first nine months of this year than in any full year since 2002. Problems with the sub-prime mortgage industry caused multiple mortgage companies to go out of business in August, including Green Point and National City Mortgage. Although most purchasers in San Francisco's market are A-paper buyers and not zero-down folks, we did feel the effects of the turmoil when one of my client's deals fell apart because their mortgage company folded halfway through the escrow. But take heart - real estate in San Francisco is still going strong.
There are fewer people out there to offer mortgages these days, as brokers have fewer banks to turn to, but home loans will still be available. The psychological effects of the mortgage scare may keep some buyers on the sidelines for a little while, but they'll likely return now that fears have been addressed by the Fed's half-point rate cut last week. The low inventory we saw this summer is already growing as we round the corner into fall. That is good news for buyers.
We're in a watchful mode for the moment, waiting to see how the market reacts to all the new listings. September should be a good indicator of how the rest of the year will go. Buyers still want to live in San Francisco. Houses that are priced well and show well are still going to sell..
Click here for Paragon's Weekly Market Update
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Creative Marketing Showcases New Condo Development
I am pleased to be representing a well-known San Francisco development group in the sale of their exciting new 20-unit condominium development, Mission Valencia, at the crossroads of the same name.
Over the last month or so, I have been working with researchers, writers and graphic designers to create a unique brand for the building that evokes the rich history of the Mission area.
By the time you read this, the splash page of our website showcasing these recently constructed, classically designed two-bedroom units will be accessible at www.missionvalencia.com. Check back for the launch of the site and the complex in October at the same web address. The branded site will be a standout for a condominium development of this kind. It will feature a map of the Mission's hot spots and will provide buyers with interesting information about the history of the area. Our unique marketing approach for this project, from the logo to the floor plan names, reflects the intersection of different cultures that makes the Mission such a fascinating place to live.
If you're a history buff or a lover of the Mission District, check out our Mission Valencia "floor plans" link, showing seven condo plans named after streets in the neighborhood. You'll find fun historical facts about how these streets acquired their names, as well as what makes this part of the Mission the go-to place for exciting shops, restaurants and nightlife today.
I invite you to stop by and check out these units, which range in price from $599,000 to $850,000. And tell your friends about this great opportunity to own a piece of the action in one of San Francisco's oldest and trendiest neighborhoods.
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Remodel or Sell? Free Seminar Can Help You Decide
Thinking about remodeling your home, but don't know where to start? Wondering if you should sell instead?
Bay Area industry expert, Paul Winans, has been helping people like you answer these questions at seminars and workshops since 1991. This year, I've agreed to co-sponsor one of the Winans seminars on October 18th from 6:30 - 9:00 p.m. at the Randall Museum Theater in San Francisco.
Your Remodel: How to Make It a Success is a free, two-and-a-half-hour seminar that explains how to maximize the rewards and minimize the stress of your remodeling project. Topics include:
- Where to begin?
- Pre-design and zoning
- Understanding the design process
- Tips for setting a realistic budget
- Choosing and working with a professional remodeler
- Specific steps to ensure your project is successful
If you're in the remodeling planning process, I recommend you attend this seminar. It could save you a lot of time and money. If you're interested, please be my guest and RSVP to bdesimone@paragon-re.com.
Your Remodel: How to Make It a Success
Thursday, October 18, 2007
Randall Museum Theatre
199 Museum Way
San Francisco, CA
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Hosting a New Television Show — My House is Worth What?
I may not be ready for prime time, but I do have exciting news about another television series.
Home and Garden Television (HGTV) has again chosen me to be the San Francisco real estate expert for a show called, My House is Worth What? This new show takes an entertaining and unflinching look at what happens when homeowners renovate - for better or worse - and want to know how their improvements have affected the value of their home. Response to the show has been tremendous. It currently ranks #2 on the network.
The program host is Kendra Todd, winner of Donald Trump's popular "Apprentice 2" reality show. Kendra and I start out each episode of My House is Worth What? by touring the selected home with the owners, who describe all their decisions and improvements to us. After the homeowners leave, we tear the place apart - metaphorically speaking, of course. Then the owners return for our bottom-line assessment of their handiwork.
This show is fun and informative, and you won't want to miss it. Go to the HGTV Website for upcoming show times. As always, I'd love to hear your feedback.
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Featured Listing: Noe Valley Boutique Building Condo — 300 Valley Street #2
This two-level, 3 bedroom/2.5 bathroom condominium is located in one of Noe Valley's most sought-after boutique buildings.
onstructed in the 1920s, the building was once home to the St. Phillips Primary School before it was converted to condos in 1999. The house-like condo offers ample room for two master suites as well as a nursery or home office. A luxurious living space features custom-built, floor-to-ceiling bookshelves and cabinets with exposed brick. Cooks will love the modern, gourmet kitchen, which opens onto a spacious living and dining area perfect for entertaining. On the lower level, the master suite offers multiple closets, convenient built-in shelving and its own separate sitting area. The condo shares a large, park-like garden with bench seating. In-unit storage and one-car parking included!
List Price: $1,199,000
For more photos and information, please visit: www.NoeValleyCondo.com.
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Out of State Investment Pays Off
I followed my own advice this summer and invested in a buyer's market out of state rather than sit on the sidelines here at home.
My newest investment is in the tiny town of Daphne, Alabama, 30 minutes from Mobile and light years from the fast pace of life in San Francisco. Why so far away? Because that's where there are opportunities in the form of federal tax breaks on investments in new housing. Daphne is also right near the water, but out of the flood zone, and business growth and employment are strong in the Mobile Bay area.
All along the Gulf Coast, more than 200,000 homes were destroyed and even more people were displaced by Hurricane Katrina. The region is called the "GO Zone" (Gulf Opportunity Zone), and to make up for the lost housing, the government is offering an incentive for investors willing to build or purchase. Buyers can take a special, first-year depreciation deduction equal to 50 percent of the property's depreciable basis (which is total price minus land value).
The national builder of my house, D. R. Horton, knocked $11,500 off the $250,000 sale price, and I was able to leverage his money to buy down my interest rate and get a 30-year fixed mortgage with only 10% down.
From Baton Rouge, Louisiana to Jackson, Mississippi and Mobile, Alabama, GO Zone properties are a once-in-a-lifetime housing investment opportunity. With a conservative expectation of 5-7% yearly appreciation, rent that nearly covers my mortgage, and a huge tax write-off this year, this investment made sense for me on every level. I was also able to negotiate a 3% discount on property management fees. If you're interested in purchasing a home in Alabama, I can help you make the same arrangement with my management group. Please give me a call if I can provide you with helpful investment advice regarding a purchase in Alabama or elsewhere.
Informational Links:
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