Beware of scare tactics of unscrupulous tree triming crews who warn homeowners (particularly the elderly) that “the tree is dangerous and may fall on their house” or are “in the neighborhood and will give you a good price if they act today”.

Protect your assets.  Hire qualified people to work for you.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800

When making conversation with someone new to us we often ask “So what do you do?”

Here’s my response:  ”Well, you know when people are buying or selling a home how nervous and stressed out they can get?   I take care of all the details and paper work; I support and protect them through the process; and make the whole thing a relaxing, enjoyable experience for my client.”

At the end of the transaction my goal is to have my clients affirm that I have always acted in their best interests.  Negotiation and marketing are more an art than a science – skills learned from many years of experience; but trust and care are equally important.  I call the process the “art and heart of real estate.”

Home buyers and home sellers feel empowered by all the information now available on the internet, but there is lot of misinformation out there too. Knowledge  is how you interpret and use information; integrity is an expression of your motive.

Because I blog, some Realtors think I get most of my clients through the use of social media.  Actually, most of my business is by referral from really nice people who share my values and who appreciate the knowledge, experience and care I bring to a real estate transaction.  Thank you for your trust, respect and friendship!

For a very real and funny take on the real estate business, check out Kris Berg’s Vook.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800

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Two situations are prompting homebuyers to want to make simultaneous offers on multiple properties: 1) a hot market with multiple offers, and 2) a short sale where it may take a bank a long time to respond to an offer.

Buyers need to be aware that if they persuade some real estate agent to write simultaneous offers on multiple properties with the intent to cancel one of them during a contingency period, they may be subject to damages in favor of the seller, because of implied covenant of good faith and fair dealing. That’s why I will not engage in such practice as a Realtor on behalf of my home buyer clients and I will try to screen out such buyers when I represent home sellers.

If an offer to purchase real estate has a time limit for seller to respond and that time has expired, then a buyer may* have an out. If a buyer’s offer has expired, in order for a signed and delivered purchase contract to be valid, it should also have a counter signed by seller and buyer, acknowledging an extension of date of acceptance.

* A good real estate resource for legal matters is the California Association of Realtors legal website. This blog post is not intended to give specific legal advice, just general information to alert you to issues of importance; if you have an accepted contract and you find yourself as a buyer or seller in such a situation, you should contact an attorney.
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Rick Bonetti | Alain Pinel Realtors | Saratoga, CA | 408-857-8800

When it comes to selling your home certain precautions need to be taken regarding animals.  Some cats are restricted to inside only, for their own protection;  it important that the listing agent place notes of caution on outside doors of  ”please don’t let the inside cat outside”, so Realtors showing the property will be extra careful.

Some dogs zealously want to welcome you by jumping up and licking – others bark at strangers to protect there territory and their masters.  The forth line of the MLS listing comments should be used to alert showing Realtors of what to expect regarding dogs.

If the homeowner is always at home, its easy to control their canine greeters by temporarily placing them in a safe, out-ot-the way location in the house, garage or fenced yard and clearly signing that there are pets behind the door.

If Realtors call ahead to make a showing appointment, as they are instructed to do in the MLS showing instructions, homeowners can arrange timing of showing when this will not become an issue.

The problem comes when owners are not at home and the showing Realtor and their prospective buyers are greeted at the door with chaos that causes fear or uncertainty as to whether it is safe to enter.  Today I came across some practical advice on managing your pet from dog trainer Carla Jackson, whose picture is shown above on this blog post.

Pet odors are one of the biggest turn-offs to potential buyers as they open the front door.  Often it is necessary to re-carpet the entire house to get rid of the smell if cats have urinated on the carpet.  Every homeowner wants to make the proper first impression when selling their home and be considerate of their pets as well.  We’re here to make the sale while respecting the rights of all.

Rick Bonetti | Alain Pinel Realtors | Saratoga, CA | 408-857-8800 | DRE # 01237009

Inventory of homes for sale in Saratoga, CA 95070 is climbing, but is still a low 86 detached and 11 attached homes.  Last week 21 detached homes were added to the inventory including 3 homes where unfortunately the transaction fell through (TFT).  Four attached homes were added to the market of available homes for sale in Saratoga.

There were 6 new pending detached sales in Saratoga (including one high priced home on Cuvilly that went into contract last year) and 1 attached home.

Only one detached home on Kosich Ct. closed escrow at $1,160,000.

Go to my website www.RickBonetti.com for detailed information.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800 | DRE # 01237009

These homeowners face the moral decision of walking away from a contract (an obligation) – most don’t want to do it.  I also talk to other real estate agents who have listings where the seller desperately hope they will find a buyer at their full price to “save face” and save them from the short sale or foreclosure process.

A New York Times article of January 17, 2010 says it is our govenment’s position to disuade people against foreclosure.  It further calls walking away from a mortgage antisocial and amoral.  Today Broker Mike Bell blogged about the ethical dilemma of strategic walk-aways.

Is a short sale the answer?  Perhaps not, because you have to prove hardship to the bank – they must be convinced you have not other alternative for them to cooperate and take less than what is owed on the promissory note.  Purchase money loans and deeds of trusts may be non-recourse, but most refinanced mortgage loans are recourse loans, meaning the bank can go after other assets to pay the obligation.  This is an important area where people in this situation need to get legal advise – it is clearly beyon the scope of my license as a real estate agent.  The following is a brief overview only and not a substitute for obtaining professional legal and accounting advise.

Sellers facing mortgage difficulties have several options including:

• sale of a home with full loan payoff from personal assets
• a loan modification
• short sale
• foreclosure
• deed in lieu of foreclosure and
• bankruptcy

Each Seller’s situation is different.  The Seller’s decision as to which of these options is chosen may affect the seller’s taxes, credit rating, and/or future options.

A short sale means that there is insufficient equity in a Property for a seller to pay off all of the liens, including deeds of trust, judgments, unpaid taxes and any other debts that have been recorded against the Property and/or closing costs, including real estate commissions.

Therefore the Seller’s Lenders must agree to take less money than they are legally entitled to receive so as to enable the Seller to sell the Property to the Buyer upon the terms agreed to in the Purchase Contract.

As part of the short sale approval process, Lenders will issue a letter or other document detailing the terms and conditions upon which the will agree to a short sale (“Term Sheet”). The Term Sheet must be adhered to by all parties.  A Seller is only entitled to the Lender-approved short sale if ALL of the terms and conditions required by the Lender(s) are fully met.

There is potential liability for any party who tries to circumvent or “work around” those terms and conditions either through escrow or outside of escrow. All payments to be made by any party to anyone as part of the Buyer’s acquisition of the Property must be fully disclosed to all Lenders and approved by all Lenders.

There may be significant legal and/or tax ramifications to the Seller as the result of a short sale.  For example, the Term Sheet may:

1. Require that the Seller sign a new note, and possibly even record a Deed of Trust against other property owned by Seller;
2. State that the Seller remains liable for any amount forgiven by Lenders as a result of the short sale;
3. State that the Lender reserves its right to hold the Seller liable for that amount in the future; or
4. Be silent as to future Seller liability for that amount.

As such, Sellers should not even consider approving the Lender’s Term Sheet and/or proceeding with a short sale without first reviewing his/her legal and financial status with appropriate professionals including attorneys who specialize in bankruptcy issues and financial advisors who understand the tax implications of reducing the Seller’s debt as part of a short sale.

In a short sale, Seller’s Lender is not obligated to approve the short sale and is not obligated to provide any type of response regarding the short sale during any set period of time.

If the Seller has ceased making mortgage payments, Lenders may file a Notice of Default and proceed with a foreclosure action notwithstanding the fact that there are ongoing short sale negotiations.  Negotiating a short sale does not stop the foreclosure process!  Agents cannot and do not guarantee that a short sale can be obtained from Lenders and/or that the foreclosure process can or will be stopped. If a Notice of Default has been filed, Seller should immediately consult with a real estate and/or bankruptcy attorney.

Buyers and Sellers should also note that:

1. A sale may not close unless all of the lienholders agree to take the amount that is offered to them (as specified by the Term Sheet) which may be considerably less than the amount that is owed to them;
2. Escrow could be delayed for a substantial period of time as a result of resolving the various issues involved in a short sale;
3. Agent cannot guarantee that escrow will actually close or when it will close;
4. Buyers and Sellers have a duty to exercise reasonable care to protect their own interests by conducting their own investigation and verification of all information that has been or will be provided to them regarding the short sale process and/or the Property;
5. Agents cannot and will not provide any tax or legal advice regarding the legal or practical effect of a short sale transaction or a possible foreclosure; and
6. It is Sellers responsibility to consult with their own legal and tax professional regarding the effects of the short sale.

Realtors are not licensed to provide tax, credit and/or legal advice regarding these possible options, or how any of these issues may affect any sale of the Property. Because of these important issues, prior to proceeding with a short sale, Sellers are strongly urged to consult with a Certified Public Accountant, credit consultant, and/or an attorney specializing in real property, taxation and bankruptcy issues.

Life is not just about economics.  I respect and support the courage of those who want to do the right thing; at the same time I do not sit in judgment of those who find no other way out.  If a short sale is a possible answer, I am here to help.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800 | DRE #01237009

Last week Jill Hunter, Vice Mayor of Saratoga, CA asked me if trees contribute to home values in Saratoga and I said yes.  Acre+ estate properties frequently have heritage oaks that add to the beauty and distinctiveness of the neighborhoods.  On the other hand, they also act as a constraint to new construction as care must be taken to not encroach into the drip line of mature trees.

Saratoga is physically very green, compared with the east side of Silicon Valley.  Now the Cityof Saratoga is making efforts to be even more “green” in terms of environmental awareness with a tree planting effort patterned after New York City.

The Heritage Tree Society of Saratoga will be tracking the City’s effort to plant 2015 trees between January 1, 2010 and December 31, 2015.  The Heritage Tree Society will be creating an online database of the trees that have been planted. Residents will be able to share information about trees that have been planted by filling out a tree planting form and submitting it to the Heritage Tree Society.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800 | DRE #01237009

Moving is a good time to sort out extra furniture that does not quite fit in your new location.  Perhaps you are scaling down in size from a larger home;  selling a second home; or it’s “just the right time” to get rid of your older furniture and upgrade for a fresh start and a new style in your new home?

Instead of selling your used furniture and household items (which is often time consuming for minimal $ return) would you consider donating them to families who are emerging from homelessness and have nothing to furnish their affordable apartment?

In August 2009 the San Jose Furniture Bank was set up to warehouse and distribute furniture to battered women with children, victims of disasters and working families just coming out of homelessness.  Here’s what SJFB is looking for:

• mattresses, box springs, bed frames
• dressers, chests, armoires, mirrors, night stands, tv stands
• dining tables and chairs
• cribs, changing tables, highchairs
• buffets, hutches, china cabinets
• coffee tables, sofa tables, end tables
• sofas, loveseats, armchairs, ottomans
• lamps, kitchenware, linens, microwave ovens

The San Jose Furniture Bank is a program of the National Furniture Bank Association and can be contacted at SanJose@nationalfurniturebank.org

Here’s what they do NOT take:

• anything torn, stained, broken, or structurally unsound
• desks, file cabinets, office furniture
• outdoor furniture
• large appliances
• pianos
• game tables
• exercise equipment
• hospital beds
• waterbeds
• knick-knacks
• light fixtures, window treatments, carpeting
• computers
• books, clothing, toys, car seats, strollers, playpen
• large entertainment centers

Thank you for your consideration.

Should seniors who have lived in their Saratoga home for many years and have built up considerable equity sell now or wait until the value of their home rebounds?  What if they need cash now – are there other ways should they consider to tap that equity without selling.

Wall Street Journal Online has a report called Encore, geared for retirement planning concerns.  A recent article Trading on the Future suggests that a “shared-appreciation arrangement” (equity release) is gaining popularity among homeowners in or near retirement, as an alternative to a standard equity loan or reverse mortgage on their home.

Through a share equity agreement a homeowner agrees to give up part of a home’s future appreciation in exchange for cash — typically 10% to 15% of the property’s current value.  If a property’s value has declined by the time the owner decides to sell it or terminate the contract, the homeowner gets to keep some or all (depending on the agreement) of the cash he or she is given upfront, but if it appreciates they might give up half the gain and in the end pay more than if they had taken out a conventional home equity loan.

Part of the initial appeal of a shared equity agreement to homeowners is that they aren’t saddled with monthly payments, as in the case of a home-equity loan and closing costs are typically less than that of a reverse mortgage.  But be careful, because as the article explains, there are risks involved.

In my personal opinion, a standard equity loan is a preferred way to go if you need cash to live on right now (because rates are low) and want to stay in your home a while longer.  If you are ready to sell for other reasons, call me and I will let you know what your home is currently worth and what real estate market trends are telling us.  It’s your decision when is the best time to sell your home and you need good data and a Realtor you trust to help you make that choice.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800

Are you thinking about doing some remodeling? If so, for the best return on investment, go green. The new term is “eco-renovations” and some homebuyers are paying a premium for the added value of energy-efficient houses.

• Light Bulbs – Sounds too easy, but CFL florescent light bulbs use a quarter of the electricity as regular light bulbs. Since lighting on average accounts for 20% of your home energy use, this is a quick fix.
• Recycling -If your neighborhood doesn’t have curbside recycling, you can now recycle #5 plastics (cottage cheese, prescription drug and yogurt containers) at most Whole Foods locations.
• Energy Efficient Appliances – EPA’s Energy Star appliances may be 10% to 50% more energy efficient. Installing a programmable thermostat and motion detectors are advised. Visit the Department of Energy’s site for more information: www.eia.doe.gov
• Paints – Use new “low-VOC” paints, which stand for low “volatile organic compounds.” Many people with allergies, asthma and chemical sensitivities ask about this now.
• Tax Credits – With eco-remodeling, you may qualify for federal, state or local tax credits given for green projects. Search on www.thedailygreen.com for updates. Remember – green may bring more gold (money) when you decide to sell. So keep track of your improvements and document how your monthly energy bills change over time.