What? She's carless?

I did something that is apparently radical in my industry. I sold my car, my 1987 Jaguar to be exact. The radical part was not buying a new one. A real estate agent without a car? How will you drive clients around? How will you carry your signs? What about the hills? How will you project the right image? (The last question is my favorite.) I don't know why this seems like the easiest thing in the world to do. I'll use car share of course! Duh. And when I don't need a car I'll ride my bike.

I got this *crazy* idea when Eric and I went to Amsterdam recently where EVERYBODY rides a bike. Rich people, poor people, mothers ride with two small kids one in the front and one in the back, people on cell phones, I mean everyone! And they all ride in style wearing heels, dresses, beautiful coats and suits. They ride in the cold, they ride bikes to work, out to eat, even grocery shopping. So, if the lovely people of Holland can do it why not me? San Francisco is beautiful most of the time and when it's not there is always car share.

So, off I went yesterday in my suit (and flats--I need to do this a little more before I graduate to heels) to an office meeting in Presidio and it was GREAT! I wasn't stuck in traffic. I didn't have to look around for parking. And it didn't take me as long as I thought, so okay, this is fun!

 

The great thing is, I can expense the car share charges like a car rental and never have to pay $250/month for parking ever again!

Now, do I choose Zip Car or City Car Share?  I'll keep you posted!

First-time Homebuying From a Position of Strength

I was thinking about what Bobbi wrote (3.5.08 post) and I wanted to get on my soapbox for a minute.

I have seen so many first-time home buyers wait until they find the house they really want before discussing real numbers with a mortgage broker. Can you guess what happens next? They find out that their credit isn't up to par or they have to put more money down and then the depression kicks in along with frustration and sometimes anger.

In my experience, the waiting comes from fear. It's fun to look at houses, check out what's going on in a neighborhood you like or figure out where to put the couch---that's the easy part, HG TV thrives on it.  But, when reality sets in you are forced to deal with the numbers.  Numbers make it real...and for some real scary. They are scared of seeing themselves as too grown up or scared of not being able to understand the math, or scared of the right time to buy, etc, etc. I've met people at open houses who have never pulled their credit score, ever, mostly afraid of what they will see. Yet, they continue to ask me about remodeling ideas and options for a garage. To lessen stress on yourself and your agent, meet with a mortgage broker first. She/he will assess what's going on with your finances and determine what you need to do in order to get the best loan.

Don't make it harder for yourself. Instead of being stuck in a REACTIVE situation, be PROACTIVE. Enter your real estate transaction from a position of strength by knowing where you stand financially. Do you go to the grocery store without looking at your bank balance? Do you buy a $400 dress without considering your budget? Most likely not because most of us are smart, thoughtful people who manage our daily lives with financial consideration. For so many people, buying real estate throws their rationality out of whack.

Take a deep breath and try to keep the emotions out of this very emotional purchase. Find out where you stand financially, then take the steps to get where you really want to be. THEN look for the house, put in an offer, negotiate, and work your way through the disclosure packet--which is another beast altogether. When you do things one at a time, instead of overwhelming yourself with learning the whole process at once, you'll be a happier and wealthier home buyer. I promise!

Bobbi Clemens Mortgage Advice: Preparing your Credit

I am working with a lot of first time home buyers right now and I seem to run into the same couple of issues: little or no credit history and last minute preparation. By taking the time to build the proper credit, you will give yourself ample lending options, which is key to finding the best mortgage in this market.

A quick reminder: With good credit, 680+ you can still get a loan with only 10% down.  20% is needed in the case of credit below 680. 

Issues and Solutions

1. Not enough credit history:  Most lenders require 3 (some require 4) tradelines be open for at least 24 months.  A tradeline can be a car loan, student loan, or some type of credit card.  Once a card is open, never close it - use it two or three times a year to keep it active.  Depth of credit history positively affects one's score.

2. Using too much of their available credit leads to a lower than necessary credit score.  Use no more than 30% of the available credit on any given card.  If you have the cash to pay down your cards, spread the available funds across several cards to reach the 30% mark.  Don't have the cash to pay balances down to reach the 30% mark? Call your credit card companies and ask them to increase your available credit.

3. Receiving a "gift" at the last minute. You don't have at least 5% of your own funds for a down payment, so you ask your parents for a money gift. Be sure to deposit the money into your account at least two statement periods before going into contract.  This alleviates the need for a gift letter and gives the you more lender options.

4. Not assessing their credit situation with a mortgage broker long before going out to shop for a home.  The reports that consumers pull for themselves vary greatly from the mortgage credit report a lender will pull for you.  I regularly see differences of 30 points or more.  For a nominal fee, a lender can pull the proper type of report so that you know they are judging you on.

Maybeck House--if I only had $3.8 million dollars

Interior photos of the Maybeck house at 720 Castenada are finally up, yay! My god, what a beautiful home. These photos are a little small, so check out the listing here.

Socketsite did a little more research than the listing agent and found some great history on the place. Read Too Beautiful To Describe (Except By The Architect): 270 Castenada for the architect's full description. (They are referencing the listing agent's marketing copy that reads: "Too beautiful to describe."--made me laugh!)

Airstream Livin' Hello and Goodbye

Ah the Airstream.  Apartment Therapy posted about the Airstream today and I thought, oh, I’m going to blog about this. Don’t we all love Airstreams? They hold such romantic ideas of cross country travel for many of us. And this one, designed by DWR is very hip and cool and just under $50k. After reading the comments I started to day dream a little more about the idea of taking long driving trips with Eric to Yosemite or San Diego.

Then, I remembered that you have to stay in an RV camp.

One summer, my whole family rode with my grandparents from Texas to Florida in an RV hopping from one KOA campground to the next. The child in me fondly remembers playing tetherball with a bunch of boys sporting crew cuts, eating baloney sandwiches every day for lunch and running around with my sister in the warm night air chasing lightning bugs with two girls from Mississippi who wore their bathing suits and nothing else all day (there wasn’t a pool). It was a white trash vacationing at its best. It was also the late 70s. Wasn’t everyone white trash then?

God, having an Airstream means living in RV camps for weeks on end! My parents were young, in their very early 30s, they didn’t know any better. But, I’m about to turn 40 (okay, about to turn 38, but I’ll be 40 soon…) and somehow the glorification of white trash living is no longer as appealing to me as it was a few years ago. The idea of drinking Coors and eating hotdogs more than once a week makes my indigestion kick in and forget about the mosquitoes, I just can't rally around the emotional commitment of constantly lathering myself with OFF.  I think I’m more of a weekend camper.  I’m afraid long distance touring with the Airstream is out of my cultural grasp. I’ll leave that for the young and the retired.

Interior still life by Nicole Gee

good morning, 2008
Originally uploaded by gee, nicole.

I love using Flickr's Explore tab to look at photos I might never find through my contacts and their maze of tags. I found Nicole Gee's photostream in the Interstingness section and immediately added her to my contact list. Everyday, I look forward to her next still life photo. Often afterwards I think, gosh, I really want a muffin right now!

What does a conforming loan buy you in San Francisco?

Lowest rates in years! Refinance! OMG the buyer's market is finally here! Yes, for some. When you read about 30-year mortgage interest rates dropping, newspapers are reporting on conforming loans or loans $417,000 and under. SFGate is especially good at keeping this detail out of the headline. It's confusing to everyone. The reduction helps a lot of middle America or folks with adjustable rate mortgages, but for everyone else in large cities, it means very little. Why? Because unless you bought a house in the 80s then you are sitting pretty to refinance. But today a loan of $417,000 (and 20% down) will buy you about $500,000 worth of house or condo. (TICs are nonconforming and have not experienced a reduction in rate and in fact are almost 2% higher than conforming loan interest rates--they still give you more room for your buck however!)

So, what exactly does that buy you in San Francisco? I'm sorry to say very little. Literally. Square footage for the average $500,000 house is 1,137 and 675 for a condo. The discrepancy you see here is the fact that condos are in dense areas centrally located in the city while the houses in this price range are mainly in District 10 (i.e Bay View and Outer Mission). Check out current sales of Single Family Homes. Sadly, many of the homes for sale in district 10 are in foreclosure or short sales. I have a feeling there were a lot of 100% financing/adjustable rate mortgages sold out there. So, if you don't mind the challenges of a not-quite-gentrified-neighborhood or find the 3rd street light rail perfect for your commute (only 20 minutes into downtown), then 2008 is a great year to buy a house in district 10. Just be sure to save some money for renovations. A lot of money.

Condos on the other hand, in this price range, are even smaller. The average square footage for a $500,000 condo is 640. What they lack in size, they gain in location. These condos can be found all over the city and can be a great way of getting into the market. Check out a full list of current condo sales. You'll notice again, they are not all in the best condition. Keep your contractor glasses on and look for potential.

This sweet 2 bedroom at 1111 Potrero Ave needs a little help in the kitchen, but otherwise is quite charming. Okay, I just used the realtor term "charming" which means small, but I told you that already!


Now, if Congress passes the controversial Economic Stimulus Package, the  conforming loan limit would be pushed up to $625,000 nationwide and $729,000 in larger cities such as San Francisco for one year. That's right only during 2008. With 20% down, a loan of $729,000 will buy you an $874,800 house at the lower conforming interest rate. Which is an altogether different situation for Condos. In the $725k to $825 range, square footage jumps up to 1139. While houses in that range see a little jump up to 1470 sqft.

If this package passes and you've been sitting on a pretty sum for a down payment waiting for the market to change I have a little secret for you....buy early before all the other buyers just like you take advantage of the situation and flood the market. We all know what happens when more than one buyer wants a house at a great interest rate.

Big Type for your wall

I bought a Douglas Wilson print for Eric's holiday present this year from Keep Calm. Wilson is an multi-disciplinary artist and teacher out of Missouri. He made this with an antique wood type from the collection of John Horn. (it's now sold out, sorry!)

But, while I was checking out Wilson's website, I also found his blog (or "meanderings" because he hates the word blog) and it is quite good! Today he mentions being a recent convert to This American Life, which I find so cute. Anyway the blog is full of his favorite things related to type and graphic art. I just loved these Polish match box covers he found on Flickr by Maraid.

Sunny January Day

Sunny days in January are my favorite. They make me feel like I'm getting away with something! Mostly they remind me why it's so expensive to live in this little town. Take a quick walk around the block and soak up the sun!

New cellular phone laws for California

I was just passed a note regarding the new cell phone laws coming into effect July 1, 2008. Basically it will be illegal to use your phone in the car, including the speaker function. Dang. Now I have to buy one of those godawful ear pieces?! Here is the Q&A page from the DMV website:

Q: When do the new cellular phone laws take effect?
A: The new laws take effect July 1, 2008.

Q: What if I need to use my phone during an emergency and I do not have a hands-free device?
A: The law allows a driver using a wireless telephone to make emergency calls, including, but not limited to, calls to a law enforcement agency, health care provider, fire department, or other emergency services agency.

Q: What are the fine(s) if I am convicted?
A: The base fine for a first offense is $20, and $50 for each subsequent conviction. The courts will impose additional administrative fees.

Q: Will I receive a point on my driving record if I am convicted for a violation of the cellular phone law?
A: No. The violation is a reportable offense; however, DMV will not assign a violation point.

Q: Will a conviction appear on my driving record?
A: Yes, but a violation point will not be added.

Q: I drive a commercial vehicle and my phone has a “push-to-talk” feature that does not require me to place the phone to my ear, will I still be required to use a hands-free device?
A: No, only class “A” or “B” licensees operating a truck tractor as defined in Vehicle Code (VC) §655 or a motor truck as defined in VC §410 are allowed to use a “push-to-talk” feature.

Q: I drive a commercial pickup truck, may I use a two-way radio while driving?
A: No. The exemption does not apply to drivers of pickup trucks with commercial plates, even if the pickup truck is used for commercial purposes, for example, a contractor, landscaper, or other business.

Q: May I use a speaker-phone feature and hold the phone in my hand, but not next to my ear?
A: No. The law requires you use a hands-free device with your phone. A “push-to-talk" feature is not allowed.

Q: My car has a built-in hands-free mobile phone feature. Is this adequate or do I have to buy additional equipment?
A: No. You do not need to purchase additional equipment. You may use your vehicle’s hands-free mobile phone feature.

Q: Can I send a text message on my phone or Personal Digital Assistant (PDA) while driving?
A: No.

Q: Are passengers covered by this law?
A: No, this law applies to the persons driving a motor vehicle.