September 2008 Volume 1, Issue 2
What’s Inside
This historic Adobe Farmhouse
Market Data & Activity
2
Pleasanton Statistics
3
Dublin Statistics
4
Livermore Statistics
5
Meet Our Team
6
Faran’s Sold
8
Current Listings & Pending
10
Pleasanton Bank Owned /REO Properties
12
What is an REO?
13
Community Page National Night out
14
New Housing Bill
15
Technology Tips
16
This historic adobe farmhouse was built by Francisco Alviso in 1854. The building is restored to what it thought to be its periods between 1910 to 1920. The buildings will house educational exhibits and interpretive materials to provide insight into the history of the site and region. The City is working with the Pleasanton School District to align the programming to the curriculum. Because there are so few adobe structures from this era in the region, the park will serve as a very valuable resource for schools. The state’s fourth grade curriculum covers the economic, social and political life in California from the establishment of the Bear Flag Republic, through the Mexican-American War, the Gold Rush, and the granting of statehood. The Alviso Adobe site played a key role in this exciting period of state history..
YtÜtÇ CEO / Broker Cell:
925 922-0822
Web: www.HomesByFaran.com
Quarterly Market Data Report Pa ge 2
Luxury Homes Over $1,500,000 Market Statistics Pleasanton Homes $1,500,000 and Up Since June 1, 2008 Neighborhood Bedrooms Sqft List Price Sold Price $/SqFt Happy Valley Sunset Creek Hanifen Way Sycamore Creek Happy Valley Neighborhood Average
5 5 5
4287 4300 4312
$ $ $ $
1,699,900 1,999,000 1,799,950 1,832,950
$ $ $ $
1,648,000 1,840,000 1,720,000 1,736,000
$ $ $ $
384 428 399 404
Foothill Laguna Creek LN/Laguna Oaks Lupine court/Golden Eagle Estates Benzon /The Preserve Oak Creek Drive Laurel Creek Drive/The Preserve Foothill Neighborhood Average
5 6 5 4 5
5329 6100 5100 3763 3717
$ $ $ $ $ $
1,799,000 2,549,000 1,650,000 1,799,000 1,648,000 1,889,000
$ $ $ $ $ $
1,780,000 2,250,000 1,625,000 1,690,000 1,600,000 1,789,000
$ $ $ $ $ $
334 369 319 449 430 380
6 5 4 6 5 5 6
6234 6388 4703 6600 6473 6300 8600
$ $ $ $ $ $ $
2,100,000 2,499,000 1,995,000 2,488,000 2,600,000 2,849,000 3,998,500
$ $ $ $ $ $ $
2,020,000 2,325,000 1,860,000 2,231,000 2,365,000 2,700,000 3,930,000
$ $ $ $ $ $ $
324 364 395 338 365 429 457
5 3 5 4
5455 4003 3969 4112
$ $ $ $ $
235,000 1,550,000 1,599,900 1,599,950 2,137,668
$ $ $ $ $
2,150,000 1,511,250 1,570,000 1,500,000 2,196,568
$ $ $ $ $
394 378 396 365 382
4 4 5
4205 3101 4614
$ $ $ $
1,580,000 1,795,000 1,839,888 1,738,296
$ $ $ $
1,530,000 1,725,000 1,725,000 1,660,000
$ $ $ $
364 556 374 431
RubyHill E Ruby Hill Ruby Hill Drive Bersano Drive Via Di Salerno Armondo Court Antonini Way Via Di Salerno Raboli St Ovella Way Campinia Place Vierra Street RubyHill Neighborhood Average Other Neighborhoods Briones CT Mirador Wild Avenue Other Neighborhoods Average
Pleasanton Average for homes above $1.5 Million
$
43,673,088 $
$
1,985,140 $
43,295,250 $ 8,611 1,967,966 $
391
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bâÜ gxtÅ Extraordinary Team of Realtors with One Goal… Your Real Estate Needs!
Faran CEO/Broker
Jahan Honardoost President
Cheryl Weber International Property
Tom Husnick Financial Advisor
Will Doerlich GRI Broker/ Notary
Specialist
Mark Nadim
Cassandra Yazdi
Evelyn Sousou
Real Estate
Associate
REALTOR
Investment Catalyst
Pari Kazerooni REALTOR
Janice Rubero Transaction Coordinator
Janna Gonzalez Associates
Sujatha Jamwal REALTOR
Muhammad Moosa
Audrey Faulkner
Jill Angel
Gayle Colvard
REALTOR
REALTOR
Associate
Gertha Davis
Stacie Nicole
Michelle Quarry
REALTOR
REALTOR
REALTOR
Tiffany Lorraine Associate
REALTOR
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unparalleled
Page 8
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YtÜtÇËá fÉÄw
Kolb Ranch Estates Pleasanton, Foothill Represented Buyer & Seller $2,191,800
Kolb Ranch Estates Pleasanton, Foothill Represented Seller $2,530,000
The Preserve, Pleasanton Pleasanton, Foothill Represented Buyer $1,810,000
Cardinal Ct. Castro Valley Represented Seller $1,220,000
Fairfield Ct, Pleasanton Represented Seller $775,000
Lupine Ct., Pleasanton Golden Eagle Estates Represented Buyer $2,250,000
Curry St, Pleasanton Represented Seller $786,000
Phoenix ST, Danville Bank Owned/REO Represented Buyer $460,000
Bay Meadows, Pleasanton Represented Seller $525,000
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VâÜÜxÇà _|áà|Çzá
1903 Armando Ct. Custom Home Ruby Hill, Pleasanton $2,275,000
6093 Kolb Ranch Dr. Custom Home Fully landscaped & Pool Pleasanton, Foothill $2,498,000
6075 Kolb Ranch Dr. Custom New Home Pleasanton, Foothill $2,248,000
4 Custom Lots With View for sale Kolb Ranch Estates Pleasanton, Foothill $948,000 — 1,600,000
Castlewood Estates Pleasanton, Foothill Nicely Remodeled $1,575,000 Call for showing — not on
3625 Sonia View Ct Custom New Home Hayward Hills $1,888,888
Sold $725,000 3620 Sonia View Ct Custom New Home Hayward Hills $1,699,000
3610 Sonia View Ct Custom New Home Hayward Hills $1,850,000
Short Sale 36 Canyon Hills San Ramon Representing Seller Offered @ $595,000
Bank Owned Properties
Pleasanton Bank Owned Properties Market Activity since June 1, 2008 Interested in acquiring more information on Bank Owned and Short Sale properties in Pleasanton, San Ramon, Dublin and Livermore Please contact
SOLD PRICE
SOLD DATE
2Bd/1Bth
$ 254,900
Jun-08
790
1Bd/1 Bth
$ 256,000
Aug-08
Condo
748
1Bd/1 Bth
$ 270,000
Jul-08
364,900
Town Home
1190
2Bd/2.5Bth
$ 360,000
Jun-08
$
369,900
Condo
1043
2Bd/2Bth
$ 350,000
Jul-08
Sold
$
399,900
Town Home
1064
2Bd/2Bth
$ 400,000
Jun-08
Secretariat Dr
Sold
$
489,000
Duet
1421
3Bd/2Bth
$ 465,000
Jun-08
Touriga
Sold
$
510,610
Single Family
1549
4Bd/2Bth
$ 540,000
Jul-08
Roslin
Sold
$
560,000
Duet
1434
3Bd/2Bth
$ 550,000
Jul-08
Malbec
Sold
$
703,900
Duet
1549
4Bd/2Bth
$ 735,000
Aug-08
Chocolate
Sold
$
715,900
Single Family
2014
3Bd/2.5Bth
$ 720,000
Aug-08
Skimmer Ct
Sold
$
739,900
Single Family
1812
4Bd/2Bth
$ 725,000
Aug-08
CHERYL CIR
Sold
$
774,900
Single Family
2317
4Bd/3Bth
$ 753,000
Jul-08
East Gate
Sold
$
939,000
Single Family
3168
4Bd/3.5Bth
$ 895,000
Jun-08
ADDRESS
STATUS
LIST PRICE
PROP TYPE
SQFT
#Rms/#Bths
Norton Way
Active
$
299,900
Condo
1028
2Bd/1 Bth
Saratoga Way
Active
$
265,900
Condo
897
2Bd/1Bth
Pawnee Way
Active
$
299,900
Town Home
1130
3Bd/1.5 Bth
Woodbine Way
Active
$
314,000
Town Home
1120
2Bd/1 Bth
Comanche Way
Active
$
329,900
Town Home
1130
3Bd/1.5 Bth
Yuma Way
Active
$
369,900
Town Home
1130
3Bd/1.5 Bth
Norton Way
Active
$
378,000
Town Home
1120
2Bd/1.5 Bth
Saint Michael Cir
Active
$
379,900
Town Home
1540
3Bd/2.5 Bth
Black Avenue
Active
$
379,900
Town Home
1345
2Bd/2Bth
Glacier Ct
Active
$
509,900
Single Family
1311
3Bd/2 Bth
Rheem Dr
Active
$
545,000
Single Family
1314
2Bd/2.5 Bth
Harms Drive
Active
$
575,000
Single Family
1731
3Bd/2.5 Bth
Mohr
Active
$
743,900
Single Family
1592
3Bd/2 Bth
Calle Altamira
Active
$
752,900
Single Family
2422
5Bd/3 Bth
Spyglass
Active
$
909,500
Single Family
3021
4Bd/3 Bth
Victoria Ridge
Active
$ 1,050,000
Single Family
3018
4Bd/3 Bth
Timingham
Active
$
522,850
Single Family
1731
3Bd/2.5 Bth
Brockton Drive
Active
$
300,000
Town Home
1242
3Bd/1.5 Bth
Golf RD
Active
$
695,000
Single Family
2773
3Bd/2 Bth
Smoketree CMS
Active
$
235,500
Single Family
648
1Bd/1 Bth
Canyon Meadow
Active
$
264,900
Single Family
790
1Bd/1 Bth
Foothill RD
Sold
$
254,000
Condo
903
Mountain View
Sold
$
269,888
Condo
Division Street
Sold
$
279,900
Sheldon Cir
Sold
$
Mountain View
Sold
Passeggi CT
Call Us if you need more information on REO and Short Sale Properties
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What is an REO (Bank Owned)?
Looking for a bargain on a Real estate investment? A Bank owned property (lender-owned), also sometimes referred to as a REO (real estate owned) home or property is often a way to get a good deal on a home or an investment property. You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared. • • •
It was an asset of a homeowner, now it is a liability. Someone wanted to own it and now Bank is forced to sell it. Bank Executives are scared of loosing their jobs over these unwanted inventories.
REO vs. Foreclosure An REO (Real Estate Owned) is a property that goes back to the Bank after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale. Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property. Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property. REO Properties for Sale The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property. A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain. How do we select and buy an REO property? Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory. Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer. Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..Subject to corporate approval with 7 days." We look for properties were bank is not in a strong negotiating position to sell at premium: • • •
Property has been in their possession more than 30 days Property was acquired by homeowner in 2004-2006 and foreclosed in 2007 In case of Short Sale Second loan position has walked away
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axãá UÜ|xyá WASHINGTON -- U.S. lawmakers took the final steps towards to the most dramatic federal intervention in the financial markets since the Great Depression on Monday, taking to the floor of the House of Representatives to give impassioned pleas for and against a $700 billion Wall Street rescue plan. When the critical vote was tallied, too few members of the House were willing to support the unpopular measure with elections just five weeks away. Ample no votes came from both the Democratic and Republican sides of the aisle. After a weekend of tense negotiations, Congress settled on a tentative $700 bailout plan. WSJ's Washington Bureau Chief John Bussey looks at the deal and how markets are likely to react. The legislation was finalized Sunday after exhaustive negotiations between lawmakers and the Bush administration over the past week. A Senate vote to pass the bill and send it to President George W. Bush for his signature had been expected on Wednesday at the earliest. "It will be an effective intervention to restore the confidence necessary to avoid the kind of panic we haven't seen in this country for decades," Rep. Adam Putnam of Florida, the chairman of the House Republican Conference, said during a floor speech earlier in the day. House Financial Services Chairman Barney Frank (D., Mass.) said lawmakers need to act to avoid a "more dismal future" for the nation's economy. "The consequences will be severe" if we fail to act, said Rep. Frank, who was the key negotiator for the House on the legislation. House Financial Services Committee Chairman Barney Frank, Senate Majority Leader Harry Reid, Speaker of the House Nancy Pelosi and Senate Banking, Housing and Urban Affairs Committee Chairman Christopher Dodd. But it was clear that lawmakers from both sides of the aisle were skittish about voting on such a dramatic piece of legislation a little more than a month before the November elections. Polls have shown voters are wary of the plan to rescue financial firms by having the federal government buy up hundreds of billions of dollars of toxic assets, and many members described Monday's decision as a "legacy vote" similar to the decision to authorize the use of force in Iraq. "Only a couple of a times in a decade are we asked to stand up and be counted. This is one of those historic moments," Rep. Paul Kanjorski (D., Pa.) said. Rep. Gary Miller, a Republican from California, called it "probably the hardest vote" many lawmakers would take. His colleague, Rep. Tom Davis (R., Va.), agreed, but said it was a necessary evil. "I wish there was a better way but I haven't seen it," Rep. Davis said. "If this bill goes down I don't think most of my colleagues want ownership of what follows." Still, both Democrats and Republicans made clear they would oppose the legislation despite efforts of negotiators to satisfy a number of constituencies. Source Write to Michael R. Crittenden at
[email protected] http://online.wsj.com/article/SB122270285663785991.html?mod=googlenews_wsj
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f{ÉÜà ftÄx What is a short sale? Source: http://www.realtor.org/library/library/fg335 "A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan," according to the California Association of REALTORS®. "A short sale may or may not involve a property in foreclosure." This page offers information about the basics of short sales and advice for the real estate professional.
Short Sale Advantages • • •
Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure" Less impact on your credit score All mortgage debt is fully discharged
How Debt Forgiveness Works:
Author: Lance Churchill
With a short sale, the lender has three possible ways to handle the deficiency balance, which is the portion of the mortgage debt not covered by the sale of the home. First, the lender can attempt to collect the deficiency balance from the seller after the property has closed. Second, the lender may require the seller to sign an unsecured promissory note for the deficiency balance as a condition of agreeing to the short sale. If the new note is for less than the balance of the original debt, the difference would be considered canceled, or forgiven, debt. Third, the lender may agree to cancel the entire deficiency balance. On the surface, option three would be seem to be the best alternative for a seller. However, the IRS considers any canceled mortgage debt ordinary income. This means that the amount forgiven is taxed at the same rate — somewhere between 15 percent and 30 percent — as the sellers’ salaries. In addition, because the IRS requires the lender to file a 1099-C form stating the amount of the canceled debt, Uncle Sam will have a record of the exact amount of the debt that was cancelled. A seller will also receive a copy of the 1099-C to use in filing income taxes. The seller’s home state would also consider the cancelled debt as ordinary income. 4 Exceptions to the Rule The IRS does recognize four situations in which cancellation of debt will not result in tax liability for the seller. A seller may avoid tax liability: • • • •
When the borrower receives a bankruptcy discharge and the deficiency was included in the bankruptcy When the borrower is insolvent at the time of the cancellation of the debt. Insolvency would occur when a borrower’s liabilities exceed assets. Note that seller would have to prove this insolvency to the IRS when filing a tax return. When the debt was secured by a nonrecourse loan. Under a nonrecourse loan, the lender does not have the legal right to collect a deficiency judgment from any assets of the debtor not pledged to secure the loan. While most home mortgages are do not fall into this category, purchase money loans on a person’s residence are nonrecourse in some states. When the tax liability from the cancellation of debt on an investment property can be offset against other business liabilities and expenses. This exception does not apply to properties occupied as a residence by the mortgagor. In many short sales, a seller would be able to qualify under the first two of these exemptions, especially since it was almost certainly necessary to show financial hardship in order to convince the lender to agree to a short sale. However, it is the seller’s responsibility to notify the IRS why the amount in the 1099-C should not be counted as ordinary income. Otherwise, the IRS will consider the forgiven debt as income and penalize the seller for unpaid taxes.
What You Need To Know It is important to consult your tax adviser, about tax consequences of a short sale. With the current foreclosure crisis in this country, many, including NAR, are working to reverse this law. Editor’s note: The NATIONAL ASSOCIATION OF REALTORS® has long worked to change the tax laws and eliminate this “phantom tax” on income. Currently NAR is supporting the passage of S. 1394, the Mortgage Cancellation Tax Relief Act, which would repeal the law that requires home owners to pay taxes on forgiven debt for their principal residents as part of a short sale or foreclosure. Learn more about this topic at REALTOR.org.
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bâÜ VÉÅÅâÇ|àç On Tuesday, August 7th, in neighborhoods across East County, residents came together and showed a unified fight against crime. The citywide block parties marked the 25th annual National Night Out, in which neighborhood watches coast to coast encourage neighbors to meet one another and raise public safety awareness. The idea is that residents meet as a whole community rather than as small neighborhoods. It gives a chance for neighbors to meet each other, when they might not normally get the chance. It’s also a great opportunity to interact with the officers in their neighborhoods. The event is designed to give crime a “going away party” in our neighborhoods. This year the Pleasanton Police department was able to match the number of block parties that were held in 2007! At the Preserve Neighborhood, neighbors shared their concern with the police officers about Bart’s new station at the Mall and how it would affect the safety of the surrounding neighborhood. If you would like to register a block part of your own for next year, contact your local police department or download a registration form from www.nationalnightout.org/nno/.
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Housing Bill Has Something for Nearly Everyone BREAK FOR FIRST-TIME BUYERS If
you are buying a home for the first time, and it is your primary residence, you are eligible for a federal tax credit of $7,500 or 10 percent of the purchase price, whichever is smaller. With a tax credit, you subtract the credit amount from the total you would otherwise pay to the Internal Revenue Service. So if you owe $1,500 and you qualify for the credit, you would end up getting a $6,000 refund. There are two big catches, though. If you earn a modified adjusted gross income of more than $75,000, or $150,000 if you are married and filing your tax return jointly, the credit starts to phase out. For single people, it phases out completely at $95,000 of annual income, while for married people filing jointly, it phases out at $170,000.
But you have to pay back the credit over the next 15 years, in equal amounts each year when you pay your federal taxes. That makes this more like an interest-free loan than a true credit. According to the National Association of Realtors, there were about 2.5 million first-time home buyers in 2007. A large proportion of them would have qualified for this credit, but whether it is enough to push would-be buyers over the edge this year remains to be seen. For more information Please visit WWW.homesbyfaran.com The tax credit is retroactive to home purchases on April 9, 2008, and expires on July 1, 2009. If you purchase a home from Jan. 1, 2009 to June 30, 2009, you can claim the tax credit on your 2008 tax return. Consult with your CPA on this matter for your specific tax requirement.
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YtÜtÇËá Pleasanton Times YtÜtÇ 7031 Koll Center Pkwy, Ste 210 Pleasanton, CA 94566
If your property is listed with another broker, this is not intended as a solicitation of that listing. Information is deemed reliable, but not guaranteed.