Premier Newsletter Final 09-29-08 Web Ready

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

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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.