East Bay Real Estate

Just last November Jim Walberg began informing the World about his views of real estate markets.
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WOW! Last Friday I received a call from Marisa Katz who is doing an article for the London Financial Timesregarding what is happening in the U.S. real estate market, specifically in the Bay Area. I asked her why she called me for this information. She stated that she found me on my blog site that I launched just two months ago. She also discovered my Caribbean Islands Realty blog site, too, said she enjoyed the way they were written in a clear and understandable way, and that it appeared I was one of the more credible real estate blog sites she had visited in quite some time. I have to tell you that I was blown away.
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You have discovered that I have lived in the East Bay since 1970 and that I have been hanging out in the Caribbean sailing and practicing real estate for almost 30 years. I still have much more to discover, but I DO know the Bay Area and the Caribbean – from the Golden Gate to the Sierras, and the Turks & Caicos to Aruba. And, I even have my “shellback” earring as a symbol of sailing across the equator. All I am doing with my two blog sites is being a “…citizen journalist noticing what is going on in the world in which I live, work and play.”
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My original intent with launching two blog sites was to learn how to implement what I learned from the books “The New Rules Of Marketing & PR” by David Meerman Scott, and “Influencer – The Power To Change Anything”, by Kerry Patterson, Joseph Grenny, David Maxfield, Ron McMillan, and Al Switzler. My thoughts late last November were to learn the rules and strategies of blogging and then implement the strategies with my East Bay real estate company, and my Caribbean Islands Realty company. My expectation was that no one would notice what I was doing until I had mastered the rules. However, the world has discovered what I have been writing about regarding East Bay real estate and the Caribbean. Now, what has happened is more dramatic results than I ever dreamed would show up by just writing about what I notice each day regarding two very distinct and interesting real estate markets!
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Since my blogging began we have signed over 15 marketing agreements with international real estate developers who are creating destination and resort properties around the world – not just in the Bay Area and the Caribbean. The access that has been created for me with influencers would have never happened without jumping into the world of blogging – a very specific example of the POWER of blogging!
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Who would have ever dreamed that this “Old Salty Dog” at 60 years old would ever be noticed by anyone in the Blogisphere? See…there is hope for all of us who are willing to notice what is happening in the worlds we are living and working in, and then putting our experiences into writing. Until next time…Comments?

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The Sellers need to price accordingly and calculate holding costs.
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The East Bay real estate buyers may be playing a dangerous game in their attempt to time the bottom of the real estate market. From the statistics of 2007 the East Bay real estate market above $1 million has not had much of a decline in pricing. From a Sellers point of view of this price point, the Buyers are not as much in the driver’s seat as they may think. This is the biggest market opportunity for Sellers getting close to their price in 2008.
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When you are talking about the $600,000+ price point in East Bay real estate, it is a completely different story. WOW! What a mess for the Buyers who leveraged their mortgages with 100% or 95% mortgages. The market has corrected in this price point, big time. All you need to do is take a look at East Contra Costa and Alameda counties. The price corrections are causing Sellers to stop making payments on their mortgages because there is no reason for them to throw good money away at a selling price that will not payoff their mortgages.
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If a Seller in the $600,000 price range who is in trouble with their mortgage wants to sell their home FAST, they need to look at the lowest third of the price points in their slice of the market and get their homes priced there immediately! They will not get a sales contract on their home if they are not willing to take the PLUNGE. If you are speaking with any of these Buyers, just blame me for the suggestion I just made.
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Another very effective strategy for Sellers in this market is to offer a “buy down” of the interest rate for the Buyer. What his means is that the Seller would be willing to pay a 1% fee of the loan amount that the Buyer qualifies for in order to lower the Buyer’s interest rate. For example, if the loan amount was $600,000, the Seller would credit $6,000 towards the buy down of the interest rate. This has a dramatic effect on the amount of the Buyer’s monthly payment. This may end up being the key feature of the sale of the home that allows the Buyer to afford to actually buy it.
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We must get our creative juices flowing with “out of the box” ideas in order to stimulate the sale of homes instead of just having over priced homes sit on the market for months. It doesn’t serve the Sellers or the Buyers if creative solutions are not created for our East Bay real estate customers. Contact me if you want to discuss any of these ideas further. Until next time….

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Jim Walberg’s storm maintenance ideas for the next few days.
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WOW! What a storm hit today in the East Bay! My phone has been ringing off the hook from our real estate customers who are experiencing storm related PROBLEMS. The challenge is that the wind is driving the rain horizontally and it is getting underneath shingles and gutters. Some of my customer visits today included:
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• Water running down the face of the granite fireplace. ( Guess: rain blown under the chimney flashing.)
• A sheetrock ceiling section collapsing in the garage next to the garage door. ( Guess: gutters clogged up and water overflowing and getting behind the stucco and draining onto the garage ceiling sheetrock.)
• A lake forming in the backyard and draining under the house instead of down the landscape surface drains. ( Guess: landscape drains clogged from Fall leaves and debris.)
• Upstairs window leaking from under the window down the interior sheetrock soaking the carpet. ( Guess: exterior gaps around the window framing and the stucco exterior.)

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Now, I am not a contractor or a home inspector, but I have come up with several simple maintenance ideas to these storm related problems because of personally having experienced all of them. Here are some of the basic tasks to do during a break in the storms coming the next five days – probably Sunday morning.
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• Clean out the gutters ASAP. This is the main reason for roof leaks around the perimeter of homes. It is a pain to do, but it is critical to prevent leaks. If ceiling sheetrock starts to bubble or bow you may have water collecting on top of it, and it may only be a matter of time before the sheetrock collapses. A simple remedy is to take a broom handle and punch a hole in it to release the water. Be prepared for a flood so get your flooring protected and get lots of towels ready. The water mess is better than having the ceiling falling in on your home.
• Any flashing around chimneys needs to be caulked on an annual basis. Ask any Home Depot or Lowe’s for the proper material to use.
• Backyard drain issues where there are current landscape drainage in place is usually because the drain lines are clogged with debris from the Fall dropping of leaves. Typically this can be resolved with just putting a garden hose down the drain and turning the water on full blast. If this does not do the trick then you may need to hire a professional service to address the problem.
• Caulking around the exterior trim of windows is a MUST at least on an annual basis – especially with stucco siding. It is very easy to do this simple maintenance work, and a real mess if it is not done and you get water behind the stucco and then into your home.

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The East Bay is covered in water this weekend, but it is much needed rain because of the lack of it the past 18 months. Our reservoirs and the Sierra snow pack is benefiting greatly. The challenge is making sure our homes stay dry during the next five days of downpours. Let me know if you have come up with other rain maintenance ideas. Stay dry! Until next time.

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What does the crystal ball for East Bay real estate look like on New Year’s Day!
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So, 2008 has arrived and many of you will be making decisions this month regarding when to buy or sell real estate this year. The word on the street we are hearing is Buyers are saying they are, “…waiting for the bottom of the market…”, before they make buying decisions. The response question is, “What information are you using to determine when the bottom of the East Bay real estate market has arrived?” Buyers typically acknowledge that the only information they are using is from the media. Does that make sense? Not to me? Here are some factors a buyer may want to consider regarding when to buy in 2008:
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• The highest closed prices of the year typically happen with the escrows that close in April and May.
• Mortgage rates for “real buyers” are still at 20+ year lows.
• When you are considering homes in the East Bay which are priced at $1 million or more, the price changes during the past two years has been UP not down! What are buyers waiting for?
• The biggest price values in the East Bay are in east Contra Costa and Alameda counties. The big value price points are in the $500,000 range. (Many of these homes are in a “short sale” or “bank owned” status. Values abound, but a buyer will need to be VERY patient regarding the lengthy of time it will take to actually close the escrow.)

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Well, if you are a Seller, what is the best time to sell your home in 2008? Again, if we are looking at the crystal ball of past statistics, here are some factors to consider:
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• The highest sales price for homes the past several years have been the ones that closed escrow in April and May. This means your home needs to be on the marketing starting mid-January. We are talking about NOW!
• With the above information it is critical to be represented by a Realtor who has demonstrated they know exactly what to do in this entertaining real estate market.
• The homes for sale that have the shortest time on the market must be in “turn key” condition, and staged in a way where buyers have the experience of walking into “their new home” – light, bright and completely uncluttered.

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There are many consumers and Realtors that are glad to see 2007 come to a close. However, there are many of them who actually had their best year in real estate sales and purchases. Some of the comments of the Realtors who have had a record year in 2007 are:
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• Top Realtor, Ann Marie Nugent said, “People generally will not take the time to properly research and understand their local East Bay real estate market, particularly in these challenging conditions. They need to know I am doing it for them everyday, which is why I did not reduce my marketing spending in 2007. I actually increased it, and it paid off for all of my clients, and it was my best year ever as a Realtor!”
• Another Realtor comment, “I continue to focus on internet advertising since 72% of the consumers in the Bay Area start their real estate search on the internet”.
• Finally, “Because of creating a very successful real estate practice in the early 1990s, I have earned the reputation as an East Bay market expert. I need to really know the local market statistics, so my clients know how experienced and knowledgeable I am.”

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There has never been more opportunities in the East Bay real estate markets than right now! Let me know what your experience was in 2007 regarding the East Bay real estate markets.

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The last day of celebrating Family, Community, and African culture.
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Today is final day of the Kwanzaa celebration. After seven days of celebrating it ends on the first day of the year. Each of the celebration days has a topic. The final day is focused on Imani - Faith, “…the faith to believe with all our hearts in our people, our parents, our teachers, our leaders, our righteousness, and the ultimate victory of our struggle.”
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For each of the seven days’ celebrations, a specific place in the home is chosen to display the symbols of celebration. A table is spread with a beautiful piece of African cloth. The mat is placed on the cloth, and all of the other symbols are placed on it which symbolizes the deep roots of traditions. Next, the candle holder is placed on the mat and the seven candles are placed in the candle holder. The colors of the candles are black, red and green; black for the people, red for their struggle, and green for the future and hope that comes from their struggle – one black candle, three red candles, and three green candles.
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The table is then set with two ears of corn, and the Unity Cup. The ears of corn symbolize that all of us are social parents of the children of our community. The Unity Cup is used to pour the “libation” to the ancestors in remembrance and honor of those who paved the path down which we walk and who taught us the good and beautiful life. Finally, the table setting is added to with African objects and books on the life and culture of African people to symbolize their community to heritage and learning.
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The last day of Kwanzaa, January 1st, is for African people a time of sober assessment of things done and things to do, of self-reflection and reflection on the life and future of the people and of recommitment to their highest cultural values in a special way. It is a time to ask and answer soberly and humbly the three Kwanzaa questions: 1) Who am I; 2) Am I really who I say I am; and, 3) Am I all I ought to be? And it is a time to recommit ones self to the highest ideals of what it means to be both African and human in the fullest sense. We all need to honor and hold special the many cultural celebrations of this world. Kwanzaa is one of those special celebrations. All of us start 2008 with high expectations of an unforgettable year of special moments with our loving family and friends. Here’s to every aspect of your magnificent life coming true in 2008! Until next time…I remain, your humble East Bay Real Estate lifestyle detective.

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