Loan Rates quoted this week:

30 year fixed is 5.75%; 7/1 adjustable rate is 5.25%

These rates are presented to me by Guarantee Mortgage at my weekly company meetings

Market Update

The market is changing. That’s all any of us know for certain. The rest is speculation.

The market seems fickle right now. Some places are getting mad offers. Others are getting none. Some are getting a couple, but the ones they do get really count. Seems like everything is still going over the asking. Does it have to? Well, that’s up to the buyers. If the feel they can win the offer by not bidding crazily, then no, properties don’t have to go dramatically over the asking.

This will eventually lead to a change in the asking price. I am already starting to see that.

As more and more agents see offer dates come and go, pricing will be adjusted to compensate for the lack of dramatic overbids. We’re being instructed to list only as low as the seller is will to accept an offer. Used to be we would under list the property to allow enough room for the dramatic overbids. I believe those times are ending. Too many offer dates have come and gone with no offers.

Sellers Question of the week

How do I estimate a list price for my home?

This is your realtor’s job. To verify their recommendation, you look at what we call “comps”. This is short for “comparables”, the recent sales in your neighborhood that are most similar to your property. The fun of this process in San Francisco is that we have a dynamic market, which is in constant flux. Additionally, no property is just like the next, making the process more like comparing apples to pineapples, than to apples. Ah, but that’s what keeps it interesting for me!

Buyer’s Question of the week

What price home can I afford to buy?

This depends on how much your gross earnings are and how much your debt is.

This question is most accurately answered by a mortgage broker, for this is the same calculation lenders use to qualify you. The basic concept is the lender does not think you should spend more than about 1/3 of your gross income (pre-tax income) on your mortgage. Email me for the spreadsheet to calculate this. Excellent question. One of the most common I receive.

In closing…

Please, email me your questions at Michelle@FordRealEstate.com. Or post a comment to this blog. I will update this blog every Thursday, unless I don’t. Also, I’m always looking for referrals, so if you’ve done business, any kind of business, with someone you like, please let me know who they are, even if that’s you! Also, check out my other blog at www.potrerohill411.blogspot.com.

Come meet me at my booth at the Pride Festival, this month on either Saturday or Sunday, June 25th & 25th. Mention my blog for a special treat.

Beginning within,
“Realtor Michelle” Stephens

Tip of the week

Need to get that crayon mark off the wall? Try brushing with Colgate toothpaste.