Loan Rates quoted this week: Long-term rates are down this week by about an eighth, with a 30 year fixed at 5.75 and short-term rates are up by about a ½ with a 7/1 adjustable rate mortgage rate at 5.75%.

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

Market Update
Summer doldrums! There are still many buyers looking, but not as many properties to choose from. At this point, many sellers are waiting until after Labor Day to put their home on the market. It seems in addition to summer slowing down the market, buyers are being more selective. At best, the market is spotty, with some properties languishing and others being snapped up quickly at well over the asking.

Sellers Question of the week…

What is the standard commission rate and how negotiable is it?

In the Bay Area, the “standard” commission rate is 6%. However, this is definitely very negotiable, depending on the amount of work that will be required of your agent. As a rule, I work for 5%, because I know what I’m doing and most properties don’t require any “special” marketing. However, every once in a while, one of my listings will require extra attention, at which point I often increase my rate to 5.5% or even 6%. Bottom line, everything in real estate is negotiable. If you want help, call me.

Buyer’s Question of the week…

What is a TIC? What are the unique concerns associated with buying a TIC?

TIC stands for tenants in common. This is a form of ownership of real estate. It is most similar to buying a condo, in that you own part, but not all, of a multi-unit building. The main difference is with a TIC, all the owners of units in the building are on one loan. This is why TIC ownership is risky, because if your neighbor doesn’t pay their portion of the mortgage, the mortgage may not get paid and all owners are at risk financially. One way to limit this liability is to invest in a TIC agreement. These agreements, in addition to addressing most issues in common ownership situations, address how to handle an owner who cannot pay their portion of the mortgage.

The advantage to TIC ownership is the ability to find an affordable unit to purchase in our hot San Francisco market. Additionally, often owners of TIC units can convert their building into condos, which instantly provides the owners with equity. However, the rules governing conversion of TIC units into condos are changing frequently which impacts the feasibility of condo conversion. Some rules make condo conversion impossible. For the most current rules and regulations, please contact me directly.

In closing…

Please, email me your questions at Michelle@FordRealEstate.com.

Or post a comment to this blog. I will update this blog weekly, 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!

Beginning within, “Realtor Michelle” Stephens

Tip of the week

Spilled red wine? Try using salt to soak it up. Just sprinkle enough salt on the spill to cover it and leave stand until dry. For more information, email me.