Gift Money Can Help with your Down Payment

If lately you’ve been thinking about buying your first home, maybe it’s time. Interest rates are crazy low, and home prices have dropped even from last year.  But do you have enough for the down payment? Even socking away $1000 a month, it would take several years to have a sufficient down payment, especially in the Oakland/East Bay area where home values are still higher than in most other parts of the country.  Lenders today require 20% down.  For a $400,000 home, that’s $80,000 down.  (An FHA loan only requires 3.5% down but includes heavy fees and PMI costs.)

One source that more and more first time buyers are turning to is their parents or relatives.  Five years ago 14% of home buyers received “gift money” from relatives to help with their down payment.  This year, more than 20% of buyers say relatives gave them money for their down.  Several of my recent clients this year were able to buy their first home with “gift money” from relatives. 

For parents who are financially able to help, “gifting”  their children the down payment is in another way, giving them their inheritance early, when parents are still around to see the benefits of their gift. It’s also another way for parents to invest.  Parents also sense that this is a great time to buy and want to help their children benefit from the current market.

Make sure you talk with your lender first before your parents move any monies around.   There are clear guidelines that must be followed on “how” the money is given. Any missteps could void the “gift.”  There are also tax guidelines to follow.  For this year, a parent can give up to $13,000 (combined parents can give $26,000) and not be subject to the gift tax.  Gifts higher than this are counted toward the total tax-free amount allowable during one’s  lifetime.  The excess amount also requires filing a federal gift-tax form.

Talk with your parents to see if this option makes sense for both of you.  (Another option would be for both parents and child to co-purchase and down the road amend the title when it’s feasible.)  Home ownership is very affordable now.  A “gift” down payment may be the key to making it happen.

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Have Ferry, Will Travel

Crescent moon over bridge lights

Celebrating a birthday is always a good reason for friends to go out to dinner.  But when it’s a noted turning of age, it calls for a special night out…something more than just dining out at Flora’s or Pican’s.  So this year, our birthday group decided to take the Oakland/Alameda ferry to the city and walk over to Boulevard’s.

Parking down at Jack London Square was convenient, just a block from the ferry gate.  On the pier, a handful of people –couples, friends, bicyclists, families—were enjoying the early evening as they waited to sail to the Ferry Building, like us. We boarded on time, and made our way up to the top open deck where the wind met our faces.

There is something about the ocean breeze that makes you feel alive, brings color to your cheeks, and holds you in the moment. Only 15 minutes out in the Bay and we felt like tourists on an ocean voyage. We popped open some champagne and Brie and laughed and talked as San Francisco grew closer to us.  Once there, we strolled through the Ferry Building and made our way across the street to Boulevard where we enjoyed a fabulous dinner.

On the way home, the ferry was quiet, with fewer people making the return trip. We found our seats and sat contentedly watching the night sky. As we sailed towards the Bay Bridge, we were captivated by the construction lights twinkling in the sky.  And to complete our birthday night, a beautiful crescent moon hung just above the bridge.  Sometimes, it’s something as simple as the moon, a bridge, a ferry and good friends that make you realize what a beautiful part of the country we live in.

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Lake Merritt: Oakland’s Renovated Crown Jewel

      Now that all the noisy construction, detoured traffic and dust are just a memory, Lake Merritt has never looked more beautiful. The east side of the lake has been transformed from a smelly and weary eyesore to one of the most inviting places in Oakland. People come after work to jog and walk along the winding sidewalks that hug the lake. There are strollers, dog walkers, couples, friends — all enjoying the renovated “Crown Jewel.” There are benches that invite you to just sit and watch as the sun sets behind the cityscape. There’s fresh cut grass and pretty shrubs and flowers. The street lamps are adorned with the “necklace of lights.” 

If you haven’t walked the Lake in awhile, go and rediscover this landmark. Start at the newly renovated Pergola on the North end and stroll along the sidewalk. Before you know it, you’ll be on the other side of the lake at the popular Lake Chalet Restaurant where you can sit out on the docks and enjoy tacos and a beer.

Note: All the recent renovations are part of Measure DD, which also includes the ambitious and exciting 12th Street Bridge Project that has just started demolition. (This is a post from my blog: Oakland365.)

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FINALLY! We’ve got a TARGET!

Driving on the freeway past Emeryville I looked up in the sky and shrieked!  It wasn’t a bird…it wasn’t a plane.  It was the most beautiful sight  I had seen in awhile — the giant red Target sign had just been installed. 

My “Targee” had come to Oakland. FINALLY!

 Target signed an agreement to lease the former Home Expo building on 40^th Street near the Emeryville Border that’s been closed for about a year.  As large as Expo was, Target is expanding the building even more, and is expected to hire 200-250 people there.   

Yes, it’s in Oakland –Target’s new store is in the Oakland portion of the East Bay Bridge shopping Center.  The other 2/3 is in Emeryville.  The two cities share the revenue that the shopping center generates. The store is expected to open in March.  Oooh… CAN’T WAIT!

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KNBR Marty Lurie Chats up the Giants at Alameda Community Food Bank

      After an unbelievable World Series year, it was a treat to meet KNBR radio Sports Leader Marty Lurie at a Breakfast meeting for the Alameda County Community Food Bank.  He is a talker! He said that after the World Series, he talked on the radio for more than six hours to Giants fans…and said he could have gone on for another six. He shared the history of the World Series and revealed why there are two leagues (because the American League didn’t serve whiskey and beer so another league was formed!) 

He was there speaking to community leaders who came to listen, but also came to get a glimpse of what the food bank does.  I was a guest of one of the board members and took the warehouse tour after Marty’s colorful talk.  It’s a cold and massive warehouse that holds hundreds of cans and cartons from ceiling to floor.  Volunteers sort, pack and deliver over 120 million lbs. of food a year — to over 50,000 people each week–most of whom are children.  What was really cool was to learn about their “back pack” program where they pack up hundreds of backpacks to give to school children each weekend so they won’t go hungry when not in school.

     The food bank was one of the first in the country to not accept any sodas or sweets.  In fact, they are zealots about nutrition — almost half of their inventory consists of fresh produce.  I learned that 1 in 6 kids in Alameda County go hungry, and with the current economy, that number is growing.  A somber fact, but I walked away really appreciating that Oakland is the hub of help for those in need.  The food bank is located on Edgewater Drive, just off of Hegenberger. Thanks, Marty, for talking it up!

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I see iPhones Everywhere

When my Blackberry Curve finally gave out, I walked in to my AT & T store on Lakeshore Avenue to replace it.  The teckkie sales person shot me a look. “Whaaat?” Iasked him.  “Are you out of them?  Is the Curve obsolete?”

“No…”  the young man answered.  He looked at me as if I had just arrived from planet Xenex.  “But you DO know that the new iPhone is  coming out on Thursday…”  

“Oh…”.  But I love my Blackberry.  After getting over the learning curve, it’s now intuitive, second nature, my other brain.  As a realtor, it’s my “deal” phone.  Why would I give it up?

“Because sooner or later, you will. ” That’s what the whiz kid said matter of factly.  “You might as well take the leap now and get it over with.”

So I bought a cheap $30 “Go-Phone” and waited a week.  But Thursday came and went.  Lakeshore’s shipment was delayed until next Tuesday, today.  But when I drove past the AT&T store at 7:30 this morning, the line was already snaking down Lakeshore past Ike’s Shoe Repair store.  Ugh…!  So the iPhone has arrived.  Despite supply problems, Apple has already sold 1.7 million since launching it last Thursday.  Talk has it that walk-in customers may have to wait weeks before getting one, or they could sign up on a priority list, or try to order it on-line.  Right.  Sure…

So I drove back home, called a client on my Go-Phone and told her that I would need to start up my computer, check my e-mail and then respond to her message .  Technology has really changed how we sell homes, keep in touch with clients,  search for new properties, even advertise our listings.  And now, with my Blackberry gone, and the iPhone weeks away…there’s no turning back.

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As “Not Seen” on HGTV

For all the property virgins and homeowners who watch HGTV programs, I tell them they can’t learn all that’s involved in getting a house ready to sell by watching “Sell that House.”  At least not here in the Oakland area.  Here, the art and expectation of “show” are raised to a higher level.  

Start with termite repairs — It doesn’t seem that the homes back East on HGTV have any termites, or dry rot, or damaged window sills.  Here, sellers have to provide a termite inspection, and if they want to make their house more “sellable”, I suggest they make all the repairs before putting their home on the market.  Depending on the amount of work, this could take up to a month of hammering, nailing, ripping and repairing. (suggestion: sellers, always do this work with permits. Buyers will be wary if you don’t.) 

Painting — HGTV usually includes a segment about painting your home to freshen up the look.  There, friends and neighbors all grab brushes and slap on paint in any and all directions.  Don’t do this.  Hire a professional.  As a realtor, I have a team of vendors who understand the purpose of their work — to sell your home.  Their prices are more reasonable (they want repeat business from me, the realtor) and their time is well-managed. (They know they have to meet the Open House deadline.) 

Before-Pink sofa, worn tapestry, gray walls - Ugh!

 

Staged-Leather sofa, contemp chairs, glass table - perfect!

 

Staging–the ultimate distinction.  Staging crews on TV show viewers how they (along with the homeowners) can change out the kitchen cabinets, add pulls, change all the light fixtures, add fresh bedding, even build a headboard, bring in living and dining room furniture, add a whole new lawn and fresh flowers– all for $750.  Not true, and so not possible.  Here, we do not use Salvation Army upholstery.  Nor do we staple or glue gun fabric to walls.  And absolutely no plastic flowers in ceramic vases.  There are local, reputable, almost celebrity-status stagers who transform your home from ordinary to extraordinary.  (Ask me who the top 3 are!) For a substantial fee ranging from a few thousand dollars upwards to $10,000, they will bring in upscale, current-trend furnishings that include paintings, linens, towels, carpet, patio sets, tables, — everything down to lavender potpourri and fresh orchids.  Everything needed to create a look and feel of a sensuous lifestyle.  

Cleaning — Why TV shows never mention cleaning is a real estate sin, to me.  A clean house is a must.  And, something you shouldn’t do yourself  (because you will overlook the dusty corner that you’ve lived with for years.)  Hire a professional.  My stager has one on hand who cleans dust off light bulbs!  In addition to house cleaning, your windows should sparkle, in and out.  Clean windows give the feeling of newness, openess and freshness.  Sounds silly to TV viewers, but oh so important to our home selling here in Oakland. 

Curb appeal — installing fresh sod and planting shrubs look appealing on TV, but aren’t necessary to our homes here in the Oakland area.  Because our lawns are smaller, and water is holy, we lean towards drought resistant plants, and potted flowers.  Simple selling tip — anchor your front porch with large pots of colorful flowers.  C’est tout. 

So, if you really want to know what’s involved in “Selling that House”, sit down with a realtor.  A local realtor.  Not only will I share with you all that is expected, but will advise you on what NOT to do.  Don’t waste your money repairing your wicker–store it in the garage.  And, you’ll get a breakdown upfront of what your budget can afford.  Just know that it will most likely be more than $750.00.

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City Council’s Layoff Countdown

This little blog on the net was meant to be about life in Oakland, with an eye towards real estate.  But the intrepid journalist in me cannot pass up the need to speak out about the huge budget crisis facing Oakland and the pending layoff of 202 police officers.  The issue is so complex, according to the city council, that it posted a full page explanation of its plight in today’s Tribune.   Conversely, the Police Union has its opinions and also posted a nearly full page ad in the same paper.

In short, the city faces a $32 million deficit that it must address. Unlike the state, it can’t borrow, it must balance.  How did we accrue this deficit?  Well, here’s the real estate bent — in the previous market, every time a home was sold (and there was a lot of selling going on,) the city received income from the “city transfer tax” which was $15.00 per thousand split between the buyer and seller.  The transfer taxes brought in over $80 million in city revenue back in FY 05-06!  Wow!  But that was then.  This year the city projects a measley $28 million from real estate transfer taxes — a 65% drop.

Despite less revenue, the city is committed to expenses for our parks, libraries, senior centers, staffing, kids, and police and fire — expenses that grew along with the tax revenue from the real estate “Gold Rush.”

Now in a pickle, (just like many homeowners who overcommitted on their loan or who refinanced to pull out fast equity) the city council must re-adjust their spending habits.  The council has reported that it has already cut back on staffing, closed libraries 1 day a week, eliminated 100 cars in the city fleet (I didn’t know the city even had a fleet!) and squeezed 10% concessions from employee unions.  (No mention of the mayor’s salary cut, which he said he would do…) and now it must look to the police union to complete its cuts.

In the city ranked #1 in the state with the highest crime, in the city where home robberies are on the rise, in the city where violence and guns go hand in hand, in the city where murder rates are one of the highest in the nation, in the city where we just hired a top notch police chief, in the city where we live…why would we even think of compromising our children’s safety, our neighbor’s homes, or our loved one’s life?

To the members of the city council I ask — what good is it to have the public libraries opened if it’s not safe to get there and back?  What good is it to have the Kids First measure, if children aren’t safe in their neighborhoods? What good is it to have employee payroll, grants management, technology infrastructure and even elected offices — if the city can’t control a fundamental need — to keep its citizens safe and our homes and community secure.

It was poor leadership and bad decision making that got the city to this point.  Please, council members, don’t repeat it.

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One Step Forward; Two Steps Back

     As I said from the start, living in Oakland has its promises and its problems.  We love our weather, gourmet restaurants, coffee houses,  and dear neighbors.  But bring up our city council, and the Mayor’s office, and eyes will roll.  After eight years with Jerry Brown, and some measured steps of improvements, we then took two steps back with our current Mayor.  Even now as Oakland is gaining popularity among restauranteurs as a destination for foodies and chefs, (one step forward), we are now on the verge of dismissing 150 police officers. (Definitely two steps back.)

How can this possibly be good for our city?  A city with a shameful reputation of being the 3rd most dangerous city in the country?  All because the city council can’t figure out how to dig itself out of debt.  Just the “perception” that Oakland will become less protected gives the bad guys one leg up on residents.  Oh, if only Oaklanders could put their foot down on this matter just as they successfully did with the parking meters…just an observation.

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In the kitchen with Celebrity Chef Tyler Florence

Tyler Florence & Christopher Peacock talk it up

  One of the most important part of doing business in real estate is networking.  And when you belong to a prestigous group of luxury-selling agents, you get to network with the best.  And you get to do it in the most interesting places.  Last week,  I attended our organization’s annual wine and food event in San Francisco’s Design Center.  We were greeted with some of the best California wines , including Duckhorn Wine Co., Faust, Hall Wines, J Vineyards & Winery, Jaqk Cellars, Napa Cellars and Peju Province Winery, Wente and Rubicon Estates.

For my part, I mingled with guests and other members, sipping only whites and sampling appetizers from Ladies-Who-Lunch caterer.  The real thrill was sitting down and listening to Food Channel celebrity chef Tyler Florence and nationally-acclaimed kitchen designer Christopher Peacock talk about what’s new in kitchen design, and what’s new in cooking flavors! 

As they tell it, Christopher and Tyler met on the Oprah Winfrey show and hit it off as friends.  Now, smiling side by side,  they discussed their new partnerships in food and design  and took part in a spirited session on the eclectic world of home-kitchen design, Tyler’s soon-to open new restaurants, and what motivates Bay Area food faddists.

I have to admit, I thought of Buying Tyler’s new book,  “Tyler’s Ultimate” and stand in line to have him autograph it, but it seemed far more tempting to meander through Chistopher’s newly designed Chef’s kitchen and nibble on cubed roasted pork topped with quail egg which was being prepared right there in the kitchen.

What I learned in between noshing was that white cabinets are in again, marble and granite are still in vogue, and large, built-in butcher blocks are truly a chef’s want.  Stainless steel appliances still define “gourmet” and kitchens are meant for friends to gather in.

What a great evening…and what a great way to be working!

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