With another cut in interest rates by the Federal Reserve, rates have fallen to numbers that haven’t been seen since 1971. Click here to read about the decline in rates.

Here is a snapshot of rates as of today, 12/30/08.

These low rates are spurring homeowners to refinance. Is it time for you to refinance too? Here are a few guidelines:

If you have an adjustable rate loan, make the move to a fixed rate loan.

If you can lower your rate by one percentage point or more.

If you are planning to stay in your home for awhile.

If you have significant equity in your home. If not, you’ll be forced to purchase private mortage insurance would could erase any gains from a lower rate.

Click here to read about the REFI Madness.

Of course, these rates are terrific for those considering a purchase right now. The decline in prices, ample inventory, and low rates is a winning combination for buyers as well as investors.

Thinking of buying in the Pleasanton or Tri Valley market? It’s a great time to move your family to a larger home or to buy an investment property for someone in your family.  Give us a call. We’ll help you develop a strategy for your personal situation and goals.

The Valley Marketing Association(VMA) consists of about 120 local Realtors, lenders and affiliates. We meet on a weekly basis to discuss what is happening in the market while networking with each other to promote our listings and develop business relationships. As President of the VMA for the past 2 years, I felt it was particularly important for our organization to give back to the communities we serve.

In 2007, we raised $25,000 at our annual Holiday Party for local Tri-Valley Community Organizations such as the Tri-Valley Haven, Open Heart Kitchen, Hope Hospice and the Valley Humane Society. It was the best party of the year but most important, we raised a lot of money that helped many needy families and individuals throughout 2008.

As the planning process began for the 2008 Holiday Party, we anticipated few would be in the frame of mind to donate given the challenging economic times. Our inclination was to forego the fundraising for this year.

Shortly thereafter I ran into Linda McKeever at Open Heart Kitchen. She said that funding sources have decreased while families needing meals have increased. Programs may be cut while staff is working without salary to keep Open Heart Kitchen open.

I realized our fundraising effort would be more critical than ever to assist Open Heart Kitchen and other very worthy Tri-Valley causes. So in unison and complete agreement, the VMA Board Of Directors announced a fundraising goal of $40,000.

Thanks to the efforts of many individuals and matching funds provided by the Tri-Valley Community Foundation we exceeded our goal with almost $42,000. These monies were distributed among the following organizations:Axis Community Health Center, Hope Hospice, Open Heart Kitchen, Tri Valley Haven, Valley Humane Society, and the Emergency Room of Valley-Care Health Systems.

With mortgage rates hitting a four year low this week, it is a great window of opportunity for investors to make a purchase in the Pleasanton area. Low interest rates, an abundance of inventory, and a strong rental market is a combination well suited to investor buyers.

Check out Brentwood, for example. There are currently 70 homes on the market priced at or below $250,000.

The property at 938 Oxford Lane is 1804 square feet with 3 bedrooms, 2 and one half baths built in 2005. It’s priced at $234,700.

The property at 71 Ibis Street is currently priced at $199,000. Built in 2005, it has almost 1700 square feet of living space with 3 bedrooms and 2 and one half baths.

The list goes on and on.

If you’d like to be sent a list of current properties in Brentwood or another community, just let us know.  Or if you’d like to go on a scouting trip and check out some of these properties and run the numbers on them, we can help you with that as well.

An article recently featured in the San Francisco Chronicle highlighted what has become common place in real estate markets all over the country, as well as our local Pleasanton real estate market: SHORT SALES.

Click here to read the entire article.

Here are some things to know about short sales:

Approximately one in five homeowners is “underwater” - meaning they owe more on their mortgage than their home is currently worth.  For borrowers in default or at risk of defaulting, selling their house for less than is owed, often termed a short sale, may be the only option.  However, short sale offers must be accepted by the bank that owns the mortgage, and can take as long as a few months before an offer is accepted.

Some home buyers are submitting unrealistically low offers on bank-owned properties, hoping to purchase a home at a bargain price. Low offers often use valuable time and resources that could be dedicated toward more favorable offers more likely to garner bank approval. It is vital that home buyers work closely with their REALTOR to submit appropriate offers, especially when dealing with a short sale property.

• Theoretically, short sales should be a win-win for the bank and the homeowner. Although the bank does not receive the full payment on the mortgage, it also does not incur the costs of foreclosure and/or eviction, if necessary. Many homeowners also prefer short sales because it does less damage to their credit score than a foreclosure. However, many real estate experts say that the majority of banks are reluctant to approve short sales, and often let properties go into foreclosure, even when there are reasonable offers on the property. In addition to considering the price, most lenders also take into consideration whether the homeowner can demonstrate financial hardship. If the homeowner is capable of making payments, many lenders will try to work out a loan modification, rather than a short sale.

Short sales often are more time intensive than traditional transactions and often require additional paperwork. Due to the large number of short sale offers, many take as long as a few months to receive approval. If information or required forms are missing or incomplete, the bank may set the offer aside, which could delay the process and cause the property to go into foreclosure. To expedite the process, it is important that sellers work closely with their REALTOR to provide all of the necessary paperwork.

• Thinking of selling? Do you think your home will be a short sale? Contact us. We will meet with you to discuss your personal situation and develop a strategy for you to meet your goals.

Selling a French Chateau in Pleasanton

Offered at $6,995,000

I know many of you will say, ‘I don’t know anyone who can afford almost $7,000,000 for a house’ . To tell you the truth we don’t have such a client. But……within your network of people, here in the US or abroad, there might be somebody who knows somebody who is looking for a very private and unique property surrounded by nature only minutes away from I680 and within 45 minutes to San Francisco or Silicon Valley.

The owners of Chateau D’Ellen also own the property next door; it is a 3 bedroom, 3 bath single story home on about 3 acres of flat space with spectacular views of Mount Diablo and the valley. This property is offered at $1,650,000; this property can only be sold in conjunction with the Chateau or after that property has been sold. The two homes together would be perfect for a family compound, a corporate retreat , an athlete or somebody from the movie or music industry. Maybe you know somebody who knows somebody who made a fortune in one of the Silicon Valley companies. As a matter of fact that is how the seller made his fortune and had the house custom built about 12 years ago.

To make this property even more interesting for a potential buyer, all the furniture and art are included in the sale.

Click here to take a virtual tour of this property.

Call us with any questions you might have or if you want to sit down to discuss your ideas, or if you would like to schedule a personal showing.

If you keep in mind the concept of  ‘six degrees of separation’ the buyer for this property might be closer than you think.