Many sellers are unsure as to which is the better way to go and my advice is always to consult with your financial advisor and/or a real estate attorney. The observations here should also help.

The questions people first ask when considering giving up their home are (a) what future liability could they have for the debt and (b) what will be the effect on their credit rating. In fact there are other factors that should also be considered.

A Foreclosure can effect your ability to get a job (or sometimes to keep your job). It will show up on a background check by a potential employer and is a serious challenge if you need security clearance. With a Foreclosure on your record, you are unlikely to be able to finance another home purchase for five years, while those home owners who have sold with a Short Sale may be able to finance a home in  two years or even less in some circumstances.

But what about the effect on your credit? It is interesting that the major hit on your credit score is likely to come from late mortgage payments rather than anything else. If you can keep making payments while going through the Short Sale process, the effect on your credit score will be minimized.

You will inevitable have late payments with a Foreclosure of course. Without late payments, the Foreclosure process can’t even get started.

Now as to the question of future liability for remaining debt after Foreclosure or a Short Sale, this is a fairly complex issue and much depends on the type of financing you have.

As a result of recent legislation, when you sell a home via the Short Sale process, all your liabilities should be wiped out. That is regardless of the existence of a second lien on the home. When the first lien holder forecloses on your home, they also lose the right to chase you for any outstanding debt, but if there is a second lien holder, they will almost certainly pursue you and they have a legal right to do so, if they are not a party to the Foreclosure.

The biggest issue may be the uncertainty associated with a Short Sale. You just don’t know if your lender will agree to it. But the good news is that many banks really are getting their act together at last. And the government is also helping in this regard. More Short Sales are being approved these days and we are increasingly seeing pre-approved Short Sales that really do take away a lot of the stress.

If, as a seller, you want to have the best chance of completing a Short Sale, you absolutely have to have a listing agent who has experience in these transactions. More Short Sales fail to close because of the agent’s lack of experience than for any other reason.

Buying a Short Sale

Now let’s look at Short Sales from the buyer’s perspective. How does this differ from a regular home purchase?

The first thing you have to remember that the home owner is still the seller, not the bank, although the bank (sometimes more than one bank) has to approve the sale. But the homeowner should have little concern for the sale price. They will just get to walk away from the home free and clear when escrow closes. Their debts have been wiped out.

The price will be what the bank will accept after an appraisal has been done by them. So at least in theory, you should pay no more than true market value. This should take into consideration that it is an “as is” sale. No repairs will be carried out regardless of condition.

The transaction will take some time. From agreement to the sale by the seller to approval from the bank will typically be between one and four months, sometimes longer. But there are some good buys to be had in Short Sales. A lot of buyers don’t have the patience so you have less competition and that is a big consideration in today’s market where we are so short of inventory.

 If you are thinking about buying or selling anywhere in the San Ramon Valley or Lamorinda and you need advice on any aspect of the process, give me a call and I’ll arrange to meet with you and evaluate your situation.

At last! A really first-class Indian Restaurant in San Ramon. I have been waiting over 20 years for this.

It seems that Indian Restaurants come and go with alarming regularity in San Ramon. Some seem to only last a matter of weeks, while others close down after a year or so but it all comes down to quality and consistency at the end of the day.

As my regular readers know, I am a major enthusiast when it comes to Indian Food (what else would you expect from a Brit? – our national dish is now Chicken Tikka Masala!). So when I learned that another new Indian restaurant had opened in San Ramon, I was eager to check it out. It didn’t take me very long!

Within 5 days of it opening, Sylvia and I went there for dinner with our daughter Michelle and two friends, all of us being Indian food fans. The first thing we observed was the high standard of décor – very stylish and quite understated. The location is good too, being virtually next door to Max’s Café on Camino Ramon where there is ample parking. Available.

We anticipated that they would not have a wine license yet, so we took our own wine with us. What we hadn’t anticipated was that they would have no wine glasses but this did not phase them at all. They immediately sent somebody off to nearby Marshall’s to get some. Now that is what I call service.

The menu has many familiar selections on it but also quite a few less familiar ones. For appetizers, we shared a variety of dishes – Coriander Mari (Calamari), Chicken Pakoras and Vegetable Samosas. All were really good but the Calamari was outstanding. Very fresh and tender in a light batter. Some of the best Calamari I have tasted.

We all had curries of one kind or another as a main course. I chose the Chicken Coconut Curry, a very mild dish but with outstanding depth of flavor (I prefer subtle curries). The others went for Chicken Vindaloo, Chicken Tikka Masala and Lamb Tikka Masala. Everybody was impressed.

If your taste for Indian food runs to the super hot, blow your head off kind, this may not be the best place for you, but if, like me, you prefer the flavorful dishes that are spicy without having an excess of heat, I can promise you will not be disappointed.

I mentioned that the menu had some less familiar dishes on it. These include Fish Pakoras, Seafood Biryani, Lamb Shank Masala and Fish Tikka Masala among others. They also have a wide selection of vegetarian dishes.

Prices were fairly typical of most Indian restaurants in the area and service was excellent. They are very friendly and helpful with an obvious desire to make sure you enjoy your meal.

Really, I can’t speak highly enough of Divan. It really is the best Indian restaurant food I have tasted in California and I have visited a lot of Indian Restaurants. They have another, well-established, location in Seattle plus another newer one in Fremont. I’m sure that with this kind of service and food, they are here to stay in San Ramon.  That isn’t just my opinion either. Check out the reviews on Yelp. They are getting a lot of fans.

In most cases, right now is the best time.

If you are considering selling your home soon you probably have good reason. So the benefits of selling now almost always outweigh the extra cost, inconvenience and stress of waiting. It’s not worth putting your whole life on hold to avoid losing an amount of money which can be a lot less than you fear it will be.

There’s a general perception that the annual real estate calendar has consistent low points, such as the week before Christmas, school holidays or throughout winter. The truth is that while there are a few quiet spots to avoid, they can change from year to year and in different markets. The quality of the marketing your home receives normally has a far greater impact on the final sale price than any fluctuations in the market.

You will get the best price for your home by showing it to the maximum possible number

of quality potential buyers, and following up strongly with them. So if your real estate agent just ‘does the usual stuff’ to market your home, the sale price will suffer no matter what time of year you sell.

But when you have an agent who really knows how to market your home to the hilt, using the latest technology, you will normally overcome any seasonal fluctuations and get a better price as well.

With a well planned marketing campaign, you will have the right mix of advertising to get your home in front of the greatest number of quality potential buyers. When I market a home for sale, I use a number of different methods to increase the demand for your property, including a high quality full color buyer brochure.

Let me know if you haven’t seen one of my buyer brochures and I’ll send you a copy.

Think about your reasons for selling your home – they are clearly important. What impact would it have on your lifestyle if you put everything on hold for 2, 3, 6 months or even longer while you wait for the ‘perfect time’ to sell your home? How much cost, inconvenience and stress would this create for you?

Weigh that up against the amount of money you expect to lose by selling now. And remember that if your home is marketed well, you may not lose anything. You may be very pleasantly surprised.

I hope that helps and please feel free to contact me if you have any questions related to getting your home sold.

I’m sure that many will be glad to see the end of 2011. Last year was a year of a very slowly recovering economy with short sales and foreclosures dominating the real estate landscape. Did things get better or worse during the course of the year? Read on and find out.

Lets take a look at the cost of an average detached single family homes in some of our major areas at the start of 2011 and see what that really means as well as monitoring the change as we leave the year behind.

The Danville Market

100 such homes sold in Danville in the first quarter of 2011 with prices ranging from $467,000 to $1.95m, an average price of $877,423.

An example of what you could expect to buy for $870,000 is the home illustrated here.

This 4 bedroom, 2.5 bath single level home in Leander Hills with 2322 sq.ft. of living space, was very nicely updated and set on a lot approaching a half acre with manicured grounds.

Flash forward to the last quarter. There we see that 135 homes were sold. Prices ranged from $382,500 to $1.74m, an average of $812,875. So the average price appears to have fallen but what would that buy?

Try a 5 bed, 3 bath home in Sycamore.

With 2751 sq.ft. and a lot of just over a third acre, this home was also very nicely updated. Overall though, probably not quite as appealing as the one previously mentioned which might suggest little real change in prices although volume of sales was up by 35%.

The San Ramon Market

Like Danville, real estate activity in San Ramon is closely related to the quality of schools although historically, prices in San Ramon have always been rather less than in Danville

Here, In the first quarter of 2011, we saw 133 homes sold with prices from $392,500 to  $2.8m. The average was $767,768 and for around that figure you could have got a completely updated home in Bollinger Hills with

5 beds, 3 baths and 2776 sq.ft. of living space on a 0.25 acre lot.

Moving forward to the last quarter again, we saw  only 92 sales taking place. Prices ranged from $265,000 to $1.66m giving an average price of $683,314. For just a little more ($690,000), you could have bought a very appealing 4 bed, 2.5 bath home in the gated community of Fleur Du Mont.

Conclusions

In terms of volume, the San Ramon market appears to have fallen behind. We have to remember that the availability of homes to buy has an effect on how many homes can be sold though.

145 homes were listed for sale in the fourth quarter of 2011, compared with 270 in the first quarter. That is a significant reduction.

Danville shows a similar picture. 244 homes were listed in the first quarter, but only 124 in the fourth quarter.

Overall then, there appears to be a lot of confidence in the Danville market, in particular, although with a greater choice of homes, and probably some more realistic pricing, the San Ramon market would probably have had more activity.

Prices in both of these markets seem remarkably stable and this is likely to continue to be the case for the next few years until we see the end of the effects of short sales and foreclosures in our area.

Best Italian Restaurant

There are probably more Italian restaurants in the Bay Area than anything else yet really good ones are few and far between. After much consideration, my award goes to a relatively new restaurant, Mangia Mi in Danville. This little hideaway serves food with fresh ingredients at a reasonable price. They also have an outdoor patio.

Best French Restaurant

Not much competition here. French cuisine is considered to be the best in the world but the representation in the east bay is poor. I am pleased to say that we have one outstanding example though. The prices may be on the high side, but Chevalier in Lafayette serves outstanding French food and is highly recommended for that special meal.

Best Indian Restaurant

Indian restaurants come and go with alarming regularity and most are average at best. Too bad, since Indian cuisine is one of my favorites. The best Indian restaurant I know is undoubtedly Swad in Lafayette where you can get great food with outstanding flavors.

Best Chinese Restaurant

Again, there is a vast choice in this category. Overall though, I think Yan’s China Bistro is the winnner. With locations in Walnut Creek and Alamo, the food (especially the specials) is excellent and the surrounding are very pleasant.

Best Seafood Restaurant

I do like seafood and this is another category where there is little choice. The Walnut Creek Yacht Club has its followers but I still rate Scotts Restaurant in Walnut Creek higher. I find myself returning there frequently for their reliable and sometimes imaginative dishes. The décor is rather dated but it is still a pleasant (and very popular) restaurant.

Best California Cuisine

There is plenty of choice here and many contenders have a good reputation and a strong following. My choice, following their relatively recent change of ownership (and menu) is Patrick David in Danville. An intimate restaurant serving imaginative food in a great location.

Best Outdoor Dining

There are many restaurants in our area with patios. Not all have food to match the al fresco experience though.  Some that do are Barone’s in Pleasanton and Chevalier, Metro and Postino, all in Lafayette. After much deliberation though, I think Blackhawk Grill has the edge over them all. It would be hard to imagine a more perfect location and the quality of food has always impressed me.

Best Overall

And the winner is …. Chevalier in Lafayette. As noted earlier, this is one of the very few remaining French restaurants in our area and the food is authentic and without compromise. The main restaurant is like a typical small French bistro and they also have a covered dining patio, set amidst attractive gardens. Chevalier has exactly what is takes to make a good restaurant great.

I am assuming that you have found the home you want to buy and you have an experienced agent who is representing your interests in the transaction.

In the traditional or “Regular” sale, you often have an owner-occupier who is emotionally attached to the home. An offer that is close to what similar homes have sold for recently has a good chance of being accepted and then you typically have 10-14 days to complete your inspections,  review seller disclosures, make final arrangements for financing and remove all contingencies prior to closing the transaction, typically 30-40 days after your offer was accepted.

Your agent should arrange for all inspections that are appropriate such as home, roof and chimney inspections. The seller will often pay for a termite inspection and correct any major issues that are noted. Anything of concern that arises from other inspections will most likely be a matter of negotiation between you and the seller.

Seller disclosures should be carefully reviewed and these will run to many pages. A seller is required to disclose anything of a material nature that could affect the value of a home including defects, past repairs, traffic noise and many other things. If a seller omits anything they could be liable for damages. So the seller needs representation and guidance from a very competent agent just as the buyer does.

Final financing arrangements refer to the qualification of the property for financing.  You should already been personally approved but the property has to appraise and there may be other conditions to be met before funding.

Having removed all contingencies, you will then sign the final documents, usually at the Title Company, then once the loan is funded, the transaction is recorded and the home is yours.

This is when the funds are distributed, including agent commissions. It is worth noting that virtually all agents in California are paid on a commission only basis. They pay all of their own expenses and share the commission paid by the seller with their broker.

Distress Property Sales

That is how the “Regular” sales process works. Short Sales and Foreclosures are a little different.

The contract on a short sale is still with the owner but it has to be approved by their lender. So once the seller is in agreement, the offer is forwarded to the lender together with a “hardship letter” and other supporting documentation. Then the wait begins.

It typically takes around a month to get any response from a lender and that will either be a rejection or an agreement in principal. If it is the latter, they will arrange for an appraisal and then after another couple of weeks or so, they will hopefully respond with a price they are willing to accept along with any other conditions for completion. The buyer can then have any desired inspections (all at buyer expense). Note that short sales are always sold “As Is” so there is no negotiation of repairs.

With bank owned foreclosures (REOs), the process is a little simpler. The bank should respond to an offer within 1 to 7 days and there may then be some negotiation before reaching agreement. There is then a 7 to14 days period for inspections (again, all at buyer expense) and unless the buyer then cancels the transaction, he is committed to completing the purchase. Bank owned sales are also always “As Is” and unlike short sales, there are no seller disclosures.

Are short sales and foreclosures worth the effort? Sometimes. Each case is different. I have seen some really good deals go through with both, as well as some not so good. As with many situations, the mantra should be “Let The Buyer Beware”. I can’t stress enough  the need to have a good agent to represent you in any kind of a distressed property transaction.

New to Danville but no  newcomer to the local restaurant scene, Incontro established itself in San Ramon as one of the best Italian restaurants in the area. They recently took the brave step (in this economy!) of moving to Danville. It was time to see if it had paid off.

Sylvia and I visited early on a mild Friday evening and having parked in their private lot at the back of the building, walked through the bustling outdoor patio to the front of the attractive building that Incontro has made its own. This was previously a quite run-down place housing a Mexican restaurant, but the owners of Incontro have completely gutted it and transformed it inside and out, into a gorgeous restaurant, the likes of which Danville has never seen.

As soon as you enter, you know that this is a success. The attractive bar at the front was packed and despite having plenty of tables, the restaurant area was almost full. This was shortly after 6pm on a Friday. Don’t even think of going without a reservation.

Incontro is made up of a number of separate rooms, giving it the feel of a house. The décor is warm and inviting with extensive use of wood paneling, attractive art works and other décor items and the lighting has been designed to perfection. It looks like no expense has been spared and yet it is a restaurant that immediately makes you feel at home and relaxed.

Thankfully, the menu appears to have changed little with the move. There are relatively few choices but what they do, they do well. We skipped the appetizers and Sylvia opted for the Angus New York steak with a tarragon and wine sauce, while I had the pan-seared duck breast. Both typical dishes that you might find on an Italian restaurant menu but rarely cooked and presented as well as at Incontro.

We followed our main course with a shared Pannacotta and you can see this traditional Italian dessert on their web site at incontrodanville.com. This is a dish I rarely see on menus and Incontro prepared it to perfection.

We accompanied our meal with a pleasant bottle of Carneros Chardonnay that we brought with us. I should mention that they have a good selection of wines by the glass and the bottle but they are predominately (should I say, authentically) Italian and our palates lean towards California varietals.

So in summary, this is a great move for Incontro and also for Danville. Their risk has paid off and they are now established as one of Danville’s premier fine dining restaurants.

Many of us are regular viewers of programs like Weekend Warriors and Landscaper’s Challenge on HGTV and they make it seem so easy. But those of us that have followed their examples know it generally isn’t as easy or as affordable as is often suggested. Sure, the materials for some of these projects may not cost a fortune but that is often all that is considered. The TV producers frequently get contractors to donate their time in exchange for the valuable publicity they receive, so the true cost of the project is never appreciated. Still, it usually makes a good story.

The problem with many home improvement projects is that they simply cost too much to accomplish when compared with the value they add to your home.

The book pictured here, “450 Ideas To Help Your Home Sell Faster“, contains a wealth of information and suggestions for no-cost or low cost things you can do to improve the value of your home. I have acquired distribution rights to this excellent book and my primary intention was to give a copy to all of those sellers I work with who have the time to carry out some cost-effective improvements before placing their home on the market. Having digested the contents, I quickly realized that even if you don’t plan to sell your home for a while, this is an excellent resource for ideas to make it more pleasant to live in. This is no small brochure. There are 52 pages of content covering every room in the house as well as the outside and even the garage. If you would like a copy, send me an email to bernard@bernardgibbons.com. I will send one to you by return email within a few hours. There is no cost or obligation to you and I hope you find it of interest.

If you are thinking about buying or selling anywhere in the San Ramon Valley or Lamorinda and you need advice on any aspect of the process, give me a call and I’ll arrange to meet with you and evaluate your situation. There is never any obligation and I am always happy to hear from you.

START YOUR SEARCH FOR A SAN RAMON HOME HERE

Bernard Gibbons – “The English Agent” – (925) 997-1585
bernard@bernardgibbons.com

www.JustSanRamonHomes.com is the complete real estate resource for home buyers and sellers in San Ramon

Bernard Gibbons, CA DRE License #01331583

J Rockcliff Realtors . 15 Railroad Avenue, Danville, CA 94526

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As a result, we found ourselves seated at a table by the window early on a recent Friday evening, where amazingly, we had managed to snag a parking space right outside. Parking is never easy in Walnut Creek and although they have a small lot, it was already overfull when we arrived.

As soon as you enter, you know that this is a popular place. The small bar area at the front was crammed with the lively early evening crowd and the restaurant area was just starting to fill up as we sat down. Reservations here are essential.

The décor is undeniably nautical. Lots of varnished wood, ships flags and even the front half of a mounted shark coming through the wall above the bar. It all creates a great ambiance.

But we came for the food as much as the surroundings and the menu is extensive, so having settled in with a bottle of very reasonably priced Duckhorn Chardonnay, then came the decision making time.

For an appetizer, we shared a portion of calamari, always a good test of seafood restaurant. We were not disappointed. Fried in a light batter and super-fresh with pieces of onion mixed in. And more than enough for two to share.

The main course offered an interesting option which is to effectively build your own dish. There is a choice of nine fish, nine sauces and 5 sides  and the price of each fish (which can be plain grilled, blackened or sautéed) includes your choice of two sauces and a side dish. I chose to have grilled sea bass with a ginger, soy, sesame sauce and spicy calypso fruit salsa with a side of 3-cheese potato gratin. This turned out to be a great combination.

Sylvia ordered Petrale sole from the specials menu and this was also cooked to perfection. Sole is one of our favorites and the Yacht Club’s version completely lived up to expectations.

Both of our portions were of such generous size that we had to pass on dessert, despite being tempted by  their vanilla bean crème brulee. And all of their desserts other than ice cream are made in house.

So as you can see, we had a very satisfying visit to the Walnut Creek Yacht Club. You can read much more about them on their web site at www.wcyc.com. And there really is more to read about. I didn’t even get around to talking about their raw bar or their outside patio.

If money is not an issue, there is no problem. Just buy your next home first and then list your existing home for sale. But for most of us, money is an issue so that approach won’t work very often.

First Carry Out A Feasibility Study

Having decided you want to move or you need to move, the first step should be to see if your expectations are realistic. There are two key questions you have to ask yourself. The first one is a two-step question: “How much can I realistically expect to sell my present home for and how much cash will that leave me with after settling the outstanding loan and costs associated with the sale?”

The second question to ask is “Based on the cash I will have available after selling my present home and the amount of monthly mortgage payments I can afford and qualify for, can I realistically expect to buy a home that meets my expectations?”

You will have noted that “realistically” is a key word in each question. Realism is crucial to holding down your stress level.

Answering The Questions

The answer to the first question can be found by seeing what homes similar to yours are selling at now. To do this, you need to use a local Realtor who will have access to such information. Call me or another agent you know and trust, and you should have the answer to your first question within a few days.

A Word Of Warning

Don’t be tempted to shortcut the process by using a web site such as Zillow to get an automated valuation of your home. These are notoriously inaccurate.

The Home Search

Now you know how much you can spend it is time to see what is available. This time the Internet does come to your rescue. There are various ways to use it of course. You can go on to some web sites where virtually every home listed on any Multiple Listing Service in the country can be found. Or alternatively, you can use a web site like mine where you just search homes for sale in the local geographic area where you want to buy. You will still see all of the homes that are listed for sale in the area complete with all the data that is available but the search procedure will be less cumbersome.

Putting It All Together

By now you know if your plans make sense. If not, you can either adjust your expectations or just decide to stay where you are a while.  But assuming that you want to make the move, your next step is to get your home ready for sale, another area where an experienced Realtor, such as me, will provide you with lots of help and advice. And then get it on the market.

What If It Sells Too Fast?

While your home is on the market, you should be aggressively searching for the home you want to buy. Then as soon as you agree a sale, you already know which home you want to write an offer for. This is how most people tie the two transactions together. A useful tip is to list your home with the proviso “seller may need a 2-4 week rent-back”. This allows for the fact that simultaneous closings are not always easy to arrange so the move is much better controlled.

Another approach you may want to think about is listing your home “contingent on seller finding a replacement home”. Again, this takes away the possibility of you selling your home and having nowhere to go. 

Buying Before You Sell

Provided that your home is listed for sale at a realistic price, there is nothing stopping you writing an offer on another home, Contingent on you selling your present home. Contingent offers are not the most attractive offers to a home seller but provided that the buyer’s home is priced realistically, a seller will sometimes consider it.

Other Options

If you really want the most stress free sale and purchase, I recommend that you consider selling first, then renting on an interim basis while you find your next home. Yes, it means moving twice so there are some added expenses but a number of clients of mine have done this and they say it was definitely worth it, not just for relieving the stress but it also gave them time to find the prefect home.

If you are thinking about buying or selling anywhere in the San Ramon Valley or Lamorinda and you need advice on any aspect of the process, give me a call and I’ll arrange to meet with you and evaluate your situation.

START YOUR SEARCH FOR A SAN RAMON HOME HERE

Bernard Gibbons – “The English Agent” – (925) 997-1585
bernard@bernardgibbons.com

www.JustSanRamonHomes.com is the complete real estate resource for home buyers and sellers in San Ramon

Bernard Gibbons, CA DRE License #01331583

J Rockcliff Realtors . 15 Railroad Avenue, Danville, CA 94526

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