Fremont Real Estate Blog

Here’s a chart of cost per sqft of a entry level single family detached home in Mission San Jose. Mission San Jose’s entry level homes have dropped 25% based on the last close on 339 Ohlones St, Fremont compared to when this neighborhood peaked in 2007, early 208 for about $840/sqft. These homes are between 950-1050 sqft homes that built in the 1950s. The only attraction to buying these homes is that they homes are associated with the schools with Fremont’s Mission San Jose District (Mission San Jose High School, Hopkins Middle School, Chadbourne Elementary, Gomes Elementary, Mission San Jose Elementary, Mission Valley Elementary), which are considered the best in the state. Unfortunately, anyone buying isn’t guaranteed admittance into these desirable schools, which is why the value of these homes is dropping in addition to, general market factors. This holds truw for most of Fremont’s school with an API greater than 900. So where should you buy. Give me a call, we can talk about it.

http://www.nytimes.com/2009/03/24/business/economy/24bailout.html?bl&ex=1238040000&en=c374625ad7d276e5&ei=5087   when I read about this new program, I’m just hoping, we don’t finance speculative buys, from entities who have no real intention of honoring the debt if the asset fails.   In this program the govt lends 85%, the investor invests 7.5% and the govt. invests 7.5% and the reason to involve the investor is because through a bidding process of investors, a market price is established. I just hope we’re lending with stricter underwriting than what got us into this mess.   Best regards, Sunil  

Do you want to know why pricing is softening in Forest Park? It’s simple, the main reason people bought into this community was to get their kids into Forest Park Elementary. I was at the school this afternoon with a client. We inquired about enrolling a child into kindergarten next year. They informed us the lottery for admission into Forest Park has already taken place, and now the waitlist is at 85. Anyone who moves in would be diverted to the closest available school with space, which she told us was Oliveria Elementary (API 822), Oliveria is a good school, but no wants to pay a premium to buy in Forest Park, and have to send their kid across town to a school with an API almost 150 less. The person we spoke to said, it would take about 3 years before you’d likely get back into Forest Park. That’s a long time.   The situation isn’t much different with the other schools with APIs 900+. So where can you buy and get a school with 900+ API??? Well I’ll let you know when we talk.

Today’s James Logan announced 3 students had become National Merit Scholarship Finalists. That’s pretty impressive. The National Merit Scholarship Program, which started in 1955, attracts approximately 1.4 million entrants each year; fewer than 16,000 become finalists.   Then I wanted to know how many finalist Mission San Jose got. The answer is 64 this year .   Other stats     Fremont Christian received 1 winner .   I’ll try to get stats on student populations so we can derive some meaning from this.

Not sure I believe this article, I just passed it to a loan officer I work with their to verify. I’ll let you know.   http://www.reuters.com/article/topNews/idUSTRE52C1OE20090313   Best regards, Sunil  

This will hopefully make the process of asking for a loan modification easier.   Chase (which includes WAMU, and EMC) is opening “homeownership centers” to help customers at risk for foreclosure apply for a loan modification.   Read more about it here. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/18/MN7B16I9OV.DTL  

I didn’t participate last year, but I’m looking forward to it this year.   People around the globe will switch off their lights to demonstrate their support to reduce greenhouse gas emissions and global warming. The Eiffel Tower and other Parisian landmarks will fade to black, as Paris, the City of Light, heads a list of cities and towns that will join the world in making a visual vote for decisive action on climate change during Earth Hour 2009. For more information, visit http://www.earthhour.org . Best regards, Sunil  

If you remember studying the great depression, than you’ll remember it ended, and prosperity came to those that invested during that time. Whether you’re thinking in terms of real estate, equities, commodities or precious metals, you should be thinking how will I benefit from when this turns around.

So You’ve got a Senator suggesting that they either give up the bonus or commit hari kari , and another set ready to tax 91% of any bonus .   Heck have some dignity, leave now, before the lynching begins.   You know  the thing I find troubling is why did these banks that bought insurance from AIG (these credit default swaps on their mortgage backed securities). It’s like California’s earthquake insurance fund. I refuse to buy, even though I do believe that the big one will come one day. Reason being is two-fold, if I survive, expect there to be so much damage, that the fund will go bankrupt so why bother buying it.   The intelligent people who were buying these credit default swaps must have put some thought into this before relying on the insurance they were getting from AIG. Don’t ya think??    

I look to be cash-flow positive with 25% down and want to see a return on invested capital of about 3% minimum. So here's what I'm looking for: Cost $212,000 downpayment 25% Interest rate: 6.375% Monthly rent: $1800 Vacancy: 8% Taxes: 1.25% (no mello-roos is key) Managment Fee: $100/mth Repairs: 3% of rent Insurance: $900/mth Result: Effective Gross Rent: $19,872 NOI before financing costs: $14,527 Cash Flow Before Taxes: $3,061 Cash Flow after Taxes & Prin. Pmts: $1,579 % RETURN ON INITIAL EQUITY: 3.0% Oh and I also want the schools to be good, so I know people moving there are interested in schools, and hopefully a higher quality tenant. I expect to buying on this new criteria soon, in SoCal. If you want to know where, give me a call.

Look for ways to make your home more green.   Check out this site:  http://www.greenhomeguide.com/      

This was the 2nd time I've been to the Natural Food Expo, held annually at the Anaheim convention center. Last year, we were researching the raw vegan ice cream market, this time it was just for fun. At the show I ran into Mary Lou Henner. She was the only celebrity I spotted there. That's my sister and son in the picture.

See below: Got this from one of my wholesale lenders: Information Regarding Making Home Affordable Initiative with Fannie Mae's DU Refi Plus TM Program and the New Agency and Agency Plus Loan Limits Making Home Affordable with Fannie Mae's DU Refi Plus Program Mortgage Company. is pleased to support the "Making Home Affordable Initiative" announced last week which includes the DU Refi Plus program. Working closely with Fannie Mae, Mortgage Company is finalizing credit guidelines and system enhancements to make the DU Refi Plus program available beginning April 4, 2009. The goal of this new refinance option is to provide expanded opportunities for borrowers who have demonstrated an acceptable payment history on their Fannie Mae owned or guaranteed mortgage but have not been able to refinance due to declining property value or an inability to obtain mortgage insurance. Although formal applications may not be taken at this time, Wholesale lenders should encourage custom

President Obama Outlined there would be opportunities to refinance homes held by Fannie & Freddie as well as, encouraging lenders to modify terms of loans to bring the debt to income (DTI) ratio to 38% by lowering the interest rate and/or reducing the outstanding principle balance. If the they do, the government will participate with them to further reduce the payment to 31% DTI and a 50/50 cost share basis. To learn if you are eligible for refinancing look here . To learn if you are eligible for modifaction look here . Requirements of Home Affordable Modification program: Primary residence? Is the amount you owe on your first mortgage equal to or less than $729,750? Are you having trouble paying your mortgage? For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)? Did you get your current mortgage before January 1, 2

As you know, this is tough selling environment, and as such, your listing agent really needs to know how to know their buyer profile, what they're looking for, how to get them to notice your property, and how to excite them to buy. If you do that well you'll get offers on that property within the first 2 weeks if not sooner, however, before you accept that buyer's contract, and label the property pending, you want to have done your home work on the buyer's qualification. Given that most deals fall apart because the borrower couldn't obtain financing, your listing agent should know how to judge a borrower's financing approval. If you listing agent isn't able to do this, you could be wasting time with buyer's who have little or no chance of closing the transaction. It's not enough to simply rely on a pre -approval/ pre -qualification letter. You have to talk to their loan officer, and confirm what they've done, what's left and ask to review the