Monthly Archive for November, 2008

Special Events Task Force wants YOU!

Published
by
Dean
on November 25, 2008
in Special Events
. 0 Comments

We are widening the scope of the special events task force to all events, fundraisers etc. for MCAR. So we need people, ideas, talent and enthusiasm. We want to do things for the community as well. So come to our first meeting Dec. 17th 3:000 at MCAR with your ideas. Our first events will include,

MCAR’s got talent and the golf tournament.

We would like to do a home fix up project so if you have construction background, we need you.

Hope to see many of you on the 17th.

Your outgoing Pres.

Dean Provence

Conforming Loan Limit Adjustment

Published
by
kevin
on November 11, 2008
in Banks and Lending
. 1 Comment

Before this year, one conforming loan limit applied to the entire country. The amount was $417,000 for a single family unit (since 2006). When Congress allowed for the increase in February of this year, it was done so based on 125% of an areas median home price. The floor was set to $417,000 and the ceiling to $729,750. This temporary increase was to sunset at the end of 2008.

In July the law became permanent, but the formula was changed. It became 115% of an area’s median home price with a floor set by the government and the ceiling equal to 150% of the floor. Last Friday, the Housing Finance Agency said the floor would remain $417 for 2009 which would then put the ceiling at $625,500.

The conforming limit for Monterey County has been set to $483,000 for 2009. In contrast, the Oakland / San Francisco Market have a limit of $625,500 as does Los Angeles, Santa Cruz and Watsonville. What will this do to the already struggling market in Monterey County? For those looking to take advantage of a traditional conforming loan, a down-payment of 35% on a $750,000 purchase would be needed, significantly impacting the pool of buyers positioned to purchase.

Part of the benefit of MCAR membership is the opportunity to take advantage of market professionals who truly understand the dynamics associated with their field of expertise. This week, I was fortunate enough to be able to discuss this issue in great depth with one of our members, Linda Guy. Given the constant fluctuation of the market throughout the country, it seemed to make sense to establish a national conforming limit, high enough to meet the needs of the higher priced communities and counties in the nation, while providing a more accurate model for monitoring success annually. This in turn would eliminate the need for limits established regionally or by area, a formula that is certainly prone to dysfunction as we’ve seen illustrated above.

Buyers would need to qualify under typical lending qualifications and property would appraise locally, establishing an accurate market value.

There are rumblings in Congress that an extension of the $729,750 conforming rate is being contemplated for 2009. Whether or not this comes to fruition by years end is anyone’s guess. A legislative adjustment that would establish a singular national conforming loan limit is needed.

Your input is desired and appreciated as we pursue a dialogue with those in Congress. Please let us know your thoughts by utilizing the MCAR Blog.

Kevin

“Landlords & Tenants: Communication Is the Key”

Published
by
stevegorman
on November 10, 2008
in Landlord, Property Management and Tenant
. 2 Comments

Landlords and tenants should strive to create a mutually beneficial relationship.  Like any other business relationship, the landlord and the tenant need each other.  Why not work to make it the best association possible?

Most landlord-tenant disputes are a result of inadequate communication.  It is primarily the landlord’s responsibility to communicate clearly.  Why?  Because the landlord typically provides the document that controls the relationship: the lease or rental agreement.

A well-written, clear and concise lease is absolutely vital.  If you are not a professional property manager, you need to do more than download a generic lease off the internet.  “Standard” leases available in stationery stores are typically no better.  They often are missing key elements that are legally required in California leases, like the Megan’s Law database disclosure pertaining to sexual offenders and the lead-based paint disclosure.

If this is the first you’ve heard of those two requirements, you should consider joining a professional association, such as the California Apartment Association.  They provide excellent leases and many other forms and products to help guide you through the maze of regulations that govern landlord-tenant relationships.

When a tenant moves in, provide them with a property condition checklist to document the condition of the home, for the protection of both parties.  Also, the tenant and landlord should each take several pictures of the home before the move-in date so there is a clear record of its condition, to avoid misunderstandings when the tenant vacates.

Steve Gorman, Property Manager
Gorman Real Estate
710 Lighthouse Avenue
Pacific Grove, CA  93950
steve@gormanre.com
www.gormanre.com

Voters Inspired

Published
by
kevin
on November 5, 2008
in Lending and Uncategorized
. 0 Comments

I am sure many of you have heard of the campaign to “Get Out The Vote” or GOTV - it is a reference to each political party’s attempts to energize their voting base through various activities. Republican or Democrat, no doubt there was a GOTV effort in your city or town.

GOTV efforts produced results not seen in a very long time. There are many different reasons why educated and even passionate people fail to make it to the polls for each election. Some say low voter turnout represents a lack of trust in government. However, this year, this Presidential Election, it can be said unequivocally that voters were inspired and ready to see this Nation move in a new direction.

In the past few years we’ve seen a special election to unseat a Governor, a contentious Presidential race, major bond campaigns and raucous political infighting. At some point, voters reached maximum exposure and decided it was time to do something about it. Casting votes in droves, Republicans and Democrats alike took advantage of the very right which makes this country so special, they voted.

It turns out that the economy was the driving factor of importance in this year’s election. Given the current economic situation in the country and here locally, it’s no wonder why this issue played such a large role in how citizens cast their vote. As the excitement and drama associated with this historic Presidential Campaign begins to subside, the reality associated with the task at hand for our new President-Elect and Congress will become ever clearer. The new voting demographic will be watching closely as this country, under new leadership, begins pursuing policies for the future.

The tide on voter apathy has changed course. Regardless of party affiliation, every American should feel a sense of great pride for the turnout enjoyed on November 4th.

Kevin

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