Your Exceptional Life

I’ve just read a couple of interesting commentaries on the current state of money, mortgage money in particular. Brian Brady has written on numerous blogs that the interest rates are equal to what they were in July of 2007. And he backed it up. Nice job Brian.  The Federal Funds rate was 5.25% in July 2007 and it’s 2.25% now. The lender’s margin in now over 4% and you’ve got to wonder where the money is going. We know where it’s not going. It’s not going to the consumers. Homeowners and home buyers are not reaping the benefits of this low Federal Rate. They’re being dinged the exact same interest rate. ARM is now a dirty word and fixed is King. Yet, property is not selling, it’s sitting on the market. Yes, a shiny penny will still move, but the average home is sitting because now buyers are waiting around for the heavens to open up and let them know that the market has hit the absolute bottom and it’s now safe to buy. Here’s a tip, it’s safe to buy when you financial situation and your personal situation come together in harmony. As I’ve said before, business is cyclical. Real estate is currently in a contracting cycle. If it’s not at the bottom, it’s near enough. If your financial and personal situation warrant the purchase of a new, bigger, smaller, better home, then buy it. Those factors won’t change. If you can afford the home, purchase it. Every moment that you rent when you could own is another month where you cannot deduct any mortgage interest. It’s another month that your landlord gets richer and you tread water. If you can afford the home, then buy it. After all, ya gotta live somewhere.

In recent years a couple of automated real estate valuation websites have cropped up. The two biggies are Zillow.com and Cyberhomes.com. The way they are set up they take recent sales in your area and factor that into your most recent sale and “guesstimate” what your home is worth. They are chock full of disclaimers, but we don’t read fine print. The truth of the matter is they’re just ballpark guesses. Zillow.com currently has my home guesstimated at $405,000. What they don’t know is that since I bought that property, it’s had an entire remodel. It’s a coat of exterior paint away from being one of those clean homes that are selling right now. That’s right. Clean, finished upgraded homes in decent neighborhoods with good schools are still selling. There are plenty of bottom feeders out there right now, but sometimes a real family needs a real home because their family expanded. Maybe Jr. is too big to share a bedroom any more. Maybe Nonna had to move in with the family. Maybe they’re now empty nesters. People still have to live their lives and life involves change sometimes.

Back to the Farm. I could probably get $485k for it on the open market right now. I would have to stage it properly and it would have to be marketed properly, but it would move. Cyberhomes.com guesstimates my home at $492,500. They don’t know about the remodel either. They’re wrong too. The point is, that while these websites are nice tools, unless you have the skills of appraising in this market, which would be acquired by viewing many homes, not just yours, you really need a Real Estate Professional if you’re going to sell in this market.

I found this article in the Chronicle yesterday. I just love with the media validates my contrarian point of view.

The news has been full of reporting on foreclosures and I’ve mentioned it several times here. Currently the number one city for foreclosures in the country is Stockton, CA, followed by Coral Gables, FL, Merced, CA, Modesto, CA and Riverside, CA, Las Vegas, Vallejo-Fairfield, CA, Bakersfield, CA, Sacramento and Port Lucie, FL is #10. In the top ten there is only one city that isn’t in California or Florida and that’s Las Vegas, NV. I hope you saw that one coming. It was obvious, no infrastructure for the massive amount of housing they were building down there. Prices off the hook for living in a sand box, that one’s a no brainer. The troubles are pretty localized. Check out this graphic from The Mortgage Report

California is getting whacked. If you have a good mortgage and can make the payment, stay pat. If yours is adjusting call a reputable mortgage broker or bank for help getting your loan re-written. At some point these lenders are going to realize that re-writing loans is more beneficial than taking beating after beating on property that they over lent on. Get the payments in line and cut your losses. This is just like the 80’s when people were signing deeds and mailing them to the bank with their keys. Don’t get caught flat footed. Be proactive in protecting your family’s home.

My goodness it was a hot four days there.  PG&E keeps sending me these things about installing some air conditioning switch that they operate from headquarters and turn up or down or something your air conditioning when you’re at work.  Then you get some sort of break.  What kind of break do you get if you live in a fifty year old house with NO air conditions?  None until the wind whips up.  But that’s a double edged sword because with wind there’s usually a fire or two and we just don’t like to see that.  The last time the Oakland Hills burned was 1989.  That was 19 years ago.  The time before was 1971, 18 years earlier.  The Mayor of Claycord had some amazing pictures of the last big one on Mt. Diablo.  Be careful out there.

Yesterday was a lucky day for me in the shadow of the mountain. I started the day with a ride OVER the mountain. I’d never done that before. It was a five hour bike ride door to door. It was also the hardest thing I’ve done in years. And I’m soo doing it again next week. The views are spectacular, the work out unmatched. It was a gorgeous day on the mountain, the wind was mild, and I’m still in awe of the whole day.

Last night I had dinner at Metro in Lafayette. It’s the second time I’ve been there. The first time they had a duck confit on the menu that was ridiculous. How ridiculous you may ask? When the guy came and asked about dessert we both said “can we have the duck for dessert?” That’s an amazing dish. Last night the duck wasn’t on the menu, but a Croque Monsieur was and so was a Bucatini with sausage. Both dishes were excellent. My friend Harry ordered the spicy fries and we spent a goodly amount of time figuring out the amazing spice concoction.  (We nailed it)  Service was very attentive, just like the last time. This place is a little jewel in a strip mall. The owner is a sommelier so the wine list is interesting and well priced. We had the Tempranillo by the glass and for the first time in a long time I could say that a by the glass wine was both good and well priced. Stop by, they bring a certain sophistication to their house that’s nice to see in Contra Costa County.

This morning was a fine how do you do.  It’s raining, in Concord on May 24th, Memorial Day weekend.  This so cancels this morning’s bike ride.  I’ve been reading in various articles how people are staying home more now that gasoline has hit $4. a gallon.  It’s driving up the cost of everything.  The GM of a grocery store chain told us yesterday that business was off for them too.  Apparently those who used to buy filets can only afford hamburger now, and those that bought hamburger are spending even less.  Every aspect of every business is getting whacked by this.  Travel is way off.  I just got a hotel on priceline for $122 less than it was listed every where else.  I would imagine that was because they’re aren’t sold out and don’t have much hope of becoming sold out.  Cost of flying is way up.  Up 8% for the ticket alone, and now most of the free services are pay services.  American Airlines is now charge $15 for a checked bag.  That’s going to make the cabin a delightful place.  Most airlines have had their pilots slow down, from 542mph to 532mph saves a lot of fuel.  Just like slowing from 80 to 70 does.  Or 70 to 60.  I can’t bring myself to drive 55.  I’m with Sammy Hagar.

An era ended around these parts.  Dennis Richmond retired from KTVU 2 news.  He’s been doing the news for 80 percent of my life.  His voice is the soothing voice of reason when disaster has struck the Bay Area.  I’ve never met him in person, but he’s always been hanging around somehow.  Enjoy your retirement, sir.  We’ve enjoyed your career.

Tonight, throughout the country, world.  Take a moment for the cyclists that have been hurt and/or killed by vehicles.

One of the greatest golfers of our time announced her retirement this week. When an athlete can be referred to by only one name and everyone knows who you’re talking about, that’s greatness. Annika Sorenstam will ride off into the sunset after this year. Officially, she’s “stepping away” from the game, but what that really means is she’s retiring to pursue other things, like probably a family. She’s going out on top, where she’s been most of her career. Last year was a tough year with a nagging back injury but she’s come back strong this year and is currently number 2 behind Ochoa, another great golfer. Following Annika on the tour is hard. Her gallery is off the hook. The only way to see her is to show up on Thursday, otherwise the gallery’s too deep.

On Thursday, she’s relaxed, taking it easy and just trying to lay down a good foundation to crush the field on Saturday and Sunday. This was taken at the Nabisco Championship on Thursday 2003. She was the defending champion. She didn’t win it, Patricia Meunier-Lebouc won it that year. The picture shows the essence of Annika that I saw while in her gallery that day. She’s relaxed, yet a machine. She jokes with the caddies and the gallery even sometimes, yet when handed a club, she dials in, locks down and becomes a machine.

A gal I know who owns a gym down in Carlsbad or somewhere like that trained Annika that year. I was fascinated with the way they broke down her swing and did things to make her strong in those areas. Her drives are epic. She is a powerful woman, about 5′7″ tall. She doesn’t look that on television but she is in person. I wish her well in her other endeavors. She owns a golf academy in Florida, she’s getting married and rumor has it that starting a family is the top of her list. I hope she comes back and plays from time to time. She’s not old enough to put away her clubs, she’s only 37.

Juli Inkster is still playing and playing well. She’s almost 50 has I believe three children. I know after her rounds she’s been known to fly home for one of the kid’s soccer games and back the next morning for a tee time. She won the Nabisco (called the Dinah Shore at that time) in 1984. Same score as Annika. Hopefully Annika will take a page from Juli Inkster’s book. I’m not done watching her play.

This morning on the way to work I drove by Newhall Park, like I do every morning.  The difference was this morning I saw something that caught my eye on the walking path.  I thought it was a loose dog, so I slowed to get a better look.  There, behind a tree, on the walking path stood a large coyote.  He looked as tall as my Doberman, but that probably was just an illusion.  I called the Concord Police, who didn’t seem to give a damn, but that’s been my experience with them in all matters.  When I got to work I called Animal Control to let them know.  As some of you know Newhall Park is a big park.  There are lots of children’s events, soccer games and such, and a large dog park there as well.  It seemed to me that a coyote standing in the walking path at 6:45 in the morning was a problem, but according to Animal Control, they’re in all the neighborhoods in Contra Costa County, we just don’t see them.  They’re protected, so it’s a live and let live policy.  I’d recommend that you don’t let Junior or Fluffy run by themselves in the parks, keep’em in larger groups…and live and let live.