Q&A with Karl Lee, President Santa Clara County Association of Realtors

Karl Lee, President SCCAOR

Silicon Valley's housing market is well on its way up, but it still has a long way to go before home values return to peak prices reached back in 2007. The market's transition prompted us to contact area real estate leaders, including Karl Lee, president of SCCAOR, to gain some market insight for homebuyers and sellers alike.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Silicon Valley's housing market is well on its way up, but it still has a long way to go before home values return to peak prices reached back in 2007.

The market's transition prompted us to contact area real estate leaders to gain some market insight for homebuyers and sellers alike.

We recently sat down in a question-and-answer session with Karl Lee, president of the Santa Clara County Association of Realtors (SCCAOR) and a Santa Clara County native.

Lee also serves on San Jose's General Plan Task Force and the San Jose Foreclosure Prevention Task Force and is broker/owner of the family owned Realty World Results Pros in Milpitas.

Lee also has 13 years of experience in corporate banking finance and enjoys softball, volleyball, skiing, hiking and traveling.

Q: How would you describe today's housing market? Is it a buyer's market or a seller's market?

A: Santa Clara County has become a seller's market in 2010. Multiple offer situations have been common. Every month this year has seen 25 to 30 percent increases in closed sales volume compared to the same months last year. We've also seen double digit average sales price increases.

Q: What do today's housing market conditions mean for buyers and for sellers? How can they obtain the best deal, selling or buying in today's market?

A: The current Santa Clara County real estate market has ample opportunities, but buyers and sellers need to be patient and prepare for the unexpected. Closing a contract is more complicated than ever. We have also experienced delays due to the new federally mandated Good Faith Estimate guidelines.

To be a successful seller, you must make strong pricing and presentation efforts to offer the most attractive home on the market. The strategy reveals to buyers that your home is a better value than other homes. It also allows buyers to visualize how the home fits his or her lifestyle.

Buyers in today's market need to understand the competitive environment they face. Buyers need to carefully evaluate homes and contractual terms, particularly when it comes to short sales and bank-owned homes in poor condition or requiring repairs. Buyers must convince sellers that they have most competitive offer and the best chance to close the transaction.

Q: What do you tell buyers who may be waiting for home prices to fall further?

A: I don't sense that prices will fall significantly in our market. However, if prices do fall some, increasing financing costs will likely offset small savings from falling prices.

Q: What do you tell sellers waiting for home prices to rise?

A: Homeowners should base their selling decision on their life goals and lifestyles, not on a projected direction for the housing market. It is impossible to out-plan the market.

Q: Distressed properties account for a larger percentage of homes for sale than normal. These properties can be a good deal, price-wise, for home buyers looking for a bargain. They can also come with hidden problems. How do you advise buyers considering distressed properties?

A: Short sales represent approximately 42 percent of the market, while foreclosed, bank-owned homes represent a much smaller share, approximately 7.72 percent.

My recommendation for buyers is to focus on the best home for their goals and needs. The market perception that distressed properties are bargains has a created a frenzy for these homes and that's created more competition for them, more so than even for traditional listings.

Bank owned sales, short sales and traditional sales each have their own unique set of dynamics and complications which buyers need to consider and adjust to. When it comes to a distressed property, planning for hidden repair costs and legal issues is key.

Q: What's your advice for someone who has an "underwater" mortgage that's larger than the home is worth, but who is not having a problem making payments?

A: History has shown us that our market will work its way out of the current economic cycle. All indications are that we have already hit the bottom. If your lifestyle and goals make sense with your current home, if you can afford to make your payments, you should continue to make your payments.

Q: What's your advice for a homeowner with an "underwater" mortgage but is struggling to make payments or is soon to face a mortgage rate reset or other condition that could cause problems?

A: The first step is to consult appropriate experts including an attorney, a tax expert, a counselor who is certified by the U.S. Department of Housing and Urban Development (HUD) and a realtor. Each homeowner and each loan agreement have unique legal and tax implications.

A great resource for distressed homeowners in Santa Clara County is ForeclosureHelpSCC.org, created by the San Jose Foreclosure Prevention Task Force, a coalition of the City of San Jose, the Santa Clara County Association of Realtors, the Silicon Valley chapter of the California Association of Mortgage Practitioners, a number of HUD certified counselors and other non-profit agencies.

If a short sale is a viable option, experienced realtors with short sale home selling expertise can manage the marketing and contract negotiations.

Q: Given the market has put downward pressure are the value of homes since the peak of the boom, how can homeowners boost home value or shore up and retain the value of their homes?

A: Maintain upkeep, perform repairs, clean up, remove clutter. A home that shines always brings the most value. Home improvements typically don't provide an equal return on the investment, but their true value comes from living and using the improvements.

Paying down and lowering the principal more than what's required by the loan agreement is a good idea, depending upon your lifestyle and financial goals. Of course, the more you pay down the principal, the less mortgage interest you can deduct.

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© 2010 DeadlineNews.Com

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You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
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• National Real Estate Examiner

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Got a real estate question? Ask a Realtor

Madison, WI's new city bird

Sponsored by the National Association of Realtors and launched by Realtor.com, Ask a Realtor offers homeowners, sellers and buyers a forum to get professional answers to real estate questions from local Realtors who know and understand the local market.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - Why do I need a Realtor? Is it a good time to buy? Should I continue to rent or buy? What is a mortgage modification? How do I get into a short sale? How can I avoid foreclosure?

Got a question?

Ask a Realtor.

Sponsored by the National Association of Realtors and launched by Realtor.com, Ask a Realtor offers homeowners, sellers and buyers a forum to get professional answers to real estate questions from local Realtors who know and understand the local market.

It's a free online feature that lets consumers anonymously ask questions answered only by licensed real estate professionals.

As is the case with most question-and-answer services, the answers are general in nature, and not based on knowledge of your specific circumstances, and should be used only after independent verification for reliability and relevance. The answers can, however, can get you pointed in the right direction if you are buying, selling, refinancing or just troubled by some homeownership issue.

Questions can be on any real estate-related topic ranging from local market trends, mortgages and home values to buying, selling, home inspections and more.

Your questions will be forwarded to a local participating Realtor or to one that specializes in the area of expertise most relevant to your question.

Answers are emailed directly to you, with some of them posted on the homepage of Realtor.com Blogs for anyone to peruse.

Questions and answers are also archived on site and listed chronologically and by subject, for future reference in the knowledgebase.

Participating San Francisco Bay Area Realtor, Kevin R.
Kieffer says, "Ask a Realtor is a great way for anyone to ask questions about
our real estate market and to connect with a Realtor who has local experience
and connections."

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© 2008 DeadlineNews.Com

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Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins is also the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

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Q&A with Olivia Edwards, 2009 President SAMCAR

Happy Motherlovers' Day

We recently sat down in a question-and-answer session with Olivia Edwards, 2009 President of the San Mateo County Association of Realtors (SAMCAR), to glean advice for homeowners, home buyers and home sellers in the region.

by Broderick Perkins
© 2008 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - With so much uncertainty in the housing market, it's a good time to seek insight from real estate leaders who have their fingers on the pulse of this market.

We recently sat down in a question-and-answer session with Olivia Edwards, the 2009 President of the San Mateo County (CA) Association of Realtors (SAMCAR), to get some advice for homeowners, home buyers and home sellers in San Mateo County.

Edwards has been a full time real estate agent since 1984 and earned entry into the top 1 percent of all sales associates nationwide. As a Realtor with the Platinum Group of McGuire Real Estate in Burlingame, CA, she is a Certified Residential Specialist, ePro, Certified New Homes Specialist, and has a National Association of Realtors GREEN Designation.

Edwards reads and writes Chinese, is also a productivity coach and guest lecturer at the College of San Mateo.

She's married to Gary Edwards and share two Corgi "girls," Emma and Sara.

Edwards is also busy as the leader of SAMCAR.

Q: What is SAMCAR?

A: SAMCAR is a trade organization serving 3,100 members with education, information and tools necessary to be successful realty professionals. SAMCAR is also a legislative advocate, supporting private property rights and home ownership opportunities.

The trade group enforces professional standards and a code of ethics to help protect consumers. SAMCAR members also benefit from the group's affiliation with the California Association of Realtors and the National Association of Realtors.

Q: What is your role as president of SAMCAR?

A: My role is to carry out our mission; unify the real estate community; inspire and harvest great ideas and future leaders; to direct and support strategic planning; to motivate members to contribute to the community; and to always lead by example.

Q: The housing crisis is on the minds of everyone, especially homeowners who are struggling to pay their mortgages, potential home buyers and those who want to sell their home. What steps are you, in your role as president, and SAMCAR taking to help homeowners keep their homes?

A: First of all, not everyone should keep their home. It is very important for homeowners to face reality head on. They need to seek counsel and or answer the following questions honestly:

• Why are we struggling to pay the mortgage? Loss of job? Illness? Higher monthly payments?
• Is the mortgage more than the market value of the home? If so, this is not a good reason to discontinue making the mortgage payments.
• What were my goals when I purchased my home?
• How long did I plan to hold onto my home?
• What will happen financially if I continue to make the mortgage payments?
• Am I "unable" or "unwilling" to pay the mortgage?
• If I'm unable to pay the mortgage and do not wish to sell my home, have I contacted the lender about options or to start the loan modification process?
• If I want to keep the home, have I considered options, including getting a second job, renting out a portion of the home to help?
• If I can't afford to keep the home, have I contacted and Realtor to look into a short sale?

Q: Likewise, what can home buyers expect from the association?

A: Part of our mission is to ensure professionalism, protect property rights, and promote the ownership of real property. Home buyers should use SAMCAR as their resource.

Q: How does the association assist homeowners who want to sell their home?

A: This is the primary role of our members. We have a public website to help connect buyers and sellers with our members. Go to and click on "Find a Realtor" for a Realtor specializing in your city. You can also click on "statistics" to learn about what is happening in your area in terms of sales of other homes.

Q: There have been some complaints from the real estate industry that the media is not fair in its coverage of the housing crisis. How can the media assist the association and the public in terms of reporting about the crisis and other housing issues?

A: Report the good and the bad. Describe the half empty glass, as well as the half full glass. Share what we lost and what we have. State the challenges and opportunities. Every story of someone losing value in their home should be balanced with the current affordability level for a new homebuyer. For each challenge there is an opportunity and that is rarely communicated.

Q: What advice do you think home sellers need most in the current housing market?

A: Home sellers need to know why they are selling. If the answer is to try to get the price they were able to get a few years ago, they should not bother to put it on the market. If they do need to sell, they should accept the current market value. I would suggest they work with a professional Realtor or a team who will listen to their needs. To get the highest price for the property in today's market, they need to understand strategies, including proper pricing, property condition, staging, completing reports up front, disclosures, easy access, intensive marketing (signage, descriptive color brochures, Internet exposure, photos, weekly open houses), and working with a reputable Realtor.

Q: What advice do you think home buyers need most in the current housing market?

A: They need to do their research and identify what kind of lifestyle they want. They need a down payment, and they need to find the amount of a monthly mortgage payment they feel most comfortable paying and they need to get pre-approved. they also need to understand all of the aspects of owning a home, including benefits and responsibilities, type of home wanted and buying for the right reason. Buyers need to take responsibility for their education and when in doubt, ask questions and trust gut instincts. Working with a Realtor or a team is imperative.

Q: What advice do you think homeowners most need in the current housing market?

A: Always go back to why you bought your home in the first place. Ask yourself how long you planned to stay in the home when you first bought it. Remember, it's a home and an investment. In the meantime, continue to enjoy your life in your home and fix it up the way you want. Be smart with your money in an up or down market and live within your means.

Q: Are there any comments you'd like to make to your constituency, consumers or the public at large?

A: Real estate is the American Dream. This dream can be achieved through careful planning. Your home is a place for you to build your future. Your home is not an ATM machine. Regardless of how the market is, always go back to the basics, know your finances, have a budget and live according to your means. Spend less than you make, have a savings plan, keep educating yourself on finance, real estate, tax savings, negotiation, communication and goal setting. Furthermore, take advantage of your tax write offs, and participate and contribute to your community.

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© 2008 DeadlineNews.Com

Need a break from doom and gloom in the housing market? Get off the beaten news track and stop by the DeadlineNews Group's Offbeat News Examiner outlet for a few laughs.

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop. Perkins is also a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!

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Q&A with Julia Truesdale Keady, 2009 President SILVAR

Julia Truesdale Keady
2009 SILVAR President

We recently sat down in a question-and-answer session with Julia Truesdale Keady, 2009 President of the Silicon Valley Association of Realtors (SILVAR), to glean advice for homeowners, home buyers and home sellers in Silicon Valley.

See more Deadline Newsroom Q&As with real estate leaders.

by Broderick Perkins
© 2008 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - Uncertainty in the housing market makes it a good time to seek insight from real estate professionals, leaders who have their fingers on the pulse of the housing market.

We recently sat down in a question-and-answer session with Julia Truesdale Keady, 2009 President of the Silicon Valley Association of Realtors (SILVAR), to glean advice for homeowners, home buyers and home sellers in Silicon Valley.

Keady is also a Realtor with Alain Pinel Realtors in Palo Alto and has been an active, top-producing real estate agent on the San Francisco Mid-Peninsula since 1985.

She's married to Michael Morris and together share a full house of children -- Ashley, Daniel, Kate and James -- and two grandchildren, Kierra and Danny.

In Keady's spare time she travels, and enjoys golf, hockey, hiking and opera.

She also has her hands full leading SILVAR.

Q: What is SILVAR?

SILVAR is a professional trade organization representing more than 4,000 Realtors and affiliate members engaged in real estate business on the San Francisco Peninsula and in the South San Francisco Bay Area. SILVAR promotes ethical standards in real estate practice and serves as an advocate for homeownership and homeowners, while representing the interests property owners in Silicon Valley. SILVAR members are also members of the National Association of Realtors and the California Association of Realtors.

Q: What is your role as president of SILVAR?

A: My role to ensure our members have a competitive advantage in the market. Working with SILVAR's board of directors, I am committed to maintaining the level and quality of services for our members, and to provide the tools necessary to help our members survive and succeed in business. Tools include business meetings, educational programs, marketing opportunities and access to current market trend reports.

Q: The housing crisis is on the minds of everyone, especially home owners who are struggling to pay their mortgages. What steps are you, in your role as president, and SILVAR taking to help at-risk homeowners keep their homes?

A: We are educating our members about property issues. Our government affairs staff keeps an eye on proposals at the local, state, national government levels that might significantly impact home ownership, private property rights and housing opportunities. At the national level, we are working with the National Association of Realtors (NAR) to preserve the mortgage interest deduction, tax credits for first-time homebuyers and higher conforming loan limits. At the state level, we oppose mandates on the sale of homes that would ultimately result in increasing the cost of buying a home. We also support the expansion of diversified housing opportunities for families of all income levels in Silicon Valley.

Q: What advice do you have for homeowners, in general, in terms of maintaining the value of their homes in a tight market? For those who choose to stay put right now, what might they be overlooking in terms of retaining and maintaining their home as a valuable asset?

A: Good home maintenance is key to preserving a home's value, and impressing potential buyers. Making homes safe with smoke detectors and carbon monoxide detectors, keeping the electrical system and plumbing in good working order are important steps. Routine preventive maintenance is also important. Repair roof leaks, seal gaps in siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers. Also important: a programmable thermostat, weather stripping for doors and windows, fixing leaking faucets, upgrading insulation, and replacing leaky windows. Home owners should also consider environmentally-friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation. And always get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.

Q: What advice do you have for home buyers in the current market? Some buyers have decided to sit out the recession and wait for the bottom of the market. Other buyers have decided to buy now because prices have already dropped and mortgage rates are low. What advice do you have for each type of buyer?

A: If you have a solid job and you can afford to buy a home, now is an ideal time.

Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels. Inventory is up, which means buyers have more homes from which to choose, and with that comes more negotiating power. Interest rates and state and federal incentive programs out there for buyers are the best I have seen in my long career.

There are some (job-loss mortgage insurance) programs in our marketplace today that will protect a first-time buyer's mortgage payment for some months in the event buyer loses their job in the first year of home ownership.

Even if the market were to lose some value from here, if the interest rates bump up even a small percent, the long-term cost of a home purchased later would be greater than buying today at our current rates. Real estate has always been considered a long-term investment. Homeownership builds wealth over the long-term.

Make sure you consult a professional, experienced Realtor, who is knowledgeable about market conditions in your area.

Q: Likewise, what advice do you have for home sellers, some of whom have decided to wait until the market improves and others who, for one reason or another, must sell now? How can they best approach their decision to sell or not to sell?

A: If you want to sell, seek advice from an honest, competent, and experienced Realtor about why you are thinking about selling. Write down all the positive and negative reasons. One list will stand out and your decision will be easy.

If you decide to sell, price your home correctly. Seek the help of a Realtor to evaluate a realistic market value for your property. Do not price your home only to test the waters. Today, under present market conditions, real market pricing is key to selling your home right away. If you set your price unrealistically and are forced into a price reduction, you will ultimately be chasing water downhill. Your Realtor can give you recommendations as to how to make your home look and feel like the home buyers seek in your neighborhood.

Q: What can you tell residents in Silicon Valley about the current state of the housing market? The median price in March, $450,000 for single-family homes, was less than it was nearly 10 years ago in March 2000, at $524,250. The March median this year was also about half the median price of $830,000 in March 2007, the year the market peaked. How did that happen? How does that pan out for home values? Have homes lost half their value in just a couple of years?

A: This is very discouraging at first glance. While all areas have felt the recessionary impact of lower home values, some areas have been hit particularly harder than others.

The drop in median price overstates the decline in the value of the typical Silicon Valley home. At present, the median home price is reflecting the fact that more of the lower-end, discounted homes are selling in this market, so there is a softening of high-end sales, which are now under-represented in the statistics.

The housing market can differ from one street to the next, depending upon the school district and other assets of a neighborhood. To know what effect the current economic climate has had on a given property, residents should consult with a Realtor to obtain an evaluation of that property.

Don't forget, homeownership is a long-term investment and a good one. According to the Federal Reserve Board, a homeowner's net worth is 46 times that of a renter's. When purchased for the long-term, housing is still one of the safest investments consumers can make. In addition to the savings accumulated through a buildup of equity and tax advantages, a home provides shelter. No paper investment provides this benefit.

Also, the benefits of home ownership go beyond the checkbook or 1040 forms. Studies show high and stable rates of home ownership rates boost the quality of life in communities by supporting education and civic involvement, while lowering crime rates and welfare dependency.

Q: Is it a buyer's or seller's market? Why? When will the market return to a "normal" market that's fair and balanced for both buyers and sellers?

A: Actually, "fair and balanced" describes the current marketplace. If priced realistically, homes sell. Sellers may not now enjoy the value they had in 2007, but their home will sell if priced realistically.

Bargain hunters are more likely to find a good deal when the supply is ample, like now. Buyers can take their time and buy subject to the sale of their current home more easily than in recent years. That puts buyers in a better position to negotiate than they were a couple of years ago.

With interest rates so low and these other great incentives, including the tax advantage of the mortgage interest deduction, now is a perfect time for first-time and even repeat buyers.

Q: Are there any additional comments you'd like to share with your constituency, consumers or the public at large?

A: Times are tough, sure, but we are very fortunate here in the Silicon Valley region. We still have more jobs than housing units and it is a wonderful and vibrant place to live. Our employment diversity, fabulous educational institutions, world renowned healthcare and exceptional weather are golden and we will be a desirable place to live forever. People buy homes here to live in and pay off so, in their golden years, they will have an asset that will help support them throughout their lives. Investment opportunities also abound. Rental property purchased and held for the long term is a very tried and true strategy employed by many.

I would urge consumers who are considering selling or buying a home to contact a Realtor in their local market. A Realtor can help them begin to build their future through homeownership. A Realtor and affiliates can help you with home inspections, home financing, home buyer and home selling. Visit SILVAR's Web site to contact a Realtor.

• Click on the keywords below for more stories on this subject.

© 2008 DeadlineNews.Com

Need a break from doom and gloom in the housing market? Get off the beaten news track and stop by the DeadlineNews Group's Offbeat News Examiner outlet for a few laughs.

Advertise on DeadlineNews.Com

Shop DeadlineNews.Com

Get news that really hits home for your Web site or blog from DeadlineNews.Com.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop. Perkins is also a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!

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Q&A with Kim DiBenedetto, 2009 President MCAR

Kim DiBenedetto
President MCAR

Real estate leader Kim DiBenedetto says there's no time like the present to have a licensed, association affiliated real estate agent on your side.
by Broderick Perkins

© 2008 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - With so much uncertainty in the housing market, it's a good time to seek insight from real estate leaders who have their fingers on the pulse of the market.

We recently sat down in a question-and-answer session with Kim DiBenedetto, the 2009 president of the Monterey County Association of Realtors to get some advice for homeowners, home buyers and home sellers.

DiBenedetto is also a real estate agent with Coldwell Banker Del Monte Realty in Carmel and has been a top sales producer for nine years. She's been president and active with the Women's Council of Realtors' Monterey Peninsula Chapter and was a 2008 member of the Coldwell Banker International President's Circle.

She's married to general contractor Jeff DiBenedetto. They have a daughter Julia currently attending Syracuse University.

DiBenedetto says there's no time like the present to have a licensed, association affiliated real estate agent on your side.

Q: The housing crisis is on the minds of everyone, especially homeowners who are struggling to pay their mortgages, potential home buyers and those who want to sell their home. What steps are you, in your role as president, and MCAR taking to help homeowners keep their homes?

A: We educate our members so that they may better assist home owners and home buyers make the right decision for their situation. We have an excellent Government and Community Affairs Director who keeps us current on new legislation that could affect any of our members and their clients. Working with our legislative representatives, we are advocates for private property rights. As advocates we also make sure our clients' voices are heard when they cannot do it themselves.

Q: Likewise, what can home buyers expect from the association?

A: Not only will buyers get a licensed agent to represent them in a professional and ethical way, they will also have access to the latest legal issues, new legislation, new forms, the most current market information and the latest on the ever changing REO (bank owned) and short sale processes.

Q: How does the association assist homeowners who want to sell their home?

A: In addition to the advantages of professional representation, the website for our association, MCAR.com is helpful for both buyers looking for homes and owners who want to sell their home. The site offers listing services, consumer information, the latest statistical information, a weekly open house list, and community lifestyles information.

Q: There have been some complaints from the real estate industry that the media is not fair in its coverage of the housing crisis. How can the media assist the association and the public in terms of reporting about the crisis and other housing issues?

A: The most important factor is that all real estate is local. It really doesn't matter what the real estate market is doing in Bakersfield or Chicago or Baltimore if someone is thinking of buying or selling in Monterey County. To highlight state or national figures really makes no sense. We need to focus on what is going on here in Monterey County and more specifically in each individual area of the county. The local market is so segmented, that there are different price ranges and different levels of activity in each city. It's not the media's responsibility to be real estate experts. That's what we at MCAR are here for -- to be the source of the most reliable real estate information.

Q: The Obama administration's "Homeowner Affordability and Stability Plan" rolled out in March. The $275 Billion Plan includes:

• A refinancing program for "responsible" borrowers who haven't missed payments and whose loans are larger than the value of their homes.

• A loan modification provision with incentives for lenders to modify certain mortgages.

• A change to bankruptcy rules to allow judicial mortgage modifications designed to reduce mortgage balances to fair market value.

How will these provisions play in Monterey County?

A: We aren't certain yet how the lenders will execute the plan so we don't know for sure how it will play out, but it should help many in our county.

What's most important is the extension of higher conforming loan limits that allow buying and refinancing more expensive properties at the lowest market interest rates. The conforming loan limit in Monterey County has been raised from $417,000 to $729,750. Without the higher conforming loan limits most of these vehicles to help homeowners stay in their homes would be worthless as most loans in jeopardy are higher than the previous limit of $417,000.

We are keeping the public informed at the MCAR Online Forum & Blog.

We are concerned the new bankruptcy rules could raise the interest rates we all pay on our loans because the reduction of mortgage balances by bankruptcy judges may cause lenders to adjust that loss with higher interest rates on new loans. This could negatively impact home buyers and refinancing homeowners who are otherwise taking advantage of some the lowest rates in recent history.

Q: What advice do you think home sellers need most in the current housing market?

A: Just because your neighbor's house sold a year ago or even a month ago for a certain price doesn't necessarily mean you can get the same price. Every niche of the market has different activity. Sellers' pricing strategy has to be precise or your home will sit for longer than it should. That could diminish it's value. Sellers need reliable market information that Realtors provide.

Q: What advice do you think home buyers need most in the current housing market?

A: Again, the most important thing is to have current market information along with a skilled negotiator. I know a Realtor whose client found a home she liked at an open house but when the Realtor assessed the situation for her, they decided to keep looking and ended up getting a larger home in a better location for almost the same money. Without his expert knowledge the buyer could have purchased a lesser home in a less desirable location.

Q: What advice do you think homeowners most need in the current housing market?

A: Real estate has always been a long term investment and, over time, it's still the best investment you can make. Even if your home is not worth what you paid for it at the moment, with time it will bounce back. The key is to remember that a home is more than an investment, it is a lifestyle. Ideally, it is best if you can pay an additional amount each month towards the principle of your loan. If that is not possible, it is important to at least pay the interest only payment if you have an adjustable rate mortgage. If that is not possible, you may want to consider applying for a loan modification to allow you to stay in your home or a short sale, if you decide you need relief from the debt. Your Realtor can help you examine your options.

• More Monterey County, CA news that really hits home.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop. Perkins is also a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!

(Also, while waiting for real estate to recover, the DeadlineNews Group is going off the beaten path for a while...)

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Quincy Virgilio, 2009 SCCAOR President Q&A

Quincy Virgilio
2009 SCCAOR President

With so much uncertainty in the housing market, it's a good time to seek insight from real estate leaders who have their fingers on the pulse of the market. We recently sat down in a question-and-answer session with Quincy Virgilio, the 2009 president of the Santa Clara County Association of Realtors to get some advice for homeowners, home buyers and home sellers.

by Broderick Perkins
© 2008 DeadlineNews.Com


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Deadline Newsroom - With so much uncertainty in the housing market, it's a good time to seek insight from real estate leaders who have their fingers on the pulse of this market. We recently sat down in a question-and-answer session with Quincy Virgilio, the 2009 president of the Santa Clara County Association of Realtors, to get some advice for homeowners, home buyers and home sellers in Silicon Valley

Virgilio is also broker and owner of Realty World -- California Property Network, and the Mortgage Network in San Jose. He has more than two decades of experience, a half decade of service with the association and 800 closed transactions under his belt.

He's married to Lynn Virgilio, advertising director at Grass Valley's historic The Union newspaper. They have two adult children Nicolette and Dominick. The family man is also an avid golfer known to bicycle a century for charity.

These days, much of his time is spent as the helm of the Santa Clara County Association of Realtors (SCCAOR).

Q: What is SCCAOR?

A: In our community, SCCAOR's role is to be the "go to" source for all things related to the real estate industry, to support private property rights and to bring home ownership opportunities to the community. The association is also a trade group serving members (7,700, down 16 percent from a year ago) with education, information and tools to be successful professionals. It also enforces our code of ethics and professional standards. Enforcement helps protect consumers (who have access to the enforcement process) by assuring that they get a transaction that meets our standards. SCCAOR members also benefit from our affiliation with the California Association of Realtors and the National Association of Realtors.

Q: What is your role as president of SCCAOR?

A: I am the face of the organization, my role is to represent our members publicly, and to lead our members, and our board of directors toward the successful completion of our goals.

Q: The housing crisis is on the minds of everyone, especially homeowners who are struggling to pay their mortgages, potential home buyers and those who want to sell their home. What steps are you, in your role as president, and SCCAOR taking to help homeowners keep their homes?

A: Part of our strategic plan is to make sure that organized real estate is at the table discussing, finding and implementing the help and solutions needed during this challenging time.

Our goal is to get involved at all levels of the governmental, political and civic communities working on these issues. Through these goals we are involved with the city of San Jose's foreclosure task force, and have already helped with a foreclosure fair where homeowners were able to work directly with their lenders to obtain loan modifications on the spot. It that was not possible, they got answers to their questions from reliable professionals. Another fair is coming in April.

I am also meeting with all of our city council members and county supervisors to examine ways that we can help them. We are trying to conduct public forums with council members in each district to discuss housing problems facing neighborhoods.

We are also working on a counseling program to help people through the process (of homeownership) and to connect with nonprofits already doing this work.

Q: Likewise, what can home buyers expect from the association?

A: Reliable information, direction and support.

Q: How does the association assist homeowners who want to sell their home?

A: This is the primary role of our Realtor members. We have a public website that helps connect buyers and sellers with our members. Go to SCCAOR.com and click on "Consumer Info."

Q: There have been some complaints from the real estate industry that the media is not fair in its coverage of the housing crisis. How can the media assist the association and the public in terms of reporting about the crisis and other housing issues?

A: Another goal for our association is to increase, with the media, the relevance and importance of our association and members. We are meeting with reporters and media sources to help them understand the importance of reporting accurate information. We are meeting with them to show that there are great opportunities coming out of the challenges we face. Now I know that good news simply does not sell, but I believe that being responsible and reporting the good news is going to go far with the readers, viewers and listeners. All media can help by contacting our association for the facts and reliable, accurate information prior to presenting a story.

Q: The Obama administration's "Homeowner Affordability and Stability Plan" rolled out in March. The $275 Billion Plan includes:

• A refinancing program for "responsible" borrowers who haven't missed payments and whose loans are larger than the value of their homes.

• A loan modification provision with incentives for lenders to modify certain mortgages.

• A change to bankruptcy rules to allow judicial mortgage modifications designed to reduce mortgage balances to fair market value.

How will these provisions play in Silicon Valley?

A: We must wait after the details are announced to determine the impact. Preliminary information reveals many of our homeowners may not qualify for help offered by the plan. Additional help eventually may be included for our higher cost area.

The reduction of mortgage balances by bankruptcy judges is a bad plan, one that will further hurt the recovery of the housing sector and stall the lending crisis. Lenders will have to factor this possibility into the price we pay for money, thereby raising interest rates to cover the potential losses incurred by the write downs. It's just a bad plan at the worst time.

One way everyone could be helped would be by allowing everyone to modify the terms of their loans to a 4 percent interest rate. If that does not help our economy, then I'm confused. If every homeowner could reduce their mortgage payments across the board, I think the money saved on mortgage payments would show up in consumer purchases.

Q: What advice do you think home sellers need most in the current housing market?

A: First, if you do not have to sell your home, don't! Now is not the time to test the market. Second, get accurate information from a reliable Realtor about what the market is saying. Remember, Realtors do not set the price at which your home will sell. The market does. Finally, be realistic when you price you home. Properly priced properties will sell quickly.

Q: What advice do you think home buyers need most in the current housing market?

A: You make your money when you buy your house. Buy right. Remember buying a home is a long term investment and, more importantly, buying a home is creating an asset that will grow over time. Take advantage of getting the lowest interest rate possible. That's the true cost of owning a home. With the current inventory levels, the right home is out there. Be sure to get professional help from a Realtor.

Q: What advice do you think homeowners most need in the current housing market?

A: Real estate is cyclical, and appreciation will return. If possible, pay down the principal balance on your existing mortgage and improve your equity position. Pay attention to what is going on in your neighborhood, and stay informed. Call your Realtor for reliable, accurate information. They'll be glad to help.

Q: Are there any comments you'd like to make to your constituency, consumers or the public at large?

A: I would encourage everyone to get involved. There's a lot going on in our community and, now more than ever, we need everyone to be pushing in the same direction.


© 2008 DeadlineNews.Com

Advertise on DeadlineNews.Com

Shop DeadlineNews.Com

Get news that really hits home for your Web site or blog from DeadlineNews.Com.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the Deadline Newsroom, DeadlineNews.Com's news back shop. Perkins is also a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!

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