Patty Manzi’s Tri-Valley Real Estate Blog

I’m often asked the question:  Why should I use a real estate agent to purchase a brand new home?

The advantages of having an agent help you purchase a newly constructed home are the same as those for purchasing a resale home…..knowledge of the market, help in finding the perfect home quickly, expertise in contract writing/negotiation, and closing assistance.  The builder has a professional representative watching our for his needs, and you need the same expert representation.

Buying a new home is a little more difficult and time-consuming that buying resale.  A real estate agent can professionally guide you through this process.  A real estate agent has experience working with builders, and can help you research loan programs that will best suit you.  A real estate agent  can also guide you through the  new home warranties and builders purchase contracts. 

It is very important that your interests be professionally represented when you are entering into a contract for a semi-custom, or build-to-suit home.  These transactions are complex and the contract details must be exact in order to protect you and to ensure you get exactly the home you want!

Is there any advantage to not using an Agent to purchase an brand new home?  NO!

Think of planning a trip around the world without the help of a travel agent, or buying insurance for your car without an insurance agent.  What if you were the  executive of a major corporation involved in a legal dispute, would you represent yourself in court?  If you depend on people in the service industry for travel needs, insurance claims for a car accident, or handling legal affairs, then why would you want to represent yourself in the most expensive and probably the most important purchase of your lifetime – your new home?

It is a common misconception that buying a home directly from the builder, without the help of an Agent, will save you money.  There is no financial advantage for you to buy directly from the builder.  Builders, for the most part, have a ’single-price’ policy, meaning you will be charged the same price whether your interests are represented by an Agent or not.  Just as in resale, the Seller pays your Agent’s fee.

REMEMBER though, the Builder requires that your Agent accompany you on your first visit to the Builder’s sales office, or they will NOT PAY your representative’s fee.

When you are considering purchasing a brand new home, there are several questions you should ask before you commit to the purchase:

• Is this a good builder?
• Does this builder have a solid reputation?
• How many years has this builder been in business?
• How does the quality of this builders product compare to that of other builders?
• What are the existing inventories of the various builders?
• How do the builders models meet your needs (floor plan, square footage, location)?
• If I should sell in a few years, what upgrades are available now that I can include to be competitive?

Your Agent will be able to help you research many of these question and it is well worth the time to do so.  Taking these precautions will help to assure you the best service and expertise in making this important decision.

As of today, July 10, 2009 there are 232 Active listings on the Multiple Listing Service (MLS) in Pleasanton.

 There are 159 Pending sales (58 of which are Pending Subject to Lender Approval as they are a Short Sale/Potential Short Sale). 

 From the period of July 1 – July 10, 2009, there were 16 Closed sales (escrow closed) with an average time of 42 Days on Market (DOM).

 The lowest priced home in Pleasanton is at 4614 Cochise Court; it is a 2 Bedroom/1 ½  Bathroom, approx. 988 sq.ft. Townhouse offered at $255,000 (DOM 106). 

 The highest priced home in Pleasanton is at 3040 West Ruby Hills Drive; it is a 7 Bedroom/9.5 Bath, 6-car garage home, approx. 14,586 sq.ft. Single-Family residence offered at $10,000,00 (DOM 71).

As a California licensed real estate Broker I am constantly researching the market and analyzing home prices so I can serve you with the latest and most accurate information. As always, I offer my services to you as your neighborhood real estate specialist.  For more information, contact me, or visit my website at:  www.PattyManzi.com.

With the new year rapidly approaching, now is a good time to remind you that each year you are eligible to receive a FREE copy of your consumer credit report from each of the three major credit bureaus.  TransUnion, Experian, and Equifax will provide these to you at NO CHARGE. 

Go to www.AnnualCreditReport.com to obtain your FREE reports.  There is no credit card information required on this site to obtain your reports.  There are other sites out there that say they are free, but they will ask for credit card information before giving you access to your information.  All sites will offer access to Credit Scores, and there is usually always a fee for that report.

You will have the opportunity to download all three credit bureau reports at once, or you can download one (of your choice), and revisit the site at a later time to download another.  Some credit professionals suggest downloading one every 4 months to keep an eye on changes throughout the year.  Whichever method you choose, this is a valuable tool!

In some cases, if the system is unable to identify you online, you may be required to order your report via phone or mail.  If this happens to you, simply follow the online instructions for obtaining the phone number, or the appropriate form to download and mail.  You will receive your credit report in the mail, usually within 2 weeks.

You can also download forms to correct errors, dispute incorrect information, and/or remove outdated information. 

Hope you found this information useful!

Loan Modification Program kicks in: On Monday (12/15), the Streamlined Loan Modification Program (SLMP) policies regarding loan modifications and foreclosure prevention became effective. The new policies apply to mortgages held by Fannie Mae, Freddie Mac and privately-held securities.

According to the Federal Housing Finance Agency eligible borrowers must meet the following criteria:

• They must be owner-occupants;
• They have missed three or more payments;
• Have not filed bankruptcy;
• Have experienced a hardship or change in financial circumstances, and
• Have not purposely defaulted to obtain a modification.

You can get more detailed information at www.hopenow.com, orwww.hud.gov

As of December 19th, CalHFA suspended the following active CalHFA First Mortgage Fixed Rate Loan Programs and Down Payment Assistance Programs:

• 30-year fixed mortgage products, including Moderate Income, Low Income, Non-Profits & Affordable Housing Partnership Programs (AHPP), Extra Credit Teacher Programs (ECTP)
• California Homebuyer’s Down Payment Assistance Program (CHDAP)
• Extra Credit Teacher Program (ECTP)
• School Facility Fee Down Payment Assistance Program (SFF)

These programs are being temporarily suspended as a result of the action taken by the Pooled Money Investment Board (PMIB) on December 17, 2008.  The PMIB loans money to state agencies to advance program funds which will later be repaid through bond issuances .  CalHFA uses a PMIB loan to initially fund its Conventional 30-year fixed mortgage and down payment assistance programs.  The recent PMIB action froze all such PMIB loans.  It is anticipated that this freeze will continue until the state budget crisis is resolved.

CalHFA will continue to accept reservations for loans under the Community Stabilization Home Loan Program (CSHLP) and SMART Loan Program.  However, please note that CHDAP funds will not be available for use with these programs.

(This information was taken from the California Housing Finance Agency’s Homeownership Program Bulletin dated December 19, 2008.)

For more detailed information, please visit www.calhfa.gov, or contact your favorite mortgage professional.  If you don’t have a favorite mortgage professional, contact me for a referral!

www.PattyManzi.com