Tina To's Real Estate Blog

San Francisco is a multi-cultural city full of immigrants from all over the world.  Like many other Chinatown all over the world, the Chinatown at San Francisco is within a few minutes walk from downtown San Francisco where major headquarters and offices located.  This town is a major first stop from Chinese new immigrants to land.  Here they can speak Chinese, buy foods imported from all provinces of China and find a reasonable price logging.  It also has good public transport linked to different parts of City for their work.  No wonder the house price in San Francisco is comparatively speaking stable. Every year the 15th of August in Lunar Calendar is Mid-Autumn Festival.  This year it falls on today, September 12, 2011 that is one day after the 9/11.  In spite of the potential danger of going out on 9/11, lots and lots of people still enjoyed walking.

I feel very grateful that my son, unlike other teenagers, did not share the not so good American culture of “independence” and still willing to walk the fair together with me.  He enjoyed watching all different Chinese cultural stuff and volunteered helping to carry the “goodies” I bought.  I remember when I was at his age, 14, I did not have the concept of going out with parents is shameful or sign of independence.  The big issue in the American education is lack of moral training.  I can understand this might be difficult of USA is the mixing pot and people from different cultures barely mixed like salad.  However, there are some special moral concept about relationship between parents and children from China that categorize that children should pay special respect to parents and elderly.  I have followed this concept and I never talked back to my parents even though I did not agree to their points of view sometimes.

Putting on my hat of “realtor”, it is truly amazing how the real estate price had been supported by streams of new immigrants.  I have many clients who literally shipped their money from China to buy real estate properties in San Francisco and nearby cities.  No wonder, the house price at the Sunset district of San Francisco seems have not dropped much, maximum 20% which is nothing in comparison with other places.

Thank you for checking in with my blog and feel free to contact me if you have any real estate needs or opinions about this blog.

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The tuition fee for overseas student at the public or private universities could range 3 to 10 times of the local students with American identity.  However, if these overseas student gain  their local identity by becoming an investor immigrant, the fee they saved for those 4 years tuition could be as much as their minimum investment amount which is $500,000 easily.  Worth it or not?

Let us take a look.  The immigration attorneys typically will charge 10% of the total investment which maybe justified as they have to follow up with the process for up to 3 year long.  However, looking at the current real estate market, many properties had fallen to the 2000 level.  Again this have to be dependent on the location.

Lafayette is a  prestigous district that is only half an hour drive from UC Berkeley.  The medium price of Lafayette has dropped 23% from the year of 2006.  In the year 2006, the medium price is $16,141,000 and in the year 2011, the medium price is $1,240,000 and the lowest possible sold price is $820,000 which is never possible to find in the year 2006.

Overseas investors:  maybe this is your golden chance to invest in America NOW.

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It is too easy to feel blue, down, discouraged and think in a negative way.  Whenever this is going to happen to me, I will turn myself to my “Happy Diary” .  I would brainstorm everything that I should feel happy about and write them down.

Here are a few things that I can easily think of.  Let me give you an example of today.

1.  It is a sunny day with clear sky, blue sky, white cloud.

2.  I have more clothes that I need whenever I open my closet, how rich am I.

3.  My kids are growing and they are healthy.

4.  I spare some time practice “Tai Chi”.

5.  I really look at least 10 years younger and I feel at least 20 years younger.

How about you?  What is your today’s happy diary?

I am a “happy” real estate agent who can help you move into a happy home.  Please feel free to visit or contact me.

Thank you for checking in.

If you have a child at 8th grade like I do, you should be busy helping your child to enter his appropriate high school.  Most parents like myself have already got some help from the school counsellor or teachers or administrators of your child’s current school.  Having made a mistake with my elder son in choosing his high school, this time, I am spending more time to do my research.  Usually we (my son and I) can check schools through 3 ways:

1.  To check the websites of different schools

2.  To go to the school Open House

3.  Shadowing – shadowing means let your child shadow one student of the high school and join all the daily school regular activities including attending classes, go to recess, taking lunch etc.

There are basically 3 types of schools that all parents should consider.

1.  Public school – in San Francisco, Lowell High School ranks academically way higher than all other public school and will only consider straight A students application in their first round of “lottery” and then open to the second round of lottery which will include students from ALL – basically giving chance to those “handicapped” financially, academically, socially, racially.   There are also other highly favored public school boosted by their good academic results or other specialties.  For example, School of the Arts hold a very high Arts standard requirement beside academic results.  All candidates has to passed their board of examiners to study their chosen Arts area.  If your child plays piano very well and choose piano as their arts subject, then your child has to play one prepared piece (by memory) and then another piece by sight but was given by the examiner with no advance preparations allowed.  I have more insight of School of the Arts because my elder boy is graduated from there last year.

2.  Charter Schools – Charter Schools are public schools but have an independent administrative power to run their school in their own ways.  It is like an experimental school and usually starts from a small one.  For example, my younger boy’s current school , Rooftop, can also be considered as a Charter but it is named as alternative.  It is different from other public school in many ways.  First, the size is very small.  Each grade only has 60 students and at kindergarten and elementary level, each class has 20 students.  The students come from every where throughout San Francisco.  In addition to “standard” academic subjects, there are gardening, sensory motors and many different arts which usually integrated into the academic subject as well.  Rooftop originally starts from the roof only.  The recent Hot charter school is Gateway High School.  This year, Gateway also introduce its middle school.  However, if you are interested please check www.gatewayhigh.org.

3.  Private school

Each student can apply separately public school, charter school and private school.  In this way, your child will have at least 3 choices.  For me and my son we are still in the process of investigating different public and charter schools.  We have opted out private school for financial reasons.  Although there are scholarships or grants could be applied for students who like to attend private schools, I would not like my son to feel inferior.  By looking at the questionaires of the private schools and also Gateway High School, I feel that my son is not applying school, instead he is more like applying a very important job in the adult world.  The way both Toby and I interpretate the question is how can Toby and I contribute to Gateway so they may consider accept Toby.  What is good about Toby so that Gateway should take him as his student.  It sounds so ridiculous.  Also I do not believe the so called “lottery system”.  Lottery is just an excuse for the school to turn down one particular student’s application.

Schools play an extremely important role in the house price when the enrollment is giving priority to local residents but this had been slightly changed in the past few years.  I am a full time real estate agent and truly understand how the parent feel and will do for their children.  If you have any questions regarding schools or real estate, please contact me so that we can discuss.

Thank you for checking in.

Tina To

Image by Getty Images via @daylife

REO  is the short form for Real Estate Owned.  The real meaning is the lenders, usually the banks, have taken over the properties and are actually owners of the properties.  When the properties put up to the market for sale, the lenders/banks had already come up to an agree upon for sale price so usually if the buyers offer the asking price, it will be approved.  However, some lenders/banks will still listen to the sale experts marketing strategy, i.e. to ask for a ridiculously low price to encourage strong competition and thus beat up the sold price.  Anyway, the buyers involved usually can close the escrow within a reasonable time like a normal sale.

Short Sale means even after the sold price of the property is still too short to pay the mortgage.  In this case, the individuals are still owners of the properties and not the lenders.  However, since the homeowners cannot bring additional money to pay back to the bank/lenders, the sold price has to be approved by the lenders.  Since in this case, it is the homeowners who initiated to sell the property to avoid foreclosure, the lenders/banks involved had not yet came up to an agreed upon price prior to the property put for sale in the market, every offer has to be reviewed by the lenders/banks involved.  Thus it usually takes a much longer time for closing.

I was inspired by reading the book “Journey of a Thousand Miles: My story” by Lang Lang.  I read this in Chinese version.

For those who are not interested in music, particularly piano, may not know who is Lang Lang.  Lang Lang is the youngest famous pianist in this century so far.  I am not going to summarized his story because you can check it out from his book by which I believe should be the English version and/or should be the original.

Lang Lang won the first place as young as 5 years old.  After he watched the cartoon “Jerry and Tom”, he could replay the background music when he was only 3 years old.  Before he could read words, he could read notes.  He was recognized and had been set a goal as “the great pianist” as young as he was 3 years old.  I said set the goal because this goal was not set by him but by his parents.  His parents had sacrificed a lot to help him to reach where he is now.  Aged 9, Lang Lang left his mother and moved to Beijing together with his father.  His mother had to stay at work in Sheng Yang to support them financially.  In order for Lang Lang to be further trained and reach his parents? Lang Lang’s? goal, Lang Lang’s father became Lang Lang’s full time supervisor – to supervise and gaurantee Lang Lang had practised to his maximum ability and strength.  Lang Lang had practised mimumum 7 hours daily, 7 days a week since childhood.  All Lang Lang has is piano practice and nothing else. 

Lang Lang is very talented but unfortunately to say, Chinese has too much political reasons to restrain his growth and development.  Lang Lang’s father finally took Lang Lang to USA and Lang Lang’s talents and efforts had successfully earn himself the scholorship into the famous Musical Institute at Philapdelphia.  He later became very successful and recognized by the world.  HOWEVER, WHEN HE WANTED TO RETURN CHINA TO PERFORM, HE HAD BEEN VIGOROUSLY REFUSED TO DO SO.  The reason is he had not earned enough competitions and was not famous in China.  In China, an artist’s role has to be realized by the number of  trophy that artist has. !!!

The real reason:  Lang Lang is not from a rich family.  He does not has any Chinese official to back him up.  In the strong sea of competition, not only in piano, or in music but in all areas, athelets and other competitors may be pre-selected already.  If Chairman X’s son has certain talent, the selective board should make him the first place and if only the first place can join the international competition, then he has to be the one and try all the streams to block other OSTACLE “Lang Lang” OUT.  As throughout this book, you will see Lang Lang had met many people (all are Chinese, a few even his teachers)  said “Lang Lang, for sure you will not win!”  trying to down put him, making him not to win.

I, myself, am Chinese but fortunately I was born and raised in Hong Kong.  I could not say that I have the best education, but I have the freedom to speak, to think and to act.  I bet Lang Lang, in some way, is quite disappointed with his ‘MOTHER” – China because only recently his talent and achievements were recognized.  China, actually, has the resources and abilities to help Lang Lang to achieve what he acheives today, but refused to do so despite Lang Lang and his father’s vigorous efforts.  I feel shame on this and the pain is, this has not ceased yet.

China has literally abandoned Lang Lang in his early years.  On the other hand, it is America who saved him and allowed him to be what he is.  This is many Chinese’s American dream and this is also many immigrant’s dream.

You cannot control the length of your life, but you can “widen” it.

You cannot control the weather, but you can control how you feel. – Some people feel sad because it rains and they cannot go out.  Some people feel good because it rains and they can enjoy their home more.  Who are you?

You cannot change how you look (to certain extent) but you can always smile.

You cannot change others but you can change yourself.

You cannot predict tomorrow but you can make good use of today.

You cannot win everything but you can always try your very best.

Here is my client’s question:

I love the property but after I have spent $500 for the home inspection, I find out that I need to at least spend $30,000 in order to be able to move into it.  So I asked the seller to lower $30,000 so that I can reserve $30,000 from my downpayment to pay for the immediate repair.  But the seller refused to do so and I still like the property, what should I do?

If you were her, what would you do?

1.  Back out from the contract if there is no penalty incur.

2.  Ask less from the seller, instead of $30,000, ask for lowering of $15,000.

What is the difference between active, contingent and pending listings?

When a property put up on the market for sale, we call it an active listing meaning the seller is actively looking for buyers.

When sellers and buyers get into a written contract with an agreed price and terms and escrow has been opened, the status of the active listing will be changed into contingent.  At this point, there are still at least one condition that allow the buyer or seller to cancel the contract without paying any penalty.

However, if every term has been settled and it is only a matter of waiting for the funding to arrive (usually from the lender) or waiting for the seller to move out (when on the contract stated that the property has to be delivered vacant), or something else need to be done, then the contingent property is changed into pending.  Once the property is at a pening status, anybody who wants to back out or cancel the contract will incur some fee to pay.  Usually, it will be the initial deposit up to 3% of the total purchase price unless otherwise stated.

Many consumers may already aware that on top of the “old” homebuyer tax credit, there is the new “$10,000″ award for California homebuyers.  However, I always encountered my clients ask the following questions that  I think you may like to know as well.

1.  MY FRIEND HAS JUST PURCHASED A HOUSE IN CALIFORNIA BUT S/HE CAN ONLY GET $7,000 CREDIT AND NOT $8,000 CREDIT, WHAT COULD BE THE REASON?

Answer:  Your friend must have fulfilled all criterior for the first time homebuyer’s credit such as purchasing his/her first home as principal resident.  However, I bet the house price has not exceed $700,000 because the amount of tax credit is 10% of purchase price not to exceed $8,000 for First-Time Homebuyers or $6,500 for Long-Term Residents.

2.  MY FRIEND IS A FIRST TIME HOMEBUYER BUT IS REJECTED TO RECEIVE ANY FIRST TIME HOMEBUYER TAX CREDIT, WHY?

Answer:  If your friend earns over $145,000 per year as single or $245,000 as joint tax filers, s/he is not entitled to such credits.

3.  I WANTED TO BUY A HOUSE NOW BUT WOULD IT BE BETTER IF I WAIT UNTIL MAY SO THAT I CAN GET THE NEW CALIFORNIA TAX CREDIT?

Answer:  That will be your choice.  If you enter a written binding contract by April 30,2010 and close it before June 30, 2010, you will be able to get 10% of purchase price not to exceed $8,000 as a First Time Homebuyer or $6,500 for Long-Term Residents.  However, if you wait until May 1, 2010 to enter into a written binding contract, you will be eligible to 5% of purchase price, not to exceed $10,000.  You may consider this depend on the purchase price of your property.  Of course, you will have to fullfill all other criteria. 

4.  CAN YOU TELL ME MORE ABOUT THE ‘NEW’ HOMEBUYER TAX CREDIT?

Answer:  The new California law offers up to $10,000 for firsttime homebuyers or buyers of properties that have never been occupied.  Here is the summary:

Amount of Tax Credit:   5% of purchase price, not to exceed $10,000

Date of purchase:  From May 1, 2010 to July 31, 2011, but an enforceale contract must be executed by December 31, 2010.

Principal Residence:  Yes

Type f Property:  Single-family residence

Eligibility:  First-Time Homebuyer.  Up to $10,000 if the buyer (or buyer’s spouse if any) has not owned a principal residence during the three-year period before date of purchase. Or Never-Occupied Property: Up to $10,000 for a principal residence if the property has never been previously occupied as certified by the seller.

Income Restriction:  No

Maximum Purchase Price:  Not applicable

Repayment:  No repayment required if the buyer owns and occupies the property for at least 2 years immediately following the purchase.

Multiple Buyers (not married to each other):  Tax credit must be allocated between eligible taxpayers based on their percentage of ownership.

Maximum Credit for all taxpayers:  $100 million for first-time homebuyers and $100 million for never-occupied properties, both on a first-come first-served basis.  (It means it will fade out if a lot of new homebuyers applied and awarded).

When to Claim:  1/3 of total tax credit may be claimed each year for 3 successive years.

How to File:  Submit application to the FTB to obtain Certificate of Allocation.  The FTB may prescribe additonal rules and procedures to carry out this law.

Other Restrictions:  Cannot be an acquisition from related persons as defined; buyer or spouse must be 18 years old; buyer cannot be another taxpayer’s dependent; credit is allowed for only one qualified principal residence, and credit allowed cannot be a business credit under Cal. Tax & Rev. Code 17039.2

More Information:  FTB web site at http://www.ftb.ca.gov/individuals/New Home Credits.html.

5. WHO MAY BENEFIT THE MOST FROM THIS NEW HOMEBUYER TAX CREDIT?

Answer:  In my opinion, if you are the California taxpayers who earns more than $145,000 per year and is interested to buy a never-occupied single family house in CALIFORNIA, this might be your only chance to earn this NEW credit.

6. I LIKE NEWER HOME BUT WITH THE CURRENT AVAILABLE MARKET PRICE IN THE AREA I LIKE, I CAN ONLY AFFORD TO BUY CONDOMINIUM OR TOWNHOUSE, WHAT IS YOUR ADVICE?

Answer: Well, in that case, you should hurry because under the OLD tax credit regulations, not only Single Family Houses, but condominium, townhouse, manufactured home, apartment cooperative, houseboat, housetrailer, or other type of property located in the U.S. are all included.

7.  I SOLD MY PRINCIPAL RESIDENTS LAST YEAR, CAN I STILL BE ELGIBLE TO GET THE TAX CREDIT IF I BUY NOW?

Answer:  Again, you have to hurry too.  If you have lived in your previous house for 5 years out of the last 8 years, you are classified as Long-Time Resident and can get up to a maximum of $6,500 credit under the OLD homebuyer credit application.

8.  WILL I GET CASH FROM THE TAX CREDIT I APPLIED?

Answer:  YES under the OLD CREDIT.  Any amount of the tax credit not used to reduce the tax owed may be added to the taxpayer’s tax refund check. 

No under the NEW CALIFORNIA CREDIT

Sources:  http://www.car.org/legal/legal-questions-answers/2010

Thank you for your visit and please let me know if you want to receive a summary of the comparison of the old and new homebuyer’s credit.