Volume 115 - A Very Scary Tale! - October 21, 2009

What's New?

Halloween is just around the corner and things are beginning to look frightening. Graveyards are popping up all over Piedmont and the ghosts are flying on Dracena Avenue once again. My younger son, Tristan, loves this time of year (What kid doesn't? Costumes and candycorn? Seriously, it's a winning combination - even for me). Unlike my sister's darling daughters who tend to dress as flappers or Dorothy from the Wizard of Oz,no saccharin cartoon character costumes will do for him. If it doesn't involve a medieval weapon, a black hooded cape and a scary mask, Tristan's just not interested.


Recently, I had quite a scare when I called my local mortgage broker, Melissa Milton of LaSalle Financial, and asked her to do a credit check on me! Like many of you, I am keeping my options open and wanted to know: "Would I qualify for a loan in this "more conservative lending climate" - OR did I have some heavy housework ahead with respect to my "credit worthiness?"

While I never miss a mortgage payment, in the interest of full disclosure, I have to admit that I am occasionally tardy on the PG&E bill and there was that one accidental overdraft last year . . . so I was legitimately worried. In the absence of any real knowledge, I had forecast all kinds of spooky scenarios!

This is where fear and denial walk hand-in-hand. For the last few years, I had been putting off obtaining a credit review even though I believe it's the smarter choice - especially now. Still, I imagined the grim reaper delivering the bad news (not that Melissa's the grim reaper. She's more like Glenda, the good witch).

Would I be heavily penalized for my few brief lapses in time? Would my husband? Truth be told, I really had no clue. Invoices come in and payments go out (typically in a timely fashion) but how do I stack up where it really counts?

No, not St. Peter (I'm hoping Heaven's gates are more forgiving) I'm talking about the big three credit bureaus; I'm talkin' FICO SCORES!

So with courage in hand, I gave Melissa a call and guess what? After all that senseless worrying, I qualify as "good to excellent" and so does my husband (no sense in obtaining only half the equation). While neither of us is perfect (who is?) we are both in the UPPER range. Yoo hoo! (Credit scores, like SATs, range from a low of 300 to a high of 850.) Now that's just good to know. Turns out, knowledge is a powerful sleeping aid.

While a move isn't in my imminent future (college tuition is) perhaps, it is in yours. My advice is that you follow my lead, pick up the phone, obtain a credit history and line up your lending options BEFORE identifying the home of your dreams. Put your bank representative or your favorite mortgage broker to work for you. That's part of the service they provide.

IF there is a problem, any experienced mortgage broker worth her salt (or sugar) will help you navigate the hurdles and rectify any outstanding concerns. (This can involve a few letters or it can be more complicated but the sooner you have the information, the better off you'll be.) Whatever the outcome, it can't possibly be as scary as your imagination might lead you to believe!

Now break out the candycorn and let's bob for apples. Boo!

(Melissa Milton and the many other fine agents of LaSalle Financial can be reached at (510) 339-4300 or at www.lasallefinance.com )

I'd love to share my real estate tips and my experience in the Piedmont community with you! Feel free to visit my website at www.JulieGardner.com for more information as well.

The Piedmont Perspective, Vol 113 - Negotiation; It's A Brave New World! October 7, 2009

What's New?

"How much is this?" I asked the pretty antique vendor as I eyed the small Stoneware pitcher on her table at the Alameda Flea Market last Sunday. "Twenty-eight dollars," she politely answered. "Hmmm, can you do better?" I inquired as I carefully looked it over. "What were you thinking?" she said. "Eighteen?" I replied. "How about twenty-three?" she offered. "How about twenty?" I responded. "That's a hard size to find," she countered, "you'd pay much more for it in a shop." (very true) "I'll let it go for twenty-one."

This is when I PAUSE FOR DRAMATIC EFFECT. "OK, I'll take it," I said with a smile (certain I'd just gotten a very good deal). "Terrific," she said (knowing she'd made a few dollars on the sale). "Would you like that wrapped up?" "Yes, please and thank you."

Another successful and happy transaction!

Back and forth negotiation at the flea market isn't the exception, it's the norm! There's rarely a sale that doesn't engage in this banter before settling on a mutually satisfactory price. Buyers are looking for the "find" and sellers are interested in making a profit. It's the well-practiced give and take of human interaction. Not surprisingly, experienced vendors are far more likely to become truly competitive by the end of the day - then they are at the beginning.

I'm an early bird by nature and habit-up with the moon and at the front gate with the rest of the flea market junkies before the crack of dawn. For me, there's a significant trade-off. Experience has taught me that the best finds go early . . . the best deals; however, come late!

The same is true for real estate. Homes that are highly coveted, quickly sell for close to or above their asking price while homes that languish on the market for awhile, tend to get discounted over time. (If you are looking for the "deal," hone in on those properties that have been largely ignored. Those sellers are likely to be the most flexible as time goes on.) With dramatic changes in the marketplace over the last few years, buyers are quickly becoming much better versed in the concept of offering less than list. Indeed, buyers expect to negotiate on price!

Sellers, on the other hand, are still a bit slow to embrace this Brave New World and tend to object to a realignment of value. Unlike a few years ago, buyers are requesting time to fully inspect their purchase before removing ALL of their contingencies. While a buyer's initial offer price should, ideally, factor in any known defects, sometimes a buyer's inspection will disclose new discovery previously unavailable or perhaps, unknown which may give a buyer PAUSE before moving ahead.

When that happens, it may be reasonable to expect some push back from the buyers with respect to the costs associated with new discovery. Expect buyers to seek "to perfect" the deal. This can come in the form of credits to the buyer for the work required or a reevaluation of the purchase price altogether. Either way, it isn't personal - it's business. With some quantifiable discussion, you're very likely to find a middle ground that achieves the goal for both parties.

Whether negotiating with a flea market vendor, a colleague, an agent, a client (or a spouse) I find that the best transactions come with well-intentioned and reasonable give and take. When both sides have left the negotiation table having given and having gained what's truly important to them, you're much more likely to have a happy ending - even if something unexpected should come up after the close of escrow!

When it's a win-win for everyone involved, you can look forward to a happy and successful transaction!

(The Alamdea Flea Market takes place on the first Sunday of every month at the old naval base in Alameda. Start time: sun up!)

I'd love to share my real estate tips and my experience in the Piedmont community with you! Feel free to visit my website at www.JulieGardner.com for more information as well.