Happy New Year!

We wish everyone a happy and healthy 2012.

Holiday Lights on Eucalyptus Street in San Carlos

We always drive down Eucalyptus Street in San Carlos as part of our Holiday tradition. Each home is decorated with so many lights and ornaments it is truly magical. If you haven't experienced it, you will not want to miss it!
It is becoming very popular and can get congested, so you may want to consider parking and strolling up the street. Perhaps stop and get a cup of coffee or hot chocolate to keep you warm. You won't be sorry!

Two Stories to Watch Heading Into the New Year

It's hard to believe that Thanksgiving has come and gone, and the holidays are fast approaching. The new year will be here before we know it, and as you are enjoying this season with your family and friends, it's important to keep an eye on the following stories. They could have a big impact on home loan rates in the year to come.

First, a Trip Overseas
Greece has certainly been a big word throughout 2011, as the country has experienced riots and protests due to their escalating budget crisis. The good news is that last month a deal was reached to keep the country from going into default. Greece's Prime Minister George Papandreou announced his resignation while Lucas Papademos was named as interim Prime Minister. During his eight years with Greece's Central Bank, Papademos helped the country achieve very strong economic growth rates.

And while that's good news for Greece, the European crisis that has been lingering for 18 months is not over yet. There is concern that Italy, whose Bonds yields have spiked, is the next Greece. It's important to note that Italy is not in the same dire situation as Greece. But, and this is an important but, their economy is far larger–the world's 7th largest, in fact–and a debt crisis in that region will be much more difficult to contain.

Last month, German leader Angela Merkel said that Europe is going through its toughest times since World War II. Her comments were in part a response to reports showing that a slowdown in manufacturing has reached the point where recession fears have now gripped that region.

The bottom line is that more pessimistic or uncertain news out of Europe could continue to benefit home loan rates here in the United States, as investors see our Bonds (including Mortgage Bonds, on which home loan rates are based) as a safe haven for their money. That's why this story is definitely one to keep watching.

Inflation, All We Never Wanted
Another important story to watch as we head into 2012 is inflation. Remember, inflation is the arch enemy of Bonds and home loan rates, like Kryptonite to Superman. The concept is very simple: If inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher.

Last month, Fed Chairman Ben Bernanke said that the Fed has "considerable latitude" to choose its long-term inflation goal. Although Bernanke didn't elaborate on specifics, the gist of his comment is that the Fed may tolerate higher inflation for a period of time in an attempt to help the economy recover and improve the employment sector.

Remember, the Fed is charged with a dual mandate of (1) controlling inflation as well as (2) supporting job creation. While inflation remains close to the Fed's target range, unemployment is nowhere near where the Fed would want to see it, which is between 5% and 6%. So it appears the Fed may make decisions in the future to improve employment, possibly at the slight expense to inflation.

The good news is that wholesale inflation in the form of the Producer Price Index (PPI) was tamer than expected in October. Meanwhile, the year-over-year headline Consumer Price Index (CPI) was down from the previous reading, which is good news for people concerned about inflation. However, the closely watched Core CPI rose by 0.1%, and though this was inline with estimates, it did push the year-over-year rate to 2.1% from 2%...a touch above the Fed's comfort zone.

The most important thing to remember is that whatever the news brings in the new year, now remains a wonderful time to purchase or refinance a home and take advantage of historically low rates. If you have any questions at all about your personal situation, contact

2011 San Carlos Holiday Happenings Guide

The San Carlos Chamber of Commerce has released their 2011 San Carlos Holiday Happenings Guide. It is a two-sided multi-fold brochure that lists Holiday events in San Carlos during the month of December 2011.

Review of the Clarke Team: Excellent.

Review: My mother-in-law interviewed a lot of different people and chose The Clarke Team. It turned out that they also were a client of our shop. I worked with Judy, who was wonderful. She was very detailed and straightforward, which was helpful to me because it was a difficult escrow and she let me handle part of it. The property sold, so everything worked out as expected.

George Huddleston

Reviewed By: George H.
Review Date: 24 Jan 2011
Reviewer Location: Burlingame, CA

Review of the Clarke Team: Patient and Determined. They helped us find our perfect home.

Review: This was our first experience with The Clarke Team and it was much better than I ever dreamed possible.

My husband and I had difficult parameters as far as what we wanted in a house and the price we wanted to pay. We were looking for different things in a home. The Clarke Team helped us find the house of our dreams, which encapsulated the qualities and features that we were both looking for in one house.

Not only did Judy Clarke accommodate a bimodal desire in homes, but she was also entirely positive throughout the process. She handled everything with gentleness and sweetness.

Working with The Clarke Team was an amazing experience. They are the best listeners in the world. They get you the house you want and they have fabulous attention to detail. This attention to detail can provide insight about potential home defects they see. My husband and I had not two but three pairs of discerning eyes to spot the flaws as well as the positive features of the homes we looked at.

The Clarke Team never lost patience or determination to assist us in finding our perfect home.

Marciana and Denis O'Halloran

Reviewed By: Marciana & Denis O.
Review Date: 20 Jan 2009

: A Little Knowledge Will Save You A Lot Of Time and Money

Is it a buyer’s or a seller’s market right now? The answer can turn on a dime and not all buyers are up-to-date with the latest information on market conditions. It almost goes without saying that it can also have serious financial impact on your situation.

As Realtors, it’s our job to track all of the elements that go into creating our current market – from interest rates to supply and demand, to which kinds of houses are selling quickly. Market conditions will often vary even from neighborhood to neighborhood, and knowing this information can put you in a much better position to find better deals and more promising investment opportunities.

We would like to offer you our services and help you find the dream home you are looking for.

The Clarke Team
Realtors
sold@clarketeam.com
650-489-5399

Review of the Clarke Team: Working with The Clarke Team was an amazing experience

Review: I am very lucky to work with The Clarke Team. Kelly is my sister in law. Judy and Kelly Clarke are both great and very knowledgeable.
Working with The Clarke Team was an amazing experience. They are the best listeners in the world. They get you the house you want and they have fabulous attention to detail. This attention to detail can provide insight about potential home defects they see. They easily spot the flaws as well as the positive features each home that I visited.
The Clarke Team never lost patience or determination to assist me in finding my perfect home.

Reviewed By: Josephine D.
Review Date: 23 Mar 2009
Reviewer Location: Redwood City, CA

Making the Most of Change

Buying and selling real estate is much different today than the way it used to be—and it’s not just the prices that have changed! From new ways to finance property to constantly changing laws that govern disclosures and the buying/selling process, innovation and change is the order of the day.

The role of Realtors has also changed. Today, in addition to finding our clients the best properties at the right prices, we also guide them through the entire home buying process as they move through the phases of finding the right home, making the offer, going through the inspections and closing the deal.

What’s still the same? Well, buyers still want to buy and sellers still want to sell. The goals never change—buying a home is still a fun, exciting process that yields deep emotional and economic rewards. Please don’t hesitate to give us a call or send us an e-mail.

The Clarke Team
Realtors
sold@clarketeam.com
650-489-5399

Review of the Clarke Team: The best decision I have made.

Review: This was my second time purchasing a home. Kelly and Judy made the transaction easy and smooth from beginning to end. We looked at homes with an open mind for sure and she gave me ideas along the way as to how to upgrade them. My budget was small and that meant not the best neighborhoods. She always researched the areas and made sure I new "There is a hospital and four way stop sign there. There are a lot of cars and apartments on this street" And when we found the gem she made sure It was the right choice. Comments like " There is a school 2 blocks away so we should drive by when it gets out to see how busy it is. There are nice well maintained homes and ample parking all around. It has been the best decision I have made to use the Clarke team in finding my Gem. Thank You.

Reviewed By: jessica l.
Review Date: 02 Apr 2009
Reviewer Location: Redwood City, CA

Review of the Clarke Team: All-around good experience: Quick, effective, and fun to work with.

Review: We decided to use The Clarke Team to sell our house because I knew Kelly from a previous business we had worked in together. I was confident in her personality and sales skills, and knew that she was a results person.

We challenged The Clarke Team a bit because we gave them a month to sell our house. However, they worked quickly and effectively to get things done. Within 4 days, they had an open house, and we received a full-price offer the following day.

They were incredibly organized, had a plan, and their communication was excellent. They managed the selling of our home like a project, setting our expectations in terms of what we needed to do and what we could expect.

The way that they interacted with us was very impressive, as we have had other agents that were not responsive and did not answer our questions. The Clarke Team also was fun to work with. They just get it -- all of the different aspects of the process, from the emotional to the financial/practical, that you are going through.

John Matterson

Reviewed By: John M.
Review Date: 12 Nov 2009
Reviewer Location: Vancouver, BC

Changes in the Market

The market sometimes changes in subtle ways that can affect home buying strategies. Sometimes a small shift can tip the market in favor of buyers, and other times towards sellers. Do you know where the market is right now, and are you confident that you will be able to get the best deal on your new home?

We have years of experience helping buyers like you discover the homes of their dreams. We can help you take advantage of market strategies and capitalize on opportunities that will unlock the door to your new home—with less stress and much more satisfaction.

Should you require the expertise of a professional Realtor, please don’t hesitate to call or e-mail us anytime.

The Clarke Team
Realtors
sold@clarketeam.com
650-489-5399

Review of the Clarke Team: A dedicated, professional team with high integrity.

Review: I had a property in Half Moon Bay, and it was going to a family that had 4 or 5 brothers and sisters that were fighting among themselves. The land that was going was not expensive. I was surprised to see The Clarke Team go through so much trouble even though there was not much money involved.

Everything was done professionally to make sure that I would not have any issues later on because the brothers were disagreeing. I personally felt bad for having them do so much work for not much money.

Judy and Kelly really work as a team. They are involved in many meetings, and if one was not available the other one would always help. They were always in touch and available to help.

Reviewed By: Wilson S.
Review Date: 07 Jul 2010
Reviewer Location: San Mateo, CA

Happy Halloween!

We all remember dressing up as our favorite superhero, fantasy idol or wild animal for Halloween and canvassing the neighborhood for goodies while either saving the world, escaping from it—or eating it all in one sitting!

Today in many ways we're still on the lookout—not for sweets anymore, but to help people overcome obstacles, find the castles of their dreams and discover hidden treats using our X-ray vision. Well, we don’t really have X-ray vision, but we do have an incredible eye for opportunities!

So if you know of anyone who needs a Realtor who can leap tall buildings in a single bound, please don’t hesitate to mention us.

The Clarke Team
Realtors
sold@clarketeam.com
650-489-5399

Avoid Financing Pitfalls

To help you get the best deal on your home loan, here are a few of the major pitfalls that you should know when beginning the process of getting pre-approved:

Beware of advertised loans with incredibly low interest rates. Your loan rate is critical, but many lenders use “bait and switch” tactics or they fail to reveal that these kinds of loans usually have increased up-front costs.
Go with a local lender. Our market is unique, and out-of-town lenders don’t always understand its nuances. If they are inexperienced with lending against the type of property you buy, you may not get the most favorable rate. Other brokers often fail to get the loans placed because they don’t understand which lenders will loan against which types of property.
Go with an experienced loan professional. There are scores of new mortgage brokers and loan representatives in the market right now and not all of them have adequate oversight. An inexperienced mortgage professional can kill your deal through mismanaged paperwork and delays in escrow. They also don’t always know where to go for the best rates.

Please call us if you need a recommendation about which mortgage broker or lender is the best one for your situation. We can provide you with excellent contacts that have proven track records and satisfied customers. That way you will be able to take this very important step with confidence—and enjoy greater peace of mind.

The Clarke Team
Realtors
sold@clarketeam.com
650-489-5399

Review of the Clarke Team: They made selling my home in a difficult market a rather pleasant experience.

Review: The Clarke Team was very professional and had very timely communication. They were very thorough. They came up with some good ideas for marketing my property.

Reviewed By: Tim M.
Review Date: 27 Aug 2010
Reviewer Location: Redwood City, CA

Review of the Clarke Team: A perfect experience.

Review: The Clarke Team was recommended to us. When my husband and I were looking to sell our house, we met with them. They knew a lot about the area and provided my husband with information before he had to ask for it.

My husband and I had different agendas: I wanted to take the selling process slowly and he was on a quicker time frame. They were sensitive to both of us, very respectful and accommodating. It was a great process.

We were lucky to work with The Clarke Team. Judy and Kelly Clarke are both great and very knowledgeable. They were always on the ball.


Reviewed By: Lainee & Leonard E.
Review Date: 27 Jan 2009

Fall Colors Herald Change

It seems that summer came and went in the blink of an eye –

This is a great time to begin preparations for winter before the first big storms roll in. Are your gutters clean and drainpipes unobstructed? Have you had your furnace or heater checked? It is also time to winterize your garden and make sure your sensitive plants are protected from the weather.

The market also has surprises in store this time of year. We’d be happy to update you on what’s moving and share trends or information about the current conditions. Just give us a call if you’d like to know more, or if you need advice with getting your home ready for winter.

The Clarke Team
Realtors
sold@clarketeam.com
650-489-5399

Review of the Clarke Team: The Clarke Team is highly professional and attentive to their clients.

Review: I recently sold my house, and The Clarke Team was with me from start to finish. They are highly professional, and my home sold quickly.

We had a difficult buyer, and The Clarke Team worked with the issues without exposing us to them at all. We did not have to deal with anything because they did it all on their end.

Judy and Kelly were very organized and complete in their service. They guided us through the entire process every step of the way. They prepared my home so well that it was voted best of tour.

The Clarke Team was highly attentive. Even after the home sold they had open houses to prepare for any contingency. They were always thinking of backup plans.

Reviewed By: Deborah S.
Review Date: 09 Jul 2010
Reviewer Location: San Francisco, CA

Curb Appeal 101

First impressions count in real estate! To get a better idea what kind of face your home presents to a potential buyer, walk outside and up to your front door. How does the front of your home look? Is your front yard neat and tidy? Are your gutters and paint in tip-top shape?

This objective look at your home can let you “see” it through the eyes of buyers. If your home makes a positive first impression a buyer will immediately be drawn in and want to know more. Visual appearance can make the difference between attracting big traffic—or feeling like you’re in a ghost town.

Buyers’ interest will increase when they see an attractive yard and tidy landscaping. Garbage of any kind is a no-no, as are parked cars, RVs, boats, and piles of “stuff” that can ward off all but the most resolute buyers. Trimming your trees and shrubs will allow for a better view from the street, and of course, mowing the lawn and sweeping the entryway will help to make an impact as well.

Simply paying attention to small details like these will help you market your home for top dollar. I can help you discover even more proven techniques to get your home noticed and get you the results you want. Please give us a call or send us an e-mail if you’d like to learn more about how we can help you move your home.

The Clarke Team
Realtors
sold@clarketeam.com
650-489-5399

Review of the Clarke Team: The Clarke Team was very efficient and very informative.

Review: The Clarke Team was very efficient and very informative. They were thorough and extensive in checking on things and keeping me up-to-date. They were both very personable.

The Clarke Team kept me abreast of the schedule and things that needed to be done. They were especially good at checking-in frequently and keeping track of the status of items. They made sure they were looking out for my interests. I appreciated the fact that they kept track of all the various steps throughout the process. I would highly recommend them.

Reviewed By: Jerry S.
Review Date: 14 Jul 2010
Reviewer Location: Belmont, CA

Avoiding Typical Mistakes

Sometimes homebuyers take on the project of finding the home they like without knowing exactly what they need or want. This can make for a random and frustrating search that often unnecessarily wastes time. On occasion, some people think they can even outsmart sellers while negotiating the purchase price, while in reality they might be getting a worse deal altogether.

We’ve compiled a short list of the most common mistakes homebuyers tend to make. They are:

Viewing all of the homes that become available, instead of focusing on the ones that are in their price range
Not knowing about all available financing options
Not completely understanding the subtle art of negotiating price
Over or under-estimating the actual value of specific home amenities
Choosing inspectors who may not be fully qualified
Not requesting all of the appropriate inspections to be made
Failing to consider all aspects pertaining to the new home, including the location (and reputation) of schools and other services
Falling prey to exorbitant fees and outrageous rates
Falling for the belief that bigger is better, thereby putting oneself in a precarious situation and buying the largest or most expensive property

Our job is to guide you through the process and help you identify pitfalls and opportunities. We can take the element of surprise out of the equation and put you in a stronger position so you can make an informed decision.

So don’t take chances and run the risk of making a costly mistake. Call or e-mail us anytime and let me help you find the home of your dreams.

Kelly Clarke
Realtor
The Clarke Team
sold@clarketeam.com
650-489-5399

Review of the Clarke Team: Judy and Kelly Clarke of The Clarke Team are the best of the best.

Review: My experience working with The Clarke Team was a fantastic experience. Judy and Kelly are truly exceptional. These two are the most professional, personable and down-to-earth real estate agents there are. I can't say enough good things about them. They have great customer skills, integrity and are just plain easy to get along with. They were on our side the entire way. This process was never about them closing a deal, it was always about our best interests remaining at the forefront. They totally exceeded my expectations.

Reviewed By: Dawn C.
Review Date: 15 Feb 2011
Reviewer Location: San Carlos, CA

Happy first day of Fall!

I can't believe that summer is over. We had a late one this year and it seems like the weather just started getting warm and now it is officially Fall! The kids had to go back to school in mid-August. The summers are getting shorter and shorter, but Fall is my favorite time of year.
It felt strange buying school supplies in August and seeing Christmas decorations for sale in the stores! That's far too early for me. Instead of being able to relax and enjoy the start of school, then Halloween and Thanksgiving, I feel stress and pressure as Christmas is approaching. Sigh.
When the kids were younger, we used to turn our garage into a haunted house for Halloween. We would start in September and work all month to decorate it. It was a big hit. Word spread and one year we had 600 people come through on Halloween! It was a lot of work, but also a lot of fun. What great memories! I love how San Carlos has a small town, close knit community feel for the holidays. We no longer have a haunted house, but others do. And what can compare to Eucalyptus at Christmastime? We live in a wonderful city!
Let's all make an effort to relax, enjoy and appreciate it!

Review of the Clarke Team: Very responsive.

Review: The Clarke Team was really good. They were very responsive, and they knew how to tailor everything to my needs. They provided enough information to help me sort out what I needed to make a decision and gave me enough help in different ways, such as websites and posting. I really enjoyed the whole selection making process.

Reviewed By: Chu C.
Review Date: 19 Aug 2011
Reviewer Location: San Jose, CA

San Carlos Spiders

I was showing property to a client who is relocating from Switzerland and she and her daughter were frightened by the spiders and their webs. I remember when we first moved to the area, I felt the same way, but over the years I have learned to accept them. I certainly notice their presence and try my best not to disturb their webs, but I am no longer frightened of them. My decks and balconies are their favorite places to reside at our home and we have learned to share our space with them. Have you?

Review of the Clarke Team: An ideal combination to work with.

Review: The Clarke Team is phenomenal! I give them 5's across the board, and I absolutely recommend them. They are just an ideal combination to work with. Kelly has all the customer service skills, and Judy is extremely detail oriented. They were extremely good at handling all the paperwork involved in real estate transactions, and they constantly listened to what we needed. They were very respectful of our time, and they also took on tasks themselves that we had not expected them to have done, making it very easy to do two pretty complicated transactions.

Reviewed By: Martyn C.
Review Date: 17 Aug 2011
Reviewer Location: San Carlos, CA

San Carlos City Creek Clean Up Day - Saturday September 17, 2011

On Saturday, September 17th, the City of San Carlos will hold its annual Creek Clean-up. The purpose of the event is to invite all residents to play an active role in preserving and maintaining our creek and stream water-ways.

The City of San Carlos has three main creeks which run adjacent to private properties and contribute to the aesthetic beauty of the City: Cordilleras Creek, Pulgas Creek and Brittan Creek. These creeks also play an important role in nature, as they provide a very delicate natural habitat to many animals and plants. Join the effort to keep our natural water-ways clean and free of debris!

On Monday, September 19th, City Staff will pick up all creek clean-up debris bags outside of creek-side residences. All bags must be put at curbside no later than 8:00 a.m. on Monday morning. Please call (650) 802-4140 to be placed on the pick up list. Please be sure to leave your name and address.

( 2011 Clean-up Day Brochure )

Steady Improvement in School District, County, State

San Mateo County students scored higher than the state average on standardized testing, and Belmont area students overall bettered their own 2010 performance.

The 2011 Standardized Testing and Reporting (STAR) results showed steady improvement across the state. The results, released this week by the California Department of Education, show mean scores, but also rank student performance in categories from advanced to far below basic.

Sixty-three percent of county students ranked at a proficient or advanced level in language arts, compared to the state's 54 percent. They also trumped the statewide averages in math and science.

"This is certainly no small accomplishment, particularly given the ongoing fiscal realities facing schools and districts that have resulted in reductions in staffing and programs," Gary Waddell, deputy superintendent of instructional services for the San Mateo County Office of Education, said in a statement.

In the San Carlos Elementary District, the majority of students in the district in grades 2-11 ranked in the advanced bracket in English-language arts, with the exception of grades 3 and 6. Forty-nine percent of sixth-graders ranked as advanced. Arundel Elementary second-graders students ranked the highest, with 72 percent ranking as advanced in English and 70 percent in math.

More than 71 percent of White Oaks Elementary fourth-graders were ranked as advanced in English-language arts.

Last year, 48 percent of the Carlmont High School 10^th-grade class ranked at an advanced level in language arts. This year, the number leapt to 56 percent. In 2010, 67 students performed at an advanced or proficient level in science, but by this year, 73 scored as well.

Some 4.7 million students took the tests this year. California educators saw the highest scores since STAR testing began in 2003, with 54 percent scoring proficient or higher in language arts and 50 percent doing so in math.

“The significant and sustained improvement we’ve seen for nine consecutive years prove how hard teachers, school employees, administrators, and parents are working to help students achieve despite budget cuts that have affected our schools,” said state superintendent of schools Tom Torlakson in a statement.

However, Torlakson lamented the achievement gap that persists for African-American, Latino, English-learning and low-income students.

“We have more work to do to make sure every student receives the world-class education he or she deserves,” he said. Waddell said narrowing the gap remains a critical measure of the success of San Mateo County schools.

At Carlmont, 54 percent of Latino ninth-graders scored at acceptable to advanced levels in algebra and 6 percent in general math. Fifty percent of ninth-graders and 28 percent of 11^th-graders did as well in language arts.

Examining Your Credit History

As indicated in last weeks post, your credit report and history are key to obtaining your home loan. We encourage you to view your credit report yourself, prior to the lender’s viewing of it, by contacting one or all three of the major credit reporting companies: Equifax, Experian, and TransUnion. All you have to do is call and request it. Once you receive it, check the "high credit limit," "total loan," and "past due" columns. It is a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports.

Credit reporting companies:

• Experian (800) 682-7954 www.experian.com
• Equifax (800) 685-1111 www.equifax.com
• TransUnion (800) 888-4213 www.transunion.com

You can also get a copy of your credit history at the following online locations:

www.freecreditreport.com
www.creditreports.com

What if I find a mistake in my credit history?
You can correct simple mistakes by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders usually understand about legitimate problems.

What about my overall (or FICO) score? What does it mean?
Prior to the late 1990s, credit scoring had little to do with mortgage lending. When reviewing your credit worthiness, an underwriter would make a subjective decision based on past payment history. Then things changed.

Lenders studied the relationship between credit scores and mortgage delinquencies and found a definite relationship. Almost half of those borrowers with FICO scores below 550 became ninety days delinquent at least once during their mortgage. On the other hand, only two out of every 10,000 borrowers with FICO scores above eight hundred became delinquent.

When can I stretch the percentages?
Depending on your area's housing market, lenders sometimes will allow you to stretch their allowable debt ratios. One of the best ways to encourage your lender to do so is to increase your down payment, as indicated in the following chart:

Allowable Monthly Housing Expense

Underwriters sometimes also will stretch the ratios for other "compensating factors," including:

• Strong cash reserves after close of escrow
• A new payment that’s only slightly higher than current rent or mortgage payment
• A history of increasing earning capabilities
• A history of an ability to save money
• A large cash down payment

Garage Sale for Condo & Apartment Residents

San Carlos Green and San Carlos Together are hosting a Yard Sale for San Carlos apartment and condominium residents on Saturday, Sept 10th at Central School. They are in need of residents who need to "get rid of stuff". The cost for a space at the event is $10 for a 20x20 space. Click on the link to register by September 3rd!

San Carlos Green

www.sancarlosgreen.org

San Carlos Green and San Carlos Together are hosting a GIANT YARD SALE for everyone in San Carlos that lives in an apartment or condominium. If you have been wondering how to get rid of all that "stuff"--now's your chance.

Understanding Your Credit Score

What Is A Credit Score?

When lenders evaluate a loan application, a process called underwriting, they try to evaluate your ability and willingness to repay the loan. They judge the borrower’s ability to repay by reviewing the income and stability of past earnings. This practice helps the lender to determine if the borrower can afford the loan payments. The review of past credit history is used to judge the willingness of the borrower to repay the loan.

Lenders want their evaluation to be as accurate, objective and consistent as possible. To help achieve this goal, home mortgage lenders use credit scores to assist in the underwriting process. Credit scores are numerical values that rank individuals according to their credit history at a given point in time. A credit score is based on past payment history, the amount of available credit, and other factors. According to Fannie Mae and Freddie Mac, two large investors in mortgage loans, credit scores have proven to be very good predictors of whether a borrower will repay his or her loan.

Credit scores are just one of many factors considered in the underwriting process. The lender will review the many components that make up the financial situation of a borrower. Even when a credit score is low, there are other factors that could overcome the negative credit issues and satisfy other underwriting criteria.

What is a FICO Score?

"FICO" scores are a type of credit score developed by Fair Isaac & Company. FICO scores use credit bureau information to obtain a score which indicates how likely someone is to pay their loan payments on time. FICO scores range from approximately 350 to 900. The higher the score, the lower the probability of default on the loan.

How Can Credit Scores Affect the Price of the Loan?

Just as credit scores are one factor in determining loan qualification, they may also be a factor in determining the price of the loan. The price of a loan means the interest rate and the points charged by the lender. The price charged for a loan will be higher or lower depending on various factors.

Credit scores are used in determining the price of a loan because they are believed to be good predictors of a borrower’s ability and willingness to repay the loan. Therefore, applicants with lower credit scores may pay higher prices for their loans because of the higher risk of default and loss on the loan. Many home loans are sold to investors, and investors will pay a more favorable price for loans they feel have a low risk of default.

There are many other factors relating to an individual borrower’s situation that may also affect the price of a loan, often even more than credit scores. These include the type of property securing the loan, the amount of the borrower’s equity in the property, the value of the property compared to property value in the area, the lender’s cost to make the loan and the type of loan selected. For example, a loan secured by a single family residence may have a lower price than a loan secured by a condominium because condominiums may be more difficult to sell than single family residences. Similarly, the price of a loan for which the borrower has made a 20% down payment may be less than a loan for which the borrower has made a 5% down payment because the first borrower has more equity in the property and, thus, a greater incentive to make the payments of the loan.

San Carlos School District looking to expand

San Carlos' four elementary, one charter and two middle schools are getting so crowded that a new campus may be needed, district Superintendent Craig Baker said last Monday.

"They are slightly over the capacity," Baker said. "Our kindergarten classes keep getting higher every year and it's been that way for the last seven years. It's a trend that doesn't seem to be going away."

Baker will discussed the San Carlos School District's space needs at a meeting last week with two city council and two school board members. Talk of a new campus is preliminary, he said, noting that no site has been chosen, no potential funding sources identified and no grade levels determined.

But Baker acknowledged that the city's eastern side would be a logical location for a new school, if a site is available.

"Where is there land in a small town like this?" he said. "We'll have to see."

That's one reason the district is bringing the question of a new campus to the city-school committee. If the city has some available land, Baker suggested, maybe a building could be constructed and shared by a school and city parks and recreation facility.

He said the district may eventually ask voters to approve a bond measure or parcel tax to pay for a new school.

"That's certainly an option," Baker said. "But we're not at that stage of the process yet."

Next year the district will have more than 3,200 students in schools ideally designed for 2,600,

---

said Seth Rosenblatt, vice president of the school board.

"It appears we're victims of our own success," Rosenblatt said.

"The school district has done a good job and the city has become that much more desirable for young families."

The district's Academic Performance Index, or API, score is an enviable 899 out of 1,000, 99 points above the state goal. The API number is well-known to parents -- and the real estate agents trying to sell home buyers on San Carlos.

While schools are crowded, class sizes are still manageable, Baker said. Kindergarten through third- grade classes are capped at 24 students, fourth grade at 28 and middle school classes at 32, he said.

But that could change, he said, noting that over-enrollment also crowds out opportunities for programs such as music and physical education.

"You need the space to provide that kind of well-rounded education," he said.

Estimate Your Buying Power

Lenders use two standard (but somewhat flexible) guidelines to determine how much of a monthly mortgage payment you can afford. The first guideline is that your household should spend no more than 28 percent of its gross monthly income (before taxes) on monthly housing expenses, including: mortgage principal and interest, hazard insurance, real estate taxes and private mortgage insurance, if applicable. However, some lenders will stretch that figure to 33 percent. The second guideline is that your monthly household expenses (as outlined above) plus other debt should not exceed 36 percent of your gross monthly income, although some lenders will stretch this to 38 to 40 percent. How can I estimate how much of a monthly mortgage payment I can afford? First, calculate your monthly household income, including that of your co-borrower, if you have one. In addition to regular wages, don’t forget to include overtime, bonuses, commissions, dividends/interest, alimony/child support and any other income. A. Your Maximum Allowable Housing Expense After you total your gross monthly income, multiply it by 28 percent to get your maximum allowable housing expense. 1. Gross Monthly Income $ 2. Multiply By 28% x 28% 3. Your Maximum Allowable Monthly Housing Expense $ B. Your Debt Now, determine your debt. Credit cards, car payments, student loans, alimony or child support should be included here, as should any debt incurred by your co-borrower, if you have one. 1. Installment and revolving debts (credit cards) $ 2. Car Loans $ 3. Student Loans $ 4. Alimony/Child Support $ 5. Other Long-Term Monthly Debts $ Total Debt $ Now that I know this, what can I afford relative to my overall debt? Most lenders generally will allow you to allocate up to 36 percent of your household income to overall debt, although some lenders will allow you to go up to 40 percent under the right circumstances, including a larger down payment. You can calculate your maximum allowable combined housing and monthly debt in the space below:

Homes and Hope - The Clarke Team Supports Habitat for Humanity

	During the month of August, we invite you to help deserving families in our community by purchasing a $2 raffle ticket in support of our Homes and Hope fundraising raffle benefiting Habitat for Humanity. In return, you will be entered into a raffle drawing with the opportunity to win a host of fabulous prizes, including the grand prize of $5,000 generously donated by Princeton Capital. Proceeds from the Homes and Hope fundraiser will benefit Northern California Habitat for Humanity affiliates in 2012. Together, we can help provide homes and hope for deserving families.

			©2011 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC. DRE License # 00313415 *Must be at least 21 years of age to enter.

Income vs. Debt Ratios

As you think about applying for a home loan, you need to consider your personal finances. How much you earn versus how much you owe will likely determine how much a lender will allow you to borrow.

First, determine your gross monthly income. This will include any regular and recurring income that you can document. It is the average income of a 2 year time period. Unfortunately, if you can't document the income or it doesn't show up on your tax return, then you can't use it to qualify for a loan. However, you can use unearned sources of income such as alimony or lottery payoffs. And if you own income-producing assets such as real estate or stocks, the income from those can be estimated and used in this calculation. If you have questions about your specific situation, any good loan officer can review your documents.

Next, calculate your monthly debt load. This includes all monthly debt obligations like credit cards, installment loans, car loans, personal debts or any other ongoing monthly obligation like alimony or child support. If it is revolving debt like a credit card, use the minimum monthly payment for this calculation. If it is installment debt, use the current monthly payment to calculate your debt load. And you don't have to consider a debt at all if it is scheduled to be paid off in less than ten months. Add all this up and it is a figure we'll call your monthly debt service.

In a nutshell, most lenders don't want you to take out a loan that will overload your ability to repay everybody you owe. Although every lender has slightly different formulas, here is a rough idea of how they look at the numbers. Typically, your monthly proposed housing expense, including monthly payments for taxes and insurance, should not exceed about 28% of your gross monthly income. If you don't know what your tax and insurance expense will be, you can estimate that about 15% of your payment will go toward this expense. The remainder can be used for principal and interest repayment.

In addition, your proposed monthly housing expense and your total monthly debt service combined cannot exceed about 36% of your gross monthly income. If it does, your application may exceed the lender's underwriting guidelines and your loan may not be approved.

There are a number of factors within your control that affect your monthly payment. For example, you might choose to apply for an adjustable rate loan that has a lower initial payment than a fixed rate program. Likewise, a larger down payment has the effect of lowering your projected monthly payment.

A lender takes into account many factors that reflect the financial condition of a homebuyer. With a variety of loan programs, buying a home is possible.

Affordable Mortgages lending limits scheduled to go down in October!

On September 30, the cost of a mortgage could rise significantly. If this happens, many of our clients run the risk of being priced out of the American Dream of home ownership. Even worse, this could hold back the housing recovery.

San Mateo County limit is currently $729,750 and it is scheduled to do down to $625,500.

We, and many fellow realtors, have taken action and written to our senators and representatives urging them to reconsider, but sadly it does not look like it will have an impact. Some banks have already reduced the limits to reflect the pending change.

What Can I Afford?

There is a rule of thumb that says that if you have the capacity to repay the mortgage, you can afford a single-family house that costs up to two and one-half times your annual gross income. (Annual gross income is the amount you make before taxes are deducted.) Like other rules of thumb, this is a general idea of how large a mortgage you can afford. But, because it is so simple, it doesn't take into account all the information that will help you feel comfortable with your mortgage payments.

If you are buying a house with someone else (spouse, parent, adult child, partner/companion, brother or sister or other relative), you should consider your co-purchaser's earnings and existing debts as well. Remember, if you apply for a loan with somebody else, you and your coborrower are both legally responsible for repayment of the mortgage.

Your buying power depends on how much you have available for the down payment and how much a financial institution will agree to lend you.

Your down payment
If you are a first-time home buyer, the price you can afford to pay for a house may well be limited by your ability to come up with the required down payment and closing costs. If you haven't accumulated much savings, you may want to set aside funds for a down payment on a regular basis from your paycheck. Monies in your checking and savings accounts, mutual funds, stocks and bonds, the cash value of your life insurance policy, and gifts from parents or other relatives may all be suitable sources for a down payment.

Private Mortgage Insurance
Depending on the lender and loan type, you may be able to get a mortgage with as little as 3 percent or 5 percent down. However, putting less than 20 percent down often means you will be required to purchase private mortgage insurance. Private Mortgage Insurance (PMI) helps protect the lending institution in case you fail to make payments on your mortgage.

Avoiding PMI
It is possible to get financing with 0-10% down and not pay PMI (Private Mortgage Insurance). This is why 80-10-10 financing was created. It is called 80-10-10 because a lender provides a traditional 80% first mortgage, a 10% second mortgage, and makes a cash down payment equal to 10% of the home’s purchase price. The same principle applies if the borrower can only afford to make a 5% down payment: 80-15-5 financing is also available.

Your closing costs
In addition to the down payment, you will also need to consider closing costs. The closing is the final step during which ownership of the house is transferred to you. The purpose of the closing is to make sure the property is ready and able to be transferred from the seller to you.

Closing costs generally range from 3 percent to 6 percent of the amount of the mortgage. So, if you were to buy a $100,000 house with a 5 percent ($5,000) down payment, you could expect to pay between $2,850 and $5,700 on your $95,000 mortgage. Sometimes, you can negotiate with the seller of a property to pay some of your closing costs, which will reduce the amount of money you will need to bring to closing.

How much a financial institution will lend you
Apart from having available funds for a down payment and closing costs, the other major factor limiting how expensive a house you can buy will be how much you can borrow.

When you apply for a mortgage, the lender will consider both your earnings and your existing debts in determining the size of your loan. Lenders generally use the following two qualifying guidelines to determine what size mortgage you are eligible for:

The amount of money you owe for mortgage payments, property taxes, insurance, and condominium or co-op fee, if applicable, should total no more than 28 percent of your monthly gross (before-tax) income. This is called the Housing Expense Ratio. The amount of money you owe for the above items plus other long-term debts should total no more than 36 percent of your monthly gross income. This is called the total Debt-to-Income Ratio.

Basically, lenders are saying that a household should spend no more than about one-fourth of its income (up to 28 percent) on housing and no more than about one-third of its income (up to 36 percent) on total indebtedness (housing plus other debts). Lenders feel that if they follow these guidelines, homeowners will be able to pay off their mortgages fairly comfortably.

These lender ratios are flexible guidelines. If you have a consistent record of paying rent that is very close in amount to your proposed monthly mortgage payments or if you make a large down payment, you may be able to use somewhat higher ratios. Some lenders offer special loans for low- and moderate-income home buyers that allow them to use as much as 33 percent of their gross monthly income for housing expenses and 38 percent for total debt.

Don’t Despair, There is a Loan For You
When you go to apply for a mortgage, the lender will use all the relevant data -- your income, your existing debts, the purchase price of the house, your down payment, the interest rate on the loan, and the cost of property taxes and insurance -- and calculate whether you qualify to borrow the amount of money you need to buy the house.

Bay Area Unemployment Low!

The Bureau of Labor statistics reports that unemployment rates for the San Francisco Bay Area are far lower than the rest of the country - only 4.3% for college educated people. Despite the severity of the economic downturn in other parts of the country, the Bay Area remains stable in comparison.

How Much Do I Need to Buy A Home?

The good news is that there are lots of folks out there who are very interested in lending you as much as 95% of the purchase price of your home, at very favorable interest rates. Furthermore, they are willing to spread out the payments over a long period of time so that you can afford the house you want. Home loans typically are offered in amounts of 80%, 90% and 95% of the price you are paying for the house. You are expected to pay the remaining amount in cash from your own funds.

The smaller the down payment, the greater the requirements are on a buyer’s financial condition. The reason a lender is willing to lend up to 95% of the value of the house is that history has shown real estate to be such an excellent investment. Lenders expect that the home will be worth more in the future than it is today - so their investment in your home is considered very safe.

That's also why the interest rate you can obtain on a home loan is one of the best around. Consider that America's largest and strongest corporations borrow at what is called the "prime rate," and that today you can borrow a home loan - fixed at the same rate for many years - at substantially less than the prime rate. Lenders have found that home loans tend to be excellent investments, and you benefit every month when you make your loan payment.

What if I don’t have enough for the down payment?

Today's homebuyers have more loan options. A homebuyer may have excellent credit and the ability to make the monthly mortgage payment, but not have the cash for the down payment. For this situation a nontraditional loan program such as an 80-10-10 may be the best loan. Homebuyers should not despair and assume that a home is out of reach. There are many loan options available for many different financial situations.

Questions? We are happy to help! For more information please contact The Clarke Team at 650-489-5399 or sold@clarketeam.com

What's your San Carlos home worth?

Go to: http://www.sancarloshomefinder.com/sell/

Renting vs. Owning

There’s nothing quite like a home that you can truly call your own. A place where you can have the gleaming hardwood floors you’ve always dreamed of, a space to cultivate your own vine-lined patio, a way to provide a good neighborhood for your kids to grow up in, and a freedom from the whims of your landlord. These are the images that immediately come to mind, for many of us.

Yet some of the biggest advantages of owning a home are less romantic and more practical – in fact, there are financial advantages to owning a home:

• Tax Deductibility You can deduct the cost of your mortgage loan interest from your state and federal income taxes. Since interest generally will account for most of your payment during the first half of your mortgage, the savings can be significant. Some of your costs at the time of closing (including prepaid mortgage interest) can be taken as deductions on that year’s income tax return, and points paid up front at the time of closing represent additional mortgage interest and may be taken as a deduction.
• Tax Deductibility of Property Taxes You can deduct all of the property taxes you pay.
• Appreciation Potential Real estate is considered a good long-term investment because it usually appreciates in value. The effects of borrowing potential can increase as the value of the home appreciates.
• Capital Gains Exclusion When it’s time to sell your home the amount of capital gains you have to pay is reduced. A homeowner can exclude up to $500,000 per couple if married and filing jointly, or $250,000 if single or filing separately for homes that have been the taxpayer’s principal residence for the previous two years.
• Capital Gain Treatment Congress allows preferential tax treatment on gains from capital assets held for more than one year. This would be important for a homeowner who has gains in excess of the allowable exclusion.
• Principal Accumulation Mortgages are designed to pay the interest for the time that the money has been used, as well as to retire the principal debt over a period of time. This payment plan means that part of the payment each month is for principal accumulation.
• Personal Enjoyment Pride of ownership is a valid reason for wanting to own a home. You can personalize your home while enjoying the financial benefits.

For the best evaluation of your financial situation, consult your financial advisor. He/she will be the most qualified to discuss the financial consequences of a home purchase decision, as well as help you to establish a plan that will achieve your home ownership goals.

Questions? We are happy to help! For more information please contact The Clarke Team at 650-489-5399 or sold@clarketeam.com

San Carlos Real Estate Statistics for the 1st Half of 2011

Real Estate Statistics for San Carlos
Semi-Annual Activity for 2009 to the 1st half of 2011
Single Family Homes	New Listings	Curr Inventory	Closed Sales	Avg DOM	Avg Sls Price	% Change	% LP Rec'd	TTL Sales Volume
2009 Jan-Jun	211	73	95	52	945,544		97.08	89,826,727
2009 Jul-Dec	147	35	140	53	913,953	-3%	98.24	127,953,485
2010 Jan-Jun	221	81	113	43	972,569	6%	99.83	109,900,349
2010 Jul-Dec	168	43	133	42	952,930	-2%	98.84	126,739,818
2011 Jan-Jun	238	91	132	37	967,704	2%	99.90	127,736,977
San Carlos real estate continues to remain strong despite the economic downturn. The average sales price has been fairly
steady and the percent of price sold compared to list price is high. The average days on market has decreased indicating a
strong demand for homes in San Carlos.
For questions or more information on these statistics or real estate in San Carlos, please contact The Clarke Team at
650-489-5399 or sold@clarketeam.com

First Time Buyers

Approaching the task of buying a home can be overwhelming. It is a complex event during which there is so much to learn and to consider. How much can I afford? Where will the down payment come from? How much will I need and where can I find the best loan? How do I begin the look for a home, what should I expect from my real estate agent and what type of home is right for me? These questions are just the beginning. Buying a home is one of the largest financial transactions in one’s lifetime, yet most people know very little about it. When embarking on the path to home ownership here are two very important points to remember: You can and should understand everything that is happening in the homebuying process. You will need to learn some new terms, apply some new concepts and take the time to learn about purchasing a home. Always remember that you are the most important person throughout the entire real estate process. It is easy to think that many others may have more expertise or clout, but the truth is that you, the buyer, are the one person in this transaction that makes it all happen. If you decide not to buy, the entire process comes to a complete stop. If you plan from the beginning to approach the homebuying process intelligently and with confidence, you are much more likely to buy the home you’ve always wanted, and have the confidence that the best decisions were made.

Steps To Buying A Home

1. Make a decision to rent or buy. 2. Figure out how much you can afford. 3. Find the right real estate agent. 4. Get pre-approved. 5. Decide what kind of home you want. 6. Find the right neighborhood. 7. Begin the home search. 8. Preview the homes. 9. Make an offer. 10. Apply for a mortgage. 11. Have the inspections conducted. 12. Close the transaction. 13. Move into your new home.

San Carlos Approves New City Budget

The city council approved the more than $55 million proposed 2011-2012 budget last night, despite some hesitance from mayor Andy Klein about the council's recent spending decisions and the slow decrease of the city's newfound surplus.

The budget was passed with a 4-1 vote. Klein was the no vote.

Klein said the city has reimplemented several programs it had previously cut which was cutting into its surplus and he feared the future would show only more spending.

The more than $55 million proposed budget includes $11,886,350 for the city’s redevelopment agency, and takes into account the $510,000 the city will spend on one-time costs for dissolving the Belmont-San Carlos fire department.

“It is a one-year budget and as proposed reflects an operating surplus of approximately $394,600,” city documents said.

That money will be split, with half going to the city’s Capital Improvement Fund 25. That is a fund used for city infrastructure including technology, capital improvements, street resurfacing, system upgrades and storm pump, said administrative services director Rebecca Mendenhall.

The other half of the surplus will be placed in a reserve fund known as the Economic Uncertainty Fund.

“It is anticipated that there will be future liabilities related to the dissolution of the Belmont-San Carlos Fire Department,” city records said. “As these costs have not yet been finalized, they have not been included in the budget.”

Mendenhall said she anticipated the unfunded liabilities to be around $800,000 to $1 million.

Staff broke down the various reductions and additions to the city. The budget reflects reductions in park maintenance, human resources recruiting, public notices and Recreation Activity Guide expenses. It also includes the elimination of the youth basketball contract, the IT Systems Analyst and Payroll and Benefits Technician and the dissolution of the Belmont-San Carlos JPA.

Additions to the budget include the funding of part-time staff to maintain the homework lab at the Youth Center, a part-time staff to maintain the Youth and Adult Center wellness programs, the restoration of code enforcement through shared services, more funding for the Night of Holiday Lights, an increase in operating expense for records retention program, additional funding for Sheriff’s contract for part-time traffic enforcement and additional funding for on-call GIS services.

The city also restored the Jobs for Youth program and gave additional funding for television recordings to include taping of the Planning Commission meetings and other broadcasts. The new contract with Half Moon Bay to provide Recreation Services was also named as an additional service.

Free Electronics Recyclying Event in San Carlos

The Old Black Mountain Water Building located at

1390 EL CAMINO REAL, SAN CARLOS, CA 94070

When? JULY 23, 2011 from 9:00AM to 4:00PM

Items that we can recycle:

Computers- Printers- T.V.’s- Any electronic items

to save the environment.

Getting Prepared to Buy a Home

Before you step foot into the first home you look at, it's a good idea to thoughtfully determine your wants and needs, and the difference between the two! By analyzing your needs you will be able to get a clear picture of exactly what you want your new home to look like and how it should function for you. Once you're in the thick of viewing homes, it's all too easy to fall in love with someone’s decorating or a home’s outstanding architecture – and to completely overlook that there aren't enough bedrooms or bathrooms to fit your needs.

First, you should write down why you're looking for a home. For example, are you currently renting and would like to have a home where you can begin building equity? Maybe you have outgrown your existing home or changed jobs which required you to move to a new city. These factors will all have an impact on how you approach your home search.

It is important to identify what you envision your home to look like and what features it should have. Writing this down helps to avoid ambiguity later in the home search process. You should make at least two lists: one should describe everything you would ideally like and the other should list the features of the home that are an absolute must. It is most likely that you will blend the two lists into one as you progress through the homebuying process. This is a natural and evolutionary process that becomes clearer as you determine what you want and what is available.

Benefits of a Buyer's Agent

For most of us, buying a home is the biggest single investment we’re likely to make – and we’re only likely to do it maybe once or twice in a lifetime. The process is, by nature, filled with checks and balances – and many complex details. Traditionally, agents were legally obligated to protect the interests of the home seller. Today preferences are changing. One of these changes is that more homebuyers are choosing to have their own real estate agent, known as a buyer's agent, to legally represent them.

A buyer’s agent represents you, the buyer, not the seller, and has full fiduciary duties, including loyalty to you. By definition, the buyer’s agent has your best interests in mind throughout the transaction. The percentage of homebuyers with buyer representation has grown significantly in the past decade. According to a recent National Association of Realtors® survey, nearly half (46%) of home buyers used the services of a buyer’s agent last year, and four out of every five buyer’s agent agreements were in writing.

The benefits of buyer representation is the dedication of a buyer’s agent to the home buyer. The buyer’s agent and homebuyer establish a mutual agreement, known as a buyer agency agreement, that will entitle the homebuyer to, but is not limited by:

Loyalty The real estate agent must act in the best interest of the buyer.

Disclosure All material facts such as relationships between agent and other parties, existence of other offers, status of earnest money, seller’s financial condition, property’s true worth, commission split with other brokers, and legal effect of important contract provisions.

Confidentiality Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties.

Accounting in dealings Reporting of where any money placed in the hands of the broker is kept.

Reasonable Skill and Care Arriving at a reasonable purchase price and advising the buyer of such, affirmatively discovering material facts and disclosing them to the buyer, investigating the material facts related to the sale. With a buyer agency, the interests of the homebuyer will be represented in the purchase of the home. This scenario is different from a typical transaction where the buyer is not technically represented.

Questions? We are happy to help! For more information please contact The Clarke Team at 650-489-5399 or sold@clarketeam.com

Andy Klein Becomes Mayor of San Carlos

An emotional Andy Klein was unanimously appointed the new mayor of San Carlos Monday night, succeeding the late Omar Ahmad and fulfilling a lifelong dream in the process.

“I’ve been very conflicted all day,” Klein said as he fought to choke back tears moments after City Clerk Christine Boland officially swore him into office. “Today I achieved a childhood dream but the way I got it was losing my best friend.”

Klein’s close friend Omar Ahamd died suddenly last month of a heart attack, leaving the position of mayor open. As Vice-Mayor, Klein was poised to be voted into the position but an arrest the day of Omar Ahamd’s funeral on suspicion of drunk driving caused Klein to initially take himself out of the running.

The day after Klein removed himself from mayoral contention, the district attorney announced his blood tests revealed he was below the legal blood alcohol limit. Klein told San Carlos Patch that same afternoon he would be re-entering the race.

“This is a very difficult thing,” said councilmember Grassilli before Klein was appointed. “It shouldn’t be difficult but certain events have happened in the city; the tragic loss of Omar Ahmad. In a different time, the Vice-Mayor would be considered but events that have come up that have clouded it.” Grassilli went on to vote for Klein’s appointment to mayor.

The unanimous appointment to mayor was the fulfillment of a dream, Klein said, for as long as he can remember.

“I went to school with Don Eaton’s children and used to think how cool it would be to have a dad who was the mayor of San Carlos,” Klein said. “San Carlos means the world to me. I don’t feel the need to ever leave. I don’t think you find towns like this that often.“

A San Carlos native, Klein attended high school in the city and has served on the council since 2009. He is the member of several boards and committees including the fire board, Rotary club and is the Vice-President of the San Carlos Villagers.

“No one who knows San Carlos any better,” said councilman Randy Royce. “I’m really excited to have a great leader.”

Who pays for what?

A major question in every escrow is: "Who pays for what?" The answers vary by county ordinances and standard practices. What is listed below are “customary” practices. All fees charged are governed by terms of the sales contract and other written escrow instructions. Note: on some FHA, VA or other government-backed loans, the buyer will pay some fees that governmental regulations will not allow you to pay.
Seller's Generally Pay: Real estate commission Document transfer tax ($1.10 per $1,000 of sales price) Notary fees Property tax proration (to date of acquisition) Special delivery/courier fees, if required Document preparation fees Document recording charges Homeowner’s association statement fee and prorata dues Home warranty (according to contract) Work/repairs required (according to contract) Matters of record against the property or seller (loans, tax liens, judgments, etc.) and fees required to clear them (statement fees, reconveyance/trustee fees and prepayment penalties) Bonds and assessments (according to contract)	Buyer's Generally Pay: Title insurance policy premiums (lender’s and buyer's) Escrow fees Notary fees Property tax proration (from acquisition date) Special delivery/courier fees, if required Document preparation fees Document recording charges Homeowner’s association transfer fee and prorata dues City costs Home warranty (according to contract) Inspection fees (according to contract) Matters of record against the buyer including tax liens, judgments and fees required to clear them Fire insurance premium for the first year Assumption/change of records fees if the buyer is taking over an existing loan Lender’s new loan charges Interest on new loan from date of funding to 30 days prior to the first payment Other prorations (rents, insurance etc.) if applicable

Redistricting of School Boundaries in Belmont and Burlingame

The Belmont -Redwood Shores School District is discussing changing the boundaries in Belmont. Belmont has 4 elementary schools and Redwood Shores has 2. All students attend Ralston Middle School. This district also services part of San Mateo and San Carlos. Buyers who are thinking of purchasing in any of our Peninsula cities must get all the current information from the respective school district. For expample the Burlingame School District decided in March of 2011 to open up the old Hoover site as a K-5 neighborhood school by August 2014. This will effect many homes in the area. Currently there are 5 elementary schools and 1 middle school. For up-dates on the boundary line decision-making progress, please visit the Burlingame District’s website www.bsd.k12.ca.us or Belmont-Redwood Shores District www.brssd.org

Seller Disclosures 101

During the escrow process, you must inform the buyer of specialized conditions that affect your home. These may include the following conditions:

Lead Paint
Sellers of properties built prior to 1978 have the following obligations:

• Provide buyers with a HUD pamphlet entitled "Protect Your Family From Lead in Your Home"
• Disclose all known lead-based paint and related hazards and provide any available reports
• Include a standardized warning as an attachment to the contract
• Complete and sign statements verifying that requirements have been met
• Retain the signed acknowledgement for 3 years
• In addition, you must provide the buyers with a 10-day opportunity to test for lead

Natural Hazards
California law requires sellers to disclose, via a "Natural Hazard Disclosure Statement" or NHD, if properties are located in one of six predetermined "natural hazard" zones. (If the property is not within one of these zones, you, of course, have no such obligation.)

The six zones are:

• A flood hazard zone as designated by the Federal Emergency Management Agency (FEMA)
• An area of potential flooding after a dam failure (also known as an inundation area)
• A very high fire hazard zone
• A wildland fire area, also known as a state fire responsibility area
• An earthquake fault zone
• A seismic hazard zone

If an NHD is delivered to the buyer after both parties have signed the Purchase Agreement, the buyer will have three days to rescind the agreement. However, if the buyer received the NHD before they signed the Purchase Agreement, then they cannot use the NHD to rescind.

Mello-Roos Districts
Especially (but not exclusively) if you are selling a home in a newer area, you may be within a Mello-Roos tax district, and you must provide to the buyer a "Notice of Special Tax." If this notice is delivered to the buyer in person, they have three days to rescind their offer. If it’s delivered via U.S. mail, they have five days to decide.

Basically, a "Mello-Roos Community Facilities District" is formed by a local government, district, or agency to finance public services and facilities including police and fire departments, ambulance and paramedic services, parks, schools, libraries, museums and cultural facilities.

Condominiums etc.
If you’re selling a condominium, townhouse or other planned development (for purposes of this discussion, we will call them all "condominiums"), there are the buyer needs to know about common areas (such as greenbelts and recreational rooms) and the homeowner’s association.

The buyer will be required to make monthly payments, known as regular assessments, to maintain common areas, as well as special assessments to replace a roof or repair the plumbing, as determined by the homeowner’s association (HOA.)

Condominiums also may have regulations regarding architectural requirements, limitations on pets, and age restrictions (i.e., senior housing). These must be formally disclosed to the buyer during escrow. You may provide this information via the following documents, to the extent that they exist and are available:

• Declaration of Restrictions: Commonly known as "CC&Rs", or Conditions, Covenants and Restrictions
• Articles of Incorporation or Articles of Association Bylaws
• All current financial information and related statements, including operating budget, estimated revenue and expenses, HOA reserves, estimated remaining life of major components (including roofs, plumbing etc.), and regular and special assessments
• A statement describing the HOA’s policies and practices in enforcing lien rights or other legal remedies for default in payment of its assessments
• A summary of the HOA’s property, general liability, and earthquake and flood insurance policies
• On existing HOA’s, a statement describing any restrictions on the basis of age, such as authorized senior citizen housing

Many smaller HOAs will not have all of these documents, but must provide what they do have.

The Sale Process

While there’s no such thing as a typical home sale – each has a character and a flow of its own – there are certain aspects you can expect. While local real estate practices may vary, here are the basic activities that occur during the transaction, from receiving an offer to closing escrow.

Giants World Series Trophy Coming to San Carlos! - June 20th at 3 pm

The San Francisco Giants World Series Trophy is coming to San Carlos! It will be on display at Burton Park on June 20th from 3:00 p.m. to 5:00 p.m. for viewing and pictures.


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What is Escrow?

Escrow is the process that buyers and sellers of homes use to complete the monetary and legal details of a sale. A neutral third party manages the escrow, called an “Escrow Officer,” who generally works for a title company. “Title” is the proof of ownership of a property. The title company ensures that all terms of the contract are adhered to before the sale is complete and money changes hands.

In order to successfully bring an escrow to close, the title company will:

• Obtain a title report to ensure that the seller has the right to transfer ownership (title) to the buyer
• Ensure that any previous loans on the property have been paid off
• Acquire necessary loan and insurance documents
• Confirm that necessary inspection reports are on file
• Arrange for the buyer to sign all necessary paperwork to complete the close of escrow

When these details are complete, the Escrow Officer requests the funds to be released and instructs the title department to record the transaction at the County Recorder's Office, thereby closing escrow.

31st Anniversary: San Carlos Hometown Days at Burton Park - May 20-22, 2011

Starting at 6:00 pm on Friday, May 20th, the San Carlos Hometown Days committee invites you to join in and celebrate 31 years of Hometown fun. Hometown Days is a uniquely San Carlos tradition that features a parade on Saturday, May 21st at 9:45 am, as well as 2 stages of live music, food, entertainment and fun for the entire family all weekend long.

• Hometown Days Web Site
• Kiwanis "Pasta In The Park" Steak Dinner - May 21st - 5:00 pm
• Rotary 10-K Fun Run - Sunday May 22nd - Online Sign Up Form

For more information call the Hometown Days hotline at (650) 594-2700 or click on the link to visit the Hometown Days web site.

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