ABOUT CRYSTLE

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULUS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

INSIGHTS INTO THE 2022 SAN FRANCISCO REAL ESTATE MARKET - AND WHAT IS MEANS FOR YOU AS A HOME BUYER OR SELLER

Crystle VitariOctober 10, 2024Comment

Hidden Costs of Home Buying

**A Comprehensive Guide to Real Estate Purchase Expenses**

Finding Your Dream Home: Understanding the Closing Process

Congratulations on finding your dream home! As you prepare to close the deal, it's essential to navigate the closing process with confidence. One of the most important aspects to understand is closing costs. In this guide, we’ll break down everything you need to know about these expenses, from what they are to how they’re calculated, and provide tips for managing them effectively.

What Are Closing Costs?

Closing costs are the fees and expenses of finalizing a real estate transaction. These costs typically involve payments to various third parties involved in the sale, prepaid expenses and escrow deposits. Common closing costs include:

- Loan Origination Fees: Charges for processing your mortgage application.

- Appraisal Fees: Costs for assessing the value of the property.

- Title Insurance: Protection against potential disputes over property ownership.

- Attorney Fees: Legal costs associated with the transaction.

- Property Taxes: Taxes that may be prorated at closing.

Understanding the components of closing costs is crucial for budgeting and financial planning.

Types of Closing Costs

Closing costs can be categorized into several groups:

1. Lender Fees: These are charges related to securing your mortgage, including origination fees, discount points, and underwriting fees.

2. Third-Party Fees: Expenses for services provided by outside parties, such as appraisal fees and title insurance.

3. Prepaid Expenses: Costs like property taxes, homeowners insurance, and prepaid interest, which are paid in advance at closing.

How Are Closing Costs Calculated?

The total amount of closing costs can vary based on factors such as the home’s purchase price, the type of mortgage, and the property’s location. Lenders are required to provide a Loan Estimate (LE) within three business days of receiving your loan application. This document outlines the estimated closing costs associated with your loan, helping you compare offers and negotiate terms.

Tips for Managing Closing Costs

Managing closing costs can make a significant difference in your overall expenses. Here are some strategies to consider:

- Shop Around: Compare lenders and service providers to find the best fees and rates.

- Negotiate with Sellers: Discuss the possibility of the seller covering some or all of the closing costs.

- Consider Alternative Financing: Look into options that may have lower upfront costs.

- Review Your Closing Disclosure: Carefully check this document for accuracy and clarity before closing.

Closing Cost Assistance Programs

Many first-time homebuyers may be eligible for assistance programs designed to help cover some closing costs. These programs can offer grants, loans, or other financial support to qualified buyers. Research available options in your area and consult with lenders or housing counselors to explore your choices.

Happy Closing!

Closing costs are an inevitable part of the home buying journey, but with proper planning, you can navigate them successfully. By understanding what closing costs entail, how they’re calculated, and strategies for managing them, you'll approach the closing table with peace of mind. Remember, knowledge is power! With this guide as your companion, you’ll be ready to seal the deal on your new home with clarity and confidence.

Typical Buyer Closing Costs

Here’s a quick overview of the typical costs you can expect:

- Purchase Price: The agreed-upon price for the property.

- Deposit/Down Payment: The upfront amount you’re contributing.

- Loan Amount: The total amount borrowed from a lender.

- Loan Costs: Fees associated with obtaining the loan.

- Closing Costs: Expenses incurred during the closing process.

- Prepaid Items: Expenses paid in advance.

- Total Cash Due: The total amount needed at closing.

- Seller Concessions: Credits from the seller towards your costs.

- Adjustments: Pro-rated amounts for expenses owed by the buyer.

- Total Funds Needed to Close: The complete amount required at closing, including any concessions.

- Estimated Monthly Payment: An estimate of your monthly mortgage payment.

- Cash to Close: The funds you need to bring in certified form, such as a cashier's check or via wire transfer.

By familiarizing yourself with these aspects of closing costs, you’ll be well-prepared to make informed decisions as you embark on this exciting journey to homeownership!

LINKS TO OTHER BLOG ARTICLES

8 STRATEGIES TO WIN A HOUSE BIDDING WAR

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULUS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

INSIGHTS INTO THE 2022 SAN FRANCISCO REAL ESTATE MARKET - AND WHAT IS MEANS FOR YOU AS A HOME BUYER OR SELLER

Crystle VitariOctober 10, 2024Comment

Press Release: Top Real Estate Agent Ranks Top 1% for Keller Williams Northern California and Hawaii

San Francisco, CA - March 24, 2024

CKW Real Estate, run by Crystle Wong Vitari, a solo agent with Keller Williams, one of the leading names in the real estate industry, proudly announces achieving the top 1% for all Northern California and Hawaii regions. This remarkable accomplishment means being ranked 1 out of 60 teams and agents, making it to the top 1%.

Through relentless obedience to God, hard work, dedication, and outstanding service, Crystle, a solo real estate agent with Keller Williams Northern California and Hawaii, has leveled up in success to the top 1% of realtors. With an unwavering commitment to solving problems and putting clients' true needs first, Crystle has earned this prestigious recognition as 1 of 60 top agents for Keller Williams Northern California and Hawaii in one of the most competitive markets.

By providing exceptional service and a deep understanding of the unique nuances of the Northern California region, Crystle has proven her commitment to delivering unparalleled results.

"This achievement is the result of faith and obedience to the Lord, hard work, and a genuine passion for people and real estate," said Crystle. "I am incredibly grateful for the trust my clients have placed in me and for the continuous support from Keller Williams San Francisco."

For more information about Crystle or to inquire about buying or selling, or leasing real estate in Northern California, please go to ckw.realestate.

Crystle VitariMarch 24, 2024Comment

8 Strategies to Win a House Bidding War

You've finally found your dream home, you can even imagine yourself lounging in the living room and cooking in the kitchen... There's just one problem, especially in a competitive housing market. Your dream home could also be the perfect home for several other people, all who are looking to secure your dream home for themselves.

Just because there are other interested buyers standing between you and your dream house, doesn't make it an impossible task. Instead of just turning around and walking away from the perfect place you can see yourself settling down in, consider these 8 strategies to hopefully emerge the winner against competing offers in a house bidding war.

Get preapproved for a mortgage

Purchasing a home isn't something you do on a whim, and sellers expect that you would already have your finances in order before you even begin your house hunt. First consulting with a lender, discussing your financing options, and attaining a preapproval letter, will give sellers more confidence in you as a potential buyer.

It is important to note that a preapproval letter is different from a prequalification letter! A prequalification letter is only the initial step in a financing process, where a lender believes you "qualify" for a loan simply based on your personal finances.

Preapprovals, however, involve an intensive examination of your credit score, ongoing income, assets and liabilities, income tax contributions and more. Then only will the lender offer a conditional commitment to loan you a certain amount of money for a mortgage.

Knowing that you come with a "preapproved" financial profile can only help sellers feel more at ease to sell you their property, knowing that you won't run into trouble financing the full payment. It also means they'll be able to close on the house more quickly, since your mortgage plan is already "in the bag", so to speak.

2. Over Offer

Let's face it, money talks. This is especially true when you're trying to purchase a home in a sellers market. If there are many interested buyers, sellers are naturally going to look at who is offering more money for their house. It isn't an automatic auction process where the highest bidder wins, but you can't ignore the fact that the more money you offer, the more likely they'll consider you as a viable option.

If you really want this house and you're pretty sure you can't imagine living anywhere else, chances are you'll be willing to put in a higher offer than the seller's list price in order to coax them to sell it to you, and not anyone else. Over offering is extremely likely in a sellers market with bidding wars going on, simply because a seller isn't going to accept less out of "compassion" when they can walk away with a greater profit.

3. Offer earnestly

Besides offering more than the asking price, you can also hope to secure your dream house by offering more in terms of earnest money deposits.

The earnest money deposit (or good faith deposit) is what it sounds like - money you place as a deposit because you are earnest, or serious, about purchasing a seller's home. Because all sellers take a risk-taking their house off the property market, the earnest money deposit is there to protect their risk in case you change your mind unexpectedly. In other words, the earnest money deposit is your skin in the game as a potential buyer.

Although the earnest money deposit goes into an escrow account and usually goes towards a down payment or closing costs, it is definitely separate from the down payment you make towards home financing.

The earnest money deposit signifies your serious intent in purchasing a seller's property, so offering more may convince the seller that you're confident their property is indeed your dream home, and that you're not changing your mind at any point.

4. Go big on your down payment

It's simple math - the more you put down as your down payment, the less financing you'll need from a lender. While you may be pre approved for financing and everything looks great on paper, sellers are naturally going to worry if your financing might hit a snag in future. A greater down payment means more confirmed cash already in the pocket, which serves as a strong assurance to sellers.

This can make a big difference even if another potential buyer puts in an offer price that's higher than yours - if you're offering a greater down payment, you might have an edge over their overall offer. These are definitely things sellers will take note of when considering multiple offers, so it's not automatic that the highest offer always wins.

5. Throw cash at it

Of course, this probably isn't going to be feasible for most of us, but if you can, making a cash offer on your dream house will definitely show the seller that you're serious about it! It'll also make your offer stand out amongst other potential buyers in a competitive market. When you pay cash, it takes the risk of financing out of the picture, and sellers would be more likely to consider you seriously. Some sellers will also opt for the convenience and efficiency of a quick cash closing process over a higher, but mortgaged, offer.

6. Write an escalation clause

Because bidding wars are somewhat auction-like in nature, you're always going to be trying to outdo someone else's bid. By writing an escalation clause into your offer, you are already preempting the eventuality that you do get outbid, and already offering a possible counter bid up front. You could also insert a cap price, which is the maximum price you're willing to offer on the property. However, the risk of doing this is that the seller might not come back to you to ask for a "best and final'', if the bidding war has already pushed the current purchase price above your stated cap price.

7. Address the appraisal gap

If you are purchasing this house on a loan, your lender will conduct an appraisal to check the property's market value. If the appraisal comes back with an amount that's lower than your offer, that's going to be pretty disappointing, because it means you won't be financed for the full amount you offered. Will you have the cash on hand to make up for the difference between the appraised value and your offer price?

It's going to be disappointing to the seller too, if it means they might not be getting your full offer that you made, if you were 100% relying on financing to purchase the house. However, if you first include an appraisal gap guarantee in your offer, which means you'll be willing to pay any difference between the appraised price and your offer in cash, any seller will feel more convinced and secured in their decision to pick you as the buyer.

8. Forgo certain contingencies

Buyers sometimes want to include certain stipulations in their offer, and these are usually to protect them, or to make the situation easier for them to complete the purchase. In many cases, a common contingency prospective buyers like to include is the "home sale contingency" which states that their existing home has to sell first, before they can purchase the seller's property.

If you place yourself in the shoes of a seller, would you want to wait for someone else's home to sell first before you can sell yours, or would you like to get your sale closed as soon as possible?

That's why as a potential buyer, if you can afford to waive certain contingencies such as the aforementioned home sale contingency, or others like home inspection contingency, or financing contingency, that flexibility gives you an edge in the bidding war because it makes things so much easier for the seller, and they'll be more willing to sell their property to you.

(Just a note of warning: Do not waive the home inspection contingency if inspecting the property's condition inside and out before you buy is of utmost importance to you!)

The above 8 strategies are ways that you can pull ahead of your competition in any real estate bidding war, but do it carefully, and always with the guidance of a licensed real estate agent. Remember, you're probably doing this for the first, if not second or third time, whereas real estate agents have had the advantage of having successfully guided their prior clients through probably hundreds of bidding wars. Good luck and all the best securing your dream home!

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULUS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

INSIGHTS INTO THE 2022 SAN FRANCISCO REAL ESTATE MARKET - AND WHAT IS MEANS FOR YOU AS A HOME BUYER OR SELLER

ABOUT CRYSTLE

As the CEO of a San Francisco-founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10+ years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native-born and raised in San Francisco, you can trust that you’re in the good hands of a local who can help you navigate the micro-neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long-standing, and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop micro-housing. Her time serving on boards for these nonprofits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

HER CURRENT FOCUS WITH REAL ESTATE CLIENTS IS TO WORK AND PARTNER WITH CHURCHES, NONPROFITS, AND AFFORDABLE HOUSING DEVELOPERS.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship-focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, Board Member of Old Skool Cafe, and volunteer with Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariJune 21, 2022Comment

Insights into the 2022 San Francisco Real Estate Market - And What It Means For You as a Home Buyer or Seller

There are many reasons why San Francisco is known as The Golden City, but to prospective homebuyers looking to put down roots in this area, this name is a reflection of the sometimes ridiculous unaffordability of San Francisco housing.

It’s no secret that San Francisco is no pauper’s playground. The median price of a home in San Francisco sits loftily at 1.6 million dollars. That’s a pedestal and more above the national median of $424,000. And of course, this SF median price is only on an upward trend.

The San Francisco Association of Realtors has acknowledged that median prices are at an all-time high - a median of $1.38 million for condos, and $2.2 million for single-family homes.

Buyer demand still high

According to the San Francisco Chronicle, the last two years “have driven unusually high costs even for the especially pricey metro area, propelled by a nationwide home inventory shortage that’s even more acute in the Bay Area.”

Extremely high demand and historically low supply, plus “the increased desirability of homeownership in a pandemic in which people are spending more time at home, has driven frenzied bidding wars in the Bay Area housing market.”

A San Francisco Real Estate market report by Compass, released in May 2022, states that the Bay Area is continuing to see “extremely intense demand”. Many buyers have scurried to secure a property in the early part of 2022, to take advantage of the low-interest rates before they escalate further.

Currently, the number of active real estate listings available corresponds to a 9-week inventory. Generally speaking, anything under 3 months is considered a “seller’s market”, so a 9-week inventory really shows how much of a seller’s market San Francisco continues to be.

Contrast this to the almost 12-month inventory at the peak of the pandemic and you’ll see just how much the housing market here has recovered.

Homes are being snapped up quickly by enthusiastic buyers, who are taking fast action to put in their offers, and generally overbidding to secure their new residence. Another record high, condo buyers are now paying 7% more than the listing prices, while house buyers are over offering by 23% to stake their claim over their dream home.

With such feverish housing demand, the list to lease process could happen in a matter of days, so if you’re a prospective home buyer, the consensus is and has always been: Act fast.

The Consumer Price Index, which measures the rate of inflation, hit 8.5% this March, the highest it’s been in 40 years. The Federal Reserve Bank’s countermove, as it has always done, has been to raise interest rates beginning this March - with promises of more increases to come, according to Reuters.

Despite rising mortgage rates, this still seems to signal good news for homebuyers.

Forbes notes that “over the past two years, while droves of Americans began working remotely and mortgage rates hit historic lows, home sales spiked,” but “now that interest rates and concerns about a looming recession are rising, the real estate market is cooling.”

This Mansion Global article also admits that “rising borrowing costs, the volatile stock market and record prices are giving buyers pause.”

Are we indeed seeing signs of the real estate market slowing down a little closer to home?

Patrick Carlisle, chief market analyst at Compass in the San Francisco Bay Area, says in their market report that the rising mortgage rates will likely affect the “less expensive homes - and possibly second-home markets.” The luxury real estate market does not seem to be affected since affluent buyers are less dependent on a mortgage. But for families looking to purchase more affordable housing, they may just be in luck soon.

An article in the Business Times quoted Jeff Tucker, senior economist at Zillow, as saying that “by fall or winter, it’s possible buyers will start to see some bargains” in “pricey West Coast markets like… San Francisco, and San Jose.”

Mark Zandi, chief economist at Moody's Analytics, even puts a timeline to it, saying that “overvalued” housing markets could see home prices fall 5% to 10% over the next 12 months. It might not be a drastic price drop, but buyers will at least begin to see list prices that are more in their budget range in the coming months.

This market leveling off will be especially beneficial for homebuyers who have been offering on properties over the last two years without any success in the market, because they, as CBS News states, "ultimately, haven't been able to compete" with the record high prices.

More inventory will mean greater supply to meet the furious demand of San Francisco home hunters, allowing buyers to finally gain some edge with competitive offers in the housing market.

This so-called “bargain” does not bode ill for home sellers, though. Selma Hepp, deputy chief economist at CoreLogic, notes that demand across the nine-country San Francisco Bay Area will still continue to be “really strong in the sense that it’s a lot of over-bidding still, most homes selling over the asking price and home price appreciation still continuing to trend at double-digit rates.”

The future of San Francisco real estate

While a lot of real estate experts have pinned market demand to mortgage rates, a working paper filed with the National Bureau of Economic Research shows that it was actually remote work that raised aggregate U.S. house prices by 15.1%, while lower interest rates and fiscal stimulus were of less importance.

Because of “the pandemic’s ‘work from anywhere’ boom”, states a Fortune.com article, the San Francisco metro area has seen “an exodus of workers”, as they no longer need to live close by to a physical office location. This has led to an outmigration from large metropolitan areas, and the Bay Area is no exception.

In the same vein, a data analysis by real estate listings website Redfin shows that the Bay Area real estate market might be looking at “more tempered” home-price increases due to the spike in departures of their residents to outlying suburbs.

In a San Francisco Chronicle article, Nicholas Bloom, an economics professor at Stanford and an expert in remote-work trends, suggests that “the current housing surge is less of a bubble than we might think,” since it is being driven by this new policy of working from home, instead of low-interest rates as it has historically been in the past.

He notes that it’s likely that San Francisco and the central Bay Area region will continue to see their “tech and finance workings moving out” into the suburbs if remote and hybrid work continues.

All this seems to imply that the future of housing costs in San Francisco may depend largely on the future of remote work.

If the current trends of telecommuting and working from home continue, and people find themselves happier settling down in more remote areas outside of bustling metropolitan cities, then there may be a switch-up in the demand and therefore condo prices and house prices in the busy San Francisco Bay Area.

Conversely, if employers start forcing their employees back into city offices, then that could spike up demand and prices of real estate located in and around the city hubs once more.

With rising interest rates, the future path of remote work in question - and not to mention, Governor Newsom proposing to turn unused retail and commercial space into much-needed San Francisco housing for its residents - what can we look forward to in the foreseeable future when it comes to the San Francisco real estate market?

Time will tell… But if you’re interested in discussing the future of selling your property, or purchasing your dream home, feel free to contact us at CKW Real Estate. We’d be happy to arrange a sit-down with you to answer all your queries. Don’t worry, we might not know exactly what the future holds, but you can rest assured that with CKW's real estate agents, you’re in good hands. ;)

1624 California Street
San Francisco, Ca 94109
United States
415-854-2224
crystle@ckwproperties.com

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULUS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

ABOUT CRYSTLE

As the CEO of a San Francisco-founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10+ years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native-born and raised in San Francisco, you can trust that you’re in the good hands of a local who can help you navigate the micro-neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long-standing, and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop micro-housing. Her time serving on boards for these nonprofits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

HER CURRENT FOCUS WITH REAL ESTATE CLIENTS IS TO WORK AND PARTNER WITH CHURCHES, NONPROFITS, AND AFFORDABLE HOUSING DEVELOPERS.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship-focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, Board Member of Old Skool Cafe, and volunteer with Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariJune 21, 2022Comment

Top 10 Booming Small City Real Estate Markets 2021

People are leaving San Francisco again. Moves from San Francisco have increased 649% in the last 9 months of 2020. Population growth was already negative in 2019, but 2020’s pandemic made it so much worse. Why would remote workers stay in San Francisco when they can work from home anywhere else in the world for cheaper? With Covid-19 gutting jobs and the appeal of city life, postal records show San Francisco may have lost over 89,000 households just from March to November 2020. Some are calling this an unprecedented mass exodus, but historically San Francisco has stood the test of several exoduses through the last century.

Mass exodus? Maybe. Unprecedented? Definitely not. Mass exoduses happen a lot here, actually. While San Francisco apartments the size of shoeboxes may have waiting lists now, after 2001’s dot-com crash unemployed programmers fled San Francisco and apartments went empty. Looking back even further, the Gold Rush transformed San Francisco from a tiny 200 settler town into a 36,000+ resident boomtown in just a few years. But when the decidedly not gold dust of the Gold Rush settled, people spilled into small cities nearby to save money. These small real estate markets created more fortunes than the gold as tiny towns transformed into metropolises. Once again, people are leaving San Francisco. But they’re not leaving California. They’re just moving to smaller California cities with lower rents nearby.

This is known as a spillover market, or a small city close to a large metro area with lower prices. It’s also known as the destination for San Francisco’s ex-residents and an opportunity for anyone who wants to get into real estate. Spillover markets like Vallejo or Rapid City offer lower prices and growing local economies as people move from big cities like San Francisco or even Los Angeles. Here are some of the fastest-growing cities in California in order of real estate opportunity.

While a global pandemic may not sound like the ideal time to get into real estate, that’s exactly why it is. Fear means less competition. Buyers willing to jump through some hoops may find a real estate market with lower prices and fewer bids than any other time in their lives. Besides, small city real estate is especially easy to buy during the pandemic. First, small cities don’t usually have the same tight Covid-19 restrictions as big cities like San Francisco, eliminating lots of red tape and making neighborhoods easier to scope out in person. Second, properties in nearby small cities are usually within driving distance, saving buyers the hassle of a flight during the pandemic. Third, sellers have had enough time to adopt convenient technology like 3-D listing photos, 360-degree drag-and-move panoramic room tours, and complete virtuals tours to make showings a breeze. Remote showings have also allowed real estate agents to expand their selling range. Today, buyers get access to a wider agent talent pool eager to help find a home almost anywhere at low prices and historically low mortgage rates due to new laws like Prop-19 that offer tax breaks for moving into a new house.

Normal changes. San Francisco is one of the hottest cities today, but cities rise and fall with their workers. When lockdowns end, the en-mass move to these small cities will mean greater nightlife, entertainment, culture, and reputation. Many of the Bay Area’s small cities still offer a relatively short commute to work if IRL work even comes back at all. When masks come off and the immunized dust settles, one of the above cities might just become the next San Francisco.

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULUS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

Commercial Real Estate Pros + Cons

ABOUT CRYSTLE

As the CEO of a San Francisco-founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10+ years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native-born and raised in San Francisco, you can trust that you’re in the good hands of a local who can help you navigate the micro-neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long-standing, and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop micro-housing. Her time serving on boards for these nonprofits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

HER CURRENT FOCUS WITH REAL ESTATE CLIENTS IS TO WORK AND PARTNER WITH CHURCHES, NONPROFITS, AND AFFORDABLE HOUSING DEVELOPERS.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship-focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, Board Member for Old Skool Cafe, and volunteer with Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariApril 14, 2021Comment

2020 Law Changes Affecting SF Property Owners

5 Changed Laws That Affect San Francisco Property Owners

Disclaimer: I am not a lawyer and should not be relied upon for legal advice. Please contact a real estate attorney to verify or discuss any of the following law changes further. Nothing in this article is to be received as legal advice.

Since 2020, the San Francisco board of supervisors have changed 2 members and many more real estate laws. With Mayor London Breed retaining less support than imagined, the board of supervisors has turned more progressive, focusing on changing laws to meet the increased housing demand and serve existing tenants. First, the San Francisco Board of Supervisors passed the Intermediate Length Occupancy Law (ILO) and the Community Opportunity to Purchase Act (COPA) as part of their active pro-tenant initiative. To address the unmet housing demand, the board relaxed Accessory Dwelling Unit (ADU) regulations, making it easier to build small units under 1,000 square feet on existing properties. Finally, the board amended the Planning Code procedure to legalize illegal units. What does all this mean for property owners?

1. Relaxed ADU Regulation Means More Real Estate

California only has so much space, but rental demand seems infinite. How can the state find apartments for everyone? Some real estate experts point to accessory dwelling units (ADUs), which are small units under 1,000 square feet that can be added to existing properties, sometimes manufactured or even built from shipping containers. ADUs offer much-needed space and can be built in a fraction of the time and cost of a standard apartment building. In an effort to meet California’s rental demand, 2020 state laws greenlit more ADUs per lot than ever before. While California cities can tweak their ADU laws, they can only make laws more inclusive for ADUs, not restrictive. This means more ADUs for everyone.

To build more homes faster, new laws have created State-Mandated ADU’s (No Waiver ADU’s) that are exempt from subjective design review. These ADUs have a shortened approval period of just 60 days and are exempt from local developer impact fees if smaller than 750 square feet. ADUs are also exempt if they’re set on a lot of 3 or fewer units.

State law also encourages property owners to develop more detached ADUs. In 2021, 2 more ADU units can be added in the rear yard of a lot that already contains 2+ units. No rear yard variance is required as long as the units are 1,000 or fewer square feet and are set back 4+ feet from property lines. Technically, there are no regulations for the distance between new structures and existing structures. Property owners face no limit to the number of ADUs they can build from an existing structure of 2+ dwelling units, as long as the new number of ADU’s created doesn’t exceed 25% of the number of existing legal dwelling units.

Finally, state law has created a new class of ADU: the Junior ADU (JADU), which is a 500 square feet or smaller unit for single-family residents. This means the owners must occupy either the property’s primary unit or the JADU. However, JADUs are the only units that require owners to reside in their ADU. All other California laws that require owners to reside in the ADU will be discontinued until at least 2025. However, ADUs are still a key part of their property and cannot be sold separately from other units. While ADUs may be subject to local rent control laws, on the whole, the rise of ADUs should allow for a freer real estate market with more space and fewer legal hiccups.

2. Limited Intermediate Length Occupancy Housing (ILO Housing)

Dwellings that are rented for periods longer than 30 days but shorter than 1 year are known as “Intermediate Length Occupancy” (ILO). Since ILO dwellings can charge high rents and limit permanent housing for residents, the board considered banning ILO dwellings altogether. They settled on a major restriction. In June 2020, the planning code was amended to limit the number of ILO homes to just 1,000. Now, owners must apply for permission to rent their ILO dwellings. Permission will only be granted to the first 1,000 units, making this a first-come, first-serve system. However, between 2,000 and 2,700 units were being used as ILO housing units before the amendment, meaning many owners won’t keep their ILOs. Location can make approval even more competitive. Over 66% of the 1000 ILO units are required to be in the “downtown core” of the city and no more than 33% of ILO units can be in low-income communities.

San Francisco set strict standards for buildings to even qualify as an ILO. 5 types of buildings that cannot qualify as ILOs include 1-3 unit buildings, buildings subject to Notices of Violation, rent-controlled units, units designated “below market rate”, and of course buildings built after June 2020, the date this law went into effect.

For buildings with 4-9 units, planning staff alone can approve ILO units. For buildings with 10+ units, the Planning Commission must approve ILO units personally. However, the Commission will not approve an ILO if more than 20% of the units in the building of 10+ units are already classified as ILOs. For buildings with 4-9 units, the Commission won’t approve ILO if more than 25% of the units are already ILOs.

No grandfather provisions apply, meaning units that have been rented for more than a month but less than a year must register. To legalize existing rentals or build new ILO units, property owners first file an alteration or building permit with the Building Department. They then move into the Planning Department review process to get a final answer.

3. Nonprofits Make the First Move with Community Opportunity to Purchase Act (COPA)

The Community Opportunity to Purchase Act (COPA) aims to prevent tenant displacement and encourage affordable housing by putting homes in the hands of qualified nonprofits. When a residential property of 3+ units is for sale, COPA now gives nonprofits the right to make the first offer. Nonprofits also bid first on vacant lots that can be developed into 3+ unit buildings. Prudence now requires sellers to comply with certain COPA Notice of Sale rules before listing and marketing their properties for sale so nonprofits can make the first move. This change also means real estate agent listing agreements may now address the possibility of COPA sales.

COPA gives nonprofits 5 days to notify the seller if they are interested in making an offer to buy the property. If the nonprofit expresses interest, the seller must provide further disclosures to the nonprofit, including the contact info for the tenants. This triggers an additional 25-day period during which the nonprofit may offer to purchase the property. If no nonprofit is interested in making an offer within the initial 5-day period, the seller may proceed normally and solicit 3rd party offers for purchase, without any Rights of First Refusal.

Nonprofits Make the First Move with Community Opportunity to Purchase Act (COPA)

Even with COPA, sellers are not required to accept an offer. Sellers can refuse any nonprofit they want. The only exception is if a nonprofit offers to buy and is rejected by the seller, but then acquires a Right of First Refusal to purchase the property by matching the terms and conditions of a 3rd party sale. In this 3rd-party scenario, the seller must provide notice to any nonprofit whose initial offer was declined, setting the terms and conditions the seller has received from any 3rd party purchase offer that the seller plans to accept.

Changes to the terms and conditions of a 3rd party sale may be considered a new offer. In this case, the Right of Refusal process restarts, and the seller must present again to every nonprofit that declined the original offer. COPA also allows for “conditional” 3rd party sales agreements. If a seller wants to accept an offer from a 3rd party or if the seller makes an offer a 3rd party wishes to accept, the deal may be accepted so long as no qualified nonprofits exercise their Right of First Refusal. Barring complex 3rd-party sale scenarios, however, COPA primarily means nonprofits get a head start when bidding for 3+ unit properties, which may be factored into your real estate agreement when working with an agent.

4. New procedure to legalize illegal units to fight housing loss

San Francisco has been struggling with housing loss for years. In a booming market like the Bay Area, housing loss makes housing less financially accessible and damages neighborhoods. To fight housing loss, the board passed new limits on removing illegal dwelling units. There will be fewer exceptions to the requirement that the Planning Commission personally approves the removal of illegal units. However, legalizing can prove costly and may not always be worth pursuing. How will the Commission decide if a unit being removed is worth legalizing?

First, the Commission will compare the cost to legalize the unit versus the added value legalizing the unit would give the property. The unit can be legalized if the increase in the property’s value is at least equal to the cost of legalization. Second, the Commission will compare the cost to legalize the unit under local codes to the average cost to legalize a unit based on the Planning Department’s Master List of Additional Dwelling Units Approved and their costs. However, if the cost of legalizing poses a financial hardship to the property owner, the Commission may be able to assist with city funds. This new assessment procedure aims to eliminate housing loss while making the legalization process more efficient and personal.

5. Fewer Rental Restrictions For Condos

New California laws aim to increase affordable housing by limiting how homeowners associations (HOAs) can restrict rental CIDs (Common-interest Developments). HOAs must amend their governing documents to conform to these new laws.

Starting January 2021, a new civil code section requires the governing documents (project declarations, CC&Rs, HOA bylaws, HOA rules, etc) of a CID to not prohibit the rental of a unit.

First, minimum lease terms (even for HOAs) cannot be greater than 30 days. This means regular lease terms of 6 months or 1 year are no longer valid. Next, the maximum number of rentals permitted in a CID can’t be less than 25% of the units in the project. However, accessory dwelling units (ADUs) rentals are exempt from the 25% cap. All HOAs are required to amend their CC&Rs and other documents to meet these requirements by December 31, 2021.

While this may create more available and affordable housing, it may also create a hassle for existing HOAs and condo owners, especially those with 6 months to 1-year leases. HOAs should review their governing documents to ensure they’re in compliance with the new law.

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULUS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

COMMERCIAL REAL ESTATE PROS & CONS

ABOUT CRYSTLE

As the CEO of a San Francisco-founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10+ years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native-born and raised in San Francisco, you can trust that you’re in the good hands of a local who can help you navigate the micro-neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long-standing, and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop micro-housing. Her time serving on boards for these nonprofits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

HER CURRENT FOCUS WITH REAL ESTATE CLIENTS IS TO WORK AND PARTNER WITH CHURCHES, NONPROFITS, AND AFFORDABLE HOUSING DEVELOPERS.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship-focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer with Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariMarch 31, 2021Comment

Commercial Real Estate Pros + Cons

Commercial properties offer higher returns and more passive income than almost any other type of investment. The wide variety of commercial properties makes them especially appealing––buyers can find a huge profitable property just about anywhere regardless of property values. Commercial properties usually boast annual returns between 6% and 12% off the purchase price, much higher than the typical 1% to 2% returns for single-family home properties. While profits on a single-family home depend on property values, maintenance, and a good bit of luck in timing, a commercial property should earn enough income to pay for itself in just a few years.

No investment is without risk. The wide variety of commercial properties means there are almost as many ways a property deal can go wrong as it can be profitable. It’s especially important for buyers to have all the information they need to make the right choice in such a diverse market. Before putting your savings into a commercial property that could be with you for life, read some of this key information on financing, risk, and property management to help you make the right call:

Financing

You don’t have to buy a property with your own personal savings, but the wrong financing option could cut both your profits and savings down to almost nothing. Although there are definitely pros and cons to any financing option, the worst financing decision of all is to make a decision without all the facts. Knowing how to structure your purchase so it’s manageable and matches your returns will keep your profits out of the bank’s pocket.

Knowing how to structure your purchase so it’s manageable and matches your returns will keep your profits out of the bank’s pocket.

Con: Commercial property loans tend to have shorter terms than residential loans, ranging from only 6 months to 20+ years. Usually, rates are higher than residential loans too. Prepayment restrictions and penalties are also more common.

Pro: There are almost as many financing options as there are types of commercial properties. This huge variety means there are plenty of options for both first-time buyers and veteran investors to buy a property with little to no money down. If you pick a good property with fair financing, the income you earn will pay for the property and pay for the property and the loan in no time. Buyers looking to keep the bank out of their hair can also consider a seller-financed deal. This financing option means sellers handle the mortgage process instead of a bank, with a buyer signing a mortgage directly with the seller. However, this can be risky for both parties and balloon payments are often required for years after the sale. Other financing options like wrap around mortgages and small business association (SBA) loans are also popular with commercial real estate investors.

Con: Too much of a good isn’t a good thing, especially when it comes to complicated financing choices with even more complicated fine print. While there are hundreds of ways to finance a property, there are probably only a few that are feasible for you. Picking an impractical financing option can cut your profit potential passive income to a fraction of what it should be. Keep a close eye on interest rates, fees, and other transaction costs to ensure you earn the profits from your investment, not the bank. At Commercial Academy you can find intuitive software tools to help you evaluate all the elements of your property so you can make an informed financing choice.

At Commercial Academy you can find intuitive software tools to help you evaluate all the elements of your property so you can make an informed financing choice.

How can you tell if a rental property is even worth financing? Many investors turn to the 2% rule for a ballpark estimate of a property’s profitability. The 2% rule says a rental property is a good investment if the total monthly rent is equal to 2% or more of the purchase price. As long as you can get rent at 2% of the purchase price, the property will pay for itself in about 4 years. Compare the price of the property to some of the rent listings in the area, especially for properties similar to the one you’re considering. If your rent estimate will cover the cost of the property and then some, it could be worth looking into financing options.

Risk

Not only do buyers need to consider the risks before starting a commercial real estate venture, but banks also consider risk when calculating interest rates. A low-risk loan will likely carry a much lower interest rate than a high-risk loan so the bank doesn’t have to worry about getting their money back if the venture fails. However, there’s a lot more to risk than the number on your mortgage, with pros and cons beyond the interest rate:

Pro: Good property insurance offsets risk and covers the underlying property in case of catastrophe. A fire could destroy both your property and your rental cash flow instantly. Since the underlying property is treated strictly as an asset generating a rate of return, buyers should also be careful in assessing underlying damage or defects that could cause catastrophe down the line. If a tenant discovers they’re sharing a flat with termites, your investment could fall apart faster than your walls. Undetected risks should be written clearly into the purchase contract to protect you from catastrophes that may already be lurking in the property.

Pro: Commercial real estate often comes with long leases. Your tenant businesses need stability as much as you do and probably want to stay in the same space long-term to avoid confusing clients. On average, commercial leases last 3 to 5 years. Lengthy lease times reduce risk and almost guarantee steady cashflow. If you follow the 2 percent rule, an average 4-year lease length should be almost enough time to cover the purchase price.

Con: Commercial real estate assessments are more complex (and often less accurate) than residential real estate assessments. When buying a residential property, property values determine if it will turn a profit. Although property values matter for commercial property success, finding businesses and individuals to rent your space matters most. Assessing property values is already hard enough. Factoring in all the additional economic, demographic, environmental, and even political elements that go into rental interest can leave investors scratching their heads.

While commercial properties can succeed in more ways than residential properties, there are so many more ways they can fail. Commercial ventures have more moving parts than a simple asset you buy and hold. Businesses are inherently risky. Most fail within 5 years, often for little reasons nobody expected when the venture started. Do people want to rent in your area now? How about next year? Or the next decade? While circumstances are often out of our control, research and preparedness can help protect you no matter what. Doing your due diligence can save you immense heartache, either from investing in a property that failed or missing out on an incredible property that could have changed your financial life forever. You can use Commercial Academy’s virtual visit tool to get census data, online property views, and other information you’ll need to make an informed investment decision.

Property Management

While passive income is a selling point for commercial real estate, it’s up to the buyer to decide how passive. Do you not have the time or the skills to manage the property yourself? You can hire a property manager to handle everything so the only thing you have to worry about is getting a check every month. Although a property manager can save you time, finding a property manager at a fair rate can cost lots of time and money on the front end.

One of the more popular ways to hire a property manager is to find someone you trust, maybe a friend or family member, and give them a free unit on the property. Not only will this offset labor costs, but the property manager will also be accessible to tenants as they share an address. This can make collecting rents and addressing tenants much simpler and cut through red tape. Having a property manager you trust on the property can put your mind (and your tenant’s!) at ease, leaving all parties feeling supported.

Having a property manager you trust on the property can put your mind (and your tenant’s!) at ease, leaving all parties feeling supported.

For more extensive professional property management services, you can hire a 3rd party property management company and let them handle anything. Their company will dispatch a manager if anything goes wrong. However, this can be much pricier with longer wait times for tenants. Tenant-landlord relations can easily sour if tenants don’t trust the property management company. Even with the company’s more extensive services, the owner still has to deal with issues like missed rent payments or lease violations. While the third party company probably handles simple material issues brilliantly, the owner will likely have to have to handle important human and executive decisions, which can be even more stressful.

Pros: Property management eliminates a massive amount of work for owners. This frees up time to handle executive decisions for your investment and worry about big picture issues rather than putting out little fires every month, sometimes literal. You can also deduct property management costs from your income statements, which lowers your taxes.

Cons: No third party will be as driven as you to manage client-owner relationships. Even if you hire a property manager you trust, it’s still up to you to set a vision and a tone for your commercial property. You the owner has to handle all executive decisions and keep the business alive. While the income may be passive, crafting and following through with a successful investment strategy is anything but. At Commercial Academy’s live events, investors learn to identify strong investment strategies, identify great properties, and build a vision for long-term growth. Most small businesses fail after 5 years, with 12% of rental businesses failing within the first year. It’s important to have a good strategy before you put a good chunk of your savings into an investment that could easily fail.

Summary

While there are certainly cons to investing in commercial real estate, the passive income, high-risk protection, and abundant cashflow make it safer and more profitable than almost any other investment out there. The reward requires some risk, but what reward doesn’t? If you do your research and arm yourself with a good agent, investing in commercial real estate could be one of the most profitable and rewarding decisions you ever make. Schedule a free consultation with CKW Real Estate today!

STILL HAVE QUESTIONS? CALL (415) 854-2224 OR EMAIL ME AT CRYSTLE@CKWPROPERTIES.COM TO GET ANSWERS TO ALL OF YOUR QUESTIONS!

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULUS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

ABOUT OUR FOUNDER, CRYSTLE WONG

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10+ years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

Through 2020, Crystle has focused on working with local Churches, nonprofits, and affordable housing developers.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations with a successful track record of housing and reintegrating those at risk back in her hometown of San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty. COVID19 has really shown Crystle and her husband how blessed they are. They now do a weekly homeless hot meal distribution for those in need on the streets of their neighborhood.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariDecember 27, 2020Comment

Prop 19 Property Tax Changes & Actions to Take

California passed Prop 19 last month in November, eking out a 51% majority. While the margin may be thin, the effect on homeowners is huge. The new proposition changes property tax rules for buying, selling, and inheriting houses. This especially impacts older homeowners, older homebuyers, and relatives inheriting properties that already face property tax liability. Prop 19 is terrific for older people looking to buy a home, but it puts pressure on younger people who want to get into real estate. There’s good and bad news.

First, the bad news: inheriting property is about to get pricey. Prop 19 scales back “intergenerational transfer” protections, meaning relatives inheriting homes or rental properties after February 15, 2020 will be slapped with increased property taxes.

Usually, property taxes in intergenerational transfers are based on the original purchase price, not the home’s market value. Before Prop 19, a mysteriously rich grandfather could transfer his home and up to a million dollars of assessed value to a lucky grandchild without the property tax bill changing. But starting February, property taxes will be assessed based on the current market value unless the property is both parties’ primary residence. Grandad’s home is sure to be pricier in 2021 than when he bought it in 1970. His grandkid’s property tax liability will spike under Prop 19, unless both grandkid and Grandad both live there. Prop 19 increases property taxes on these types of generational hand-offs, making lucky heirs less lucky.

The good news? Baby boomers get a tax break. Californians age 55+, Californians with disabilities, and Californians affected by wildfires all get property tax breaks when buying new homes. Before Prop 19, the mysteriously rich grandfather would see his property taxes spike when buying a new house. He probably would have downsized if he moved at all, buying a smaller home to avoid huge tax increases. But starting February, older people get reusable (up to 3 times!) tax breaks they can use anywhere in California. If a senior moves into a home that’s at least as small as their old home, their taxable value stays the same.
When seniors move to a bigger property, taxes will be assessed based on the difference between the price of the new home and the sale price of the old home, plus their original assessment. This makes it much cheaper for the boomer grandfather to buy a new home. He could even trade up. For example, if his original assessed value was $400k on his 2-million-dollar home and he plans to move into a 3-million-dollar home, Prop 19 would make his new assessment 1.4 million. Sure, this is still higher, it’s far below what he’d usually pay.

It’s too early to say how the real estate market will react to Prop 19 long-term. The increased tax revenue from inheritances will fund badly needed relief programs, but it may also hurt family rental businesses already struggling with frozen rent payments. But in the short-term, the California Association of Realtors is convinced Prop 19 will increase home sales. They spent millions on advertising in the hopes that Proposition-19 would make 2021 such a good year to buy real estate that sales would reach healthy levels, even in the pandemic. Only time will tell how Prop 19 changes California real estate, but there are important steps homeowners and aspiring homeowners can take now to prepare for the fallout.

1. Transfer family properties now, not later

At the time of publication, it might already be too late. Property transfers take about 3 months on average, putting most readers past Prop 19’s February 16 start date. But if you’re gung ho about giving a home to a family member without a tax hike, you may be able to squeeze in the transfer with expedited paperwork and a good attorney.

2. Seniors, take advantage of the tax breaks

If you’re disabled, above 55, or were affected by wildfires/natural disasters, Prop 19 incentivizes you to buy a new home in California. If you’re eager to downsize, escape your zip code, or even just be closer to family, this tax break makes moving cheaper. Plus the tax break can be used 3 times, meaning you could flip 3 houses without your property taxes skyrocketing. If you have experience with flipping or just want to buy in a zip code where the property values are rising, Prop 19 makes 2021 a great year to move.

3. Under 55, take advantage of low prices

If you’re too young to get the tax break, you can still benefit from the tax break. Prop 19 encourages seniors to sell because buying a new place is profitable, not selling. Prop 19 is all about the difference between sale prices of the old and new homes, meaning a thin profit on a home sale could mean less property taxes later. Many seniors are eager to get out of the cities and take advantage of this tax break, meaning they may not drive a very hard bargain. Getting the highest possible sale price could be an afterthought with both Covid and Prop 19 pressuring them to move, meaning plenty of homes could be sold below market value soon. Look out for new listings.

4. Research, research, research

Realtor associations already spent millions of dollars trying to educate people about Prop 19, they probably don’t see their first victory lap as a good time to give crash courses. You’ll want to do your research and do it fast, at least while Prop 19 is still sending out its first shockwave. Settle on the kind of property you’re looking for and then find a knowledgeable agent.

5. Be prepared to jump

Both senior sellers and younger buyers should get ready to make a big move, both physical and financial. This means getting your finances, career, and personal life ready as you begin to search for a home, which can be draining even when there isn’t a pandemic and new propositions shocking the state. While jumping at a low-cost home sale might seem like the right thing to do, it’s really only feasible after a great deal of research and preparation. Make sure you’re in a place where you’re not only able to jump when the perfect home goes on sale, but that it makes financial sense to do so.

Be prepared to jump through bureaucratic hoops as well. California’s lockdowns and social distancing will almost certainly stretch into 2021. At the very least they’ll still be in place as Prop 19 goes into effect in February, meaning buyers should be prepared for virtual tours, screenings, lengthy wait times, and lots of masks. While social distancing can complicate buying, these measures also socially distance your competition from great prices. Open house crowds have vanished and waitlists have disappeared. While traumatic, Covid might thin both competition and thin sale margins as California practically gives seniors money for selling their homes. Prop 19 could make the coming months a once-in-a-lifetime opportunity to buy your dream home at a low price, making 2021 almost as memorable as 2020.

STILL HAVE QUESTIONS ? CALL (415) 854-2224 OR EMAIL ME AT CRYSTLE@CKWPROPERTIES.COM TO GET ANSWERS TO ALL OF YOUR QUESTIONS!

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

HOW TO CHOOSE A REALTOR TO SELL YOUR INVESTMENT PROPERTY IN SAN FRANCISCO: 5 ESSENTIAL TIPS

ABOUT OUR FOUNDER, CRYSTLE WONG

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10+ years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations with a successful track record of housing and reintegrating those at risk back in her hometown of San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariDecember 9, 2020Comment

How to Choose a Realtor to Sell your Investment Property in San Francisco: 5 Essential Tips

San Francisco real estate is always in hot demand, making this a popular area for investment properties, but what about when the time comes to sell the property? In this post, I want to share a 5 tips on how to choose a realtor to sell an investment property for maximum value.

5 Tips To Find The Right Realtor For Your Investment Property Sale

#1 Find a Local Realtor.

Selling an investment property requires all of the same skills and services needed to sell your main residence. That means you'll want to work with a local San Francisco realtor to sell your investment property. Local realtors have current, insider knowledge of area market conditions – what homes are selling for, where they are selling, who is buying, what buyers are looking for in a property, etc. This knowledge can be incredibly useful as you sell an investment property because it will help you price the property correctly and get it on the market - especially during a pandemic!

#2 Check the Realtor's Experience.

As you research and speak with local realtors, be sure to find out what kind of experience they have with selling investment properties in particular. Investment property buyers are a different category of buyer from the usual and investment properties may hold their value differently than traditional properties in the area. You'll want a realtor who knows his or her way around investment buyers and how to work with them. You'll also want to take into account the type of investment property that the realtor has sold in the past. Is it commercial? Industrial? Residential? Make sure the realtor has the experience or knowledge with the type of property you want to sell. Ask for references or to see examples of investment properties the realtor has sold recently so you can get an idea of the kind of properties sold, to whom, and for how much.

#3 Look For a San Francisco Realtor With Connections to the Investment Community.

As you think about how to choose a realtor to sell your investment property, think beyond simply having sales experience. Ideally, the realtor you choose will have strong ties with the San Francisco investment community. Real estate is very much about building connections and relationships with other professionals in the industry. In traditional property sales, those professionals may be mortgage lenders, real estate attorneys, appraisers, title companies, and even handymen. In an investment property sale, you'll want a realtor who knows people who are interested in investment properties – either for themselves or for their own clients. Your realtor's relationships with these interested parties can help you sell a property faster and for more money than you may be able to get with a realtor who does not have the same connections.

#4 Do They Have Personal Investment Experience?

It never hurts to use a realtor who also invests in properties. Realtors who are investors themselves will have first-hand knowledge and experience that they can draw on to streamline the process and explain it to you. They are less likely to make guesses and more likely to spot red flags than someone who does not have this personal experience. You might even gain some tips that can help you become a more successful property investor!

#5 Find Out What's Included in the Real Estate Fees.

Real estate agents work for a licensed broker or brokerage in order to sell properties and represent buyers and sellers throughout the process. There are a few different ways brokerages charge for these services so it's best to ask about fees and commissions up front and the services you'll receive in exchange so you know what you'll be paying for. Your options include:

Fee-For-Services Brokerages. Think of this as an ala carte service. You'll only receive the services you pay for. Sometimes that is just the bare minimum of listing the property or helping with contract negotiations. You may have to handle most of the marketing, open houses, showings, and buyer questions by yourself.
Flat-Fee Brokerages. These brokerages offer more services than the fee-for-service brokerages, but still leave you to handle a lot of the process and marketing of the home on your own.
Full-Service Brokerages. These types of services will help you at every step along the way. They will oversee all of the marketing, staging, listing, open houses, buyer contact, and negotiations involved in selling an investment property.

There is no right or wrong answer as to which brokerage you should choose; it all depends on how much time and effort you are able to put into selling the property yourself. Some people love to be in the thick of it while others want to hand it all off to a professional. The point is to be aware that different kinds of brokerage services exist and make sure you're comparing apples to apples when you explore how to choose a realtor to sell your investment property.

Still have questions about how to choose a realtor to sell an investment property in San Francisco? Call (415) 854-2224 or email me at crystle@ckwproperties.com to get answers to all of your questions and see if I can help you sell your property.

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULS $$$

HOW SAN FRANCISCO REAL ESTATE GOT SO EXPENSIVE AND WHY SF REAL ESTATE VALUES HOLD

ABOUT OUR FOUNDER, CRYSTLE WONG

top San Francisco realtor, CKW Real Estate

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10 years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Clemence RogerJuly 28, 2020Comment

How San Francisco Real Estate Got So Expensive And Why SF Real Estate Values Hold

San Francisco is infamous for consistently high housing prices; both purchase prices and monthly rental costs are among the highest in the country. While it's easy to say that San Francisco real estate prices are a simple matter of supply and demand, a closer look shows that the issue is more complex than that. Keep reading for more information!

Building Up Is Not An Option

You may not have thought about it from this perspective, but San Francisco is one of the "shortest" major cities in the country. San Francisco is a peninsula. That's one of the reasons we love the city so much, but it makes development difficult. Once the city was built-out at the ground level, the only way to add more housing density (i.e. supply) is to build up. However, zoning restrictions have limited the height of San Francisco buildings to just 40 feet in most areas of the city. That means the city is full of buildings that are just one to three stories in height. While the restrictions were intended to help protect all the things we love about the city – the views, the sunset/sunrise, the historic feel – it had the unintended consequence of limiting housing supply and, as a result, driving up the cost of housing.

A side benefit is that most areas of the city have views of the water, especially given that the city is surrounded by water on 3 sides!

Anti-Growth and Development Policies

Exacerbating the problem of inadequate housing supply is a very strong anti-growth and development culture among residents and elected officials. The height limitation is just one example of this. People move to San Francisco because it is a different kind of city. It's a city that doesn’t feel too much like a city and residents want to preserve that feel. This has led to very restrictive development regulations and processes. It's not uncommon for new developments or redevelopment projects to spend several years going through the approvals stage before the green light is given and construction starts. During that time, residents have plenty of opportunities to oppose or appeal to the project and they very often succeed in derailing development. Again, this lack of development equates to fewer housing units and higher prices.

The Tech Effect

It's almost a local pastime to blame the tech industry for driving up San Francisco real estate prices and there is some truth it, but the tech industry can't bear all the blame. Yes, the industry boom created a huge influx of highly skilled and highly paid white-collar workers who could afford to pay sky-high prices, but if there were more stock available, those workers wouldn’t have had to compete with one another for housing and drive up prices as a result. The fact is, San Francisco is home to major tech employers who pay their people well. Those same people want to live convenient to work and can afford to outbid competitors.

Because of COVID19, only the future will tell how the impact of working from home affects real estate prices in Silicon Valley, particularly San Francisco. We’re seeing many large tech companies offering employees the choice to work from home indefinitely.

Lack of Supply and Steady Demand Keep San Francisco Real Estate Values Stable

As a realtor, I have to say it: It's all about location. San Francisco has always been an in-demand place to live. It's full of history and culture. It’s inclusive and diverse. It's a gorgeous Northern California location on the coast. You have easy access to the wineries of Napa Valley, the sunny beaches of Southern California, snow covered mountains of Tahoe, and more! It has all of the amenities of a city but doesn't feel too city-like from the family neighborhoods. It also has a limited amount of housing and a strong local economy. All of these factors and more combine to hold home values steady in San Francisco.

When there is a consistent steady demand for housing, but a limited amount of housing available, prices naturally stabilize or even increase as has been the case with San Francisco real estate. That's good news for anyone who currently owns a home in San Francisco. If the past is any indication, your home will maintain its value or increase in value over time. If you're trying to move into the city, it can be problematic as prices can be expected to remain high as long as demand is there – and demand is always there.

Are you in the market for San Francisco real estate? There are some steals on the market right now and I've love to get you into your dream home! Call me at (415) 854-2224 or email me at crystle@ckwproperties.com to get the process started!

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULS $$$

ABOUT OUR FOUNDER, CRYSTLE WONG

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10 years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Clemence RogerJuly 7, 2020Comment

San Francisco: Is Now a Good Time to Sell a House?

The COVID-19 pandemic has turned lives upside down for people all around the world. It's no wonder homeowners are wondering if it is a good time to sell their home. While buying and selling a home is as much about personal timing as it is the market, 2020 may end up being the best time to sell a house in San Francisco.

4 Reasons Why Now May Be The Best Time To Sell A House In San Francisco

California has always been a hot real estate market — **1. California real estate has always been a hot market.**

Even with a raging pandemic, it is no different today. We are seeing soaring demand among renters and buyers at all levels. Some people finally have time to devote to a home search. Many are out looking for a great deal. And still others have seen the lockdowns as a reason to buy a home with space to spread out a bit.

Low interest rates on mortgages — **2. Low-interest rates.**

At the time of this post, 30-year mortgage rates are under 4%; 15-year rates are even lower. Low rates always generate interest among homebuyers. It opens the door to homeownership for first-time buyers and gets subsequent buyers and investors thinking about the possibilities. (Ask us to refer you to a great lender!)

Beat the dip - low number of new listings May 2020 — **3. Beat the dip.**

If you have been thinking about selling but haven't put your house on the market yet, now may be the best time to do so. If we do enter a recession, home prices are likely to fall and demand will dry up. That's a bad mix for sellers; take advantage of the time of year, high demand, and the stable prices we are enjoying now to get the best price for your home. Statistics show that there currently is less competition of homes on the market compared to past years.

Less real estate inventory due to COVID19 — **4. Less inventory, less competition.**

People have been skittish about putting their homes on the market this spring. That means there is less inventory for buyers to choose from – and less competition for you. Putting a home on the market right now will generate interest if for no other reason than the fact that it's a fresh listing. Statistics show that new listings for both single-family homes and condos dropped by over 25% compared to previous years.

There Is Demand For Your San Francisco Home

There is still a lot of uncertainty surrounding COVID-19 and it's natural to wonder if now really is the best time to sell a house in San Francisco, but based on data I've seen from around the country, home sales are rebounding as states open back up. There is always a demand for homes in San Franciso, so if the time has come that you feel the need to sell your home, now is a great time to put it on the market.

The same key factors that make a home desirable at any other time still apply now. Buyers are looking for well-maintained homes that are priced competitively to the market and meet their needs. Recent transactions during COVID19 show that single-family home and condo sales show that sellers are getting over 100% of the list price still.

If this sounds like your house, contact me at (415) 854-2224 or crystle@ckwproperties.com for a free market analysis and to discuss listing your home this summer.

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

CONFIRMING WITH THE IRS WHERE TO SEND YOUR STIMULS $$$

About our Founder, Crystle Wong

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10 years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariMay 21, 2020Comment

Confirming With the IRS Where to Send Your Stimulus $$$

How to confirm with the IRS where to send your stimulus money

Part of the recent $2 Trillion stimulus package from the United States government includes a one-time check for up to $1,200 to those who qualify. Americans with a social security number will automatically receive a coronavirus stimulus payment. This stimulus payment is really an advance tax credit meant to offset your 2020 federal income taxes.

Who gets a stimulus payment?

Anyone with a social security number
Anyone who filed taxes in 2018 or 2019, or those who don’t earn enough to file for taxes but receive Social Security payments
Anyone who earned less than $99,000 for single filers, $136,500 for heads of households, or $198,000 for married filers
Anyone who is not claimed by someone else as. a dependent

I haven’t received my stimulus payment yet, what can I do?

The IRS has a website you can go to confirm your payment, check your payment status, and confirm or provide your bank account information for the payment.

Confirm My Payment

How should I use my stimulus payment?

Bankrate.com issued a stimulus check survey with 980 respondents. Check out their survey results below!

How most Americans plan to use stimulus check 2020

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

About our Founder, Crystle

San Francisco realtor, Founder of CKW Real Estate

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10 years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariMay 4, 2020Comment

Construction Updates for Shelter-in-Place: SF and San Mateo Counties

SAN FRANCISCO + SAN MATEO COUNTY UPDATE

These new orders from April 29, 2020 supersede previous orders and are effective from May 3, 2020 11:59 PM through May 31, 2020 11:59 PM. These new orders allow for construction with certain regulations and limitations.

LINK TO SAN FRANCISCO’S ORDER: https://www.sfdph.org/dph/alerts/files/HealthOfficerOrder-C19-07c-ShelterInPlace-04292020.pdf

LINK TO SAN MATEO COUNTY’S ORDER: https://www.smcgov.org/sites/smcgov.org/files/documents/files/Health%20Officer%20Order%20Revising%20Shelter%20In%20Place%20Through%20May%2031.pdf

Both orders reference Appendix B-1 which can be found below.

“…the Order allows all construction to proceed as Essential Business, consistent with the State shelter-in-place order, so long as it done safely in accordance with specified health protocols. The order includes a protocol for small projects, which means projects of 10 or fewer residential units or commercial projects with less than 20,000 square feet, and a separate one for large projects. “
“this Order makes clear that face coverings are required for operators and customers of outdoor businesses as well as construction, with certain limitations.”

Below you can find a copy of “ORDER OF THE HEALTH OFFICER No. C19-07c Appendix B-1 “ which more clearly outlines regulations for construction.

Here are some key points:

This SCP Protocol does not apply to construction projects where a person is performing construction on their current residence either alone or solely with members of their own household.
Designate a site-specific COVID-19 supervisor or supervisors to enforce this guidance. A
designated COVID-19 supervisor must be present on the construction site at all times during construction activities. A COVID-19 supervisor may be an on-site worker who is designated to serve in this role.
Establish a daily screening protocol for arriving staff to ensure that potentially infected staff
do not enter the construction site. If workers leave the jobsite and return the same day, establish a cleaning and decontamination protocol prior to entry and exit of the jobsite. Post the daily screening protocol at all entrances and exits to the jobsite.
Where construction work occurs within an occupied residential unit, separate work areas
must be sealed off from the remainder of the unit with physical barriers such as plastic sheeting or closed doors sealed with tape to the extent feasible.

Small Construction Project Safety Protocol: Appendix B-1

Small Construction Project Safety Protocol: Appendix B-1 Page 2

Small Construction Project Safety Protocol: Appendix B-1 Page 3

Small Construction Project Safety Protocol: Appendix B-1 Page 4

LINKS TO OTHER BLOG ARTICLES

GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

WHAT THE CARES ACT MEANS FOR YOU (CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT)

About our Founder, Crystle

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10 years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariApril 30, 2020Comment

What the CARES Act Means for You (Coronavirus Aid, Relief and Economic Security Act)

As we're all dealing with the effects of COVID-19, I want to share encouraging news: the federal government has approved the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act which will help millions of people in this critical time. Perhaps even you.

This sweeping legislation is unprecedented in the history of our nation and will send money directly to Americans, greatly expand unemployment coverage and make a number of other changes to address the impact of COVID-19. The CARES Act is over 800 pages long, but according to this article from The New York Times on The CARES Act, here are some of the economic provisions most relevant for you.

What does it mean for you and your loved ones?

You may be eligible for a one-time cash payment.

Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200.

Married couples who qualify would each receive a check, and families that qualify would get $500 per child.

That means a family of four earning less than $150,000 can expect $3,400.
*Information from CNBC.com

COVID19 Stimulus Payment Check (CNBC.COM)

If you or someone you know has lost a job

States will still continue to pay unemployment to people who qualify.

This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state.

That boosted payment will last for four months.
*Information from edd.ca.gov

Programs and Benefits Available (EDD.ORG)

If you're a small business owner

The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses who qualify for the Economic Injury Disaster Loan to cover immediate operating costs.
*Information from SBA.gov

Click here for a downloadable checklist and guide from the U.S. Chamber of Commerce!

Small Business Guidance & Loan Resources (SBA.GOV)

If you're a freelancer OR independent contractor

Unemployment coverage may be available to freelancers and independent contractors and also provides an additional $600 per week for 4 months in addition to regular state benefits.

Typically, self-employed people, freelancers and contractors can't apply for unemployment.
*Information from NYT.com

Stimulus Checks, Unemployment and the Coronavirus Plan (NYT.COM)

inYou can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days. Investors and multi-family borrowers may request a similar forbearance.

If you're a property/homeowner

You can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days. Investors and multi-family borrowers may request a similar forbearance.

*Information from NYT.com
**Please contact your lienholder to see if you qualify!

Stimulus Checks, Unemployment and the Coronavirus Plan (NYT.COM)

Additional Information
• • •
To learn more about all the contents in the CARES Act
Click here to view this article.

If you have further questions or additional information, please consult with your CPA and Attorney.

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GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

TO BUY OR NOT TO BUY IN SAN FRANCISCO DURING SHELTER-IN-PLACE

About our Founder, Crystle

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10 years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California, the APA Heritage Foundation Committee of San Francisco, and volunteer for Mobilize Love. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

CRYSTLE WONGAPRIL 8, 2020

FACEBOOK

Crystle VitariApril 8, 2020

To Buy or Not to Buy in San Francisco During Shelter-in-Place

With COVID19 rapidly spreading through the United States as well as the rest of the world, governments are mandating people to stay home. In San Francisco, Mayor London Breed has ordered a shelter-in-place through May 3rd with only essential workers and essential businesses able to be open. Everything from schools to offices, churches, and restaurants are all closed with the exception of restaurants who can adapt to take-out or delivery only options.

While home buying in the best of markets is already daunting, rest assured realtors are quickly adapting to provide ways to go about assisting you with home buying safely during this pandemic. With the support and partnership of California Association of Realtors and the government, there are many ways you can shop for homes at a safe social distance, or even remotely that may not have been an option in the past.

As of March 31, 2020, the Department of Public Health Order of the Health Officier released an order clarifying real estate agents as essential workers under specific terms and guidelines.

More specifically it says, “Service providers that enable residential transactions (including rentals, leases, and home sales), including, but not limited to, real estate agents, escrow agents, notaries, and title companies, provided that appointments and other residential viewings must only occur virtually or, if a virtual viewing is not feasible, by appointment with no more than two visitors at a time residing within the same household or living unit and one individual showing the unit (except that in person visits are not allowed when the occupant is still residing in the residence);”

While social distancing efforts are recognized and enforced throughout San Francisco, eager real estate agents will bend over backward to get you the information you need to make informed decisions. Brokerages are developing and encouraging agents to develop and adopt new virtual tools to keep buyers and sellers informed and engaged while maintaining social distancing. This means you should have easy access to virtual open houses and property tours. It also means you’ll have less competition during the coronavirus lockdowns when bidding on properties as many other buyers will likely be hesitant to move forward.

Construction during San Francisco's shelter-in-place

If you choose a property that requires construction, the good news is that San Francisco’s County Order allows for construction workers to work on any residential construction projects necessary to making it habitable.

While mortgage rates continue to fluctuate based on the spread of COVID19 and government financial reactions and potential bank bailouts, it’s still possible to get a pre-approval and opt to get new pre-approvals as rates fluctuate. Mortgage lenders only need to do a soft credit check which does not affect your overall credit score in order to get you a formal pre-approval to bid on your dream property. Historically and statistically San Francisco real estate prices have always held their value with little fluctuation. Investors and financial experts alike can agree that real estate is a good investment.

Putting your money into real estate, unlike many other options, is an asset for you that you can leverage in the future for more funds. If you purchase a typical older Victorian building San Francisco is known for, you will likely end up with a second unit you can rent for passive income to help offset your expenses.

If you’re thinking of buying or selling, it’s a good idea to get in touch with a knowledgeable, licensed local realtor. Write down all of the pros and cons so your real estate agent can help walk you through the ever-changing San Francisco real estate market during this pandemic.

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GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

About our Founder, Crystle

San Francisco realtor, Crystle of CKW Real Estate

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last 10 years including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. As a native born and raised in San Francisco, you can trust that you’re in good hands of a local who can help you navigate the micro neighborhoods of San Francisco. Crystle invests in relationships and you can count on her to walk with you through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California and the APA Heritage Foundation Committee of San Francisco. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariApril 8, 2020

Governor Gavin Newsom Halts Evictions - Homeowners and Landlords Affected

CA's Executive Order Effect on Real Estate

Governor Gavin Newsom signed an executive order on Monday, March 16, 2020 halting evictions for those affected by the Coronavirus. Of course, criminal activity is still grounds for eviction, but with the courts practically closed, any kind of eviction will prove to be difficult. The order extends through May 31, though it could very well be extended. What does this order mean for homeowners and landlords?

1. No Evictions for Non-Payment

Non-payment of rent is no longer grounds for eviction if caused by the impact of the Coronavirus. If tenants, residential or commercial, can’t pay rent due to the effects of the Coronavirus, they must notify their landlord within one week, along with documentation or other proof that Coronavirus measures have affected them financially. This one week notification period may differ from county to county. San Francisco County has a one week time period. Such proof might include documentation that a tenant’s business is closed, that they’ve been laid off, or that they’ve received little to no pay. Three months’ worth of bank statements showing low or reduced funds will likely also be requested by landlords.

While rent may be deferred, it is not to be mistaken for being waived. Landlords are still entitled to recover rent according to the executive order from Governor Gavin Newsom. Landlords, however, can’t evict a Coronavirus-impacted tenant for non-payment. Base rent does not change, and landlords can still collect. Eventually. Counties vary on the length of rental payment deferrment caused by COVID19. For San Francisco, rent may be deferred with proof for up to 180 days once the shelter-in-place is lifted. If after looking at proof and bank statements or P&L statements for a business, landlords may still request partial rent due each month.

How Governor Gavin Newsom's Executive Order Effects Real Estate

2. No-fault Evictions Banned in Many Cities

San Francisco Mayor London Breed echoed the governor’s executive order, announcing that non-payment evictions are off the table into mid-April. No-fault evictions, where landlords move into a property themselves to evict tenants, are also banned. Many California cities are following suit.

The San Francisco Sheriff's apartment announced a halt in eviction assistance, meaning landlords wouldn’t have access to the normal police force to evict tenants even if they had legal grounds to do so. With courts all over the country affected by the Coronavirus, filing any legal dispute is likely to be extremely difficult to act on.

3. Mortgage Relief

What happens to homeowners who can’t make their mortgage payments? Many will be eligible for reduced payments or even suspended payments for up to a year. About half of home loans in the US have adopted forbearance policies, and it seems like the other half is following suit.

A mortgage forbearance is an agreement to stop making payments or lower your payments to an affordable level on a temporary basis during your hardship. This is not the same thing as mortgage forgiveness. Owners will still have to pay back mortgage payments deferred during the Coronavirus crisis. Like with California’s non-payment eviction halt, being eligible for forbearance requires proof that the Coronavirus has directly affected the owner. Like tenants, mortgage-holders still have to pay. Eventually.

Mortgage Forbearance during COVID19 in California

4. No Foreclosures and Utility Shut Offs

Governor Gavin Newsom’s executive asks banks to halt foreclosures until March 31, 2020. The Trump administration also announced a suspension on homeowner foreclosures at least until the end of April.

The executive order also keeps utilities going for tenants and homeowners who can’t pay due to Coronavirus measures. Governor Newsom asked customers not to be fined for late payments on utilities like internet, gas, electricity, and water. The governor also tasked the State Utilities Commission to make sure companies are making efforts to halt utility shutoffs. In short, if you can’t pay your bills this month, the power won’t get shut off and you won’t be kicked out of your home. But as things stand, the bills aren’t going anywhere. If you are a business who is temporarily closed, this is the time to suspend or shut off your utilities so that you do not keep accruing bills for garage, water, electricity, internet, or cable.

Here’s a direct link to the Executive Order from Gavin Newsom:

https://www.gov.ca.gov/wp-content/uploads/2020/03/3.16.20-Executive-Order.pdf

Here’s a direct link to the speeches on the moratorium of evictions from San Francisco Mayor London Breed:

https://sfmayor.org/article/mayor-london-breed-announces-moratorium-evictions-related-covid-19-pandemic

https://sfmayor.org/article/mayor-london-breed-announces-moratorium-commercial-evictions-small-and-medium-size

SUMMARY

The real estate landscape continues to change each day as the Coronavirus continues to spread globally. It’s important to partner with a well informed realtor such as our founder, Crystle Wong. Not only is she a local San Franciscan, born and raised, she is also an active participant of J Scott Scheel’s Commercial Academy and of her own global brokerage, Keller Williams. Contact Crystle today for a consultation for your residential or commercial needs in today’s ever changing market.

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GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

ABout our founder, crystle

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last decade including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. Crystle shares her firsthand experience and knowledge with clients through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California and the APA Heritage Foundation Committee of San Francisco. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariMarch 27, 2020

How to Buy a Home During COVID-19

The Coronavirus doesn’t have to wreck your real estate plans. Warren Buffett says buyers should “be greedy when others are fearful.” As Coronavirus leads to school closures, job loss, and a bear market for the Dow Jones, people are way past fearful. But what does this mean for the real estate market? As Coronavirus social distancing measures take effect, mortgage rates have dropped drastically, along with less buyer competition and less open houses and in many major cities including San Francisco, California - no open houses are allowed. Real estate price tags are in the air. But you might be wondering, “Hasn’t Bay Area real estate always held its value?” Historically, it has. Today’s low prices could be a once in a lifetime opportunity for buyers. But it’s important to understand all the facts before jumping into the market.

Last week, 30-year fixed-rate mortgages hit an all-time low since 1971. Mortgage applications and refinancing skyrocketed, as borrowers were looking at what would quite possibly be the lowest rate they would ever see. But why exactly are mortgage rates so low?

Sellers

The first piece of this puzzle is sellers, the property owners. How will they respond to Coronavirus COVID-19 measures? According to a California Association of Realtors Survey, nearly half of Real Estate Agents surveyed expected the Coronavirus to lower the number of home property sales and lengthen properties' time on the market particularly due to the mandated hold on all open houses whether public or private. About a quarter of real estate agents predicted lower sale prices. While that may sound gloomy, for potential buyers and first-time homebuyers this could be the opportunity of a lifetime.

The National Association of Realtors survey also shows about 25% of sellers and property owners are changing how their home is shown to buyers due to Coronavirus mandates and COVID-19 government-issued real estate policies. For California, real estate agents have been asking to halt and stop open houses for the next three weeks. Many seller’s agents are prioritizing virtual tours through home property videos and pictures, giving first-time homebuyers a complete digital look before inviting them in when the anticipated COVID-19 policies are lifted.

Sellers may also worry about timing. Generally, there will likely always be sellers who need to sell fast for personal reasons such as retirement, death in the family, job relocation, expanding family, or others. But many might be hesitant if prices drop too far. It’s possible that there may be a time coming that there aren’t enough homes for sale to meet the demand from homebuyers. Only 3% of NAR’s surveyed home sellers said homes were removed from the market due to the coronavirus.

Real Estate Buyers and Sellers During Coronavirus

In the long run, a bear market could also lead to less home construction and repair, meaning fewer homes on the market. But in recent months, home builder confidence has skyrocketed according to the National Association of Home Builders. Low-interest rates make building more profitable than ever. Builders are more inclined to build properties. Property sales depend on how many new homes are constructed, and as builder confidence has been high, the number of properties for sale could very well stay high, or at least not dip below demand.

In short, property sellers are not a major obstacle for now. In fact, less populated showings and Coronavirus measures may actually make things easier for you as a first-time homebuyer or general homebuyer, as you won’t have to deal with as many other buyers.

Other Buyers

Other buyers will be hugely important to Coronavirus’s impact on real estate, but buyers are also something of a wild card. They can be unpredictable.

We know first-time homebuyers are scared of Coronavirus. Nobody knows for sure if they’ll be fearful about getting into real estate, but this is certainly the case at present. Coronavirus precautions, social distancing, and self-isolation mean less buyer competition right now. There are fewer buyers searching for properties, fewer buyers at open houses, and fewer buyers even thinking about real estate as the world seems to shut down. The exception to this are investors who purchase properties that will appreciate or properties they can add value to later. This is good news for first-time homebuyers as investors are not looking at the same properties. If you’re a first-time homebuyer looking for a move-in ready home, this is an excellent opportunity for you!

As mortgage rates drop, mortgage applications could very well skyrocket. Sure, for now buying a new home or a second home during COVID-19 measures and policies may seem like a bold new idea. While others are fearful, readers like you are educated and may now consider the incredible upsides to buying a new home while prices are low in a historically stable area like San Francisco. But as more potential homebuyers in San Francisco read articles just like this one, that could very well change. There’s no guarantee that people will stay away from the market for long.

But does that you mean you should throw in the towel? Of course not! Take the time to research, to be extra diligent during these fearful times. You could very well slay this bear market if you do you pay close attention, watching for properties and showings while the getting is still good.

The Fed and Refinancing

In the past weeks, both the stock and the bond market plummeted, with 10-year Treasury bond's yield going below 1% for the first time in history. Interest rates from banks and the FED is at an all-time low as The Fed dropped rates down to 1.25%. The rate for a 30-year-fixed mortgage dropped to 3.73% last week, the lowest in many years.

The rate for a 30-year-fixed mortgage dropped to 3.73% last week, the lowest in many years.

As rates hit an all-time low, many homeowners rush to refinance, trying to take advantage of low mortgages not seen in many years. As treasury rates drop, home refinancing is likely to increase until rates stabilize. However, the recent spike has backed up lenders. The sheer number of refinancing applications has created a quea, meaning in the immediate future, refinancing may not be as smooth or simple as before.

Your Action Steps

Low prices from the break out of the Coronavirus mean this could be a once-in-a-lifetime opportunity to find the perfect house at a low price in an otherwise high priced, stable real estate market. However, sellers and agents probably don’t see this as the time to educate buyers about the market.

You’ll want to do your research and do it fast. Find out what sort of property you’re looking for and then find a knowledgable agent. The sooner the better. Come into this very unique time for the market prepared to make the most of it.

Then be ready to jump through hoops. Accept that open houses may screen you or be completely digital during this time. But know that these barriers are actually helping you - you’ll have less competition.

Finally, be ready to slay the bear. A bear market, any economic downturn, can scare people out of the market entirely. But like Buffett says, those who are willing to face it bravely often do extremely well for themselves. These are scary times, yes. But if you can keep your head while others lose theirs, arming yourself with an agent and real estate information, this could very well be the best time in your life to buy your dream house.

Check out these Money.com mortgage lenders.

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GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

About Our Founder, Crystle

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last decade including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. Crystle shares her firsthand experience and knowledge with clients through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California and the APA Heritage Foundation Committee of San Francisco. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariMarch 23, 2020

Things You Can Do While Quarantined At Home - San Francisco's Shelter-in-Place

If you’re like most people, you started this year off with high hopes for 2020. No one could have imagined where we’d be today, three short months after New Year’s Eve as the world deals with the Coronavirus outbreak also known as COVID-19. As the Coronavirus continues to infect what seems like an exponential number of lives, governments all over the world including locally here in San Francisco have ordered a version of a shelter-in-place, lockdown, quarantine, or martial law. As people all over the world face some form of self-quarantine, social media continues to burst with helpful methods to pass the time while at home during this shelter-in-place. Here are out top 5 favorite things you can do while at home during this quarantine season:

COVID 19 quarantine things you can do at home

Digital Group Gatherings

As government leaders call on influencers and world event organizers to lead the way, festival organizers like Insomniac’s Beyond Wonderland and SiriusXM’s Ultra Virtual Audio Festival are hosting virtual Rave-A-Thons where rave goers can participate from the safety of their home during shelter-in-place and quarantine mandates. If you enjoy dance parties, raves, or nightclubs, a virtual festival or rave-a-thon streamed from your living room could be the at-home solution you need to getting your music needs filled while getting some good exercising time in.

Corporate platforms like Zoom, Skype, Facebook’s Portal, and Google Hangouts are seeing a sharp rise as users seek to maintain their connection with friends, family, loved ones, and colleagues. Scheduling a virtual happy hour or game night with friends through a free digital hangout platform like Zoom streamed to your big screen TV could be the interim solution to your socializing needs.

Summer Body Ready

With only 2 months to go until summer, now’s the perfect time to develop some new workout habits with all the extra free time you have on your hands. While there are a ton of paid subscription services you can register with for daily workout routine like Obe Fitness , Blogilates, and Sworkit , you can also find nearly as many free ones uploaded to YouTube. You can find everything from at-home yoga to stretching for beginners and at-home HIIIT workouts. Most of these at-home workout videos are shown using nothing except your own body weight. For those who like the added weight and are used to dumbbells, kettlebells, or other weights, you could easily replace them with everyday household items like a jug of bleach or 1-liter soda bottles or your favorite tequila bottle, just make sure it’s still full for a good workout! For those with infants who can’t be put down, you can find many workout videos for new moms that include your infant in the workout.

Hobbies

With the extra time on your hands, it is the perfect time to start learning or working on the projects you’ve been setting aside. A few great at-home hobbies to develop or learn might include cooking, baking, painting, learning a new language, DIY home gardens, or finally finishing those books you’ve been meaning to get to.

Meals and Household Items

To minimize your potential exposure to COVID-19, many households in the San Francisco Bay Area have stocked up on supplies and non-perishable groceries to last them for up to a month. A fun, time-consuming project you might consider doing is developing an at-home quarantine 2020 food menu of all of the meal possibilities you can make from the items you have in your home. If you want to make it look professional, signup for a free Canva account and utilize one of their many Menu templates! This could make mealtime a fun time for you and your family as you replicate an at-home restaurant experience, making the most of the Coronavirus stay-at-home mandates.

Aside from cooking and mealtimes, being at home for a long period of time makes for a good reason to do that deep Spring cleaning. As you and members of your household go in and out, even if minimally for only essential reasons and essential necessities, every outdoor excursion is another chance of being exposed to the Coronavirus. The most essential thing you can do to protect yourself is to keep your home clean. With only a few household items, you can even make your own DIY hand sanitizer and DIY kitchen wipes.

Keep a Clean Home During COVID19 Quarantine

Quality Time with Loved Ones

In a world with such advanced technology, people are overstimulated with technology. Some might even say people are addicted to technology whether that’s a smartphone, tablet, or other devices. People are constantly checking emails, text messages, social media statuses, and notifications. Most first-world countries have developed a mindset of working longer means working harder. This has led to more time at work, more time thinking about work, more time stressing, and less quality time spent with family, friends, and loved ones. It means less time spent taking care of oneself. As many companies and jobs are impossible to do while being self-quarantined at home, this is the perfect time to cherish time with those you love.

Quality Time with Family During COVID19 Quarantine

We all know, self-quarantine is not easy but it is the only sure way that to keep you protected from Covid-19. We hope you do what’s responsible and stay at home.

While you may find some real estate agents still agreeing to meet you privately for an open house or showing, we here at CKW Real Estate care too much about your health and safety to put you in a compromising position. Not to mention that Governor Gavin Newsom and the State Public Health Officer together released an announcement on March 22, 2020 requiring all Californians to stay home except as needed to maintain continuity of operations in 16 infrastructure sectors. Therefore, any realtors agreeing to do private showings or open houses are doing so illegally.

“Therefore, REALTORS® should cease doing all in-person marketing or sales activities, including showings, listing appointments, open houses and property inspections. Clients and other consumers are also subject to these orders and should not be visiting properties or conducting other business in person.”

Send us a message with any questions or comments! We’d love to have you stop by one of our open houses once this shelter-in-place is lifted!

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GOVERNOR GAVIN NEWSOM’S EXECUTIVE ORDER EFFECTS ON REAL ESTATE

About Our Founder, Crystle

CKW Real Estate Founder and SF Real Estate Agent

As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last decade including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. Crystle shares her firsthand experience and knowledge with clients through the process of buying or selling your property.

You might ask yourself, “What does a tech startup have to do with real estate?”

Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.

The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.

Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.

In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California and the APA Heritage Foundation Committee of San Francisco. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.

Crystle VitariMarch 23, 2020

Quick Guide to Buying a House in San Francisco

Anyone living in San Francisco will tell you that the weather is a perfect, steady temperature all year long – not too hot, not too cold. It is truly a place people choose to live due to the booming tech industries that provide well-paying jobs, restaurants with authentic food from around the world, access to the best vacation weather from Tahoe’s snow fall to San Diego’s beaches and Napa’s wineries. If have already decided to buy house in San Francisco, California then you may want to look for the most affordable property that meets your basic needs as well as suits your lifestyle. San Francisco is a city that has a place for everyone and anyone from fancy CEOs to hipsters and those of every generation. In starting your search for a home that fits your unique needs as well as lifestyle, you might be overwhelmed, let me give you some peace of mind with these quick tips to buy home in San Francisco.

Check your Credit

If you have an excellent credit score, it will help you qualify and obtain a better mortgage loan which may save you money in the long run. You may consider paying down debt such as credit card debt to help improve your credit score. You should also consider calling your credit card companies to find out what day they report to the credit agencies so that you can make your payments before that date. The date they report is usually not the same date that your credit card bill is due.

Find the Right Home

If you want to find the right home, it is essential to create a list of features that you are looking at in a home. It is helpful to your real estate agent if you already have a list of features you want in a first home. This should include things such as the number of bedrooms, bathrooms, neighborhoods or nearby activities you want access to, parking spaces, laundry, pets, amenities, age of home, remodeled home or home with room for you to do some DIY work, as well as if you’re looking for a home with an in-law unit or an ADU unit for you to earn passive income. Additionally, you may also want to let your real estate agent know if you have preferences over the types of nearby schools in the area and the safety ratings of the area.

Look for the Right Lender and Real Estate Agent

If you want to search for the right real estate agent and lender, look no further! Our team lead is born and raised in San Francisco with 10 years of experience in real estate. She has put together a team of expert lenders who are proactive and knowledgeable with a license to work in 48 states including California.

Some criteria you should look for and want in a realtor and lender are:

· How long has the realtor or lender been in the area you want to buy in?

· How many years of industry experience does the realtor or lender have?

· How proactive are the realtor or lender in working for and with you?

· Do the realtor or lender have any reviews online?

If you’re still uncertain, you should consider talking or meeting with a handful of lenders and real estate agents in San Francisco and to make sure you pick the right one for you!

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