The Torrey Team has been very successful over the years in winning multiple offers for our buyers.  Not long ago we had a streak of winning ten in a row. Multiple offers are the norm rather than the exception in today's world.  We are hearing stories about buyers who have lost out on 15 straight homes that they have bid on!  I think it is time to review once again what we have learned in our many years of negotiating multiple offers for our buyers. 

Obviously, we think it is important for a buyer to make a strong offer and be pre-approved in writing by a respected and visible lender.  The pre-approval process should occur before the offer is written.  When we sort through comparable sales data with our clients we explain that it is all "old news".  That is to say that the meeting of the minds between seller and buyer usually occurred at least 30 days ago, and very often 3 months ago-"all ancient history."  When we have a strong seller's market like this one we need to factor in a 10-15% annual appreciation rate.  Clearly, lack of inventory is driving the market now and will be for the foreseeable future.

Offer guidance can also be achieved by interacting with the listing agent.  How many offers are in hand and how many do you expect?  Past relationships with other agents is also a huge factor.  If the listing agent trusts you because he or she has had a positive experience with you he or she may reach out to you with much more information than is imparted to the competition.  With over 1100 career transactions the Torrey Team has a lot of positive relationships with other realtors.

Conveying buyer passion with a well prepared introduction letter to the seller is also very important.  This used to be in person and still is in isolated cases.  The seller wants to know if the buyer will appreciate his home as much as he does.  If the seller feels that connection he may accept an offer that may not financially the strongest.  This letter should aim for the heart because most homeowers have an emotional connection to where they live.

The most important factor is trust between agent and buyer when combined with communication.  When we are in action negotiating for you we will keep you posted every inch of the way-so you will know "when and how to pull the trigger" on short notice for a purchase.  Windows of opportunity open and close very quickly, and the Torrey Team will be there to help you make the right decision!  Think positive!  We are!       

This year has been The Torrey Team’s best in terms of real estate production, but that is not what we will remember most.  What was most memorable about 2012 for us was the great friends and clients with whom we worked. You folks made our phenomenal year possible! Thank you for your faith and trust! 

We had great success with our 22 sellers this year, selling most of our listings over asking price.  Some of our clients were moving out of the area, some were short sale sellers, some liquidating assets, some flippers, and so on.  Not to take away from our sellers, but this year was more about the challenges our buyers faced.  For the first time since the early 1980s we worked with more buyers than sellers.

The 2012 market featured the least amount of inventory Pete has seen in his 35 year career.  This combined with historically low interest rates, and significant consumer confidence, created a feeding frenzy that was incredible.  In this highly competitive and super stressful environment, we managed to get 30 buyers into their new homes this year!!  Most of these clients, whether they were family, friends or referrals, won out on multiple offer situations at an amazing rate.  The process was time intensive, time sensitive, and always complicated, especially when you combine negotiations, inspection results, and loan processing simultaneously.  All the while our buyers hung in there, fighting with us and not against us.  They made decisions based upon the trust they had for us, and we cannot overstate how much we are appreciative of that trust.

We all agreed that this year, and the accomplishments touched on above, is about as gratifying a year as we can ever remember.   Sure, Zack may have had his foul language reach an all time high, Pete got even more philosophical about the real estate business, and Andrea managed to do more business in Lululemon than the actual owner of the company!  If we didn’t have our quirks how the heck would we relate to our clients, and at the same time keep our sanity? 

The Torrey Team is proud to be involved again this year with the annual Toys for Tots program!  This nationwide program is sponsored by the United States Marine Corps and it provides toys to needy children during the holiday season.  The Torrey Team is co-sponsoring their toy drive with family friend Stephanie Surls and will ensure that the Marine Corps training facility in Concord, CA will directly receive all donations.  All toys collected will be distributed to needy children specifically in the local East Bay communities and this year they are expecting low numbers so please help!

New, unwrapped toys for children of all ages may be dropped off at the J. Rockcliff Realtors Walnut Creek office located at 1700 North Main Street or the Danville location at 15 Railroad Ave.  Or you can drop toys at the Ace Hardware at 2967 Ygnacio Valley Rd in the Encina Grande shopping center in Walnut Creek.  Monetary donations are also gratefully accepted in the form of a check made payable to Toys for Tots and mailed to Stephanie Surls at 49 Orchard Estates Drive, Walnut Creek, 94598.

Even the slightest bit of a donation can make a difference!

Hi Everybody!  We all thought that once the summer ended and the kids went back to school that the East Bay's real estate market would begin to cool off.  Wrong! It has been hotter than ever with multiple offers becoming the rule rather than the exception.  List prices have become starting points for auctions which have actually become bidding wars driving up prices dramatically.  We recently had eleven offers on a short sale that had its list price bid up almost 10%!

Our method for measuring the "temperature” of the market is the ratio of active listings to pending sales within the last 30 days - that tells us what's happening now.  A "normal" market would have three active listings to one pending sale.  Right now Concord has a ratio of .56, meaning that there are almost twice as many pending sales as there are listings!  Antioch is not far behind at .63 listings per pending sales, followed by Walnut Creek at .84-that means there are more pending sales than homes for sale!  Then we have Pleasant Hill at 1.1, Danville at 1.39, and Lamorinda at 1.78 listings per pending sale.  

The main reason this is happening is the lack of inventory.  We just haven't been building much over the last ten years and we don't have enough homes to sell.  That trend is not unique to the East Bay; it is true all over the country.  The record low interest rates are another factor in driving the market.  The "shadow inventory" defined as the large stash of foreclosed homes the banks are holding is turning out to be more rumor than fact.  Underwater homeowners are finding it much easier to short sale their homes if they pick the right realtor-thereby avoiding foreclosure.

Where are we headed?  Good question, but I think the immediate future looks pretty good - at least through the Spring of 2013.  Whichever party wins the election in November will face some hard decisions regarding taxes, the budget and jobs.  In the past, the political party in power usually raises capital gains taxes to generate revenue because in their minds it seems the "least painful."  For those of us who work in the real estate industry or for future sellers raising capital gains taxes could be very painful!  Future buyers have to worry that the government's "quantitative easing" will cause inflation and much higher interest rates as they did in the 1980s. 

The message here is that now is a good time to be both a seller and a buyer.  If you plan to sell your home in the next 6 months get your plan together immediately, and if you are going to be a buyer after the first of the year pick out your lender and do your research NOW.  You do not want to play the "shoulda, coulda, woulda" game a year from today! 

Since the middle of January the Torrey Team has written 12 offers for buyers, and in 11 of those instances we encountered multiple offerings on the same property.  We were able to obtain acceptances by sellers for our buyers on 9 of 11 offers we wrote!  The response on the 12^th offer is still pending.  That tells us that the market has taken off this year and consumer confidence is way up here in the East Bay.  It also tells us that we have a shortage of listings and potential sellers need to join the party.

So how have we been so successful in getting our offers accepted when there are multiple contracts?  The key is knowing who we are negotiating with and what their primary motivation is.  It is not always about price. Good listing agents really focus on the qualifications of the buyers as well as the experience and reputation of the buyers' agent.  The multi-generational Torrey Team has closed approximately 150 transactions in the last 3 years, and has worked with many of the same agents on multiple occasions.

Communication and anticipation are important ingredients in winning the multiple offer negotiation.  Preparing the buyer and the seller (or seller's agent) for what is about to occur is essential.  Remember this could be a "once in a decade" occurrence for both.  A short-sale seller is not nearly as concerned about price as he is about having a qualified and patient buyer who is willing to stay put during an elongated escrow period.  The bank- owned listing agent is looking for a buyers' agent who is organized, efficient and technologically savvy.  A traditional seller may have an occupancy need requiring a rent-back arrangement.  Time and occupancy can be savings or dollars for somebody.

We have been very fortunate to be able to put this knowledge as well as other techniques to work for our clients in this complicated and ever-changing real estate market.  That being said, the real key to our success has been YOU!  We could not have accomplished any of this without your TRUST.  Thank you! It was a wise man who once told Pete early in his career " trust is not given it is earned."    

Thanks to my friends and clients for helping me to reach a career milestone - one thousand closed real estate transactions! I am pictured here with Una and Malcolm Adkins of Walnut Creek who were number 1000. 34 years has roared by, and you have made me enjoy coming to the office. I feel very lucky to have such loyal customers - many of whom I have represented for 3 generations. With Zack, Andrea and the family's help I am ready to begin my 2nd 34 years in real estate thanks to you!

- Pete

That is the question I get asked all the time whether it be in the grocery store, barber's chair, or a buyer/seller conference. I answer by saying it is a lot more stable than the media would have you believe. I also say that the market is all about "location." Some market locations around the nation are in the toilet while other areas like Marin County in the Bay Area are actually showing price appreciation over the past year.

Apple Appraisal, one of the most reputable companies in that field, visited our office meeting recently to give us the real scoop on prices. According to Apple's data for Contra Costa County sales are up approximately 11% when comparing August of 2010 to August of 2011. The average sales price for that same period in the county was down approximately 2% to $380,000. The average days on the market for that period are up slightly from 40 in August of 2010 to 42 days for August of 2011. The message we got from Apple was that their data showed we have a "stable" market. Compared to where we have been, stable is good. I think we will be dealing with this kind of a real estate environment for at least the next 3 to 5 years, depending on how fast we can reduce the unemployment rate. Due to a lack of quality inventory we have been seeing several multiple offers on our recent sales in Walnut Creek and Concord.

Meanwhile, the California Association of Realtors has released its forecast for 2012 with some interesting projections. It says sales will be up 1% in 2012 and that prices will go up 1.7%. CAR sees interest rates going up by about .25% in that same period.

A New York Times/CBS news poll conducted in 1991 showed that 8 out of ten Americans believed that buying a home was the best investment one can make. After all the turmoil in the housing industry in recent years, including the 2008 mortgage meltdown, I am amazed to report the results of Pew Research Survey conducted in 2011. Pew found that 8 out of ten Americans STILL feel that buying a home is the BEST investment one can make!

That's wuzzup Dude!

Pending sales for the month of May were up across the board in the East Bay after a slow April. Everybody seems to have their own theories about this quick turnaround and here's mine: it's called the NEW NORMAL.

Buyers and sellers are getting used to the fact that short sales and bank owned properties will be a part of the market for the foreseeable future. Sellers have to take those homes into consideration when pricing theirs, even though we see traditional sales going for approximately 10% more. Buyers now understand that if a home is priced correctly it will sell very close to asking if not over. Buyers will also pay more for a property where they know they can close escrow in a finite period of time -30 to 60 days- a traditional sale. So we have a coming together of the market expectations of both buyers and sellers at this point in time. We should appreciate that we get these periods every once and awhile.

Another aspect of the NEW NORMAL attitude that is driving the uptick in real estate activity is the fact that the consuming public is getting used to "bad news." We are getting this information pounded into us by the media 24-7, which also can have some positive results. This year we have overcome crises in Egypt, Libya, Japan and Greece, our stock market and skyrocketing gas prices, to name just a few. We are all feeling like "Tsunami Survivors" who now need to move on with our lives. There was a saying we used when I was in the television news business: "A billion people a day cross the street. One gets hit and you have a news story." I don’t mean to be callous but I think most people today are getting acclimated to negative news, and it may not be influencing them as much as it used to. This is particularly true for those of us who are on the internet and on social media with great regularity.

It's not that we don't care about what's going on around us. The fact of the matter is that in the NEW NORMAL we have a lot more information to learn about and process. Ultimately, this new "age of enlightenment" is helping us to make more-informed decisions not just affecting our own lives, but also in solving the pressing issues of the day.

The strong pending sales data would suggest that it certainly has energized our current Real Estate Market – could this be the NEW NORMAL?

Posted by Pete

Our local real estate market is suffering from a lack of good inventory, and this has created an excellent opportunity for sellers who have been waiting for the right time to put their homes on the market.

We’ve been talking with a number of seniors who are living in large homes—including many of the two-story variety—with huge yards they are getting tired of having to care for. Some of these homeowners would like to move but are hesitant because they are not sure where they would go. Move to Rossmoor? Maybe a smaller home in the area? Or another state? Often, it boils down to finances and where their grown children live.

For instance, many long-married couples have a lot of equity in their properties but aren’t aware of some favorable tax considerations of selling that now over-large house. They don’t realize they can get $500,000 in capital gains forgiveness when they sell, and if they stay within the same county they can also transfer their low property tax basis to their new home.

The Torrey Team recently helped a senior couple in their late-70s/early-80s. We sold their large family home with a large lot and moved them to a lovely, single-story unit in Rossmoor—an area with plenty of homes on the market. Their children were grown and had moved out of the home, and the couple were spending far too much of their time maintaining their large property. They would rather be spending their time traveling the world, visiting with family and friends, and savoring their precious retirement time together.

Although they were rather disappointed to learn their home was no longer worth the million dollars it was some years ago, they were positively elated to discover they could get just what they wanted in Rossmoor for under $500,000. We explained to them how the decision is always about "net-net" when you are both buying and selling. While their home may have been worth a million bucks several years ago, the Rossmoor unit they liked so much would likewise have been worth $750,000 back then.

We sold their home for $825,000 and helped them buy a lovely Rossmoor property for $490,000. In addition, the couple retained their low tax rate by moving it from the older property to the Rossmoor home. They were very pleased with the way everything worked out, but were kicking themselves for not making the move earlier.

The Torrey Team has sold 1000 homes and we understand that every situation is different. Rossmoor may not be the answer for everyone. Whether it’s assisting you in selling your home for top dollar and finding you a new one—or just "staying put" for the time being, we have been committed since 1977 to helping you, our neighbors, make the decision that’s right for you.

Posted in newsletter on 5/22/2011

The Torrey Team recently sold a couple of properties that had been listed for a long period of time with multiple offers. We had just reduced the prices of the properties by approximately 5%. The result was that we got sales prices that were almost equal to the original list prices. The lesson learned was something we already knew-"price it right and it sells for top dollar!" Today's buyers are on-line constantly and are very sophisticated and knowledgeable. They know good deals when they see them because of the transparency of the marketplace. They came out in droves last week for our Dublin listings in a popular hamlet near the San Ramon border. We sold our two existing listings with six offers. We then directed the remaining folks(by way of their agents) to another listing of ours in the area, which was not yet on the market. They gobbled that one up too with multiple offers. When I started the business in 1977 I was told that three elements are involved in value and desirability of a property-Price, Condition and Location. I think market conditions can determine the order of importance. In the real estate hot period of 1999 to 2006 it was about location and condition. That is not to say that they are not important today, but not as important as PRICE. Many buyers allowed their hearts to control their heads in the 1999-2006 real estate boom. The buyers of today are more careful to control their hearts with their heads. That can explain why these listings did not gain the buyer's attention until the price changes. I am firmly convinced that the real estate market is never "good" or "bad", but is constantly changing and offering a variety of opportunities for well-advised buyers and sellers. The true function of the real estate agent is to know "value" in the market place, and to guide buyers and sellers on an offering and listing "price."

Posted by Pete 5/31/11

Short Sales are a Part of our New Reality

We know there are a great many homeowners that are "underwater" right now-meaning that the loans on their homes exceed the value of their property. These folks are understandably feeling quite stressed about their futures. Many of these homeowners have lost their jobs and can't afford their mortgage payments. They want to do everything they can to avoid foreclosure. The alternative may be a short sale, where the lender or lenders accept less than a full payoff on what they are owed. It is a very complicated and lengthy process usually involving a buyer, seller, generally two real estate agents, a possible homeowner's association and the lender or lenders. Because many of the players in this drama are working at "cross purposes," only one out of four short sales actually close escrow, based upon national statistics. The Torrey Team has assembled a short sale team based upon long-time relationships and referrals that has a whopping 94% CLOSURE RATE. One of the great rewards for us in a "traditional" real estate transaction is the appreciative reaction from our clients when they have completed their purchase, and we hand them the keys to their new home. For a short sale seller who has closed escrow, the reaction is RELIEF. "Thank-you for giving me my life back! Now I have a second chance!" was the comment from one of our recent clients when the Torrey Team closed her short sale. We were really "touched" and inspired by her comments especially because this transaction took a lot of time and effort - nearly a year! It was a negotiation that included working both the first and second lenders against each other, while keeping the buyer and their agent totally up to speed and interested. It was one of the most rewarding sales that the Torrey Team has had in its 34 years! If you think a short sale might be an alternative or just want to know what your home is worth, please give us a call or an email. We would be happy to set up a private, confidential, no-obligation consultation.

Posted by The Torrey Team on May 6, 2011

Hi everyone! We are seeing several signs on the street that prices are starting to firm up. The last three sales of Torrey Team listings are an indication of that for us. They sold for an average of 99.5% of asking price which was our same percentage as last spring when we had large tax incentives.

This is good news for homeowners and potential homeowners who have been concerned about falling prices. The Torrey Team has also been communicating with many of you who have visited our open homes recently with tales of losing possible purchases because of multiple bids. It is a fact of life that listing agents will reach out to experience sales agents they are familiar with during the multiple offer process. For this reason and many others, buyers and sellers alike should make an effort to work with agents who live and work in the area they are selling.

Correct pricing has been the key especially in this market to the sale process. An agent needs to know what's happening in the neighborhood in order to guide his client whether it is buyer or seller. Our industry is so transparent now that astute buyers can smell a good deal and frequently will "bid up" a property that has multiple bids. Sophisticated sellers know that listing their home at the right price with an experienced agent can help them get the best return.

Every transaction, whether it be traditional, bank-owned, or short sale requires its own game plan. Since 1977 the multi-generational Torrey Team has helped nearly 1000 buyers and sellers formulate their real estate strategy. Let us know if we can go to work for you.

I hope you all saw the fine article in Fortune Magazine this month by Shawn Tully entitled "The Return of Real Estate". Tully is the same person who forecast the real estate downturn in 2006 amidst soaring prices and multiple offers. Tully's main source of information is Mike Castleman, a very bright Texas rancher, who owns a research firm called Metrostudy. He employs 500 inspectors who tour 19 states, or around 65% of the U.S. Housing market. These inspectors measure the number of homes for sale in each city and the number of months it takes to sell them.

In 41 cities Metrostudy found a total of 78,000 houses are now either vacant and for sale, or under construction. That's less than one fourth of the 343,000 units in those same two categories in 2006. "The talking heads who are down on real estate will hate to hear this, but American needs to build a lot more houses. And in most markets the price of new homes is fixin' to rise, not fall," says Castleman.

He also cites affordability as another reason for a bounce back. His research shows that homeowners now pay just 9.8% of their income in after-tax mortgage, tax and insurance payments. That's down from 17.2% at the bubble's peak in 2007. Castleman's inspectors found that in 28 out of 54 major markets its now cheaper to own than to rent.

This article makes for interesting reading, but doesn't even address the issue of inflation, which we know is coming. In the past when fears of inflation would pop up, we would have a run up in real estate sales. All these signals tell potential buyers that now is the time to purchase even if prices soften another 5%. Debt worries are already moving interest rates up, so the advantage of a slightly lower price in six months to a year is lost. The last thing today's buyers want to be doing is chasing rising prices and playing the "shoulda, coulda, woulda" game..

You must wear your hard hat to get a short sale closed in today’s real estate market – but they do close! The Torrey Team would like to congratulate their sellers who endured 4 offers total, 2 short sale decline letters, 15 months of on and off again marketing, and finally today close of escrow with no promissory note, no seller contribution, and no deficiency judgment language in the approval letter! This is an extremely long case and not the norm, but even the toughest short sales are closing with the right management and patience!

I recently saw a very interesting article in the Wall Street Journal that indicates that this will be the "turn-around" year in housing. Since good news about housing has been rare, particularly on a national basis, I thought it might be worthwhile to pass this along. Here are some of the major points:

Housing is the most affordable it has been in decades, according to analysts at Moody's Analytics. Moody's looks not just at home prices but at incomes as well. Nationally, the cost of a house is the equivalent of about 19 months of total pay for an average family, the lowest it has been in 35 years. Prices usually average close to two years' pay, although that varies nationally. At the peak, midway through the last decade, a home in Los Angeles cost the equivalent of 4.5 years pay. The average price has fallen to just over two years income in L.A. now. That's well below the pre-bubble average of 2.6 years. This means average Los Angeles homes are cheaper in "real terms" than they were typically during the period of 1989 through 2003. The Wall Street Journal article also points out that because prices are down so dramatically that it makes more sense to buy than rent, even if prices fall another 5%.

Another signal that the national market is changing is the number of investors who are buying properties with all cash. These folks would not be exposing their cash if they weren't expecting a rebound.

I do agree with the basic theme of this article. I think today's buyers can get some great deals if they buy and hold-at least 3 to 5 years. The days of the quick profits in real estate that we saw in the 1990s and early 2000s are gone.

Locally, I see the Housing market gradually healing as long as the unemployment figures continue to improve and oil prices do not get out of hand for an extended period of time.

Posted by Pete, 03/18/2011

We are really excited about 2011! Thanks to you it has started off quite well for the Torrey Team.

We're seeing good traffic at our open houses, and a lot of spirited activity on our listings. Two of our Walnut Creek homes received offers from buyers in late December, even though they were temporarily off the market! Both had been listed since late summer, but we had removed them from the market for the holiday season and neither was publicly back on the market yet. We sold a Martinez home before we could get it onto the MLS, and sold another during its first week on the market -- for over the asking price! Across the street from a Pleasant Hill duplex we sold last fall, we sold another home while it still had its "Coming Soon" sign on it.

All this activity tells us that intelligent buyers are seeing the value in homes that are priced and presented well. Buyers are also noticing the improving trends in the stock market, the unemployment rate, and even better than expected automobile sales, and taking those as signals that it's time to make their move.

Adding further incentive is the prospect of higher interest rates on the horizon. It wouldn't surprise us to see rates rise to 6 or 6.5% during 2011. While that's still a very good rate for a home loan, it is somewhat higher than the 4.5 to 5.5% rates currently available. This climate creates "buyer urgency," which is good for sellers. In discussions with various real estate experts, we're hearing that a number of them expect sales to improve by about 25% in our area this year.

Here at the Torrey Team, we anticipate a fairly stable market in 2011 with prices going up or down slightly in correlation with the number of available listings. Yes, we will still be dealing with foreclosures, bank-owned homes, and short sales; they will still be with us for some time to come. But we believe that sophisticated buyers will prefer to pay more for a "traditional sale" when homes are priced well and presented in their best light. And listings like these are in short supply right now.

It's a confusing market, but we're here to help you figure out your home's updated value. We've been providing this free service for our friends and neighbors for almost 34 years, and it's still free. Just give us a call.

Posted in newsletter on 2/2/2011

We hope you are all happy and healthy and looking forward to 2011 with gusto and enthusiasm!

Recently we have met with a number of you who are over age 50 to discuss your futures with regard to your real estate -- specifically, where you would like to live and whether you feel you can afford it. We are hearing that most of you "empty-nesters" would like to stay in the East Bay, but your kids are grown and no longer live at home, the home you currently live in is too big and you’re spending too much of your weekends working on your large yard. You would like to travel, possibly retire, spend more time on your hobbies, and have more fun. The question is how do you use your hard earned equity to improve your lifestyle? How much has the value of your home gone down since 2007? Where could you move to? These are the most-asked questions that we encounter.

Rossmoor in Walnut Creek has always been a good option, particularly now. While home prices in our neighborhood have dropped around 30 to 40%, Rossmoor properties have dropped in value over 70% -- or more in some cases! The Torrey Team has made a point of getting to know the Rossmoor market very well, and we have sold a number of you homes in that area. There are nice 2-bedroom condos in Rossmoor going for less than $100,000.

Another viable option in the East Bay for empty-nesters is Brentwood, about 25 minutes east of Walnut Creek. It’s another area we have become very familiar with, and newer homes on or near excellent golf courses are priced in the $200k to $400k price range.

The decision to downsize and relocate should be based more on "quality of life" than any other issue. It will always be a "net-net" proposition -- what your current home is worth vs. the price of the home you would like to buy. This is true not only if you are a senior looking to move down, but also if you are a 30- to 50-year old looking to move up. Midrange homes of $400k to $900k are currently holding fairly steady in value, while the upper end ($1 million and up) is coming down. Couple that with interest rates of 4-5% and you can see that this is not a "bad" market. We are experiencing a relatively stable market right now (with good and bad news tending to balance each other) and we expect it to remain that way for at least the next 24 months.

We would be happy to give you an estimate of value on your home. If your choice is to move out of the area, we can help you find a qualified real estate agent in the area you want to move to. We are happy to provide these free, no-obligation services to our friends and neighbors as a way of saying thanks for your 33 years of loyal patronage and support -- 2010 was our best year ever!

We hope you can make good use of the 2011 calendar we sent you last month. Many of your remember Pete knocking on your door in 1977, with black hair and moustache. Today gray-haired Pete, sans moustache, is joined by his son and daughter, Zack and Andrea, to form a multigenerational real estate team! We would love to hear from you at 925-280-8535, or on the web at www.thetorreyteam.com.

Posted in newsletter on 11/22/2010

Recently we have met with a number of you who are over age 50 to discuss your futures with regard to your real estate -- specifically, where you would like to live and whether you feel you can afford it. We are hearing that most of you "empty-nesters" would like to stay in the East Bay, but your kids are grown and no longer live at home, the home you currently live in is too big and you’re spending too much of your weekends working on your large yard. You would like to travel, possibly retire, spend more time on your hobbies, and have more fun. The question is how do you use your hard earned equity to improve your lifestyle? How much has the value of your home gone down since 2007? Where could you move to? These are the most-asked questions that we encounter.

Rossmoor in Walnut Creek has always been a good option, particularly now. While home prices in our neighborhood have dropped around 30 to 40%, Rossmoor properties have dropped in value over 70% -- or more in some cases! The Torrey Team has made a point of getting to know the Rossmoor market very well, and we have sold a number of you homes in that area. There are nice 2-bedroom condos in Rossmoor going for less than $100,000.

Another viable option in the East Bay for empty-nesters is Brentwood, about 25 minutes east of Walnut Creek. It’s another area we have become very familiar with, and newer homes on or near excellent golf courses are priced in the $200k to $400k price range.

The decision to downsize and relocate should be based more on "quality of life" than any other issue. It will always be a "net-net" proposition -- what your current home is worth vs. the price of the home you would like to buy. This is true not only if you are a senior looking to move down, but also if you are a 30- to 50-year old looking to move up. Midrange homes of $400k to $900k are currently holding fairly steady in value, while the upper end ($1 million and up) is coming down. Couple that with interest rates of 4-5% and you can see that this is not a "bad" market. We are experiencing a relatively stable market right now (with good and bad news tending to balance each other) and we expect it to remain that way for at least the next 24 months.

We would be happy to give you an estimate of value on your home. If your choice is to move out of the area, we can help you find a qualified real estate agent in the area you want to move to. We are happy to provide these free, no-obligation services to our friends and neighbors as a way of saying thanks for your 33 years of loyal patronage and support -- 2010 was our best year ever!

We hope you can make good use of the 2011 calendar we sent you last month. Many of your remember Pete knocking on your door in 1977, with black hair and moustache. Today gray-haired Pete, sans moustache, is joined by his son and daughter, Zack and Andrea, to form a multigenerational real estate team! We would love to hear from you at 925-280-8535, or on the web at www.thetorreyteam.com.

Posted in newsletter on 10/06/2010

The real estate market continues to remain flat, with the good news and the bad news balancing one another. Interest rates continue to hover near record lows -- less than 5% for 30-year fixed-rate mortgages.

Many buyers are hesitant to jump into the market, though, either because of their job situation or because of the negative housing news at the national level. I still feel that getting people back to work is the key to solving the housing crisis. During the last housing boom, prices inflated much faster than incomes rose -- thanks largely to speculation and poor lending practices. The ratio of home prices to annual income had risen to 1.88 during 1989 through 2003. By the end of June 2010, the ratio had dropped to 1.6, which is far below the boom-time ratio and a likely indicator that we are beginning to learn how to live within our means again. That’s a good sign.

During open houses, many of you have asked for my opinion of where we are headed. I foresee the present market climate continuing for at least another 24 months. A big factor is the huge number of foreclosed homes that banks are still holding -- what some analysts call the “shadow inventory.” This is more a national rather than local phenomenon, but it is definitely the elephant in the room even in our local real estate transactions. It preys on people’s minds.

On the flip side of the equation, very few new homes are being built. When housing demand eventually kicks in, we will not have the supply to meet it and prices will go up. In great part, that was what caused the run-up in prices during the late 1990s and early 2000s. Spanish philosopher George Santayana is credited with one of the most oft-repeated quotes in history, “Those who cannot remember the past are condemned to repeat it.”

For the astute, well-represented buyer or seller, there are still plenty of opportunities to enhance one's quality of life and/or make sound financial investments in today's REAL ESTATE market.

Posted in newsletter on 10/06/2010

The real estate market continues a "W-shaped" recovery, with several steps forward and several steps back, depending on which day you choose to look at it. The good and bad news items continue to balance each other -- creating "stability" of all things by giving buyers and sellers equal opportunities. For buyers with good credit and cash or equity in their homes, these are great times. For sellers with equity, these are also good times.

Traditional sales are generally much more attractive options for buyers than are short sales or bank-owned homes. Buyers will pay considerably more for a home that they can expect to close in 30 to 60 days. In the case of short sales or bank-owned properties buyers are never sure when or even if they will close. We have seen traditional sales of similar homes sell for 10% more than the short-sale and bank-owned versions.

I am not in the double-dip recession camp, but I believe we will have our up and down days and weeks. This period resembles the middle 1990s to me, but with much better interest rates. Back in the middle 1990s we were looking at interest rates of 11-14%. Today, we are looking at historically low 30-yr fixed-rate loans of under 5%.

Posted in newsletter on 08/29/2010

The Torrey Team continues to be very busy, just as we were through 2009. Zack and I feel very lucky that Andrea joined us last Fall. Besides adding her enthusiasm, people knowledge, and marketing background to our team, she has brought great energy!

Maintaining our position as the East Bay Sales leader, J. Rockcliff Realtors has just opened its new Montclair office -- the 9th office overall in the area. We are proud that our company is doing well and expanding in this economy while others are contracting or going out of business altogether.

It seems like everywhere we go, we are being asked for our prediction for the future of the real estate market. We tell folks that the current climate is “a convergence of both positive and negative factors.” On the positive side, we are witnessing uplifted spirits from buyers and sellers -- in part because of the improving economy and stock market. On the other hand, we are still seeing plenty of foreclosure activity, continuing high unemployment, and interest rates that have started to creep up. The net effect seems to be a stability in the market created as the positive and negative forces tend to cancel each other out. I think this “flat market” is going to be around for the foreseeable future.

If you’re looking to do any advance planning for your real estate future, be sure to contact the Torrey Team at 925-595-6707 for a private, “no-obligation” consultation.

Posted in newsletter on 04/21/2010

I think the healing process that began in mid-year 2009 will continue in 2010. Prices will continue to stabilize with the possibility of some slight appreciation in certain areas of the East Bay particularly Concord in the 200k to 400k price range. This year will have some similarities to 1997 when we were beginning to come out of the economic malaise of the 1990s-we have to stay flat before we begin to move forward. As an impatient society we are conditioned to labels like "hot and cold, off and on, black and white, in and out, Red States and Blue States etc." The real estate scene in 2010 will be none of those-it will be somewhere in between. We still have a backlog of foreclosure activity to wade through which will mean that we will see more bank-owned and short-sale listings in the upcoming year and probably well in to at least 2012. The good news is the interest rates, currently around 5% thanks to an accommodating Federal Reserve. They will probably hold fairly steady until the federal incentives expire at mid-year at which time they will probably climb to the 6% to 7% range by the end of 2010. By historical standards those are still very attractive interest rates but not what have been used to recently. The unemployment rate will probably increase slightly at the beginning of the year but ease in to the single digits by mid-year. At about the time the federal housing stimulus programs run out, I think the politicians in Washington feel job market picture will begin to brighten, thereby balancing the economic climate. I really believe that getting people back to work is the key to getting through this period. Those employed folks will feel more comfortable with large purchases like homes and autos. Existing home sales in 2010 should be slightly better than 2009, but new home sales and construction will remain at record low levels due to the lack of credit availability for builders. The lack of new construction in recent years means that we are going to have a lack of new inventory for the consumers in 2010 through at least 2012. This phenomenon could help push the prices of existing homes up just like 1999 through 2005. I like to think of the glass as "half full" rather than "half empty." Thanks to you 2009 was the best year the Torrey Team has ever had with over 50 homes sold! Let's make 2010 a great year!

Posted in newsletter on 01/04/2010

The real estate market continues to both confuse and surprise consumers. Sales have been dramatically up recently in the period from May 16th through June 15th, and they have been since April. Our J. Rockcliff Corporate Office reports that in the period from May 16th through June 15th Walnut Creek sales were up 33%, Lafayette 40%, San Ramon 32%, Livermore 18%, Blackhawk 14%, and Pleasanton is up 54%! The entire region saw a 16% jump in sales. Combine that with a listing inventory reduction of 14% and you have a climate that can provide opportunities for potential sellers. Zack and I can bear those statistics out as we are having our best year as a team with 28 sales in the first half of 2009. So, can we call this a seller's market? It really depends on the price range. The $300,000 price range in Concord and the $500,000 price range in Walnut Creek for instance are strong seller's markets with numerous multiple offer transactions. If you go over the million dollar mark in Walnut Creek, Danville and Alamo and you have a buyer's market with plenty of available inventory. Put two and two together and you can see that suddenly opportunities are opening up for move-up buyers who can sell in a more friendly climate, take their equity and purchase an upper end home at a steep discount. It is true that today's real estate consumers have to deal with a skittish stock market, lousy but expected unemployment figures, and news media stories of the Bernie Madoff Scam Artist types. But make no mistake, with interest rates of around 5% these are the best of times for buyers and for sellers who are also buyers!

Posted by Pete & Zack Torrey on 07/08/2009

The media has done an excellent job in making the process of buying Bank Owned and Foreclosed properties out to be a simple task. They throw statistics at you that show thousands of properties that can be purchased for far less than they were formerly worth. While this has some truth to it, the reality is far more complicated. This market is the land of opportunity for the well informed, and the well represented. However, it is full of major complications that can cost a buyer thousands of dollars if they are not careful. It is for this reason that I have developed my Linebacker Real Estate technique, giving my buyers the distinct advantage. I am a former Linebacker, varsity football Defensive Coordinator, and Linebackers Coach, so this analogy was the best way I could articulate this system. Let me elaborate; as a Linebacker on the football field your job is to shed the blocks of your opposing teams players so you can make a tackle on the ball carrier. Good Linebackers are able to shed multiple blocks and make a lot of tackles, some of which are behind the line of scrimmage and resulting in a loss of yardage for the opposing team. If you apply this same technique to the real estate world you will see the similarities. The opposing teams blockers are the properties that are for sale with unrealistic prices, unrealistic sellers, unable sellers due to financial duress, short sales, pre-foreclosures, and so on. The great deals, (or the tackles behind the line of scrimmage), are the ready, willing, and able sellers who are motivated - like Bank Owned properties, concluded Foreclosures. These are where the big savings are had, if you know how to negotiate with these entities. They are not normal transactions; they are extremely complicated due to timeframes, disclosure obligations of the seller, title insurance, inspection result negotiation, closing costs, and more. However, my Linebacker Real Estate technique is battled tested, with insight from Realtors who specialize in listing Bank Owned Properties, Foreclosures, and Auction properties. I have taken that behind the scenes information and developed a game plan that weeds out the bad properties, (or sheds the blockers), and narrows down the really motivated sellers who want to make a deal. I then present my offers in such a way to allow for my client to squeeze the maximum they can from the seller, both in the initial offer negotiation, and in the inspections portion of the transaction. All the while I am hands on with guiding my clients through the sometimes confusing and long process of closing the escrow. If you would like more information regarding this cutting edge Linebacker Real Estate technique email me at Zack@TheTorreyTeam.com, or visit my website at http://www.thetorreyteam.com/. Let's get in the game and make some tackles!

Posted by Pete & Zack Torrey on 04/24/2008

The Hidden Lakes Real Estate Expert

The Torrey Team, Pete and Zack Torrey, have been selling homes in the area of Hidden Lakes in Martinez to satisfied customers since the 1970s. We believe Hidden Lakes is arguably the best "bang for buck" in the East Bay. The Hidden Lakes Community is bordered by the 62 acre Hidden Valley Park offering hiking, biking, fishing and numerous outdoor activities, because of the mild climate. It is located in Martinez on the Pleasant Hill border. Security Owners Corporation headed up by James Busby built Hidden Lakes in the 1970s and 1980s as part of a 1500 home master planned community in what was then called "Muir Country." Homeowners love the wonderful family atmosphere and the excellent schools nearby including Hidden Valley Elementary School, Valley View Middle and College Park High School. Highly -ranked Diablo Valley Junior College is just minutes from your door. Sun Valley Mall, shopping and all commute routes are all easily accessible.

To learn more about the Torrey Team and the community of Hidden Lakes visit www.TheTorreyTeam.com

Posted by Pete & Zack Torrey on 02/25/2008

The Torrey Team has sold about 400 Northgate homes to satisfied customers since 1977. While we have moved many people out of the area due to job transfers, we have also moved many of the same folks back. Let us show and tell you why we chose to raise our families here and why we love it so much:

The Northgate area of Walnut Creek is located at the eastern border of the city in the Mt. Diablo foothills. It is named for the northern entry into Mt. Diablo State Park. The area is characterized generally by homeowners who are interested in good schools, safe neighborhoods, and family values. Most of the homes were built in the 1950s, 60s and 70s by Scott and Ball, Permabuilt, Falender, and Eichler. Harold Smith followed by Standard Pacific built the upscale Rancho Paraiso development in the 1990s. The Northgate area gets more than 300 days a year of sunshine with an average yearly temperature of 60 degrees. Residents love the warm days and cool evenings. People from all over the world have been attracted by the life-style and the great locale near shopping, commute routes, BART, excellent schools, and great outdoor activities. Hiking, Biking, Heather Farms Park and Pool, Boundary Oaks Golf, Valley Vista Tennis Clubs and much more are minutes from your door.

For more information about the Northgate Area and Pete and Zack Torrey visit: www.thenorthgatetrianglenews.com

Posted by Pete & Zack Torrey on 02/25/2008