NAR Article on Commercial Real Estate Condition

Summary of National Association of Realtors® article on commercial real estate: "Conditions Mixed in Commercial Real Estate but Fundamentals Good", May 15, 2008, by Walter Molony:

• NAR Chief Economist Lawrence Yun said performance in the commercial section is greatly mixed across the county. It is important to understand local market variations.
  
• To expect broadly slower net absorption for office and industrial space.
• Project softer rent growth in commercial real estate.
  
• Areas with strong job growth are doing fairly well.
• The article also listed the states with the strongest job growth and states with greatest job losses.
• Even with a lot of concerns about the economy, corporate profits are high.
• Analysis of quarterly data for major commercial sectors including office, industrial, retail market, and multifamily markets. Statistics include: net absorption of spaces, vacancy rates, annual rent growth percentage for the four market sectors.

As a real estate agent in Modesto, CA, I subscribe to the NAR news and automatically receive weekly email notifications on the subjects that interest me. This is a good way of keeping up to date on real estate market conditions and news.

Second Home in Silicon Valley - Summer Escape, Kids' Activities

To keep kids busy during Summer vacation, I started looking into summer programs each year in March and by the end of May, the schedule is pretty much finalized. Having a second home close to our Modesto Home, Central Valley of California, in Silicon Valley has provided a whole lot more options for the kids to learn, explore, and have fun during Summer...

This year, the same as the past two years, I have signed up the kids at the Extended Year Summer Enrichment Programs offered by DeAnza College in Cupertino, California. Each elementary, middle, or high school participant ranging from grades 1 to 10 choose four courses and the program lasts for 4 weeks, 4 hours each day. I tried to choose activities that cover different areas:

For art & cultural enrichment: Drawing and painting, Japanese language, Beginning Spanish

For academic improvement: Essay writing

For communications: Public speaking

For fun, "intellectual" enrichment: Science Exploration, computer application and internet research

Physical activities: Tennis at Cupertino Sports Center.

Other courses from the same summer enrichment program include:

• Middle/High shool level: Lego robotics (usually fills up very fast), debate, drumming techniques, creating comic books, basketball, PSAT preparation, pre-algebra, algebra.
• Elementary school level: Cartooning and comic art, poetry hot pot, sculpture and clay, earth science /geology, math and art, reader's workshop.

The program starts June 23 and ends on July 18, 2008. After the four week program, we like to have family travel time and visit different places, either in the U.S. or other countries.

Modesto real estate agent's summer escape - looking forward to it...

California Real Estate Broker License Required Courses

As a Modesto real estate agent, getting a California Real Estate Broker license is on my to-do list. There are five required courses and three electives in order to apply to take the broker exam in California. These are the courses I've taken so far and the dates I passed the course exams:

• Real Estate Principles 12/12/2006
  
• Real Estate Practice 9/27/2007
  
• Legal Aspects of Real Estate 10/24/2007
• Real Estate Economics 12/03/2007
• Residential Real Estate Appraisal 1/15/2008
• Property Management 2/19/2008
• Real Estate Office Administration 4/29/2008
• Real Estate Finance - targeting end of May 2008

Except for the first three classes where there are live classes (a person teaching the course in a classroom setting), all others are self study courses. I wasn't able to locate a real estate broker class that is not self-study (at least not in Central Valley or Silicon Valley, California).

There will be a five hour broker exam and 75% passing score to qualify for a license (in addition to either a college transcript from an accredited college or two year real estate salesperson experience). The broker exam preparation will keep me busy in June, just when my elementary school age kids are out of school. To keep them busy as well, there are a few strategies that I use...

Real Estate Auction for Lender Foreclosed Homes - Modesto California REDC Auction

On April 29, 2008, I attended the REDC real estate auction of lender foreclosed homes in the Modesto California area. Prior to that, I called and received a catalog totaling 305 pages listing about 1500 homes that are to be auctioned in the Northern California area. There are nine auction days in the following cities: Sacramento (2 separate days), San Francisco, San Jose, Fresno, Modesto, Merced, Stockton, Oakland. There were four separate days where open houses were held for these foreclosed homes.

To buy at the auction, there are some steps to follow:

1. Register for the auction. This can be done online.
2. Pre-qualify for financing (unless it is a cash deal).
3. Visit and inspect the property / properties during the open house dates (all properties are sold "as-is").
4. Have a cashier check of $5000, made payable to yourself, and bring that to the auction. (A $10,000 cashier's check is needed to purchase each additional property.)
5. Bring a photo id to the auction.
   
6. Have a personal check to cover the balance of 5% earnest money deposit. So the $5000 cashier's check combined with the amount from the personal check have to equal the 5% of the Total Purchase Price.
   

There is a 5% "Buyer's Premium" added to the winning bid amounts for the Total Purchase Prices. All properties have clear title. There is no "Cooling-Off Period" or "Right to Rescind" once a bidder wins the bid. A real estate agent or broker representing the bidder are entitled to a 1% commission unless the Broker/Agent is also acting as a principal in the transaction. Some of the auction homes are "Cash Only", i.e. no financing is allowed. I believe in these cases the winning bidders have 30 days to pay the remaining balances. Some homes that have monthly HOA dues are listed as such in the catalog or in the "Auction Day Notes" flyer.

I stayed for about an hour at the Modesto real estate auction, and the auctioneer auctioned off about 26 properties. The auction was fast faced. No photography or video taping is allowed inside the auction area. There was a note outside the auction area saying that auction prices are not disclosed and people can check the properties' sale prices after close of escrow.

For the auction homes in Modesto and the surrounding areas (Ceres, Keyes, Patterson, Ripon, Riverbank, Salida), the starting bids ranges from $1,000 to around 200K. The homes "Previously Valued" (as listed in the auction catalog) from 130K to 600K. For the 26 properties that were auctioned off during my attendance, the final bidding prices ranges from 30% to almost 70% of the "Previously Valued" prices.

More information can be obtained from the Real Estate Disposition Corporation wesite.

Disclaimer: All information is verified but not guaranteed. Please check with the appropriate sources if there is any discrepancy. This is not to be used as investment advice. This detailed an auction event attended by a Modesto real estate agent Irene Chan, MS, REALTOR ® in Modesto California on 4/29/2008.