Real Estate: The Way to buy a home - Presented by: Ron Abta, GSB '99
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Real Estate:
_
The Way
to buy a home
Presented by: Ron Abta, GSB ‘99
Biography • GSB ‘99 • Full time real estate agent for 18 years, over $1 billion in sales • Father of 3 kids, a golden retriever, a leopard gecko, and a ball-python • Apartment building investor • Amateur farmer
Marin Independent Journal - 01/01/2021 Page : A01
Today’s web bonus » Marin virus testing. marinij.com
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Countywide internet access sought
already has, said Liza Massey, the A recent example of such a net for and whether they can ac-
Organizers of ‘Digital Marin’ plan county chief information officer.
“There wasn’t really a plan like
project was the creation of a free
community Wi-Fi network in the
cess them; and identifying poten-
tials for data sharing.
to determine where gaps exist this,” Massey said. “It’s a huge un-
dertaking and it’s great the com-
Canal neighborhood to address
longstanding access issues in the
This “digital divide” can re-
sult from several factors relating
munity has stepped up.” primarily Latino neighborhood. to income, age, racial equity is-
By Will Houston
The “Digital Marin” project The plan would allow local gov- While neighboring counties sues and geography, said Rebecca
whouston@marinij.com
organizers plan to begin work- ernments and other partners to have created similar invento- Woodbury, San Rafael’s director
ing with residents, governments prioritize certain projects, seek ries before, proponents of Digital of digital service.
Marin County has launched a and internet providers to deter- grants and shed light on areas Marin say this new effort goes “You can go out and get every-
new initiative aiming to ensure mine where the service gaps ex- where mutually beneficial proj- further by addressing larger is- one to the internet and that’s a
all residents can access high- ist and create an inventory of the ects could be conducted across sues such as equity; determining really critical piece, but then we
speed, affordable internet service. broadband equipment the county jurisdictional boundaries. what services people need inter- DIGITAL » PAGE 2
COPING WITH COVID GRIM MILESTONE
COOPED UP AT HOME California’s
death toll
for virus
hits 25,000
Surge in infections has
stretched hospital space
By Stefanie Dazio and Don Thompson
The Associated Press
California on Thursday surpassed 25,000 coro-
navirus deaths since the start of the pandemic,
the third state to do so after New York and Texas,
health officials said.
The grim milestone comes as the nation’s most
populated state faces a surge of COVID-19 infec-
tions that has hospitals stretched to capacity and
forced nurses and doctors to treat more patients
PHOTOS BY TERRY CHEA — AP PHOTO than usual. California also has confirmed the sec-
Ron and Allison Abta hold hens in front of their backyard chicken run in Ross. After talking for years about setting up a ond reported U.S. case of a mutant variant of the
backyard coop, they finally did so in August. coronavirus that appears to be more contagious.
The state Department of Public Health says
hospitals in Southern California and the agri-
Residents use extra time cultural San Joaquin Valley, which together ac-
count for a large majority of the state’s 40 mil-
to start raising chickens lion residents, have no capacity left in intensive
care units to treat COVID-19 patients.
Hospitals are housing patients in hallways,
By Terence Chea
were thrilled when their conference rooms, a cafeteria and gift shops.
The Associated Press
parents finally agreed to buy Makeshift hospitals are being set up in tents,
chicks. arenas and schools.
The coronavirus pan- “These chickens are like California was the third state to reach 25,000
demic is coming home to my favorite thing, honestly,” deaths, behind New York, which has nearly
roost in America’s back- said 12-year-old Violet, hold- 38,000 deaths, and Texas, which has more than
yards. ing a dark feathered hen in 27,000, according to a tally by Johns Hopkins
Forced to hunker down at her woodsy backyard. “They University.
home, more people are set- actually have personalities VIRUS » PAGE 2
ting up coops and raising once you get to know them.”
their own chickens, which The baby birds lived in- Ben Duddleston discusses buying chickens and supplies
provide an earthy hobby, side the family’s home for six from Leslie Citroen, owner of Mill Valley Chickens.
animal companionship and weeks before moving into DECADES OF WORK
a steady supply of fresh eggs. the chicken run in the yard. wanted birds just for eggs or ing for something to keep
January 9, 2021 11:41 pm (GMT -8:00)
Unsung hero of Powered by TECNAVIA
Agenda • Why am I here? • Impact of the 2018 tax code changes • COVID-19 effect on market dynamics • Rent vs. Buy • How should I establish my search criteria? • Picking a real estate agent & how best to negotiate a purchase • Role of technology • 2021 Predictions
Real Estate? Why should I care? “Buy land, they’re not making it anymore.” - Mark Twain “I would give a thousand furlongs of sea for an acre of barren ground.” - Shakespeare “It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate.” - Donald Trump
Questions to Ask Yourself • Why do I want to buy? • Can I afford it? • Is this about an investment opportunity, or more emotional? • What is my time horizon? • Is this about being part of a neighborhood community?
New vs. 2018 Tax Code changes: Comparision
Old Tax Code New Tax Code Difference
House Value $1,500,000
Property Tax Rate 1.163%
Property Tax Deduction $17,445 $10,000 ($7,445)
Down payment (20%) $300,000
Loan Amount $1,200,000
Interest on Mortgage 4.50% 53,603.96 53,603.96
Mortgage Deduction 44,669.97 $33,502.48 ($11,167)
Net Effect: Buyer is worse off by $18,612 each year.COVID-19 Effect on Market Dynamics
• Condo prices have decreased by 10%
• Rents have decreased 20 – 25% with the net outflow of residents
• House values have held strong
• Delay in new construction (SF has 18,000 units approved, but yet to break
ground)
• Doubling of inventory (75% condos) – highest level in 15 years, outpacing demand
• Complete change in logistics with the extinction of open houses and no real
seasonality
• High profile exodus to Texas by Oracle, Charles Schwab, McKesson, and Elon
Musk
• Insanely low interest ratesInterest Rates Near Historic Lows
San Francisco Bay Area Employment Trends
Rent vs. Buy
• Renting may make more sense for you if:
o If you need to sell at a specific time
o If the hold period is short
o If there is personal risk aversion
o If one is bearish on the market
o If one is adverse to leverage
Leverage intensifies gains, but can also intensify lossesRent vs. Buy: online tool www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0&abt=0002&abg=1
Rent vs. Buy: Case Study
Establishing Your Search Criteria
Backyard
(South
facing?)
In-law for
Views guests?
Proximity to Location/
retail Neighborhoods
Fixer,
Garage/ cosmetic
Parking fixer, or
turn-key
• What is important to you?
• Coordinate with loved ones
Soil School
(Geological)
District
Topography SizeHow to Pick a Real Estate Agent
How many buyers are you working with right now?
How responsive are you? Test it!
How many transactions have you closed in my neighborhoods
of interest in the last 12 months?
Are you full-time?
What is your negotiation style?
Can you give me the names of the last 5 buyers you helped?Getting the Most out of Your Agent • The more specific you can be, the better o Location o # of bedrooms / bathrooms o Budget o “Intangibles” • Manage his / her expectations o Timing • What not to tell your broker o Reservation price = serves as an anchor • What not to tell the opposing broker o What you’d be willing to accept / bid o Detrimental life situation (i.e. level of motivation)
How to Best Negotiate the Purchase
• Gather Data
o Comparables, both actives and solds
o Research the previous sale price for the property
• Know your reservation price
• Research the owner
o Understand his/her motivations
o Setting your offer apart: Rent-back, seller’s timing, etc.
o Digest “signals”
o Days on Market, pattern of price reductions
o LinkedIn search
o Emotional “tug”: Accompany offer with heartfelt letter with photo; connect any
way possible (Facebook / LinkedIn / Google)
• Walk-away Value: What is your BATNA? At what price you do not want to
be a part of the transaction.
o Look to the rent vs. buy spreadsheet for affordability
o Gut-check on price via the comparables / belief on future appreciation rate /
drivers of momentumRole of Technology
• Lots of online tools to help uncover valuable information
o LinkedIn, Facebook, Google: Discover a connection to seller that can be
exploited
o Zillow: can see what seller paid & provides a “Zestimate” of house’s value
• Tax records are online
o Research liens, such as back taxes
o Sfgov.org to see what permits were pulled on the property and what the
owner claimed as the renovation’s cost.2021 Predictions • Interest Rates will remain at historic lows throughout 2021 • House prices will increase dramatically, especially in dense cities • 90% of workers will go back to an office work environment • New construction will remain delayed until at least 2022 / 2023 • Paradigm shift in architecture with separate home offices becoming the norm
Q&A
Contact Ron Abta E m a i l : R o n @ p o l a r i s - re . c o m C e l l : (41 5) 5 9 5 - 7 6 6 1 We b s i t e : w w w. p o l a r i s - re . c o m
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