GREEN REALTOR NEWS | Vol. 39
Market Update | ABR Designation | 100th Birthday Project | Photo Contest
Wow! The answers came flying in for this one! Andrea Mullin was the lucky winner who was the first to guess the San Francisco Ferry Building, specifically the ceiling of the historic Grand Hall which at one time sheltered over 50,000 people a day as they commuted to San Francisco. The opening of the Golden Gate and Bay bridges changed all of that and the Ferry Building was turned into office space, standing grittily in the shadow of the Embarcadero Freeway for 35 years. The 1989 Loma Prieta earthquake led to the demolition of the freeway and eventually the restoration of the building. The Ferry Building Marketplace, along with the Ferry Plaza Farmers Market, now houses many of the region’s most dynamic artisanal food purveyors. Want to learn more about it? Try a food tour with Edible Excursions, an award-winning food tour company in business since 2004. In addition to the Ferry Building they offer tours in Berkeley, Oakland and other parts of San Francisco, including a new one highlighting small businesses and artists in the Mission District. A little bird told me (ok, she’s my hairdresser who’s also a super-foodie) that as a long time resident of the neighborhood she was amazed by how many new and fabulous places she learned about on the tour.
Scroll to the bottom to see if you can guess the location of the June photo. The first person to email me with a correct answer wins a $25 gift certificate to local green business Sports Basement!
Market Update
Despite the sticking power of high interest rates, prices have remained relatively steady, even climbing a bit in San Francisco particularly for single family homes. In Marin, the market remains stronger than it was a year ago with more sales and more homes on the market. However, a decrease in the number of homes selling for over the asking price correlates with a lower number of homes receiving multiple offers. Single family homes in San Francisco are selling strong as always, due to the limited number and high demand. Condos in desirable locations and within a reachable price range are also selling well. Those at higher price points are facing challenges between high monthly payments and higher HOA fees in some of the buildings.
Interest rates have fluctuated a bit in recent weeks but have mostly stuck right around 7%. Some buyers have had success negotiating with sellers to pay a credit towards a “buy down,” which is a fee you can pay to the lender to secure a lower interest rate, either temporarily or permanently. This can help buyers qualify for a higher price or make their payments a bit lower to allow room to pay for property improvements.
Accredited Buyers Representative
One of the biggest changes to the real estate industry following the March 2024 settlement of the lawsuit against the National Association of Realtors is the new requirement (starting in August 2024) for buyers and their agents to enter into a written Buyer Broker Agreement before agents are allowed to show property. Gone are the days of casual touring while getting to know each other. While we expect that most sellers will continue to offer cooperative compensation (meaning that the sellers will pay the commission to the buyer’s agent), the Buyer Broker Agreement spells out what a buyer’s agent charges for her services. Buyers must agree to pay their agent’s fees, which can, but don’t have to be, offset by the seller. Ultimately it’s a good thing for both buyers and buyers’ agents to have a clear contract that spells out each party’s responsibility. Agents can work hard for their clients knowing that they have an exclusive relationship while buyers know exactly what they should be getting from their agent.
With that in mind, it seemed like a great time to pursue some additional credentialing by becoming an NAR Accredited Buyer’s Representative. I recently completed the online course and final exam (which I passed with flying colors!) While much of the information was not new to me there were a few interesting takeaways. NAR does periodic surveys of home buyers and sellers generational trends. Buyers in 2024 are relying on real estate agents for far more than helping them find a house. Here are the most commonly cited benefits recent buyers said they received from their agents, plus two at the end that are specific to our local market.
Helping buyer understand the process: 61%
Pointing out unnoticed features/faults with property: 58%
Negotiating better sales contract terms: 46%
Providing a better list of service providers (e.g. home inspectors): 46%
Improving buyer’s knowledge of search areas: 45%
Negotiating a better price: 33%
Shortening a buyer’s home search: 23%
Expanding buyer’s search area: 21%
Navigating the complex property insurance landscape
Creating a winning offer package to succeed in a multiple offer scenario
More big news about the 100th Birthday Project! A primary goal of the project was to achieve third party green certification before our home’s 100th birthday… and we did it! This month we were awarded the Pearl Gold + Solar Certification. Pearl is a national program in partnership with the U.S. Department of Energy, the National Renewable Energy Laboratory, Energy Star, the REach program of the National Association of Realtors, the national Appraisal Institute, and BPI, the national Building Performance Institute. The purpose of the certification is to allow buyers and property appraisers a quick and easy way to quantify how green and energy efficient upgrades increase the value of a home. The certification package includes the Appraisal Institute’s Residential Green and Energy Efficient Addendum that appraisers submit to lenders with their home appraisal report, which can increase a home’s value by 3 - 9%. It also includes an easily read report and online dashboard for potential buyers to understand the high performing aspects of our home. Not only that, buyers will have third party verification that this home will be healthier, more comfortable, cleaner, quieter and cost less to operate than similar homes.
We started with the Pearl program in 2021 after assessing the many green certification programs available. The Green Door app and dashboard provides an easy way to upload and keep track of your home’s assets while viewing your progress towards certification using their point system. You might be surprised by what counts towards certification. You could be farther along than you think. It’s free and easy to use, and can also help you find vendors and plan for future improvements. Want to check it out? Click on the button below to set up your own Green Door account.
Photo Contest
All of the beautiful photos in our contest are provided by Green Realtor News’ Artist-in-Residence, Esther Vermeer. Esther is a Mill Valley resident with a background in branding and graphic design. Originally from the Netherlands, she moved with her family to Montreal, Canada for a while and came to the Bay Area 14 years ago, where she has since established herself in the world of interior design. She loves to journey around California and discover the lush natural beauty the state has to offer. You can reach her at esther@prevalentprojects.com.
If you know the location email me at lucinda@lucindaotto.com. The first person with a correct guess wins a $25 gift card to Sports Basement.
I hope you enjoyed the Green Realtor News! If you know anyone buying or selling, or if you are curious to hear more about the market, please don’t hesitate to reach out. I’d love to help you or your friends make moves. As one of my happy clients loves to say:
Everyone Needs A Lucinda!
