Invitation to the Bonny Doon Church Craft Faire

Please be sure to attend the annual Bonny Doon Church Craft Faire on Saturday, November 8 from 10-4. See the flyer for more particulars. The first 5,000 people who mention my name will be allowed in for free, so be sure to mention my name!

Bonny Doon Denied Its Own Fire District-Santa Cruz Sentinel Article

Bonny Doon denied its own fire district
By Shanna McCord - Sentinel staff writer

Article Launched: 09/23/2008 10:49:59 AM PDT

SANTA CRUZ - Bonny Doon will have to stick with County Fire and give up any hope of breaking away to establish its own fire district. Aspirations of many in the small Santa Cruz Mountains community were dashed Monday night when the Local Agency Formation Commission voted 4-3 to deny a proposal from some Bonny Doon residents to disconnect from County Fire and create an independent fire district financed with property taxes.
Commissioners Cliff Barrett, Bob Begun and Jim Anderson voted to support the Bonny Doon proposal while Jim Rapoza, Roger Anderson, Tony Campos and Ellen Pirie said such a move would be harmful to the entire county.
About 500 people showed up at LAFCO's public hearing, which ran until 10:30 p.m., at First Congregational Church on High Street to make their cases - 75 speakers nearly split between supporting the proposal and wanting it shot down.
In the end, commissioners sided with a LAFCO staff report that said a new fire department for Bonny Doon would jeopardize fire protection in other parts of unincorporated Santa Cruz County, causing an estimated $365,000 annual loss to the County Fire budget.
"The problem is it will come at the expense of Davenport, Corralitos or the Summit area," Pirie said. "We can't pretend that it's not the case and that it won't matter because it will matter. It will matter a lot. I just can't do it."
Bonny Doon resident and retired fire Chief Tom Scully disputed the facts presented in the LAFCO report, saying there was no basis for the $365,000 figure presented by LAFCO Executive Director Pat McCormick.
Scully, who has been working for Bonny Doon's fire fighting independence since 2006, said the area suffers from slow response times, lack of training for volunteer firefighters and poor equipment.
In addition, he said the community was hurt by Cal Fire's failure to dispatch Bonny Doon volunteer firefighters during the Martin Fire.
"This is about the small fire that could become big. It's about the child who suffers an asthma attack or the person who has a stroke," he said. "Each situation demands a life-saving emergency response, and we're willing to take the responsibility on ourselves."
Several Davenport residents said they feared their fire coverage would take a hit if the Cal Fire station on Swanton Road were forced to close in the aftermath of Bonny Doon creating its own.
"It's unconscionable any area be shorted on service," Ken Fein of Davenport said. "Someone will get service at the expense of someone else not getting service, that's not fair."
Kay Todd, a Swanton Road resident, agreed.
"A separate district is not the solution," she said. "It's wrong that we're being pitted against each other. We should find a better way."
There is no avenue to appeal LAFCO's decision.
However, Scully said he would welcome any effort by county supervisors, especially Neal Coonerty, Ellen Pirie and Tony Campos, to help Bonny Doon residents come up with an alternative solution.
"The county never offered any options for our proposal," Scully said.
"They like to ignore the issue and hope it goes away."

Contact Shanna McCord at 429-2401 or smccord@santacruzsentinel.com.

More on the Fannie Mae, Freddie Mac Takeover

Curious about what happened during the days leading up to the dramatic seizure of mortgage giants Fannie Mae and Freddie Mac by the U.S. government?

Click here for a blow by blow of the final weeks before the takeover.

Courtesy of the New York Times

Breaking News: U.S. Gov't Takes Over Mortgage Giants

Yesterday, in a dramatic turn of events, the United States government seized control of the Fannie Mae and Freddie Mac companies in an effort to truncate the mortgage giants' negative influence on global markets as the housing market flails.

This new plan puts the companies under a government conservatorship and replaces their management. In addition, "The plan also commits the government to provide as much as $100 billion to each company to backstop any shortfalls in capital. It enables the Treasury to ultimately buy the companies outright at little cost. It bans them from lobbying the government...." Both companies are also required to shrink their portfolios in the future, and the government intends to "buy significant amounts of their mortgage-backed securities on the open market, beginning with the purchase of $5 billion worth this month."

Stephen LaBaton and Edmund Andrews of the New York Times comment that, "[The takeover] could become one of the most expensive financial bailouts in American history, though it will not involve any immediate taxpayer loans or investments."

Click here to read the article in its entirety, including further details of the rescue plan and commentaries from presidential candidates and top investors.

Tax Credit for New Homebuyers!

As part of the Housing and Economic Recovery Act of 2008 (H.R. 3221), the federal government is offering tax credits of up to $7,500 to new buyers between April 9, 2008 and June 30, 2009.

That's right. If you have not owned a house within the last three years and close escrow on a house before June 30th of next year--and that's any house--the IRS will cut either this or next year's tax bill by up to $7,500! The credit is intended to "jump-start housing sales and clear out unsold real estate inventories," according to Kenneth Harney at the Washington Post.

Keep in mind, however, that this particular tax credit does require that beneficiaries pay back the credit "starting in the second tax year after purchase and continuing for up to 15 years." In this way it is, in essence, an interest free loan.

For more details on the stipulations of this new credit and to find out if you are eligible, click here.

Email me to talk about purchasing a new home, or click here to see my current listings.

Foreclosure Relief Bill Becomes Law

This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California.

The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default.

It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply.

These requirements will remain in effect until January 1, 2013.

The full text of Senate Bill 1137 (Perata) is available at www.leginfo.ca.gov

Highlights of the new law are as follows:

• Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a similar declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.


• Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.


• 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.

New California Cell Phone Laws

Today is July 1st, which means today is also the day that California's new Cell Phone Laws go into effect.

As of today, it is illegal to use a handheld wireless telephone while operating a motor vehicle. Motorists who are 18 and older may use a "hands-free device"--a Bluetooth or other earpiece--but those motorists who are younger than 18 may not use a handheld phone or a hands-free device at all.

For more detailed information about the new law and answers to Frequently Asked Questions, click here.

FIRE PROTECTION: What You Need to Know

It has been a busy start to the fire season in California. In many of the fires where we have seen homes destroyed, there has been a lack of defensible space around the homes. This is the area within the perimeter of a parcel where brush clearance, emergency access, and other wildfire prevention measures must be maintained.


Recent changes in state law require that homeowners in certain high fire risk areas maintain defensible space clearance out to 100 feet from their home, expanded from the 30-foot firebreak that was already required.Even if you are not in a high fire risk area, it’s a good idea to create enough defensible space around your property to decrease the risk of fire.

Here is a link to the brochure of the CDF's guidelines for creating defensible space: http://fire.ca.gov/cdfbofdb/PDFS/4291finalguidelines2_23_06.pdf

For more information, the CDF website is http://www.fire.ca.gov/

Dump the Junk: Another Tip on Stopping Junk Mail

Did you know that the average household receives 1.5 trees' worth of junk mail annually?

If you've ever wondered, as you tossed the unsolicited catalogs and direct mail materials directly into the recycling bin, if there is a way to stop this waste of paper, fuel, printing, etc., there is!

Simply log on to https://www.directmail.com/directory/mail_preference/ and opt out of direct mail lists at no cost.

Upcoming Event: Bonny Doon Art & Wine Festival

This Saturday, June 7th, the Bonny Doon Community School Foundation is hosting the

6th Annual Bonny Doon Art & Wine Festival

from 1PM to 5PM

at the Bonny Doon Airport Gardens!

The Bonny Doon Community School Foundation (BDCSF) is hosting the 6th Annual Art and Wine Festival on Saturday, June 7th, from 1PM to 5PM. It will be held at the beautiful Bonny Doon Airport Gardens with over 20 wine tasting tables and over 40 auction items and demonstrations. A tasty array of gourmet treats and local musicians will also be adding to the fun festivities under the redwoods. Art works by featured artist Barbara Bailey-Porter and a beautiful collection of local artists' quality fine arts and crafts will be available for sale.

BDCSF holds this annual fundraiser to support programs at Bonny Doon Elementary such as music, art, assemblies, teacher training, developing a model science lab/classroom for the K-6 students, and growing the funds in our endowment.

Tickets are $25.00 in advance or $35.00 at the gate. Call for tickets and more information at 831-423-7728 or visit www.bonny-doon.info.

This year, the BDCSF has a goal of growing the endowment to $100,000. This is the largest event contributing to that goal, so mark your calendar!

One-Stop Web Surfing

Check out www.allmyfaves.com

Talk about convenience!

The State of the Market: Not as Bad as You'd Expect?

According to Market Watch,

"Top officials with the National Association of Realtors and Standard & Poor's, which issues the S&P/Case-Shiller Home Price Index, agreed this week their monthly reports are giving imprecise readings of price changes at all levels -- national, state and regional -- due to rare market conditions that are skewing survey results."

These "rare market conditions" include an anomalous trend in which sales of more expensive homes are dropping do to tighter lending restrictions and sales of less costly homes are spiking due to increased foreclosures. These phenomena combine to dramatically lower the national median home cost.

In addition, the S&P/Case-Shiller index tracks just 20 major markets in the country, making its data less than representative; and, the fact that the index has only been around since 2001 is good to keep in mind to keep some perspective when it issues reports using language such as "plunged by a record" and "fastest rate ever."

In the end, Chris Plummer reports that, according to the NAR's Chief Economist Lawrence Yun, "pockets of severe price declines in local markets are skewing figures. If homeowners want to determine their property's value, it's never been more critical to take the measure of recent sales by home-price level in their town or city neighborhood."

For a free report to determine the value of your home based on local market conditions, contact me directly at frank@frankmurphy.net or 831-457-5550.

To read the article in its entirety, click here.

Fed Rate Cut Predicted

The monetary policy meeting of the Federal Reserve is just two days away, and many predict that the institution is likely to cut the short-term interest rate once again, from 2.25%to 2%.

This would be the seventh time that the rate has been lowered since August, and would signal that a recession is still a strong possibility this year.

Although the stock market is doing relatively well at the moment, soaring prices for oil and food have fostered a growing fear of imminent recession.

In addition, as Steven Weisman of the New York Times reminds us, "A tricky aspect of the Fed’s decision is that the impact of whatever it does may not be felt for more than six months. Many economists say it takes at least that long for interest rate cuts to have an economic effect."

In the end, one major issue that the Fed will battle over is the need to take care of inflation versus the need to ward of a recession.

Click here to read Weisman's article in its entirety.

FYI: Request for Reappraisal in Santa Cruz County

Santa Cruz Association of REALTORS®
Email Ed
Week of April 7, 2008

REQUEST FOR REAPPRAISAL OF HOME IN SANTA CRUZ COUNTY


When the taxpayer in Santa Cruz County believes he/she is being over assessed this form may be submitted to the Assessor's Office so that the current assessed values may be reviewed. For more information see the County’s brochure entitled Prop 8 Reductions under Tax Cycle Information.

Note: If you are unable to open the link to the Request for Reappraisal form simply copy and paste the link below into your browser.

http://sccounty01.co.santa-cruz.ca.us/asr/forms/taxform10.pdf

The Secrets to Real Estate Success

The Santa Cruz Sentinel published an article today featuring the testimonies of Santa Cruz's most successful Realtors.

Frank's secret? "I love helping people."


by Jondi Gumz, Santa Cruz Sentinel

Homebuyers are scarce. Sales are down 50 percent compared to the peak of 2005.Yet some real estate agents closed a deal a month -- or more -- last year, the slowest year of the past decade. How did they do it?

About 90 people showed up Wednesday at a luncheon organized by the local chapter of the Women's Council of Realtors to hear six top agents share their secrets.

Quipped moderator Robert Bailey, president of Bailey Properties, "This could be the new cast of 'Survivor.' "

When Sally Bookman started in real estate in 1974, she made it a habit to write notes to the prospective buyers she met at open houses. She didn't procrastinate; she started writing notes before the open house ended. Now she has a huge referral business.

Bookman, originally from London, bought a house while studying at UC Berkeley. She filled the house with students, then bought the lot next door, and then another house.

"I never lost at Monopoly," she said.

She said she uses her doctorate in social anthropology to figure out what clients want."If you drive that car and the way you dress, I know what kind of house you want," she said.

Frank Murphy made only one deal in 1998, his first year in real estate. He had expected his new career would mean lots of free time, but he worked 70-80 hours a week.

He uses his 15 years of experience as a building contractor to help buyers solve problems.

"I love helping people," he said.

Audrey Tennant, who's been in the business for 20 years, stays in touch with clients. She uses seasonal marketing campaigns. Working in human resources and marketing for a food and wine company over the hill, she learned patience during union negotiations.

Real estate, she said, is "a give and take business not a push and shove business."

Michael O'Boy initially didn't want to follow in the footsteps of his dad, who was a broker. He became a therapist instead. Then he traded that profession for real estate in 1995 when he decided he wanted to become a homeowner. He found his background as a therapist helpful."You listen more and say less," he said.

Lela Willet taught kindergarten until she had a second child. Then she left the classroom to work with her husband, a builder. She sets aside time once a week to call every one of her clients. She does it away from the office, so she doesn't get interrupted.

Being with 5-year-olds, she learned patience and listening, valuable skills in real estate.Pat Simmons made connections in construction working as a masonry contractor with his father."I can recommend folks I would use," he said.

He also can advise clients how much to offer when they tell him the kitchen has to be updated. One lesson he learned from his father: Ask yourself: "Are you proud to put your name on your work?" Ask that question every day.

So what do they all have in common?

It's not high-tech gadgets.

In fact, only Murphy and O'Boy like technology. All of the others outsource computer tasks.Experience counts, certainly, but that's not enough by itself.

For each of these agents, the key is helping people. It's finding out what their clients need and helping them get what they need.

As Simmons put it, "It's about success for the client, not you and the commission."

Well said.

Lessons from survivors

Audrey Tennant
Firm: David Lyng Real Estate
'07 escrows: 14
Started in: 1987
Was in: Human resources/marketing
Relaxes by: Spending time with grandchildren.
Quote: Look for opportunities. Remember buyers turn into sellers.

Frank Murphy
Firm: Keller Williams Realty
'07 Escrows: 19
Started in: 1998
Was: Building contractor
Relaxes by: Traveling
Quote: Instead of trying to make a buck, I have an opportunity to help people solve a problem.

Mike O'Boy
Firm: Coldwell Banker
'07 Escrows: 25
Started in: 1995
Was: Therapist at Dominican Hospital
Relaxes by: Coaching
Quote: Don't take for granted where your business will come from. An open house three years ago could result in a client. Return every phone call.

Proposal to Increase Lending Limits: What Do You Think?

Designed to "jump-start the ailing U.S. housing market," the current federal economic stimulus plan includes a proposal to increase the size limit on loans from mortgage financiers such as Fannie Mae and Freddie Mac. At the moment, the limit is set at $417,000. With this proposal, the loan limit would go up to $729,750.

According to this post at TheTruthAboutMortgage.com, "the hope is that the easing of the loan limits will allow homeowners in more expensive housing markets to obtain more favorable financing, which in turn should promote sales and uphold home prices."

However, not everyone is quite so optimistic. This article by Al Yoon of Reuters gives a more cynical view than the opinion over at TheTruthAboutMortgage. Yoon fears that raising the loan limit might unintentionally raise mortgage rates, since "increasing the eligible loans to $729,750 from $417,000 would change the characteristics of mortgage-backed securities, leading traders to exact a premium for increased interest-rate risk." Higher mortgage rates would in turn, of course, "make it even harder to unload already high housing inventories and existing homes on the market, delaying any housing recovery and potentially extending the U.S. economic slowdown."

We're curious what you think about the economic stimulus proposal and its hope to increase loan limits . Go ahead and read both articles (click on the links provided) and let us know your prediction!

How the New Rate Cuts Might Affect Your Mortgage

As most of us know, last Wednesday marked another .5% rate cut for the Federal Reserve, placing the current interest rate at a flat 3%.

Alan Heavens of the Chicago Tribune has written an insightful article about the way that short-term interest rate cuts affect the public's perception of mortgage rate. Click here to read about the rush for refinancing in the wake of the most recent rate cuts.

The Santa Cruz County Housing Market in 2008

Will Santa Cruz County succeed in "bucking the statewide housing trend"?

According to Sentinel staff writer Jondi Gumz, some say it can:

"Santa Cruz County is expected to bypass the statewide housing trends in 2008.

Alan Nevin, economist for the California Building Industry Association, said his statewide prediction for smaller homes and lower prices might come true in San Luis Obispo but not in Santa Cruz.

'The problem in Santa Cruz is supply,' said Jeff Becker of DMB Associates in Hollister and association chairman. 'You're not going to see smaller homes there at lower prices. Builders can build larger and always have a buyer.'

The CBIA forecasts 2,200 housing starts in the Central Coast area, which runs from Santa Cruz to Santa Barbara counties. From 2002 to 2005, an average of 4,581 single-family homes got permits; the number dropped to 2,000 in 2007. Multifamily homes, often less than 1,000 units, are not a significant factor.

Between 2,000 and 3,000 new jobs are projected in 2008, a slight improvement over 2007, but down from 7,000 in 2005.

Here's what locals expect:

Jeff Talmadge, Aptos builder: 'I think pricing from trade contractors will be lower this year than last year. I have had some of them tell me they will be more aggressive about going after more types of work than in the past. There have been more instances of contractors who are based over the hill competing for jobs here in Santa Cruz than I have ever seen before. From an environmentalist's standpoint, I like to see homes heading toward being smaller.'

Dennis Norton, Capitola land-use planner: 'Nothing new is coming down the pike. I think it's going to be a slow year. The business in Santa Cruz is remodeling; compared to new homes, the ratio is 10 to 1 or 6 to 1. The only people building are on the high end, people who aren't affected by the economy. A third of my clients are like that. They're from over the hill. One paid $2.7 million for property in Pleasure Point, tore down the house and will probably spend $2 million to build. As for smaller houses, I don't see that. That may be true in the spec business but nobody is in the spec business now. Maybe the condos under construction on 41st Avenue. They just started framing on that project.'"

B of A Set to Buy Countrywide

Bank of America Corp officially announced today that it will buy mortgage lender Countrywide Financial Corp for $4 billion dollars.

According to Reuters, "Countrywide's market value has slid by about $22 billion in the last year." Caught in the subprime mess up until now, hopes are that the merger will "avert one of the biggest collapses in the U.S. housing crisis."

Bank of America and Countrywide will combine to create the nation's second-biggest mortgage lender.


Bank Of America to Buy Countrywide For $4 Billion, from Reuters via the New York Times

Press Release: Frank Murphy - Expertise in Luxury Home Market

Frank Murphy with Keller Williams Realty Luxury Homes Division of Santa Cruz recently completed a luxury home marketing training course offered by the Miami Board of Realtors.

The course - which covered such topics as demographics of the affluent, lifestyle segmentation, trends and amenities in today’s luxury home product, and creating a marketing plan for the multimillion dollar property – was taught by Laurie Moore-Moore, President of the Dallas-based Institute and author of the book, “Rich Buyer, Rich Seller! The Real Estate Agents’ Guide to Marketing Luxury Homes.”

“The course is a step towards earning the prestigious Certified Luxury Home Marketing Specialist designation which The Institute awards internationally to sales professionals who meet performance standards in the upper-tier residential market,” said Moore-Moore. Frank Murphy is an example of a sales associate who works to hone the special skills and competencies necessary to provide exceptional service in the fine homes and estates marketplace.”

Frank Murphy is an award-winning sales associate who has been in real estate since 1997 and specializes in the Santa Cruz County market. Frank is currently one of the 25 Top Producing Realtors in Santa Cruz County.

“The training provided new insight about the upper tier market, helped me polish my skills, and provided valuable networking contacts with other agents across the country who specialize in luxury properties,” said Murphy “In addition, I discovered new and creative tools for promoting expensive homes and estates and new resources for finding buyer prospects. Home buyers and sellers will benefit from my new knowledge.”

For current information on the upper tier market, contact Frank Murphy at Keller Williams Realty Luxury Homes Division of Santa Cruz at 831-457-5550 or email Frank@FrankMurphy.net

www.frankmurphy.net