June 20, 2008
In light of the recent ruling allowing same-sex couples to marry in California, this subject seems especially relevant. Please note that you may now have the option to take title as community property with right of survivorship; always ask your attorney what s/he recommends as the best method for your individual situation. This article will be appearing in the new edition of Jane and Jane Magazine—check it out as this publication goes national!–Jackie
Buying a home together is a much bigger step than just moving in together. Before you take that step, it’s important that you’ve thoroughly discussed all the angles, including the emotional, legal, financial, and even aesthetic factors that go into the process of purchasing property together.
Q: What if my partner already owns a home and I don’t?
A: This can work to your advantage, especially if the home will be sold or refinanced to free up equity that can be put toward a downpayment on the property you’re looking to purchase. Here are a few ways to handle this situation:
1. Your partner converts her home to rental property, and you purchase a new home to live in.
2. Your partner sells her property, and uses the proceeds toward purchase of your new home.
3. Your partner sells a percentage of her property to you. If you take this route, begin with a professional appraisal to establish market value. You can then proceed by refinancing the property in both of your names, and re-recording the property according to your new ownership percentages.
Q: What if there is a big difference in our credit and/or earnings?
A: Don’t let this deter you from talking about purchasing together. You have options about how to structure the financing and ownership shares that will help to equalize the process.
1. When you apply for a loan together, your incomes and credit scores are combined, and your loan application is handled as a loan to a group. As long as you both have good credit scores, the differences in your income will not matter to the lender—they will be looking at your combined ability to afford the monthly payments.
2. You may opt to own the property in equal shares. Many financial planners will recommend purchasing according to each partner’s ability to pay: for instance, if one of you earns $50,000 and the other partner earns $100,000, you can purchase and hold ownership as “tenants-in-common”, with the lower income partner owning 33%, and the higher income partner owning 67%, each paying according to her ability. Likewise, if one partner comes into the purchase with a large downpayment and the other partner can afford a higher payment, you may split the purchase based on these differences.
Q: How do I protect what I have already, while purchasing a new property with my partner?
A: It’s critical that you talk with a trusted financial advisor, as well as an attorney, to understand how your status as domestic partners, and as co-owners of property, may affect you. Your DP status can have profound effects on co-ownership in the event of a death or separation, with differences in property tax, transfer tax, and inheritance tax rules. You may choose to have the equivalent of a prenuptual agreement drawn up before purchasing property together. The way you “take title”, or hold ownership of the property, can also have critical consequences for you as a couple. Make sure you fully understand all your options before getting into the heat of a home purchase.
Q: Once we have decided we’re ready to buy, what do we do?
A: Here’s where the fun begins.
1. Get preapproved for a mortgage to establish price range and your monthly expenses. Since most sellers will require a letter of preapproval with your offer, and because it can take a few days to receive preapproval, this step is critical before you head out to shop for properties.
2. Discuss which neighborhoods you’d both like to live in, and what type of property would suit you best. Consider quality of life, proximity to friends and family, length—and expense—of your commute, and of course, price range. Would you prefer a condo or a single family house? Are you open to purchasing a TIC interest in a multiple-unit building? How interested are each of you in home improvement, or do you prefer something ready-to-go?
3. Interview a few agents, and select a Realtor to help you find exactly what you’re looking for. Your agent will be your biggest ally and trusted advisor in this process. Does she listen to you? Does she respect the dynamic between you and your partner, and engage each of you the way you prefer? Choose someone with whom you feel comfortable, preferably someone who can make referrals to professionals familiar with LGBT co-ownership issues, and offer candid feedback about the neighborhoods and properties you’re considering.
As you move through the process of finding and purchasing a home, you’ll learn more about each other, and what you each want your home together to be. And if you can make it through the process of discussing a purchase, qualifying for a mortgage together, selecting a home and deciding to buy, you’ve overcome most of the biggest hurdles you’ll have to deal with as you make your home together.
Enjoy.
Posted in General Info + Opinion, Buyer Basics 
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May 1, 2008
One of the biggest frustrations I hear from my clients who own TICs is dealing with the complication of shared tax bills. Once a TIC group of owners is formed, a single tax bill arrives for the property at tax time. Owners need to divide the tax bill, and then the ominous “supplemental” tax bill, based on relative purchase price ratios, which can often differ from ownership percentages, and even percent of loan obligation.
The San Francisco Assessor’s office is now offering fractional assessments for TIC buildings, which will allow each unit’s owners to receive a tax bill based on their relative purchase price. Contact the assessor’s office for details about requesting individual tax assessments and separate tax bills.
Read more in the article published today in SF Gate.
Posted in General Info + Opinion, TIC / Tenancy in Common Issues No Comments »
April 16, 2008
I just visited the angryrenter.com site, and it begs an important question: is it really fair for the government to bail out banks and borrowers who took on high-risk loans and are now facing the music? The organization is asking for people to log on and let congress know where they stand.
I’d offer a guess that there are just as many homeowners who purchased in the last 5 years who might be a bit annoyed that they passed up those great low ARM rates in favor of more stable loans at higher rates… and now those borrowers–and their risk-taking banks–are getting a break.
Comments anyone?
Posted in Real Estate Legislation, Mortgage Rates + Financing, National + California News, Buyer Basics No Comments »
April 13, 2008
Visit Property Website
Come take a look at this incredible transformation of a small Victorian house into 2 custom TIC homes: From foundation to finish, these homes have open floorplans, hardwood floors, large windows, luxury kitchens and baths, and special details. Come take a look! Close to Potrero Hill, Noe Valley, Mission Dolores and all the shops and restaurants that make these neighborhoods some of the most dynamic areas in the city.
Showings Sun 4/13 from 2-4pm
Tues 4/15 2-3:30pm and 6-7pm
Offers considered on and after April 16th, 3pm at the Zephyr SOMA office.
All disclosures are available online by request.
Upper Unit: 2 level house-like unit, 3 bedrooms, 2 baths, and 2 car parking. TIC pricing: $995,000
Lower Unit: 1 level, 1 bedroom, 1 bath, and 1 car parking. TIC pricing: $525,000
Restored Victorian Facade. Front door for lower unit at right of photo.
Open floorplan of the garden unit looks onto a custom-landscaped yard shared with the upper unit.
Back of the homes shows large windows over the entire property.
Posted in General Info + Opinion, Properties of Interest, Dolores Park Living No Comments »
April 13, 2008
Selected properties for the Week of April 2-9:
919 Elizabeth, 3br/2ba contemporary condo. Asking $1,389,000, sold for $1,495,000.
580 Diamond. 1br/1ba “rustic” home. Asking $895,000, sold for $935,000.
88 28th St. 4br/3ba contemporary home. Asking $1,625,000, sold for $1,725,000.
1412 Alabama. 2br/1ba condo in Victorian. Asking $699,000, sold for $709,000.
Posted in General Info + Opinion No Comments »
March 29, 2008
In case you’re looking for a reason to venture past the official border of Noe Valley and into Glen Park, this fun little tourist sight might be it. To have a look at the incredible antique 3-dimensional signage, take a stroll through Glen Park on Chenery to number 240, between Fairmount and Miguel.
Where is Glen Park?
South of 30th Street, East of Diamond Heights Boulevard and West of San Jose Ave, and North of Bosworth/O’Shaugnessy Avenues, you’ll find one of San Francisco’s best kept neighborhood secrets. Like the location, home prices are still a bit south of Noe Valley’s and Glen Park enjoys similar weather, Victorian and Mid-Century architecture, and a thriving little business district with its own BART station!
Glen Park has its own beautiful park, Glen Park Canyon, which can be accessed via the Rec Center off Bosworth, or from just below Diamond Heights boulevard at the end of Sussex Street. The canyon is home to an incredible assortment of plant and animal life, huge eucalyptus and a few hilly places to climb and enjoy outlooks of the canyon.
Glen Park Hardware, the Cheese Shop, ModernPast, and Destination Bakery all line the end of Chenery, where it lands in the heart of Glen Park Village at the new Library and Canyon Market. Stop by to have a pizza at Gialina, coffee at Cafe Bello, a chicken Mole taco at La Corneta, or a French dinner at Le Petit Laurent on Diamond.
Have questions about Glen Park, Sunnyside, Mission Terrace or any of the city’s more southern neighborhoods? Email or call me with your questions, to request listing alerts, or set up a time to pick up a free map of any of these areas.
Posted in General Info + Opinion, Dolores Park Living No Comments »
March 29, 2008
An artist friend of mine tipped me off to this wonderful impromptu art piece on 20th Street above Church, just above Dolores Park.
The “Wish Tree” sprung up, and is tied with ribbons bearing visitors’ hopes and dreams.
I can’t guarantee it’ll be up for much longer, which is exactly what makes it so special.
all photos by Jackie
Posted in General Info + Opinion, Dolores Park Living No Comments »
March 28, 2008
Where is this building going? According to SF DBI Permit, this 2-unit building is being given a second life as part of 8 new units scheduled to be built on the site. The commercial structure on this lot was demolished, and an addition to this 2-unit building is being put in place.
Stop by the lot at 26th and Valencia, between Valencia and Orange, to get an in-person look at how an historic building is completely moved, and readied for its rebirth as part 8 new housing units.
Posted in General Info + Opinion, SF Fixers and Flips, Development, Dolores Park Living No Comments »
March 28, 2008
No Parking on Cumberland Street, on the block just West of Church Street!
This incredible display of Wisteria lives at the top of Cumberland, just below the Cumberland stairs which lead over the hill into the Castro.
Cumberland Street runs parallel to, and between 19th and 20th, and breaks at Dolores Park. This quiet street is close to the 18th St. Gourmet Ghetto, where you can find Dolores Park Cafe, Bi-rite, Delfina, Pizzeria Delfina, and Tartine. Other great stops include Stem florist, Fayes Video and Espresso, and the Bi-rite Creamery.
Don’t miss the NEW condo development, Chelsea Park, which is accessible from Oakwood Street off 19th. Visit Chelsea Park’s website for more information, and contact me for a tour of the property, or to put a deposit on one of the units scheduled to be released for sale later this year.
Posted in General Info + Opinion, Development, Dolores Park Living No Comments »
March 22, 2008
Springtime is showing its colors in Dolores Park.
Until now, the blog has been focused on a variety of topics, and with all the recent National financial news, I have included many stories about financing, mortgage rates, and the national meaning of the foreclosure crisis and why San Francisco is different.
After lots of deliberation, I’ve decided that my friends and clients might be far more interested in what’s happening right in our own backyard–the area within a mile or so of Dolores Park.
Watch for upcoming changes in the blog, a new URL where you can find the blog, and lots more colorful photos with scoop on what’s happening.
For rates, national financial news, and mortgage info, feel free to write me or visit these sites:
bankrate.com
mortgage-x.com
money.cnn.com
Happy Spring!
Jackie
Posted in General Info + Opinion No Comments »
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