I am thinking of buying a home, do I have to pay my agent a commission?

No. As a buyer, you do not pay a commission to your agent. There are some instances that a buyer is willing to pay his or her agent. Where the buyer does pay is the Esrcow/Closing cost. Depending on where you buy, it may be paid by the buyer, the seller, or it may be a 50/50 split.

Is having a Home Warranty really necessary?

It’s subjective. I absolutely believe a home buyer, wither it be a first time or not, should have at least a 1-yr home warranty for the first year while living in the new home. I always purchase a deluxe 1-yr so that during the 12 months my clients live there, they’ll be able to know what needs repairs and what does not. What does, the home warranty usually covers (unless it’s something major).

What’s with the $8000 and $10,000 tax credit I’m hearing about?

For people who are currently looking to buy a home, the governement has a new incentive for buyers when purchasing a home in 2009. Buy a home, and you’ll get an $8000 tax credit; buy a new construction and get an additional $10,000 tax credit = $18,000 in tax credits. There are requirements based on your income and tax brackets and you should speak with you CPA or accountant on the amount you should expect to get if you do qualify for the return.

Compared to the 2008 tax credit, this one does not need to be given back – last year’s does, which is a BIG deal and can possibly help you in getting that large home, or getting it within a certain neighborhood. As of right now, the $8000 tax credit is only good until Nov 30th 2009.

For the entire requirements, contact Michael (415-680-8031)

What’s the difference between a Condo and TIC?

Pretty big actually. With Condos, you own the space within the unit, with a TIC, you are part of a collective that owns the entire building and you as the TIC owner has a percentage of the building. That’s the main beef that you should know, and if you didn’t – now you do!

I need more information on TICs

Okay, that’s not a problem. In San Francisco TIC’s is a sensitive issue because traditionally, when someone was part of a TIC, the entire group had to get one loan for the entire building = scary issue if one owner can’t pay their share of the mortgage. One doesn’t pay, all the owners will be at ‘fault.’

Now, it’s different today because home buyers can now take on individual loans for a TIC. Example, a triplex with three separate owners can now have three separate loans on the building. If one defaults, it’s only against one of the owners, compared to the entire building (that’s now it should be…duh, but it wasn’t for a long while). TICs also tend to have a higher interest rate on a loan, and not every bank does them, so you certainly need to ’shop’ around. When I work with my clients, I always tell my clients to get multiple quotes and to compare.

If you would like more in-depth information about TICs, contact Michael (415-680-8031).

What about the San Francisco Condo Conversion Rule?

Ah, yes, yes, yes. This one can be tricky. If you’re part of a TIC group and want to convert to a Condo, it’s possible, but depending on the number of units you live it, it can be quick, or murduriously long.

Quick hint = part of a TIC, live in a Duplex which is a 2 unit building, it’s not a biggie, you don’t have to go into the “lottery.” Live in a building over three units, oh my…you’re going into the lottery?!?!

If you would like to discuss and get more information about Condo Conversion, please contact Michael (415-680-8031).

What’s the Property Tax Rate in San Francisco?

It can change once every so often, so what you should do in order to keep up-to-date, is head over to the city of San Francisco’s official website for it. I’ve included it here to make it less painful of a search.

Current Property Tax Rate in San Francisco