The Millennium Tower continues to sink according to a European satellite.  It is reported to be sinking at a rate of 1.6 to 1.8 inches a year according to recent data. 

The Millennium Tower is a 58 story residential tower that opened in 2009 and was seen by many as the premier luxury building in the City.  The problem is that this building's foundation was not built down to bedrock and as a result has been sinking.  Some of the tenants claimed that the developers had led them to believe that the sinking was subsiding, but from recent reports this is not the case.

The sinking will continue to be a problem for this building at least throughout the near future until developers actual fix the problem. 

For additional information feel free to read the post at http://www.msn.com/en-us/news/us/leaning-san-francisco-tower-seen-sinking-from-space/ar-AAkS38H?li=BBnbfcL

The Property Tax rate for the City and County of San Francisco is to increase in 2014 from $1.1691 per $100 of assessed value in the 2013's Fiscal Year to $1.1880 per $100 of assessed value.

To see a breakdown of how our property tax dollars are  used visit. Socket Site.  http://www.socketsite.com/archives/2013/09/san_francisco_property_tax_to_increase_where_the_dollar.html

I read an interesting article today on the Top 10 States Hit by Foreclosures.  The following is the information from RealtyTrac. 
Note the average number of foreclosures in the nation is 1 in 1,155 housing units with an average foreclosure sales price of $110,000.

1    Florida                        1 in every 392 housing units
2.    Delaware                  1 in every 480 housing units
3.    Maryland                    1 in every 618 housing units
4.    South Carolina         1 in every 660 housing units
5.    Illinois                        1 in every 700 housing units
6.    Ohio                            1 in every 757 housing units
7.    Connecticut               1 in every 768 housing units
8.    Nevada                       1 in every 859 housing units
9.    Iowa                            1 in every 869 housing units
10.  Utah                            1 in every 889 housing units


See link. http://realestate.msn.com/10-states-hit-hard-by-foreclosures

There is a lot going on Mid Market in San Francisco these days.  There are over 40 projects currently taking place between Van Ness and 4th St.

Below is a summary of the projects which if approved and completed we can expect to see in the next few years:

• 55 5th Street - Hotel Zetta is a 116 room hotel.
  
• 88 5th Street - The Old San Francisco Mint has been scheduled to be turned into a museum at some point.
  
• 55 9th Street - AVA at 55 Ninth has 273 high end units and 5,000 sq. ft. of ground floor retail space.
  
• 14 10th Street - NEMA, 754 units.
• 168 Eddy - This former parking lot is scheduled to become a 14 story building of 153 affordable housing units and a 13,7560 sq ft grocery store.
  
• 121 Golden Gate Ave - The St. Anthony's Dining Room was demolished for a 10 story building with an expanded dining room, 90 BMR units for seniors and state of the art kitchen.
  
• 220 Golden Gate Ave - Kelly Cullen Community Center.  $95 million makeover that houses 172 formerly homeless people, an auditorium, gym, and Department of Health clinic. 
  
• 277 Golden Gate Ave - Lofts @ 7, 88 loft and studio apartments with  studios of 276-450 sq. ft, junior one-bedrooms of 400-525 sq. ft. and lofts of up to 850 sq. ft.
• 1 Jones Street - The Hibernia Bank is to be developed into an assembly space.
• 901 Market Street - Is a 6 story 230,000 sq ft building undergoing renovation.
  
• 935 Market Street - Market Street Place is to be 250,000 sq ft of retail space sometime in 2015.
  
• 950 Market Street - 950 Center for Arts and Education is a mixed use facility with 200 residential units, arts and education facilities, and retail space.
  
• 973 Market Street - The Wilson Building will be converted into a 65 unit rental building.
  
• 988 Market Street - Warfield Office Condos where the current Warfield Building is undergoing renovations.  Spotify and Benchmark Capital will occupy the office areas, and the theatre will continue to run.
  
• 995 Market Street - 16 story 93,000 sq foot office building.
  
• 1019 Market Street - Eastern Outfitting Building is undergoing a massive remodel in hopes of attracting tech company leases.
  
• 1023 Market Street - International Art Museum of America contains Eastern and European Art.
  
• 1028 Market Street - Purchased by Scott Plank and War Horse LLC and is likely to be torn down and redeveloped.
  
• 1095 Market Street -  The Grant Building.  94 room hostel/hotel.  42,000 sq ft.
  
• 1125 Market Street - 150 units in a 12 story building with 16 parking spaces.
• 1127 Market Street - The Strand, ACT will convert the building into a live performance space and restaurant.
• 1275 Market Street - Dolby Laboratories headquarters taking up the full 354,000 sq. ft. of this 16 story building.
  
• 1355 Market Street - Twitter's headquarters, Yammer and One King's Lane. There will also be a 22,000 sq ft food court.
  
• 1390 Market St - Fox Plaza will add an 11-story addition and the new tower is to be constructed where the low-rise portion currently exists, creating up to 250 new residential units, with no new parking spaces.
• 1455 Market Street - Square has leased 246,000 sq. ft. across four floors, with the option to add another 81,000.
• 45 McAllister Street - The Renoir Hotel.  Undergoing $40 million renovation.  When completed it will have a roof top bar.
• 901 Mission Street - 5M Project is to become 1.85 million sq feet of office space, 748 residential units and 34,000 sq ft of outdoor space..  This 4 acres site is approved to become 5 new buildings and rehabbing the Chronicle Building. 
  
• 942 Mission Street - Hampton Inn.  15 floor hotel with 174 rooms mid-priced rooms.
  
• 1188 Mission Street - Trinity Place, will consist of 1,900 units, 1,450 parking spaces and 60,000 sq. ft. of ground floor retail space.
• 1321 Mission - 160 units in an 11 story building. 120 units would be designated as efficiency dwelling-units, and at least 80 units will be reserved for student housing. There is 3,359 sq. ft. of retail and 240 bicycle parking spaces.
• 1400 Mission Street - 190 affordable units.
• 1415 Mission Street - 165 units in a 14 story building with 2,800 sq. ft. of retail space, and 101 valet parking spaces.
• 101 Polk Street - 162 units and 51 parking spaces in this 13-story building.
• 1 Taylor Street - Wework Golden Gate Theatre has turned offices into a rent-a-desk full amenities space.
• 55 Taylor Street - Center for New Music is a 4400 sq ft space for musicians to work rehearse and perform.
• 85 Taylor Street - Phantom Coast Gastropub and Brewer will be a 5000 sq ft brewery at the former Club 65 site.
• 1 Van Ness Avenue - Mixed-use project would contain around 250 dwelling units, 3 commercial units, and space for the Conservatory of Music.
• 100 Van Ness Avenue - Conversion to 399 residential units and 112 parking spaces.

This is a link that contains descriptions and more details of many of these projects.  http://sf.curbed.com/archives/2013/09/09/midmarket_map_update_40_projects_revitalizing_the_area.php

The new UCSF Medical Center on Third Street has passed the half way mark.  It has been under construction for nearly two and a half years.  The outer structure is largely complete and interiors are all well underway. The center when completed is scheduled to consist of three hospitals.  One a children's, one a women's specialty, and the final a cancer hospital.

Once completed it will add new jobs to the neighborhood and provide a significant beneficial impact to the neighborhood.

When considering which option is best for you, consider how you want your ownership rights distributed and what you want to happen when you sell a property.  Each type of ownership has its own advantages and disadvantages.  Here is a list of basic ways to hold title, but you should contact an attorney or CPA who understands the differences as they pertain to you and your particular situation.

Sole Ownership
You can take title in your own name, which is referred to as sole ownership, or title in severalty. You can do this if you are unmarried, if you have been married but are now legally divorced or if you are currently married but want to acquire the property in your name alone.  In the last case, if you are married, your spouse will have to relinquish his or her rights to the property.  An interesting thing to note is that one who was previously married and now divorced is called an "unmarried" person while a "single" person is a person who has never been married.

Joint Tenancy
Married couples often hold title as joint tenants.  This allows two or more people to share ownership. When two or more people own property as joint tenants and one owner dies, the other owners automatically own the share of the person who died. For example, if a parent and child own a house as joint tenants and the child dies, the parent automatically becomes full owner and visa-versa. Because of this right of survivorship, no Will is required to transfer the property. It goes directly to the surviving joint title holders without the delay and costs of court probate.

Tenants in Common
Tenants in Common lets multiple people hold title in unequal percentage shares.  Each person has the right to sell their share, or Will their share as they want. For example, three buyers could own a property with one buyer owning 50%, one owning 30% and one owning 20%.  Each would be able to sell or Will their own shares as they want.

Community Property (or co-ownership)
There currently are nine states that allow married people to purchase property, either together or individually, as community property. They are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin This basically means that each person owns 50%, but each needs to write in their Will how their share is to be divided when they die.  If the ownership is community property with rights of survivorship, however, then the deceased spouse's interest terminates once they die, and the surviving spouse owns the entire property.  A special advantage is that community property assets (such as the house) Willed to a surviving spouse receive a new "stepped-up basis" to market value on the date of death.  The stepped-up basis means that when the property is eventually sold, there is less taxable gain. 

Living Trust
A living trust can be created only in the name of individuals who are alive.  A Living Trust is like having another "entity" own and control your assets, including your home.  That "entity" belongs to you, or others designated as trustees, who "own" the entity. While the creator of the Living Trust lives, the Trust is revocable (can be changed during your life). Upon the death of the creator of the Living Trust, it becomes irrevocable (cannot be changed).  A major advantage is that court probate costs and delays are avoided because the assets in the Trust automatically pass according to the dictates of the Trust. Privacy is another major advantage in setting up a Living Trust. Also court challenges of living trusts are virtually impossible, whereas Will challenges by disappointed relatives is much more frequent.  A trust document does not become public upon the death of the trust-holder unlike a Will which does.  Some mortgage lenders will not allow a buyer to close the transaction in a Trust.  There is usually no problem with transferring it in to a Trust after the close.

San Francisco is experiencing one of the shortest levels of inventory of property listings I have ever experienced.  There just are not as many properties being put up for sale as we have had in previous years.  There definitely was a change that happened over last year. 

A healthy market typically has about 3 months worth of properties available on the market in any given month.  San Francisco in November of 2012 had just 1.4 months worth of active housing units up for sale.  This is causing a spike in pricing as there are less properties available and more buyers looking to purchase who now enter into bidding wars.  Just this past week I saw 17 disclosures go out on one property and 16 disclosure packets go out on another.  Also one of the houses 162 22nd Ave in the Lake District went $122,000 over asking price in January and sold for $1.31M.

If you are a buyer, be prepared to pay above asking if you want to get a good property in a nice neighborhood.

The Bay Area had home prices climb across the region in 2012.  This increase in prices was driven by tech growth and a recovering national economy.

Median prices for single-family detached homes were up in all but 8 of 107 communities in the Bay Area for the fourth quarter, according to the real estate data firm DataQuick.

Prices in San Francisco rose 21.2 percent.

Prices in Oakland were up 35 percent.

To see full article in the Wall Street Journal click here.

Many people think that any realtor can do a short sale.  Why this maybe true, technically, it is like saying oh any doctor can amputate a limb, but if I am going to have a limb amputated I want a surgeon specializing in that area before I go under.  There is a reason that only an estimated 1/3 of short sale deals get completed. 

Some of the nuances of a short sale are:
1) Preparing the clients
2) The process takes 3 months or longer (the bank servicing the loan(s) of the seller first has to agree to the offer, then the investors have to agree)
3) Identifying the number of lenders (if there are more than two you are probably going to have problems)
4) Knowing if the current seller is delinquent, has received a Notice of Default, etc (if a bank has started the foreclosure process there may not be enough time to complete the short sale)
5) The property is usually going to be required to be taken "As-is" and this causes
6) The property will often have deferred maintenance so there will be additional costs
7) If the property is missing appliances such as stoves, and the buyer is going to have to get a loan from a bank, the bank often will require that there be a working stove in place before closing and if the seller doesn't have money to put in a new stove this is going to cause problems
8) Pest reports, if pests are found and the buyer is getting a loan, the Bank will usually require that the pest damage be remedied before closure and the seller will often times not have the money to do so
9) Inspections need to be more careful than usual as all the maintenance costs and repair costs will be born by the new buyers
10) Delinquencies in HOA dues are often a problem and sometimes the buyer may have to pay them off

These are just some of the challenges of a short sale transaction.  I can tell you from experience that these challenges can be overcome and result in some great deals for buyers.  I have had clients receive properties which have appraised $50,000 to $100,000 higher than the prices they paid.  After having done some short sales I can tell you that they are anything from a typical real estate transaction and if you want to have a successful short sale, I would definitely only use a realtor who has at least some experience with short sales.

Home Warranty Insurance is an insurance plan that covers the maintenance and expenses associated with appliances and household items such as the refrigerator, dishwasher, plumbing, electrical wiring, heating, ventilation and air conditioning units.  If you have Home Warranty Insurance and if your air conditioner or heater should stop working, you place a call and the home warranty company will send out a technician to repair it for you.  If the technician cannot repair the appliance the home warranty company will replace the appliance for you.

You need to be careful when selecting a Home Warranty Insurance Company.  Many plans do not cover pre-existing conditions, or repairs due to the lack of maintenance, etc.  Such conditions are generally mentioned in the small print in the contract and are easy to miss.  So make sure that when selecting a provider you address these issues right from the start.  Note some may provide coverage for this at an additional cost.