Do You Have a Retirement Account?

Maybe you don't, because you're doing your best to keep up with monthly expenses.  But consider it anyway.  It doesn't have to be a large amount, some credit cards connected with investment or banking firms have a program to put accrued points into an IRA.  Or just try a savings account, or a money market account.  Why?  Because it's a way to build wealth as early as possible in your life.

The gap between homeowners and renters is ever widening, "The median net worth of a homeowner is about $400,000. A renter’s is just about $10,000", according to the Aspen Institute, just one of many financial sources concerning data on wealth. Home equity is one of the ways to build wealth, people with more income also have investments.  Many younger people have benefited from family money funneled into down payment, or parents who take money out of their home equity and lend or give to their child. This becomes more and more important as the market price of a home gets higher.  Some people don't have family money, but don't think that you can't ever buy-- first of all, you have to realize that most people don't start at the top, they start where they can reach their goal of homeownership, which can lead them to their next goal of another home.  

Homeownership creates stability, and creates a stronger community for everyone. I have worked with buyers who were not able to buy until well into their 40s. There's not an age limit for getting a mortgage (although that may be true in other countries), and there are various loan programs and down payment program available.

Find a REALTOR who can provide a buyer orientation, explain the process of mortgage and introduce you to a financial person, and explain the financial responsibilities of homeownership, whether it's a house or a condominium.  

For more information to investigate on your own, go to https://www.hud.gov/counseling for information on buying, obtaining a reverse mortgage, or avoiding foreclosure.  For more information on owning, buying, selling, renting, plus more, go to https://myhome.freddiemac.com and in particular, learn about credit management at https://myhome.freddiemac.com/resources/creditsmart.

Often times, a client does not want to tell their REALTOR indepth information about their financial circumstances (although certain things a REALTOR must know about about, such as down payment amount), but a client does go through much more financial disclosure with their lender.  So by going to the links above, a buyer (also a seller who will become a buyer after closing escrow), will be more prepared for discussion, and planning for their future.  

As a professional REALTOR for the last 30 years, I am acquainted with clients' stories, and what they have sometimes been through before buying. Please feel free to contact me with questions, I have access to a lot of information that can help you.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

What Are Reasons to Buy, No Matter Whether Interest Rates are Unpredictable?

View towards San Pedro

 One of my most popular posts was on the cost of waiting to buy, posted several years ago. 

And it's still an important reason to make a move -- 

Renting vs. Buying. Waiting for better interest rates can result in long term higher costs. Renting has zero equity growth and offers no tax benefits of homeownership.

It's important to watch the shifts in the local market, and stay ahead of the changes, not behind them where you're playing catch-up.

There's been talk of when the interest rates will drop -- but look at the local market--in spite of interest rates dropping and then rising again, the local single family market and condo market has still risen when comparing October 2023 to October 2024.  The demand is still strong, and that's helping the overall upward surge in prices. Here's a scenario from my post back in 2009, you can substitute in current asking prices and slightly higher interest rate, but the point is still the same:

Let's make an assumption that the prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $250,000 to go down 5% to $237,500, and the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible, the buyer's monthly payments will increase almost $79 per month.

If you're a first time buyer (meaning you haven't owned property in the last years), look into the buyer programs offered through various banks.

If you're holding back because you think interest rates will drop again, or again, just think about how you could be gaining equity, and saving on  tax deductions.  Not every home that's come on the market is selling, and reasons vary, but think again about your goals towards homeownership.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

New California State Law Requires Buyer Broker Agreement as of January 1, 2025.

 

Craftsman home in Long Beach

As predicted, Governor Newsom has signed into law AB 7229, the new requirement for buyers and their brokers to sign an agreement with each other before making an offer on  a property.  This law applies to both residential and commercial real estate.  There are some differences from the National Association of REALTORS settlement requirements already in practice, including the fact that the NAR settlement concerns residential property only, whereas the new state law (in effect starting January 1, 2025) covers all properties both residential and commercial, and all licensed agents whether or not they are REALTOR members of the National Association of REALTORS.

"Unlike the N.A.R. settlement, which focuses solely on homes listed on an MLS, AB 2992 requires a written buyer representation agreement for any property, residential or commercial, whether it is listed on an MLS or not. This means that all licensed real estate agents, regardless of the type of property they are showing, must have a signed agreement in place before representing a buyer. This is a significant improvement in transparency for consumers, ensuring that they are fully aware of the services their agent will provide and the compensation structure before engaging in any transaction."  from the Santa Barbara Independent, Oct. 3, 2024 .

Contracts may be renewed, and are limited to 3 months for each contract period. While some people may not understand the significance of having such a contract, as a buyer it is important to understand what is to be expected of the agent and the standard of care to be received by the buyer. Buying a property is a large financial and legal commitment, and both agent and buyer need to be actively engaged with each other. According to the NAR settlement, such contracts must be signed before showing a property which will affect REALTORS, and per state law, commercial agents must have a buyer agreement signed before submitting an offer.

It's worth noting that if the state law requirement for a buyer broker agreement is not met, the Department of Real Estate may remove an agent's license.

If you would like more information on working with a Realtor, please contact me for further explanation and consultation before entering into a contract.

See prior post for buyer broker contracts

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

How Can Two Appraisers Value the Same Property Differently?

House with pool

 A situation to avoid in any market is ending up with a contract price that the appraiser doesn't agree with. Sometimes sellers are willing to lower their selling price, or buyers raise their contract price, or adjust their loan level if possible to meet the new selling criteria.  Sometimes an appraiser is willing to make an adjustment (not very common), or the lender order a new appraisal which is probably going to be an additional expense to the buyer. This is why it's so important to find the right list price and selling price when putting your property on the market--sometimes though, there's just no predicting even when you thought you chose justifiable comparables.  Read the article below about how these disparities can come about.

 How Can Two Appraisers Value the Same Property Differently?: One of the most frustrating things for consumers, agents, and even appraisers involved in a real estate transaction is seeing disparate results in two or more appraisals of a property. A variety of factors—including timing, purpose of the valuation and comparable sales used—can lead to disparities.

Residential Market Prices in Long Beach, August 2024 - Plus Purchasing Power Calculator

 

Residential Market Prices for City of Long Beach

Condo Median:  $526,000 |  Condo Average: $566,963

Single Family House Median: $1,072,500 | SFR Average:  $1,160,406

Downtown Long Beach - 90802

Single Family Median:  $830,000 |  SFR Average: $830,000

Condo Median:  $514,500 |  Condo Average: $575,804

North Long Beach - 90805 

Single Family Median:  $705,000 | SFR Average: $673,875

Condo Median:  $547,400 | Condo Average: $547,400

East Long Beach - 90808

Single Family Median:  $1,116,000 | SFR Average: $1,111,824

Condo Sales:  None

East Long Beach - 90815

Single Family Median:  $1,178,000 | SFR Average: $1,267,962

Condo Median: $547,500   | Condo Average:  $591,000

City of Lakewood

Single Family House Median: $871,000 | SFR Average:  $934,629

Condo Median:  $770,000 |  Condo Average: $770,000

City of Signal Hill

Single Family House Median: $1,050,000 | SFR Average:  $1,050,000

Condo Median:  $625,500 |  Condo Average: $650,833

 

Long Beach Months of Inventory is 2.8 months, an increase from 2.3 months this time last year.

The industry standard for months of inventory is as follows, which shows we are in a seller's market in Long Beach and most other surrounding areas, even though we've seen an increase in listings recently:

Seller’s Market: <= 5.5 months
Balanced Market: >=5.6 and <=6.5 months
Buyer’s Market: >=6.6 months

If I can give you more specific information about your local neighborhood, please contact me.  The above figures are by no means all local information.  

To see how interest rates are impacting purchasing power, both buyers and sellers should find this public interactive tool very helpful:  https://www.car.org/marketdata/interactive/interestrateaffordability

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

What Does the NAR Settlement Mean for Homebuyers Starting August 17th?

REALTOR logo

The National Association of REALTORS has published the following on its website concerning what the NAR settlement means for all homebuyers.  In addition, it is fully expected that California will sign into law in 2025 that all licensed agents (not just REALTORS) will be required to form written agreements with their buyers.  Note that August 17 is the practice change date for  all REALTORS nationally.

                                                                                                   

Buying a home is one of the largest financial transactions most people will ever undertake. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate your homebuying journey and make the choices that work best for you. NAR’s recent settlement has led to several changes that benefit homebuyers, and we wanted to clearly lay them out for you.

Here is what the settlement means for homebuyers:

• You will sign a written agreement with your agent before touring a home.
• Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
• The buyer agreement must include four components concerning compensation:

1. A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
2. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
4. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.

• Written agreements apply to both in-person and live virtual home tours.
• You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
• The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
• You can still accept concessions from the seller, such as offers to pay your closing costs.

These practice changes will go into effect August 17.

Here is what the settlement doesn’t change:

• Agents who are REALTORS® are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.
• Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and understand what services you are receiving.
• You have choices. Work with your agent to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.

If you are an unrepresented buyer and would like to discuss working with an agent or find out more information about a buyer broker agreement, please feel free to contact me without obligation.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Rules About Broker Compensation Are Changing -- Everywhere

Broker compensation is not going away, but it will be handled in a different way than has been the previous long-established practice.  

As of August 13, 2024, revised California REALTOR forms for residential real estate are going into effect, as well as the way listings are entered into CRMLS.  These changes are the result of a nationwide settlement entered into between the National Association of REALTORS and the Department of Justice as the result to lawsuits which were filed in other states.  "To remain compliant with the settlement, CRMLS must remove all compensation fields from the MLS. Compensation negotiations will not be allowed in the MLS in any way, shape or form." - CRMLS.   Because compensation is being removed from the MLS, it is handled separately in one of the following ways, or a combination thereof:

     a) when the buyer includes a term in the offer stating the Seller will pay the Buyer Broker fee. Assuming the seller agrees, the Buyer Broker fee becomes part of the complete purchase agreement. Additionally, if using the C.A.R. Residential Purchase Agreement and Joint Escrow Instructions (RPA), the payment would also become part of the Escrow instructions.

    b) when the buyer directly compensates the buyer agent, i.e., per terms in the C.A.R. buyer/broker agreement required to be in place prior to an agent showing property to a buyer, a requirement as of August 13, 2024.

    c) or compensation from the listing agent (not made through the MLS).

This is not a practice change only in California, it is nationwide for all REALTORS that entered into the settlement, which is more than one million National Association of REALTORS members, MLS members and other qualifying brokers.

REALTORS in California have always used a listing contract which explained how compensation occurred, and will continue to do so. A seller should expect to get a clear understanding as well under the new practices when they are contemplating selling their property and going over a listing contract. 

The same holds for buyers who are now required to enter into an agreement with their brokers -- additionally, it's anticipated that this will become a California state law in 2025.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Understanding HOA Fees in a Homeowner Association

Houses facing street

When considering a move to a gated community in Long Beach, understanding Homeowners Association (HOA) fees is crucial. These fees are a significant factor in the overall cost of living and play a vital role in maintaining the quality and amenities of the community. They are also factored into a buyer's loan qualification before getting approval. Some HOAs are composed of multi-family style attached units (i.e., Stoneybrook), while others are made up of detached single family residences (i.e., Del Lago).

Multi unit building with balconies

Here’s a comprehensive guide to help you understand HOA fees in Long Beach gated communities.

What are HOA Fees?

HOA fees are monthly or annual payments made by homeowners to the Homeowners Association, which is responsible for managing and maintaining the community common  areas. These fees fund various services, amenities, and community upkeep. Not all the factors listed below will necessarily apply to the association under consideration, there may not be a guard gate, interior roads or a pool. In Long Beach, there are however numerous association which do include many features on the list. It's important to know all the features you may be paying for.

What Do HOA Fees Cover?

HOA fees in gated communities often cover a wide range of services and amenities, including:

1. Security Services

   • 24/7 security personnel
   • Gated entrance management
   • Surveillance cameras and security systems

2. Maintenance and Repairs

   • Landscaping and lawn care
   • Street and sidewalk maintenance
   • Common area repairs (e.g., clubhouses, pools)

3. Utilities

   • Water and sewage for common areas
   • Lighting for streets and common areas

4. Amenities

   • Upkeep of recreational facilities (pools, gyms, tennis courts)
   • Clubhouse maintenance
   • Community events and activities

5. Insurance

   • Insurance for common areas and community structures

6. Reserve Fund Contributions

   • Savings for future large-scale repairs and replacements (e.g., roofing, road resurfacing)

Factors Influencing HOA Fees

HOA fees can vary significantly based on several factors:

1. Community Size and Type

   • Larger communities with more homes often have lower fees due to shared costs.
   • Luxury communities with high-end amenities may have higher fees.

2. Amenities and Services Offered

   • Communities with extensive amenities (pools, fitness centers, golf courses) typically have higher fees.
   • Enhanced security measures can also increase fees.

3. Maintenance Requirements

   • Older communities may require more frequent repairs, leading to higher fees.
   • Communities with extensive landscaping or high-maintenance amenities may have higher costs.

4. Management Style

   • Professionally managed HOAs may have higher fees due to management company costs.
   • Self-managed communities might have lower fees but require active homeowner participation, and the knowledge to self-manage.
     

How Are HOA Fees Determined?

HOA fees are typically determined by the community’s budget, which is developed by the HOA board. This budget outlines all anticipated expenses for the year, including maintenance, amenities, and reserve fund contributions. Homeowners may have the opportunity to review and comment on the budget before fees are finalized.

Why Do HOA Fees Vary in Long Beach?

In Long Beach, the variation in HOA fees can be attributed to:

• Location: Communities closer to the coast or with scenic or ocean views usually have higher fees due to premium real estate values.
• Community Size: Smaller, exclusive communities may have higher fees to cover fixed costs among fewer homeowners.
• Amenity Quality: Communities offering high-end amenities or newer facilities often have higher fees to maintain these features.

Pros and Cons of HOA Fees

Pros

• Well-Maintained Community: Regular maintenance and repairs keep the community attractive and functional.
• Access to Amenities: HOA fees provide access to various amenities without additional out-of-pocket costs.
• Property Value: Well-maintained communities often see higher property values.

Cons

• Cost: HOA fees are an additional expense on top of mortgage payments and property taxes.
• Restrictions: HOAs may impose rules and regulations that limit how you use or modify your property.
• Financial Management: Poor financial management by the HOA can lead to unexpected fee increases or special assessments. Recent insurance increases in the market also have an impact.
  

Tips for Managing HOA Fees

1. Budget Accordingly: Factor in HOA fees when calculating your overall housing budget.
2. Understand the Rules: Familiarize yourself with the HOA’s rules and regulations to avoid fines.
3. Attend Meetings: Participate in HOA meetings to stay informed about budget decisions and fee changes.
4. Review Financial Statements: Regularly review the HOA’s financial statements to ensure funds are managed properly.

Conclusion

Understanding HOA fees is essential for anyone considering moving to a gated community. These fees ensure that the community remains secure, well-maintained, and equipped with desirable amenities. By understanding what HOA fees cover, how they are determined, and how to manage them, you can make an informed decision and enjoy a hassle-free living experience in your new community. When in escrow, make sure that all documents submitted to you as the buyer are reviewed before you investigation period expires.

For more personalized advice or to explore gated communities in Long Beach, feel free to contact me. With my experience in HOAs, I can provide detailed insights and help you find the perfect home.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Open Letter from California Association of Realtors President

(The letter below as of May 1 is running in nearly 40 local newspapers, including the Los Angeles Times, San Francisco Chronicle, Mercury News, Sacramento Bee, San Diego Union-Tribune, Orange County Register, Fresno Bee, Press-Telegram, Desert Sun, Record Searchlight, as well as the California editions of The Wall Street Journal and The New York Times.)

Dear Californians,

If you’ve been reading about real estate lately, you’ve no doubt heard about antitrust lawsuits and settlements by real estate brokerages and the National Association of REALTORS®. You’ve also heard about the settlements resulting in certain changes in how agents will be compensated for their work. Recent coverage by media entities, industry insiders and anyone with an opinion and a smartphone have offered up a mix of fact and fiction. All this noise has caused confusion, fear and, in some instances, panic about the process of buying and selling a home.

We thought it time to speak directly to you. We’re California REALTORS®, and we know a thing or two about real estate. In fact, it’s precisely because of our knowledge about the complexities of what is arguably the most important purchase people make in their lives that we want to say this first: It’ll be okay. Yes, some real estate practices will change as a result of these settlements, but California REALTORS® know how to adapt to changing market realities. We always have.  And, while we understand that uncertainty can be deeply unsettling, especially when there are few answers and many opinions, we know we’ll figure it out together, as an industry and with our clients.

Here’s the bottom line: The two major changes resulting from this litigation are 1. Properties listed in databases known as the multiple listing service (MLS) will no longer be allowed to include an offer of compensation to buyer’s agents and 2. Homebuyers who want to work with an agent will need to sign a written agreement with that agent prior to touring a home. This means before you start your home search, you’ll need to discuss and agree with your agent what the agent will do on your behalf, and you’ll need to decide how much and how to pay that agent.

Of course, it’s not that simple. How consumers work with agents in this new environment will need to work itself out, and there will be differing approaches between agents and their clients.  Many in the industry, and we at the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), are currently working on sorting through and articulating those new practices as quickly as possible. Moreover, in California, we have supported transparency with respect to how buyer’s agents get compensated for more than two decades, since C.A.R. introduced its first buyer representation agreement in 1999. So, while the implementation of practice changes resulting from this settlement may be new, the spirit behind them is not — at least not in California.  We’re all for transparency because we believe it’s in our clients’ best interests and we know the value we bring to the transaction.

We’re in this business because we believe in putting people not just in houses, but in homes. You may regard us as the organization that fights to protect homeowners’ rights. That’s true. But more likely, you know us because we’re your neighbors. We live in the same communities as you. We volunteer alongside you at our kids’ schools, we show up to serve at local civic and charitable organizations, and we sit on city councils to make our communities better. And while we’re known as the neighborhood experts, we’re also trained in all facets of a real estate transaction, meaning we know what it takes to successfully conduct a home purchase or sale. Our jobs are far more involved — and far less glamorous — than what you see on real estate “reality” shows. The truth is that real estate transactions are complicated. That’s why we have to be well-versed in myriad financial and legal requirements in order to guide you through such a complex process. We negotiate on our buyers’ behalf to get them the right home at the right price, and we help sellers determine the best listing price based on market and neighborhood fundamentals. We guide our clients through the nitty-gritty of home inspections and innumerable other details, and we support our clients through what can be a stressful time. We come to this job because we love putting people in homes. We stay in this job because we love working with our clients, who become our friends and neighbors.

As we’ve done for decades, through up markets and down markets, through periods of industry change, we will stand by our clients, serve our communities, and continue to do what we do best — work to create a future that enables homeownership for all who want it.

Sincerely,
Melanie Barker
2024 President
California Association of REALTORS®

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

New Real Estate Practices in California

There are changes coming to the way REALTORS and all real estate licensees do business. 

One change has actually been discussed many many times since about 2004, or perhaps a little earlier, and that is, requiring buyers to sign buyer representation agreements with their agent of choice. Of course, listing a home with a listing agreement in place has been in place for decades, but working with  a buyer, until July 2024, did not require that practice.  Well, this is all changing.

The Road to Solutions

California Regional MLS, one of the largest  MLSs in California and the nation, is soon putting a rule into place that a buyer-broker agreement must be executed before property is shown to a buyer by a REALTOR.  You may have been reading about the lawsuits over the past few months, and the settlement reached with the National Association of Realtors--much information that has come out in the media is just plain inaccurate--however, the following statement comes directly from NAR concerning one of the agreements in the settlement and which I actually look forward to:

"Written agreements for MLS participants acting for buyers: While NAR has been advocating for the use of written agreements for years, in this settlement we have agreed to require MLS participants working with buyers to enter into written agreements with their buyers. This change will go into effect in mid-July 2024."

Many brokers already utilize these agreements, which have been available to the industry for years, with their clients.  The buyer-broker agreement, which is a standardized form provided through California Association of Realtors, may have varying terms, such as length of time, geographic area, commission to agent, or even for a specific number of homes or type of homes to be shown. Putting someone in their car, or meeting them at a property, just scratches the surface of what an agent does to help a buyer find the right home.  Buyer-broker agreements are legally binding contracts which  work in both directions: the buyer commitment to the agent and the broker/agent commitment to the buyer.

An agent should be first sitting down with a buyer and taking in the buyer's thoughts and questions about a home purchase, before showing property. This is how I've always done business since I started, and I believe it's the best way. When there is good communication between buyer and agent, there is usually a better understanding of the process, and less of the phenomenon known as buyer remorse. The buyer should expect a very clear and thorough review of a buyer agreement from the agent.

A home purchase is a huge commitment to a mortgage, obtaining home insurance, understanding future maintenance expenses, property taxes, and how a buyer's income will absorb these costs. A buyer is making a commitment, and that commitment deserves clear professional communication by an agent, and the agent who is offering his/her professional help also needs the commitment of the buyer in order to get to the goal of a home purchase. 

More updates will be provided on this topic, and please don't hesitate to contact me with questions!

Looking forward to the future!

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Quote For the Day By Theodore Roosevelt

Craftsman Bungalow Home in Long Beach

"Every person who invests in well selected real estate in a growing section of a prosperous community adopts the surest and safest methods of becoming independent, for real estate is the basis of wealth."  Theodore Roosevelt, Speech, September 9, 1903.

Whether you're wealthy or not-so-wealthy, consider how you can invest in real estate: as a sole owner, as an income property investor, or as a partner among several at your level of affordability.  You don't have to have the ability to buy the most expensive real estate in order to benefit from real estate ownership.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

8 Eye-Opening Things Home Inspectors Can’t Tell You

What’s included in a home inspection may not be as important as what isn’t.

A home inspection may feel like a final exam, but it’s not quite so clear cut. Your inspector’s report won’t include a clear-cut  A+ if a house is a keeper or an F if it’s a money pit.

What is included in a home inspection report is a set of neutral facts intended to help you decide on a home’s final grade.

Oh sure, a seasoned inspector will know if a home is a safe bet or full of red flags. But they’re actually bound by a set of rules that limit what they can tell you.

Here’s what they can’t say:

#1 Whether They Would Buy This House

Here’s the big one: Many buyers think an inspector will give them a thumbs up or thumbs down, but they can’t. Giving real estate advice violates the International Association of Certified Home Inspectors’ code of ethics.

Clues to look for: Count up your issues. “The average inspection turns up around 20,” says Larry Fowler, a home inspector in Knoxville, Tenn., who has done around 10,000 home inspections in his 22 years in the business. “If there are more than 30 items, you may have a bad house,” Fowler adds. “If there are fewer than 10 items on the list, you may have a bad inspector.”

The bottom line is that every house and buyer are unique and what inspection results one person is fine with, another may not be. Confer with your agent once you have the report.

#2 If It Has Termites, Rats, or Mold

Yikes! You might assume this trio of homewreckers would be part of every house inspection checklist, but your inspector isn’t licensed to look for them.

Clues to look for: Inspectors can note that those sagging floors are evidence of termites, or that shredded insulation is evidence of rats, or the black stuff on the walls is evidence of fungal growth. To turn evidence into proof, ask a specialist for a follow-up inspection.

#3 If the Pool or Septic System Are in Good, Working Order

Home inspectors aren’t certified to inspect everything that could appear in any home. So for example, if there’s a pool, some may turn on the pool pump and heater to make sure they work, but they won’t look for cracks or plumbing leaks. You’ll need to find a pool inspector. In other cases, you may need a septic systems or wells expert, an asbestos or radon specialist, etc.

Clues to look for: Any special feature is your cue to find a specialist. “We’re general practitioners,” Fowler says.

And here’s a bonus tip: Consider a home’s advanced age a “special feature,” as they’re likely candidates for lead paint, asbestos, and other old-home hazards.

#4 That They’re Making The House Look Worse Than It Is

Some inspectors make note of every tiny thing in a house, even inconsequential ones. Like chipped paint. Scratched windows. Surface mold in a shower. These folks are sometimes known as deal killers.

Clues to look for: If your inspector’s report is pages long and full of items that won’t hurt the value of the home, it’s probably not a big deal. Sit down with your agent, and go through the report to determine which (if any) issues could affect your offer.

Note: See sample inspection reports from around the country at the International Association of Certified Home Inspectors website.

#5 If That Outlet Behind the Couch Actually Works

An inspector can only check what they can see without moving anything. This means the foundation could be cracked behind that wood paneling in the basement. Or the electrical outlet behind the sofa might not work.

Clues to look for: The inspector should note if they’re unable to inspect something critical. Consult with your agent about what to do, such as asking the seller to take down the paneling or offering to pay to have it removed. Alternately, offer a lower price.

#6 Whether They’ve Inspected the Roof Closely

Some inspectors will climb up on the roof to look closely at shingles and gutters — but they’re not required to. If it’s raining or icy, or the roof is steep or more than two stories high, they can stay on the ground and report what they can see from there.

Clues to look for: They should note whether they walked the roof, but if it’s not clear, ask. If they haven’t, keep this in mind when evaluating their roof inspection report. They should still note any missing or damaged gutters or downspouts and the general condition of the roof based on what they can see from the ground.

#7 What You Should Freak Out About (or Not)

It’s an inspector’s job to find things wrong with the house. Big things, little things, all the things. It’s not their job to categorize them as NBD or OMG. A checkmark next to a crumbling foundation will look the same as a checkmark next to chipped paint.

A few things you may find on an inspector’s report that aren’t a big deal:

• Condensation in a basement or crawl space
• Early signs of wood rot on trim
• Cracks in bricks from the house settling
• Faux stone siding that’s been improperly installed
• Radon levels below 4 pCi/L

These items, however, could trip your freak-out response (if you’re not prepared to address them):

• Standing water in a basement or crawl space
• HVAC not working
• Outdated wiring, especially knob-and-tube wiring or aluminum wiring
• Wood rot
• Old plumbing pipes
• Radon levels above 4 pCi/L

#8 Who They’d Recommend to Fix It (and How Much It Will Cost)

Your inspector may seem like the perfect source of insider info on repairing issues they see all the time, but the opposite is actually true.

You don’t want your inspector to make financial decisions based on their report. Think about it: If an inspector’s buddy Steve gets a plumbing gig every time a certain issue turns up on a report, it gives that inspector some pretty big (and not cool) motivations to find that issue.

Even giving you a price range for the repair is off-limits. It’s not their area of expertise, it creates a conflict of interest (they could be endorsing Steve’s great deal, after all), and, perhaps most importantly, it’s against the ethics rules.

Clues to look for: This is good home ownership practice. Try to price out every item on your home inspector’s report, big and small. Do some research, and call three contractors or check out three retailers for the service or part needed to resolve each issue. You’ve got this, future homeowner!

 This and other helpful articles are on HouseLogic.  Find more information, and a list of member home inspectors, at https://www.creia.org/resources-for-home-owners-realtors.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

What Happened in 2023 in the California Real Estate Scene

Graphic showing 2023 market data in California

 The 2023 housing market had ups and downs, but buyer competition remained, and prices continued upward for the most part, in spite of inflation, shrinking insurance availability, and increased mortgage interest rates.

Home sales slowed, but the housing market hasn't crashed. Mortgage rates went to 7 percent, prompting many homeowners to not sell, and those who did were sometimes offering incentives to the buyers.  Housing shortages are reflected in the December to December 23% decrease in new listings, and the overall 20% decrease in closed sales.  But median and average sale prices both increased.

For 2024, the chief economist of the California Association of Realtors, Jordan Levine, predicts continued price improvement, and sales volume improvement compared to 2023. Mortgage rates are already easing, which lowers the monthly mortgage payment amount, and perhaps will fall to the 6-6.5% range. To combat the inventory shortage, expect widening support  for accessory dwelling nits and the conversion of empty office buildings into residential space. Insurance carriers may continue to withdraw, and cause an increase in prices while forcing the buyers to look at outside carriers.  The California Fair Plan is a growing option, but comes at a higher cost for only basic coverage.  Buyers should do their  best to find as many insurance carrier options as possible.  A new down payment assistance resource directory may offer help for some buyers, contact me for a program that may work for you.

You're probably aware of ChatGPT generated information, and the discussions about using Artificial  Intelligence (it's not new, a Magnum P.I. segment in the 1980s had Magnum and his consultant friend talking about and referring to artificial intelligence and what they were discovering then what computers could do!) are now frequent in the real estate profession. Some property descriptions, marketing materials and social media posts are online from AI.

The median-priced home in California is now $830,620,  in Long Beach the December 2023 average sales price was $1,060,056 and for a condo it was $557,532--but that varies: the 90803 zip code average price for condos was $741,333.

With the softening of interest rates (remember, an 800+ credit score gets you the best rate, so take care of your credit), buying a home may be more possible for buyers and sellers alike.  Please contact me with any questions, sometimes all it takes is a conversation to help get you started.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Long Beach Year-to-Date for Single Family Homes as of September 2023 (and LA County Information)

Year to Date Stats September 2024

 

 Long Beach Market, September year to date:  

• Existing home sales total 796 (down almost 30%)
• Monthly average of active listings total 94 (down over 26%)
• Active listings with reduced prices total 31.4%  
  

Sales to list price is 100% with the median price of $900,000.  There's still competition out there and at the same time sellers need to be realistic on pricing and offers for their local market.

As of 11/7/2023: there are 153 active listings of single family homes in Long Beach, with a median of 32 days on the market (yes, at this time of year timing is usually slower).

September Los Angeles County Inventory Report showing city prices and market information:

 

Contact me for your real estate needs!

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Things to Know About Open Houses in California

Did you know that California agents must observe certain protocols or rules about holding open a property?

For instance, usually the person you meet on the open house property is a licensed agent, but on occasion there may be an unlicensed assistant there who may greet the public, hand you a flyer or brochure or schedule a appointment with the real estate agent. But only a licensed agent may show the property, discuss terms and condition of a sale or the features of the property, location of schools or amenities, or engage in other conduct which could induce the open house attendee into signing a contract. Unlicensed assistants may not engage in any solicitation or negotiation with visitors to the open house.

The open house visitor should see the licensee's license number on advertising flyers and brochures with the agent's name, and on open house signs which bear the agent's name and brokerage name.  But license numbers are not required on generic style signs which only say "for rent" "open house", "for lease" which do not bear an agent name or brokerage name.

Licensees cannot discriminate on the basis of a protected class, including have children. Unless it's a Senior Housing community which is for those aged 55 years and older where anyone younger would not be allowed to own.

And, the Department of Real Estate strongly advises against a licensee leaving an open house unattended, so if you see a note when you arrive stating an invitation to come inside, but the agent leaves a note they'll be back shortly, you may want to return when the agent is there.  An unattended home might be an invitation to a problem.

If you are thinking of selling and want an experienced Realtor's advice before you put your home on the market, please call, text or email me! I'll be glad to answer your questions.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Higher Home Prices and Higher Interest Rates, But Homes Still Sell

The National Association of Realtors data shows home prices increased in 60% of the nation's largest metro areas, while 30-year mortgage interest rates hover around 7 percent in the Freddie Mac survey of rates.

New inventory on the market is hampered by homeowners with mortgages at 3 percent rates and below who do not want to sell and move into a higher interest rate market which would of course increase their costs on monthly payments.

As an example however, twenty-three (23) out of thirty (30) single family residences as listed in CRMLS which sold in Long Beach in the last 30 days--from the date of this post--closed with buyer financing, including conventional, FHA or VA loans. Five properties closed all cash, and two listings did not indicate cash or mortgage.  So those buyers are obtaining loans, and they are obtaining home insurance as required by the lender (another challenge for some buyers in this market). A total of 100 single family residences sold in Long Beach in the previous 30 days, so the pool of 30 above would indicate that approximately 76% of homes are successfully closing with financing.  Insurance tips here

 If you are interested in an evaluation of your property, please call,  text or email me. I am here to help.

For buyers who need assistance in the current market, I'm also here to help, using my 28-plus years of Realtor experience.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Insurance - California Homeowner Policies - Tips on Finding and Keeping

Insurance is the Key!

Several companies have stated they are not issuing new policies to new customers, and some existing customers are receiving cancellations.  Below are some advisory tips whether you are in escrow and need insurance for a new purchase, or you're in an existing home and have received a notice.

 If an insurance company is not going to renew your policy, you must receive notice 45 days before the expiration date. If you didn't receive the property notice, the California Dept. of Insurance may be contacted at 1-800-927-HELP or online at www.insurance.ca.gov. Look for renewal provisions in your policy to see what you might qualify for under certain conditions.

Contact your insurance company immediately to see if there are fire-hardening steps you may  take to change the company's decision about non-renewal.

If you don't have an insurance agent, check online with the Department of Insurance in the Consumers Section to help you find an agent, and check if the agent works exclusively with one company or has access to multiple carriers. 

 Check the Residential Insurance Contact List on the DOI website for a list of admitted insurance companies.

Ask questions of the insurance agent: Does it cover current cost of rebuilding per current construction codes? Does it cover replacement cost value? Will the policy cover cost of rebuilding to pre-loss condition? Cover demolition and debris removal? Coverage on temporary rent and expenses while home is being rebuilt? What loss causes are not covered? 

Non-admitted carriers, i.e., surplus lines, do not have CIGA protection, but may be a solution for you. Investigate financial strength of a non-admitted carrier at A.M. Best.

As a last option, try the California FAIR Plan, which only covers fire and smoke. However, if you currently can find no other carrier, this Plan will provide you with coverage required by most mortgage company to keep your loan, or get a new one. It was designed to be a temporary option only, but this may be gap coverage until you are able to obtain a policy with more coverage. 1-800-339-4099. A Differences in Condition policy can be obtained separately to cover theft and liability.

IF YOU ARE IN ESCROW OR ABOUT TO BE:  Do not delay the search for home insurance. Begin immediately. Some insurance companies are using a monthly pool amount to issue policies, so if you qualify and are told you will get insurance, your transaction must close on the date you give to the insurance company, or otherwise if it's delayed in closing, you will lost your place in line, get rolled over to the next month where you start over again--the seller may not go along with this unless it was agreed upon in writing, and given the competitive nature of the housing market, there may be another buyer in line with an offer.  So do nothing to delay your closing date if this is how you are advised you're getting insurance coverage.  

Thanks for California Association of Realtors for the above information.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Long Beach Houses: What's on the Market And for How Long

Beautiful corner lot home

The market seems to be back to multiple offers and buyers feeling a lot of stress, unable to get into contract with a seller. It's true, there's low inventory, and higher interest rates.  

But not all properties are selling within a few days of coming onto the market. However, many of the home sitting on market are in the higher price range, over $1,000,000.  

The record holder on the active market in Long Beach right now is a single family in the 90803 zip code listed at $3,149,000, on market for 350 days as of July 11th--it doesn't appear to have been in escrow according to MLS data.  

The next highest time on market is a house listed at $829,000 in the 90804 zip code, on market for 336 days as of July 11th.  It was reduced from $929,000, and doesn't reflect that it's ever been in escrow.   

The next property is back in the 90803 zip close to the water listed at $3,749,000, on market for 243 days, also never in escrow per the MLS data. 

Another home in North Long Beach, completely redone on the interior is listed at $795,000, on market for 148 days.  

Then Bixby Highlands has a listing $1,099,000, on market for 127 days, never in escrow.

And so it goes through a list of 124 active properties, with the lowest house starting at $469,000, the highest list price being $6,999,000.

In Long Beach, in this group of 124 all active SFRs in the city, the average list price is $1,522,138 with an average of 41 days on the market.  There are 64 listings under $1,000,000, roughly half of the total group.

Currently, there are 109 SFRs in escrow , with average of $1,162,566 and an average 35 days on market.

So in spite of the overall inventory shortage, there's more active listings than are getting into escrow.

If you would like help buying or selling, please contact me for local area information of your property, and local listings on the market. I've had 28 years of experience helping both buyers and sellers.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Housing Affordability for California Buyers, Up or Down?

Housing affordability brightened somewhat in the 1st Quarter of 2023 since interest rates have dipped, see several areas below for comparisons.  The first three columns are the percentage of homebuyers who could buy the median priced home*:

Regional/State Chart for home prices in California

*Above chart from CALIFORNIA ASSOCIATION OF REALTORS® Traditional Housing Affordability Index First quarter 2023

 These figures exist for all counties, but four major areas are selected above, plus statewide figures for single family home and condos.

As has been widely stated, inventory is down, therefore total sales volume is down, 2023 units are projected to reach 279,000 units, down from the 342,000 units sold in 2022. Will home prices decrease as predicted (in blue print)? The public will have to stay tuned on both prices and interest rates:

"C.A.R. also announced it has revised its 2023 Housing Market Forecast and projects existing single-family home sales to reach 279,900 units in 2023, a decline of 18.2 percent from the 342,000 units sold in 2022. While home prices in general are expected to improve in the second half of the year, the California median home price is projected to decrease 5.6 percent to $776,600 in 2023, down from the annual median price of $822,300 recorded in 2022. The updated projection on the statewide median price, however, is an increase from the estimate of $758,600 forecast last October. C.A.R. also projects the 30-year fixed mortgage interest rate to average 6.3 percent for the year.

Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Buyers Want to Know: About Area Schools

Many times a buyer may be searching in an area without much familiarity with it.  And they're hoping their Realtor can provide them with an "orientation" to the area, and describe the nature or quality of local shopping, proximity to freeways, or schools.  Schools are usually important to parents because they want to ensure their children (or child) is receiving a good education in a good learning environment.  

But what Realtors specialize in is listing and selling property, and while they may have certain personal knowledge and experience with area resources, they cannot personally or professionally vouch for area standards, nor attempt to define what is "good", "not good" or "excellent" for their client. But what a Realtor can do is point their client to resources that help a buyer complete the buyer's investigation of their potentially new neighborhood, so that buyers may determine for themselves what is satisfactory or not. 

The following links are found on one or more State of California websites, and are there for anyone to use!

California Distinguished Schools

California School Dashboard

School Accountability Report Card 

Charter Schools in California

There are other sites which rate schools, but before you make up your mind about a school based on a certain rating, take the time to research it more indepth and consider what is really important to you. Compare other schools to the one you may be considering, and also research online about the current educational issues for students statewide. 

Hopefully, you will find the right neighborhood for you faster, if you start your search for factors important to you early!

Please contact me by text, email or phone call for help with property values and what it takes to buy your next home!

Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996