What If You're a California Listing Agent and You're Thinking About Representing the Buyer?

In California residential real estate, a dual agent—one who represents both the buyer and the seller—must navigate a minefield of fiduciary obligations and potential liabilities. Also, two agents working under same broker are also dual agents in a transaction. Below is a summary of the key liabilities and legal responsibilities:

Key Fiduciary Duties and Liabilities

1. Fiduciary Duty to Both Parties
A dual agent owes each party the duties of loyalty, confidentiality, honesty, and full disclosure. This means the agent must:

• Disclose Material Facts: Inform both the buyer and seller of any information that could affect their decisions.
• Avoid Conflicts of Interest: Balance competing interests without favoring one party over the other.

  

  Agent standing across from seller, buyer behind.
  

   
  

• Obtain Informed Consent: Secure written consent from both parties acknowledging the dual agency relationship.

2. Strict Disclosure Requirements
Under California Civil Code §2079.13, dual agents are required to provide a clear, written disclosure of their dual role. Failure to disclose—or inadequate disclosure—can lead to:

• Legal Claims: Breach of fiduciary duty, misrepresentation, or fraud.
• Disciplinary Action: Potential sanctions by the California Department of Real Estate.
  

3. Liability for Associate Actions
If the dual agent’s salespersons or broker associates act negligently or breach their duties, the supervising agent (and by extension, the brokerage) may be held liable under the principle that the duty owed by an associate is equivalent to that owed by the principal broker.

4. Negotiation and Confidentiality Pitfalls
The dual agent must be careful during negotiations:

• No Secret Profits: The agent must not use confidential information from one party to benefit the other.
• Neutrality in Negotiations: The agent should present offers and counteroffers without bias, ensuring each party gets a fair deal.
• A dual agent may not reveal to either party facts relating to the financial position, motivations, bargaining position or other personal information that may impact price, in addition to the restrictions already mentioned.
  

Dual agency in California residential transactions is legally permissible only when both parties are fully informed and provide written consent. A failure to adhere to strict disclosure and neutrality requirements can expose the dual agent to significant legal liabilities—including breach of fiduciary duty, misrepresentation, and potential disciplinary actions. By understanding and rigorously following these guidelines, a dual agent can mitigate risks and help ensure a fair transaction for both buyer and seller.

 

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

What If You're a California Buyer And You're Thinking about Using the Listing Agent?

In California residential real estate transactions, using a dual agent—where one agent represents both the buyer and the seller—comes with several risks for both parties. Also, when agents from the same brokerage are working with different parties to a single transaction, each agent is considered a dual agent, even if each individual agent communicates and works exclusively with a single party. A dual agent owes equal fiduciary duties to both parties to a transaction. Here’s what you need to know:

Agent With Buyer and Seller

Risks for Buyers and Sellers When Using a Dual Agent in California

1. Conflict of Interest

A dual agent has a fiduciary duty to both the buyer and seller, making it difficult to advocate fully for one party’s best interests. This can result in:

• The seller not getting the highest possible price.
• The buyer not securing the best deal.

2. Limited Advocacy and Negotiation

Since the agent must remain neutral, they cannot aggressively negotiate on behalf of either party. This may lead to:

• Buyers overpaying for a property.
• Sellers accepting lower offers than they might have with an independent agent.

3. Reduced Confidentiality

A dual agent has knowledge of both parties’ financial situations, motivations, and negotiation strategies. While legally required to maintain confidentiality, the risk remains that sensitive information may be inadvertently used to the disadvantage of either party.

4. Potential Legal Issues

California law allows dual agency, but it requires full disclosure and written consent from both the buyer and seller. Failure to do so can lead to legal disputes, lawsuits, or even the cancellation of the transaction.

5. Ethical Concerns and Perceived Bias

Some buyers and sellers feel that a dual agent cannot be truly impartial, potentially leading to distrust in the process. This can complicate the transaction and create unnecessary tension.

How to Protect Yourself in a Dual Agency Transaction

• Understand your rights: California law requires disclosure of dual agency relationships—make sure you’re fully informed.
• Request transparency: Ask your agent how they plan to handle negotiations fairly.
• Consider hiring a real estate attorney: Legal guidance can help protect your interests.
• Explore alternative representation: If you’re uncomfortable with dual agency, you can choose separate agents for better advocacy. When one agent  represents only the buyer, the buyer is then not using the listing agent who already represented the seller.

In California, dual agency—where a real estate agent represents both the buyer and the seller in a transaction—is legal but subject to stringent regulations to protect all parties involved. Here's an overview of the legal framework governing dual agency in the state:​

Legal Framework for Dual Agency in California

1. Definition and Legality

Under California law, dual agency occurs when a real estate agent or brokerage represents both the buyer and the seller in the same transaction. This arrangement is permissible provided that specific legal requirements are met. 

2. Fiduciary Duties

Real estate agents owe fiduciary duties to their clients, including loyalty, confidentiality, and full disclosure. In a dual agency scenario, fulfilling these duties becomes complex, as the agent must balance the interests of both parties without favoring one over the other. 

3. Disclosure Requirements

California Civil Code mandates that agents provide a written disclosure to both the buyer and the seller when entering into a dual agency relationship. This disclosure must outline the potential conflicts of interest and the implications of such an arrangement. Both parties must give their informed written consent for the dual agency to proceed. 

4. Limitations on Information Sharing

A dual agent is prohibited from sharing certain confidential information between the parties without express consent. For example, the agent cannot disclose to the buyer that the seller is willing to accept a lower price, nor can they reveal to the seller that the buyer is willing to pay more. This ensures that both parties' bargaining positions are protected. 

5. Legal Consequences of Non-Compliance

Failure to properly disclose a dual agency relationship can lead to significant legal consequences, including the forfeiture of the agent's commission, rescission of the transaction, and potential disciplinary action by the California Department of Real Estate.

6. Recent Trends and Considerations

Recent trends indicate a rise in dual agency arrangements in California, particularly in markets like Los Angeles. While this can offer benefits such as streamlined communication, it also raises concerns about impartiality and the potential for conflicts of interest. Both buyers and sellers are advised to carefully consider these factors and ensure they are fully informed before consenting to a dual agency arrangement. ​

Understanding these legal aspects is crucial for anyone involved in California real estate transactions.

 

 

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

Top 10 Reasons Homeowners Should Sell Their Residential Property in the 2025 Long Beach, California Market

 

Craftsman Bungalow style homes

Selling your home is a significant decision, and the current Long Beach market in 2025 presents several compelling reasons why homeowners may want to take the leap. Whether you're considering relocating, downsizing, or capitalizing on current market conditions, here are the top 10 reasons to sell your residential property this year.

1. Rising Home Equity

Homeowners in Long Beach have seen a steady increase in home values over recent years. If you've built significant home equity, 2025 might be the right time to capitalize on your investment. Selling while property values are still high allows you to maximize your returns before any market shifts occur.

2. High Buyer Demand in Long Beach

The Long Beach housing market remains competitive, with a high demand for properties in desirable neighborhoods. With many buyers looking to settle in this coastal city, selling your home could be an opportunity to get multiple offers and potentially sell at a premium price.

3. Interest Rate Considerations

While interest rates may be rising in 2025, or staying the same, they’re still historically low compared to past decades. This makes homebuying attractive for potential buyers in Long Beach, driving demand for properties. If you sell now, you can take advantage of favorable conditions for both you and the buyer.

4. Relocation for Job or Lifestyle Change

Whether for work, family, or lifestyle reasons, many homeowners in Long Beach decide to relocate. Whether you’re moving to another city, state, or seeking a new neighborhood in Long Beach, selling your property is often necessary to facilitate your next chapter.

5. Downsizing to a Smaller Home

If your children have moved out, or you simply want a more manageable living space, 2025 is a great time to downsize. The Long Beach area offers many smaller homes and condos that could provide you with lower maintenance costs while still offering access to the community you love.

6. Changing Family Needs

Your growing family or lifestyle changes might require a new type of home. Whether you're looking for more space or specific features such as a larger yard, more bedrooms, or proximity to schools, selling your current property to upgrade is an excellent reason to enter the market in 2025.

7. Capitalizing on Rising Rents

With rising rents in Long Beach, many homeowners are selling and moving into rental properties that better suit their financial or lifestyle needs. By selling your home now, you may find a more affordable option in terms of monthly payments or expenses. Please contact me for a list of rental properties.

8. Tax Benefits of Selling

In 2025, there may be certain tax incentives for sellers in Long Beach, including exemptions on capital gains tax under specific circumstances. Don't forget about Proposition 19 benefits for transfer of property tax base. Consulting a tax advisor can provide insight into how selling your home can benefit your long-term financial goals.

9. Avoiding Future Maintenance Costs

Older homes often require expensive repairs and updates. If you’ve been putting off necessary repairs, selling your home before significant maintenance costs pile up might be a wise decision. In a strong market like Long Beach’s, you can probably sell quickly and avoid the hassle and costs of further home improvements.

10. Taking Advantage of Competitive Market Conditions

2025 is expected to be a competitive year for sellers in Long Beach. With multiple buyers looking for homes, particularly in desirable neighborhoods like Belmont Shore or Naples, you may be able to sell at a higher price than expected. In the lower priced areas, under $900,000, buyers are actively looking.

The increased competition from buyers can work in your favor, especially if your home is well-maintained and staged.

To look for your next property, or to see what it selling in your current area, go to my site which explores properties on one of the largest comprehensive MLS's in the country at Property Search

 For a market value analysis for your property and what potential net proceeds might be from a sale, please contact me, I'm available in person or for online help.  Just call, email me or text. And check out the Market Reports on my website below, reports have detailed information concerning various neighborhoods and property types. Check back because it's periodically updated with new reports.

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.

Home Sellers: Here's What the NAR Settlement Means for You

REALTOR Logo

The National Association of REALTORS has published the following on its website concerning what the NAR settlement means for all home sellers.  It is also 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 before viewing properties with them, physically or online.  Note that August 17 is the practice change date for  all REALTORS nationally:
 

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

Are You a California Rental Property Owner? The Upcoming Proposition for the Statewide November Ballot

Update:  7-18-2024 - taken off 2024 ballot, will be addressed lin 2025.

Update 7-15-2024, see below.

In 1995, in response to a growing number of rent control issues, the Costa-Hawkins Rental Housing Act  was enacted by the California state legislature. Today, there is a third push to repeal it in November. Known as the Justice for Renters Act, it states: "“The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control.” As a rental property owner, you probably know there is an increasing overlay of multiple county and municipal laws governing rents and rights of tenants, and if as a property owner you are in such a jurisdiction, then you are bound by those laws. Long Beach is one such city, so is City of Los Angeles, in total about 25 local governments which have enacted rent controls.  If not in one of those jurisdictions, your property is under statewide rent control. This is important for knowing your current ability to raise rents.

House with For Rent Sign

The Costa-Hawkins Act made exempt single family homes, condos, townhomes and newly constructed  apartment buildings from the rent control ordinances, "and allows landlords to reset the rental rate on rent-controlled rental units where they become vacant or where the last rent-controlled tenant no longer permanently resides at the unit." The ability to reset the rents after, for instance, a long-term tenant who has been paying less than market value rents, is a property owner right under the Costa-Hawkins Act.  The above proposed Justice for Renters Act would eliminate the owner's ability to charge the market rate when a tenant vacates, or "vacancy decontrol".

But if this proposition should pass, property owners would no longer have the protections of the Costa-Hawkins Act but would instantly activate whatever local jurisdiction controls are already in place, many of which are more restrictive.  Should an owner not be able to bring rents to market value, but rather be subject to some much lower rent increase requirement, their entire property value would be devalued, along with less funds to maintain a property, rising property taxes, increasing property insurance, and increasing utilities, and which will also be charged fees at current market rates by contractors to do their work. While a simplified picture for tenants is that they may pay less money if they have rent control, they may also be living in a less enhanced, less attractive, non-turnkey property over time, with repair issues.  Such strict rent control could affect the smaller properties in the rental market as those owners exit due to financial constraints, thus causing lower availability of housing for renters and lower quality.   UPDATE 7-15-2024:  Now known as Proposition 33 on 2024 ballot:

"Proposition 33, rent control: A vote in favor of this measure would expand rent control in California. If the proposition passes, it would get rid of a nearly three decade-old law, known as the Costa-Hawkins Rental Housing Act, that bans rent control on single-family homes finished after February 1, 1995.

"Cities and counties would have more power to limit rent increases for incoming and existing tenants, making it harder for landlords to hike up prices. The measure would also insert new language into California law that prohibits the state from limiting how cities and counties expand or maintain rent control. It’s backed by the Aids Healthcare Foundation and is the third time since 2018 that voters will decide on the issue: Similar ballot initiatives, in 2018 and 2020, failed by 19 and 20 points, respectively." https://www.sacbee.com/news/politics-government/capitol-alert/article289594036.html

If passed, this proposed Act could only be repealed by another ballot initiative, it does not address the statewide housing shortage, or address homelessness.  It's important to not lose the Costa-Hawkins Act, it still maintains property rights for owners, which are being eroded with each passing year.

Go to Californians for Responsible Housing for more information on the effect of repealing the Costa-Hawkins Act. 

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

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

Closed Sales Volume in California, Southern California and Long Beach

May, June and July of 2023 down 18% in Southern California sales volume for single family homes, better than last December's volume which was down 46% (see the orange bar for Southern California).

Home sales volume bar graph statewide

Southern California home sales volume has been "below the line" for over two years, along with all areas of the state.

High homes prices and unfavorable rates continue to have influence for buyers, of which 41% believe prices will continue to climb. Those who believe it's a good time to sell continues at the rate of 64%, so inventory not loosening up much on the sell side. 

Although there's been a crunch on obtaining purchase home insurance in certain areas, the local market is still seeing buyers successfully closing their escrows.

In the last 30 days, 97 single family homes (average price $1,136,577) and 69 condominiums (average price $592,000) sold in Long Beach.

If you would like to find out more about selling, doing a 1031 exchange, or just find out more about the market in your area, please contact me via phone, email or text.  And please feel free to do a property search on my website.

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

What Could the Potential Loss of Insurance Mean for a California Home Transaction?

The news about State Farm not writing new policies is part of a larger story.  

It's not news that premiums have increased and that areas of wild fires have seen a pullback from insurance companies. The refusal by insurance companies is not just in climate zones, many  types of properties are now affected, including areas that are low risk of fire and flood.

If you're a buyer or seller and currently in a transaction, be aware that the buyer contingency in a standard California Association of Realtors contract allows for investigation of the property, including insurance issues that may prevent coverage.  This is very important that the buyer understand their contracts, and follow up completely on insurance coverage.  Under standard timelines, the buyer contingencies are removed assuming the buyer is satisfied with various areas of investigation. However, since lenders offering a mortgage want to see proof of insurance coverage prior to close of escrow, buyers are strongly advised to obtain an insurance binder or evidence of commitment to insurance coverage as soon as possible in the escrow period (the 1st day it opens), and not remove their buyer contingency until they know they will have insurance policy on that property. Otherwise, they may risk losing their buyer deposit under the terms of their contact with the seller.

Homeowner associations are seeing increases in their master policy premiums, changes in coverage limits, or a refusal to renew policies.  If an HOA master policy isn't renewed, then the mortgages of the condominiums owners are also at risk, since lenders want proof of that policy coverage for the common areas. Or, in the case of some associations, the increase in premium may be so huge it causes a special assessment: one HOA reported in the San Diego Union Tribune ended up with an $8,000 per unit cost for master policy insurance coverage.

If you're a homeowner with current coverage, do not let it lapse, because it may not be renewed.  The California Fair Plan may be an option for some residents and businesses; it protects the home for fire risk and will satisfy a mortgage company's insurance requirement, but it does not cover theft, flood, earthquake, hail, vandalism or personal liability (only special earthquake policy provides coverage for that). 

Insurance brokers are reporting challenging coverage searches for their clients, and are not always successful.  The one area of insurance so far not reporting a problem is renters insurance, which does not cover fire risk.  

If you are not currently represented by a Realtor in a transaction and are interested in finding out what the buyer contingencies are in a purchase transaction, please contact me via phone, text or email.

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

What To Do With All Your Stuff, Whether You're Selling or Not

The Art and Necessity of Decluttering

 

Barcelona Chair - 1929

Did you ever hear of Mies Van Der Rohe?  Perhaps not, unless you have an interest in architecture.  (He also designed the “Barcelona Chair” around 1929 .) Mies Van Der Rohe died in 1969, a German architect who did many works in the U.S., and often aspired to the ideal of “less is more”, a saying about the ideal of creating something so beautiful it cannot be further reduced.

 

Opinions may differ, but there are many people who would say that the type of stuff in the next photo could be reduced – quite a bit.  “Decluttering” is the word most familiar to people.  

Whether you’re moving, or just wanting to move your stuff, decluttering can bring improvements to your daily life, and most probably to your outlook in general.

All you have to do is watch the TV series about hoarders to view the extreme situations.  Most people are not this extreme, but neither were the people in the TV show at one time.  But whether you’re at the low end or the high middle of the distribution curve on junk,  the process can take a lot of work, because that stuff may have meaning to you, or you think it does.

Garage tools piled on top of each other

If you do put your home on the market, having too much stuff in your house or condo can detract from the buyer’s ability to see and focus on the property, and in the end could hurt you financially.

There are people, such as Marie Kondo, who specialize in decluttering, but really most people can tackle this themselves if they keep in mind:

1. There’s a financial advantage in keeping only what you use.

      2.   That breaking down the clean out process into smaller tasks can lighten the load.

3.            3. That selling, donating or sharing are three primary ways to lighten your inventory—sell to consignment shops, Facebook groups, estate sale specialists, or donate to a halfway house, charity groups, neighborhood yard sales.  1-800-GOTJUNK is a resource for taking away stuff that cannot be donated, or, pick a self-storage site for later attention.

Decluttering may also mean a transformational growth process, which can lead to establishing more effective daily routines, simplifying meals and grocery shopping, and quieting the noise in your life.  More resources on simplification are found here.

If cleaning out is a task you would like to leave to a professional, the national hourly rate for a member of the National Association of Professional Organizers , for example, would be between $50 to $100 an hour. It might be worth a consultation to help you get started and actually speed up the process.

The key is, don’t try to downsize in a month. You may give up something you wish you’d kept (but thinking you need everything doesn’t work either).  It’s essential to start developing the habit of reviewing your possessions and think of when the last time was you wore an item of clothing, or used a tool or appliance, or are you keeping items you inherited that may only be taking up space.

Your home should be seen as beautiful in the eye of the beholder. Get started on your plan, your goal is reachable!

Mies Van Der Rohe

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