Clear The Air with a California REALTOR

    

This video is the most recent of numerous advertisements put out by the California Association of REALTORS concerning the service that REALTORs provide.  Agents who belong to their respective associations provide many services to clients, many of which are not visible on a daily basis.  To find a client a home, or to sell a client's home, holds many responsibilities on the part of the agent -- it is, after all, one of the biggest investments an individual or family may make in their lifetime.  It's important to establish the right foundation for that purchase or sale.  A buyer may be investing their accumulated savings to put down roots, and a seller may be leaving a property of many years ownership which could be both an emotional and a financial transition.

If you are interested in taking the next step in your goals, please contact me via email, phone or text.

What is the Value of a REALTOR?

 A REALTOR is a member of the National Association of REALTORS, and in California, a member of the California Association of REALTORS and a local Board of REALTORS. Being a REALTOR member, among other things, means there is a Code of Ethics required of all members as set forth by the national Association and enforced at the state and local levels. When a seller or buyer hires a REALTOR agent, he/she hires an individual (who may also be part of a team) to help them through a very large financial and personal event of selling or buying a new home.  Sometimes, even though the client may view a presentation, the full duties and obligations of the REALTOR may not be fully expressed at the time. But in fact, there are upwards of 160 things a REALTOR does in most transactions, all as part of their agreed upon commission:

1. Pre-listing activities which include valuation, property analysis, research other relevant properties in tax record and MLS, answering preliminary questions from seller, setting up appointment, prepare listing presentation, and more.

2.Listing Appointment Presentation which includes market condition and projections, review agent's profile and credentials, power of MLS and web marketing, explain agency, review and explain all listing contract documents, net sheet, selling conditions in a tenant occupied property, staging, included property, and other possible factors.

3. When property is under Listing Agreement, there are multiple documents for review by and seller signature, required by state law and/or broker practice, repairs (which can also come up much earlier in the process), obtaining of keys, showings, to name just a few.

 To continue on, each of the following categories also involves many detailed steps: 4. Entering Property in Multiple Listing Service Database, 5. Marketing The Listing, 6. The Offer and Contract, 7. Tracking the Loan Process, 8. Home Inspection, 9. The Appraisal, 10. Closing Preparations and Duties, and 11. Follow Up After Closing.

Additionally, there are sometimes unexpected challenges that may occur which a REALTOR may have to spend additional time on - probate properties which require specific handling and working with the estate's attorney, or challenges to the buyer's loan due to sudden interest rate increases, additional negotiations to solve these problems, or property conditions discovered during the buyer's inspection. No two transactions are ever the same.

 So if you as a seller or buyer are wondering about your  transaction, ask your agent, it's important for the client to know and understand as much as possible!

And for a COMPLETE list of what happens, please feel free to contact me, because I have always found that the more prepared a client is in the beginning, the greater the communication and hopefully, satisfaction, will be.

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

How Do I Find the Right Property?

Today buyers have the ability to constantly look at homes on the internet before ever finding an agent to work with, or really knowing what they want.  In fact, according to surveys of buyers, the vast majority start their home searches online.  There's so much to choose from, so what should buyers do if they are really serious shoppers and know they want to buy? Put in writing what you are looking for.  Write down everything that you think is significant for making a house (or condo) your home.  Maybe your first decision will be:  am I looking for a single family home, or a condominium?  How many bedrooms and baths? Sometimes people say, "I'll know it when I see it", but that approach in my experience has never led a buyer into a home. Buyers should be as clear as possible about their priorities, but also expect a little flexibility about them.

2.  Most people have a location in mind--schools, shopping, ambience, are all things to consider. More than one area should be considered in order to give more options.

3. If you go to see homes at open houses or private showings with your Realtor, have an idea of what to ask questions about in  terms of condition, upgrades, age, etc.  Some things will not be visually obvious or known to the listing agent or your Realtor, they will more likely be a question for the physical inspector if you are in escrow on the property.

4. It's wise to not expect that a property have exactly all the features you would desire--just keep in mind that you can "make it your own" in the future.

5.  Working with an experienced Realtor will help you gain the right knowledge in your home search--online searches will be a good preliminary tool, but an experienced professional will guide you to the local market and buying preparation.

While the experienced past buyer may think some of these things are obvious, the market changes and so do certain aspects of purchasing.  An experienced professional has current knowledge of transaction requirements, as well as the current housing market!

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

How Much Property Information Does An Agent Have?

It's not unusual for members of the public, including a Realtor's client, to think that the listing agent probably knows all there is to know about a property. There are indeed certain obligations an agent has, especially with the sale or lease of residential property such as houses, condominiums, or any property that legally is considered to fall within a 1-4 unit configuration. 

Realtors are required to do a visual inspection of the property, which means walking around and noting conditions that are visually accessible, and this requirement also includes disclosure of defects known to the broker but unobservable to the buyer.  The California Civil Code also says  that the required inspection "does not include or involve an inspection of areas that are reasonably and normally inaccessible . . .".  An agent therefore is not required to go under the house, or into the attic space, or know the condition of walls within a locked closet if there seller has not given access. This also includes personally researching the property, although the agent should be able to point the client to outside resources for a buyer's due diligence during escrow, for example. An agent's duty of inspection also does not include the common area or other units of a homeowner association when the buyer is being provided all relevant HOA information required by the contract with the seller. So the Realtor may have no knowledge about the pool or spa and is not required to go inspect it, but if the agent has done previous transactions in the HOA, then perhaps that agent has some knowledge learned from prior transactions, and should disclose that information.

Both the buyer agent and listing agent are required to do a visual inspection and give a copy of their report, referred to as an AVID (Agent Visual Inspection Disclosure) to both the buyer and seller.  Neither agent is required to interpret the reason or source of a dark stain on the wall, for instance, but only to make a note of its existence in order to advise all parties.  It is up to the buyer to inquire further of the seller or hire a professional to get further opinion on such an issue.  Nothing in the law "relieves a buyer of . . . the duty to exercise reasonable care to protect himself or herself, including those facts which are known to or are within the diligent attention and observation of the buyer...".  So the buyer has the obligation to inspect the property, and all the conditions as spelled out in the contract, to his/her own satisfaction.

If an agent does learn "material facts" about a property, whether or not by visual inspection, ie., or if listing agent makes a disclosure to the buyer's agent, or other information was disclosed in the multiple listing service about lack of permits, then the agent is certainly required to disclose that information to the client.   So sellers, when the listing agent starts walking around your property to take a look, this is because they need to do this to help you get your property sold.

Back to the beginning paragraph -- I have heard some members of the public say that they chose to use the listing agent to represent them as a buyer because the listing agent must know more about the property.  But nothing could be further from the truth, because the listing agent probably hasn't crawled under the house either, and whatever significant information the listing agent does have, is required to be shared with the buyer.  

REALTORS® vs Real Estate Data and Your Home

Real estate data on the internet exists in multiple forms and multiple places.  I think the paradox is  that with all the available sources of data, many people are actually less knowledgeable about real estate "facts" due to the growing number of multiple choices to view real estate listings on the internet.

Issues:

• Non-REALTOR® internet sources are not obligated by a code of ethics, and are not required to be licensed real estate professionals. Commercial sites obtain permission (in most cases) from MLS (multiple listing service used by REALTORS®) sources which contain the original listing information, and then publish it on their sites. Active listings syndicated from MLSs are not "public information" similar to what could be found in a search of property tax records for sold properties, but are the result of listing contracts signed between sellers and their licensed brokers which are then published on other commercial sites. Not all sellers want their addresses published this way, and some refuse to do so.  The National Association of Realtor code of ethics not only requires certain higher professional standards of REALTOR® members, they also may have a legal impact as well. For instance, in California an agent, governed by state law and by a code of ethics, may represent both buyer and seller in single transaction with the parties' agreement, but dual agency is a violation of the law in Colorado and Florida.
• Skews data--i.e., days on market is undetermined when "pre-listed" as a "coming soon" listing on the internet that is not yet in the MLS . The number of days on market in the MLS is significant for seeing a trend between demand and supply--the more days on market may indicate more properties for buyers to choose from, or there may be a seasonal effect such as cold weather where showings are slow, or there may be more buyers have financial qualification problems so that properties are falling out of escrow and properties are coming back on the market. This information is just one fact not available when properties are sold off the MLS, and is not available for analysis by the many legitimate providers of real estate analysis, such as real estate appraisers, who utilize MLS information.  This is just one of factors in off-MLS listings.
• Are off-MLS listings getting, you the seller, the best price and the most money for your property?  Off-MLS listings are may also be known as "pocket listings" or may be listed on specific non-MLS sites for individual sale.  Generally, a seller can be more assured of receiving a fair market price when his/her property is exposed to a broad market of potential buyers.  Since the MLSs exist nationwide as cooperative organizations composed of over one million REALTORS® each with their own database of clients, please see this article about determining what is in a client's best interest when choosing a private venue in which to sell property:  http://www.realtor.org/news-releases/2014/06/coming-soon-properties-can-create-consumer-confusion.

The internet, and competing housing data sites, is here to stay.  Buyers have become accustomed to searching online before even finding a REALTOR® to work with, and there may be certain advantages to that if the buyer is prepared with some prior market knowledge by the time a REALTOR is selected. 

For sellers who want to get market value, there are sites offering an "instantaneous" home evaluation price, based on property tax sales data and certain other measurements built into various proprietary software.  The software does not do what a human does, however, which is go inside the property for sale and develop human judgment about it.  Such software can be wildly inaccurate on price -- Zillow by its own admission can be as much as 30% away from actual sale price.  Companies such as CoreLogic may be a little more accurate, but no one should pinpoint the value of their property based on a software system alone. The illustration at right is from the Realtors Property Resource program and is an actual estimated 2014 value for a Long Beach property, showing an extremely large range with two stars for its level of confidence.  In an area of fewer matching comparables based on the data available to the software, it's tougher to come up with a tighter price estimate.  Don't you think the buyer would choose the lower price, and the seller wants the higher price?  A further illustration of comparisons of sold price vs. Zillow's Zestimate for actual Long Beach properties sold in 2014--due to CRMLS policies only the sold addresses can be sold--as provided by CRMLS.

Online source for housing values:

Metropolitan Sales Areas - Housing Data and Map--National Association of REALTORS®.

Long Beach Homeownership Fair, June 28th!

Find a Homeownership Fair near you. 

Pacific West Association of REALTORs and California Association of REALTORs are hosting one this weekend at the Museum of Latin American Art on Saturday, June 28, 9:00 am to 4 pm, 628 Alamitos Ave., Long Beach.  This event is for both buyers and sellers:

A message from California Association of REALTORs:  "The Homeownership Fair promises to be a great resource for anyone interested in purchasing or selling a home whether you’re looking to re-enter the market or this is your first time purchasing or selling a home – we have the resources for you! Exhibitors will be on hand to provide you information and answer any questions you might have.  We’ll also have workshops sessions throughout the day on the wealth development, what is a REALTOR®?, How to get your offer  accepted? Down Payment Assistance programs, plus free giveaways throughout the day and much, much, more."

There are numerous 30-minute presentations throughout the day on topics including: the current state of the real estate market, buyer assistance loans and grants in California, successfully purchasing HUD homes in California,  building positive credit and credit repair.

Other fairs are being scheduled for  San Gabriel, East Bay, Fresno, and Sacramento

Don't miss this opportunity!

A Few Things I Have Learned From My Clients and Selling Homes

Learning does not necessarily come in the form you think it will--sometimes you learn from mistakes, or you learn from what others tell you and what they know, or you learn from having been around that bend in the road before.  We are in the business of having to explain to our clients what they must do before, during and after transaction, and hence, we are constantly in the business of explaining and talking.  But the learning process goes in both directions.

I was so surprised when I was helping a buyer in  a purchase transaction for a WWI era Craftsman-style home to find out that those foundation blocks that look like solid concrete are in fact . . . hollow.  It turned out the particular house in question had a very poor deteriorated foundation on 3 sides.  The remaining side with hollow ornamental concrete block was providing the most support, which was not full support either. It turned out my buyer, who had prior experience with this type of foundation and didn't like them, knew and expected the concrete block to be hollow, a fact I ended up learning from this one client and which was emphasized by his physical inspector as well. Yes,  they finally bought the house anyway because in the end, he wanted an older house style.

I've learned this more than once:  Sometimes what people think they must have and they can't live without can be laid to rest if they find something that's desirable enough to make them forget their first "must have".  When working with a couple who had the expectation of buying at the standard of the brand new housing their parents could buy in the 1950s, I was beginning to wonder if I could sell them a home in a city of 50-year-old homes. After all, most houses have cracks in the driveway if it isn't brand new concrete.  I pulled up to preview a property and thought twice about going in--it had cracks in the driveway, among other things.  But I thought, what the heck, I'm here so I may as well look.  After seeing the vaulted and beamed ceiling family room, I knew I had to get them in there.  It turned out that was the feature that sold them on it, and even though the cracks in the driveway were noticed, they paled in comparison to the family room.

Sometimes the talkative partner who says they have the final word just turns out to not be the ultimate decision-maker.  If you have to talk about it too much, you're probably not it.  Like these birds milling around in the parking lot and not going anywhere, such people don't buy or sell because they don't come to an agreement.  "Meeting of the minds" is what makes everything move forward.

As Realtors helping our clients understand the market, we get used to telling them things, sometimes over and over.  And then again and again, because there's a lot to know in all that paperwork, and data about the market, and what comes from our knowledge and experience.  But, sometimes (and I learned this from a garage mechanic one time who was good at listening to me ramble on about my car's symptoms) people have their own intuition about their own deal. In the midst of a counter-offer meeting, the buyer insisted on a low price I believed the seller was unlikely to take, even though that market had more sellers than buyers. Maybe it was the glint in the his eye, but I decided to go ahead and print up the counter offer with the buyer's price.  With no further ado, the next day the seller accepted it, and escrow was opened.

So sometimes you know a lot, but you still have to keep your alert system on for incoming unrecognized sources.

Some New 2014 Laws for California

It's that time of year again, and there are new laws taking effect that will affect a lot of us.  Here are a some of the new California laws that are wise to know about and which are taking effect January 1, 2014:

1.  Public dog parks are not liable for injuries caused by dogs. Assembly Bill 265

2.  Adjoining owners are equally responsible for shared fences and boundaries. "Adjoining landowners are presumed to share an equal benefit from any fence dividing their properties, and unless otherwise agreed in writing, are presumed to be equally responsible for the reasonable costs of construction, maintenance, or necessary replacement of the fence." Read more about the longer particulars on this new law:  Assembly Bill 1404

3.  A seller's Transfer Disclosure Statement to now include awareness of construction defect claims.  This will affect owners in some areas more than others. The "TDS" is a standard form provided in residential property transactions by REALTORS in California, and contains legally required disclosures.    SB 800; Senate Bill 652

4. The Used Mattress Recovery and Recycling Act is to reduce illegal dumping of mattresses to reduce blight and increase recycling.  A recycling program must be set up to handle them. Senate Bill 254

5.  New smoke detector specifications:  "Starting July 1, 2014, the State Fire Marshall will not approve a battery-operated smoke alarm unless it contains a non-replaceable, non-removable battery capable of powering the smoke alarm for at least 10 years." See the new requirements at  Senate Bill 745

6.  Brokers can be suspended or lose their real estate licenses for knowingly tampering with real estate documents in connection with their licensed activities.  This includes directors, employees,  and officers of a corporation.  Senate Bill 676

7.  Brokers who charge a fee for providing rental listings must be appropriately licensed for that pre-paid rental listing service.  Read here for more information, Senate Bill 269

These are just a few of the upcoming laws taking effect in 2014, of which there are approximately 100 new laws in many categories.  Laws that affect real estate transactions are reflected in updated REALTOR forms so that buyers and sellers can be assured that all pertinent disclosures, advisories, and information is provided during the transaction.

At Last! Finding the Right Home by Building Your Wish List

Here is a great video by Ilyce Glink talking about establishing your "wish list" for home buying. Whether you're currently a renter, or a homeowner who needs to sell before moving on, I believe this is what everyone really needs to do very early in their planning for a new home, from the house itself to the location that will best serve them! Once this is done, it's a lot easier to start matching up your desired neighborhoods and your financing programs with what's on your list. If you're looking for assistance on more ways to make that match, please contact me! If you're interested in a property search, either take a look at the Homebuyer Market Program below for a comprehensive approach to homebuying, or go to my MLS search at http://www.juliahuntsman.com/ . Why do I say "at last!"??? Well, this may deeply surprise some of you, but in my experience I have actually met buyers who believe they will "just know" they have found the right house when they walk into it, and also in my experience, the buyers who "just know" are the ones who did their homework first.

Long Beach long beach real estate 'Voice this!

California's Updated Property Tax Withholding Laws

California's property tax withholding laws have been revised recently, and below are some basics per the legal counsel of California Association of Realtors.

An important thing for buyers and sellers to note is that the REALTOR is not the person charged with informing the buyer and seller, it is the escrowholder (although it certainly helps if your REALTOR is knowledgeable and prepares you beforehand).

If the escrow officer does not inform the buyer of their requirements to withhold, then the buyer is not obligated to withhold the money from the seller. (This concerns California law only; the IRS also has additional requirements.)

"Buyers must withhold 3 1/3 percent of the gross sales price on sales of California real property interests from both individuals (e.g., "natural" persons) and non-individuals (e.g., corporations, trusts, estates) and pay this amount to the Franchise Tax Board (FTB), unless an exemption applies (Cal. Rev. & Tax Code §§ 18662(e)(1)(A), (B), (2)(A)). Escrowholders must give buyers written notice of these withholding requirements. If the escrowholder fails to give the buyer this written notice, then the buyer is off the hook for the withholding tax liability. ( (Cal. Rev. & Tax Code §§ 18662(e)(3)(B).) Typically, the escrowholder submits both the form and money withheld to the FTB.

The exemptions include:

the sale of property for less than $100,000 (Cal. Rev. & Tax Code § 18662(e)(3)(A)); for individuals,

the sale of a principal residence or a property last used as a principal residence (Cal. Rev. & Tax Code § 18662(e)(3)(D)(i));

the sale of a decedent's principal residence by the estate (Cal. Rev. & Tax Code § 18662(e)(3)(D)(i));

the sale of property by a corporation with a permanent place of business in California (Cal. Rev. & Tax Code § 18662(e)(3)(D)(v));

an Internal Revenue Code (IRC) § 1031 exchange (without any recognized gain)(Cal. Rev. & Tax Code § 18662(e)(3)(D)(ii));

an involuntary conversion under IRC § 1033 (Cal. Rev. & Tax Code § 18662(e)(3)(D)(iii));

the sale of property at a net loss (or a net gain not required to be recognized) for California income tax purposes (Cal. Rev. & Tax Code § 18662(e)(3)(D)(iv));

seller's tax liability, calculated at the maximum rate regardless of seller's actual rate, will be less than 3 1/3% and seller certifies that fact under penalty of perjury. (For tax rate for corporations, see Cal. Rev. & Tax Code § 23151 or 23186; for maximum tax rate for other sellers, see Cal. Rev. & Tax Code § 17041.) (Cal. Rev. & Tax Code § 18662(e)(2)(B).)"

The required amount withheld in escrow must be transmittd to the FTB within 20 days after the close of escrow, and during escrow, the escrow officer should provide the buyer with an instruction form for the escrow officer to transmit those funds.

Long Beach long beach real estate 'Voice this!

Old Saying in Real Estate: "First You Have to Sell It to the Buyer and Then ...

... you have to sell it to the appraiser." In a rising market appraisals are usually not a cause of concern, but the market of the last two years is seeing a return of cautionary words about knowing the appraisal process. This is where sellers are smart to choose agents who provide them with realistic comparables when listing their property, and this is where it's smart for buyers to work with agents who are familiar with their prospective new home.

Sellers who bought recently may not be happy with the actual rate of return on their new purchase, particularly if they've refinanced lately, or took out a home equity line, or had a 100% mortgage to begin with. Sorry, but your equity won't be so great, if any. Furthermore, in the words of a local loan representative who sent me an e-mail on appraisals today:

"The appraisal process often confuses consumers and loan officers. They may feel that their home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them or sales staff because there has been so much time and effort invested in the file. It is important to know that the appraiser is completely independent from borrowers, buyers, sellers, and Real Estate Agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae. In most states, the mortgage lenders must also disclose the purpose of the appraisal, as each transaction carries its own set of rules. In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value. The most important feature of a home is location, location, location."

It's not uncommon for sellers to think their lovely home is worth more because of $50,000 invested in certain upgrades, but that depends on the age of the home. Per our friend from Wachovia, "the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal" because much of the total remodel cost usually involves demolition and upgrading of the basics such as plumbing and wiring. Upgrades in a very new home would get a higher return on the investment because they are an addition to the cost of building the new home. The value of those upgrades will depend on the local value of other recent sales with similar upgrades.

If you have an all cash buyer and no lender appraisal is required, you may or may not deal with an appraiser because the buyer may still want a 3rd party opinion.

A most difficult thing in a transaction where the buyer is obtaining a loan is to have the appraisal reviewed prior to closing--last minute questions can delay the closing. The best of all possible worlds is for sellers to realistically price their properties for their area.

(And why is there this picture with the dog? Because I couldn't find a photo of an appraiser.)

Long Beach long beach real estate 'Voice this!

"The Importance of Being Earnest" About Real Estate

The Oscar Wilde play is described as "A Trivial Comedy for Serious People", but in real estate there's hardly anything trivial, if at all. Buying and selling property requires a lot of signing of forms, and it may be overwhelming at the time. But at some point in time, you may well be further considering the meaning of some particular document in retrospect--this is why your REALTOR really has to have you do what he/she needs you to do. It's all for good reason.

Here's a summary concerning what seems like a picky little thing at the time, but you know what they say, the devil is in the details. Trust me, when we ask you to review your documents, and sign certain things on a timely basis, it is what we need to do for you and what you need to do for yourself, and for all parties in your sale. In this 1992 case an agent failed to provide agency disclosure at the proper time, and if you click on the link you can read the case:

Huijers v. DeMarrais -- "It was only at the time of the signing of the purchase contract that the DeMarraises received the agency disclosure statement required to be given to them prior to signing the listing agreement. The purchase contract included a statement that Larson was acting as a dual agent for both buyer and seller."

This failure led to the lawsuit above, its decision upheld by the Court of Appeal of California. It could have been avoided. Agency disclosure has long been required prior to a buyer signing an offer to purchase, or a seller signing a listing agreement. This one-page form describes the agent's fiduciary duties to his/her client and other responsibilities, and the client's signature is acknowledgment that they "got it".

How do you know if you've received everything from your agent you're supposed to have? Click here for the sales disclosure chart.

Long Beach

Counteroffers: What To Do

It's not unusual, whether you're a buyer or a seller, to start feeling that the other side is being totally unreasonable, or that the price is too low from a buyer or the seller is asking way beyond a reasonable asking price.

Sometimes, buyers may get upset and refuse to make a second counteroffer back to the seller because they feel the seller just won't listen, especially if it concerns the price. It's important to keep negotiating at that point. Getting upset will only get in the way. Each party may have what they feel are totally valid reasons for their position, and if you can find out what those are (and this is where your Realtor works for you), at least you have an understanding of the other side even if you're ultimately not going to agree with them. Once the emotional level has dropped, it's easier to make a rational decision that you won't regret later if you do end up rejecting the deal.

If you feel you're backing down on an important issue, then don't. Explain why this is important to you so that it can be communicated to the other party. Possibly the other side will walk away at that point, but that possibility also exists during the contingency periods during escrow.

It's important that you know why you think as you do--it can make the difference between selling/buying the property or not.

Long Beach

Automated Property Searches

The Southern California MLS system -- Tempo -- has just completed a merger with the MLS system covering the San Fernando Valley, making the Southern California MLS one of the largest multiple listing services in the nation. That means an easier search for you when it comes to finding properties in Los Angeles and Orange Counties, and beyond, including Riverside and San Bernardino.

You may either go to the property search function on my website at www.juliahuntsman.com, or have automated property updates sent to your e-mail tailored to your specific search criteria, i.e., square footage, bedrooms, baths, zip code, city, Thomas Guide number, year built, and other factors. This includes condos and townhomes, houses, units, and commercial property. If you do your own search through my website, you will be receiving information that is current within a few hours as it is updated throughout the day. Do you want to know more? Just call me or e-mail me so I can help you as soon as possible.
Property Search,

What Happens If You Are In Foreclosure?

Recently, California has experienced an increase in property owners who cannot seem to make payments. If you are one of those people who has received a Notice of Default from your lender, please read this.

You still have time to find solutions and avoid losing your property. Maybe your property isn't a mansion, but to you, it is. You should consult with your attorney for complete information on the foreclosure process, and your accountant for tax advice.

A non-judicial foreclosure under California Civil Code section 2924 allows lenders to foreclose upon real property without going to court. It takes approximately four months from start to finish. Once the sale auction is completed, it is final, but an IRS tax lien can cause a delay in the finality of the sale. The borrower must then vacate.

1. Your trust deed functions as the lender's security device for its loan. Lenders may hire a new trustee to replace the trustee named in the trust deed and then instruct the new trustee to issue a Notice of Default, and "NOD", in which you, the borrower, are warned to act or face the consequences. The NOD is recorded at the County recorder's office, and sends copies to the borrower and to any party who requested a Notice of Default form, to holders of junior trust deeds, to the borrower's successor in interest, and anyone else legally entitled, no later than one month following the recordation of the NOD.

2. You have the right to reinstate the loan by tendering to the lender or trustee your delinquent loan payments, plus the trustee's fees and costs. Upon receipt of that payment, the trustee is obligated to rescind the NOD, and the loan is reinstated to normal status, as long as it is reinstated until five business days before the scheduled foreclosure sale. Otherwise, the lender is not required to stop the sale, and the lender may demand the borrower pay-in-full the total outstanding principal balance and accrued interest on the loan, plus trustee's fees, right up until the moment before the sale is completed.

3. If three months pass following recordation and the borrower does not reinstate the loan, the trustee is instructed by the lender to set a time, date and place for the sale, usually three to four weeks from that time, hence, the total time of about four months.

4. The borrower will receive a Notice of Trustee's Sale, along with other entitled parties. The NOS must be mailed, posted in a public place, published in a newspaper of general circulation in your property city--all 20 days before the sale date-- and recorded at the County recorder at least 14 days prior to the sale date.

5. At the appointed time, the trustee conducts the sale at public auction.

You may have time to refinance (there are hard money lenders who will loan even though an NOD has been recorded) and even if at a higher rate, that is better than losing your home. When your situation has improved, you may be able to obtain a better loan. You may also contact your lender for arranging a "short sale". Lenders don't really want to take back properties, and are often willing to make an arrangement with the borrower who might otherwise be able to sell the property rather than going into foreclosure.

Above all, you should not ignore your situation, as difficult as it is at the time.

Please know that this is one of my most frequently read posts. Many people are facing this issue. If that could be you, or it is you, please know that (1) you may be able to refinance your way out of your situation, (2) you may be able to negotiate a short sale with your bank. If you need immediate loan qualification, or are considering negotiating a short sale, PLEASE CALL ME.
If you would like a market analysis of your property to try to sell it, please call me at 562-896-2609 or e-mail me ocean@surfside.net immediately.


Long Beach, CA, Foreclosure

Pros and Cons to Calculating Your Home's Value Online

This article is straight from The Wall Street Journal's real estate section. Right off, it makes the point the property owners have come to see their home like it's a stock, with an equity value to use as a pool for more acquisitions. Read on to see how the author tested out several online systems for arriving at a value, to find out that a very broad range was quoted instead of one specific price. A single price, however, was quoted through the Zillow.com and Realestateabc.com sites. (Through my own experience, I can tell you that Zillow may quote a price not agreed with by me in my own market analysis, whether too hight or too low.) An offsite appraiser was finally contacted, and the appraiser's opinion lowered drastically after he visited the home to a range that approximated that of Zillow.com's and Realestateabc.com's estimate. Be aware though, that even though sites that use property tax sales as the basis for their database, and which would be the same one's a Realtor would use, do not include other important condition information--the sale amount alone does not tell all, just as the appraiser's estimate changed after he saw the house.
Oneline estimates are great tools, but should be almost always considered as a preliminary ballpark figure at best, as sometimes the value of your home could be very greatly overestimated or underestimated.

If More Information About Teeth Became Publicly Available, Would You Fire Your Dentist?

Something that a lot of internet users have a misconception about is that property listings that are available for public viewing on the internet are not in the public record, as some people actually have told me they believe, i.e., they won't be found at the court house as a recorded property deed is. Furthermore, they don't seem to realize that sellers have a choice as to whether or not to put their listing into internet sites or just keep it within the local MLS of their agent, as advantageous as wider internet exposure may be for them.

The proliferance of sites that supply listings, i.e., Trulia and Zillow, just to mention two out of what are probably hundreds if not thousands, are not necessarily a complete databsse of REALTOR-listed properties through an MLS system. Again, they can be a viable source of information for everyone, but they depend on property tax records, which ARE public records and therefore available to anyone, and manual entry of listings by owners or agents. MLS's cooperate with various sites to allow their listings to be shown on other internet sites, and brokers may have an opt-out capacity. Why? Because a listing agreement belongs to the listing broker and is a contract between a seller and his/her listing broker/agent, not a public document to be found in the public record. That is what is behind every REALTOR's representation of a property. With the spectacular rise in real estate values and internet use came many others who wished to be a part of the REALTORs' business of representing their clients like never before. This leads into the current debate going on about MLS's and control of them, as housing values and sales are currently a huge factor, if not a driving force, of the economy.

In the United States, but not necessarily in all other countries, we no longer live in a world where showing a property means driving over to a listing broker's office to get their list of properties, and then driving on to another broker's office to get theirs. That's why the multiple listing services came about as far back as the 1930's--before an internet was even conceived of by the average person. The merging of MLS's, even if there is one national MLS, will still not eliminate the need for professional assistance in viewing, buying and selling homes. Or I may as well start drilling my own teeth and fire my dentist.

Long Beach, MLS

It used to be we had the book, and they had to come to us for information.”

That quote from Rob Levy, a real estate broker in Portland, Oregon refers to the MLS book, an artifact from ancient past history as long ago as the late '90's, a piece of history that by now is probably little known to younger prospective buyers entering the market for the first time who are used to quick access to information. That was back when a trusted Realtor was considered the major source of information about homebuying and selling. Fast forward now to a time when real estate information is everywhere in print and on the internet, it's so much everywhere from so many sources, that choosing the right information from the right source takes labor, time and a lot of self-education for the buyer. It's becoming important to know where to look.

Like the buyers in the article, "Buyers Who Go It Alone" by Buck Wargo, REALTOR® Magazine Online, they may think it's easy because maybe their first transaction was smooth. But different real estate cyles have a tendency to change situations, plus new laws in real estate impose additional requirements and disclosures, which may leave both buyers and sellers in quandry in the middle of a transaction if they decided to leave a qualified REALTOR® out of the mix.

Internet tools, such as MLS searches on REALTOR® websites and other online media article, are great resources not available in the past, and a non-pressured way of looking. But I'm also finding in this market that there are those who have done very little prior research and would rather come into the open house and talk personally with a Realtor, and I'm wondering if there isn't so much universal information to be sifted through, that despite media publications to the contrary, most prospective buyers and sellers want "local, up close and live" talk from a professional whose business it is to provide specialized expertise and knowledge accumulated from experience and competence.

Long Beach, CA, open house, homebuyer

Realtor vs. real estate agent -- Tune In

Yes, there is a difference, and this week's advertisements in different spots around the state talk about just that. Click here to listen: http://www.car.org/index.php?id=MzE4NzE= . The real estate industry technology whizzes who work to make real estate "data" so available to the consumer really build from the work actually performed by the Realtor professional who effects the listing and sale of property. The foundation of expertise is provided by such Realtor professionals, and all that they must do to maintain their knowledge and their skills. Consumers benefit directly from work with a Realtor who has a commitment to the service of their clients.

Trade Show and Other News

Every year we have an opportunity to see new product demonstrations and attend sessions at Pacific West Association's annual trade show and expo. This year, as it was last year, it was held June 15 at the Disneyland Hotel in Anaheim. This is always a time to hear from others in the real estate industry, learn about new developments and tools available to us as Realtors. It's always about how to increase our service to our clients and what we can offer to do our job better, and with over 100 exhibitors and several industry speakers, there were plenty of opportunities, not the least of which was the legal update offered by our Association counsel. There are also many software products and internet-related methods for doing business that we always get excited so that our clients will eventually know that this translates into improved service for them. 

 

Talking about increased opportunities, maybe you've noticed more open house signs recently?  The inventory has about doubled during June, to a more normal level of inventory. If you got frustrated in past months because of the hot and heavy competition with other buyers, take a look again.