10 Flooring Options For "Fantastic Floors"

I really liked this article in REALTOR(R) Magazine Online today about the pros and cons of 10 different types of flooring--I wish it was a video to embed, but if you click on the link below you will go to an interactive display.

Often people make a choice because they love the way certain flooring appears, but don't consider the setting, or their own physical needs.

Have you ever considered leather tiles on your floor, or which part of your home where cork would make a good covering? These days everyone is thinking about eliminating allergens, and so they often think of removing their carpeting. But if you like carpeting, have you thought about the best kind?

Depending on the climate zone you live in, and your preferred maintenance plan, and longevity, choosing the right flooring may save you money--or not. Take a look at your options for linoleum, seagrass, bamboo, ceramic tile, concrete and stone.

Fantastic Floors - REALTOR(R) Magazine

How To OutBid the All Cash Buyer

The real estate markets in many areas, and not just in the United States, have much to be thankful for in the all-cash buyer. The all-cash transaction will be able to avoid a buyer's loan and appraisal requirements, in a market where appraisals alone have held up -- or killed -- some transactions completely. Appraisal issues, due to guideline changes, have eased up a little, but this does not lessen the desirability of the all-cash buyer in the eyes of the seller. This is especially true for "difficult" properties, such as major fixers, and condominiums in HOAs where the association may have other legal or financial challenges, including too many owners who haven't paid their monthly dues on time.
But it's a knife that can cut both ways. Some all cash buyers traditionally have believed that the seller will sell for a lower price in order to avoid a buyer's loan process. While that strategy may apply for certain cases, sellers are still just as concerned as ever about their net cash at closing. In a tougher market however, some sellers do prefer to get to a faster closing if they can accept the buyers terms. Buyers with loans who are attempting to compete with all-cash buyers should take a look at the percentages below, and also learn the specific neighborhood where they are likely to compete. The National Association of Realtors states that all-cash buyers made up 33% of all buyers in February, 2011. In 2010, the total was 59% nationally.

All Cash 1st Quarter 2011 Closings for Single Family Homes and Condominiums:

• Long Beach (23%) - 155 Cash out of 665 Total:  $254,091 average price, up to $1,800,000.
• Cerritos      (23%)  - 19 Cash out of  84 Total:     $382,210 average price, up to $990,000.
• Seal Beach   (32%) - 8   Cash out of 25 Total:      $440,706 average, up to $800,000 .
• Lakewood   (9.59%) -  17 Cash out of 163 Total:  $330,173 average, up to $500,000.
• Huntington Beach (20%) - 69 Cash out of  344 Total:  $452,409 average, up to $1,500,000. 

Therefore, buyers need to prove their strength to the seller, because if your seller has a lot of equity in their property, they are less likely to be interested in a "low-ball" cash offer.

Before shopping for a new home, go to a recognized lender and get completely pre-approved, by allowing your credit to be run and submit all requested to documentation to the loan officer.
Learn what the list-to-sell percentage is in your neighborhood of interest so that you can make a good offer that applies to the true value of the home.
Submit your lender's pre-approval letter and contact information with your offer.
Write in a strong deposit amount, at least 2% or higher, with your offier--this shows your commitment to the seller.
Understand the terms and conditions which may be associated with a short sale or and REO property: they are not the same negotiating experience as with an equity seller.
Be prepared to act quickly--you may not have days to decide if you want the property or not.
Have the patience and fortitude to keep looking if you lose an offer in the beginning, but asking some questions up front through your agent may help to avoid the worst calamities, and may help you find out what's important to the seller. If you can be flexible, your chances may improve.

And also remember, sometimes the cash deals fall apart also.

A Lower Assessment?, or, Have You Checked Your Property Tax Data Lately?

During the 1990s recession, many property owners filed for a re-evaluation of their property taxes because of the falling market prices, which meant a lower property tax. To do that--then, as now--there were certain forms and a procedure to follow to apply for that lower assessment. That information, by the way, is posted on the County Tax Assessor's site. One thing to know right now, though, is that the Los Angeles County Tax Assessor's office has been diligently pursuing the market trends and automatically lowering property assessments during this latest downturn.

If, however, you think you are still not getting the correct assessment, you should know that deadlines must be met, or you wait until the following year to make an appeal. Review your property data for square footage, number of bedrooms and baths, etc., to make sure it compares correctly with the real configuration of the property.

If you believe your property data as entered in the tax records does not represent the property, documentation will be required in the form of an appraisal (if you have one) or other documentation. For instance, if your home shows as a 3 bedroom on the tax records, but it was later modified and is functionally a 2 bedroom, this will require documentation to present to the Tax Assessor's office.

Be able to provide recent comparable sales (usually about 3) in your area to show current market values. If you need help with this, please contact me for information on filing deadlines, or the sold listings provided through the MLS that would be a comparable for your property.

And, while you're at it, you should make sure you've taken your $7,000 Homeowner Exemption, which also saves you a little more because it lowers your tax basis by $7,000.

By lowering your assessment, you save money.

How Many Short Sale Listings in Belmont Heights, the Shore and Naples Areas?







3923 E Vista

 Currently, including actives and those taking backup offers, there are 20 single family properties in short sale status in the 90803 zip code. They range in price from $449,000 for 3923 E. Vista St. to $2,350,000 for 5649 E. Corso Di Napoli.

3923 E Vista is a two-bedroom 1923 bungalow style home in Belmont Heights, east of Redondo Ave, with a detached garage.
The Treasure Island home on Corso Di Napoli is a bay front home with open water view, and includes two 48' boat docks.
It is listed as a two-story house, with 3 bedrooms and 3 baths, and a 2-car garage.



5649 E Corso Di Napoli

 There are 12 more active short sale listings in this area, including 2703 E 2nd St, listed at $740,000 in Bluff Park Historic District. This property is a 1909 craftsman style house on a corner lot, and is waiting for an offer! This is a great price in a neighborhood where recent sales have closed over $1,000,000.

Since December 1, 2010, 3 short sale (single family) properties have closed in this zip code; 3 properties closed as bank-owned sales; and 25 were listed as "standard sales", out of a total of 33 sold in all categories in the same time period.

If You Have Investment Property, Here Are Taxing Issues

It's tax time, and a lot of people are hitting my site to find out property tax rates. (As I've said before, in California, figure approximately 1.25% of the selling price for the initial property taxes. For more information on that, go to your local county tax assessor's site.) And, the lower federal income tax rates that were set to expire on December 31, 2011, have been extended for another two years.

Tax deductions which owners of investment property could be dealing with include:

Mortgage Interest – The interest owed on a loan used to acquire or improve an investment property is a tax deductible expense. In addition, interest payments on credit cards for goods or services used in rental activity is also deductible.


Depreciation – Residential income property can be depreciated over 27.5 years; commercial 39 years. Depreciation is often the largest deduction a real estate investor can take.

Repairs - The cost of repairs to rental property are fully deductible in the year in which they are incurred. The repairs must be ordinary, necessary, and reasonable in amount. Some examples of deductible repairs include painting and fixing broken fixtures. Replacing a roof would not be considered a ‘repair’, but rather a capital improvement and the cost associated with replacing the roof would increase the basis of the property.

Travel Expenses - Property owners are entitled to deduct the costs associated with traveling to and from the rental property. The drive to a property to deal with a tenant complaint would qualify as a tax deductible expense. Likewise, flying to Hawaii to repaint a rental property would also qualify as a tax deductible expense. For overnight travel, you can deduct your airfare, hotel bills, meals, and other expenses. If you plan your trip carefully, you can even mix landlord business with pleasure and still take a deduction. Please note however that IRS auditors closely scrutinize deductions for overnight travel. To stay within the law and avoid unwanted attention from the IRS always properly document long distance travel expenses.

Home Office – Landlords may be able to deduct home office expenses provided certain minimum requirements are met.

Employee, Independent Contractor and Professional Services Expenses – Fees paid to gardeners, painters, attorneys, accountants, property management companies, real estate investment advisors, and other professionals can be deducted as operating expenses as long as the fees are paid for work related to the rental activity.

Advertising – Any advertising costs associated with marketing the property for rent or for sale can be deducted.

Insurance – Insurance premiums can be deducted for almost any insurance policy related to the rental property. This includes, fire, theft, and flood insurance for rental property, as well as landlord liability insurance.

Vacant Property -If the property is vacant either because the property is up for sale or is waiting to be re-tenanted, the owner may still be able to deduct all ordinary and necessary expenses (including depreciation) for managing, conserving and maintaining the property while the property is vacant.
 (Courtesy of Leonard Spoto, http://www.ax1031.com/)

Contact your tax advisor for complete professional advice.

Long Beach Sales Are Still Moving Forward

There's a lot of talk about how flat the market is right now, but it's important to keep in mind that real estate is local.



6 months sales in Long Beach

 The 6 month sales volume chart for single family houses in Long Beach (since October 1, 2010) shows about 206 sales citywide for February, which is higher than previous months.
And looking at the entire zip code for 90803 for the last 2 years (Jan. 2008 to Feb. 2011), sales have peaked at 18,19 and 20 in each of the highest 3 months in that cycle. January of each year shows typically the lowest number of sales, ranging from 4 to 7.

(Four years ago shows June 2007 with a peak of 31 sales in 90803 (Belmont Heights, Belmont Shore, Naples, Bluff Park), the highest of the entire 4 year period in one month.)


3 year sales volume 90803

 The average days on market in 90803 in the last 6 months has ranged between 72 to 143; the average sale price in the last 6 months has ranged from $688,000 to $1,113,000.

For a market snapshot of the MLS information for your area, just contact me about current average prices, times to sell and other information to help you know your market.

Lakewood Home - Reduced to $359900!!

Reduced to $359,900! Can be used in conjunction with FHA Rehabilitation Loan Program--Buyer may choose from a menu of options for repairs. Call me about this property today!! Less than one-half block from Lakewood High School, walk to nearby shopping on Woodruff Ave.  Very residential area. It needs some help but is a great opportunity for the right buyer. Has two-car attached garage, solar panels on roof, nice hardwood floors in the interior, large master suite, family room. Call! 
Julia Huntsman, Broker
Lic 01188996

UPDATE: this property is now sold.

A Short Course in the Meaning of Home Equity

What is your property's equity? This topic came up just recently in a discussion, and though we think it's a basic real estate question, we can't always assume that everyone knows how it gets answered. 

Basically, equity is the amount equal to the current market value of your home, minus all your liens, or what you owe. Ideally, if you bought a house for $200,000 and your only outstanding lien is your total mortgage amount of $150,000, then you have $50,000 equity in your house.

Some people may think that because they invested a certain number of dollars in their house as a down payment, i.e., $50,000, plus their additional funds to pay for closing costs, that they will get the remainder back when they turn around and sell.

But just like the disclosures advise about deposits into investment funds, that depends on what's happened to the market values in the time you've owned the property. And what improvements you've made to the home, and how they are currently valued (but not usually by the dollar amount you spent on them). And the location, and the condition of the property, and how your property may be perceived by the target group of buyers searching at any given time for a home like yours. In addition to these "standard" value issues, we have the following:

As is well known now, property values increased greatly a few years ago, and then started to fall--all due to numerous complex global market forces. This was great for people who sold their homes on the upswing: That $200,000 house might have sold for $400,000, and the owner's gross net at the close of escrow, after paying off their loan, was approximately $250,000--before paying closing costs.

But for people who did not sell until the market went down, maybe they broke even: Perhaps their home was worth $165000 on the current market and they had just enough left over to pay off the loan and their closing costs. Or, or if their home value declined even further to $150,000, then they are digging into their pockets to pay off the $150,000 mortgage plus the extra money for additional closing costs. This why many people, possibly as much as 30% of all mortgage borrowers at the present time, are in a short sale position, or "under water" in the market value of their home. If you don't have a need to sell, then you should not be affected by the downward cycle. However, if your employment income has been affected and you cannot continue with payments and you have to sell, or you have experienced some other stressful impact to your financial status, you are most likely in a short sale situation because the market values may have decreased below your mortgage balance (which is tied to your amortization schedule, not the economy), and therefore you have no equity.
First of all, you should get a good assessment of your current home value, some people actually still have some equity, or could possibly "break even", and a short sale could be avoided. If, however, you think you might be in a distressed situation, please contact me to find out your options, or you may go to the Distressed Properties section at http://www.juliahuntsman.com/ for a few free reports.

Real estate goes in cycles, and it always has. Some are harder than others. There are many many people who, through no fault of their own, have experienced a negative equity situation or even the loss of their home. But before that happens to you, you should find out if you're able to get a loan modification, or it not, what a short sale vs. deed-in-lieu vs. foreclosure would mean for you. It will cost you nothing, and could help you from the most severe impacts and a faster recovery in the future.

How Many Properties Are For Sale Under $300,000 in Long Beach?

Lafayette - Downtown Long Beach condos

The answer is, a lot.



The great majority of residential properties included here are single family houses and condominiums; the list also includes a much smaller number of lofts (a separate MLS designation), own-your-owns and co-ops.  The grand total from SoCalMLS is 618 listed as "active", regardless of selling condition (short sale, REO, probate, etc.), or the amount of HOA dues in the case of common area properties.

This inventory is not too different from last September's post when there were 631 on the market.

The breakdown includes the following:

• 295 are single family houses, 31 of which are partially in Wrigley, Alamitos Beach, North Long Beach, Rose Park, and their adjacent neighborhoods.
• 1 is classified as a loft in downtown Long Beach, and only 7 are own-your-owns or coops. More of the OYOs and coops have converted to condos, one of the recent projects underway is a co-op on Atlantic Ave.

• 314 (about 50% of the total) are condominiums, including the Marina Pacifica complex, Belmont Heights, Bluff Park and adjacent neighborhoods, The Lakes on Spring St.  The majority of condominiums are located in the 90802 zip code which includes Alamitos Beach, downtown Long Beach, Ocean Blvd. luxury buildings (31 condos are for sale along Ocean Blvd.!!)

There is opportunity for many people here right now--including 1st time homebuyers, second home buyers, and investors. For a property search of these areas go to http://www.juliahuntsman.com/ at the property search tab, where all types of properties, including 2,3, and 4 units, may be searched throughout Long Beach, Los Angeles County and Orange County and all cities in Southern California. And, also take a look at two listings: an Emerald Villas Condo at $185,000 and a single family home in Lakewood for $365,900.

Emerald Villas is an FHA approved complex!!



Short Sales are Working Better in 2011

Lenders are primed for short sales in 2011 because short sales are a terrific option for homeowners struggling with unaffordable mortgage payments. In fact, lenders’ losses due to foreclosure are projected to increase at record rates in 2011, giving them more reason to pursue short sales. Lenders are projected to incur losses as severe as 85 percent in foreclosure! Meaning, after deducting the expense of the foreclosure process on a $100,000 loan, they may only get back $15,000!

It’s common sense that lenders will be looking toward the short sale solution. Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale.

In fact, right now in the Long Beach market, short sale transactions for condos and lofts increased by more than 200 units from 2009 to 2010.  Short sale transactions for single family houses grew from approximately 762 home in 2009 to 875 homes in 2010, or about 27% of all sold, cancelled or expired single family listings in the MLS.

Thus far in 2011, there are 593 single family homes in short sale status as active, in escrow, or otherwise on the market, out of a total of 1280 or 46%; and 380 condos and loft units are in the same categories of short sale, out of a total of 738, or 51%.

It may be a surprise to many that lenders actually want to work out a solution that benefits all parties. Oftentimes, the lender is seen as the villain in the situation. I’ve found that the lenders want to avoid foreclosure just as much as homeowners. The free, downloadable report at "Distressed Property" called "On the Edge of Losing Your Home" on this website at Long Beach Condos and Homes talks more about working with your lender, and details all the foreclosure alternatives available to you.

Download the report and call me today; I can help you develop a plan to work with your lender and avoid foreclosure.