Water Conservation in Southern California--It Can Save You Money!

Ironically, on the day of heavy rain last week in Long Beach, drought conditions were officially declared (again) by the City, and water restrictions were officially put into place, and/or reminded of once more. So diners must ask for water in restaurants, and water users are not to water more often than 3 days per week at specified times and for no longer than 10 minutes. Most people don't think about how much water a dripping shower wastes, or sprinklers that are constantly leaking--you can save lots of money by fixing these problems.

Here are 10 tips from the Community Associations Institute to conserve water, because about 60% of water usage is used outdoors, according to the Irvine Ranch Water District.

1. Water early in the morning or later in the evening when temperatures are cooler. Save 25 gallons per day.
2. Choose a water-efficient irrigation system, such as drip irrigation for your trees, flowers and shrubs. Save 15 gallons each time you water.
3. Maintain your irrigation system. Check your sprinkler system frequently for leaks, and adjust nozzles so only your lawn is being watered and not the house, sidewalk or street. A well-functioning irrigation system can save 500 gallons per month.
4. Water deeply, but less frequently to create healthier and stronger landscapes. Reduce water runoff onto sidewalk, streets, by watering as frequently as possible and for less time. For a free watering schedule, visit irwd.com. Save 12-15 gallons each time you water.
5. Monitor the performance of your landscape and adjust the run times up or down accordingly. If your lawn does not spring back when stepped on, it’s time to water.  Be sure to turn off your irrigation system when it rains, and depending on rainfall wait to restart. Save 1,100 gallons per irrigation cycle.
6. Consider investing in a weather-based smart controller. These devices will automatically adjust the watering schedule based on soil moisture, rain, wind and evaporation and transpiration rates. Check with your local water agency to see if there is a rebate available for the purchase of a smart controller. Save 40 gallons per day.
7. Replace your lawn with drought-resistant trees and plants. These plants are well suited for California’s mild winters and dry summers. They are low maintenance, use less water and don’t require soil preparation or fertilizing. Remember to contact your association and obtain prior architectural approval, if necessary.  Save 30-60 gallons each time you water per 1,000 sq. ft.
8. Plant the right plants for your climate. Use the Save Our Water-Wise Garden Tool to learn what plants and flowers will work best in your neighborhood. Or, download a free copy of A Homeowners Guide to a WaterSmart Landscape.
9. Put a layer of mulch around trees and plants to reduce evaporation and keep the soil cool.  Organic mulch also improves the soil and prevents weeds. Save 20-30 gallons each time you water per 1000 sq. ft.
10. Avoid using water for outdoor clean-up. Use a broom to clean driveways, sidewalks, and patios. Wash cars with a bucket, sponge, and hose with self-closing nozzle. Save 8-18 gallons per minute.

See http://www.lblawntogarden.com/ for the City of Long Beach conservation and rebate programs for residences.

For more tips and samples of drought tolerant landscapes, visit www.bewaterwise.com, http://saveourh20.org or download the toolkit.

Some Lenders Are Checking Borrowers' Social Media Accounts

Along with new lending rules for buyers and lenders that came into effect on January 1, there's more to think about, too.  According to an article in the Wall Street Journal, a buyer's Facebook and Twitter data may help a lending company determine a borrower's creditworthiness.  Ironically, these same lending companies may be backed with venture funding from Google Ventures or Accell Partners (early Facebook investor). 

Social media accounts are a way to double check a borrower's job information (see your LinkedIn account), or there's a post about how you got fired on Facebook.  And E-Bay could be a great place to check your small business reviews by others. Right now this practice of social media review is primarily used by smaller loan sources, but Fair Isaac Corp. (your FICO credit score company) is considering incorporating social media, and since it provides credit scoring for the vast majority of lender decisions, that could have a huge impact.

Lendup, a San Francisco lending source, is one company currently using a mix of credit bureau and social media information to help assess borrowers' risk and verify identities. Applicants are voluntarily sharing their Facebook, Twitter and other social sites which Lendup is using, although they don't require it.  It just helps on the road towards loan approval.  This is a company backed by Google Ventures and which expects to make 300,000 loans in 2014.

At Moven, a mobile-only bank, customers can link up their social media accounts to learn about their own financial behavior and make payments to friends. The President of Moven says social-media activity will be one factor used in lending decision on their future loans. He believes social media data says more about customers than their FICO score.

Kabbage Inc, a loan source for small businesses, requires a customer to link at least one account such as Amazon, e-Bay, or Xero for underwriting decisions.  Kabbage, Inc., is looking at how many "likes" a customer receives, and what reviews are saying about the borrower's business.

The Consumer Financial Protection Bureau and the Federal Trade Commission are taking a close look at privacy issues. If, for example, a consumer reporting company such as Experience or Equifax has inaccurate information on a borrower, the consumer may dispute that information under the Fair Credit Reporting Act. But  companies using social media in their lending decisions don't have to verify the information about you because it isn't reported to third parties, so there apparently is little or no regulation when it comes to this type of  "background check" on a borrower.

" 'There are privacy concerns. People don't understand the implications or why they may be considered undesirable' " for credit, said Jeffrey Chester, executive director of the Center for Digital Democracy in Washington, who is calling for regulation."

See the full article at http://online.wsj.com/news/articles/SB10001424052702304773104579266423512930050?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304773104579266423512930050.html

Sellers, Get the Price You Deserve!

Seller's selling tasks

Every year  National Association of Realtors publishes its survey of home buyers and sellers, but this 2011-2012 survey (most recent) on FSBO's (for sale by owner) shows one of the largest gaps I've seen in selling price.  Traditionally, the figure was about a 5% difference in selling price (including all costs)between selling on one's own vs. being represented by a REALTOR. This, however, is showing a 20% difference in price when sellers did not use professional representation.

Not to pick on just one group, though, the graphic really highlights the issues before all sellers:

Having enough time to devote to preparing your home for sale, reviewing and negotiating all items as represented in transactional documents, understanding buyer financing issues, and being on top of the current market so that your setting the right price.

Very often, sellers focus on price to the exclusion of other terms, and may actually end up with a lower bottom line.  How is this possible? It's important to recognize negotiating issues and how much to give, or not give.

For an estimate of your home's value (condo, single family or residential units), please contact me.  If you're thinking you need to save money, you should first get an accurate estimate.  Your home could be worth more than you think (although I don't endorse overpricing), and you could actually net more than you originally thought by using a knowledgeable REALTOR.