How Proposed Tax Changes Could Affect You, the Homeowner

On September 27, proposed tax reform information was released by Republican leaders known as the Big 6* which outlines the elimination of certain tax deductions while doubling the standard tax deduction and elimination personal and dependency exemptions.  The National Association of Realtors 'believes the result would all but nullify the incentive to purchase a home for most, amounting to a de facto tax increase on homeowners, putting home values across the country at risk and ensuring that only the top 5 percent of Americans have the opportunity to benefit from the mortgage interest deduction."
In other words, should such tax reform become reality, it's not good for homeowners.

• It recommends a "backdoor elimination" of the mortgage interest deduction for all except the top 5% who would still be able to itemize their deductions.
• The total effect would be a tax increase on most Americans due to a combined loss of state and local tax deductions
• Lost incentive to purchase a home could result in overall loss of home values.
• It could strongly affect new homebuyers and older Americans who rely on the equity in their homes for retirement. 

The tax code has historically favored homeownership but these proposals that would limit tax deductability of the mortgage interest deduction and property taxes would reverse that support. An analysis by PricewaterhouseCoopers states that "values could fall in the short run by more than 10 percent if a Blueprint-like tax reform plan were enacted. The drop could be even larger in high-cost areas.   It may take years for home values to rebound from such a significant decrease."  See a summary here.

The National Association of Realtors believes that repealing such deductions would in effect cause double taxation on the same income.  For further information go to the NAR site.

The discussion about tax reform has been present for much of 2017. To preserve your homeowner deductions, contact your Congressional representative.


*House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch, and House Ways and Means Committee Chairman Kevin Brady

Average Selling Prices in Long Beach, Cerritos, Lakewood, and Orange County, August 2017

Prices are still going up, and here's what they look like locally.
For a single family detached home, the average prices in this group range from $579,687 to $1,019,768.

Overall the Los Angeles County average price for single family home is $905,787, a decrease from the previous month of $955,973.

All these prices are for the month of August, 2017, based on data from CRMLS.

Both Long Beach and Lakewood saw average price decreases from July, and Orange County is up slightly from July 2017, while Los Angeles County as a whole decreased from August's $955,973 in July.  San Bernardino County average has increased slightly since July, still under $360,000.

August 2017

Long Beach
$686,728 | +8.4%

Lakewood
$579,687 | +9.1%

Cerritos
$773,835 | +9.1%

Los Angeles County
$905,787 | +5.4%

San Bernardino County
$357,482 | +7.0%

Orange County
$1,019,768 | +4.9%

This statistic show a mix of pricing, with Long Beach/Lakewood and Cerritos having less than 30 days on the market on average, approximately 2 months inventory, and closing within 1-2% of original price.

Keeping an eye on things

For an online and automated home valuation, try my site at http://www.juliahuntsman.com/home-evaluation.  It probably works more accurately for single family homes than condos in some areas, depending on what properties lie within about a one-mile radius.  Try it!  And I am always happy to do a more customized report to send out via e-mail.  If you're thinking about making a move, do it! It pays to keep an eye on things.

The "Bureau of Real Estate" is slated to return to the "Department of Real Estate" when Gov. Brown signs

Several years ago when Gov. Jerry Brown took office, efforts to streamline state operations the Department of Real Estate was renamed the Bureau of Real Estate and moved to function as part of the Department of Consumer of Affairs, as of 2012.

Instead of being known under the acronym of DRE, it became CalBRE--more letters and, I thought, more awkward sounding.  But what really determines things in the government is how much money is involved.  The Bureau--former Department--is funded by solely by the fees paid by real estate licensees, and is not part of the State's budget system. However, part of the money going to the Bureau was being allocated to the Department of Consumer Affairs.  The Bureau, still found on the internet as http://www.dre.ca.gov, oversees a variety of functions which are found on its website.

A bill has now passed the Legislature and will hopefully be signed very soon by Gov. Brown, which will finalize the return of this agency to being a Department, and thereby saving the current Bureau of Real Estate about $3.5 million which can be utilized to make the agency function at its property level.

This site is where current news, education and enforcement about California real estate laws can be found, and should you want to check someone's real estate license, this is where to do it.

We are looking forward to the upcoming change.

See Inside a Listing Styled by a Former White House Decorator

While not all property owners can afford a high-end decorator, there is no doubt that preparing properties for sale with some professional resources for advice is a benefit to the home seller.  It's not unusual for investors to redo a home for sale, and spend hundreds of, if not several thousand, dollars to make it appealing to a new buyer. Buyers have come to expect this, having been trained by television shows making it look easy to do this, even though the show(s) typically don't show the behind-the-scenes months of actual work performed to achieve the finished product.  But sellers can still go a long way, keeping expenses very reasonable, to add the selling appeal to their property.  Adding appeal to a property does not require an expensive remodel in order to sell, but it does mean looking at the property from the buyer's point of view.  If you take just some of the ideas from the following sources, you will be able to make your home stand out!

For the story of a Newport Beach property staged and decorated by the decorator who worked for President and Mrs. Obama, as well as many celebrities, please don't miss the photos at the following link.  See Inside a Listing Styled by a Former White House Decorator

To read 50 tips on boosting your property's appeal, see 50 Cheap, Easy Ways to Boost Your Listing’s Appeal

For tips on preparing your outdoor space (and some of these tips may work for indoor space too) see this article The 5 Biggest Yard and Patio Staging Mistakes

The first clue to your home's interior is your entryway, so meet the buyer's expectations from the beginning by a good door refinishing or paint job, and the buyer will have a more favorable impression from the beginning.   Top Entryway Decor Ideas for 2017

Proposed Density Changes to East Long Beach, More Traffic, Less Choice. What?!!?

What is Your Vision for Long Beach?

Read below the post concerning plans developed by Amy Bodek, Long Beach Developmental Services Director, and her staff, prior to any public discussion, and affecting many many locations in the 4th and 5th Council districts in which retail would disappear and population density and traffic would greatly increase. Perhaps this is an attempt by the City staff to singlehandedly address a national housing crunch in the belief that no one around here is going to church anymore or shopping at stores, at the expense of local Long Beach neighborhoods. However, after a scheduled hearing on August 17 with the Planning Commission at which Ms. Bodek praised "invisible government" as a good government, the Mayor's office released a statement on August 18 supporting neighborhood review at public hearings (the way we used to do things) as follows--

 

Future citywide workshops:
· Saturday, September 30, 3-5 PM at Veterans Park Community Center
· Wednesday, October 4, 6-8 PM at Whaley Park Community Center
· Saturday, October 14, 11-1 PM at Best Western Golden Sails Hotel
· Wednesday, October 18, 6-8 PM at Expo Center in Bixby Knolls

Read on: 
"RESIDENTS IN LOS ALTOS/EAST LONG BEACH NEED TO SPEAK UP!!
FUTURE VISION for East Long Beach: NO churches, NO retail, NO parking, hundreds more residents under the flight path.When faced with growing opposition to the LUE Plan [Long Beach Land Use Element]- the Bodek bureaucrats re-did their LUE maps to spread the density into the planned and balanced East Long Beach's 5th and 4th Districts.

In the Planning Commission presentation,  Bodek's staff looked to the church properties and called them underused. In the 4th District those underused houses of worship on the LUE map slated for high density housing include:
· Unitarian Church property on Atherton next to the small Botoun Creek Park: rezoned for 5 story condos or apartments.
· Bethany Church property on Clark next to single family residence- rezoned for 3 story apartments or condos
· First Church of the Nazarene on Clark next to single family residence- rezoned for 3 story apartments or condos
The church leadership contacted by LB4D had no idea about the LUE future plans for their properties.
In the Planning Commission presentation, Bodek's staff version of the future of East Long Beach retail would be on the bottom of five to six story residential buildings. The staff described the retailers on the bottom doing most of their business on-line- but giving "discounts" to the neighbors in the buildings above them.
Under the Los Altos Center plan, Bodek would leave a legacy to the City Council's of the future by putting hundreds of new residents in five story apartment houses directly under the flight path that goes over Los Altos Center South with jets flying literally just above their buildings.
4th District legacy properties are also targeted by the new maps. The Long Beach Playhouse property is on the Anaheim Corridor slated for 5 story residences. The architecturally significant Los Altos Medical Center, designed by architect Gordon Powers is slated for a 5 story residential re-zoning.
This is what Bodek's team has planned for East Long Beach retail redo:
4th District
· Los Altos Center North (Trader Joe's area) and South (L.A. Fitness/Lazy Acres): multiple five story condos or apartments
· Los Altos Center South (Hoff's Hut): multiple four story apartments/condos
· The Circle Center retail, Circle Porsche and Audi properties: 5 story apartments/condos
5th District
· Los Altos Gateway center (Kmart/Lowes): multiple five story apartment/condos
· Spring/Palo Verde retail centers : multiple 3 and 4 story buildings
· Town Center: Multiple six story condos and apartments.
The 4th District also gets increased density in its apartment communities. The well kept up and maintained Beverly Plaza-home to a CSULB mini-city- with multiple students living in two bedroom apartments in two story buildings is envisioned in the Bodek plan as SIX story apartment buildings-with the current parking situation.
The six story plan would continue to the apartments just north on PCH and the Traffic Circle."

See the original Long Beach 4th District Blog post on events at the August 17 Planning Commission meeting.  And thanks to the Facebook post by concerned citizen Michele Klein

The Powerful Effect of Clutter

A search on these words pulled up pages and pages of references on Google, which claimed over 7 million results.

According to these, there are psychological results, medical effects, happiness impacts, how it decreases productivity, how it affects your brain, the list goes on and on.

You can solve your clutter problems by getting a coach, getting therapy, using feng shui, stop overeating, clean off your messy desk, even using flower essences, or learning to overcome hoarding. You can stop buying stuff you don't need--it could be that simple. But we live in a society that manufactures more and more for us to take home, just look at the cargo containers arriving at the port before Christmas, where we associate buying with bringing happiness or fulfillment.  

Really, what is clutter? Merriam-Webster dictionary says: "to fill or cover with scattered or disordered things that impede movement or reduce effectiveness, a room cluttered with toys," or according to Oprah: "Clutter is anything that stands between you and the vision you have for your best life."    It's stuff you keep accumulating, bring into your environment, and don't find a place for it where it's out of your way until you really need it.  It's stuff you really don't have a purpose for, and haven't used or no longer use. Yes, there have been studies done, article in journals, all about people with messy desks or messy lives, but how long do you need to sit around and analyze and rationalize this? Don't you  really want to be more effective, and move freely?

It's time to get on top of things, literally.  It's time to stop denying that you have too much stuff, that you have lost control of keeping order in your own home.  Admitting you have a problem is the first important step, where have you heard that before?

When does this become a problem in the real estate world?  When people decide to sell their homes.  To put off the pain of parting with objects, they tell themselves that buyers actually want to come in and view all their stuff, all the while trying to see past it with the ultimate purpose of really finding a home they can love with their stuff in it.  This is not how it really works. All that clutter (to you, precious objects, to them, clutter) is a huge distraction for them, they don't know what to focus on as they look around this house.  And all your possessions are a distraction to you, it's a big job to decide about all those things, it's stultifying, and you can get locked in a quagmire. But you can manage it.

I don't know which method of decluttering will work best for you, but choosing one and following it will eventually lead you to a less complicated existence, which  I believe is a more rewarding way of life.  Try donating, having a yard sale, or going around your house and marking things that you will allow to leave you with a sticky, and then eliminate those things. Search for recycle centers in your area, or donate your car.  Other people may be helped by what you are ready to let go of.

When you make more space in your home, you make more space in your life where new and interesting experiences are allowed to enter.

If you're thinking of selling, please contact me, we can review the entire process to make it as painless as possible.

What Are Appraisal-Free Mortgages? Starting Soon

Fannie Mae (Federal National Mortgage Association since 1938) and Freddie Mac (Federal Home

Get good grades and you get an easier loan

Loan Mortgage Corporation since 1970s) are both government sponsored enterprises (GSEs).  Freddie Mac "buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market." (Wikipedia).  Fannie Mae's "purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS), allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally based savings and loan associations (or "thrifts")." (Wikipedia)

So in other words, both entities buy back mortgage loans to resell to investors.  In order to do that, mortgage loans made to new home buyers through various lending institutions are often completed under the guidelines of either or these two entities. 

The appraisal process is a key feature or the mortgage loan process, as the loan must be shown to be a good risk for the price agreed upon between buyer and seller, but that appraisal has often been a source of contention especially when market prices are moving up  rapidly. In addition, changes to the mortgage loan process in recent years has lengthened the time taken for many loan to get completed due to new lending guides required by the Consumer Financial Protection Bureau to protect borrowers.

So, beginning in 2016, certain refinance mortgages by Fannie Mae were approved for "appraisal free" loans.  Now, both Freddie Mac and Fannie Mae are jumping onto the bandwagon to offer mortgage purchase loans with internal automated appraisals which may save 10 days off escrow time and $500 to the borrower.

But this will not work for every borrower--the automated process will look at the borrower's loan-to-value (lower loan is better), the borrower's FICO scores and other determining factors about their application in order to determine the eligibility for the appraisal-free process.  Does this mean there's no calculation on the value of the property? No, because "Collateral Underwriter uses statistical models and algorithms built on a database of over 26 million appraisals to evaluate appraisal quality and drive greater confidence in the valuation of properties securing the loans acquired by Fannie Mae." 

So given that application and property value targets are met in this process, the buyer may obtain a Property Inspection Waiver on properties with low loan-to-value ratios. See Housing Wire
article. Fannie Mae does believe that the majority of mortgages will still require a traditional appraisal, however, for the right buyer, appraisal free transactions will ease their property purchase!

Average Selling Prices in Long Beach, Cerritos, Lakewood, and Orange County, July 2017

 

Prices are still going up, and here's what they look like locally.

For a single family detached home, the average prices in this group range from $586,928 to $1,003,739, which represent increases between 1.3%-13.2% over June prices.

Overall the Los Angeles County average price for single family home is $956,939, an increase from the previous month (the median price is $610,000 for July).

All these prices are for the month of July, 2017, based on data from CRMLS.

Orange County as a whole has slowed to just over 1.3% from last month while Los Angeles County as a whole increased over 11% in July.  The areas with more lower priced homes (relatively speaking) are seeing bigger increases than Orange County, with overall higher priced homes, with a smaller percentage increase.

July 2017

Long Beach
$705,682 | +13.2%

Lakewood
$586,928 | +12.1%

Cerritos
$757,438 | +4.5%

Los Angeles County
$956,939 | +11.0%

San Bernardino County
$355,603 | +3.1%

Orange County
$1,003,739 | +1.3%

How much higher will things go?  Unknown, but as long as the interest rates are lower, and buyers are able to find sources for down payment funds, the end is not in sight according to many market experts.

If a buyer were interested in the average selling price of $350,000 for a house, then San Bernardino County (average at $355,000 in July) and the Inland Empire would be the place to search in Southern California, and Northern California in many counties, excluding the Bay Area, would hold some similar opportunities.

For an online and automated home valuation, try my site at http://www.juliahuntsman.com/home-evaluation.  It probably works more accurately for single family homes than condos in some areas, depending on what properties lie within about a one-mile radius.  Try it!  And I am always happy to do a more customized report to send out via e-mail.  If you're thinking about making a move, do it! The future is yours.

Who Is A Coterminous Owner? (Hint: Do You Have Trees on Your Property?)

Property owners are probably most familiar with the understanding that if part of a neighbor's tree branches overhang their property, they have the right to remove those branches back to the property line, and may cut roots also if doing so does not damage the health of the tree.  But there could be more . . .

overhanging branches

An adjoining homeowner wanting to cut back a tree is advised to obtain the services of an arborist (tree professional) beforehand, in order to avoid any trespass issues (the saw goes over the fence line), and/or cutting correctly to avoid the appearance that too much of a branch was cut off (it can curl back) which could result in an award of double or triple damages in court.  And next, coterminous owners of a tree, meaning a tree trunk that straddles both properties so both owners own the tree, are subject to the following:

"Neither coterminous landowner may remove a tree on a property line without the other's consent, nor may either land owner cut away any part that extends onto his or her land if by so doing the landowner injures the common property interest in the tree. Each owner has an interest in the tree identical with the part that is on his or her land and has a right to demand that the owner of the other portion use his or her portion so as to "not unreasonably…injure or destroy the whole." (Scarborough v. Woodill, 7 CA 39 P. 383 (2d Dis. 1907)) (Anderson v. Weiland, 12 CA 2d 730 (1936)."

 Should leaves fall onto the adjoining neighbor's property which are seen as a problem, that owner must prove in court that the tree owner is causing a nuisance.  It might be easier to clean it up yourself.  An overhanging tree that might topple onto a house may also have to be taken to court, so an adjoining owner should first get photos and help from an expert.

Is your tree shading an adjoining neighbor who has solar panels? The 1978 California Solar Shade Control Act put limitations on shading during hours of maximum intensity, and according to California Association of Realtors legal experts, the property owner there first determines who has to cut back their trees or not.

Should an owner of an encroaching tree put his/her property on the market, the appropriate disclosures must be made to the incoming buyer, including any ongoing dispute with a neighbor.  Such a dispute could be a potential obstacle in the sale of the property for some buyers--and make no mistake, if a seller does not disclose the issue before close of escrow, the neighbor most certainly will. 

Some people are really not that upset about tree issues from their neighbor, but just watch Judge Judy and you will hear the exceptions.  Just being a good neighbor and keeping your tree trimmed can alleviate many future problems!

For more information about these disclosures, please contact me, I will be happy to forward the entire article.

 

Home Safety Check - Things Every Homeowner and Renter Should Do

A home security breach is not a pleasant thing to experience, or even just think about.

Besides reviewing your home, condo or renter insurance policy annually for adequate coverage, and taking home videos or photos of possessions for your records, there are several essential things to do if you experience a break-in.

I once knew someone who always rang his home doorbell before entering after being away for a period of time, thinking this would alert someone who might still be in the house, give the burglar a chance to get away and avoid a personal confrontation. This assumes there is a window or back door through which an uninvited visitor could escape. But if it already looks as if a break-in has occurred, call the police first.  If you have prior documentation on what was taken, your job will be much easier.

Protect yourself against being a target, by doing the following:

• Automatic timers on lights and radios, especially when away.
• Always keep your garage door closed
•  Do not leaves notes on the door for anyone or leave newspapers in the driveway (this can be a problem sometimes when newspapers decide to give you a free promotional newspaper while away, so have someone remove your throwaways); keep your landscaping maintained.
• If home is new, change your locks when you move in.
• Insert steel rods into track of sliding doors.
• Install impact-resistant glass for windows
• At a minimum, install deadbolts on all doors (be sure they do not require a key from the inside).
• Arrange for removal of trash receptacles from the street.
• Forward your calls to another number that is answered while you're away--a no-answer call can be a tipoff that no one is home.
• Ask a relative or friend to do a drive by while you're away.
• And, if you're home during the day, keep your doors and windows locked especially when you are at the back of your home. Don't assume you live in a perfectly safe area, because opportunists can be anywhere at any time.

Wire Fraud in Real Estate Is An Unfortunate Fact

Don't be a victim of wire fraud and lose your mortgage money.  This has happened, right here in Southern California, and it can cost everyone involved.  Here is how one article by Colleen Tressler on the FTC website explains it:

"The Federal Trade Commission and the National Association of Realtors® are warning home buyers about an email and money wiring scam. Hackers have been breaking into some consumers’ and real estate professionals’ email accounts to get information about upcoming real estate transactions. After figuring out the closing dates, the hacker sends an email to the buyer, posing as the real estate professional or title company. The bogus email says there has been a last minute change to the wiring instructions, and tells the buyer to wire closing costs to a different account. But it’s the scammer’s account. If the buyer takes the bait, their bank account could be cleared out in a matter of minutes. Often, that’s money the buyer will never see again."

 So, real estate professionals including Realtors and escrow companies are now explaining how NOT to have this happen.  Although I recently attended a talk given by an FBI official who stated Gmail is actually pretty secure, there is also a two-step verification process in Gmail which makes emails much more secure.  And now, escrow companies are not taking or sending out wire instructions via ordinary email but instead using alternate methods to send instructions to clients in escrow.  A general warning to anyone in an escrow is to know who you are dealing with and to not accept emails as described above. Responsible escrow companies are now giving instructions in advance, and Realtors are advising their clients.  Any site that financial information goes through should have a "https" configuration in the browser bar.

IMPORTANT NOTICE: Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. Never wire money without double-checking that the wiring instructions are correct.

Any suspicious sources should be reported to the Federal Trade Commission.

Average Selling Prices in Long Beach, Cerritos, Lakewood, and Orange County, June 2017

Prices are going up, and here's what they look like locally.  For a single family detached home, the average prices in this group range from $575,786 to $770,826, and for overall comparison to Orange County at over $1 million, they're obviously somewhat lower.  Overall Los Angeles County average price is $918,450 (the median price is $632,000 for June).  All these prices are for the month of June, 2017, based on data from CRMLS

One characteristic to note is that Orange County as a whole has increased just over 4%, Los Angeles County has a whole has increased over 9% in June.  The areas with more lower priced homes (relatively speaking) are seeing bigger increases than Orange County, with overall higher priced homes, with a smaller percentage increase.
How much higher will things go?  Unknown, but as long as the interest rates are lower, and buyers are able to find sources for down payment funds, the end is not in sight according to many market experts. The Federal Reserve, however, is expected to raise rates one more time this year.

"But while interest rates will increase to an estimated 5% by the end of 2018 and 6% by the end of 2019, most economists expect home price growth will also slow to between 2% and 4% once rates begin to rise."

If a buyer were interested in the average selling price of $350,000 for a house, then San Bernardino County and the Inland Empire would be the place to search in Southern California, and Northern California in many counties, excluding the Bay Area, would hold some similar opportunities.

For an online and automated home valuation, try my site at http://www.juliahuntsman.com/home-evaluation.  It probably works more accurately for single family homes than condos in some areas, depending on what properties lie within about a one-mile radius.  Try it!  And I am always happy to do a more customized report to send out via e-mail.  If you're thinking about making a move, do something besides stare.

Long Beach and Los Angeles County Selling Markets for June, 2017

It's an ever declining inventory in California.
For all of Los Angeles County in May, the median house price was $600,000, vs. $555,000 in May 2016.  Yet the sales volume decreased by 30% in that time period.

The California statewide median home price continued over $500,000, as the competition for lower priced homes keeps pushing the overall trend upward.  The number of active listings has decreased by over 13% compared to one year ago.

In Long Beach, it's a similar story. New listings are down over 7%, pending sales down almost 40%, and days on market are less than 50% of last year, but median and average sales prices of single family homes are up 5% and 6%.   The inventory is less than 3 months supply. And the list-to-sell ratio is often at 100%, or higher. In the last 30 days, only 211 single family homes sold in Long Beach, and average days on market was 26 days, with an average closing price of $701,000, per the MLS, at a los $275,000 to $3.5 million.

Yet, sellers must be reminded that unless they have an all cash buyer, current financing regulations dictate certain conditions for the borrower, and ultimately for the seller.  And buyers expect a well-prepared property. Favorable for everyone is that fact that mortgage rates continue to be low at this time.

If you're thinking of selling, please contact me for a competent estimate of market value of your home! Or go to www.juliahuntsman.com for a quick automated estate give to you online.

Long Beach Concerts and Summer Places to Go

The Long Beach Municipal is in its 108th season; Long Beach is one of the few cities which has its own municipal band!

Concerts
June 27 - August 4. Concerts begin at 6:30 p.m. Free. No concert July 4.
Tuesdays: June 27 & July 11 @ Whaley Park, July 18 & 25 @ Bluff Park, August 1 @ Veterans Park
Wednesday: June 28 - August 2 – Los Cerritos Park
Thursdays: June 29 - August 3 – Marine Stadium
Fridays: June 30 – August 4 – El Dorado Park West

See the concert information for the summer.



Visit the Historic Ranchos:

Based on early adobes located on what were the early land grants from Mexico, these became part of one family's history in the area.  They are now owned by the city of Long Beach. They are great family places to visit, with docent tours, children activities and arts programs.

Rancho Los Alamitos
Rancho Los Cerritos


Visit Aquarium of the Pacific  - In downtown Long Beach for family fun -- tours, animal encounters, and educational activities of all types for everyone.


Harbor Breeze Cruises - https://www.facebook.com/cadinnercruises/ and https://www.facebook.com/harborbreezecorp/.  Daily boat trips out of Long Beach Harbor that offer many opportunities for marine life watching!

Find more places to visit at http://www.juliahuntsman.com/beach_cities_links.html

What About Holding an Open House in a Tenant-Occupied Property?

When a landlord decides he/she is selling a tenant-occupied property, there are certain requirements on both parties. The landlord has the right to sell the property and find a prospective purchaser

under normal and customary market conditions of the area, and that usually includes open houses and prospective buyer visits to the property with proper notice. Tenants are understandably not anxious to participate in the selling process, but landlords and their REALTORS have certain tools for handling the situation.

The law permits a landlord to hold open house, since a 2013 decision in Dromy v. Lukovsky which allows open houses on weekends with "reasonable" notice.  This case said that there should be no more than two a month, and 10 days advance notice should be given to the tenant.  The tenant may propose alternate days within 48 hours of receipt, which the landlord should consider.  The judge in the above case approved an open house on either a Saturday or a Sunday from 1:00 pm to 4:30 pm.  The agent must be present, and the tenant may be present.

If a tenant is not cooperative with these terms, a landlord should try writing a letter (REALTORS have sample forms also) explaining possible eviction, costs and attorneys fees and a possibly a negative credit report entry from the entire process.

Another method is to provide a 3-day notice to quit (check with your REALTOR).  The landlord may have to consider eviction if neither of these work.

However, many tenants do see it in their own best interest to cooperate because an income property may be sold to another investor who would like to retain good tenants.

For more specific information on this issue, please contact me via email on best procedures to follow when listing your income property with tenants.
Lic #01188996

Sales in Los Angeles County: Prices Still Continuing Upward in 2017

The median price of an existing, single-family detached Los Angeles County home rose in April 2017 to $595,000 from $570,000 in March. The March 2016 median price was $542,000.  All data comes from CoreLogic. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

The median price of an existing, single-family detached Los Angeles County home rose in April 2017 to $595,000.

But while prices are going up in the County as a whole, sales volume has decreased in the Spring:
the number of single family homes sold in April 2017 was 4,524; in March, 2017 it was 6,051; in March 2016 homes sold was 6,329.  This is a lower but similar sales volume compared to the same time last year.

The 2017 sales volume for Orange County is a similar picture, but with much lower sales numbers: total SFR sales thus far are 1772 and 2469 for April and March, respectively, with median price at $745,000 for both months.

Less inventory means much more competition for buyers in Long Beach.  In the past month, the lower price range under $500,000 sells on average in 25 days on average (overbidding and multiple offers is common), while properties in the $1,000,000-plus range are on the market for 62 days on average.

While housing prices continue upward, housing affordability in California is increasingly a topic of concern.  Another indication of housing prices is that investors are buying fewer single family and multi-family properties.  California Association of Realtors 2016 California Investor Survey found 10 percent of real estate investors purchased more of the other types of properties, such as commercial, land, and mobile homes, in the past year compared to previous years.

Lack of inventory continues, especially in Southern California, and is still an issue for sellers who want to move on--but for those moving out of the area, or for those who have all cash for a purchase, the ability to move on may be much easier, and would bring more housing inventory onto the local market for sale. From that standpoint, it's a good time to sell while interest rates are still low. 

Please contact me for a customized report on home value for your property! And while most people are little uncertain about them, reverse mortgages as a new purchase can be a good purchase tool for the right buyer 62 and over.
 (See the 2016 post on this:  https://longbeachrealestate.blogspot.com/2016/04/sales-volume-in-los-angeles-county-is.html)

Long Beach's Past: The “Cougar” Countess and Long Beach’s Blackstone ...

Long Beach's Past: The “Cougar” Countess and Long Beach’s Blackstone ...: 

Postcard Long Beach History Collection

Here is the fascinating history of the Blackstone in downtown Long Beach, written by my friend Claudine Burnett, formerly a librarian for the Long Beach Public Library system.  The Blackstone, located at 330. W. Ocean Blvd., was at one time a hotel and is now an apartment building which was granted landmark status.

Built by a woman who had inherited wealth from her first husband, she was one of the many people who came to Long Beach in earlier decades and left her mark on local architecture.

 Excerpt: 

"What did this new property Kate now owned look like inside? 

 "The Blackstone had 70 rooms on the second and third floors and 75 apartments on the other floors. Rooms and apartments were finished either in mahogany or ivory.  On the second floor there was a ballroom (dancing was held there every Saturday afternoon and evening), billiard and card rooms. Each of the 8 floors had a sun parlor. Furnishings included floor lamps and table shades and over-stuffed furniture.   In the basement there was a garage for 75 automobiles, shower and dressing rooms for the use of guests returning from the beach. It was quite a luxury to be able to step from one’s car, catch an elevator and go directly to one’s apartment or hotel room. Single apartments rented from $85 to $150 ($1200-$2,120) per month; double apartments $165-$225 ($2330-$3,180) per month; a room started at $2.00 ($28.30) a day.  It opened for business on July 1, 1922."

 

Long Beach's Past: The “Cougar” Countess and Long Beach’s Blackstone ...: Postcard Long Beach History Collection

A Time to Sell in Long Beach Real Estate

 

Whether you have a condo, house or residential units (1-4) that you use for income property, I can help you with market value, seller disclosures, and capitalization rates and market rental rates on income property.

"It takes all kinds of sellers for all kinds of buyers", and in a city with such diverse housing opportunities, there are buyers for every part of town.  Contact me or look at my website www.juliahuntsman.com.  See more at NewsReal 2017 and Realty Times.

Being a Prepared Buyer in a Seller's Market

I am encountering, over and over, a situation where a buyer contacts me to see properties, but I have no information about this person at all.  Besides some safety issues that could be involved, and precautions I must take, I otherwise have no information about what kind of fit, financially and otherwise, this person actually is for the property he/she is interested in.

It seems that it can never be said enough that in this very tight market, the buyer must be prepared.  How can a Realtor take a buyer to show properties without having information? Very few buyers prepare themselves before contacting me to see a home.  If they contact me because they don't know where to start and are looking for a Realtor's help, then that is exactly what I'll do, which means getting started with loan pre-approval while getting to know their hopes and aspirations about what type of home they would like, and then fitting in their loan scenario with homes available to show.

Here is the mantra, as very well stated by a Realtor in New York:

“Time kills deals,” says Andrew Sandholm of BOND New York Properties in New York. “Dragging your feet means you could wind up paying more in a bidding war situation or missing out on the property altogether.” Buyers need to be ready with their paperwork, such as bank statements, a preapproval letter, and documents supporting proof of funds, from the day they begin house-hunting mode. That way they can pounce quickly with an offer when they do find a home they like.

Yes, folks, time kills deals.  You think you won't find something right away, and that you're not prepared.  So think at a minimum:  LOAN PRE-APPROVAL, PROOF OF FUNDS whether financing or all cash, and PRE-APPROVAL LETTER.  These things should be available at a moment's notice, and please keep in mind that providing this documentation to your Realtor is a normal part of your home search, and next, it's required in the contract.  Realtors do much much more than get the door key out, they make sure that you eventually get the key to the door you want.

You may believe that you have have plenty of time, but I know better. You think you're not ready to buy yet, and you're right if you've done nothing to prepare.  But you may also be wasting your own time.  Your Realtor has the ability to help you find the right home, but you're wasting that Realtor's professional expertise if you don't do these basic things.

This is a multiple offer environment for many homes in multiple cities and states, and while I've never thought it wise for the buyer to waive all their usual contingencies in order to beat out another buyer, it's important for buyers to present a very reasonable offer.  The article about making an offer states very good points to keep in mind for buyers.

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.  

Which Projects Are the Right Ones for Your Home?

When selling or buying, it's always good to think about remodel or fixup projects and how they fit with the home.  The return may vary with the region in the country, but there is a trend on what used to bring higher returns which may be lower now.  For instance, garage door replacements didn't used to be at the top of the list, but as kitchen remodels have become more common, other home features are getting more attention. For instance, vinyl windows are, in my opinion, a good investment whether house or condo--they block noise, keep a home better insulated and add attractiveness.

Long Beach Market Prices for Houses and Condos Feb. 2017

Long Beach prices Feb. 2017

The average sales price for a house in Long Beach in February was $672,000 (an increase of 7% over same time last year); the average price for a condo was $413,000 (an increase of 8% over same time last year.)

What is going to happen to interest rates?  For a while they were predicted to go up to 5% this year, but today (Friday), they are 4% or 4.125% depending on the loan level for conventional loans, and 3.75% or less depending on loan level for FHA/VA loans.  What will happen in the future depends on a lot things that are currently going on in Washington DC, and predicting the future is not a sure thing.

One of the biggest problems is still lack of inventory, as one can see on this report, it's gone down from last year (it can't get much lower, by the way), and it's not just the case in this city, this is across the board.  This has made the market get much more competitive (who thought it could get worse?), and the days on market figures are showing that, less time on market means the properties are getting snapped up faster and there are multiple offers.  The chart shows average figures, they vary greatly according to price range and location.  A $450,000 house in excellent showing condition will not last, but the $1,000,000+ range offers more selection and more time: there are 75 active listings in CRMLS in Long Beach over one million, and days on market is also 75.  Apparently, in Arcadia, per a conversation with a fellow Realtor this morning from that area, it's the $5,000,000 properties that are hot and moving fast.  Every market is different.

Lakewood: Average SFR selling price - $546,000; Condo $401,000.
Cerritos:  Average SFR selling price -  $743,000; Condo $335,000.
Huntington Beach: Average SFR price - $906,000; condo $510,000.

If you're thinking of making a change, please contact me

Help for Buyers Who Want a Condo

California Association of REALTORs Housing Affordability Fund’s Homeowners Association Grant Program will provide qualified first time California homebuyers up to six months of HOA dues, not to exceed $2,500.  C.A.R.’s Housing Affordability Fund has allocated one million dollars towards this program.

How to  qualify?
• Homebuyers must use a California REALTOR® in the transaction (REALTORS® must apply on behalf of their client)
• Purchase a primary single family residence* in California with the intent to occupy the property as your primary residence for 2 years
• Be a first-time homebuyer*
• Buy a home with applicable HOA dues/fees
• You must have used financing to purchase the single-family dwelling
• The purchase price of the Single-Family Dwelling* must not exceed 150% of the mortgage limit set by the FHA for one-family units in the county in which the Single-Family Dwelling* is located

Please note: HAF must receive all program requirements no later than thirty (30) days after closing escrow.
Want to know more? Please contact me by phone or email

New Credit Reporting Policy Change May Affect Many Consumers Positively

Equifax, TransUnion and Experience will, as of July 1, 2017, require tax lien and civil judgment data to contain three of four information requirements in order for that information to be included in an individual's credit report.  The consumer's name, address, and either a social security number or a date of birth must be included, and current data not reflecting that information will soon be removed from credit reports.  According to Mortgage News Daily, many liens and most judgments don't currently include that information, and their removal, although sparking a controversy, will probably be viewed as happy news by many consumers.  Already, other types of negative data have been addressed in settlements of lawsuits:

It appears that the changes announced by the credit reporting companies are at least partially in response to a recent report from the Consumer Financial Protection Bureau (CFPB). 

* * * *

The Wall Street Journal reports that settlements of lawsuits brought by various states have already pushed the credit reporting companies to remove some categories of negative data from reports such as information related to library fines and gym memberships, and required changes to the timing of medical collections information.

The net effect is that many consumers will have an increase in their FICO score, perhaps an upward boost of about 20 points.

Take Advantage of Tax Savings if You're Moving to Another California Residence, Prop. 60 and Prop 90

Long Beach Queen Mary

Thinking about moving, possibly away from familiar sights? If so, some advance planning might help you to take advantage of one of these two propositions which may grant some considerable property tax savings.  **See 4/12/17 update below**

As of June 5, 2015, the following eleven counties in California have an ordinance enabling the Prop. 90 intercounty base year value transfer (CA State Board of Equalization source):

Alameda, Orange,San Diego, Tuolumne,El Dorado, Riverside,San Mateo,Ventura, Los Angeles,San Bernardino, and Santa Clara.

Proposition 60 allows transfers of base year values within the same county. Proposition 90 allows transfers from one county to another county in California and it is the discretion of each county to authorize such transfers. The County Assessors will require a copy of the tax bill from the other county and a copy of the applicant’s birth certificate to be included with the application. Also, include a copy of the grant deed for the new purchase and a copy of the closing statements of both sale and purchase.

Eligibility:

The seller of the original residence, or a spouse residing with the seller, must be at least 55 years of age as of the date that the original property is transferred. The replacement property must be of equal or lesser “current market value” than the original.  See the Los Angeles County Tax Assessor website for specific information on equal or lesser value. The base year value of the original property cannot be transferred to the replacement dwelling until the original property is sold.

The replacement property must be purchased or newly constructed within two years (before or after) of the sale of the original property. The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.  This is a one-time only filing. Proposition 60/90 relief cannot be granted if the claimant or spouse was granted relief in the past. The taxpayer is not eligible for the tax relief until they actually own AND occupy the replacement dwelling as their principle residence.

Update April 12, 2017 from California Association of Realtors State Legislative Weekly Update:

AB 1322 (Bocanegra) Property Taxation: Intercounty Base Year Value Transfers - Under Proposition 60, homeowners 55 years of age and older can currently transfer the base year value of their home to another home located within the same county. In addition, under Proposition 90, these same homeowners can transfer the base year value of their home to another county if that county has opted into the Proposition 90 program; however, only about ten counties have elected to do so. C.A.R. supports AB 1322, which remedies this situation by allowing homeowners 55 years of age and older to transfer their property tax base year value to any other county in the state if the companion constitutional amendment, ACA 7 (Bocanegra), is approved by the voters. AB 1322 passed out of the Assembly Revenue and Taxation Committee this week. 

Easing The California Housing Demand: A New California Law for Adding Second Units

Signed into California law last year, effective January 1, 2017 is a statewide law allowing the creation of 2nd units, not exceeding 1200 square feet, in otherwise single family and multifamily zones.  This bill, AB2299 (Bloom) imposes a state-mandated local program, and which deletes previously existing additional space parking requirements.  Existing driveway parking may now meet the parking requirements under this law.  This is significant for some property owners who had the space to build a unit, but did not have a large enough lot to meet new parking requirements as well.
Now referred to as Accessory Dwelling Units (ADUs), there are certain guidelines that a local agency may create but which may not be more restrictive than the new law, including the following:

• The unit is not intended for sale separate from the primary residence and may be rented.
• The lot is zoned for single-family or multifamily use.
• The accessory dwelling unit is either attached to the existing dwelling or located within the living area of the existing dwelling or detached from the existing dwelling and located on the same lot as the existing dwelling.
• The increased floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing living area.
• The total area of floorspace for a detached accessory dwelling unit shall not exceed 1,200 square feet.
• No passageway shall be required in conjunction with the construction of an accessory dwelling unit.
• No setback shall be required for an existing garage that is converted to a accessory dwelling unit, and a setback of no more than five feet from the side and rear lot lines shall be required for an accessory dwelling unit that is constructed above a garage.
• Local building code requirements that apply to detached dwellings, as appropriate.
• Approval by the local health officer where a private sewage disposal system is being used, if required.
• Parking requirements for accessory dwelling units shall not exceed one parking space per unit or per bedroom. These spaces may be provided as tandem parking on an existing driveway.
•  Off­street parking shall be permitted in setback areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions, or that it is not permitted anywhere else in the jurisdiction.
• When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, and the local agency requires that those off­street parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts.
• The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth.

 This is a chance to ease the housing situation for family members, or for someone to add on a second unit for income without having to purchase a new property.  It's especially helpful for those who want to live individually in a residential area, i.e., Belmont Heights in Long Beach which already hosts some older residential properties with units, without the ambiance of a large apartment building.

Update July 22, 2017:  The City of Long Beach is still in the process of developing the code requirements that must match these units (i.e., fire and safety, certain construction requirements, etc.), but has also made ineligible building ADUs in the City's parking impacted zones.  The map for these zones is available on the City's website.

 

How Do HOAs Work?

When you purchase a home, there's a good chance you'll have to pay a homeowners association fee, especially in gated communities, townhouses, condominiums, and other similar planned neighborhoods. The idea is to keep common areas clean and maintained for the benefit of all, and there's usually an HOA board of directors that is responsible for setting the rules and regulations, and carrying out the provisions of the CCRs--a foundation HOA document naming conditions, covenants and restrictions.
Each HOA is different, but most have the same core elements. Most associations employ a qualified professional property manager which assists the Board. You'll typically pay your HOA fees either monthly, quarterly, or annually, and the amount of those fees are an important factor to consider when you're weighing your options for a new home. Lenders, for instance, will need to know that fee amount as part of your purchase mortgage loan approval.

So what is typically included in your HOA fees?

First, the fun stuff Amenities are typically the big perk of living in a community with an HOA. While you lose out on some of the freedom of living without an HOA, you instead get community amenities like a maintained pool, gym, clubhouse, tennis courts, and other amenities. The HOA fees pay for cleaning and maintenance, so-in theory-you'll always have a clean pool whenever you want to use it.
Protecting the community HOA fees often contribute to insurance for the community amenities, as well as a  reserve fund for unexpected repairs to damaged community property--think damage from weather or accidents. California, for instance, requires a reserve fund which is typically contributed to at the rate of 10% of total annual income (usually the HOA fees paid by owners).
General maintenance Your HOA fees will go toward maintaining the general safety and upkeep of the community. This means things like elevator maintenance for condominiums, trash/recycling services, interior roads and other "common area" features as contained in the HOA documents.
Be active in the association There may be a board of directors voted into office by the owners, who are required by law to do certain things, but homeowners associations exist for the betterment of the entire community, and every voice matters. HOA meetings--and the amenities they support--provide great opportunities to meet your neighbors and make your community a better place.

For additional information on condo buying, go to http://www.juliahuntsman.com/condo-living.html

Housing Market and Inventory Shortage in Los Angeles County

Buyers still experience a great deal of competition when submitting offers. I know of one recent instance where an offer for a $450,000 house was submitted at $10,000 over asking, but the buyers were still outbid. This is and has been a very frustrating fact of life for quite some time.

 As it happens, Los Angeles County has far more jobs than new housing permits issued compared to any other county in California. Santa Clara and Orange Counties are the next most underbuilt counties. This did not happen overnight, but happened over several years, and estimates are that it will take several more years to "catch up".

 Other reasons for low inventory is that the Baby Boomer generation and/or longtime homeowners are not moving as much as in the past. The recession featured very low interest rates, or they may have lower property taxes, or if they move there may be a capital gains hit due to rise in prices ($250,000 for single, $500,000 for couple), there is the question of where can they move to, or their circumstances may have changed and they cannot qualify for the same mortgage today--so they stay put.

In California in the 1970s, there was about a 9% turnover rate, in 2014 that rate had declined to less than 5%. In 2000, California sellers stayed put for about 6 years (national average was about 7 years); as of 2016, that average length of stay was 10 years. Californians 55+ years of age are now at their lowest rate of moving -- 71% of the 55+ crowd has not moved since 1999. Data from the construction industry reveals $3.9 billion was invested in remodels and additions compared to $1.5 billion in 1988. In San Francisco alone, there are currently between 400,000 and 700,000 rentals that used to be owner-occupied, in other words, those are properties taken out of the purchase market. Another interesting effect is formulation of households -- not as many people getting married and wanting to buy a new home for a new family! Additional effects on the housing market could be future policy changes concerning the mortgage interest deduction and outmigration to more affordable areas (which at least might put some properties on the market).
Political uncertainties and Twitter bursts are essentially wildcards for certain aspects of the housing market.
 For buyers, is it impossible?  No, but it's extremely important to be prepared with local market knowledge, and prior loan approval before shopping.