Permitted or Not

May 31, 2007



Yesterday I wrote about the codes regarding home improvements that require a permit from the applicable building department. Pretty awesome as it seems almost any changes to a structure, the plumbing systems, the electrical systems,
the sprinkler systems, etc. require a permit.


The issue now for a seller and for a professional real estate agent who provides advice is how to fill out a disclosure statement that asks "Are you aware of any additions or alterations done without a permit?"


The best advice is disclose everything. What follows is the reaction of a buyer to these disclosures.


I have found that some buyers have more concern than others. Often a buyer who is not overly concerned about unpermitted alterations will be concerned about what will happen when they sell the property. For this reason, many buyers request the seller to have the work permitted prior to a close of escrow.

Most building departments will do an "as-built" inspection and either require changes or issue the "as-built" permit.


If you are considering making improvements to your property, you would be well advised to check with your local building department and, if a permit is required, go through the permitting process.

Is it Permitted?

May 30, 2007



Back in the old days (probably before 1970) "do-it-yourself" was popular. Homeowners converted garages, enclosed patios, covered patios and took out walls to create larger rooms. Back then, there were no disclosure laws and sales were pretty much "Buyer Beware".


In California in the early 1980s, the laws changed and it became necessary for homeowners who were putting a property up for sale to disclosure alterations and additions made without the necessary permits. Both property owners and real estate professionals had to educate themselves as to which additions and alterations required a permit.


I asked a building department official to give me a rule of thumb to use. Essentially he said that anything that had the potential to harm someone would require a permit and inspections to determine that it was properly built or installed.


Section R105.1 of the International Building Code states:

"Any owner or authorized agent who intends to construct, enlarge, alter, repair, move, demolish, or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert or replace any electrical, gas, mechanical or plumbing system, the installation of which is regulated by this code, or to cause any such work to be done, shall first make application to the building official and obtain the required permits."


Pretty comprehensive, isn't it? Does it cover installing a ceiling fan? or a new oven? It probably does. Best to keep track of those little improvements so they can properly be disclosed to a potential buyer.

Clean up Time

May 29, 2007



Hope you all had memorable Memorial Day holiday. Did you pause at 3 p.m. or sometime during the day to remember the deceased, the veterans and the friends and relatives? And did your family and friends gather for the traditional picnic and barbecue?



Now it is time for the clean up. A barbecue grill is usually cleaned just before grilling by brushing with a wire brush. This removes all the burnt on remains of your last party, but once in a while it is a good idea to really clean it.



Here's how:

Remove the cooking grates and soak them in warm soapy water.

If it is a characoal grill, brush out the insides.

If it is a gas grill, remove lava rock or metal flame shields to expose the burners.

Clean ou any residue around the burners making sure that the burner is in place when you are finished.

Clean the metal flame shields by soaking them in the soapy water.

Brush shields and grates with a clean wire bruch.

Spray with a cooking oil spray such as Pam. (Before putting the grill back together spray the inside surfaces.)

Put grill back together and allow to dry.

Pre heat the grill the next time you use it to make sure that all residue from the clean up has been removed.



Enjoy !

Memorial Day

May 28, 2007


Today we celebrate Memorial Day. Memorial Day, originally called Decoration Day, was officially proclaimed on May 5, 1868 by General John Logan, national commander of the Grand Army of the Republic. It was first observed on May 30, 1868 when flowers were placed on the graves of the Union and Confederate soldiers at Arlington National Cemetery.


In 1971, Congress passed the National Holiday Act to ensure a 3 day weekend for Federal holidays and in most states Memorial Day is the last Monday in May. Traditional observance has dimished over the years, but there are still services at many cemetery locations as the day is used to remember any and all dead, not just those fallen in the service of our country.


Memorial Day has also become a day for barbeques and picnics. Patios are spruced up and friends and relatives gather to enjoy a day of relaxation and outdoor activities.


I suggest that it would be great if we all would pause for the "National Moment of Remembrance". In December 2000 a resolution was passed which asks that at 3 p.m. local time, all Americans pause from whatever they are doing for a moment of respect and remembrance. I know I will participate. How about you?

Orange Show 2007

May 25, 2007


The 92nd annual National Orange Show Festival began yesterday, May 24, 2007 and will continue through Monday, May 28, 2007. As usual there will be rides, food, music and games. The citrus exhibit and the art show will be in the exhibit hall .


This year will include a "Salute to Our Troops" day on Saturday to honor men and women in the military. The military can get a voucher from their base and will be able to attend with their families for no admission charge. Without a voucher members of the military pay $5 all weekend. They will be required to provide identification.


Standard admission is $8 for ages 13 and older, and $5 for children ages 6-12. Children under 5 are admitted free.


The National Orange Show was begun to promote the citrus industry in the San Bernardino/Riverside county area. The location of the National Orange Show is at Mills and E Street.

Media Marketing

May 24, 2007

Real estate web sites and real estate TV shows are definitely proliferating, so says USAToday.com. It has been interesting to watch A&E's "Flip This House". Home sellers and agents learned how fixing up a house could increase its desireability and shorten the time it would take to find a buyer. The show had a seemingly great influence on prospective buyers and sellers and on professional real estate agents. Staging a home became a marketable skill.

The question has now ocurred "How much of these episodes were "real" and how much was staged?" This question is surfacing about the many other reality shows that have captivated the TV viewing audience. In the case of real estate, does the makeover really work or was the increased sales activity just part of an upward moving real estate market. However, the influence of these TV shows has definitely filtered down to the local real estate environment.

Then there is the web. You can google anything and searching for your dream home is no exception. New real estate sites are posted on the internet daily. Again, buyers are calling us because they saw an ad where they could get up to the minute information about listings and about foreclosure properties and tax sale properties. The web sites tell them that they can buy these properties at a bargain price.

Not just beacuse I am a professional real estate agent, but more because I have checked some of these media and web sites and found that they can be inaccurate. If you really want to purchase a home at the best price possible, find an experienced agent who works daily in the location you desire. That agent will be more knowledgeable about what is happening than a TV show produced somewhere else and a web site that is not located in the area or not even in the region.

A Background for Living

May 23, 2007

On my way to the office this morning, I heard an ad on KNX radio that was sponsored by the Califronia Association of Realtors. What caught my attention was the emphasis on what the is the real benefit of homeownership.

A home is the place where Johnny took his first baby step. It is the place where memories are made. It is the place where our friends come to visit us. It is the place where we hone our decorating skills and our gardening skills. It is a place where we set the rules of living and where we develop our style of living. It is more than a 1950's ranch or a 1920's craftsman. It is where we live our life.

Over time our housing needs may change and we may move on. But what is remembered about each house, is not that is was 3 bedrooms and 2 baths, but rather that our children grew up there, we had coffee with our neighbors there, the kids learned to swim in the backyard pool and
our stay in each house was a chapter in our lives.

This ad resonated with me. It is why I am a real estate agent. I believe that having a place to call your own, that fits your present lifestyle or the lifestyle you are seeking, is a desireable ambition. Finding a property that suits a client is the real challenge and the reward is sharing their pleasure.

For my family, at the end of the day, the fact that we made or lost money on the purchase and sale of our various homes is not the defining factor of our life. The memories made in each environment are what created the true value of our home ownership.

Things to do for the 3 day weekend

May 22, 2007

Bar -B- Queing is usually a big event for the Memorial Day holiday weekend. One of the most enjoyable things about homeownership is the patio picnic. It is not just Aussies who fire up the "barbie". Southern Californians love their outdoor patios. If you read the home sections of the newspapers or subscribe to home magazines, you have seen the trend to outside kitchens. Simple or lavish, there is somethng about these outdoor areas that help us escape the work-a-day responsibilities.

You still have time to clean up your outdoor furniture, go to the garden shop and purchase potted plants to pretty up the patio and purchase the characoal or gas tank. I know that these are chores that I will be doing this week before my family arrives for the picnic.

This sprucing up is even more desireable if your home is being offered for sale. People frequently buy for emotional reasons and picturing those great summer "barbies" is often enough to elicit the desire to own. My husband and I actually purchased our first Califronia home because we could picture all the fun times our family could have outdoors. Our Southern California weather is ideal for outdoor enjoyment. Few bugs, warm weather (but not too hot) and muss free cooking is a little bit of perfect!

No need to pack everyone in the car. Just invite your friends and neighbors. Throw the hamburgers, hot dogs and veggies on the grill and celebrate your good fortune.

What is a Wrap Around Loan?

May 21, 2007

It has been along time since an agent or a customer asked me to explain a wrap-around loan.
Perhaps buyers are beginning to write offers requesting that the seller finance a portion of the purchase with the buyer executing a note secured by a second deed of trust against the property. If the seller presently has a low interest loan that does not have a "due on sale" clause, the seller may prefer a wrap-around loan secured by an "All Inclusive Deed of Trust (AITD") .

An AITD incorporates an existing loan into a new loan in which the seller is the beneficiary.
For example: The sales price is $350,000. The existing first trust deed secures a loan with a balance of 275,000 that has an interest rate of 4.5%. The buyer has only enough cash to make a $20,000 down payment. The buyer and seller agree that the seller will carry back the difference of $55,000 but wants it to be in the form of a wrap-around loan secured by an AITD.
with an interest rate of 6.5%. The loan against the property upon which the buyer will be making payments will be in the amount of $330,000 at an interest rate of 6.5%.

The AITD will be recorded along with the Grant Deed. The Buyer will have full title to the property. In the event the buyer fails to make payments and goes into default, the foreclosure will be by trustee. Any future liens against the Seller will not attach to the property.

The buyer should make certain that the seller is making payments on the underlying first. It is important that both buyer and seller understand the complete ramifications of this particular form of financing. It can be beneficial to both parties, but it requires a full investigation of its terms and conditions.

So You Plan to Make a Move

May 18, 2007

I recently read a statistic that stated that 43 million Americans move each year. If you plan to be one of those movers, here are a few guidelines that might help remove some of the stress that can occur.

Moving is easier to cope with if you regard a move as a series of small tasks. Get yourself a notebook and start your "to-do" list. Have a file box or folder for all your important documents related to your move; what you are taking, what you are garage-selling, what you are giving to the Salvation Army or Goodwill. Go through each room and closet in the house and list the items and estimate their value. Moving is a great time to finally do the video or photos you always meant to do for your insurance records.

Your budget may well determine the method you will use to move. Will you be enlisting friends and relatives with trucks? Will you be renting a truck and doing all the packing and moving with the aid of your friends and relatives? Will you be using a professional moving company? Will your movers be packing for you or will you do all your own packing? Or, one of the more recent options, will you be using a "pod"? (A pod is a storage unit that is brought to your property. You fill it with your belongngs and then it can be transported by the pod company to your new home where you can unload it.)

In any move, a well compiled "to-do" list will give you a map to follow and will ensure that your move will have very few glitches.

First Time Home Ownership Programs

May 17, 2007

On May 8, 2007, U.S. Housing and Urban Development Secretary Alphonso Jackson announced that communities around the country will receive nearly $1.8 billion to promote HUD's affordable housing and first-time homebuyers programs. The total funding will support HUD's HOME Investment Partnerships Program (HOME) and American Dream Downpayment Inititative (ADDI) in Fiscal year 2007.

Of these programs, of interest to homebuyers is the ADDI which helps with downpayment and closing costs. Of late we have seen many offers which request assistance from the seller to pay a buyer's closing costs. Sellers who have already seen an erosion in the market value of their property are reluctant to deduct even more from their net proceeds making it difficult for a buyer to get an offer accepted.

In addition to the federal government programs, local communities may also offer homeowner assistance. Communities that have redevelopment agencies must set aside a certain amount of the tax incrment dollars to fund low and moderate housing programs. Redlands recently reinstated their first time buyer program. I had used it with buyers in the past and am happy to see the funds available again.

To learn more about both federal and local programs, call one of our loan reps at Financial 2000, 909-748-7110. In the Redlands' program up to $75,000 in assistance could be available. If you want to take advantage of the plentiful supply of housing, check out how you might qualify for this assistance.

April Showers Bring May Flowers

May 16, 2007

There were not a lot of showers in April and the wildflower blossoms are a bit scarce, but the nurseries are filled with beautiful and colorful plants.

Take your digital camera and photograph your yard. Next look at the pictures and choose the spots that could be enhanced with some colorful plants. (Of course your photos may show some of the devastation our deep freeze did. By now those plants should be showing green if they are still alive. If no green -time to replace them.) Then go to your favorite store and buy some pony packs and gardening gloves. Take them home and have a gardening weekend.

For those of you who have been offering your property for sale and have had no takers, adding flowers can often be the touch that attracts. The colorful and scented entry will create a positive feeling before the prospects enter. Fear and desire are the two emotions that either push prospective home buyers away from making an offer or push them to say "This is it!".

Fear has been a predominant emotion in the present real estate marketplace. Create desire with an inviting garden.

Time for a Garden Tip

May 15, 2007

If you are one of the persons who still does your own lawn mowing, here are some tips for a healthy lawn. Many lawns are mowed too short and/or with a dull mower blade. Higher cut grass provides a deeper root system.

Cut no more than one third of the grass blade each time you mow to avoid stress that will result in browning.

High mowing helps create a healthier lawn and helps block crabgrass and weeds.

You can safely leave clippings that will quickly decompose and add nutrients to the soil.

Change mowing patterns frequently to prevent compaction.

If you have the usual "Mow and Blow" gardeners, you might want to pay attention to how they are mowing your lawn. There is no reason for them not to follow these simple tips.

A lush lawn, green and trimmed will always improve the curb appeal of your home.

What is "Negotiating"?

May 14, 2007

In Webster's II New Riverside Dictionary the first definition given for "Negotiate" is " To meet and discuss with another in order to reach an agreement; to settle by meeting and discussing;".

In the real estate world, the parties to a negotiation are the buyer and the seller. The buyer would like to purchase the home that the seller is offering to sell. The seller would like to sell the home. The buyer's goal is to purchase the home at the lowest price possible and the seller wants to sell the home at the highest price possible. It seems to me that the negotiations are about what that "Possible" price will be. The challenge is to resolve the parties different perceptions about selling price through a process of give and take.

A good negotiation is not a shoot-out at the O.K. Corral. It is a process of discovery whereby a mutually agreeable selling price is determined. Most good negotiations have an element of fairness.

In the real estate world, the negotiations begin with a written offer from a potential buyer. Since we are no longer in a seller's market, sellers are learning that they must negotiate if they wish to consumate a sale. Buyers, however, are more likely to get the "lowest price possible" if they realize that the initial price offered needs to be good enough to entice the seller into a dialogue.

Professional real estate agents provide one of their most valuable services by guiding their clicents during this important process.

Make Your Hardwood Floors Shine

May 11, 2007

Over time, hardwood floors develop scratches. Some are tiny, some are deeper. With the new polyurethane finishes, the wood generally is less susceptible to scratching, but sometimes pets and furniture can leave marks.

If the scratches are not all the way through the finish, there are a couple of strategies you can try to make the floor shine like new.

1) Sand the scratched area with 0000-grade steel wool to blend the scratch into the surrounding area.
2) Use a smal brush and apply a small amount of polyurethane just to the scratch, keeping it off the surrounding area as much as possible.
3) Rub a small amount of paste wax directly into the scratch, using a clean, soft rag. Let the wax dry, then buff the area around the scratch.
4) Use a color-putty stick in a color that matches the floor. Rub it lightly into the scratch, then let it dry.
5) Use one of the commercial scratch removers available that work primarily by filling the scratched area and eliminating the reflected light from the area, making the scratch seem to disappear.

Try to repair in an unobtrusive spot such as a closet before tackling more obvious area.

If the scratch is through the finish and into the wood beneath, you may need to have a flooring contractor sand and recoat the floor.

Shiny and waxed hardwood floors lend a warmth and charm to a home that is desired by many
home seekers.

Property Sold for Unpaid Property Taxes

May 10, 2007

Last week, an agent asked me about purchasing property at the County Tax Collector's auction of properties with defaulted property taxes. The list of local properties had been published in the newspaper and on-line and the agent had a client who wished to purchase one of the listed properties. The sale was to take place May 14, 2007. However, anyone wishing to bid was required to register and make a deposit no later than May 8, 2007.

While it may look like a real deal and while there are TV programs and seminars that claim to show you how you can buy property for the back taxes, in my experience, the hype does not clearly reflect the challenges that such a purchaser may face.

If you want to pursue a property on the defaulted tax list, it is extremely important that you do your homework. First, go and look at the property. Then have a title company provide you with a preliminary title report. This report will show liens and easements. It may or may not show Mello-Roos assessments. It may or may not show any federal tax liens.

No warranty is made by the county and a purchase is made subject to whatever liens and zoning laws may affect the use and desirability of the property. The successful bidder assumes all liability and monies paid will not be refunded.

Payment must be made in full within 5 business days from the auction close. Acceptable forms of payment are Certified/Cashier's Check/Bank Money Orders, Cash or Wire Transfer all paid to the San Bernardino County Tax Collector's office.

Always remember "If it is too good to be true, it may not be true."

Planting Season

May 9, 2007

I was conversing this morning with a group of people who were commenting on trees. One person loves palms, another California oaks, another the London Planes, another Jacaranda. And so it goes. We probably all have our favorite trees. I know when we bought a new home, I planted 2 5' high Citradora Eucalyptus and told everyone they would hold my hammock someday. And sure enough, within 5 years, I lay in my hammock, smelling the fragrance of the Citradora.

When choosing trees for your yard, it is important to know how big you want the trees to become and how fast do you want them to grow. Smaller ornamental trees generally grow to 15 to 25 feet. Some trees will grow up to 40 feet tall. Some trees are beautiful, but messy. When choosing yard trees, you need to know what the trees will be like in 15, 20 or 30 years.

I am sure that you can find information on trees at the local growers and in library books. There are so many trees that do well in our Southern California climate. We can chose flowering trees, fruiting trees, evergreen trees, deciduous trees, palm trees and many varieties of each of these categories.

And trees are environmentally friendly!

Home monitoring

May 8, 2007

Perhaps some of you have seen Southwest Airline's ad with the gal at work showing her friends how she can check on her dog while she is at work. With her internet connection and a device installed at home, she is able to see in real time what happens while she is away.

This morning in the LA Times there was a little article that describes these home monitoring devices. With digital cameras and internet connections, the home security systems have come a long way from just being loud noisemakers when an intruder enters. It is no longer just banks and businesses that have camera surveillance. For a fairly minimal cost, you can have 24/7 visual monitoring.

According to the article in the Times, the basic start-up kit for the AT&T Remote Monitor which you can self-install, costs $99.95 with a $9.95 per month fee thereafter. Motorola offers its similar HomeSight service. The Easy Start Kit costs $99.99 and HomeSight's basic service is free monthly; two-way remote access requires a monthly fee. HomeSettings from Intermatic offers a home control system and start-up kit. This Web-based subscription service, whereby you can monitor your home from an internet connection is $14.95 per month.

The Times article also offers a CAVEAT. You must have a broadband Internet connection and standard text messaging rates may apply.

However, with your internet connection and your cell phone, you can check your home from afar.

Compare the 2007 Market with Past 3 Years

May 7, 2007

The following is based on information in the IMRMLS for the Redlands Area:

First Quarter 2007
142 sales - 34 sold at list - 18 above list - 90 below
Median price $415,000

First quarter 2006
165 sales - 57 sold at list - 27 above list - 81 below
Median price $385,000

First quarter 2005
228 sales - 65 sold at list - 45 above list - 118 below
Median price $340,000

First quarter 2004
180 sales - 63 sold at list - 37 above list - 80 below
Median price $290,000

These numbers show a slowing in the activity, but homes are still selling and price negotiations remain fairly normal. As you can note, the median price has continued to increase.

What are "Fixtures'?

May 4, 2007

Robert J. Bruss who writes a syndicated column and writes for Inman News, had a column reprinted from May 7, 2006 called "Decoding the law of fixtures". After reading it, I looked up the clause in the California Residential Purchase Agreement that references items included and excluded in the purchase of the subject property for which the offer is written.

In a broad sense, a fixture is something that is attaached and for which special fittings have been created. Sellers are advised by a professional real estate agent that if your chandelier is going with you, you should take it down and pack it away prior to showing your home to prospective buyers. However, in this day of built-in electronic appliances, controversies can arise.

The California Association of Realtors has added a clause #8B which attempts to clarify what will be included in the sale. It reads:"Existing electrical, mechanical, lighting, plumbing and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar systems, built-in appliances, window and door screens, awnings, shutters, window coverings, attached floor coverings, television antennas, satelite devices, private integrated phone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, mailbox, in-ground landscaping, trees/shrubs, water softeners, water purifiers, security systems/alarms and_______________".

For a good review of the law of fixtures, google "Law of Fixtures" and scroll down to the Robert J. Bruss article.

How Much to Offer

May 3, 2007

You've found a property that meets your needs and wants. You are ready to write up an offer. You ask your real estate agent "How much do you think the seller will take?" or "What should I offer?"

The flip answer to the first question is "The listing price." Real Estate agents , particularly if they are dual agents really cannot give a buyer a price that the buyer should offer. An agent can give the buyer the comparable sales and go over them with the buyer. Ultimately, however, the buyer must decide on an offering price.

What price a buyer will choose will depend on how badly the buyer would like that particular property. If a buyer is being relocated and must purchase a home and has found several that will do, the buyer is likely to write a lower offer than the buyer who falls in love with a home.

In my experience an off the wall low ball offer may be negotiated, but if it is too low, the seller will probably reject it. For a buyer to purchase at the best possible price, the review of comparable sales with a knowledgeable agent will answer the question of what to offer.

Response to Viewer's' Question

May 2, 2007

This question came Monday, April 30 and is the result of a viewer's specific situation . The viewer would like to know whether it will be possisble to transfer the Proossition 13 proprty tax basis from his home of 20 years to the new home that is under construction if the old home has decreased in value and it now looks as if the new home will have a higher value thus making it impossible under Proosition 60 to transfer his property tax basis.

This is an interesting situation and I would recommend that this individual consult his tax person. A visit with the county assessor might also be helpful as to how they interpret Proposition 60. A third source of information is to "Google" CA Proposition 60 which is what I did.

I clicked on "Proposition 60 Questions and Answers". While this is an article prepared by Sacramento County, it offers more detail than I found elsewhere. Question #2 h may be helpful.
The issue that I am most concerned about is whether the questioner is building the new home as a custom construction or purchasing from a developer.

I appreciate the question and look forward to receiving more details. In the meantime, I will continue to do some research.

What Escrow Is Not

May 1, 2007

Escrow is a neutral party which follows instructions from principals (buyers and sellers). It is a repository for documents and monies which are held until the terms of the purchase agreement have been satisfied. Once all agreed to terms have been completed, escrow orders the recording of the deed and pays bills and disperses funds as directed.

The escrow holder is not a transaction coordinator. The agent and/or the transaction coordinator are responsible to oversee other terms in the purchase agreement. Such items as the structural pest control inspection and completion of any work required to correct infestations are ordered by the seller, the agent or a transaction coordinator. The physical inspection is ordered by the buyer with the aid of the buyer's agent. Any repairs are negotiated outside of escrow. For any structural pest control work or negotiated repairs, bills may be submited to the escrow holder for payment at close of escrow. Bills submitted must be approved by the party whose funds will be charged.

The escrow holder never sees the property so it is important that the principals and their agents review legal descriptions and title reports. Escrow merely orders these documents based on the information that they have received from the written purchase agreement.

Escrows in California are vital to the processing of purchase agreements. Understanding who is responsible for carrying out each term of a purchase agreement will insure that last minute panics can be avoided.

Tomorrow: I will respond to some comments and questions from readers.