Real Situation Disclosure Question

January 31, 2007

Sellers of today's real estate MUST disclose everything that they know about the property that they are selling. Some 30 or more years ago it was "caveat emptor" meaning "buyer beware". As society became more litgious, the standard became one of total disclosure.

How does a seller decide what to disclose? The standard is: If you know something, disclose it; but what about repairs that have been made during your ownership of the property? The problem is now fixed, why disclose that it once existed?

For example: During a very hard rain, the roof leaked. You called a roofer who fixed it and it has has never leaked again. Do you disclose that the roof had a leak that has been
fixed?

Suppose you are very handy and you made the repair yourself and the roof has
never leaked again. Do you disclose?

The prudent answer is yes. When did it leak? Who made the repair? How was it repaired?
Let the buyer decide whether to have the roof checked out. Once a repair is disclosed, it becomes the buyer's choice to make further inspections.

Sellers often ask whether any and all repairs must be disclosed. It is always better to disclose. Fortunately the California Association of Realtors has designed checklist to assist Sellers in making the appropriate disclosures. A good reason to hire a licensed real estate agent to handle the sale of your property.

What should a seller disclose?

January 30, 2007

When listing a property with a licensed real estate agent, a seller will be given a plethora of disclosure forms to complete. Most of these forms are check lists that require only a yes or no answer. However, for every "yes" answer the form will require some explanation. Sellers often ask how much detail is required.

In our litigious society, more is better than less. No matter how trivial the issue might seem to the seller, it might be of great concern to the buyer. A real estate agent should always encourage disclosure.

In an e mail newsletter I received today from Barry Stone at Inman News, he responds to a sellers inquiry: "...Beside our house is a large Dutch elm tree. It is diseased and will probably die in a couple of years....Should we tell them(the buyers) about the tree or just let them enjoy it until it needs to come down?"

Barry's response: "...it is never wise to withhold or abridge real estate disclosure. There are buyers out there who would sue over the loss of a tree with an undisclosed disease. So play it safe and disclose everything you know about the condition of your property....The answer to all disclosure uncertainties consists of three simple words: disclose, disclose, disclose. Allowing one exception to this basic rule invites further exceptions. It is a slippery slope that leads to costly liability...."

The California Association of Realtors has developed very detailed questionaires to aid sellers in making a complete disclosure. It is always our goal to assist a seller in reducing non-disclosure liability.

What's on your mind?

January 29, 2007

Do you have questions about real estate? We have set up this blog to give information and to respond to the public's questions. We are one month into 2007 and many, many articles have been written by the media concerning real estate trends. Which do you believe? And why?

Our agents are, in fact, doing business. We are educating ourselves concerning trends and concerning the new laws that affect the buying and selling of real property. Just click on the comment button and post your opinions or you questions. We would love to hear from you.

How do those market statistics affect my sale?

Janaury 26, 2007

Well, today the newspapers and talk radio are full of the latest statistics on the real estatae market. In California, you can read, county by county, whether home prices increased or decreased in December. Generally speaking (always deceptive when its "general") prices decreased and unit volume decreased. However, in our 2 county area (Riverside and San Bernardino counties) the medium price of homes in December increased.

Yippee, yell sellers. But, why is my agent telling me I must reduce my asking price if I want to sell?

The time honored way to come up with a market value for an individual home has always been to look at comparable homes. What makes a home comparable? Location, size, condition and amenities. A potential seller can hire a local ( and I stress local) appraiser to do a professionanl appraisal or a seller can call one or more professional real estate agents to do a "Market Anaysis". A knowledgeable real estate agent who is active in the local market will have a grasp of what properties are actually selling and should have first hand knowledge of the condition of those properties both exterior and interior. Review these analyses and select the best possible price that will make your home competitive in the market.

The number of sales has declined significantly and if you truly want to sell, you must be priced competitvely. It will not really matter whether the sales in the county are up or down, if you have "value" which a potential buyer can recognize.

Make your Decision

January 25, 2007

A home is probably the largest investment in most people's lives. For that reason, many prospective homebuyers are fearful of making a decision to purchase. This is a very normal reluctance, but if you have been reading the "blogs" of the past several days and you follow the steps, you will develop confidence.

You will have examined the criteria that are most important for your search. You will have educated yourself about the real estate market. You will have selected a professional real estate agent who will be educating you and answering your concerns along the way. When you find the home that meets all of your "needs" and most of your "wants" and is in the right neighborhood, and in your budget - it is the home for you! Don't wait to write up your offer. Even in a market that has slowed, another buyer could be looking for the exact same home.

You may not sleep the night you submit your offer, but it will be exciting to buy the home that is right for you. Our first home did not meet all of our "wants", but it did need our "needs". As it turned out, we had seven great years in that home and it proved to have been the very best decision we could have made.

Real Estate Home Buying Tips #3

January 24, 2007

Now that you know how much house you can afford and what you "must have" in your new home and what you "want" to have in that home, you are ready to select the neighborhood in which you would like to live.

While you can always make changes to the home itself, you can never change its location. Real Estate Agents have always put forth that the number 1 value factor is "Location, Location, Location". Cities have many desireable locations and some of an individual's needs and wants often determine that desireabilty. For instance: My children were swimmers and when I was selecting a new home, I put a compass on the high school and drew a .5 mile cirle. I wanted them to be able to walk to morning workouts and home after school. That is what created the desireability of the neighborhood where we purchased a home. For other home buyers desireability can be schools, freeway access, established neighborhoods, etc.

So, drive around through different neighborhoods. Notice how the yards are kept. Pay attention to the area's amenities. Make your list of your favorite neighborhoods and share that with your real estate agent. It will be a tremendous guide to the success of finding you the property that you would like.

Tips for first time homebuyers #2

January 23, 2007

In asking visitors at an open house to describe their dream home, many do not seem to know where to start. The best starting place for house hunting is to make a list of "Must Haves" and "Wants". The "Must Haves" are those features that are necessary for you to maintain your lifestyle. For instance, if you have no children, a 4 bedroom house may not be something you "must have". If you have an informal lifestyle, a separate dining room may not be somethng you "must have". You may want those features, but they may not be a necessity.

Some " must haves" include price, schools, size, yard, etc. Great examples of "wants" could be stainless steel kitchen appliances, granite counters, vaulted ceilings and so on. features that you would like, but your "need" for a certain price range may require some compromising on these.

"Must Haves" are those features where you will not compromise; "Wants" are those where you might.

Making a list with these 2 categories will make your search easier and will probably aid you in finding your "dream home".

Tips for First Time Homebuyers

January 22, 2007

That first purchase of a home can be a scary decision. It is important to prepare yourself with as much knowledge about the process as you can. Nowadays, there are articles in the media everyday that discuss some aspect of the home buying transaction. However, to a first time homebuyer, these articles can be more confusing than helpful. In my blogs of the next few days, I am going to offer some simple tips that I hope will make your homebuying search and purchase manageable and satisfying.

First question to consider: How long do you plan to live in the home you are about to purchase?

If your answer is less than 3 years, you might reconsider and continue to rent. Why? Because with the closing costs which come with the purchase and sale of real estate, in a normal market, whatever that may be, conventional wisdom states that it takes at least 2 years for the market to show enough appreciation for you to break even. After 3 years you begin to show a bit of profit. (This conventional wisdom depends on the economy being relatively
steady.)

Purchasing makes more sense than renting anytime you plan to be at one location for at least 3 years. So you may not be looking for a "forever" house, but you are looking for a home that meets your needs now.

Many potential first time homebuyers want to purchase, but have been told that they must have the traditional 20% down payment in their bank account. In the present real estate market, the 20% down requirement is a myth. If you have good credit, a stable job, there may be a loan for you. So my first tip is "GET PREQUALIFIEd."

Century 21 Lois Lauer Realty has a relationship with Financial 2000. Give them a call at 909-748-7110 and speak to a loan officer. They will be able to help you set the parameters for your home buying search.

21st Century Marketing

January 18, 2007

Remember that the blueprint for a successful sale in 2007 is the same as it has always been.
1) Pricing the home right for the market in your area.
2) Properly preparing your home. (Fixing drippy faucets, cleaning carpets, etc. )
3) Making sure that your listing receives extensive market exposure.

In the past few days I have written about #1 and #2. Today I will suggest a strategic marketing plan.

Your listing goes into the Multiple Listing Service for your area.
The listing agent's office tours your property.
The MLS agents tour your property.
Your listing goes into the various Internet sites for residential real estate advertising. The most used site by consumers is Realtor.com. You also want it on Century 21. com and some of the less well known sites such as Craig's List, Trulia, etc. You also want your listing broker to have an active web site.
The posting on the web must have photos. Realtor.com limits the number of photos to 6, but you can link to a virtual tour.
Your agent will hold an open house at least once a month.
Invitations to the open house will be sent.
Ads will be placed in the local newspapers.

With all this exposure, the maxinum number of potential buyers will be reached.

Just remmber that the other two components of a successful sale are price and conditin. The most important is and always has been price. If no offers are received in 30 days, your agent
should work with you to reevalute the market value.

Pricing is the key

January 17, 2007

So you've decided to sell your home. There are many factors that influence the sale of a particular property. Condition, marketing and pricing all play a role. In the fast paced and frenetic markets of 2004 and 2005, many buyers accepted the condition and the price in order to make a purchase. Real estate agents did not need a great marketing plan. Properties went into escrow within a day or two of coming on the market.

But times change and sellers who want their property to sell need to call a professional real estate agent and listen to the expertise of those who are best informed as to local real estate market conditions.

Overpricing will get you nowhere in today's market. Buyers are well aware that prices are soft and they are being told consistently to be wary. So how does one best determine the highest possible price that is obtainable for a particular property?

Start with the closed transactions of the past 4 months. To quote what a neighbor's property sold for a year ago is no longer relevant in the present market. A good agent will look at what is currently for sale (your competition), what has entered escrow (what buyers are choosing), what has closed escrow ( what price the seller actually received) and expireds(what no buyer thought was good market value).

In recent times, Sellers, Buyers and Real Estate agents have compared properties based on the price per square foot of each sale. This is one measure, but an unreliable indicator of the value of a partiuclar property . It will tell you that if the average price per square foot in your area is $275. and you want to list at $300, you have probably exceeded the potential buyers' limits.

After 30 years as a real estate agent, I firmly believe that pricing is the key to a successful transaction. Go over the comparable properties and be very realistic.

Your Daily Barrage - Is it up or down?

January 16, 2007

The media are still featuring real estate market information. Obviously they believe that their readers are following the ups and downs of the real estate market with bated breath. And they may be mostly correct.

I know that when I go out on a listing appointment, the sellers have read that the market has slowed....but not in our area. Yesterday, Dataquik released the statistics for December 2006 and the median price of homes in LA County was up 6.5%. They didn'y focus on the Riverside/San Bernardino area, but generally we follow LA County.

How does this translate to the right price to list a particular property?

To price a particular property so that it will attract the maximum number of buyer prospects, according to Dyan Hymer of Inman News, "...the blueprint for a successful sale in 2007 is the same. Price your home right for the market. Properly prepare your home for sale. And, make sure that your listing receives extensive market exposure."

I have been writing about preparing your home. In future blogs I will write about pricing and marketing.

Baby, Its Cold Outside

January 15, 2007

Hard to believe a week ago we experienced 80 degree weather and this morning the thermometer dipped to 28 degrees.

It was time this weekend, to put a log in the fireplace and enjoy a cozy fire. It is not really often that we Southern Californians can enjoy a toasty evening by the fire.

Hopefully we all had firewood available. I noticed that the markets quickly stocked up on bundles of wood to tempt their customers. Also, hopefully, our chimneys were not filled with bird nests. It is sometimes a wise idea to have a professional chimney sweep check out your chimney.

The cold snap also had an effect on water pipes. Take time to check yours out in case the freeze created any leaks.

For the day, just enjoy the briskness of the air and, since it is a holiday, snuggle up and bring out the book you were waiting to read.

Riverside enters the 21st century

January 12, 2007

The City of Riverside, California has stepped into the future. In a deal with telecommunications giant AT&T, all of Riverside's 300,000 residents will get free wireless Internet access in a phased in program starting this spring.

AT&T is scheduled to install the citywide network in two phases, first providing coverage by this spring in a three square mile test area near the Riverside Auto Center. Coverage will be expanded to the rest of the 80 square mile city by May 2008.

This free unlimited broadband Internet access will be available to all Riverside residents, businesses and municipal agencies.

Both Riverside and AT&T will spend millions on the project. Riverside will gain publicity as one of america's tech savvy cities and AT&T will have the gratitude and promotional possibiliities that come with the publicity.

Let's hope that other Inland Empire cities can shortly follow Riverside's example.

Garages are in

January 11, 2007

In California where homes have no attics and no basements, garages become the storage area and "dumping ground" for all our possessions that are not being used, but too precious to throw away. After awhile, the "stuff" in the garage pushes the cars out and becomes the out-of-sight, out-of-mind "stuff" that we know we need to sort and organize.

Well, the trend in real estate amenities is toward clean and neat garages - 3 car, at least - and lots of built-in cabinets and storage systems. The really appealing garages will be finished with dry wall, heating and air conditioning and a durable but designer floor.

Obviously the homes in Riverside and San Bernardino counties that were built back in the 1920s, 30s, 40s, etc. are not going to meet the 3 car requirement, or even the 2 car standard.
This means that these home owners will be challenged to clean up, organize and make the most of whatever garage space they have.

Will this make a difference in the value of your home? The market definitely is beginning to reflect the potential buyers' desire for a spacious garage. When comparing your home to other homes of the same number of bedrooms, baths and square feet of living space, it now is important to include pluses and minuses for the garage type.

The 10 Day Checkup

January 10, 2007

The year 2007 is now 10 days old. I have been blogging with suggestions for sprucing up your home. Are those Christmas bulbs planted in the garden? The weather this first week was great for being out of doors. Are you working on the closets? If it is too overwhelming or you are back to work and time is at a premium, commit to 20 minutes a day or one shelf or one box. You will feel so good as you clear out the "don't needs".

Have you decided that 2007 will be the year you make a move to a larger or a smaller home..or a new location? Maybe you keep listening to all those PBS special about the coming disaster in the real estate market. I know that people who meet me and know I am a Realtor are continuously asking "What is the market going to do?". I do not have a crystal ball and I would guess that neither do all the well educated economists. We look at the data and try to draw conclusions. However, my 30 years in the business tell me that owning the home that fits your needs is the reward....not the great investment it may or may not turn out to be.

So if you want to make a change of residence, don't hang back. There are great properties for sale and your dream home could be one of them. Check out how your present home fits your needs and if it lacks an important amenity, begin the search.

Updating hints

January 8, 2007

One of the more popular retrofits that occurred in 2006 was the window retrofit. Replacing old aluminum sliding windows or old single glass windows to dual glaze, vinyl windows seemed to be happening in every neighborhood. Statistics even suppported the benefit financially that a window upgrade made in the sale of the home.

Here is a suggestion as to the preferred method for installing a vinyl window. Flash the previous opening and then install the window with the fins over the flashing. This is done to help create a seal around the window so that moisture - wind driven rain, for example- that might penetrate through the joint between the window and the siding will not get all the way into the house. The alternative to a finned window is the retrofit window. Properly fit and installed and properly caulked and sealed in place, they should form a weather-tight seal that will be safe and effective.
The most important action a homeowner considering window replacement should take is to check out homeowners who have had the job done and get their opinion of the contractor. References for any work will save you later conplications.

Time to prune the roses

January 5, 2007

In Southern Califiornia, January and February are the months to prune. If you are unfamiliar with how to prune a rose bush, check out the garden section of the local newspaper, get a Sunset Magazine, or join your local garden club. If you are an avid internet user, just google"Pruning Roses in Southern California" and you will also find help.

Roses that are pruned now will give big and beautiful blooms for spring. If you are driving around town you will notice that many pruners take the roses down to about a foot from the ground. Pruning does not have to be quite that severe, but a significant pruning will greatly enhance your spring blooms.

While you are checking your roses, you might also check your other perennial plants and shrubs. Clean out the dead branches and tidy up the garden. The garden will temporarily be a bit stark, but the future benefits are well worth the winter look.

Recycling Amaryllis Bulbs

January 4, 2007

Are those beautiful Amaryllis flowers fading? What do you do with all the flowering bulbs that brightened your home in December?

Here is a suggestion...give them a decent burial. If you plant them outside in your garden you will have this wonderful surprise at a later time. For narcissus bulbs, they will sprout again next fall or winter and you will, over time, develop a great bed of narcissus. I know, because I am amazed at how mine have sprouted and gradually multiplied. Such a treat this time of year.

I have not yet figured out when or why the amaryllis sprout and bloom. Usually it can be spring or mid summer and I will have giant red blossoms coming up out of nowhere. Years ago I just began digging holes and putting them in the ground on a hit or miss basis and it was such a wonderful surprise when they came up and blossomed.

So...don't just throw them in your yard waste bin. Put them in the ground and see what happens next fall.

Getting Organized (cont)

January 3, 2007

I didn't give you the contact for Califronia Closets. They are in the Yellow Pages, but their web site is www.calclosets.com.

Once those closets are cleaned, its time to check out the garage. (I know that is where all the "stuff" from the closets now is stored, but the next step in getting organized is your garage storage.) Home Depot or Lowe's have great Rubbermaid Storage Bins. Over the past weekend the 18 gallon bins were under $5.00 a piece. They are really great for storing the mementos that you want to keep.

Also, while you are about getting the garage organized, a great upgrade would be new garage doors. Buyers today want the roll-up doors rather than the old traditional Califronia doors with the giant springs. Just check the web or your Yellow Pages. Typically new double garage roll-up doors cost abaout $500.00 installed. These will really give your property an updated curb appeal. What a great feeling you will have after all the sorting and cleaning is finished !

Getting Organized

January 2, 2007

The holidays have come and gone. Yes, we still have a month of football bowl games, but in the meantime we can begin the projects in keeping with our New Years Resolutions.

#1 Get Organized ; whether your planning a move or just want to clean out your "stuff", your closets are a good place to begin.

Do you have clothes that are outgrown or have not been worn for the past 5 years? Good Will or the Salvation Army would be good places to deposit them. Of course, the rules on clothes donations have changed and you must document the condition. They must be in a wearable condition and such that you would be willing to give them to a friend. Just adjust the donation value accordingly.

And all those shoes that you no longer find stylish.....or just all those shoes that are filling the available closet space, give away the first and check into the neat shoe storage racks that are available. Go to www.rakudesigns.com and see the latest in shoes storage.

And if you really want organized closets, call California Closets and they will redesign the racks and shelves to meet your special needs. If you just have too much "stuff", maybe its time to start looking for a new home.

Welcome to 2007 !

January 1, 2007

Happy New Year ! We hope your holidays were filled with family and friends. We look forward to a year filled with contacts from our old friends and with making the acquaintance of new friends.

The new year is traditinally a time for msking resolutions. Resolutions are really goals which we hope to acheive as we start a new calendar year. Century 21 Lois Lauer Realty resolves to

1. Continue to provide service in all areas of home ownership.

2. Continue to be knowledgeable about current market trends.

3. Continue to assist people to find the property that fits their family and lifestyle.

We look forward to a great 2007 !