Current F.H.A. loan program

March 30, 2007

The past several years, with the advent of 100% financing, most borrowers did not use F.H.A. insured loans. However, we are beginning to see our loan agents suggest that F.H.A. financing
might have some advantages for the borrower.

F.H.A. financing allows

as low as a 3% down payment
down payment may be 100% "gifted" from a relative
no cash reserves required
seller can pay up to 6% of the sales price toward closing costs
no prepayment penalty
no minimum FICO score
no mandatory seller paid lender fees.

Call Financial 2000 for details and be prequalified.

Spring has Sprung

March 29, 2007

On the calendar, spring arrived last week, but the weather gave us what I hope was the final blast of winter. Snow in the mountains, snow in Beaumont and Yucaipa and maybe at some other higher elevations. Winter can always make for beautiful scenery, but that frost can be hard on our tender garden plants. Hopefully, you hadn't gotten around to putting in your annual pansies, petunias and allysums in the garden but if you did, the frost was light and they may have survivied.

Now is the time to cut back all the frost damaged plants from last months really deep chill. This weekend is slated to be clear and warm, so get out the pruners and the rakes and trowels and prepare the garden for the rest of the year. Nurseries have wonderful assortments of plants - also all the nutrients and insecticides to grow healthy plants.

A week or so ago, I attended an event in a beautiful garden in Moreno Valley. I can testify that that beautiful garden made the whole property special. If you think that you might sell this year, pay attention now to nuturing a beatiful garden.

Sooty Bricks

March 28, 2007

You just love a nice wood fire in the fireplace on these chilly winter and spring nights. It beats turning up the furnace. But guess what. You forgot to open the flue and smoke stained your bricks. How do you remove the soot deposit?

Because bricks are porous, they absort the soot, which makes cleaning a challenge. Here are some tips:
Scouring powder with bleach and a stiff (not wire) brush will sometimes do the job

Rubbing alcohol can also be effective on smoke staining. (Use a soaked rag or paintbrush to apply the alcohol and wipe the stains away.)

One cup of TSP mixed with one gallon of water can also be used.

Sure Clean Fireplace Cleaner is a commercial brand specifically manufactured to remove stain from bricks. (www.prosoco.com)

This can be messy work so in any of these techniques be sure to protect yourself with safety goggles, rubber gloves, old clothes and proper ventilation.. Follow manufacturer's directions and give the cleaners plenty of time to work. For some very old and deep stains, multiple applications may be necessary. Don't be discouraged. Your renewed bricks will give your room a new life.

If your stains are too old and too stubborn, you can always call a professional masonry cleaning expert.

Take a Deep Breath!

March 27, 2007

Take a deep breath. Real estate markets are cyclical. We had an upswing that was longer than some past up markets and now it is leveling. Presuming that the future resembles the past, this period of adjustment is normal. What seems to me to be more unusual is the amount of media attention that has been given to the trends in housing. Headlines abound and sellers and buyers are unsure of what is their best option - sell, buy, wait.

The best option is always to assess your housing needs. If you are a buyer and you find a house that will give you the environment in which you want to live and the price is right, buy it. If you are a seller and you need to move on, list it at the best price for attracting a buyer.

In the meantime, if you are a seller, this pause may be a good time to check out the condition of your home. According to the Ohio-based Home Team Inspection Service the 10 most common home defects include:

1. Poor drainage that allows water to damage the foundation;
2. Faulty heating or cooling systems;
3. Mold, asbestos and other environmental hazards;
4. Inadequate ventilation;
5. Neglected appliance maintenance
6. Plumbing problems - drippy faucets,leaky pipes;
7. A leaking or damaged roof;
8. An addition or other major project done without permits
9. Electrical issues (ball and tube wiring, fues rather than circuit breakers;
10. Rotten wood from water intrusions.

Fix these now and you will have a better sale.

What's on YOur Mind?

March 26, 2007

With the constant barrage of news about sub prime collapse, housing market decline and loan qualification rule changes, what is on your mind? I would very much like to hear from readers as to what they might like to know about the current real estate market in our region. I will continue to update you about the data as it appears to me, but if you have a specific question, I would be happy to research an answer.

For today, I can say that our sales have picked up in the month of March. I am anxious to do a comparaison with March of 2006. I do believe that in this changing marketplace, better condition, better marketing and, above all, better price will generate a sale for the seller and a good value for the buyer.

Advice to sellers: Hire a professional and recognize that a professional knows what is the best
plan to get your property sold.
Advice to buyers: Don't think you can "steal" a property. Ask your professional for the
comparables and base your offer on them. A lowball offer generally gets a
higher counter or a rejection. An offer closer to the asking price may be
accepted and you are more apt to get a reasonable counter.

Orange Blossom Trail

March 23, 2007

If you are anywhere near an orange grove, you will smell that wonderful scent of orange trees in bloom! I can still remember the first time that I smelled orange blossoms. It was, and still is, a wonderful experience. However, I am not addressing scents today.

It is the weekend of the Redlands Bicycle Classic. Bicycle buffs will be in town and excitement and enthusiasm is in the air. And for many not-for-profit organizations, the Classic provides an opportunity on Saturday and Sunday to acquaint folks with their projects and to receive donations, make a little money and give away some souvenirs. Booths will be set up at the Start-Finish line on Citrus and Sixth Street. Wander around and taste the food and support these organizations.

For the third year, the Orange Blossom Rails to Trails project will have a booth and be spreading the word about the conversion of abandoned rail beds into multi-use trails. They will be giving away a Trek 3900 Mountain Bike donated by Cyclery USA, Inc. For more information about the organization you can go to www.orangeblossomtrail.net or www.redlandsconservancy.org.

The weather should be great and I know that the booths are great examples of the spirit of Redlands' organizations.

Positive Scents

March 22, 2007

Airport Terminals and Malls have figured out that the aroma of cinnamon buns is pleasant to practically all people. Not only does that cinnamon scent evoke memories of home, it also seems to have a calming effect. Real estate agents have known for some time that baking bread or cookies at an open house can be an important part of the staging.

Alan Hirsch, founder and neurological director of the Smell and Taste Treatment and Research Foundation, asserts smell can change a person's perception of his or her surroundings. Forget MUSAK, go for the cinnamon buns!

Want guests to feel welcome? Hirsch says vanilla elicits "a feeling of safety and comfort."

To suppress the munchies, a peppermint scent will curb your urge to nosh.

To fire up your workout, buttered popcorn is the scent to turn to if you want an energy boost while exercising.

A scent I really came to enjoy was the Lamps Bergere Green Apple scented oil. I had not read about Hirsch's research, but of all the scents I tried at my gallery, green apple was my favorite.
Hirsch says that to trick the brain into thinking that a space is larger than it is, break out a green apple fragrance. (I purchased mine at the San Bernardino County Museum Gift Store.)

I found Hirsch's studies interesting and certainly worth testing. Positive scenets make good sense.

Don't Forget the Sense of Smell

March 21, 2007

A great deal of effort is put forth by sellers to "stage" their properties. Real Estate Agents and buyers and TV shows have convinced the public that making your home look like a model home will attract more buying prospects and will help you obtain the highest possible price. It is certainly true that a crisp and clean home will be more desirable than one that is too crowded with personal belongings and in need of paint. Making a property visually attractive is a worthwhile goal for all sellers.

Another sense that actually comes in to play when prospects view a property is the sense of smell. Obviously these days, the smell of cigarette smoke will quickly cause a prospect to reject your property no matter how beautiful it might be. Pet odors, food odors, musty odors all turn off the prospects desire to live in your property.

Here are a few easy tips to deodorize your home.
Problem: Scents underfoot
Simple solution: Cordon off a zone of carpeting and sprinkle liberally with baking soda, then vacuum up a few hours later. Usually it is best to do a quarter of the rug at a time so family can still walk around it.

Problem: Musty clothes
Your closet smells musty from the stale odors picked up from restaurants, bars or just constant wear.
Simple solution: Spritz garments with a small amount of vodka; hang them to dry in a well ventilated area (Be sure to spot test first.) Straight vodka kills bacteria and doesn't leave a scent. (I haven't tried this, but it would be wonderful to freshen my closet.)

Problem: Garbage disposal odors
Even if you are not smelling your last nights dinner that you put in the garbage disposal, there are often odors that permeate your kitchen.
Simple solution: Run hot water and drop orange peels down the hatch and flip the switch. Lemon, lime and grapefruit also work.

Do you have some other odor problems? Clip on "comment" and email me your question.

Redlands Bicycle Classic

March 20, 2007

With the arrival of Spring comes the arrival of bicyclers and bicycle race fans. The 23 Annual Redlands Bicycle Classic will begin on Thursday, March 22, 2007 with the Poss/Abilities first ever sanctioned Handcycle Race! The races will continue through Sunday, March 25, 2007 and always bring great riders and great viewers to Redlands.

A sidelight is the United States Postal Service Booth on Saturday with a specially designed cancellation stamp and envelopes. For stamp or memorabilia collectors this booth is very popular.

To get complete details of all the events you can go to www.redlandsclassic.com. It is good to check the race maps if you are planning to look at open houses on Saturday or Sunday. It is sometimes a bit tricky to navigate Redlands' streets. However, the race marshalls are very helpful and you can get where you need to go.

Property Tax Base Transfer

March 19, 2007

Recently, I have had both agents and clients ask about the property tax base transfer law.
In 1986, the California voters approved Proposition 60 which allows the transfer of an existing Propostion 13 base year value from a former residence to a replacement residence, IF certain conditions are met.

The following conditions MUST BE MET:
1. Both the Property being sold and the replacement residence must be in the same county. (Propsition 90 did allow for some exceptions.)
2. As of the date of transfer of the sale property, the seller or a spouse living in the property with the seller must be at least 55 years old.
3.The sale property must have been the sellers principal residence.
4. The replacement property must be of equal or lesser value than the sale property.

These are the basics. As with all laws there are some nuanaces that could apply, but the first conditions must always be met.

Sewers and Septics

March 16, 2007

I believe that it is easy to take for granted that the home you are purchasing has a functioning waste disposal connection; i.e. sewer or septic. I know that when we purchased our first home, it never occurred to us to even ask the question as to whether the property was on public sewer or private septic system. Now, however, this is one of the features that should be checked on the listing data information, on the Seller's Transfer Disclosure and on the Purchase Agreement. It is not wise to assume that just because a property is located in a developed area it is connected to a sewer. It is a major headache for a homebuyer to have sewage back up shortly after the close of escrow. The best way to avoid this headache is to check it out during the normal inspection time frame.

If the Seller has indicated that the property is connected to the public sewer system, you can check by asking for a copy of the latest water and sewer bill. If there is no line item for sewer, it would be wise to do some further checking. The property may still be connected to a septic system.

If property is connected to a private septic system, a part of a purchase agreement should include the request that the seller have the system inspected, pumped, if necessary, and CERTIFIED. The certification is important since many govermental regulations will require either a new system or that the property be connected to the sewer if it is available. Both can be costly items. It is in both the seller's and the buyer's best interest to know the condition of the waste disposal system of a property. The seller because of the rule of "full disclosure" and the buyer to know that this important system is in proper functioning condition.

Your Home - The Place you LIve

March 15, 2007

The Riverside Press Enterprise has a headline today in big, black, bold print "Housing shakeout jolts area". If you take the time to read the article, the data does not warrant such a dramatic headline. Of course, any journalist will tell you that headlines are supposed to capture the reader's attention and entice them to buy the newspaper and read the news. Tsunamis, Tornados, Hurricanes, and Earthquakes are natural disasters and news of them does capture the public's attention.

A slow down in the housing market historically has been a natural phenomenom. To categorize it as a "disaster" proably depends on how it affects the economy and certain individuals. Real estate is cyclical and there are up, fast paced markets and flat, slower and some times down markets. We call them sellers' markets, buyers' markets and "normal" markets. So far the actual data shows 2006-2007 to be trending to a "normal" market.

A few days ago, I showed the Febraury 2007 statistics compared with the 2006 statistics. While the number of sales have trended down in most markets, the prices are still up in some, flat in others and down in still others.

My real question is "Are you purchasing an investment or a place to live, enjoy your hobbies, and entertain your family and friends?" I am a collector of original art and I have never bought a work of art as an investment. I buy it, because it pleasures me in some way. Isn't that what a home buyer really is looking for in a home purchase?

If a buyer's goal is a place to live, then any market is a good time to buy if the desireable property is found. Call a lender (Financial 2000 - 909-748-7110) and find out what payments can work for you. Interest rates are still at historical lows and the supply of homes is plentiful.
The long term advantages of homeownership outweighth the short term characteristics of a cyclical market.

Garden Time

March 15, 2007

It is time to clean up your garden. Many of us lost plants during the heavy frost last month. As I drive around, I can see the brown leaves on those wonderful tropical plants. In all probability the plants are still alive and will send up new shoots as the weather warms. However, it is a good time to assess your garden and plan for your new plants.

A good spot to check out plant species is the UCR Botanical Gardens. The gardens are located in Riverside at the Southeast quadrant of the UCR campus. Follow Campus Drive or Big Springs Road. You will find lilacs blooming now and can check out the information regarding the annual plant sale which will take place on March 31 and Apriil 1, 2007. At the sale you can find plants that are not commonly found in commercial nurseries and which have been cultivated for our climate.

Admission to the Gardens is free, but donations are gratefully accepted. You can also become a member of the "Friends of the Gardens" for, I believe, a $30.00 fee. This will give you priveleges such as first choice at the plant sale.

Hours for the UCR Botanical Gardens are 8 a.m. til 5 p.m. daily. The hours for the plant sale are noon to 5p.m on the 31st of March and 9 a.m. to 3 p.m. on April 1, 2007. Of course if you are a "Friend" the plant sale will be open to you at 9 a.m. on the 31st.

Is the Sky Falling?

March 13, 2007

This morning the news was full of doom and gloom about the housing market. I thought I would share with you a quick trip through market forecasts of the pasts that was put together by Dan Jacuzzi, a Sacramento real estate broker.

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline" (Time, December 1, 1947)

"The goal of owning a home seems to be getting beyond the reach of more Americans. The typical new house today costs $28,000." (Business Week, September 4, 1969)

"Most economists agree...(a home) will become a little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980s." (Money, April 1986)

"The baby boomers are all housed now. They are being followed by the baby bust. By 2005, real estate housing prices will sit 40 percent below where they are today." (Harvard economist Gregory Mankiw, "The Baby Boom, the Baby Bust, and the Comng Collapse of Housing Prices." Journal of Regional Economics, Fall 1989. )

"A home is where the bad investment is." (San Francisco Examiner, November 17, 1996.

According to Dan Jacuzzi's research, in the past five years, California home prices have increased 110% and since 1980 over 551%. "While real estate values do not rise in a straight line, the trend is clear. ..."

After all, Will Rogers was right when he said, "Buy Land - They aren't making any more of it."

Check Out Your Window Screens

March 12, 2007

Now that the warm and balmy weather has arrived and you want to open the windows and let the fresh breezes in, it is time to make sure your screens are in "proper working order". What do I mean?

Screens were created to permit windows to be open, fresh air to come inside, and bugs to remain outside. Over time, screen frames get bent and small holes seem to appear in the screening. You have several options to make them "whole" again.

1. Check your Yellow Pages and call a tradesman. (I have not recently had screens replaced or repaired and do not have a recommendation.) Just in glancing through the vendors listed under "Screens", I recognized some names. Just be sure to check that they are licensed.

2. If your frames are in good shape and not bent, you can replace the screening yourself. If you go to www.google.com and search"Replacing Window Screens", you will find venders, but you will also find www.ehow.com. This site has step by step directions which users have given a 4.5 rating on the usefulness of the information.

Enjoy the fresh air, keep those bugs out and give your home a well maintained look.

Loan Shopping? Ask the Right Questions

March 9, 2007

There is a great deal of media spin on "sub-prime" lending and "predatory" lending. According to the National Association of Realtors, homebuyers need to ask the right questions when shopping for the least expensive loan. Questions such as:
What is my credit score? Can I have a copy of my credit report?

What is the best interest rate today? Do I qualify?

Is the loan's interest rate fixed or adjustable?

What's the term (length) of the loan?

What are the total loan fees?

What is the total monthly payment? Does this include property taxes and insurance? If not, how much more will I need to pay for taxes and insurance?

Is there an application fee? How much is refundable if I don't qualify?

Are there any prepayment penalties? If so, what are they and how long do they last?

Would you give me a written estimate that includes answers to these questions?

Asking these questions will start you on a path for comparing various loan programs. I would also suggest that you ask your real estate agent about a lender before you commit. They may have had experience with a particular lender and can also advise you as to other pertinent questions. Lois Lauer, Inc. started their own mortgage company in response to some lenders jerking theier clients around. If you decide you must shop for a loan, include Financial 2000 in your pool of lenders. (909) 748-7110.

What's the difference? Median prices 2006-2007

March 8, 2007

I thought it might be interesting to compare the median price of homes in our market area for the month of February 2007 versus 2006. Yrsterday I posted the number of units reported sold through the IMRMLS. Today, I went through and calcualted the median prices. Remember that "medians" are half of the homes sold for more and half sold for less. You can check March 7, 2007 blog for the unit numbers.

Beaumont/Banning - 2006/$310,000............................2007/$320,000
Fontana.................... - 2006/$405,000............................2007/$440,000
Highland................... - 2006/$380,000............................2007/$372,000
Loma Linda.............. - 2006/$300,000............................2007/$439,000
Moreno Valley......... - 2006/$375,000.............................2007/$359,000
San Bernardino........ - 2006/$299,900.............................2007/$299,000
Redlands................... - 2006/$366,000.............................2007/$397,000
Riverside.................. - 2006/$400,000.............................2007/$420,000
Yucaipa..................... - 2006/$377,000..............................2007/$335,000

This is just a quick survey which may encompass some inaccurate dataa. It is based completely on sales reported though the IMRMLS and I did it just out of curiosity. There is so much press concerning the real estate "bubble" and trends that I thought it would be fun to check our local data. Some median prices were up and some were down and one(San Bernardino) remained the same.

Any comments as to what conclusions you could draw?

How's the Market ?

March 7, 2007

A look at the closed sales reported through the regional multiple listing for the month of February 2007 compared to February 2006.



Banning/Beaumont - 2006= 64; 2007= 42
Fontana - 2006=168; 2007= 75
Highland - 2006=37; 2007= 16
Loma Linda - 2006=10; 2007= 12
Moreno Valley - 2006=189; 2007= 85
San Bernardino 2006=161; 2007 = 81
Redlands - 2006=50; 2007= 42
Riverside - 2006=281; 2007= 168
Yucaipa - 2006=38; 2007= 29


Totals for February - 2006=998; 2007= 550

These numbers do not take into consideration new home sales or for sale by owners. It will be interesting to see the portion of sales that these categories contributed. This data will come from the Assessor's office, but generally runs a month behind the mls data.

Gleaming Grout

March 6, 2007

Granite and corian are today's favorite kitchen and bathroom counter tops. You, however, have ceramaic tile, the favored counter top of 20 years ago. Your tile is not chipped or cracked or broken, but the grout is grungy. If you are planning to sell your house, or if you just need to spring clean and you do not want to spend the dollars to replace the counter tops, making the grout gleam can be done. You can call a professional tile contractor to dig out the old grout and totally replace it with new. You can probably find a grout "topping" at Home Depot or Lowe's or you can try this "home remedy".

You may aalready have in your medicine chest some standard household hydrogen peroxide which has a 3% concentration in a water base. Dop a toothbrush directly into the peroxide and then use it to scrub the grout clean. Simple. Sometimes those stains are really tough and the peroxide is not quite strong enough to remove them. At a tile store you can find an industrial-strength grout cleaner - at a tile store not a hardware store. Tha is because specialty stores usually stock the best tile and grout cleaners.

After you clean the grout, you might consider using a grout sealer and really slather it on following the package directions. Once you have that gleaming grout, the sealer should keep it gleaming. Tile counter tops still have a charm that the harder surfaces do not have.

Pricing Your Home Gets Trickier

March 5, 2007

No seller wants to leave money on the table by underpricing a property. Contrary to some opinions, no real estate agent wants to undersell properties. Yes, we are hired to market and sell . We spend dollars advertising and open houses showing, but knowing that you and the seller found the price point that will generate a sale creates more enthusiasm I don't believe any seller wishes to spruce up his property, allow strangers to come through and critique the decor and not sell the property. Testing the market with a higher than recommended listing price is not a winning strategy in today's real estate marketplace!

With more and more exposure of listings on the internet sites, the buying prospect of today can be educated as to what size, location and amenities can be purchased at a particualr price. As a seller, it is important to know that your property is competitive. Really understanding the competitive market analysis that a listing agent presents to you is a first step. Taking the time to visit your competition is definitely worth the time. Looking through the eyes of a buyer will let you know what fix-ups could be beneficial and what a competitive price should be.

Condition and marketing are important, but bottom line has always been and except for the"irrationnal exuberance" of the past 3 years, it is still the important ingredient for a successful sale.

Trust

March 1, 2007

I had a laser procedure on my eyes yesterday and I was struck with how much "trust" was required. Obviously, one must first trust that the doctor doing the procedure knows what he is doing. That trust usually is the result of reputation and recommendations from friends as well as one's own assesment in the pre-op interview. It was after the procedure as I was being guided to walk from the operating room and into a recovery room that I realized I had to completely trust the nurse since I could not see anything. For a person such as myself who likes to be in control, this made me aware of the "trust" I was putting in a complete stranger. As I sat in the recovery room, I thought about real estate clients and the kind of trust they must put in their agent.

A seller may call an agent based on a recommendation of a friend or the agent's reputation
in the community. They may interview one or more agents, but if they are unfamiliar with the process of selling a property, they are in the position of putting "trust" in the knowledge and skills of the agents. Just as I did not know what questions to ask the eye surgeon, they may not know the questions to ask the agents.

Selling a home has become a very complex process. Agents who are active in the market, sometimes forget that their clients may not be familiar and, hard as they may try not to, they may skip over some of the smaller details. As a seller or a buyer there is no question too unimportant. Ask and ask until you are clear about the process. A professional agent will always be willing to answer or to refer you to the appropriate professional.

To all our present and past clients, "Thank you for "trusting" us."

Community Service

March 1, 2007

The Moreno Valley office of Century 21 Lois Lauer Realty is continuing in their support of Riverside Recovery Resources. "Our House" is a unique part of Riverside Recovery Resources. "Our House" is beginning their spring fund raiser and the Century 21 Lois Lauer Realty office at 24021 Allesandro Blvd., Suite B in Moreno Valley will be the drop off location for canned foods, clothing, gifts, toys, games and books.

The "Our House" facility and staff provide a warm, supportive, home-like atmosphere for the mother and child. "Our House" was established to meet the needs of the alcoholic mother and her dependent children by providing a place where they can live while they are rebuilding their lives. Each woman is assisted in the development of an individual program of recovery, which will include alcohol education, individual counseling sessions, self-help groups, planned recreational activities, and vocatioal guidance. The children also receive alcohol education, counseling and are instructed in structured playgroups and other necessary requirements (Elementary school is within walking distance).

In addition to the office drop off location, the real estate agents will be visiting their clients to collect donations. Century 21 Lois Lauer Realty has a committment to giving back to the communities that they serve and for the past 10+ years has set aside $10.00 from every real estate transaction to create a fund for charitable activities.

For more information about Riverside Recovery Resources, "Our House", please contact them at 1-800-801-HOPE. For more information about Century 21 Lois Lauer Realty you can contact 1-951-571-4400 or check for information on this web sute www.loislauer.com.