The "Medicare" TAx

November 30, 2010

I had a question yesterday from a prospective seller concerning the 3.8 percent tax on home sales that was part of the Health Care and Education Reconciliation Act of 2010. I had read about this "Medicare" tax, but other than believing that it was not effective in 2011, I was pretty fuzzy about what it was going to impose on home sellers.

I had saved an article by Benny Kass that was printed in the Inman News. Here are some of the provisions of this tax.

1) The tax is based on income and profit. It does not apply universally to all home sellers.

2) It is not a sales tax, nor does it impose any transfer or recordation tax.

3) The moneys received will be allocated to the Medicare Trust Fund, which is part of the Social Security system.

4) If your individual income is less than $200,000 (adjusted gross income), you are not subject to the tax.

5) f you are married and file a joint tax return with your spouse, the law will apply only if your income is more than $250,000.

6) If you are married and you and your spouse file separate tax returns, the income threshold is reduced to $125,000. (The law spells out all of these thresholds very specifically.)

7. If you are subject to this tax, you will probably need an accountant to determine the tax you might owe.

8) In any event, the "Medicare" tax does not take effect until January 1, 2013.

Hoem Improvement Tax Credits

November 29, 2010

In this morning's edition of The Wall Street Journal, there was an article entitled "What You Need to know About Home-Improvement Tax Credits" by Mara Lemos Stein. The article is in a question and answer format and discusses which home-improvements are eligible for tax credits and which are not. One of the points of the article was the warning that many of these credits will expire on December 31, 2010.

Homeowners can get tax credit for installing certain wood or pellet stoves, energy-efficient furnaces, water heaters and air conditioning systems; insulated roofs, windows and doors; and wall and ceiling insulation. The tax credit covers 30% of the purchase cost up to $1500. For a full list check the Energy Star web site at http://www.energystar.gov/ "

The cost of installation of heating and air conditioning systems, water heaters and biomass stoves is covered, but installing new windows, doors, roofs and insulation is not.

These tax credits are only available on your principal residence.

Appliances are not included in the tax credit regulations.

The tax incentives for rooftop solar-power systems is available until 2016. These credits are 30% of the cost installation included with no upper limit.

Not only could you get the tax credit, but these new systems will certainly save you money on your utility bills

Winter Sports in the Inland Empire

November 26, 2010

For those of you who are not out shopping on Black Friday, the skating, skiing and snowboarding venues have opened and offer lots of winter sports enjoyment.

For ice skating, the Old Town Temecula Ice Rink opens today at 10 a.m.. A grand opening will take place at 1 p.m. with appearances by professional ice skaters. This years ice rink is a little bigger than last years at 50 x 70 feet. An hour long skating session costs $10 with skate rental included. For information call 951-694-6423

In Riverside, on Main Street between University and Mission Inn Avenues, there will be outdoor ice skating from today through December 19. Monday through Thursday hours are 4-10 p.m. ; Friday 4-11 p.m.; Saturday noon to 11 p.m. and Sunday noon to 10 p.m. $3 skate rental. For information regarding ice skating fees, call 951-826-2370

In our San Bernardino Mountain Ski Resorts, the snow is spectacular, Bear Valley, Snow Summit, Mountain High are all open and enjoying perfect skiing and snowboarding weather. Open from 8:30 a.m. to 10 p.m., You can find more information on the Internet by googling San Bernardino Mountain Ski Resorts.

For folks who enjoy playing in the snow and don't want to travel to the mountains, Tri City Center in Redlands is hosting there annual "Snowtacular" Saturday. They have trucked in Mountains of snow and welcome all comers.

We Remeber to be Grateful/ Filled with Thanksgiving

November 25, 2010


"Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos to order, confusion to clarity. It can turn a meal into a feast, a house into a home, a stranger into a friend. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow" - Melody Beattie


We at CENTURY 21 Lois Lauer Realty are grateful for all the wonderful folks that we have had the privilege to serve. Thank you!

Green Tips

November 24, 2010


As Realtors, we receive a weekly newsline from C.A.R. (California Association of Realtors). Each edition contains a "Green Tip of the Week". The November 18th edition contained a tip that I thought I would pass on to all you folks who might be fixing your Thanksgiving turkey in one of those giant turkey fryers. After the cooking is finished, what do you do with all that cooking grease? Recycling it is better than clogging sinks and sewers by pouring down the drain. According to C.A.R.'s green tip, one use for the goo is powering biodiesel vehicles. Type in http://www.earth911.com/ to find recycling centers.


If you are planning on replacing your TV or you computers, disposing of your old electronic equipment is sometimes a challenge. This Saturday, November 27, the Tri City Shopping Center in Redlands is having a "Snowtacular Event" You can bring the kids and play in the snow, pet the animals and ride on the ferris wheel when you bring your old Televisions, Computer monitors, LCDs, Laptops and Computers. What a great deal! Have some fun and dispose of your e-waste.

What is a Mello-Roos Fee?

November 23, 2010

Since I have posted information on property taxes which are now due, I thought I might post some information on Mello-Roos fees. Notice that these are "fees" not "taxes" although they are collected with your real property tax bill.

A Mello-Roos fees are normally established at the request of a major developer to finance the necessary public facilities to serve a new development. The public agency issues tax-exempt bonds for these public facilities. These bonds are pare typically paid off in 20 years, but California does allow up to 40 years for the pay off.

Usually the fees are calculated based on the size of the home or the lot size. The amount of the fee is established before the home is built and is not based on the current value of the home. These fees can increase or decrease over the life of the bonds, but an increase cannot be over 2% a year.

You can determine if your property is in a Mello-Roos district by reviewing your property tax bill. Mello-Roos fees are identified as Community Facilities District (CFD) followed by a number and the amount of the fee.

For information contact your local County Assessor's Office. They will have the phone numbers and the names of persons to call for each Mello-Roos District.

Is a "No-Cost" Loan Really "No-Cost?"

November 22, 2010

If you listen to the radio you have probably heard ads for "no-cost" loans, sometimes called "zero-cost" loans. These loans purportedly require no cash outlay from the borrower. Typically the lender adds approximately half a percentage point to the interests rate being charged.

Since the up front costs of obtaining a loan can be as much as 3% of the loan balance, these "no-cost" loans can be tempting to a borrower.

In a C.A.R. newsletter article that quotes a piece in the New York times newspaper the following description of "no-cost" loans was cited.

One of the primary differences between a "no-cost" loan and similar loans is that "no-cost" loans do not tack on closing costs to the balance, but instead increase the rate.

With "no-cost" loans, third party fees including appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender. The fees, including the amount the broker is being paid, are disclosed on the closing statement."

Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan."

Borrowers weighing their loan options are advised to use a mortgage calculator to compare the costs for a conventional loan compared with a no-cost" loan. The Federal Reserve provides an amortization calculator n its Web site at http://www.federalreserve.gov/

Two Annual November Events

November 19, 2010

The San Bernardino County Museum association will be sponsoring the annual Wildlife Art Festival this weekend. This festival is held in conjunction with the exhibition of the top entries in the Federal Duck Stamp art contest. For 29 years the museum has been privileged to be the first West Coast venue for the exhibition of this incredible wildlife art.

There will be two dozen prominent wildlife artist exhibiting and selling their art pieces. In addition there will be Family Fun day activities organized by the museum's education division. There will be workshops in basic drawing, pastels and pen and ink drawing for children ages 9 to 15. The museum is open from 9 a.m. to 5 p.m. on both Saturday and Sunday. For more information, call the museum at 909-307-2669.

The second event is on that you can enjoy from the comfort of your home. Friday,(today) from 6 p.m. to 10 p.m. and Saturday, November 30 from 4 p.m. to 10 p.m. the Redlands Chamber of Commerce will hold a live auction of goods and services from local vendors. You can view the program on Channel 3, Time Warner Cable or Channel 35 on Verizon Fios. If you do not have cable you can log on to http://www.redlandschamberlive.com/ for streaming video. This is a great event for doing you holiday shopping.

Real Property Tax Dates

November 18, 2010

With the real property tax bills now due, I thought I would review the dates that impact real property taxes. the tax year begins on July 1 of each year. The first installment covers the period from July 1 to December 31. The second installment covers the period from January 1 to June 30.

Here are the important dates that real property owners should know.

March 1 - Assessment Date - Taxes become a lien at 12:01 a.m. and do not become due until November 1. However, any title report will show real property taxes as a lien from March 1 forward.

April 15 - Last day to file for the 100% Veterans or Homeowner.s exemption. You must have owned the property on March 1 to be eligible for these exemptions.

July 1 - Current fiscal tax year begins.

November 1 - 1st Installment due - July1 to December 31

December 1- Last day to file for 80% Veterans or Homeowner's exemption

December 10 - 1st installment becomes delinquent at 5 p.m. - 10% penalty added to taxes due. If December 10 falls on a weekend or holiday, taxes are not delinquent until 5 p.m. the next business day

January 1 - Calendar year begins

February 1 - 2nd Installment due - January 1 to June 30

April 10 - 2nd Installment becomes delinquent at 5 p.m. - 10% penalty plus $10 administrative charge attaches. If April 10 falls on a weekend or a holiday, taxes are not delinquent until 5 p.m. the next business day

June 30 - Property tax may become defaulted - If you fail to pay either or both installments by 5 p.m., property tax become defaulted and additional costs and penalties accrue. If June 30 falls on a weekend or holiday, taxes must be paid by 5 p.m. of the PRECEDING day.

Property may be sold at public auction after 5 years of delinquency

Property taxes are governed by California State law and are collected by the county whee the real property is situated.

Here are Some Tps You Might Find Useful

November 17, 2010

Often when showing a two story home or a home on a raised foundation, there can be squeaks in the floor. I was reading a book published by the editors of FC&A Publishing and came across these four possible solutions.

1) "Generously dust talcum powder between the noisy boards of hardwood floors. Lay down a towel and step on it to work the powder into the nooks and crannies. If you still hear a creak, apply more talcum powder."

2) "Work liquid wax between the boards of waxed wood floors. Don't try this on floors w varnish or urethane coating."

3) "Squeeze a long bead of construction adhesive along the crack where the floor boards meet the joists, for floors where the joists are exposed. Do this from the underside of the floor."

4) "Buy an inexpensive tool called the Squeeeeek No More to fix carpeted floors when you can't get to the joists.It guides a screw through the carpet into the underlying floor joist. Then it snaps off the screw head so it's totally hidden by carpet. Check your local Hardware store for this product or buy it online at http://www.squeaknomore.com/"

It is always a treat to come across these suggestions for simple fixes to annoying problems. Let me know if you have success with any of these techniques.

Headlines Capture Our Attention

November 16, 2010

The Sun newspaper which is published in San Bernardino County had a large headline this morning that read "Owning a home easier". In reading the article, the "easier" referred to the ratio of folks that could afford a median priced home in the Riverside/San Bernardino Counties region. The High Desert region was the most affordable in the state with 85% of first time home buyers able to buy a home. This statistic is basically derived from the price of the median home and the income of residents in that region. For example, in the Santa Barbara area, the affordable index is at 51%. Even with a reasonably high income demographic, the price of housing in that region is very high.

While folks are able to qualify to purchase a home in our Inland Southern California region, the volume of sales does not reflect an eagerness to take advantage of the low prices and the low interest rates. Some of the hesitation may be the result of a lack of confidence in the future trend of home prices. Some may be the lack of good credit resulting from past foreclosures even though these folks may now have stabilized their financial situations.Some may be the result of a lack of an appealing mix of housing.

If you are considering a purchase either as a first time buyer or as a move-up or move-down buyer or as an investor, this is the time to call your real estate agent, describe the home you would like and take a day or a half day to check out the inventory. There are truly some motivated sellers and some great properties waiting to be purchased. Remember, The Sun said "Owning a home is easier"

National Recycling Day

November 15, 2010

Were you aware that since 1997, November 15 has been officially designated as America Recycle Day? I was not aware of this day being set aside to remind folks that reducing, reusing and recycling are important ways in which each of us can help our environment. Most communities have recycling locations, including locations for dropping off your hazardous waste materials. Same communities collect recyclables on a weekly basis by furnishing residents with a trash bin just for recyclable material.

It is my understanding that Goodwill drop off centers will take your electronics since most other recycling centers will not take old TVs, computers, printers, coffee makers, etc. since most families seem to collect these electronic items, it is a real service that Goodwill performs when it collects them.

While there seem to be a great many of these specially designated days for this, that and the other thing, it is probably a good thing that we are reminded at least once a year to plant trees, remember veterans and to help clean up our environment.

Celebrate San Bernardino's Railroad History

November 12, 2010

On November 12, 1885, a freight train from Barstow to San Bernardino came through the finally completed rail line through Cajon Pass. On Saturday, November 13, 2010, BNSF Railway and the San Bernardino History and Railroad Museum invite you to celebrate the 125th anniversary of this first train over the Cajon Pass.

The celebration will be held at the Santa Fe Depot, 1170 W. 3rd Street in San Bernardino. The event starts at 11 a.m. and continues until 3 p.m. There will be locomotives on display, bus tours of the San Bernardino Intermodal facility, tours of Ultra-Low emission Locomotives, food and entertainment. The Museum will be open as well as information booths.

The coming of the railroad was significant in the history of San Bernardino and of the Inland Empire. Don't miss this chance to learn more and to have a really fun day especially since our weather is predicted to be spectacular!

Veteran's Day - 2010

November 11, 2010

Originally designated as "Armistice Day", the eleventh day of the eleventh month was set aside to commemorate the temporary cessation of hostilities between the Allied nations and the Germans. This cessation of hostilities ended on the eleventh hour of that eleventh day even though the Treaty of Versailles which officially ended World War I was not signed until June 23 of the following year.It was in 1954 that the word "Armistice" was deleted from the act of 1938 that made the day a legal holiday and the word "Veteran's" was inserted in its place. This day is set aside to remember all those who have joined in the defense of our freedoms.

While World War I was considered at the time to be the war to end all wars, such has not been the case. We are still fighting and it remains important that we honor our fighting men and women.

CENTURY 21 Lois Lauer Realty has participated in a program called "Operation Gratitude". During the holiday season, we collect items that will be packaged and sent to our troops for a bit of thanks and remembrance. Items such as CD, DVD, Ipods, single serving boxes of cereal, toiletries, handi-wipes, disposable cameras, T shirts, etc. We donate these items as a small token of our gratitude. Last year we collected five very large cartons of items that were taken to the "Operation Gratitude" collection center in our area. We are presently in the process of putting together cartons for collecting items this year. If you wish to donate just drop by our front lobbies in either our Redlands office (1998 Orange Tree Lane) or out Yucaipa office (33699 Yucaipa Blvd.).

I also read an ad in a recent Business Week magazine for a new program for collecting recyclables and using the monies to fund a retraining operation entitled Entrepreneurship Bootcamp for Veterans with Disabilities (EBV), a program started at Syracuse University. To learn more of this program that places "Dream Machines" in football stadiums and other high traffic locations . The goal is to increase the container recycling rate to 50% by 2018. This program is a partnership with Pepsico, Waster Management, Keep America Beautiful and Greensopolis.

As citizens, let's all participate in supporting our troops.

Monthly Median Prices - Year to Date 2010

November 10, 2010

As part of my tracking the real estate market, I post monthly median prices as reported through our CRMLS (formerly MRMLS).

Here are the monthly medians

Banning/Beaumont.......Jan/169,000......Feb/165,000......Mar/185,000......Apr/165,000.....May/185,000

.......................................June/171,000......July/170,000......Aug/170,000.....Sept/170,000.....Oct/172,000

Bloomington..................Jan/135,000.......Feb/110,000......Mar/150,000......Apr/150,000.....May/155,000

......................................June/126,500......July/129,000......Aug/145,000......Sept/145,000.....Oct/150,000

Colton...........................Jan/97,500...........Feb/125,000......Mar/100,000......Apr/128,000.....May/107,000

.....................................June/113,000.......July/107,000......Aug/100,000......Sept/120,000....Oct/130,000

Fontana.......................Jan/190,000.........Feb/200,000.....Mar/200,000......Apr/215,000.....May/200,000

....................................June/213,000........July/200,000.....Aug/210,000......Sept/200,000....Oct/190,000

Grand Terrace......................Jan/236,000.........Feb/199,900.......Mar/249,900......Apr/200,000.....May/187,000

..................................June/182,500........July/190,000.......Aug/190,000......Sept/215,000.....Oct/223,000

Highland....................Jan/163,500.........Feb/150,000.......Mar/160,000......Apr/162,000......May/173,500

..................................June/185,000.......Ju;ly/170,000.......Aug/161,000......Sept/190,000.....Oct/191,000

Loma Linda........................Jan/275,000.........Feb/240,000.......Mar/175,000......Apr/240,000......May/203,200...

.................................June/220,000......July/190,000........Aug/215,000.....Sept/250,000......Oct/185,000

Mentone..................Jan/200,000........Feb/225,000........Mar/200,000....Apr/190,000.......May/220,000

................................June/78,000..........July/195,000........Aug/112/156.....Sept/159,900.......Oct/195,000

Moreno Valley.....................Jan/150,000..........Feb/149,000.......Mar/150,000.....Apr/157,000........May/163,000

..............................June/160,000.........July/150,000.......Aug/154,900.....Sept/159,000........Oct/155,000

Redlands...............Jan/210,000..........Feb/207,000.......Mar/210,000......Apr/227,000........May/217,000

.............................June/221,000..........July/199,900.......Aug/237,000......Sept/213,000........Oct/241,000

Rialto....................Jan/145,000...........Feb/144,000.......Mar/155,000......Apr/164,901.........May/165,000

............................June/165,000..........July/150,000.......Aug/158,000......Sept/170,000........Oct/160,000

Riverside............Jan/185,000............Feb/200,000.......Mar/190,000.....Apr/190,000.........May/215,000

...........................June/200,000..........July/190,000.......Aug/190,000.....Sept/200,000........Oct/190,000

San

Bernardino........Jan/95,000..............Feb/92,000.........Mar/90,000.......Apr/110,000..........May/107,000

...........................June/113,000..........July/107,000.......Aug/100,000.....Sept/100,000.........Oct/105,000
Yucaipa/
Calimesa............Jan/160,000...........Feb/195,000.......Mar/199,000......Apr/179,000..........May/209,750

...........................June/189,500.........July/170,000.......Aug/212,000......Sept/211,500..........Oct/193,000

Just a reminder. These numbers are derived from dividing the number of ales reported by 2. Median price is the price at the halfway point. It simply recognizes that half of the transactions sold for more and half sold for less. The median number reflects the mix of properties sold. However, there does seem to be a fairly consistent trading range in the various communities. Those small communities with fewer properties being sold seem to have a wider swing in the median price.

Always be Prepared

November 9, 2010

I needed a flashlight this past Saturday to assist guests through the maze of reconstruction that is occurring at my home. Sidewalks are being rebuild and exterior lighting was out of commission during the major landscaping project. What I discovered was that all the great flashlights that I had located in every room of my house were dead - batteries or bulbs, they would not work, Obviously this was a wake-up call. Part of living in Southern California is being prepared just in case we do have a major earthquake. We have been so fortunate that it is easy to forget to keep one's supplies in working order.

The American Red Cross recently ran an ad for three types of emergency flashlights. I thought I would share the products with you.

1) SOLARLINKFR360 - AM/FM/NOAA Digital Radio; LED Flashlight and USB Cellphone Charger

2) MICROLINKFR160 - AM?FM?NOAA Radio; LED Flashlight; Cellphone Charger

3) Blackout Buddy - Emergency Alert; Night light; LED Flashlight.

These could be great holiday gifts !

Closed Transactions Reported Through the CRMLS

November 8, 2010

Here are the numbers for the closed single family properties as reported though the CRMLS for the months of October 2010 back to 2003. The volume for 2010 are pretty similar to the volume for 2006. The highest total October volume was 2008 and the lowest was 2007. Interesting!

Banning/Beaumont.........2010/122......2009/138......2008/137......2007/48......2006/77

...........................................2005/79........2004/72........2003/81

Bloomington.....................2010/35........2009/33........2008 /37.......2007/2........2006/25

...........................................2005/30.......2004/29........2003/24

Colton................................2010/38.......2009/50........2008/71........2007/13......2006/43

...........................................2005/63.......2004/54........2003/52

Fontana............................2010/219......2009/312......2008/376.....2007/73.......2006/198

..........................................2005/276......2004/226......2003/246

Grand Terrace................2010/9..........2009/14.........2008/10......2007/8.........2006/9

..........................................2005/16........2004/14.........2003/10

Highland..........................2010/60........2009/64........2008/79.......2007/24.......2006/61

.........................................2005/63.........2004/65........2003/73

Loma Linda....................2010/10.........2009/17.........2008/11......2007/4..........2006/25

.........................................2005/17.........2004/13.........2003/11

Mentone.........................2010/6...........2009/8...........2008/13......2007/2..........2006/4

.........................................2005/8..........2004/5...........2003/16

Moreno Valley...............2010/214......2009/340.......2008/546....2007/84.......2006/211

.........................................2005/307.....2004/304.......2003/283

Redlands........................2010/67........2009/60..........2008/62......2007/34.......2006/55

........................................2005/73........2004/63..........2003/78

Rialto..............................2010/85........2009/156........2008/138....2007/52.......2006/87

........................................2005/110......2004/107........2003/131

Riverside.......................2010/361......2009/477........2008/510.....2007/134.....2006/344

........................................2005/421......2009/400.......2003/418

San Bernardino............2010/212.......2009/343.......2008/288.....2007/95.......2006/188

.......................................2005/222.......2009/198.......2003/246

Yucaipa/Calimesa.......2010/67..........2008/66.........2008/56.......2007/28.......2006/54

.......................................2005/73.........20042/58.......2003/81

There you have it. As you can see, not all areas are consistently higher in volume in the same year. I do think that it is interesting to note that the total reported sales volume in these fourteen communities was 601 in 2007 and jumped to 2334 in 2008. This October the total volume in these communities was 1505.

Literacy Fair at the an Bernardino County Museum

November 5, 2010

This Sunday, November 7, from 9 a.m. to 2 p.m., First 5 of San Bernardino is sponsoring "All Aboard the Reading Railroad". Perfect for families and children age 5 and under. The event is open and free to the public.

There will be storytellers, games and information for parents on how to incorporate books into a family's daily routine. Kindergarten and Preschool children will receive a back pack filled with school supplies. For more information visit http://www.sbcountymuseum.org/.

This evening and Saturday and Sunday, the youth group Christian Arts Theatre will be presenting the musical "Oliver" at the Corona Civic Theater at 815 W. Sixth Street in Corona. 7 p.m. today, 2 and 7 p.m. on Saturday 2 p.m. on Sunday. It will be presented at these times on the next weekend also.

Downtown Riverside will host the second of the "First Sundays" featuring magic, fall crafts, music, scrap booking and much more. The cost is free. the time is Sunday from 1-4 p.m

This is also the weekend when we "fall back". At 2 a.m. on Sunday morning we need to reset our clocks. Daylight Savings Time ends and we return to Standard time. It will be dark earlier in the afternoon but not quite so dark first thing in the morning.

A Word About Tax Impounds in California

November 4, 2010

Property taxes in the state of California are governed by Proposition 13 which was an initiative passed by the voters in 1978. It sets the property tax rate at 1% of the purchase price plus the bonded indebtedness of the municipality in which the property is located. Thereafter, the county assessor can raise to property valuation by up to 2% of the assessed value. When a property is purchased, the taxes are changed from the sellers tax valuation to a new valuation based on the purchase price. Lenders use this new valuation to determine the amount of tax impound they will require if the buyer's loan requires an impound account or if the buyer chooses to set up an impound account. Usually the impounds are collected with the monthly payment and include property taxes and insurance payments. This money is then used by the lender to pay the tax and insurance bills when they come due.

Depending on the time of the year, the amount collected for the taxes changes. For example:

If your closing month is November and your first payment is not made until January, the lender will collect through escrow 4 months payments of taxes. Here is the chart for the amount collected.

January closing/March loan payment = 6 months of taxes

February closing/April loan payment = 1 month (This is because the second half year of taxes will be paid through escrow at the time of closing.)

March closing/May loan payment = 2 months

April closing/June loan payment = 3 months

May closing/July loan payment = 4 months

June closing/August loan payment = 5 months

July closing/September loan payment = 6 months

August closing/October loan payment =7 months

September closing/November loan payment = 8 months

October closing/December loan payment = 9 months

November closing/January loan payment = 4 months

December closing/February loan payment = 5 months

Fair Market Value - A Moving Target

November 3, 2010

Fair market value has been used for generations when assessing a value of any object, but more often when speaking of the value of real estate. The legal definition under California law is found in the Code of Civil Procedure, Section 1263.320 and reads as follows:

"The fair market value of the property is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available."

There are a number of other types of value designations. There is "assessed" value, "insurance" value, "replacement" value and "market" value. Note that "market" value may not be the same definition as "fair market" value, the latter being defined as "The most probable price which a property should bring in a competitive and open market under all conditions requisite for a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus."

Confused? Comparing sales of similar properties is the most common process used by appraisers to determine "market" value. Location, amenities, condition are all features that will affect the comparison of one property to another. In the end, the "market" value of any piece of property will be based on the comparable data plus the opinion of the appraiser as to the similarity of the subject property to the sales data.

With all these variables, the fair market value is indeed a moving target.

Today is the Day - Exercise Your Right to Vote

November 2, 2010

It seems as if the political ads have been going on for much longer than normal. Probably not, but they have certainly helped the bottom line of newspapers, TV and radio stations. Plus the Internet has been filled with much chatter. Will it end today?

Certainly some of it will.

The most important right that American citizens can exercise is the right to vote. It is a beautiful day in the Inland Empire. We don't have to endure, rain, snow, sleet or threats from terrorist groups. We can go to our neighborhood polling place and cast our vote.

Wouldn't it be wonderful if record percentages of those entitled to vote actually exercised this right?

November 1, 2010 - Listings, Pendings, Backups and RAtios

November 1, 2010

As is my custom, I follow the numbers. These numbers are the numbers reported in the CRMLS (MRMLS has been changed to CRMLS as more MLS data is added to our data base.)

Banning Beaumont........Listings/630.......Pending/234......Back-up/74........Ratio/.489

Bloomington...................Listings/85.........Pending/75.........Back-up/14.......Ratio/1.047

Colton..............................Listings/134.......Pending/100......Back-up/36.......Ratio/1.015

Fontana..........................Listings/825.......Pending/557.......Back-up/176.....Ratio/.888

Grand Terrace..............Listings/38.........Pending/12..........Back-up/6.........Rstio/.474

Highland........................Listings/230.......Pending/108.......Back-up/38.......Ratio/.635

Loma Linda...................Listings/82.........Pending/30.........Back-up/11........Ratio/.500

Mentone........................Listings/28.........Pending/14..........Back-up/4.........Ratio/.643

Moreno Valley..............Listings/856.......Pending/532.......Back-up/193.....Ratio/.847

Redlands.......................Listings/314.......Pending/102........Back-up/53.......Ratio/.696

Rialto.............................Listings/343.......Pending/246........Back-up/74.......Ratio/.933

Riverside......................Listings/1444......Pending/780.......Back-up/305.....Ratio/.751

San Bernardino............Listings/840.......Pending/507.......Back-up/108.....Ratio/.732

Yucaipa/Calimesa.......Listings/280.......Pending/88..........Back-up/58.......Ratio/.521

There you have the numbers. The ratio number is derived from the addition of pending and back-up and then dividing by the number of active listings. My disclaimer is always that there is nothing scientific about these numbers, However, by tracking them monthly, they do give a fair indication of the activity in the real estate market in these fourteen communities.