Lenders Seem to Be Putting More Attention on Roofs

February 28, 2013
The roof over our heads may be something we take for granted until we have a heavy rain that creates a spot on our ceiling. After many years of not ever having a roofing certification required by a lender, I have had three in 2013. Two were triggered by a remark in a structural Pest Control Inspection Report that contained the word "roof". The third was triggered by the Agent Visual Inspection that noted a "spot on the ceiling".
All of this attention to roofs by appraisers and termite companies has made me look more closely at the roofs of the properties I am listing or selling. I would suggest that homeowners would be well advised to take a look at their roofs.
If the roof is constructed of composition shingles, look at the ridge lines. Are the shingles beginning to curl? If they are, call a roofer and have your roof checked. It is better to have the roof repairs completed prior to putting a house on the market as roof certifications are not easy to obtain as many roofers do not want the liability of guaranteeing a roof for two years - the usual lender required certification.
If the roof is of concrete tile, have a roofer check it out for cracked tiles. Cracked tiles can allow water to seep into the under-layment and over time destroys the integrity of the under-layment that protects from leaks.
If your roof is over fifteen years old, and it has never been a problem, that is a very good thing. However, in these days of lender and appraiser cautiousness, having the roof checked by a licensed roofer is a wise part of home maintenance.

To Stage or Not to Stage - That is the Question

February 27, 2013
To stage or not to stage is a question that sellers who watch the TV home selling programs often ask their agents. Many of these TV programs show examples of how a property that has been on the market for a period of time will quickly sell once the professional "stagers" have "staged" it. As active as the market is now, should the seller take the time and spend the money to "stage" the property?
I have noticed that houses that are vacant do benefit from having furniture brought in and aranged in an appealing manner. The house becomes more of a "home". In fact, the majority of these "staged" properties do sell more quickly and often for a higher price.
How, then, does an agent answer a seller's query: "To stage or not to stage?"
As always, it depends. Are the sellers willing to spend approximately $1000-$2000? Sometimes, it is not obvious where the furniture would fit (against a wall or in the middle of a space). There is a reason new home builders have model houses.
If a seller has a limited amount funds, it may be more cost effective to do some updating to the property rather than staging. To stage or not to stage is a serious question and requires going over the pros and cons.

California Housing History

February 26, 2013

Algorithms Versus Agents' CMAs

February 25, 2013
Oh how I wish there was a mathematical formula for determining the market value of a piece of residential real estate - or, for that matter, any piece of real estate. Agents and appraisers still rely on the data found in multiple listing services and in public records. When the data is compared with the description of a subject property, appraisers and agent come up with an "opinion of value"  The number of "like" properties available in the data base can make the determination of value easy, if plentiful, and difficult, if scarce.
Zillow is a web site that was launched approximately ten years ago. When you type in an address, the site will post a "Zestimate". It is my understanding that "Zestimates are arrived at by entering, data from public records, from multiple listing services and sometimes from real estate agents' input into algorithms that then compute a value for the subject property. As with any computer program, the accuracy of the result of the answer depends on the accuracy of the data inputted.
As a real estate agent who would love to have a program that gave me the market value of a particular property, I would embrace such an easy solution to on of the more challenging jobs of a real estate agent.
However, the Zillow Zestimates are a good starting point, but are not the answer to determining the current market value of a particular piece of real estate. The old fashioned Comparative Market Analysis (CMA) may still give the best answer to "what's my property worth?" A professional real estate agent who works in the area every day is still the person to interview and whose opinion of value is worth serious consideration.

The Mountains Are Covered in Snow

February 22, 2013
The weatherman says that Saturday and Sunday should be great days weather wise in the Inland Empire. After the cold, snow and rain of the past week, the mountains are a beautiful sight to behold. The snow level was down as low as it has been this winter season and the snow resorts are ready for winter fun. The roads should be clear and the mountain resorts are open daily. Check out the Snow Summit or Bear Mountain or Wrightwood web sites for up to date information.
If you are not a winter sports person, you could travel to India for the closing days of the sate festival. You will find entertainment both musical and  comical (ostrich and camel races). The weather in India will be perfect Southern California. Information at www.datefest.org
And of course, this is Oscar weekend. Sunday evening, the stars will be out and you can invite your friends for your own Oscar Night Party. If you are in the Temecula area, the Digiplex movie theater is putting on an Oscars contest. Pick the winners from five categories(Best Picture, Best Actress, Best Actor, Best Animated Film and Best Director) and win some movie passes. You can pick up a ballot at the movie theater or print one out from the theater's Facebook page. www.facebook.com/UlatrastarTower10. The theater is located at 27531 Ynez Road in Temecula.
Never say that there is nothing going on in the Inland Empire.

Is It Still Location, Location Location?

February 20, 2013
The old adage that the three most important items for buying and selling a house are "Location, Location, Location". While location is certainly a factor in the sale of a property, it may no longer be the most important factor. Why? Because many of today's buyers need loans in order to purchase a home and the amount of loan for which they qualify may not allow them to purchase in the choicest location in any given community. If a buyer only qualifies for a $250,000 loan amount and properties in the most desirable location have asking prices of $500,000 and up, pricing  rather than location will be an important factor in the choice of a home. This is not to say that location doesn't matter, it just indicates that there are many locations that can be desirable.
My favorite way of describing locations is to divide location into two parts: location within a community based on perception of desirability and location based on a particular neighborhood. I use a scale of 1 to 10, 10 being the most desirable and 1 the least. In the market area where i work the most, there are neighborhoods that are 8, 9, or 10, but there location in the community may be a 5, 6, or 7. Neighborhoods are great because the residents take pride in their homes and actually enjoy their neighborhood amenities.
I would argue that the three important factors in buying or in selling a property are Price, Condition and Location. When these factors are positive, a homeowner can sell at the highest possible price and a buyer will know that the purchase will be of good value.

Suggested List Price

February 19, 2013
Pricing a Property has always been a challenge. Whether the real estate market is in boom times or down times, finding the correct pricing range depends on the past sales of similar properties, the current market activity and the seller's motivation.
When an agent is contacted by a potential seller, viewing the property and preparing a comparative market analysis (CMA) is usually the starting point for suggesting a listing price. The more familiar the agent is with the real estate properties in the market area, the more useful the CMA will be. In the past several years when there were so few sales, finding similar properties was often difficult and required the agent to stretch comparisons.
An agent who is working full time at selling residential real estate should also be able to provide information about the current real estate market. For instance: How many properties are currently for sale?; how many properties are bank-owned?; how many are short sales?; are sellers receiving multiple offers?; what is the typical time from listing to offer?
A seller's motivation can also play a part in choosing the listing price. Sellers who read that property values have risen 20% may have expectations of a particular price for their property. Often sellers will say that they do not have to sell, but would like to make a move. Sometimes sellers have heard that a similar property in the neighborhood sold at X when the data shows that it sold at X-1 or X+1. A CMA should answer this issue. It is usual for sellers to believe in the specialness of their property. It is important for agents to listen to the seller. On the other hand it is important for the seller to listen to the agent. Together  they can arrive at a
price range that will result in the seller acheiving the goal of selling the property.

So You Want to Sell Your House.

February 18, 2013
You have been hearing in the media that home prices have increase a whopping 20% since this time last year. WOW! Maybe it is time to sell. Where does a homeowner start? On the Internet? Talking to friends and relatives? Looking up the value of your property on Zillow.com? Or the old fashioned way of contacting a local real estate agent?
All of the above may be useful ways to inform oneself about the current real estate market. However, my bias is obvious. I believe that serious sellers need to contact a local real estate agent. It could be the one who sold them the house. It could be one whom a friend refers because of a good past experience. It could be one who has the most ads in the local print material. Whatever way the serious home seller chooses to find an agent, an agent who works in and knows the local market will be the best  choice to market your property.
For as long as I can remember, editorials about selecting a real estate agent have advised potential sellers to interview three agents. Why three? I really do not know. These advisers do not always give a check list of what questions to ask or what answers will decide the best agent for you. I would suggest that asking for reference from their past clients might be a helpful step recognizing that folks generally do not like to give negative reviews.
In the end, selecting an agent who was recommended by a friend whom you know and respect may still be
a wise choice.

The Annual Date Festival is Opening This Morning

February 15, 2013
At 9:30 a.m. today, the Date Festival will open with the Blessing of the Dates . Prayers will be given for date palms, workers and equipment used to pick the dates. From a festival begun to celebrate the harvesting of the dates to a ten day musical and county fair event, the Date Festival has grown to include major live musical performances and unique events. The camel and ostrich races are certainly worth a trip to the Riverside County Fair Grounds. 82-503 Highway 111 in Indio. The Indio area is the major date producing area in the entire western hemisphere and this festival is worth packing up the family and attending on one of the ten days that it is taking place. The days are from today, February 15 though February 24. Admission is $9, $8 for Seniors 55 and older; $7 for ages 6-12. Parking is $7.
Information can be obtained at 760-863-8247, 800-811-FAIR or www.datefest.org

Closed over $4000,000 January 2013 and January 2012

February 14, 2013
The segment of our residential real estate market that remains sluggish is the sale of properties in the $400,000 and over bracket. When one considers that in 2005 and 2006 the median price in some of the communities of our Inland Southern California region had median prices at $400,000 and above, it is clear that while markets are recovering, they are not yet attracting many upper end buyers and sellers.
Here are the numbers for January 2013 and January 2012. They show little if any change in volume.
Banning/Beaumont..............2013/0........2012/1
Bloomington.......................2013/0........2012/0
Colton................................2013/0........2012/0
Fontana..............................2013/3........2012/1
Grand Terrace....................2013/0........2012/0
Highland.............................2013/1........2012/1
Loma Linda........................2013/1........2012/1
Mentone.............................2013/0........2012/0
Moreno Valley....................2013/0........2012/0
Redlands............................2013/8........2012/5
Rialto.................................2013/0........2012/0
Riverside............................2013/20......2012/19
San Bernardino...................2013/0........2012/1
Yucaipa/Calimesa...............2013/4........2012/5

February 1, 2013 -Listings, Pendings, Back-ups

February 13, 2013
As is my custom, I pulled the numbers for the listings, pendings and back-up categories on February 1, 2013. For some reason, I did not post them on this blog so I am doing so today. The numbers are following the trend set in the fourth quarter of 2012 with more properties under sale contracts than those that remain active.Here are the numbers.
Banning/Beaumont.............List/203........Pend/197........Back-up/86........Ratio/1.390
Bloomington......................List/18..........Pend/44..........Back-up/13........Ratio/3.167
Colton...............................List/37..........Pend/66..........Back-up/24........Ratio/2.432
Fontana.............................List/153........Pend/459........Back-up/123......Ratio/3.804
Grand Terrace...................List/7............Pend/23..........Back-up/9..........Ratio/4.571
Highland............................List/54..........Pend/109........Back-up/32........Ratio/2.611
Loma Linda.......................List/16..........Pend/31..........Back-up/10........Ratio/2.563
Mentone............................List/6............Pend/15..........Back-up/4..........Ratio/3.167
Moreno Valley...................List/135........Pend/376........Back-up/129......Ratio/3.741
Redlands............................List/124........Pend/90..........Back-up/50........Ratio/1.129
Rialto.................................List/69..........Pend/149........Back-up/65........Ratio/3.101
Riverside........................... List/389........Pend/574........Back-up/227......Ratio/2.059
San Bernardino..................List/273.........Pend/354........Back-up/114.....Ratio/1.714
Yucaipa/Calimesa..............List/98...........Pend/126........Back-up/44.......Ratio/1.735
What seems to be occurring is that properties are listed and are under contract almost immediately. Since escrow periods are typically 30 to 60 days, the pendings increase.

Median Prices - January 2013 and January 2012

February 12, 2013
In examining the data of closed residential real estate transactions reported through the CRMLS for January 2013 as compared to January 2012, I was pleased to find that the median prices had indeed risen. Withe the exception of Colton, the fourteen communities that I track all saw a nice upward trend in the median prices.
As always, I remind readers that the median prices I post are not derived by any academic method. They are the result of dividing the total number of sold properties by 2 and posting the price of the sale at that point.
Banning/ Beaumont............2013/170,000........2012/155,000
Bloomington......................2013/160,000........2012/132,000
Colton...............................2013/120,000........2012/122,000
Fontana.............................2013/235,000........2012/203,000
Grand Terrace...................2013/195,000........2012/155,000
Highland............................2013/185,000........2012/160,000
Loma Linda.......................2013/247,000........2012/230,000
Mentone............................2013/125/173........2012/115/130
Moreno Valley...................2013/179,000........2012/147,000
Redlands............................2013/250,000........2012/180,000
Rialto.................................2013/180,000........2012/163,000
Riverside............................2013/235,000........2012/198,000
San Bernardino..................2013/130,000........2012/115,000
Yucaipa/Calimesa..............2013/220,000........2012/189,000
It definitely seems that our housing market has turned a corner.

Closed Real Estate Sales- January 2013 and 2012

February 11, 2013
With the large increase in the number of properties that entered escrow in the past several months, I thought perhaps the number of closed residential properties would also have increased in January. As you an note from the numbers, that has really not yet been the case.The numbers are from the closed residential transactions reported though the CRMLS in the month of January.
Banning/Beaumont.........2013/104.......2012/96.....................Pendings/197
Bloomington..................2013/22.........2012/16.....................Pendings/44
Colton...........................2013/33.........2012/31.....................Pendings/66
Fontana.........................2013/188.......2012/196...................Pendings/459
Grand Terrace...............2013/10.........2012/14.....................Pendings/23
Highland........................2013/54.........2012/45.....................Pendings109
Loma Linda...................2013/14.........2012/16.....................Pendings/31
Mentone........................2013/6...........2012/7.......................Pendings/15
Moreno Valley...............2013/162.......2012/195..................Pendings/376
Redlands........................2013/62.........2012/49....................Pendings/90
Rialto.............................2013/63.........2012/97....................Pendings/149
Riverside........................2013/287.......2012/329..................Pendings/574
San Bernardino..............2013/135.......2012/189..................Pendings/354
Yucaipa/Calimesa..........2013/54.........2012/54....................Pendings/126
These numbers do not reflect the properties reported in the back-up category as usually those do have contingencies that create longer escrow times. Also, escrow lengths have become forty-five to sixty days. Lenders have been swamped with re-fi s which slow down loan processing.

Celebrate Lincoln

February 8, 2013
This weekend is the annual Lincoln Parade in Redlands. Because cold weather is predicted for Saturday, the marcher s will walk down Citrus Avenue to Redlands High School rather than the other way around. The Lincoln Pilgrimage will be held at Clock Auditorium on the Redlands High School Campus. Members of the Redlands Police Department will guide youths and their parents to their seats in the auditorium, After the program guests are encouraged to visit the Lincoln Shrine as there will be a program of Civil War reenactors.
The Fiends of A.K. Smiley Library will also be selling books about the Civil War and Abraham Lincoln from 11 a.m to 4 p.,. on Sunday, February 10. The sale will be held outdoors adjacent to the Lincoln Shrine. More than 300 individually priced books will be available. This is a wonderful opportunity for book collectors and for folks interested in the Civil War and in Lincoln stories.

Remodeling - The Best Bang For Your Buck

February 7, 2013
The National Association of Realtors has release the 2013 Remodeling Cost vs. Value report. Results of the report are summarized on NAR's consumer website HouseLogic.com. This website has a ggreat deal of good information, however, I found it easier to find the Cost Vs. Value information by googling Remodling Magazine.
The report is segmented into regions and then cities. I check out the Riverside area and found that the biggest bang for a homeowners
's buck is to improve the exterior of a property. Garage door replacements returned the highest percentage in terms of the cost of the replacement. Estimated cost was between a low of $1400 to a high of $2,900.If a homeowner spent the lesser amount, the estimated percentage return was 86,5%, if the higher number the return was 79.6%. Clearly it is a good idea to get rid of the old lift up, spring-loaded garage doors.
The next highest percentage return is the replacement of windows. Much of our older inventory of homes still have single pane windows. New vinyl or wood replacement windows should definitely be on a homeowner's remodeling list. (Vinyl replacement windows are listed as giving a higher percentage return than wood (approx.70%.).
The smallest return for monies spent was listed as a "home office remodel" at 32.3%. .
Updating the exterior features of a property seems to give a good boost to resale value.

What's a Buyer To Do?

February 6, 2013
With the very low inventory of properties available for purchase, many buyers are finding themselves at a loss as to how to become a successful purchaser. I would like to say that I am about to give them the secret password, but I can not. The best advice is to know what your top qualifying purchase price is and make any offer the very best that you can. Hoping for a counter offer from a seller who receives multiple offers seems to have become a losing strategy. Being the first offer in has also not guaranteed that a buyer will be successful. Sellers seem to have decided that they will not accept offers until the property has been exposed to the market for several days, if not for at least a week. Even full price offers are not necessarily accepted. (Sellers may owe a commission to the agent, but they do not have to sell to any buyers until they have entered into a contractual relationship with the buyer.)
Buyers and their agents are now including pictures of themselves and letters as to how much they love the property in the hope that the seller will choose their offer.
Preparation and persistence are the best strategies. Being prepared to bid more than the listing price and keeping yourself knowledgeable about your local real estate market is the key.

Title Reports are Important

February 5, 2013
One of the important steps in any purchase of a piece of real property is the obtaining of a Preliminary Title Report. The next very important step is to read the report. I suspect that often buyers receive a copy of the title report and file it away without reading it carefully. (Regrettfully, sometimes agents do not read it carefully, either.)
This report will list the owner - make sure the name matches that of the seller.
This report will list recorded liens against the property - property taxes, mortgages, and any judgement liens
This report will list easements - usually utility easements but good be others
This report will have an Assessor's map attached with a mark on the subject property - it should be on the property that is in that escrow. Be especially careful of condo units to be sure that the mark is on the unit you are buying.
This report will also refer to any other documents that may be recorded - Conditions, covenants and restrictions. It is important to request copies of these documents as these Ccrs could affect you use fo the property.
Any questions about this title report should be asked of the agent. The agent can then go to the title officer for any clarifications needed.

Maintaining A Foreclosure Property

February 4, 2013
It is an interesting state of affairs that property acquired through a foreclosure (trustee's sale in California) must be maintained. I do not see that this particular statute puts the same requirement on the homeowner who walks away or who lets the property deteriorate while the foreclosure is in process. However, as the state lawmakers wrestles with the number of properties that are in foreclosure and the blight that occurs when properties are no longer maintained, they passed a statute that imposes a$1,000 per day fine on all properties that are acquired though foreclosure. This includes both bank owned and any other person who purchased a foreclosed property.
Interpretations as to what "proper maintenance" is could differ. Does it mean repairing fences, replanting lawns, replacing shrubbery? Or is just removing trash and trimming up the landscaping that existed when the new owner came into title?
If you live adjacent to a neglected property, you might want to report it to a local code enforcement officer. We all know how a neglected property can impacta neightborhood.

Even Real Estate Agents Enjoy Super Bowl Sunday

February 1, 2013
I can remember a time when we would discuss whether or not to schedule open houses on Super Bowl Sundays. Even though Super Bowl Sunday was a special event, in the 1980s it had not yet become the big
party day that it now seems to be. The Wall Street Journal this morning devoted almost an entire section to Super Bowl Commentary. If you have access to today's Wall Street Journal, there are some really amusing articles - in particular, the article listing Super Party Rules II. For instance: #4" It is now illegal in 37 states to run out of guacamole in the first quarter." I don't know if this is a law in California, but fortunately, we live in Southern California and avocados are plentiful.
For those of us in the real estate profession, Super Bowl Sunday usually offers us a day with our families and friends. We can forego sitting open houses. More and more folks are at their residences, in their living rooms, family rooms or home theaters watching their televisions. While the games do not really begin until late afternoon, preparing for the party time can occupy the earlier part of the day.
My understanding is that CENTURY 21 is going to have an ad spot and we will be checking it out to see how it competes with the creative ads designed just for the Super Bowl broadcast. WE hope that buying a home becomes as big an event in your lives as watching the Super Bowl has become.