Permitted VS Non-Permitted Work

Have you ever wondered what the big deal is about getting a permit when doing work on your home? Or why sometimes you hear someone say the work is not permitted but it is up to code? What does this all mean and how does it affect you as a buyer or seller?
Well, first let me tackle the phrase "not permitted but up to code". This could be a big No No folks. This basically means that the people who did the work on your home, whether it be a new shower, new kitchen or a whole new room, are telling you that all the work they did, according to them, complies with the current code laws and restrictions. But you can never be sure of that until you have someone look over the work that was done and give you a permit for it. While the work that was done may be "up to code" if something happens to your home, like a fire, if you did not get a permit, it is possible you could be held liable on criminal charges.
But aren't there a ton of homes out there that have had work done on them without getting permits, and if so, why? Yes, a lot of people do work without getting permits. This is very common. Some people think if they are just re-doing a kitchen to make it more modern, that they don't want to pay the government money to do so. But there are risk factors involved with doing this. Like I said above, there is the chance that something could go terribly wrong in your home and if someone gets hurt because of un-permitted work, well, that is just scary. But also, lets say your local fix-it man moves your water heater somewhere else in your home and when he does, the size of the pipes he installs are not correct. In fact, they are only 1/4" too small. Well if that water heater breaks or leaks and causes damage to your home, the insurance company that you call to help you fix all this damage may deny helping you since the work was not permitted. Ouch!
And here is the big one that a lot of people run across. Someone expands their home to add on a new room and make the house bigger but they don't get permits to do so. For example, Mr. Smith had a 1,200sq ft house and added 400sq ft to make his home a total of 1,600sq ft.  Well years down the line, Mr Smith wants to sell his home and he lists it so that the price of the home is comparable to other homes near that same size. Then Mr. Buyer comes, makes an offer and starts the process with getting his loan for this home. Because this extra space is not permitted, appraisers can only base their appraisal of his home off other comparable home sales that are around 1,200sqft and not 1,600 sqft. And when an appraiser determines the value of Mr. Smith's home, he then has to tell Mr. Buyer's loan officer and if the value of the home is less than what they accepted the offer at, then the loan people won't give Mr. Buyer the full loan he asked for. So Mr Smith will either have to reduce the sale price of his home to be comparable to smaller house close to 1200 sq ft or they will have to look into other options that may not include getting a loan for this house.  There are also limits on how close to your property line you can actually build out to. Another bad scenario is that you build out and it's too close to the lot line and your neighbor's property. Well, your neighbor Bob has always had a nasty way about him and he doesn't like you. All Bob has to do is call the city and they can come make you tear it all down. Another Ouch!
So, yes permits can cost us money, but in the long run they could actually save us a lot more money and certainly a lot of headaches. 

                                                                           
Here are a couple of links to some local Building and Safety departments that can help you find out more about permits.
http://ladbs.org/LADBSWeb/building-permit-records.jsf
http://ladbs.org/LADBSWeb/map-vannuys.jsf
http://www.burbankca.gov/index.aspx?page=121
http://www.cityofcalabasas.com/BuildingSafety/main.html
http://www.ci.agoura-hills.ca.us/index.aspx?page=28
http://www.ci.glendale.ca.us/planning/building_and_safety_division.asp

Will The Inventory of Homes Get Better Any Time Soon?

It will be March 2013 in a few days and the real estate market is on everyone's mind right now. It is turning out to be common that houses in sought-after areas are going $10k to $40k or more over asking. And this has everyone asking..."Is the inventory of houses for sale going to grow in numbers any time soon?" I've said it before, and I will say it again: I'm not a fortune teller for Los Angeles Real Estate but my guess is, Yes. The inventory of homes for sale on the market will begin to pick up sometime around May. It is a common trend that there are less houses for sale from November to March. A lot of this has to do with school's schedules for families. People are usually more open to moving in the summer time when the kids are out of school and it is easier on the parents. Also, there is something to be said for longer days with more hours of sunlight and people feeling more comfortable about making a move then as well.  But...I can not be sure that just because we may have a steady rise in the number of houses that may come on the market for sale, doesn't mean the competition we are seeing out there right now will get better. I think it may ease up slightly but I feel that there are more buyers that will be coming out to look for homes as soon as tax season is over and people finally understand their financial situation and are able to meet with a loan person to get pre-approved for a loan. So, while we are seeing multiple bids on houses, as many as 20 or more sometimes, we may feel the ease on the number of offers on the table this coming Spring. But my guess is that multiple offers may be here to stay for quite some time. So, when you are ready to buy or sell your home, please give me a call, and let's get moving! www.amberdolle.com

                                                                            

Now Is A Great Time To Sell Your Home!

Hello 2013 and welcome to a seller's market once again. If you have been keeping up with Real Estate headlines here in LA then you have surely seen headlines that read something like..."Real Estate Prices are up!" or "Multiple offers on multiple homes".  I'm literally being stopped by people in the market or coffee shop asking me about the exciting news in Real Estate that is going on. I think people that have been waiting to sell, or are just thinking about selling, are finally getting excited about this change in the market. Here is some of what is going on:

1. Interest rates for home loans are still very low for buyers. But they may not stay this way for long so buyers are getting out there to get something now. 
2. There aren't a lot of homes for sale on the market right now (which is a huge reason you should be listing your home now)
3. There are so many buyers looking for homes and just not enough for sale. 
4. While prices have gone up and continue to gain momentum quickly, buyers have a feeling that now will be a better time to buy than next year or years after that (and they may be right)
5. There will be more buyers coming to the market very shortly when everyone gets their taxes finished and see where they stand financially in terms of a home purchase. 

I'm not going to claim that I am a fortune teller for where the market is headed, but if you read any of my past blogs regarding the future of LA real estate, you will see that I have been right on the money with every single one of them. And I believe that Now Is A Great Time To Sell Your Home!! Call me if you are considering selling your home. You need a strong realtor that knows what is going on and how to market your place right and I am just the Realtor to do that. www.amberdolle.com

What To Expect When Inspecting

The process of buying or selling a home can sometimes be a lot to take it. There are a lot of hoops to jump though and sometimes, you can be faced with unexpected challenges or information. Here in this article, I would like to give you an idea of what you can expect during the home inspection process.
So you've had your offer accepted or you have accepted an offer and now things are moving forward.  Sometime usually within the first week to two weeks you will have an inspector come into the home and look around for things that the typical person may not see or recognize on their own.  This process typically takes about 2-4 hours for a standard sized home but could be more for a large home or one that may have a lot of amenities.
 When it comes to the inspection process, let me make this analogy.  Let's say you went in to the doctor to have your body examined to make sure everything was working and looking good. Could you imagine at the end of that appointment all the things you may hear? What if you read that list and it said:
1)You have a funny looking mole on your arm that needs to be looked at further
2) your nose is crooked but we can fix that
3) the levels in your blood work are a little off and we will do more tests to see what that is
4) you put on 15lbs since your last visit and we need to talk about that
5) those headaches you mentioned are a concern and we should run a scan
6) and also on your eye exam you said you saw a "Q" but that was an "O"

Now you may think and know that everything about you is fine. Your nose was a childhood accident, but it works fine, that mole has been looked at before, these headaches have been happening your whole life etc...  Now think of yourself in this situation as the seller and someone else is in the room hearing all this news is  the buyer. That is kind of what it feels like in a home inspection. As the seller, you may know a lot of what is reported and that it has already been fixed, or maybe you've learned to live with it, or perhaps it does indeed need to be further looked at and remedied. But as the buyer, this can feel like a lot of overwhelming information and mostly bad news. And maybe it is...but maybe it isn't.  Things can be further inspected by specialists, things can be fixed or paid for to be fixed, or things can be left how they are. And these are the choices as a buyer and seller you will have to make.
It may be more common that in a buyer's market (where the buyer may have the advantage)  that some of the issues found may be fixed by the seller. In a seller's market, it may behoove the seller to fix larger issues that any subsequent buyer would be concerned about as well. But you may find yourself, in any market, with the seller saying they are unwilling to fix or pay for anything. And then you have to make choices about how you feel about that decision and move forward or maybe move on to another home. But, when you are the buyer, especially a first-time buyer, ask your agent about each step throughout the process of a sale and what you should expect. It is better to go into each situation knowing an idea of the possible outcomes as oppose to being blind-sided with a shocking bit of information. And know that even if your real estate agent keeps you informed and educated along the way, there is always the chance that something new and unexpected may come up, so always expect the unexpected and if you are looking to buy or sell, please give me a call and let me help you get moving!

                                                                           

Marijuana Shops In Your Neighborhood

Well Los Angeles, if you have taken a look around lately you will be sure to find a marijuana shop somewhere nearby. Of course, there are a lot of supporters of these and the overall legalization of marijuana. But I'm not writing this to get into a debate about whether that is good or bad, but rather to bring this issue closer to home. Literally. As in, are these shops in your neighborhood and if so, does that effect your home's value? Well, these shops that are opening up around town in the large numbers happen to be a pretty recent thing so it's hard to say if and how they will effect your neighborhood.  But in my neighborhood, there are already three or more marijuana shops within one block of where I live. This past Sunday my neighborhood had our annual neighborhood watch meeting where the topic of discussion was said to be about some recent car break-ins. Well, that topic was covered then dropped pretty quickly when the topic of marijuana shops came up. There seemed to be an overall concern for the amount of stores that have opened up in on our streets. Most people would agree that if you have the choice between liquor stores or marijuana shops, that the shops would be less troublesome, right? I mean, we don't usually think of the people smoking pot as shifty as someone who has over abused alcohol.  But does that mean that we still are settling for the lesser of two evils?  Some of the things mentioned in our meeting were things like the cars that now come and park in front of our houses to smoke. The littering of the green medical bottles that the marijuana is sold in.  The all-night hours of these places that attract customers to our neighborhood during late hours. And there were also people who mentioned that kids would just sit out on the curb in front of houses and smoke. And while all of this may not be legal, it may also be on the bottom of the priority list for a police officer to respond to with all the other issues they are over loaded with already.  And when people are out looking to buy homes, are these stores a deterrent? Do people view them in the same manor that strip clubs or liquor stores are seen?  And if they are, then how does it look to have 3 of them within one block of each other? I think it may be too early to see the full effect these will have on the desirability of a particular neighborhood.  But this will be an issue that will come up in the near future on our ballets for a vote.
 
                                                                 

"Best and Final"- Have You Been Hearing This A Lot Lately?

At this time, the market has switched from a buyer's market to a seller's market. A lot of homes here in Los Angeles are getting multiply offers on them and you may be one of the buyers who has put in an offer, and received a counter offer that simply said "best and final". What does that mean? And what should I do with that? Well, first things first.  "Best and Final" is referring to you making your best offer you are willing to make to the seller and there will be no more counter offers after that. The seller will simply choose the most appealing offer from what they receive. And what is most appealing to one seller, may not be the same for the next seller.  So have your agent call the listing agent and ask the question, "What is it your seller is looking for in the offer they will choose?"  This bit of information, if provided will go a long way.  Do they want a short escrow? Do they not want to make any repairs to the house? Do they want a very qualified buyer in terms of a large down payment or perhaps a high fico score? Or maybe, they just want the highest priced offer. There are a lot of ways to make your offer more appealing to the seller, which I will not get into simply because, well....it's not that simple to explain.  But one piece of advice I can leave you with is: If it comes down to the dollar amount, think to yourself, "What is the price I want to pay for this home?" After you have that number, then think to yourself this question, "If I lost this house to a higher bid, at what price would I be telling myself, man...I would have paid that to get this home." Now write down that number, scratch and ignore the first one you had written down, and tell your agent to put the 2nd price you came up with on that offer. If you are up against multiply offers again and again, please remember, you are not alone. And do yourself the favor of finding a good agent, hopefully me, that will know about how to make your offer look as good as it can and get you a home.

Property Taxes Calendar for Southern California

In case anyone couldn't sleep at night because they were up thinking about property taxes, here you go....

July 1               is the beginning of the fiscal year

October 1-31   Property Tax bills mailed

November 1     Property tax 1st installment due

December 10    Property Tax 1st installment delinquent

January 1         Assessment date. Taxes become lien on property at 12:01AM

February 1       Property tax 2nd installment due

February 15      Last date to file home owners exemptions

April 10            Property tax 2nd installment delinquent

June 30            Last day of fiscal year.  Delinquent property taxes become tax default for non payment of taxes.

The amount of California property taxes are approximately 1.25 percent of the selling price


You can find more information about this and other exciting topics on a government website or try seeing more here http://www.boe.ca.gov/proptaxes/pdf/lta12003.pdf

Home Insurance And Dogs

I just heard some interesting information that I had not heard before. It seems as if home insurance companies care about the type of dog you have. It may be possible that if you own a certain breed of dog, like a pit bull, that they could either deny you coverage or not cover you if your dog happens to bite someone. So maybe check with your home insurance company before buying or adopting a dog to see if this is true and if so, if it effects you.

Here is an article in Forbes about this topic http://www.forbes.com/sites/cateyhill/2012/05/30/11-riskiest-dog-breeds-for-homeowners-and-renters/




Please verify with your own home insurance company to see if this applies you to.

Farmers Markets In The Valley

I don't know about you but I love our Farmers Markets. Not only do I like to support our local growers, but I like grocery shopping outdoors in our beautiful weather. I made a list below of all the Farmers Markets in the valley, their time and location. These may change so check with the websites I attached to make sure.


Sherman Oaks
When: Tuesdays 3PM-7PM
Where: 14006 Riverside Dr
More info: https://www.facebook.com/pages/Sherman-Oaks-Tuesday-Farmers-Market/217022984981269

Studio City
When: Sundays 8AM-2PM
Where: On Ventura Place between Laurel Canyon and Ventura Blvd
More info: http://studiocityfarmersmarket.com/

Encino
When: Sundays 8AM-1PM
Where: 17400 Victory Blvd. Van Nuys, CA 91406
More info:  http://encinofarmersmarket.org/

Burbank
When: Saturdays 8AM-12:30PM
Where: Third St and Orange Grove behind City Hall
More info: http://www.burbankfarmersmarket.org/

North Hollywood (New)
When: Saturdays 9AM-2PM
Where: On Bakman between Weddington and Chandler
More info: http://nohomarket.org/

Glendale
When: Thursdays 9:30-1:30
Where: 100 N Brand Blvd, Glendale, 91205.

Westlake Village
When: Sundays. 10am-2pm
Where: 2797 Agoura Rd Westlake Village, CA
More info: https://www.facebook.com/WestlakeVillageFM

Northridge
When: Tuesdays 10am-2PM
Where: CSUN 18111 Nordhoff. Northridge CA 91330
More Info:  https://www.facebook.com/CCFMInc

Calabasas
When: Saturdays 8AM-1PM
Where: 23504 Calabasas Rd. Calabasas CA 91302
https://www.facebook.com/CalabasasFM

FHA Regulations Regarding Condos Are Loosening

Have you been burdened by trying to buy or sell a condo because of the strict FHA regulations? If you own a condo, chances are you know about these. There are a lot of rules and guidelines that come with trying to purchase homes using FHA financing (which is the largest source of low-down payments on mortgages) In the past, in order to buy a condo using FHA, they have had rules that say things like: you can't buy a condo if more than 25% of the buildings' space is used for commercial or is not part of the living space of a condo. They've also put strict regulations on the owner to renter ratio in a complex saying that if a certain amount of the condos are rented, then the whole building can not qualify for someone who wants to use FHA financing to buy a unit in that building. This has been tough to work around for complex in cities that are becoming very popular called "mixed use" or "live/work" condos. This has also been a huge challenge in these hard financial times where people couldn't sell their condos when they lost so much equity in them, so instead, decided to rent them.  This made it hard for other owners that needed to sell their unit, but now had a lot of units in their building that were being rented.
Well, we are seeing some light at the end of this tunnel and here is what has been changing with FHA and condos:

*now, condo buildings can have up to 35% commercial use, and in certain circumstances even up to 50%

*In existing developments, one or more investors are now allowed to own up to 50% of the total units provided that at least half of the units are owner-occupied.

*and lastly, FHA had language written in their regulations that could potentially put condo board members at risk of being heavily fined or even face jail time by admitting, or not admitting, to conditions they knew about their building. This language has now changed and does not put board members of condo buildings in such a burdensome crossroads of liability with these things. 

All in all, these are positive steps in the right direction and will help more sales of condo units which is great news for both sellers and buyer.  You can find more information about FHA regulations and condos here: http://speakingofrealestate.blogs.realtor.org/2012/09/13/fha-eases-some-key-condo-financing-limits/

Multiple Offers City

The days of multiple offers is back. If you are a buyer and you feel like you keep "hitting the wall", as they say, with putting in offers on homes and being out bid, you are not alone. I just want to post this so that you are aware that there are a lot of homes that have 10, 20, even 30 offers in on them and most are over asking price. There are options of how you can work with this type of market, but it is very important that you are using a local realtor to work with you. The relationships we build between us can help when putting an offer in on a property. All things being equal with two different offers, if I know the realtor selling the home, and the other person's realtor is from somewhere else and they don't have a relationship with the selling realtor, they may choose to work with me just because they know me. Why you ask? Because I may have worked on deals with them in the past and they have the knowledge of how I work, whereas they are unfamiliar with the other realtor and that person could potentially be a bad business risk.  So, look for a local realtor during these times of multiply offers so that you have better chances of getting the home you put the offer on.

Looking For A Home With Room For A Office?

When looking to buy a home, many people say they would like 4 bedrooms when actually they are looking for 3 bedrooms but they need that extra bedroom for an office. Hopefully you are already working with a Realtor and they will know what to look for.  But if you are perusing online yourself or going to open houses, think about this....When a real estate agent lists a home for sale, the number of bedrooms they have to put in the MLS must be rooms that have closets in them. So, to call something a "bedroom", it must have 4 walls and a closet. Very often a house will have 3 bedrooms listed, and then a loft or a den as well.  A lot of times, lofts and dens make perfect offices and you don't really need a bedroom.  So even though you may think you need that extra "bedroom" for your office, you should still keep an eye out for houses that are listed as having one less bedroom than you need, then read the description of the house and look for the realtor to have written something like, "Has a den that can be used as a room" or "nice loft" and even sometimes you may see "Guest room in back of house".  A guest house or guest room off the back of the house may also be left off the number of rooms listed in the house so to help in your search, make sure you take these things into consideration when looking for your home.

Top 10 Things Home Owners Should Not Do When Showing Their Home

I just read this list in "Realtor" magazine and I thought I would share. I have experienced each one of these with clients and these things are easily avoidable. Take notes home owners....

1. Leftover home owners

By far, one of the top offenses cited by buyer’s agents was home owners still lingering around when agents arrived with clients to preview the home. Awkward encounters ranged from buyers finding sellers taking a shower, asleep in the bed, to even the “stalker sellers” who liked to follow buyers and the agent all over the home to see what they thought.
With the exception of the “stalker seller,” many of the home owners who were still at home blamed their listing agent for not giving them enough advance notice about the appointment prior.

2. Pets and their messes

Numerous agents also cited the not-so-friendly dog and kitty encounters as a top offense. Even pets left in a crate can pose a distraction since they might make noise the entire time others are in the house. Plus, if they seem mean, the buyer might not even step in the room.
Vicki Robinson, ABR, CRS, broker with Fonville Morisey Realty in Raleigh, N.C., says she recently was given showing instructions from a listing agent who told her the family’s “friendly dog” would be at home. But when Robinson unlocked the front door with her client for the showing, a pit bull was staring down at them from the top of the staircase, growling. “We closed the door and left!” she says.

3. Bad smells

A displeasing smell can really turn buyers off. Common offenses include cooking smells lingering around the home, such as garlic, fried bacon, or fish. Also, watch for cigarette smoke and animal smells, agents say.
“Sellers get immune to the smell that their pets have embedded on their property,” says Halina Degnan with Gables & Gates, REALTORS®, in Knoxville, Tenn. “Anyone opening the door will smell it immediately -- even if there are air fresheners trying to cover up the smell. If you have a pet, there will be an odor. Don’t send your buyers away: Paint and clean the carpeting. Take the odor seriously and do what is needed, even if it means replacing the carpet.”

4. Critters running wild

Wild animals and pests roaming around is a surefire way to send buyers running. Agents described worms crawling on the floor and bats and raccoons lounging in the attic. “I showed a house in Utah once with a baby alligator/crocodile [in a cage] in the dining room,” Kristi Hutchings, ABR, SFR, with the Wendy K Team The Real Estate Group in Utah.

5. Odd home makeovers

Do-it-yourself disasters were also prevalent, like doors opening the wrong way or unprofessional paint jobs. Also, rooms not being used for their intended purposes can confuse buyers, such as an office being used as a bedroom even though it has no closet, says broker Elaine Byrne with Elaine Byrne Realty in Austin, Texas.

6. Dirt and clutter

There were a number of offenses cited when it came to cleanliness: Dirty laundry piles, unflushed toilets, dishes on the counter or in the sink, unmade beds, clothes scattered about, soiled carpets, dirty air conditioner filters, and overflowing trash cans.
“One of the worst things I have seen is piles and piles of clothes in every room,” says Chris Leach, ABR, with Medel & Associates Realty in Riverside, Calif. “It was like an obstacle trying to walk around the mess.”

7. Personal information left in plain sight

Sellers should be careful not to leave in plain sight important documents that may pique buyers’ curiosity. Some agents say they’ve seen personal information like bank and credit card statements—even mortgage payoff notices—left on the kitchen counter.
“Buyers are nosey,” says Christopher Handy, ABR, GREEN, broker-associate with Bosshardt Realty Services LLC in Gainesville, Fla. “I’ve even seen the contract for the sellers’ next purchase sitting on the kitchen countertop or ‘final notice’ bills.”

8. Too dark

Dark or dimly lit houses aren’t showing the home in the best light.
“Particularly [homes lit with] CFL bulbs,” says Yvette Chisholm, ABR, CRS, associate broker with Long & Foster Real Estate in Rockville, Md. “By the time [the bulbs] light up, the buyer is gone.” Energy efficient bulbs need time to warm up before they are at their brightest, so staging professionals usually recommend agents arrive early to a showing to turn on any light fixtures with CFL bulbs at least 10 minutes prior.

9. Keys missing from lockboxes

All too often, agents arrive at a listing appointment with their client only to find there’s no key to get in. “I actually had a [seller’s] agent who wanted me to open the door for my clients by going through the dog run as a large dog barked like crazy,” says Hutchings.

10. Distracting photos

Watch the photos displayed on the walls too, agents warn. Tara Hayes, ABR, e-PRO, with Rector-Hayden, REALTORS®, in Winchester, Ky., recalls showing a family a home that had life-sized, nude photos hanging, which left her clients racing for the door covering their eyes.
Similarly, Angela Gandolfo, ABR, SFR, with Citywide Real Estate & Investment in Phoenix, recalls showing a home to a client, who was staring at a painting in the master bedroom of a woman in lingerie. “Isn’t that the owner?” the client asked. “She was also the real estate agent!” Gandolfo says.

Who says that nude photo is offensive? Maybe it's the selling point of the house:) 

Why Do My Offers Keep Getting Outbid? And What Does The Real Estate Market Have In Store For Me In 2013?

It's December 20, 2012 and the real estate market here in LA took a sharp turn. If you have been in the market to buy a home in the past 6 months, you will have definitely seen this change. Have you put offers in on homes and been outbid? Have you even put the full asking price in on a home and still not gotten it? You are not alone. Far from it. There are many people out there that are looking to purchase a home and have not been successful with their offers. Here is what is going on with the market as of today. It is true that prices are on the rise. According to the MLS, the average single family resident home's sold price in Valley Village from 11/1/2011 to 12/1/2011 was $589,250 compared to the average sold price from 11/1/2012 to 12/1/2012 which was $784, 552. And in North Hollywood from 11/1/2011 to 12/1/2011 the average home's sale price was $326,104 compared to 11/1/2012 to 12/1/2012 which was $345, 891.  One thing you can not do is look at where the market was six months ago and expect those prices. The market is always changing and when the market is on the rise or is falling, you can only compare prices to a month or two ago.

Not only are home prices rising but as of today, the number of homes on the market for sale is less that the number of buyers looking to buy a home. So the supply of homes for sale is short.  Also, there are still a lot of investors out buying homes with the hopes that they can buy a home today, fix it up, and sell it in a few months while the market is still on the rise. You may have heard that you were outbid by an "all cash offer".  A lot of times investors use all cash to buy a home and sometimes the seller feels more secure about selling their home to an all cash offer rather than someone who uses a loan to get a home. Loans are not always guaranteed and could fall through, even with the best of the best people looking to get them. Okay, so knowing all this, what do you do now? Well, one option is to raise your budget so you can get the home you would like. Although the market is rising we still have amazing prices from where the market was at a number of years back. We also still have fabulous interest rates available and those won't be around forever either. But maybe you are already at the top of your budget. Another option is to look for something different. Maybe try a different area, or a smaller house or look at some great condos. Another thing you can do when making an offer on a home is ask your real estate agent to write a very nice cover letter about you, informing the seller of how interested you are in their lovely home and what your plans are for their home. Not everyone selling is looking for top dollar. Remember, these are people's homes and people have fond memories made there and personal touches they worked hard on in their homes. They have neighbors they have formed friendships with and some people truly want a nice person that will take care of their home when they leave. It is also possible that your agent can present your offer in person to the seller and hopefully tell them many great things about you and your plans for their home. I know this market can be discouraging for those of you out there that are feeling like none of your offers are working for you but there are options and as always, make sure you are working with a realtor that is on your side and really cares for you as a person and professionally as a client. And when you are looking to buy or sell, please give me a call and I will be more than happy to help with all your real estate needs www.amberdolle.com

What is a Probate? And What is a Trust?

When my client's are looking for homes, sometimes they use internet search sites such as Realtor.com and Zillow and then I get questions about terms they find on these sites or hear from other sources.  One of the big questions I hear a lot is "What is a Trustee Sale?" and "What is a probate sale?".   Without getting into too many specifics I will try to answer this for all of you wondering the same thing.


First off, every state has very different laws and regulations in regards to real estate.  So this may not pertain to you if you are looking to buy or sell in a place other than California. Now, to be clear, there is a large difference between a "trust sale" and a "trustee's sale".  A trustee's sale, here in California, simply put, is a foreclosure. I believe what most people are really asking about, when it comes to these terms, has to do with probates.

I have included the following information that is written on the California Association of Realtor's webite CAR.ORG

Q 1.  What is probate?

A "Probate" is the court-supervised administration of a decedent's estate. The procedure begins with the filing of a petition with a probate court for the probate of a decedent's will or for letters of administration if there is no will.

The probate proceeding involves "proving the will" (if there is a will), appointing the personal representative, determining the decedent's assets which are subject to probate, determining and paying the decedent's debts and taxes, and transferring title to the beneficiaries (if there is a will) or to the heirs at law (if there is no will).

Q 2.  What property is subject to probate?

A The probate proceeding, generally, is required only for property to which the decedent directly held title at his or her death, and not property which is indirectly held, property owned by contract, or which passes by operation of law to another at the decedent's death.

Q 3.  What property is not subject to probate?

A  The following property is not subject to probate administration:

1. Property held in a trust (Cal. Prob. Code § § 5000, 13050, Estate of Heigho (1960), 186 Cal. App. 2d 360, 364-365);
    
2. Property held by decedent as a fiduciary or as trustee for another (e.g., Totten Trust) (Cal. Prob. Code § § 80, 5000);
    
3. Property held in joint tenancy (Cal. Prob. Code § § 5304,  13050);
    
4. Property held in a multi-party account (Cal. Prob. Code §§ 5304, 13050);
    
5. Property which is a life estate (Cal. Prob. Code § 13050);
    
6. Property held as community property with the right of survivorship (Cal. Civ. Code § 682.1);                                                                                                                                             
   
   Okay, so you don't want your property to go through probate? Then something you can do is put your property into a "Trust". This next bit of information was also taken from CAR.org
   
   In an attempt to avoid probate costs, court supervision, and public access to private information, many people put title in their property into a revocable living trust.
   First, the trust document needs to be created designating the names of the trustors, trustees, and beneficiaries.
   Second, title of all real (and personal) property needs to be placed into the trust in the following way:
   

   “We, John Smith and Mary Smith, husband and wife, quitclaim to John Smith and Mary Smith, co-trustees of the Smith Family Trust, the real property…”

   Furthermore, unless the trust instrument expressly provides other wise, community property that is transferred into a revocable living trust remains community property during the marriage, regardless of the identity of the trustee, if the trust provides that the power to modify the trust may be exercised only with the joinder or consent of both spouses.                                                                                                                                                                                                                                                                                                                                                                                                                                       I hope you this answered questions you have about probates and trusts. Always consult your Realtor or an attorney when you have questions regarding your property. And feel free to call me when you are ready to buy or sell www.amberdolle.com