Get It While The Gett'n Is Good

This is something my mother used to say to me all the time when I was young...and I'm now passing that advice onto you. We have seen the market make a come back. And last spring my advice to all my buyers was to buy now...and I was right on. Check out my article from Spring 2012 where I said that we have seen the bottom of the market, and now it's on it's way back up.  And also check out my article here from June 2012 when I addressed the rumors of a "double dip" that people were fearing where it was said that prices might take an even lower dip than where they were. I called the bluff on this rumor as well. I will never claim that I can predict the market without fail every time. But I have my finger right on it's pulse and I feel that, although the rates have risen a bit, you are still getting a phenomenal deal with the loan rates right now which are about 4.38%.  Even though the prices of houses have taken a turn upward and there are multiple offers on a lot of homes...the real savings is in the loan rate you obtain. So if you are thinking about buying, but you've heard that the market may level out in terms of house prices or even go down a bit...don't wait for this supposed thing to happen. Because whether or not it happens, the rates are only going up from here and in a year from now, you could be paying hundreds of dollars more per month on the same priced house you are looking at today. So....Get It While The Gett'n Is Good!!

                                                                    

Just Sold! 1412 E Wingate, Covina CA

Just sold this lovely home to Guy and Jessica. They are first time home buyers and are very excited about being home owners


                                                                

Still Waiting For The Right Time To Buy? You May Be Missing Your Window

Don't look back in a year from now and wish you would have done something. Yes, prices on homes have been rising and the market has been competitive. And yes, now we are seeing rates on loans go up as well. But are you sitting back watching all this, and waiting for the right time to buy? Are you waiting for that "bubble" to burst and the rates to go back down so that you can get that good deal on a house. I wouldn't hold your breathe if I were you. We've already watched the market take off so fast it could have given us a whip lash. And we have sat back and watched all these people buy homes in multiple offers and bid over asking for these homes. And it seems that you may think those people bought at the wrong time?  Well...I believe the people who have purchased homes so far this year were right on the money. While they may have had to jump through some hoops to get that house and they may have had to bid over asking, they were able to lock in these unbelievable rates on loans...and that is where the real money is saved. Because, here is the math...if you paid $30k more for a $500k home (with 20% down) than it was worth 6 months ago...well, that is $30k, and nothing more. But if your interest rate, when you bought this house at $530k, was 3.6% then you really got a great deal.  If you buy a house for $530k today (same 20% down) and you lock in a rate of 4.6% then you will be paying over $88k more for that home...and the rates will eventually only be going up. (See the math below) The real savings and deals on homes are found in the interest rates we have today. So don't look back in a year from now and wish you could have made a move...go ahead and do it today.

$530,000 price
$106,000 is 20% down payment
$424,000 total amount borrowed

3.6% loan for $424,000 = $1,927/ month
$1,927/mo x 360 months = $693,720
-----------------------------------------------------
$530,000 price
$106,000 is 20% down payment
$424,000 total amount borrowed

4.6% loan for $424,000 = $2,173/ month
$2,173/mo x 360 months = $782,280
------------------------------------------------------
(total you pay with 4.6%) - (total you pay with 3.6%)

$782,280 - $693,720 = $88,560

                                                             

All-Cash, No Contingency Home Buyers. Where's It All Coming From?

If you are out looking for a home, and had have make a couple offers that were not accepted, chances are, you have heard that someone else with all-cash, and maybe even, no contingencies, got their offer accepted. These types of offers are spreading like wild fire. But...where is all this cash coming from? Who are all these people who have this type of money available? And no contingencies? That sounds crazy, right? To be honest, I have had a number of buyer ask me if all these people with all this cash are foreign investors. Everyone has their own idea, or conspiracy theory, of what is going on. Well...who better to ask than a real estate agent? So here we go:

Yes, there are foreign buyers out there right now, but...when has that not been the case? This is LA and we have always had a large variety of foreign money here. And no...I'm pretty sure there isn't someone sitting somewhere like China on the phone saying "buy now".  So, yes, there are a lot of foreign buyers in the market right now, but that isn't everyone with all-cash.

What about the real estate investors or "flippers"? Is it them doing these deals with all-cash? Yes, there are a number of investors and flippers out there buying houses with all-cash. But fact is, I've been on the buying side of a lot of deals, and I've seen houses being sold to all-cash buyers that weren't worth flipping because they were in good shape and there wouldn't have been enough room for someone to buy the house, put $ into it, then resell for a profit. And the people buying it, weren't going to rent it out, so, it's not totally all the investors either. Although, some investors are buying houses to rent out and sell in a few years hoping to turn a profit that way.

So...let me turn this article back on to you, the reader. Chances are, if you are reading this, that you are out looking for a home to buy. Well, where did you get the money for your down payment? Have you been saving it for when you felt comfortable buying? Or maybe it was left to you in an inheritance? Perhaps a family member who may have thought of leaving you some money after their passing decided to go ahead and gift it to you now while it was a good time to buy?  Well, these are the other people with all-cash. Some people are very meticulous about saving money and now that time has come where they feel comfortable about the economy and where it is headed, they are ready to spend it, on what they hope will be a good investment in their future. And there are a lot of people that inherited money years ago, or even just recently, but now this is the time to put it towards a home before prices soar again.

 So, there you have it. That is a mix of where the all-cash buyers are coming from. And it's no conspiracy. I mean, why are you looking to buy right now? Well, whatever your answer is, there are a lot of other people thinking the exact same thing. It's no secret. Prices are going up, rates are incredibly low, and people are feeling good about the economy.

And last but not least, the "no contingency" buyers. I honestly don't know what to make of this one. It is a risky move but if this is what you think will get you the house, and there is a good chance it might, than maybe it is something you are up for. Or maybe not. It really is a person to person decision you and your real estate agent should talk about. As always, if you are looking to buy or sell, feel free to call me. I will be available to answer any questions you may have about the real estate market any time as well.

                                                                    

Does My Agent Get Kick Backs From Recommending Certain Businesses Or Vendors?

Something tells me that you have thought to yourself, "Why is my real estate agent recommending these certain professional people and what do they get out it?".  Sometimes I can tell that my clients think this even if they don't ask...but, why not ask?  I say go ahead and see what your agent says. Because here is the scoop you've all been waiting for:

There are a number of people your agent might suggest you call and see if they can help you during your home buying process. Some of these people are general inspectors, roof, chimney and sewer inspectors. You may get the contact info of a few different loan officers and also an escrow company.  So why are you getting these people's contact information? And what do I get out of giving them to you? Well.....I get peace of mind.  Not the answer you thought you'd hear, right? Well, it's true. These people are people that I have worked with before or have been referred to me by other people I trust. When it comes to getting a house sold, whether you are on the selling side or buying, it is important that you use people that are good at what they do. It's not just as simple as calling an inspector and asking for their prices. I mean, does this inspector really know what they are talking about? Are they going to explain it to you in a way that you can understand? Are they going to point out the difference between what type of work needs to be done now and what can be done in the future? If you were looking to get your car repaired, would you just look over the yellow pages and choose someone or would you go with a person that is recommended to you? Well, who could be a better person to ask than someone who works with these people on a regular basis?

And if you think getting a loan funded and closed on time is just a matter of going over your financial papers and checking your credit then sitting back and waiting to hear a "yes" or "no" about the loan, then you are really in need of some recommendations. The loan officers are much more than the fees they charge.  They really need to know there way around HUD houses, FHA loans, investor ratios in condos, and all the lovely hiccups that are almost inevitable in every loan process.

So, yes, I may ask if you want me to send you some numbers of some loan people. And yes, I will ask you if you already have some inspectors names in mind. But to answer that burning question...No, I don't get anything when you call them besides knowing who they are as professionals and understanding how they work.
                                                               

Did You Know?... Some Little Known (or unknown) Things About LA's San Fernando Valley

I'm just going to write some bullet points here that include some fun facts about our valley...I will call this the "Did You Know?" blog

Did You Know?  Toluca Lake is really a community in North Hollywood

Did You Know?  That President Reagan married Nancy in 1952 in Studio City's Little Brown Church (it holds about 40 people)
                                                                  

Did You Know?  That the San Gabrielle Valley was once known as "Gabrielino"?

Did You Know?  That Burbank is it's own city...and Studio City is not a city?

Did You Know?  The house where "The Brady Bunch" was filmed is still looking great and located in a neighborhood in Studio City? (I don't think the people that live there would like me to advertise the address so I won't put it here...but if we are out looking at houses, ask me and we will take a drive past it)

                                                  

Did You Know?  Valley Glen is really a community in Van Nuys?

Did You Know?  Bob's Big Boy in Toluca Lake/Burbank was built in 1949 and is considered an iconic symbol of modern design for the time that it was built? You can see some amazing classic cars there every Friday from 3-10PM at the car show.
                                                                 

                                                               
Did You Know?  That Studio City was originally a part of North Hollywood? Maybe that explains why there is such a large distance between Hollywood and North Hollywood today....

Did You Know?  The valley made tract houses famous and a lot of that started in areas like Panorama City?                                                            

Did You Know?  The red clay roof tiles (called Terracotta) that are all over the roofs our Spanish-styled houses here in the valley, were believed to have been made, back in the day, with the workers placing clay over their thighs to give the tiles the arch shape.
                                                                    

Did You Know?  The El Portal Theatre was opened in 1926 and is still a working theater? Now the famous Academy of Television and Science is situated just across the street from this landmark.
                                                                   

Did You Know?  Encino is typically 10 degrees warmer than Hollywood, which is just 14 miles away?

Did You Know?  One of the world's most famous people, Michael Jackson, spent most of his childhood, along with his family, in their home...right in Encino?
                                                                    

Did You Know?  The price of single family homes in the valley can range anywhere from around $300,000 to well over $10,000,000?

Did You Know?  There is a sushi bar in North Hollywood where the waiters wildly sing and dance to today's hit music while serving you sushi? Tokyo Delve's is not the place for the early-bird-dinner-special-clients, if you get my drift.

Did you Know?  Mary Astor and Frank Sinatra were both once residents of Toluca Lake.  This famous estate, locate at 10051 Valley Spring Lane,  is still here and if the walls could speak, I bet they'd have a lot to say.
                                                           

Did you Know?  And yet another world known musican lived here too. 4326 Forman Ave in Toluca Lake is where Bing Crosby once lived.  Seems like Tolcua Lake was the happening place to live (and still is)


For more fascinating information about parts of the valley, it's history, architects, and developement, check out this webiste.  It is a goldmine of information http://preservation.lacity.org/files/SO-SC-TL-CP%20Survey%20Report%202.26.13.pdf


If you have any more little known facts about our communities here in the valley, feel free to email me and I will add them on here.

Pinterest: The Good, The Bad and The Ugly (photos of homes)

One of the things I've always enjoyed, even as a child, was going to open houses. I loved to see how other people's homes looked; how they decorated, how the kitchens were laid out, or how they missed the mark on design all together. So, I have decided to start a Pinterest page on the things I see in the homes around town. I hope some of the photos you will find inspiring for your own home. Others will just be lovely ideas or great architecture. The rest will just be for fun. So come follow me on Pinterest as I take you around Los Angeles to see some of our homes.

                       Pinterest: The Good, The Bad, and The Ugly







 

Just Sold!

A big congratulations to my clients Paul and Sana on their new beautiful home in Porter Ranch! We got them a lovely home and I can't wait to see it when they put their personal touches on it!

Casey Kasem's Home is For Sale- And Here Are The Top 40 Reasons You Should Buy It

That's right folks...Casey Kasem's home is for sale. He and his wife, Jean Kasem, have listed their sprawling Holmby Hills home (say that 3 times fast) and if you have a cool 40, well technically 42 million, you could be the next owner. And here are the top 40 reasons you should want to own it. This is quite funny!!! Check it out here Top 40 Reasons To Buy Casey Kasem's House

                                                                             

And they forgot to add the #1 best reason you should buy Casey Kasem's $42 million House....It is listed by my office and I'm sure our agents will be putting on the pressure for a lunch on the house when it is sold!

Should I Remove The Contengencies In My Offer?

It is almost April of 2013 and the housing market out here in Los Angeles has become very competitive. There is a larger difference between the number of houses on the market and the number of buyer out there. Some of the areas I specialize in are getting large numbers of multiply offers on homes that are marketed well and buyers are needing to step it up if they really want a particular house. So what are some of the things that I'm seeing buyers are doing in hopes to get their offer accepted? Well, there is the almighty all-cash-king. This one seems to help the sellers accept an offer pretty frequently. But there aren't a lot of buyers out there that can buy a house with all cash, so what are the rest doing to gain a seller's interest? Well, quite frankly, some buyers are removing some or all of their contingencies on an offer to keep themselves in the running for owning a home. So what does removing contingencies really mean and is it something I should do in order to get a house? Well folks, this is a very slippery slope I'm about to discuss here.

First off, there are three major contingencies in a Purchase agreement, or an offer. There is the loan contingency, an appraisal contingency, and an inspection contingency. According to Merriam Webster's dictionary, the definition of contingent is-dependent on or conditioned by something else. 
These contingencies are put into the contract to protect the buyer from unknown obstacles that can occur during the purchase. Buyers are not 100% guaranteed that they will be able to get the loan they were pre approved for on any house. There are a lot of factors that determine whether or not a lender will actually give a loan. Therefore, there is a contingency for obtaining the loan. Same goes with an appraisal which is directly tied in to getting the loan. A lender needs to know that the value of the house is there before they give that amount of money out for a loan on a home. So, same thing again as before...that is why there is an appraisal contingency. And so on with the inspection contingency as well.

So, let me say it again...the contingencies are there to protect a buyer.  Just as a deposit is there to protect a seller. And guess what is at risk if you remove contingencies?...you guessed it. Your deposit.  But let's say that you've heard that if you remove a contingency that there are still time periods and other things in the contract that are there to protect you as a buyer. Well, yes and no. These decisions of removing contingencies should only be considered on a case by case, person by person situation. I would not feel comfortable as a Realtor just suggesting to anyone of my clients that they do this without fully explaining what it means and what the consequences could be.  And I surely would not throw this out blanketly as a strategic maneuver to get an offer accepted. Try to imagine like this: When purchasing a home you place your deposit in a box behind three brick walls. And lets say those walls represent those three contingencies.  If you start off your offer with one or more of those walls missing, that is the level of protection your deposit has left.  Now this way of going about writing an offer can work out very well for the right person, but please have this talk with your Realtor and get all the facts you can before moving forward with these options. And, just so you know, there are other ways of getting your offer accepted in this competitive market. After all, in the past month, I have had two offers accepted in a multiply bid situation and neither of them removed any contingencies and neither of them were the highest offer. I'm not going to give away my secrets here but if you are out looking to purchase a home right now, maybe you should give me a call!

                                                                             

Buying and Selling a Condo and The Hidden Challenges

No matter what you are thinking of buying or selling, there can be challenges. But condos hold different challenges than single family residents do. If you are looking to sell your condo, there are some key questions your Realtor should be asking you that are huge factors regarding a buyer being able to qualify for a loan to buy the condo. Here are a few things we need to know:
1. How many of the units are rented and not owner occupied?
2. How many owners are delinquent on their home owner's dues?
3. And if an investor owns more than one unit in this complex, how many do they own?

These things can create some challenges when it comes to selling your condo. And anyone looking to buy a condo needs to be working with a lender that is aware of these issues from the start so that you don't get yourself half way through the transaction just to find out that you can't get the loan. There are more things regarding the units we are going to be asking about but the ones listed above seem to be the ones that are most easily overlooked that can create problems. Please feel free to call me and ask about how to sell your condo and how to overcome some of these issues.

Here is a great site with some information on this subject that you may find very helpful http://www.realtor.org/topics/condominium-approvals

How Can I Tell What My Home Is Worth?

So you are selling your house and you want to know what the comps (comparable sales) are so that you can get an idea of what your home is worth? Or maybe you are looking to buy and a comp would help you better know about the price range of the house or houses in a certain neighborhood. Well, there are certain internet sites (that will not be named here) where people do their own research on comps...and they are very inaccurate sources. I personally, do not recommend my clients use these internet sites because for the most part, they get their information by using property tax records of recently sold homes near by. But let me tell you about the things that matter when looking for a comp and why these sites don't work in the real world. In most of Los Angeles most of the time, we will look for recently sold homes, typically these days ones that sold in the past 2 months. And then we will look within a mile radius of the house. Looking for a home that is similar in square footage, about 20% more and less than the subject home. But here are some factors to consider once you find these recent sales:
Upgrades and improvements: Has this house recently been remodeled? If so, what type of materials did they use? Maybe laminate floors or hard wood? Tile counters or stone? New double pane windows or a new roof?
Number of rooms: Sometimes this matters, and other times not. Here is when it may matter. If you have one house that is a 3 bedroom at 1,500 Sqft that is just fine. But what if the house you are looking at is 1,500sqft and has 5 bedrooms? Well, that might make some of the rooms about the size of closets and, for most people, unusable. This would leave someone needing to probably knock out a wall or two in order to make the bedrooms usable.
Lot Size: So you are thinking that you have a large lot on the house your are interested in huh? I mean 10,000 sgft is a good deal of land in LA. So you are looking at another similar house that also had a large lot too. BUT, here in LA, we also have hills. And the house you are looking at, while it may have 10,000 sqft, most of it is on a steep slope and completely unusable.
Location, Location, Location: All other things being equal about a house, if your home is on the corner of a busy street, it will not be comparable to another that is in a quiet cul-da-sac. Just as if your home is on a street with other nice homes, it will not be comparable to one that is next to apartment complexes. If you are looking at a house on the boarder of a city, you may not want to use the home sales from the other city, even if it is just a few blocks away. Some cities have higher rated school systems than others and that can make a home's value change.
Amenities: A home with a pool will have more value than one without. If you are looking at condos, a private attached garage will help the value over a condo that has a community parking area. Having a fenced in yard may increase your value over no fence at all.

So, when looking at what a comparable property is to one you may currently own or are looking to buy, I can assure you that the online sites will not be your best source of information for that. Ask your Realtor for a better idea since they have the experience and knowledge to inform you about this very thing.  And feel free to call me if you are curious about your home's current value and we can go over this together. 

Real Estate Lingo In Layman's Terms

Do you find yourself listening to someone about real estate and just nodding your head when certain terminology is used just so you don't feel silly about asking the real question on your mind: "What in the world is this person talking about?"  Well...read below some of the most frequently used terms in real estate and what they mean.

Broker's Open- typically during the week real estate agents will hold an open house for other real estate agents to come see what is new on the market. This is a great time for us to be able to get into the houses and see what they look like in person and become familiar with the homes for sale in our area. As a buyer, don't be shy to walk into these if you see an Open House sign out front. After all, this is all ultimately for you.
Caravan- This falls under the "Broker's open" category. When we go out to see these houses that are open for brokers to see during the week, sometimes we simply say we are going on caravan.
Under Water- this is when someone owes more on the loan than the house is currently valued at. For example: John Doe owes $500,000 on his loan but his home has been appraised at the value of $450,000
Short Sale- If a home is "under water" or someone owes more money on that home than it is worth and the house needs to be sold, it would be called a "short sale". In this type of sale the lender may accept less than the amount owed on the property.
Over, At, or Under Asking: This is just a short way of referring to an offer put on a house. If the person selling the house is asking $500,000 and he received an offer of $510,000 it is said to be "over asking"

Vesting- You may here this when someone is asking you how you would like your title to be held. This refers to your name being put on the title and "how your title will be held"  which refers to things such as "a single woman", "an unmarried man", "joint tenancy" and other similar terms. This will be something your escrow officer will ask you but for tax purposes, you should ask a CPA how you should do this before you buy a home. 
Escrow- Here in California we use Escrow companies as a neutral party to help during the transaction of buying a selling property. Escrow companies hold funds (such as deposits) and handle all the paper work involved with a transaction. You may hear terms such as "In Escrow" which, simply put, means the time between when an offer is accepted and when the transaction is complete and the sale is made. (don't forget, not all states go about a real estate transaction the same way so if you don't live in Southern California, this may not be a familiar term to you.)
Dual Agency or Dual Representation- This is when both buyer and seller are represented by the same real estate agent. I wrote an entire blog on this subject. To find out more, read Dual Representation: Good or Bad? 
Held In Trust- This is something that everyone should find our more about! If you own property, and you pass away, there are a number of things that could happen to your property. One of the things that could happen is referred to as "probate".  Probate involves lawyers, courts and a lot of money and time.  To avoid probate, property owners will create a Living Trust and then transfer their property's title under the name of this Trust. I know this is the most simplistic explanation of a very large subject but, I hope, if it's not something you are familiar with, that it's something you research more.  
Free and Clear- when you hear someone say that a title of a home is "free and clear" this can mean that the person who owns the home does not owe any money for a loan on that home. It should also infer that there are no liens on the house but all of these matters should be looked into by a title company to truly know whether these things are correct.
Lien- Well, first off, if you have a mortgage or loan on your home, you have a lien on your home. A lien is a document used to secure a payment if you are in debt to someone. If you have a loan, then you are in debt to the bank where you got the loan. There are other types of liens though as well. Mechanic's Lien- if someone does work on a home and doesn't get paid in full, they can put a mechanic's lien on a home
Judgment- this can get complicated but, if it is decided in court that one person owes another money, someone can formally file a judgement against the person who owes the money.  This judgment can become a lien on the person's property that owes the money.
Tax Liens- if someone owes the government taxes, the government can put this type of lien on a home
Wet Signature- In this modern day of computers, we use online programs that allow our clients to sign documents over the Internet. Sometimes we need them signed with a pen instead and this is called a wet signature.
Contingencies- You will hear this term mostly used when referring to a Purchase agreement, or an offer. There are certain things in the sale of a home that must happen in order for the sale to go through. These things are known as contingencies. An example of one is: if John Doe is buying a home and using a loan to do this, he needs to be able to secure this loan. The sale of this home is said to be "contingent" upon John Doe getting this loan.
Equity- This can be looked at like a math equation. The value of a home minus the money owed on it equals equity. So if you have a $500,000 home and owe $300,000 on that home, then you have $200,000 in equity.
At-Value appraisal- This is a very misunderstood term and many people interpret this term at face-value (no pun intended...okay, just kidding, pun intended) If you hear that the appraisal of a home came in "At-value" this does not mean that it is valued at the exact dollar amount of the accepted offer. It simply means the value of the home is at or above the accepted offer amount. You may or may not hear the exact amount a home is valued at unless that amount is less than the accepted offer amount.
As-Is I actually wrote a whole blog on this term that you can read below.
But what the term is meant to imply is that the home is being sold in the condition that it is currently in. This term can go a lot deeper so for further explication, please read my other blog about this Sold As-Is

I hope this helps and if you are thinking about buying or selling your home and don't understand the lingo or terms that you may hear your agent say, please ask what they mean. An important part of our job is to help you understand as much as you need to know about the process of buying or selling. If you have questions regarding a loan or terms referring to loans, feel free to call Michael Razak. He is an excellent loan broker and can help you understand about that part of a transaction. http://2933208649.brokersite.com/Default.aspx

And if you can think of any other terms you hear that you may not be familiar with, I bet you are not alone and I would love to hear from you so that I can add them on here.

                                                                          

Tax Deductions With Home Ownership

I just saw this article and I thought I would add it on here. These things are very important to remember around tax season and they can really put more money back in your pocket if you remember to include them in with your taxes. Some of the most forgotten home related tax deductions are:
1. State sales taxes, including on major home improvements
2. Refinancing points -- including previous refi points when you re-refinance
3. Energy-saving home improvements
4. Charitable donations
5. Moving expenses to take your first job

                                               You can read the full article here  

  http://homes.yahoo.com/blogs/spaces/most-overlooked-home-related-tax-deductions-203157385.html 



 

Remodeling: Cost VS Value in 2013

Are you thinking about making some changes to your home? Have you been wondering what changes will bring the most value to your home? Well I just found this great article and website that gives a lot of information on the cost vs value in today's market. When you look at the chart, under the type of project, you can click on that name, such as "kitchen" and it even breaks it down even further into different high or low yielding layouts and materials. Check it out!

http://www.remodeling.hw.net/2013/costvsvalue/national.aspx

                                                                          

Southern California Home Price Surge

If you are interested in this article, it is because you have been aware of the recent surge in home prices. When comparing a home's value in some areas, you can no look back any further than one month for comparable sales because the market is changing so rapidly. Here is a great article from the LA Times with an interactive map that shows the median home price increase within any certain neighborhood. This is great! Check it out....

http://www.latimes.com/business/realestate/la-fi-recovery-markets-map-20130308-dto%2c0%2c7204398.htmlstory#.UTvC9n6r6_w.email

Open House Schedules in Spring & Summer 2013

While the days are shorter, we here in the valley typically hold our open houses from 1-4PM on Sundays. After the time change coming this week which will be on March 10, 2013, open houses will return to 2-5PM.  So come out a little later in day and see what we have for you to buy this Spring!

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