SOURCE: CALIFORNIA ASSOCIATION OF REALTOR'S DECEMBER NEWSLETTER
Saturday, December 28, 2013
5 Costly Mistakes When Selling Home
Did you know that many homeowners lose thousands of dollars by the time they close on their home because of simple mistakes they make... and could have easily corrected BEFOE putting their home on the market?
Mistake 1: Putting the home on the market before it's ready. Most times this happens because the seller gets impatient or is thinking right now is seller's market and the home will go anyway, and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything -- so get the house clean and tidy before marketing the property.
Mistake 1: Putting the home on the market before it's ready. Most times this happens because the seller gets impatient or is thinking right now is seller's market and the home will go anyway, and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything -- so get the house clean and tidy before marketing the property.
Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it's an anomaly, instead of a nice addition to the community. Well, truth is, you might get more showings and offers, but that doesn't mean the offer price counts what you paid for those upgrades. Most of upgrades worth no more than 50% of the cost during selling time.
Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the "asking" price, but they don't control the "sales" price. The market does. It doesn't matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.
Mistake 4: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn't matter what you "want," only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of seven years.
Mistake 5: Trying to cover up problems, or not disclosing them. California has a property disclosure form -- use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky roof, or dilapidated heating/air system that's discovered 30 days after settlement.
Selling soon? Call me when you are ready to sell your home!
Friday, December 27, 2013
What to Look When You're Buying an Investment Property
Jennifer Zheng
REALTOR, Abacus Properties Inc.
16870 West Bernardo Drive, Suite 400
San Diego, CA 92127
Cell #: (858) 344-8478
San Diego, CA 92127
Cell #: (858) 344-8478
BRE License #: 01450123
My service, service for Life
CALL ME today @858-344-8478, I'm a REALTOR and an experienced investor myself.
When your a new investor using a realtor is almost mandatory since you can use their experience, contacts, and knowledge to help you find the best deals.
Remember they have to pay for their own gas when showing property, their annual real estate licenses, and all the rest of their overhead costs.
They are constantly dealing with buyers that never buy a house and waste their time showing prospective property. It is important to realize this since real estate agents are considered independent contractors.
Have a little compassion and don’t waste their time if your truly not interested in buying property. That being said, you need to find a realtor that OWNS investment property themselves.
Most agents only deal with buyers that are looking for a house to live in themselves and they have little to no knowledge in dealing with rental property.
What your looking for as an investor is a realtor that owns rental property themselves. They will know what to look for in a investment property and their knowledge is very valuable to an investor.
They can save you a lot of money by avoiding property that will have issues as an investment property. Interview and actually have the potential realtors show you several properties first.
The really valuable realtors will be pointing out the pros and cons for each property.
This is the type of realtor you should select for finding investment property.
Finding Property
Ok, now that you have your financing and realtor selected it’s time to get down to business. Finding the right property is crucial to making money in real estate.
There are some important points to know:
1. Don’t Buy In Expensive Neighborhoods - Nice areas may have nice homes but they don’t make sense as an investor. By the time you pay the higher mortgage payment, taxes, and homeowners insurance your left with little to no income.
Unless you have enough cash to buy these higher priced home avoid them at all costs since the risk is to high for rookies.
2. Don’t Buy In Cheap Neighborhoods
Although there are many great deals in the worse areas your tenant pool will be bad. The
tenants that pay won’t stay long while you will be spending your days in court evicting the non-paying tenants. Drugs, murders, and other crimes will cause any potential capital appreciation to the property to be wiped out. Not only will your properties not make much income but their value will likely decline as well.
3. Buy In Average Neighborhoods - The best deals in real estate are often in working class areas. These are neighborhoods that tend to have decent tenants and hard working people.
Many of the homes for sale may be foreclosures or homeowners looking to upgrade. Since there isn’t a huge demand for these properties you can get some great deals.
Homes in these areas can appreciate rapidly if a more affluent crowd starts to move in. Your potential tenant pool will be large since the rents are more affordable and the quality of the tenants is respectable.
Once you have located several areas that meet your buying criteria your going to want to
take a look at the inside of the properties that are for sale.
Benefits Of Buying Real Estate
Reasons For Buying Real Estate
There are many reasons why someone would want to invest in rental property, below are a list of the most popular reasons.
1. Passive Income - You can make passive income every month if you use a property manager to manage your properties. There is no greater feeling than getting nice sized checks in the mail every month without doing anything.
2. Capital Appreciation - Real estate investors have the advantage of their properties appreciating without paying taxes on them until they sell them. This is a great way to accumulate real wealth.
3. Retirement - With most retirement plans investing in stocks it’s a good idea to diversify your retirement assets with real estate. Normally stocks and real estate move in opposite directions so owning real estate is a great way to reduce risks in your portfolio.
4. College - Since college costs are rising so rapidly many parents can’t save enough money to fully fund their children's education. Smart parents look to real estate investing as a way to be able to fund their children's education.
5. Wealth Accumulation - Most of the wealthy have became millionaires through their investments in real estate. Creating wealth through real estate has worked for investors in the past and it should continue to work in the future.
6. Investment Diversification - Whether you invest in stocks, own a business, or are just looking to make more money, owning investment real estate is a great way to diversify your investment portfolio.
Benefits Of Real Estate
1. Tax Write Offs - One of the major benefits to investing in real estate are the tax writeoffs that are allowed. This is the one of the few investment that allows such tax savings.
2. Income - As long as your real estate is managed well the rental income will allow you to invest in more properties if that is your goal. Once you have the property on auto mode it’s the easiest passive income you will ever get.
3. Capital Appreciation - As mentioned earlier your real estate should increase over time. If you ride out the ups and downs in the real estate market you normally will come out ahead.
4. Wealth Accumulation - If your not good at forced savings your real estate mortgage will force you into saving. While your paying your investment property mortgage you will be building up your wealth.
5. Assets - A great benefit of owning real estate is the effect it has on your balance sheet. Banks love to see real estate on a loan application and love to make loans using it as an collateral. If you ever find yourself in a financial bind it’s nice to know that you can use the property as collateral for a loan.
6. Increase Credit - Since banks like to see real estate ownership it increases your credit worthiness and will cause your credit score to increase as long as your making your mortgage payment on time.
7. Status - As a real estate investor and landlord you will gain social status in your community. If you have never owned investment property you would be shocked at how much more influence and respect you will get from other people in your community.
8. Management Experience - If you have never actively been in charge of a business you will learn a lot of people skills that many people don’t have. This is important since you will not only become a more well rounded person but you can list the experience on your resume.
As you can see there are many benefits to owning real estate and many of them are not just financial.
There are many reasons why someone would want to invest in rental property, below are a list of the most popular reasons.
1. Passive Income - You can make passive income every month if you use a property manager to manage your properties. There is no greater feeling than getting nice sized checks in the mail every month without doing anything.
2. Capital Appreciation - Real estate investors have the advantage of their properties appreciating without paying taxes on them until they sell them. This is a great way to accumulate real wealth.
3. Retirement - With most retirement plans investing in stocks it’s a good idea to diversify your retirement assets with real estate. Normally stocks and real estate move in opposite directions so owning real estate is a great way to reduce risks in your portfolio.
4. College - Since college costs are rising so rapidly many parents can’t save enough money to fully fund their children's education. Smart parents look to real estate investing as a way to be able to fund their children's education.
5. Wealth Accumulation - Most of the wealthy have became millionaires through their investments in real estate. Creating wealth through real estate has worked for investors in the past and it should continue to work in the future.
6. Investment Diversification - Whether you invest in stocks, own a business, or are just looking to make more money, owning investment real estate is a great way to diversify your investment portfolio.
Benefits Of Real Estate
1. Tax Write Offs - One of the major benefits to investing in real estate are the tax writeoffs that are allowed. This is the one of the few investment that allows such tax savings.
2. Income - As long as your real estate is managed well the rental income will allow you to invest in more properties if that is your goal. Once you have the property on auto mode it’s the easiest passive income you will ever get.
3. Capital Appreciation - As mentioned earlier your real estate should increase over time. If you ride out the ups and downs in the real estate market you normally will come out ahead.
4. Wealth Accumulation - If your not good at forced savings your real estate mortgage will force you into saving. While your paying your investment property mortgage you will be building up your wealth.
5. Assets - A great benefit of owning real estate is the effect it has on your balance sheet. Banks love to see real estate on a loan application and love to make loans using it as an collateral. If you ever find yourself in a financial bind it’s nice to know that you can use the property as collateral for a loan.
6. Increase Credit - Since banks like to see real estate ownership it increases your credit worthiness and will cause your credit score to increase as long as your making your mortgage payment on time.
7. Status - As a real estate investor and landlord you will gain social status in your community. If you have never owned investment property you would be shocked at how much more influence and respect you will get from other people in your community.
8. Management Experience - If you have never actively been in charge of a business you will learn a lot of people skills that many people don’t have. This is important since you will not only become a more well rounded person but you can list the experience on your resume.
As you can see there are many benefits to owning real estate and many of them are not just financial.
Who Pays What? (Seller and Buyer Closing Cost)
In California Who Pays What is determined by local custom. Below is a list of who pays which fees in Southern California.
The SELLER
can generally be expected to pay for:
Statement fees
Reconveyance fees
Prepayment penalties
The BUYER
can generally be expected to pay for:
The SELLER
can generally be expected to pay for:
- Real estate commission
- Owners title insurance policy
- 1/2 of the sub-escrow fee
- 1/2 of escrow fee
- Document preparation fee for deed
- Documentary transfer tax
- Transfer or conveyance tax
- Loan fees required by buyer's lender (Only for FHA/VA)
- Payoff all loans against property
- Seller's lender being paid off
Statement fees
Reconveyance fees
Prepayment penalties
- Termite inspection (according to contract)
- Termite work (according to contract usually section 1)
- Home warranty (according to contract)
- Any judgements, tax liens, etc., against the seller
- Tax proration (for any taxes unpaid at the closing)
- Any unpaid homeowner's dues
- Recording charges to clear all documents of record against seller
- Any bonds or assessments (according to contract)
- Any and all delinquent taxes
- Notary fees
The BUYER
can generally be expected to pay for:
- Lenders title insurance policy
- 1/2 of the sub-escrow fee
- 1/2 of escrow fee
- Document preparation (if applicable)
- Notary fees
- Recording charges for all documents in buyer's name
- Tax proration (for any taxes unpaid at the closing)
- Homeowner's transfer fee
- All new loan charges (except FHA/VA loans)
- Interest on new loan from date of funding to 30 days prior to first payment date Assumption or change of records fee on existing loan
- Assumption of existing loan
- Inspection fees (roofing, property, geological, etc.)
- Termite work (according to contract usually section 2 )
- Home warranty (according to contract)
- Fire insurance premium for first year
Sunday, December 22, 2013
Leap Over Repair Hurdles with Ease
By Stella H. Ling, Esq.
Q: What happens if a buyer and seller are in contract together and something falls into disrepair before close of escrow?
A: Under C.A.R.’s Residential Purchase Agreement (RPA), a seller is generally responsible for repairing any items that fall into disrepair during escrow. For example, the doorbell could stop working or the roof could start leaking for the first time when it rains. A seller who is about to vacate and sell the home may be reluctant to repair or replace these items. However, paragraph nine of the RPA requires the seller to maintain the property in substantially the same condition as on the date the parties entered into their purchase agreement. If, however, damage was caused by the buyer’s investigation of the property, the buyer would generally be responsible under paragraph 10 of the RPA.
For REALTORS®, dealing with repair issues in a sales transaction can feel like jumping over hurdles in a track-and-field race. Even just one feature or item in need of repair can cause a property to sit on the market for months or cause buyer after buyer to cancel an agreement to purchase. Knowing what repairs are required according to the law, the purchase agreement and market demands can give you a competitive edge on your way to the finish line. Understanding how to handle repair issues is particularly important in the current market, given the high number of homes in disrepair after a foreclosure or short sale.
Repairs Before Listing
>> Right from the start of the race, you can spot an experienced listing agent by the way he or she handles repair issues. Other than encouraging a seller to do minor repairs, newer agents tend to have a wait-and-see approach for handling repairs. They may list the property for sale in its present condition for a period of time to test the market.
In contrast, an experienced listing agent will have more of a take-charge approach and help the seller decide upfront which repairs should be made to effectively market the property for sale. To arrive at that decision, the experienced listing agent will help the seller analyze various factors, including, but not limited to, what items should be repaired, whether the seller has the ability to make the repairs, what the typical buyer of that type of property would accept, and what the market will bear. Average listing agents may or may not help their sellers maximize their return on investment; many experienced listing agents will.
Hiring Contractors
>> Having a take-charge approach doesn’t mean throwing caution to the wind. If repairs are needed, agents should heed the age-old advice of giving the seller a referral list of three or more reputable contractors, vendors, or other service providers to choose from. Recommending only one contractor may expose The agent to liability for negligent referral, if the contractor does a bad job.
Another precaution is leaving it to the seller to order a contractor to do the work. If a salesperson orders work to be done on a client’s behalf without clarifying payment arrangements upfront in writing, and later on, the contractor doesn’t get paid, the contractor may attempt to collect payment directly against the salesperson and even the salesperson’s broker. This matter can be exacerbated if a contractor files a mechanics lien against a seller’s property to recover payment.
Request for Repairs
>> Agents representing buyers can also run into obstacles if they do not educate their clients upfront about repairs. After entering into a purchase agreement and going through the inspection process and reviewing disclosures and reports, buyers may mistakenly believe that their seller will take care of certain repairs. In reality, California law generally requires a residential seller to provide only two point-ofsale items—smoke detectors and water heater bracing. Certain cities may have additional local requirements (such as gas shut-off valves, low-flow toilets, or even government inspections). Other than these mandatory pointof- sale requirements, a seller is not legally required to make any improvements or repairs before transferring title, which can be quite a Rude awakening for the buyer.
For instance, buyers may not realize that, absent language to the contrary in the purchase agreement, their seller need not make repairs required by the buyer’s lender. Also, some buyers who discover serious health and safety issues during their inspections, such as faulty electrical wiring, toxic mold, or rodent infestation, may be appalled to then be told their seller may not be contractually or legally required to fix these problems before close of escrow. Other than point-of-sale requirements, a seller is legally required to disclose, not fix, any known material facts affecting the value or desirability of the property.
Agreed-Upon Repairs
>> To keep a buyer from cancelling a purchase agreement due to a property’s condition, a seller may voluntarily elect to make repairs that the buyer requests. However, we’re still not home free. At times, a seller may want to cut corners when doing the buyer’s requested repairs. Point out to the seller that paraGraph 15 of the C.A.R. Residential Purchase Agreement (RPA) requires repairs to be performed in a good, skillful manner with materials of quality and appearance comparable to existing materials.
Repairs must also, according to the RPA, comply with any applicable legal requirements. Most notably, if a project costs $500 or more for labor, materials, and other costs, the work must generally be performed by a licensed contractor. Unlicensed handymen can only do projects that cost less than $500. Many projects may also require building permits, such as roofing, electrical wiring repair, window and door change outs, and drywall replacement, just to name a few. For more information about the permit process, the seller should check with the local Building and Safety Office.
Timing of Repairs
>> Another hurdle is timing. A seller may want to delay doing agreed-upon repairs absent assurance that the buyer will close escrow. Yet, under paragraphs 15 and 16 of the RPA, the seller must complete agreed-upon repairs before the buyer’s final walk-through, which the buyer has the right to do five days before close of escrow.
Credit Instead of Repairs
>> Given these various hurdles (skillful manner, contractors, permits, and timing), a seller may be better off just giving the buyer a monetary credit instead. In exchange for the credit, the seller can require that the buyer release the seller and brokers from any liability regarding the repair items the buyer has requested. This release is included in C.A.R.’s Request for Repairs (Form RR).
Final Thought
>> Understanding the law, contract, and market will help you leap over repair hurdles with ease. See you at the finish line!
Stella H. Ling, Esq., is Managing Senior Counsel at C.A.R.
Q: What happens if a buyer and seller are in contract together and something falls into disrepair before close of escrow?
A: Under C.A.R.’s Residential Purchase Agreement (RPA), a seller is generally responsible for repairing any items that fall into disrepair during escrow. For example, the doorbell could stop working or the roof could start leaking for the first time when it rains. A seller who is about to vacate and sell the home may be reluctant to repair or replace these items. However, paragraph nine of the RPA requires the seller to maintain the property in substantially the same condition as on the date the parties entered into their purchase agreement. If, however, damage was caused by the buyer’s investigation of the property, the buyer would generally be responsible under paragraph 10 of the RPA.
For REALTORS®, dealing with repair issues in a sales transaction can feel like jumping over hurdles in a track-and-field race. Even just one feature or item in need of repair can cause a property to sit on the market for months or cause buyer after buyer to cancel an agreement to purchase. Knowing what repairs are required according to the law, the purchase agreement and market demands can give you a competitive edge on your way to the finish line. Understanding how to handle repair issues is particularly important in the current market, given the high number of homes in disrepair after a foreclosure or short sale.
Repairs Before Listing
>> Right from the start of the race, you can spot an experienced listing agent by the way he or she handles repair issues. Other than encouraging a seller to do minor repairs, newer agents tend to have a wait-and-see approach for handling repairs. They may list the property for sale in its present condition for a period of time to test the market.
In contrast, an experienced listing agent will have more of a take-charge approach and help the seller decide upfront which repairs should be made to effectively market the property for sale. To arrive at that decision, the experienced listing agent will help the seller analyze various factors, including, but not limited to, what items should be repaired, whether the seller has the ability to make the repairs, what the typical buyer of that type of property would accept, and what the market will bear. Average listing agents may or may not help their sellers maximize their return on investment; many experienced listing agents will.
Hiring Contractors
>> Having a take-charge approach doesn’t mean throwing caution to the wind. If repairs are needed, agents should heed the age-old advice of giving the seller a referral list of three or more reputable contractors, vendors, or other service providers to choose from. Recommending only one contractor may expose The agent to liability for negligent referral, if the contractor does a bad job.
Another precaution is leaving it to the seller to order a contractor to do the work. If a salesperson orders work to be done on a client’s behalf without clarifying payment arrangements upfront in writing, and later on, the contractor doesn’t get paid, the contractor may attempt to collect payment directly against the salesperson and even the salesperson’s broker. This matter can be exacerbated if a contractor files a mechanics lien against a seller’s property to recover payment.
Request for Repairs
>> Agents representing buyers can also run into obstacles if they do not educate their clients upfront about repairs. After entering into a purchase agreement and going through the inspection process and reviewing disclosures and reports, buyers may mistakenly believe that their seller will take care of certain repairs. In reality, California law generally requires a residential seller to provide only two point-ofsale items—smoke detectors and water heater bracing. Certain cities may have additional local requirements (such as gas shut-off valves, low-flow toilets, or even government inspections). Other than these mandatory pointof- sale requirements, a seller is not legally required to make any improvements or repairs before transferring title, which can be quite a Rude awakening for the buyer.
For instance, buyers may not realize that, absent language to the contrary in the purchase agreement, their seller need not make repairs required by the buyer’s lender. Also, some buyers who discover serious health and safety issues during their inspections, such as faulty electrical wiring, toxic mold, or rodent infestation, may be appalled to then be told their seller may not be contractually or legally required to fix these problems before close of escrow. Other than point-of-sale requirements, a seller is legally required to disclose, not fix, any known material facts affecting the value or desirability of the property.
Agreed-Upon Repairs
>> To keep a buyer from cancelling a purchase agreement due to a property’s condition, a seller may voluntarily elect to make repairs that the buyer requests. However, we’re still not home free. At times, a seller may want to cut corners when doing the buyer’s requested repairs. Point out to the seller that paraGraph 15 of the C.A.R. Residential Purchase Agreement (RPA) requires repairs to be performed in a good, skillful manner with materials of quality and appearance comparable to existing materials.
Repairs must also, according to the RPA, comply with any applicable legal requirements. Most notably, if a project costs $500 or more for labor, materials, and other costs, the work must generally be performed by a licensed contractor. Unlicensed handymen can only do projects that cost less than $500. Many projects may also require building permits, such as roofing, electrical wiring repair, window and door change outs, and drywall replacement, just to name a few. For more information about the permit process, the seller should check with the local Building and Safety Office.
Timing of Repairs
>> Another hurdle is timing. A seller may want to delay doing agreed-upon repairs absent assurance that the buyer will close escrow. Yet, under paragraphs 15 and 16 of the RPA, the seller must complete agreed-upon repairs before the buyer’s final walk-through, which the buyer has the right to do five days before close of escrow.
Credit Instead of Repairs
>> Given these various hurdles (skillful manner, contractors, permits, and timing), a seller may be better off just giving the buyer a monetary credit instead. In exchange for the credit, the seller can require that the buyer release the seller and brokers from any liability regarding the repair items the buyer has requested. This release is included in C.A.R.’s Request for Repairs (Form RR).
Final Thought
>> Understanding the law, contract, and market will help you leap over repair hurdles with ease. See you at the finish line!
Stella H. Ling, Esq., is Managing Senior Counsel at C.A.R.
Tuesday, December 17, 2013
New Year Perspective
We've had consecutive two golden years in 2012 and 2013! Did I say that? No one would have guessed that we would go from a non-performing market in Jan 2012 to a nearly explosive June 2013 in a short of just 18 months. And then when many home owners were expecting the frenzy to continue without break, the market dynamics changed, as a matter fact, homes that remained on the market in August, 2013 were simply OVER-PRICED.
As much as I try, it's virtually impossible to predict what the market will do. If I could, my job would have been much easier.
Let's take a quick look back at 2013 and see if you agree.
The following source is from CNBC's Diana Olick.
A LOOK BACK AT 2013
Home Price: Got this one totally right but underestimated the extent of the gains. Investors and move-up buyers pushed the higher-end market.
Mortgage Availability: The new mortgage rules were released, and they will make loans more expensive. Credit standards haven't moved either.
Rents: No sign of easing at all. Renter nation is in full swing as young Americans either can't get the credit or don't have the desire to buy homes. Rents continue to rise and vacancies fall as affordability and homeownership sink.
Foreclosures: Foreclosures and shot sales have continued to ease. Banks have been modifying more loans and writing down principal, and rising home prices have kept the newly delinquent loan numbers low.
Underwater borrowers: Different surveys show different numbers, but the steep rise in home prices pulled around 2 mission borrowers back into equity land in their homes. Renovations took a big leap in 2013 as a result.
FORWARD to 2014
Home sales will rebound: After a brief lull in the fall of 2013, I predict that sales activity will return to the market with more home buyers. The steep jump in home prices has brought thousands of homeowners above water on their mortgages, enabling them to sell and move. Negative equity has been one of the biggest barriers to home sales since the housing crash. Come spring, there will most likely be more sellers, more homes on the market and therefore more transactions.
Home Price Gains should ease: Prices will still rise, no question. but probably not as steeply as they did in 2013. Annual gains of more than 12 percent were driven in large part by investors on the low end of the market. As foreclosures ebb and fewer distressed sales are in the mix, prices will moderate. Still low inventories, however, will keep them in the positive
Rents will rise: Despite the return of home sales, renter nation should continue throughout 2014, as younger Americans and first time home buyers are still left out of the recovery. Saddled with student debt and unable to come up with the large down payments required from today's mortgage lenders, this cohort will probably continue to fuel both the multifamily apartment market and the single-family rental trade.
Investors will not leave the market: Some have predicted that with rising home prices, the large-scale private-equity investors will leave the newly evolving single-family rental market. Just the opposite. Now that they have built economies of scale and figured out the management, they will most likely settle in for the long haul - perhaps not buying as many new properties, but keeping the bulk of the ones they have. Some smaller investors may opt to sell, but they may sell to the bigger guys rather than to individual-owner occupants.
Mortgage rate will rise: The days of the 3.5% 3-year fixed are over. Rates are already up well over a full percentage point form a year ago. And as the Federal Reserve begins its much anticipated exit from the bond-buying business, I believe rates will inevitably go higher. How much that affects home sales will depend entirely on job and wage growth. Mortgage underwriting will remain tight, but buyers with solid credit should be able to weather slightly higher rates. By historical standards, they are sill relatively low. It is less rate and more availability that will continue to hamper sales.
Friday, December 13, 2013
FHA drastically lowers loan limits
Last week, the Federal Housing Administration (FHA) announced it was reducing
the loan limit for FHA-insured loans from $729,750 to $625,500 beginning Jan. 1,
2014. However, while the FHA is required by statutes under the Housing and
Economic Recovery Act (HERA) to lower its cap on loan limits, it has also
interpreted HERA to require it to reset metropolitan statistical (MSA) median
home prices.
Since 2008, FHA has based its MSA median home prices on the highest median home price for a county over time (which for many counties has meant 2007 home prices, when prices were at a peak). According to FHA’s announcement, FHA believes it must use 2008 price levels. If an area’s median home price has increased since 2008, FHA will use the higher median price. However, home prices in many areas are still below 2007 levels, which has resulted in the drastic reduction of FHA’s MSA median prices. In California, it has resulted in reductions of an average of more than $100,000 statewide.
This is an unprecedented action by FHA. FHA has historically held an area harmless when that area’s median home price declined. While FHA was required to lower maximum loan limits and reduce high-cost area calculation beginning January 1, 2014, C.A.R. does not believe they were required to reset MSA median home prices. C.A.R. is working with NAR to fight the resetting of MSA median home prices.
View FHA’s announcement and the new FHA MSA median home prices.
Since 2008, FHA has based its MSA median home prices on the highest median home price for a county over time (which for many counties has meant 2007 home prices, when prices were at a peak). According to FHA’s announcement, FHA believes it must use 2008 price levels. If an area’s median home price has increased since 2008, FHA will use the higher median price. However, home prices in many areas are still below 2007 levels, which has resulted in the drastic reduction of FHA’s MSA median prices. In California, it has resulted in reductions of an average of more than $100,000 statewide.
This is an unprecedented action by FHA. FHA has historically held an area harmless when that area’s median home price declined. While FHA was required to lower maximum loan limits and reduce high-cost area calculation beginning January 1, 2014, C.A.R. does not believe they were required to reset MSA median home prices. C.A.R. is working with NAR to fight the resetting of MSA median home prices.
View FHA’s announcement and the new FHA MSA median home prices.
Thursday, December 12, 2013
How Accurate is Zestimate
It is no secret that many home buyers and sellers are using online tool to search and find about home values. it’s a very helpful tool, but the home value figures can be misleading and people shouldn’t etch that number in stone when it comes to making an offer or pricing your home.
Zillow hired a team of statisticians and tech gurus to come up algorithms that analyze data to identify relationships within a specific geographic area, between the home-related data and actual sales prices. It takes considerations on bigger location, lot size, square footage, number of bedrooms and bathrooms, however it does count the following facts -
1) The smaller scope of location, such as whether it's a quiet corner unit or a road side unit.
2) Renovations and upgrades. For instance, one unit has kitchen and bath and floor all updated, and the other has 3 dogs with worn carpet and walls with holes.
3) Special designs.
Overall, an algorithm is just an algorithm, it lacks human judgement like a home appraiser does. Zestimate tends to be more accurate in neighborhoods with frequent turnover, which provides a constant stream of information about home sales.
So, you could use zestimate as a general guidance, but not a bible, more accuracy shall be obtained from
Zillow hired a team of statisticians and tech gurus to come up algorithms that analyze data to identify relationships within a specific geographic area, between the home-related data and actual sales prices. It takes considerations on bigger location, lot size, square footage, number of bedrooms and bathrooms, however it does count the following facts -
1) The smaller scope of location, such as whether it's a quiet corner unit or a road side unit.
2) Renovations and upgrades. For instance, one unit has kitchen and bath and floor all updated, and the other has 3 dogs with worn carpet and walls with holes.
3) Special designs.
Overall, an algorithm is just an algorithm, it lacks human judgement like a home appraiser does. Zestimate tends to be more accurate in neighborhoods with frequent turnover, which provides a constant stream of information about home sales.
So, you could use zestimate as a general guidance, but not a bible, more accuracy shall be obtained from
- Getting a comparative market analysis (CMA) from a real estate agent
- Getting an appraisal from a professional appraiser
- Visiting the house (whenever possible)”
Thursday, December 5, 2013
Short Sales Not Subject to Federal or State Income Tax for Cancellation of Debt
| Article for California Association of REALTORS Realegal Short sales in California are generally not subject to state or federal income tax for cancellation of debt. The Franchise Tax Board (FTB) issued a letter yesterday stating that, as nonrecourse obligations, short sales in California are not subject to state income tax for cancellation of debt. The FTB's position conforms with the federal treatment of short sales stated in an IRS letter as we previously reported on November 15. These letters will provide welcome relief for short sale sellers given that the tax break for a qualified principal residence under the federal Mortgage Forgiveness Debt Relief Act of 2007 will expire at the end of this year, and similar protection under California law already expired in 2012. The FTB letter includes transactions that closed in 2012 but, as always, sellers should consult with their own tax professionals. According to the recent FTB letter, “a California taxpayer would not have cancellation of indebtedness where the taxpayer was involved in a short sale pursuant to CCP section 580e.” Section 580e of the California Code of Civil Procedure (CCP) generally protects borrowers from owing a deficiency after a short sale of a residential property with one-to-four units, including both first and junior trust deeds. Exceptions include fraud, waste, cross-collateralized loans, and borrowers that are corporations, LLCs, or limited partnerships. For more information, C.A.R. members may refer to our legal article on Short Sale Deficiencies. As with the IRS letter, the FTB letter states that even if no cancellation of debt income is owed, a taxpayer may nevertheless have capital gains to the extent that the outstanding debt exceeds the tax basis for the property. A principal residence, however, is generally excluded from capital gains tax up to $250,000 for single taxpayers and $500,000 for married couples filing joint returns (under 26 U.S.C. § 121). |
Sunday, December 1, 2013
Why Sell By Owner Doesn't Work Well
FSBO: For Sale By Owner
Are you considering selling your own home? Recently, I saw a sign go up in front of a home. It read “For Sale By Owner, no brokers or agents”. After about 3 weeks, the sign was gone. I thought to myself, “Hmm, that house sold fast”. The next day, a new sign appeared on the front lawn from a big agency now representing the seller.
Obviously, the seller had wanted to save themselves commission by selling their own home but things must have not quite worked out. Why could this have been? Even in a seller's market? Many home buyers thought about selling home by themselves, but 99% of the cases things don't work out as they had expected.
- FSBO can’t list their homes on the MLS (mulitiple listing service), thus have very limited audience. On the other hand, MLS exposes your home to hundreds of thousands of potential buyer group.
- More likely to have legal problems.
- As sellers usually use online estimating systems such as Zillow and Redfin , and there are many drawbacks to those systems, homes are not priced well.
- Buyers feel intimidated.
- Agents are reluctant to show and work with seller directly.
How to Vest the Property Title
Once escrow is open, you may receive escrow instructions from escrow office, and one of them is title vesting. I often receive phone calls from my clients asking how they should vest the ownership on the property.
Common Methods of Holding Title
SOLE OWNERSHIP
Sole ownership may be described as ownership by an individual or other entity capable of acquiring title. Examples of common vesting cases of sole ownership are:
1. A Single Man or Woman, an Unmarried Man or Woman or a Widow or Widower:
A man or woman who is not legally married or in a domestic partnership. For example: Bruce Buyer, a single man.
2. A Married Man or Woman as His or Her Sole and Separate Property:
A married man or woman who wishes to acquire title in his or her name alone.
The title company insuring title will require the spouse of the married man or woman acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that both spouses want title to the property to be granted to one spouse as that spouse’s sole and separate property. The same rules will apply for same sex married couples. For example: Bruce Buyer, a married man, as his sole and separate property.
3. A Domestic Partner as His or Her Sole and Separate Property:
A domestic partner who wishes to acquire title in his or her name alone.
The title company insuring title will require the domestic partner of the person acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that both domestic partners want title to the property to be granted to one partner as that person’s sole and separate property. For example: Bruce Buyer, a registered domestic partner, as his sole and separate property.
1. Community Property:
A form of vesting title to property owned together by married persons or by domestic partners. Community property is distinguished from separate property, which is property acquired before marriage or before a domestic partnership by separate gift or bequest, after legal separation, or which is agreed in writing to be owned by one spouse or domestic partner.
In California, real property conveyed to a married person, or to a domestic partner is presumed to be community property, unless otherwise stated (i.e. property acquired as separate property by gift, bequest or agreement). Since all such property is owned equally, both parties must sign all agreements and documents transferring the property or using it as security for a loan. Each owner has the right to dispose of his/her one half of the community property by will. For example: Bruce Buyer and Barbara Buyer, husband and wife, as community property, or Sally Smith and Jane Smith, registered domestic partners as community property. Another example for same sex couples: Sally Smith and Jane Smith, spouses, as community property.
2. Community Property with Right of Survivorship:
A form of vesting title to property owned together by spouses or by domestic partners. This form of holding title shares many of the characteristics of community property but adds the benefit of the right of survivorship similar to title held in joint tenancy. There may be tax benefits for holding title in this manner. On the death of an owner, the decedent’s interest ends and the survivor owns all interests in the property. For example: Bruce Buyer and Barbara Buyer, husband and wife, as community property with right of survivorship, or John Buyer and Bill Buyer, spouses, as community property with right of survivorship. Another example for same sex couples: Sally Smith and Jane Smith, registered domestic partners, as community property with right of survivorship.
If you live in a community property state, you and your spouse (or registered domestic partner) may be able to avoid probate by taking title to property as “community property with the right of survivorship.” Community property states include Alaska, Arizona, California, Idaho, Nevada, Texas and Wisconsin.
Holding property as survivorship community property has certain consequences, the most important of which are that:
3. Joint Tenancy:
A form of vesting title to property owned by two or more persons, who may or may not be married or domestic partners, in equal interests, subject to the right of survivorship in the surviving joint tenant(s). Title must have been acquired at the same time, by the same conveyance, and the document must expressly declare the intention to create a joint tenancy estate. When a joint tenant dies, title to the property is automatically conveyed by operation of law to the surviving joint tenant(s). Therefore, joint tenancy property is not subject to disposition by will. For example: Bruce Buyer, a married man and George Buyer, a single man, as joint tenants.
Note: If a married person enters into a joint tenancy that does not include their spouse, the title company insuring title may require the spouse of the married man or woman acquiring title to specifically consent to the joint tenancy. The same rules will apply for same sex married couples and domestic partners.
4. Tenancy in Common:
A form of vesting title to property owned by any two or more individuals in undivided fractional interests. These fractional interests may be unequal in quantity or duration and may arise at different times. Each tenant in common owns a share of the property, is entitled to a comparable portion of the income from the property and must bear an equivalent share of expenses. Each co-tenant may sell, lease or will to his/her heir that share of the property belonging to him/her. For example: Bruce Buyer, a single man, as to an undivided 3/4 interest and Penny Purchaser, a single woman, as to an undivided 1/4 interest.
A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having an existence and personality separate from such shareholders.
2. A Partnership*:
A partnership is an association of two or more persons who can carry on business for profit as co-owners, as governed by the Uniform Partnership Act. A partnership may hold title to real property in the name of the partnership.
3. Trustees of a Trust*:
A Trust is an arrangement whereby legal title to property is transferred by a grantor to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement, called the beneficiaries. A trust is generally not an entity that can hold title in its own name. Instead title is often vested in the trustee of the trust. For example: Bruce Buyer trustee of the Buyer Family Trust.
4. Limited Liability Companies (LLC)*:
This form of ownership is a legal entity and is similar to both the corporation and the partnership. The operating agreement will determine how the LLC functions and is taxed. Like the corporation its existence is separate from its owners.
*In cases of corporate, partnership, LLC or trust ownership - required documents may include corporate articles and bylaws, partnership agreements, LLC operating agreements and trust agreements and/or certificates.
Common Methods of Holding Title
SOLE OWNERSHIP
Sole ownership may be described as ownership by an individual or other entity capable of acquiring title. Examples of common vesting cases of sole ownership are:
1. A Single Man or Woman, an Unmarried Man or Woman or a Widow or Widower:
A man or woman who is not legally married or in a domestic partnership. For example: Bruce Buyer, a single man.
2. A Married Man or Woman as His or Her Sole and Separate Property:
A married man or woman who wishes to acquire title in his or her name alone.
The title company insuring title will require the spouse of the married man or woman acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that both spouses want title to the property to be granted to one spouse as that spouse’s sole and separate property. The same rules will apply for same sex married couples. For example: Bruce Buyer, a married man, as his sole and separate property.
3. A Domestic Partner as His or Her Sole and Separate Property:
A domestic partner who wishes to acquire title in his or her name alone.
The title company insuring title will require the domestic partner of the person acquiring title to specifically disclaim or relinquish his or her right, title and interest to the property. This establishes that both domestic partners want title to the property to be granted to one partner as that person’s sole and separate property. For example: Bruce Buyer, a registered domestic partner, as his sole and separate property.
CO-OWNERSHIP
Title to property owned by two or more persons may be vested in the following forms:1. Community Property:
A form of vesting title to property owned together by married persons or by domestic partners. Community property is distinguished from separate property, which is property acquired before marriage or before a domestic partnership by separate gift or bequest, after legal separation, or which is agreed in writing to be owned by one spouse or domestic partner.
In California, real property conveyed to a married person, or to a domestic partner is presumed to be community property, unless otherwise stated (i.e. property acquired as separate property by gift, bequest or agreement). Since all such property is owned equally, both parties must sign all agreements and documents transferring the property or using it as security for a loan. Each owner has the right to dispose of his/her one half of the community property by will. For example: Bruce Buyer and Barbara Buyer, husband and wife, as community property, or Sally Smith and Jane Smith, registered domestic partners as community property. Another example for same sex couples: Sally Smith and Jane Smith, spouses, as community property.
2. Community Property with Right of Survivorship:
A form of vesting title to property owned together by spouses or by domestic partners. This form of holding title shares many of the characteristics of community property but adds the benefit of the right of survivorship similar to title held in joint tenancy. There may be tax benefits for holding title in this manner. On the death of an owner, the decedent’s interest ends and the survivor owns all interests in the property. For example: Bruce Buyer and Barbara Buyer, husband and wife, as community property with right of survivorship, or John Buyer and Bill Buyer, spouses, as community property with right of survivorship. Another example for same sex couples: Sally Smith and Jane Smith, registered domestic partners, as community property with right of survivorship.
If you live in a community property state, you and your spouse (or registered domestic partner) may be able to avoid probate by taking title to property as “community property with the right of survivorship.” Community property states include Alaska, Arizona, California, Idaho, Nevada, Texas and Wisconsin.
Holding property as survivorship community property has certain consequences, the most important of which are that:
- when the first spouse or partner dies, the whole property automatically belongs to the survivor, and
- the property does not need to go through probate to be transferred to the survivor.
3. Joint Tenancy:
A form of vesting title to property owned by two or more persons, who may or may not be married or domestic partners, in equal interests, subject to the right of survivorship in the surviving joint tenant(s). Title must have been acquired at the same time, by the same conveyance, and the document must expressly declare the intention to create a joint tenancy estate. When a joint tenant dies, title to the property is automatically conveyed by operation of law to the surviving joint tenant(s). Therefore, joint tenancy property is not subject to disposition by will. For example: Bruce Buyer, a married man and George Buyer, a single man, as joint tenants.
Note: If a married person enters into a joint tenancy that does not include their spouse, the title company insuring title may require the spouse of the married man or woman acquiring title to specifically consent to the joint tenancy. The same rules will apply for same sex married couples and domestic partners.
4. Tenancy in Common:
A form of vesting title to property owned by any two or more individuals in undivided fractional interests. These fractional interests may be unequal in quantity or duration and may arise at different times. Each tenant in common owns a share of the property, is entitled to a comparable portion of the income from the property and must bear an equivalent share of expenses. Each co-tenant may sell, lease or will to his/her heir that share of the property belonging to him/her. For example: Bruce Buyer, a single man, as to an undivided 3/4 interest and Penny Purchaser, a single woman, as to an undivided 1/4 interest.
Other ways of vesting title include as:
1. A Corporation*:A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having an existence and personality separate from such shareholders.
2. A Partnership*:
A partnership is an association of two or more persons who can carry on business for profit as co-owners, as governed by the Uniform Partnership Act. A partnership may hold title to real property in the name of the partnership.
3. Trustees of a Trust*:
A Trust is an arrangement whereby legal title to property is transferred by a grantor to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement, called the beneficiaries. A trust is generally not an entity that can hold title in its own name. Instead title is often vested in the trustee of the trust. For example: Bruce Buyer trustee of the Buyer Family Trust.
4. Limited Liability Companies (LLC)*:
This form of ownership is a legal entity and is similar to both the corporation and the partnership. The operating agreement will determine how the LLC functions and is taxed. Like the corporation its existence is separate from its owners.
*In cases of corporate, partnership, LLC or trust ownership - required documents may include corporate articles and bylaws, partnership agreements, LLC operating agreements and trust agreements and/or certificates.
Remember
How title is vested has important legal consequences and tax consequences. The tax consequences may be different for same sex legally related couples. You may wish to consult an attorney or tax advisor to determine the most advantageous form of ownership for your particular situation.Multiple offer? Now what?
When your home is well maintained, staged well, in a great location and priced competitively, chances are you will be getting multiple offers in this market. So, how do you leverage and get the most for your home? Here’s what you could do when countering:
1. Always counter ALL offers, even the one that low-balled you. You never know as offers are rather dynamic.
2. Counter with “highest and best price”. Based on my experience, you can be almost certain to get the highest and best among multiple buyers.
3. Reduce the number of days for buyer to remove contingencies in counter.
4. The more down payment the better.
5. Do not pay for 1-year home warranty.
When you are reviewing the offers, the all cash offer with no loan or appraisal contingencies and fast closing will be most desired, even though sometimes it may mean a little lower offer price. Always go through the contract carefully with your agent to make sure you understand all the terms and conditions.
1. Always counter ALL offers, even the one that low-balled you. You never know as offers are rather dynamic.
2. Counter with “highest and best price”. Based on my experience, you can be almost certain to get the highest and best among multiple buyers.
3. Reduce the number of days for buyer to remove contingencies in counter.
4. The more down payment the better.
5. Do not pay for 1-year home warranty.
When you are reviewing the offers, the all cash offer with no loan or appraisal contingencies and fast closing will be most desired, even though sometimes it may mean a little lower offer price. Always go through the contract carefully with your agent to make sure you understand all the terms and conditions.
What is Title Insurance
Title insurance is meant to protect an owner's or a lender's financial interest in real property against loss due to title defects, liens or other matters. A title insurance policy insures against events that occurred in the past of the real estate property and the people who owned it.
There are two types of policies: owner and lender. Lenders require title insurance to protect their interest in the collateral of loans secured by real estate. Buyers purchasing properties for cash or with a mortgage lender often want title insurance, an owner’s policy, as well.
The cost of title insurance has two components: premium charges and service fees. Premium rates are based on five cost considerations, including those related to:
1. Maintaining current title information
2. Searching and examining the title to subject properties
3. Resolving or clearing defects to title
4. Covering title defects
5. Allowing for a reasonable profit
Usually, when you have a mortgage, and you use the same title company for both owner and lender title insurance, you get somewhat discount. But A federal law called the Real Estate Settlement Procedures Act (RESPA) entitles the individual homeowner to choose a title insurance company when purchasing or refinancing residential property. Typically, homeowners don't make this decision for themselves, instead relying on their bank's or attorney's choice; however, the homeowner retains the right.
Saturday, November 16, 2013
What buyers and sellers need to know about the end-of-year housing market
By David Charron
(Jonathan Ernst/REUTERS)
David Charron, president and CEO of Rockville-based multiple-listing service MRIS, writes an occasional column about the Washington-area real estate market.
It’s a stubborn truth about the real estate market that nobody has a crystal ball.
If only we could see exactly what was coming down the road, and adjust accordingly, our jobs would be much easier. Similarly, everything looks remarkably clear when viewed through the rear-view mirror.
Broadly speaking, this spring was a tough one for D.C.-area homebuyers, with not a lot of homes to choose from and lots of competition to buy.
It seems in retrospect that the combination of enormous pent-up demand and record low interest rates led to homes receiving multiple offers and being snapped up quickly. In the next year, the situation should normalize and come more into balance, with things easing up for buyers while being slightly less favorable to sellers. And while it’s never as simple as saying we anticipate a “good” or “bad” market in any given season, demand is still very high, which should make for a pretty brisk fall sales season.
Here are some of the developing trends we at MRIS are tracking this fall, and how we think they will impact the market:
• Demand will diminish. It’s no secret that the fourth quarter of the year is, comparatively speaking, a slower time of year for home sales — typically a good 15 percent lower than the third quarter. While there is often a small end-of-summer, back-from-vacation uptick in new contracts in the fall, November and December traditionally show very modest contract activity.
You can’t compare the “apples” of modest November sales to the “oranges” of brisk May sales. That said, if you are a serious buyer, opportunities will present themselves.
• Interest rates will rise. The fall/winter 2013 housing market in our area could definitely be impacted by interest rates, which are almost certain to continue to creep up.
But even if they rise another full point, which could happen by the end of next year, they are still going to be at historic lows. Rising interest rates will require committed buyers to reset their expectations. If buyers are stretching every penny they have to get a house, they’re going to have to dial back their notion of how much home they can afford.
If buyers have a little more flexibility, they’re going to have to be willing to pay a little more each month to land the home they want. This small increase in monthly payment, however, may knock a small segment of the buying population out of the market completely.
• Inventory, though improving, will remain tight. Over the past five years, the D.C. metro area has had an average of 12,000 homes for sale at any given time.
Inventory levels have declined in this area for years, but are finally creeping back up. After dropping by an average of 8.6 percent per month between April 2011 and March 2013, new listing activity showed double-digit percent increases from April through August of this year, which may represent a turning point.
Since fewer homeowners are underwater, they now are able to extract equity when selling, making sales more attractive. Thus, I believe, inventory will continue to stabilize in the coming months. The active listings registered at the end of August were 10 percent lower than August 2012, but represented a much lower year-over-year gap than at the beginning of this year in March, when active supply was a good 40 percent lower than it had been in the same period of 2012.
• Days on the market will rise. There are currently more buyers than sellers in the market, which means that homes tend to sell quickly. We are seeing DOM numbers — indicating the number of days homes stay on the market before being sold — comparable to where they were back in 2005.
Townhouse sales have had the greatest activity, with a median of only nine days on the market, while condos typically sell in 13 days and detached homes in 16. But supply and demand is a simple concept: As more sellers enter the market and the number of available properties goes up, DOM will inevitably rise as a result in the next few months.
The real estate market dynamics are always changing, and no matter where you are in the buying/selling cycle it is important to understand your housing and financial position to make the best decision in any housing market.
Today, we are in unchartered territory with the recent government shutdown. The results from the fourth quarter will be telling in terms of the repercussions of the government budget issues.
Saturday, October 26, 2013
纠结啊， CV还是SR
发信人: pinow (longtao), 信区: SanDiego
标 题: 纠结啊， CV还是SR
发信站: BBS 未名空间站 (Thu Oct 24 01:50:52 2013, 美东)
看房子也看了一段时间了， Carmel Valley vs Scrips Ranch, 真是太纠结了。 喜欢
SR的一些房子房型，但又很难割舍CV， 难啊！
SR就那么不济吗？
可不是在灌水。
我知道这个是一个永久的话题，被讨论了很多遍了。但正是因为如此， 所以还在继续
被讨论。我们的预算在CV可以买到一个还可以的SFH， 但是在SR就能买到很不错的房子
了。 SR一个很吸引人的地方是有一层楼的房子， 因为老人和我们常住，所以一层楼的
房子要方便很多， 对小孩子来说，也可以继续体验“满屋子乱跑”的快乐。 因为我们
原来的房子就是一层的， 所以一直对此有好感。
看了SR的lake point那里风景和社区都不错， 也有一些还不错的一层楼房子。 CV呢，
56南边贵得有些离谱，北边老中都喜欢去Pacific highland买新房。说实话， 新区有
好有坏， 房子新固然好， 但是社区太新反而不好。 不过朋友都住在这里， 所以将来
如果买CV，也就只能是那里了。
学区自然CV好， 不过SR的小学初中也不错啊。 就是不知道SR那里是不是像一些人说的
“很排外”。 我看那里Asian的比例也不低， 当然有不少烙印和棒子。 CV，尤其是
PCH那里老中很多， 小孩子应该会比较自在一些，当然竞争也激烈。
至于交通， 上班时间都差不多，但是走Mira Mesa是让人揪心。
前面有几位说，一旦盯上了CV，就很难放手，我想这也是人之常情，所以想多听听大家
的意见， 尤其是SR的住户的一手意见，看看SR的优势到底能不能改变我们的想法。
发信人: JenniferZ (http://jenniferzhengrealty.blogspot.com), 信区: SanDiego
标 题: Re: 纠结啊， CV还是SR
发信站: BBS 未名空间站 (Sat Oct 26 15:07:51 2013, 美东)
看了大家你一言我一语的，是不是更纠结了？那么大妈我就以SR近十年居民和房地产经
纪人的双重身份，再来淘淘江湖.
根据你的现有情况，买CV，而且就局限于Pacific Highland Ranch，以下是理由：
1）天平已经倾向于CV了，象牛角妹妹说的，强扭的瓜不甜。SR真没有不济，你的这个
问题，是否表明你认为SR不济？事实上你希望从大家的帖子里得到的是一些SR不济的
confirmation,以坚定你在CV买房的信心和决心？哈哈，我的猜测和分析，不肯定全对。
2）在Pacific Highland Ranch买房，可能更多是为了老人。老人语言不通，住那里平时出
去闲路有伴。这在SR即便是CV的其它部分都是少见的。所以，你现在
要了解的是那里有没有楼下有卧室的房型，这样老人不用上下楼。
要说CV的老美或SR的老美，他们并无二致。与其说他们除了点头招呼不和亚裔聊很多是
出于排外和骄傲，不如说他们不知道怎么和我们打交道。这就像我们对他们一样。彼此
从小看的是不一样的电影，读的是不一样的书，崇拜的是不一样的star, 喜欢的是不一
样的运动，那聊的话题自然就很有限。所以我们多多少少都有和彼此交流的恐惧症，结
果就以少交流或不交流ending. 我们老中还起码飘洋过海来这里了，他们大多根本没去
过中国，对我们的了解更有限，所以他们比我们更不知道how to handle us :-)
而我们的小孩在这里出生长大，他们和我们不一样。如果不是更多源于我们家长自己的
因素，他们和其他国家的小孩可以玩得很好。所以我不限定或有意无意地引导自己的小
孩只结交中国小朋友，而是鼓励他和其它国家玩得来的小朋友交朋友。无论我们现在住
在中国人很多的社区也好，班上中国小朋友很多也好，最终他们长大后要deal with/
work with的还是和我们现在一样。
再说说SR的方便，CV附近没有costco with gas station, 没有home depot, 没有
target, 没有walmart, 买菜一样得上H-mart,lucky seafood等等，没有Marshall,
TJMax和Nordstrom Rock， 而这些对有小孩以及节俭的生活是不可缺少的。哪怕上个中
文学校，我们SR五分钟车程就到。当然，如果我当初喜欢了CV的一个房住了，我也可以
罗列CV的一堆好处的。这不叫随遇而安，敝帚自珍嘛。
最后，在SR或CV买房的决定，不象有些决定是turning point或irreversable的。也许
settle down了就喜欢了。
周末清早码字，有伪币不？
标 题: 纠结啊， CV还是SR
发信站: BBS 未名空间站 (Thu Oct 24 01:50:52 2013, 美东)
看房子也看了一段时间了， Carmel Valley vs Scrips Ranch, 真是太纠结了。 喜欢
SR的一些房子房型，但又很难割舍CV， 难啊！
SR就那么不济吗？
可不是在灌水。
我知道这个是一个永久的话题，被讨论了很多遍了。但正是因为如此， 所以还在继续
被讨论。我们的预算在CV可以买到一个还可以的SFH， 但是在SR就能买到很不错的房子
了。 SR一个很吸引人的地方是有一层楼的房子， 因为老人和我们常住，所以一层楼的
房子要方便很多， 对小孩子来说，也可以继续体验“满屋子乱跑”的快乐。 因为我们
原来的房子就是一层的， 所以一直对此有好感。
看了SR的lake point那里风景和社区都不错， 也有一些还不错的一层楼房子。 CV呢，
56南边贵得有些离谱，北边老中都喜欢去Pacific highland买新房。说实话， 新区有
好有坏， 房子新固然好， 但是社区太新反而不好。 不过朋友都住在这里， 所以将来
如果买CV，也就只能是那里了。
学区自然CV好， 不过SR的小学初中也不错啊。 就是不知道SR那里是不是像一些人说的
“很排外”。 我看那里Asian的比例也不低， 当然有不少烙印和棒子。 CV，尤其是
PCH那里老中很多， 小孩子应该会比较自在一些，当然竞争也激烈。
至于交通， 上班时间都差不多，但是走Mira Mesa是让人揪心。
前面有几位说，一旦盯上了CV，就很难放手，我想这也是人之常情，所以想多听听大家
的意见， 尤其是SR的住户的一手意见，看看SR的优势到底能不能改变我们的想法。
发信人: JenniferZ (http://jenniferzhengrealty.blogspot.com), 信区: SanDiego
标 题: Re: 纠结啊， CV还是SR
发信站: BBS 未名空间站 (Sat Oct 26 15:07:51 2013, 美东)
看了大家你一言我一语的，是不是更纠结了？那么大妈我就以SR近十年居民和房地产经
纪人的双重身份，再来淘淘江湖.
根据你的现有情况，买CV，而且就局限于Pacific Highland Ranch，以下是理由：
1）天平已经倾向于CV了，象牛角妹妹说的，强扭的瓜不甜。SR真没有不济，你的这个
问题，是否表明你认为SR不济？事实上你希望从大家的帖子里得到的是一些SR不济的
confirmation,以坚定你在CV买房的信心和决心？哈哈，我的猜测和分析，不肯定全对。
2）在Pacific Highland Ranch买房，可能更多是为了老人。老人语言不通，住那里平时出
去闲路有伴。这在SR即便是CV的其它部分都是少见的。所以，你现在
要了解的是那里有没有楼下有卧室的房型，这样老人不用上下楼。
要说CV的老美或SR的老美，他们并无二致。与其说他们除了点头招呼不和亚裔聊很多是
出于排外和骄傲，不如说他们不知道怎么和我们打交道。这就像我们对他们一样。彼此
从小看的是不一样的电影，读的是不一样的书，崇拜的是不一样的star, 喜欢的是不一
样的运动，那聊的话题自然就很有限。所以我们多多少少都有和彼此交流的恐惧症，结
果就以少交流或不交流ending. 我们老中还起码飘洋过海来这里了，他们大多根本没去
过中国，对我们的了解更有限，所以他们比我们更不知道how to handle us :-)
而我们的小孩在这里出生长大，他们和我们不一样。如果不是更多源于我们家长自己的
因素，他们和其他国家的小孩可以玩得很好。所以我不限定或有意无意地引导自己的小
孩只结交中国小朋友，而是鼓励他和其它国家玩得来的小朋友交朋友。无论我们现在住
在中国人很多的社区也好，班上中国小朋友很多也好，最终他们长大后要deal with/
work with的还是和我们现在一样。
再说说SR的方便，CV附近没有costco with gas station, 没有home depot, 没有
target, 没有walmart, 买菜一样得上H-mart,lucky seafood等等，没有Marshall,
TJMax和Nordstrom Rock， 而这些对有小孩以及节俭的生活是不可缺少的。哪怕上个中
文学校，我们SR五分钟车程就到。当然，如果我当初喜欢了CV的一个房住了，我也可以
罗列CV的一堆好处的。这不叫随遇而安，敝帚自珍嘛。
最后，在SR或CV买房的决定，不象有些决定是turning point或irreversable的。也许
settle down了就喜欢了。
周末清早码字，有伪币不？
Tuesday, October 15, 2013
2014 New Laws RE
2014 NEW LAWS FOR CALIFORNIA'S REALTORS®
Just hours before his deadline at midnight last night, Governor Jerry Brown signed or vetoed all the legislative bills on his desk to end the legislative process for 2013. C.A.R.’s Legal Department has summarized and made available on our webpage about 130 of these New Laws mostly taking effect next year that may affect your real estate practice or otherwise be of interest to REALTORS®. The full text of each new law is available at http://leginfo.legislature.ca.
This legislative session’s new laws cover a wide range of topics of interest, including disclosure requirements, licensing matters, adjoining owners, affiliated real estate services, landlord-tenant, subdivisions, land use, employment, and many more. Some of the significant new laws that you as home owner or landlord might be interested -
TDS Revised to Include Construction Defect Litigation
Effective July 1, 2014, the Real Estate Transfer Disclosure Statement (TDS) has been revised to require disclosure of the seller’s knowledge of certain construction defect claims for newly constructed homes under a law commonly referred to as SB 800. As amended, the TDS will inquire, in question 16 of Section 11C, as to whether a seller is aware of any claims or lawsuits involving construction defects threatening to or affecting the real property, including any pre-litigation claims of a construction defect, claims of breach of warranty, or claims for breach of an enhanced protection agreement under SB 800. Senate Bill 652.
FTB Information Return for Out-of-State Acquisition in 1031 Exchange
For any 1031 exchange that occurs on or after January 1, 2014, a taxpayer acquiring a "like-kind" property located outside of California must file an information return with the Franchise Tax Board (FTB) for that taxable year and every year thereafter in which the gain or loss from the exchange has not been recognized. If a taxpayer fails to file such information return and tax returns, the FTB may propose to assess the amount of tax, interest, and penalties due by estimating net income from any available information, including the amount of gain. Assembly Bill 92.
Adjoining Owners Equally Responsible for Shared Fences and Boundaries
Commencing January 1, 2014, adjoining landowners must share equally the responsibility for maintaining boundaries and monuments between them. Adjoining landowners are presumed to share an equal benefit from any fence dividing their properties, as well as equal costs for construction or maintenance, unless otherwise agreed in writing. This new law also provides specific procedural requirements for an owner who intends to incur costs for a division fence to notify the adjoining owner of the estimated costs and other information. Existing law enacted in 1872 which requires a homeowner who fully encloses a property to refund a neighbor a just proportion of the value of a division fence has been repealed. Assembly Bill 1404.
Smoke Detectors Specifications Changed
Starting on July 1, 2014, the State Fire Marshall will not approve a battery-operated smoke alarm unless it contains a non-replaceable, non-removable battery capable of powering the smoke alarm for at least 10 years. This rule was originally slated to take effect on January 1, 2014. Until July 1, 2015, an exception to this rule applies to smoke alarms ordered by, or in the inventory of, an owner, managing agent, contractor, wholesaler, or retailer on or before July 1, 2014. Furthermore, starting January 1, 2015, the State Fire Marshal will not approve a smoke alarm unless it does all of the following: (1) displays the date of manufacture on the device; (2) provides a place on the device to insert the date of installation; and (3) incorporate a hush feature. A previous requirement for the smoke alarm to incorporate an end-of-life feature that provides notice that the device needs to be replaced has been eliminated. The requirements taking effect on January 1, 2015 was originally slated to take effect on January 1, 2014. The State Fire Marshal has the authority to create exceptions to these requirements. Senate Bill 745.
Landlord Required to Provide Specific Utility Rate Schedules
Starting January 1, 2014, a master-meter customer of an apartment building, mobilehome park, or similar residential complex, must post in a conspicuous place the applicable specific current residential gas or electrical rate schedule as published by the serving utility, rather than the prevailing residential utilities rate schedule as previously required. Alternatively, the landlord as a master-meter customer may elect to post a website address for a tenant to access the schedule as long as the landlord also does the following: (1) state in the posting that an individual user may request a copy of the specific current residential gas or electrical rate schedule from the master-meter customer; and (2) provide the schedule upon request at no cost. Senate Bill 196.
Protection of Victims of Human Trafficking as Tenants
Beginning January 1, 2014, a residential tenant can terminate a tenancy within 30 days by notifying the landlord that the tenant was a victim of human trafficking as defined. The tenant’s notice to terminate tenancy must generally include a copy of a police report or court order regarding the tenant or tenant’s household member. From January 1, 2014 to January 2016, however, a tenant may simply provide documentation from a qualified third party professional indicating that the tenant or household member is seeking assistance for physical or mental injuries resulting from the offense. This law also prohibits a landlord from terminating a tenancy, or failing to renew a tenancy, based on acts of human trafficking if documented by a police report or protective court order and the wrongdoer is not a tenant of the same dwelling unit. The landlord, however, may terminate the tenancy if, after invoking protection under this law, the tenant allows the wrongdoer named in the police report or protective order to visit the property, or the landlord reasonably believes that the wrongdoer poses a physical threat to other tenants or to the tenant’s right to quiet possession. Existing law already protects a tenant if the tenant or tenant’s household member is a victim of domestic violence, sexual assault, or elder or dependent adult abuse. Senate Bill 612.
Minimum Wage Increased to $10 Per Hour
Minimum wage in California has been increased from $8 per hour to $10 per hour. A one-dollar increment from $8 per hour to $9 per hour will come into effect on July 1, 2014, and another one-dollar increment from $9 per hour to $10 per hour will come into effect on January 1, 2016. The minimum wage has been $8 per hour since January 1, 2008. Assembly Bill 10.
Just hours before his deadline at midnight last night, Governor Jerry Brown signed or vetoed all the legislative bills on his desk to end the legislative process for 2013. C.A.R.’s Legal Department has summarized and made available on our webpage about 130 of these New Laws mostly taking effect next year that may affect your real estate practice or otherwise be of interest to REALTORS®. The full text of each new law is available at http://leginfo.legislature.ca.
This legislative session’s new laws cover a wide range of topics of interest, including disclosure requirements, licensing matters, adjoining owners, affiliated real estate services, landlord-tenant, subdivisions, land use, employment, and many more. Some of the significant new laws that you as home owner or landlord might be interested -
TDS Revised to Include Construction Defect Litigation
Effective July 1, 2014, the Real Estate Transfer Disclosure Statement (TDS) has been revised to require disclosure of the seller’s knowledge of certain construction defect claims for newly constructed homes under a law commonly referred to as SB 800. As amended, the TDS will inquire, in question 16 of Section 11C, as to whether a seller is aware of any claims or lawsuits involving construction defects threatening to or affecting the real property, including any pre-litigation claims of a construction defect, claims of breach of warranty, or claims for breach of an enhanced protection agreement under SB 800. Senate Bill 652.
FTB Information Return for Out-of-State Acquisition in 1031 Exchange
For any 1031 exchange that occurs on or after January 1, 2014, a taxpayer acquiring a "like-kind" property located outside of California must file an information return with the Franchise Tax Board (FTB) for that taxable year and every year thereafter in which the gain or loss from the exchange has not been recognized. If a taxpayer fails to file such information return and tax returns, the FTB may propose to assess the amount of tax, interest, and penalties due by estimating net income from any available information, including the amount of gain. Assembly Bill 92.
Adjoining Owners Equally Responsible for Shared Fences and Boundaries
Commencing January 1, 2014, adjoining landowners must share equally the responsibility for maintaining boundaries and monuments between them. Adjoining landowners are presumed to share an equal benefit from any fence dividing their properties, as well as equal costs for construction or maintenance, unless otherwise agreed in writing. This new law also provides specific procedural requirements for an owner who intends to incur costs for a division fence to notify the adjoining owner of the estimated costs and other information. Existing law enacted in 1872 which requires a homeowner who fully encloses a property to refund a neighbor a just proportion of the value of a division fence has been repealed. Assembly Bill 1404.
Smoke Detectors Specifications Changed
Starting on July 1, 2014, the State Fire Marshall will not approve a battery-operated smoke alarm unless it contains a non-replaceable, non-removable battery capable of powering the smoke alarm for at least 10 years. This rule was originally slated to take effect on January 1, 2014. Until July 1, 2015, an exception to this rule applies to smoke alarms ordered by, or in the inventory of, an owner, managing agent, contractor, wholesaler, or retailer on or before July 1, 2014. Furthermore, starting January 1, 2015, the State Fire Marshal will not approve a smoke alarm unless it does all of the following: (1) displays the date of manufacture on the device; (2) provides a place on the device to insert the date of installation; and (3) incorporate a hush feature. A previous requirement for the smoke alarm to incorporate an end-of-life feature that provides notice that the device needs to be replaced has been eliminated. The requirements taking effect on January 1, 2015 was originally slated to take effect on January 1, 2014. The State Fire Marshal has the authority to create exceptions to these requirements. Senate Bill 745.
Landlord Required to Provide Specific Utility Rate Schedules
Starting January 1, 2014, a master-meter customer of an apartment building, mobilehome park, or similar residential complex, must post in a conspicuous place the applicable specific current residential gas or electrical rate schedule as published by the serving utility, rather than the prevailing residential utilities rate schedule as previously required. Alternatively, the landlord as a master-meter customer may elect to post a website address for a tenant to access the schedule as long as the landlord also does the following: (1) state in the posting that an individual user may request a copy of the specific current residential gas or electrical rate schedule from the master-meter customer; and (2) provide the schedule upon request at no cost. Senate Bill 196.
Protection of Victims of Human Trafficking as Tenants
Beginning January 1, 2014, a residential tenant can terminate a tenancy within 30 days by notifying the landlord that the tenant was a victim of human trafficking as defined. The tenant’s notice to terminate tenancy must generally include a copy of a police report or court order regarding the tenant or tenant’s household member. From January 1, 2014 to January 2016, however, a tenant may simply provide documentation from a qualified third party professional indicating that the tenant or household member is seeking assistance for physical or mental injuries resulting from the offense. This law also prohibits a landlord from terminating a tenancy, or failing to renew a tenancy, based on acts of human trafficking if documented by a police report or protective court order and the wrongdoer is not a tenant of the same dwelling unit. The landlord, however, may terminate the tenancy if, after invoking protection under this law, the tenant allows the wrongdoer named in the police report or protective order to visit the property, or the landlord reasonably believes that the wrongdoer poses a physical threat to other tenants or to the tenant’s right to quiet possession. Existing law already protects a tenant if the tenant or tenant’s household member is a victim of domestic violence, sexual assault, or elder or dependent adult abuse. Senate Bill 612.
Minimum Wage Increased to $10 Per Hour
Minimum wage in California has been increased from $8 per hour to $10 per hour. A one-dollar increment from $8 per hour to $9 per hour will come into effect on July 1, 2014, and another one-dollar increment from $9 per hour to $10 per hour will come into effect on January 1, 2016. The minimum wage has been $8 per hour since January 1, 2008. Assembly Bill 10.
Tuesday, September 24, 2013
谨防乳腺癌
接二连三的接触到身边的朋友熟人得Breast Cancer， 决定写一写。其实大家上网一查，所有信息都在那边，我只是想在这里唤起大家的意识，养成每月自查的好习惯。
Breast cancer以前大多在50多岁的妇女身上发生，但随着环境、饮食结构的变化，生活的压力，它越来越有年轻化的趋势。我的好邻居她的女儿去年被查出乳腺癌时还没过41岁的生日，我老公朋友的老婆前年患乳腺癌也是差不多这岁数，我以前的同事加好朋友得乳腺癌时才五十岁。前两天朋友微信中复旦女博士于娟32岁被确诊患上乳腺癌， 一年半不到就没了，让人叹息。她们都没有家庭病史。
以下是Breast Cancer的一些数据 -
Breast cancer is the most common cancer among American women, except for skin cancers. About 1 in 8 (12%) women in the US will develop invasive breast cancer during their lifetime.
The American Cancer Society's estimates for breast cancer in the United States for 2013 are:
- About 232,340 new cases of invasive breast cancer will be diagnosed in women.
- About 64,640 new cases of carcinoma in situ (CIS) will be diagnosed (CIS is non-invasive and is the earliest form of breast cancer).
- About 39,620 women will die from breast cancer
不但是在美国，近几年在中国，乳腺癌的发病率也很高，而且发现还往往是后期了。
在35-40之间，女性要做一个mammogram作为baseline, 过了40岁以后每年要做mammogram， 但通过mammogram发现breast cancer的时候往往已经不是早期了。
所以我提醒姐妹们，一定要养成每月定期自查的好习惯。每月可选在经期开始后的第七天，可以站着也可以躺着自查。把一侧的手臂举高到后脖，然后用另一只手的中间三个手指均匀的从armpit一直到整个乳房的检查。 力度从小、中一直到大以检查从浅至深的tissue。具体的你们可以查网上或consult doctor。避开经期前后，因为那几天breast本身就比较tender。定期检查你才能觉察是否和上月检查时有任何异样。
另外，要注意饮食，多吃水果和蔬菜。肉类中的蛋白质在蔬菜中也能汲取。Peas、Broccoli、Spinach、Artichokes和Potatoes（豌豆，西兰花，菠菜，朝鲜蓟和土豆）都是含蛋白质很高的蔬菜。
最后很重要的，要保持好心情。这说来容易做起来不易。所以时时提醒自己，这世上除了生命，没有过不去的。有经济损失时，想想没有病痛的幸福和省钱；有人和事让你烦的时候，深呼吸三口，想想你就在这世上活个两万个左右的日子，让烦恼萦绕太不值得？心情不好的时候要有出口的地方，朋友也好，家人也好，兴趣爱好也好，总之不要把它闷在心里。
Friday, August 30, 2013
投资房的Q and A
网友的post -
当看到一个提精神的“好房子”，我忍不住就拎起电话问经纪了：bla bla .... 但对方总先会告诉我: “啊，我看看，啊，你这个房子的down payment 是多少多少啊，” 然后才说其他东西。我总纳闷难道人们买房都是首先考虑是借多少 loan 吗？是对于投资划算而言？还是经纪估计我肯定要借 Loan 先吓我一下？
1. 我不借Loan不行吗？
2. 或者借一部分是划算的？借多少比例呢？
3. 全现金买房有什么不好？当然不好之一我也知道，出去的很难收得回来。
4. 光借 Loan 有什么好？有什么不好？
借此请教各位买房大拿下，另外，因为也有其他地方的朋友问我并帮着看看在圣地亚哥
的房子。我自己得好好上上这方面的课，很多问题真是好out。
我的回答 -
不是你out了，而是人各有所长。比如我看到房贴，眼睛也亮了，声音也响了，因为那
是我的爱好嘛，所以自然用心了解，而一看到大家讨论做精致的菜肴和甜点，我就自愧
无言了，象我这样偶尔请朋友到家吃饭，做菜还要看着菜谱做的人，还有啥好说的妮？
言归正传，以下是我个人的看法和经验。
我估计你买的是投资房，我估计你的经纪是和你初次合作。通常如果你是new client,
agent会问你downpayment付多少，不是他八卦，而是一个qualify客户的必要性，她对
你的资金状况需要有底，接下来make offer的时候她再确认下就可以了。另外， 看上
了合适的房子后，她跟对方agent communicate时候可以把这个重点提出来你是个
strong buyer with this this much of downpayment. 所以你有米，不用担心，要让
经纪知道 ：-）
不借loan当然行，只是资金全进去了，如果你有其它更好的投资渠道，你就暂时没有分
流了。当然你以后也可以refinance把钱拿出来， 但那总是一道程序。用现金购房，好
处是抢到房子的机率提高，如果大家出价一样，那基本非你莫属，甚至也有sellers在另外的offer比你高出$5000之内的情况下，也是有可能考虑接受你的。当然总有exception, 这里恕不展开了。如果你考虑买的是二十五万以下的房子，可以考虑现金。
之所以说这个价位用现金，还有一个因素是，这个价位的房子所在的complex很多unit
是出租房，我在Mira Mesa和Carmel Vally都碰到过。如果你贷款买投资房，lender有
二个要求， 一, owner occupancy不能少于51%，二，home owner delinquency rate不
能超过15%， 这两个很好记，一个15，一个51。所以我的客户如果是买四十万以下价位
的投资房，为小心起见我第一件事就是打电话给它的HOA了解这个情况，这个你问对方
经纪，他们大部分时间没有on hand info. 弄清楚了就避免下了offer等到贷款有困难
时才退出，伤财劳命。也不是绝对没有lender对此提供贷款， 但有的话，term和rate
就不同了。
如果买的是价位高一点的房子，可以考虑贷款。 投资房的贷款利率比自助房大约高一
个quarter. 年终报税的时候interest是可以write off的。如果你全现金，出租收入又
不错，那你的passive income税也是要交掉一部分的。特别是你的家庭收入已经在较高
bracket的话。用贷款，就当是tenant帮你付贷款。 对于投资房，lender一般要求downpayment最少25%.
Hope it helps.
当看到一个提精神的“好房子”，我忍不住就拎起电话问经纪了：bla bla .... 但对方总先会告诉我: “啊，我看看，啊，你这个房子的down payment 是多少多少啊，” 然后才说其他东西。我总纳闷难道人们买房都是首先考虑是借多少 loan 吗？是对于投资划算而言？还是经纪估计我肯定要借 Loan 先吓我一下？
1. 我不借Loan不行吗？
2. 或者借一部分是划算的？借多少比例呢？
3. 全现金买房有什么不好？当然不好之一我也知道，出去的很难收得回来。
4. 光借 Loan 有什么好？有什么不好？
借此请教各位买房大拿下，另外，因为也有其他地方的朋友问我并帮着看看在圣地亚哥
的房子。我自己得好好上上这方面的课，很多问题真是好out。
我的回答 -
不是你out了，而是人各有所长。比如我看到房贴，眼睛也亮了，声音也响了，因为那
是我的爱好嘛，所以自然用心了解，而一看到大家讨论做精致的菜肴和甜点，我就自愧
无言了，象我这样偶尔请朋友到家吃饭，做菜还要看着菜谱做的人，还有啥好说的妮？
言归正传，以下是我个人的看法和经验。
我估计你买的是投资房，我估计你的经纪是和你初次合作。通常如果你是new client,
agent会问你downpayment付多少，不是他八卦，而是一个qualify客户的必要性，她对
你的资金状况需要有底，接下来make offer的时候她再确认下就可以了。另外， 看上
了合适的房子后，她跟对方agent communicate时候可以把这个重点提出来你是个
strong buyer with this this much of downpayment. 所以你有米，不用担心，要让
经纪知道 ：-）
不借loan当然行，只是资金全进去了，如果你有其它更好的投资渠道，你就暂时没有分
流了。当然你以后也可以refinance把钱拿出来， 但那总是一道程序。用现金购房，好
处是抢到房子的机率提高，如果大家出价一样，那基本非你莫属，甚至也有sellers在另外的offer比你高出$5000之内的情况下，也是有可能考虑接受你的。当然总有exception, 这里恕不展开了。如果你考虑买的是二十五万以下的房子，可以考虑现金。
之所以说这个价位用现金，还有一个因素是，这个价位的房子所在的complex很多unit
是出租房，我在Mira Mesa和Carmel Vally都碰到过。如果你贷款买投资房，lender有
二个要求， 一, owner occupancy不能少于51%，二，home owner delinquency rate不
能超过15%， 这两个很好记，一个15，一个51。所以我的客户如果是买四十万以下价位
的投资房，为小心起见我第一件事就是打电话给它的HOA了解这个情况，这个你问对方
经纪，他们大部分时间没有on hand info. 弄清楚了就避免下了offer等到贷款有困难
时才退出，伤财劳命。也不是绝对没有lender对此提供贷款， 但有的话，term和rate
就不同了。
如果买的是价位高一点的房子，可以考虑贷款。 投资房的贷款利率比自助房大约高一
个quarter. 年终报税的时候interest是可以write off的。如果你全现金，出租收入又
不错，那你的passive income税也是要交掉一部分的。特别是你的家庭收入已经在较高
bracket的话。用贷款，就当是tenant帮你付贷款。 对于投资房，lender一般要求downpayment最少25%.
Hope it helps.
Tuesday, August 20, 2013
Who does it belong to?
Did they have reason to feel this way? And how can we avoid situations like these from occurring in the future?
Let’s take a brief look fixtures and their definitions. A fixture begins as personal property but becomes a fixture once it is fixed (or annexed) to the home. This is usually done by the application of plaster, cement, screws, nuts, bolts, or nails.
There are a few tests the courts use to determine whether something is personal property or a fixture.
1.) Annexation-this is the most basic test used, how securely was the item fixed to the property?
2.) Adaptation-this refers to whether the item is vital and adapted to the use of the property. Is the item a custom piece made for the home or is it a standardized piece that can be easily moved and put into another property?
3.) Intention-did the owner install the piece to increase the value of the home? Usually the rules of annexation and adaptation, show the intention of the owner.
Your best bet is to ask lots of questions when buying a home. And when selling your home, be sure to disclose items you’d like to remove when you sell. Your highest advantage is having an agent that can walk you through these challenges, and perhaps avoid this difficult situation all together!
转自my broker's blog at http://www.abacus888.com/
在交易当中经常碰到这个问题，make sure it's yours!
Friday, August 2, 2013
So now we know where all that "Shadow Inventory" went!
早在2011第三第四个季度和2012年年初，一些看跌的人认为有那么多的银行关闭屋 (so called "shadow inventory")， 上市对房市将会是一个巨大的冲击。Guess what? They were not even put onto the market for individual buyers. They were all bought (bundled) by private equity companies finished around July 2012. They are now for rent!
I found this article in July's Wall Street Journal。Enjoy reading!
I found this article in July's Wall Street Journal。Enjoy reading!
Two major Wall Street firms are in detailed discussions
to create and sell the world's first bond backed by home-rental payments, people
familiar with the matter say.
Blackstone Group LP BX -0.60%is in
negotiations to bundle monthly rental payments on about 1,500 to 1,700 of its
homes. The private-equity giant is among the firms that have spent billions
buying homes out of foreclosure, an investment strategy that has helped to
bolster demand and strengthen the U.S. housing market.
MCT/Zuma Press
Blackstone and other firms have spent billions buying
homes and renting them. Above, a Blackstone-purchased home in Roseville,
Calif.
The bond comprised of the Blackstone homes would be
structured and marketed to investors by Deutsche Bank AG, DBK.XE -0.76%the
people say.
The creation of a new type of security shows that Wall
Street's financial engineering, blamed for deepening the financial crisis, is
revving back up.
Some investors and analysts have said they are wary of a
bond backed by rental payments, citing the dearth of long-term data on how often
tenants living in previously foreclosed homes pay their rent on time.
Also, some investors and analysts have raised concerns
about how quickly firms have purchased thousands of homes, and whether they have
the management track record and expertise to oversee the maintenance of
properties scattered across the country.
But investors still are hungry for the high returns that
are likely to accompany a first-of-its-kind deal, which would be viewed as more
risky than well-known securities.
The size of the Blackstone-Deutsche Bank deal is
expected to be around $240 million to $275 million, the people familiar with the
bond say.
The top-rated slice could receive a rating as high as
single-A or triple-B from some of the credit-rating firms, some of the people
familiar with the deal add.
The deal is expected to be backed by equity and
properties that are worth between $300 million to $350 million, the people
familiar with the matter said.
The deal could be available to investors as soon as
August or September. But the metrics could change as the details aren't
completed, cautioned some of those people.
And Blackstone could still walk away from a
securitization or chose to sell a deal without letter-grade ratings from the
credit-rating firms, say people familiar with the deal.
Spokeswomen for Deutsche Bank and Blackstone declined to
comment.
Blackstone has emerged as the biggest investor in
single-family rental homes, spending more than $5.5 billion since the beginning
of last year to acquire about 32,000 homes in around a dozen major U.S.
markets.
Other companies, such as American Homes 4 Rent, Colony
Capital LLC and Waypoint Real Estate Group LLC also have been snapping up
thousands of foreclosed homes, revamping them and renting them out. American
Homes 4 Rent is expected to price shares of its stock Wednesday in an initial
public offering.
The companies have transformed what has traditionally
been a space for "mom and pop" investors to earn cash into an institutional
investment strategy that has helped to boost home prices in cities across the
U.S. The investment strategy often is known as buy-to-rent.
The structure of the deal would be similar to
better-known securities, such as those backed by home or commercial mortgages.
Securitization is the process of pooling together
assets—whether that is rental or mortgage payments—to back a deal. That deal is
then "sliced" into different layers, or bonds, according to the risk of the
underlying assets and the order in which bondholders will be paid as the
payments from the underlying assets roll in.
Each layer is sold as a "class" of bonds to investors.
The top layer is paid first, then the second and so on. The riskiest slices
offer the highest potential returns.
While securitization got a bad rap because of the losses
investors suffered after purchasing such deals before the financial crisis,
proponents say it can be an effective process to tap the capital markets for
financing by turning thousands of separate cash-generating assets into
bonds.
Analysts have said in recent months that Blackstone and
Deutsche Bank were a likely pairing on an initial rental securitization.
Blackstone's real-estate prowess could quell some
investors' fears about management of the properties, while Deutsche Bank has led
the charge among Wall Street banks offering loans to real-estate firms buying
foreclosed homes.
Deutsche Bank has led the issuance of around $3.6
billion of loans to Blackstone in recent months, coordinating with other major
Wall Street banks. Debt financing allows borrowers such as Blackstone to buy
more properties at lower costs. The sale of a Blackstone-backed securitization
would bring still more money to the company.
An investment-grade rating from credit-rating firms
would allow more investors to purchase slices of the Blackstone-Deutsche Bank
deal than if it were rated lower.
Many investors have internal guidelines that only allow
them to purchase securities rated above a certain level.
Moody's Investors Service, Standard & Poor's Ratings
Services, Fitch Ratings, Kroll Bond Rating Agency Inc. and Morningstar Credit
Ratings LLC are among the firms that have been approached to rate a potential
deal, the people said, but it isn't clear which firms would issue final
letter-grade ratings if the deal closes.
It also isn't clear what returns the deal would offer
investors or which investors would consider buying slices of this new type of
security. Other deals also are in the pipeline, some of the people said, but it
is unclear at what stage.
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