5 Questions for the First-Time Homebuyer

For you first time home buyers out there, here is a great article from RISMedia with questions you need to consider if you are looking to buy a home. . . 



5 Questions for the First-Time Homebuyer

Foreclosure Rates Near a ‘Significant Milestone’

Foreclosure Rates Near a ‘Significant Milestone’



Foreclosures continue to fall across the country and the return to normal levels may be on the horizon for many places, according to a new report.

Foreclosure filings fell 4 percent in February, reaching the lowest level since July 2006, according to RealtyTrac’s U.S. Foreclosure Market Report. Foreclosure filings reflect the number of default notices, scheduled auctions, and bank repossessions. The U.S. foreclosure rate now stands at one in every 1,295 homes that received a foreclosure filing in February.

"Given that August 2006 was the peak of the housing bubble, this eight-and-a-half year low in foreclosure activity is a significant milestone and a sign that nationwide foreclosure activity is on track to return to historic norms this year — and is possibly even headed below historic norms given the skinny-jeans-tight lending standards over the past five years," says Daren Blomquist, vice president at RealtyTrac. "In markets where foreclosures were processed more efficiently we are seeing foreclosure numbers now below pre-crisis levels in some cases. Conversely, the cleanup of deferred distress is continuing in markets where a logjam of in-limbo foreclosures is still lingering from the housing crisis — as evidenced by rebounding foreclosure activity in those markets."

24 states posted year-over-year increases in foreclosure activity. Activity was most elevated in Massachusetts (up 53% year-over-year) and New York, up 19 percent.

States With the Highest Foreclosure Rates

The following states posted the nation’s highest foreclosure rates:

1. Maryland: 1 in every 564 housing units received a foreclosure filing in February (foreclosure activity has fallen 1 percent compared to a year ago there, however)

2. Nevada: 1 in every 569 homes received a foreclosure filing (a 12 percent rise from a year ago mostly from a rise in foreclosure starts)

3. Florida: 1 in every 570 housing units (despite a 35 percent decrease in foreclosure activity compared to a year ago)

4. Indiana: 1 in every 871 housing units

5. Idaho: 1 in every 877 housing units

6. New Jersey: 1 in every 895 housing units

7. Illinois: 1 in every 906 housing units

8. Delaware: 1 in every 957 housing units

9. Ohio: 1 in every 1,000 housing units

10. North Carolina: 1 in every 1,088 housing units


Source: RealtorMag online
http://realtormag.realtor.org/daily-news/2015/03/20/foreclosure-rates-near-significant-milestone?om_rid=AAFmZk&om_mid=_BVDGcuB9AGT$$W&om_ntype=RMODaily

The Hottest Trends In Outdoor Living

The Hottest Trends In Outdoor Living

Gone are the days when the yard is used for just a few months. Today, the outdoors are an extension of the indoors, with gracious spaces for eating, lounging, and playing year-round. The latest trends in outdoor living have you covered - literally.

Patio covers

Adding a pergola or arbor to your outdoor space can protect you from the elements, giving you year-round access no matter the climate. Add space heaters and ceiling fans to make it even more inviting. Built-in is best, but if you're looking for a more affordable option, head for your local improvement or big box store, where a variety of hard- and soft-top options can easily transform your space and give you the coverage you want without having to hire a construction crew.

Hardscape and Softscape

Interlocking pavestones and large-scale pavers are two notable trends for hardscapes. Stained and stamped concrete also remains popular as a way to achieve a high-end look that mimics stone for a minimal cost.

With droughts continuing in many areas, homeowners are increasingly looking for ways to create a yard that needs less water. One of those ways is getting rid of the grass, which explains the growth of artificial grass products.

"Want a picture-perfect lawn? Maybe fake grass is the answer," said houselogic. "It solves watering, weeding, and fertilizing woes. Synthetic grass for landscaping and recreation is growing 10% to 15% a year in the U.S."

Lounge Space

The outdoor living room has gone beyond being a trend to become a must-have in today's homes.

Comfortable outdoor furniture that looks like it could belong inside, wall-hung flat screen TVs, and outdoor fireplaces create cozy spaces that bring the action—and the family—outside.

Outdoor Kitchens

Outdoor kitchens are another feature that has transcended the idea of being a trend. Today, they are every bit as amenitizied—and sometimes even more—than the indoor kitchen.

"These cooking areas feature all the accessories and niceties of indoor kitchens so you never have to go inside," said Baybreeze Patio. "Refrigerators, grills, smokers, stoves, warming drawers, beer taps, and of course, the kitchen sink ensure outdoor enthusiasts have everything they need to prepare the meal and more.

Water Features

Whether you're trying to drown out street noise, create a Zen space in your yard, or just like the way a fountain looks, adding a water feature is a great way to bring interest and function to your outdoor space.

Water features have been steadily growing in popularity over the last few years and are today one of the most requested items in a landscape plan.

"Water features are more popular than ever, from fountains to water walls to serene ponds," said Neave Landscaping. "The sound of water is soothing after a hectic day at work. It masks distracting sounds, like traffic in front of your house, or the neighbor kids' water balloon battles. It attracts birds and butterflies who love to sip and splash in the water."

New Options for Gardening

Edible container gardens including mini fruit bushes and earth tones are two prominent trends in gardening, according to Garden Design.

Neave Landscaping sees a trend in combining elements in the garden.

"Separating flowers from vegetables in your garden is so yesterday. The latest trend is blended gardens that incorporate edibles and ornamentals together," they said. "These double-duty gardens offer a bountiful harvest of fruit, vegetables and herbs while providing intriguing, energized beds. Tuck tomato plants in with your roses. Plant a drift of "Bright Lights" chard — as pretty as any blooming perennial. Mix asparagus or some raspberry bushes into your cutting garden. And chili peppers? They're hotter than ever. Before they end up in your salsa recipe, they're pretty little ornaments to spice up your garden."



Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/homeownersadvice1/item/33731-20150323-the-hottest-trends-in-outdoor-living

How to Avoid a Real Estate Scam

Hello everybody. I hope you all are everyone is having a great Saturday.

Since I have been a Realtor I have conducted my business with the utmost integrity and honesty, and I expect the same with those that I work with. I have reported other agents who were involved in shady and unscrupulous activities. Just like one bad cop can make all cops look bad, the same is true in real estate. One bad agent can make all of us honest and hard working Realtors look bad by diminishing our image and trust in the community.

How to Avoid a Real Estate Scam

Be alert for these warning signs of unscrupulous landlords, sellers and real estate agents.

You'd be foolish to think you couldn't be fooled in a real estate transaction. While the majority of sellers, buyers and renters are presumably honest, there can be additional players with skin in the game, from landlords and real estate agents to title agency workers and bankers.

As Sacramento real estate broker Alexis Moore observes: "The crooks don't always have on orange jump suits. Many are former real estate professionals who are using the system."

So how do you know if you're about to be scammed? You can't, but there are warning signs and steps you can take to protect yourself. Even if you are working with honest people, these are smart ways to approach buying, renting or selling any home.

Don't rush. Sometimes, you really do stumble into a great deal, and, yes, you want to act quickly before someone else stumbles on – and snags – this great deal. But rushing means you have little time to question what you're doing.

Joe Rand, managing partner for Better Homes and Gardens Rand Realty, which sells and rents home in New York and New Jersey, says that about once a week, he hears of a renter who saw a house but didn't actually go inside.

"The person will tell the renter that they've relocated, they need to rent [the property] quickly, here's a photo. Just go look at the place, but I can't show you the inside," Rand says. The renter will send the "landlord" deposit money and show up at one of his business's many offices, asking for the keys. Of course, that's when the renter learns he was working with a con artist who had simply taken a photo of an apartment and let the victim's imagination fill in the blanks.

It may seem crazy to rent property without touring the interior, but as Rand explains: "What does every scam depend on? Somebody thinking this is an amazing deal, and they have to jump on it."

Vet the person you're working with. Just because someone has a LinkedIn page doesn't make him or her a swell human being. For instance, earlier this month, at least 14 unsuspecting homebuyers in towns around Monroe County, New York, paid down payments to a real estate agent whose license had reportedly expired. The homeowners wrote him checks, but instead of putting their funds in escrow, the agent allegedly pocketed the money. At the time of this writing, the accused agent, John Valerio, is cooling his heels in the county clink.

But one can hardly blame the victims. Valerio, after all, apparently was, until very recently, a licensed real estate agent. He doesn’t have much of an online presence, but his LinkedIn profile states that his company, Lamplighter Realty Inc., has been in business since 1971. What’s more, his business is listed in the Yellow Pages.

This scenario may happen more than we’d like to believe. Moore says she recently reported an unlicensed colleague who was still selling homes. Your safest bet is likely to walk into a bustling, reputable real estate office to meet with a new agent, but if you meet an agent randomly who has little more than a business card and a charming demeanor, ask to see an agent’s license to ensure it's current, Moore suggests.

"We all carry a plastic card like a credit card in California, and it says the person's name and their title, like broker or sales agent," she adds.

If you're really concerned, check online to see if anything concerning pops up. To find someone you trust, ask for a referral from a close friend or family member.

Question, question, question. Charles Gallagher of Gallagher & Associates in St. Petersburg, Florida, says his law firm has represented several victims of real estate fraud. Some sellers, he says, will try to sell homes they know have problems – like sinkholes in the basement or toxic mold in the attic – but will try to pass them off as perfectly habitable.

"These sellers will lie on the property disclosure statement and represent that the home is free of defects," Gallagher says. "Oftentimes, the inspectors and Realtors are also complicit."

It's dispiriting, but that's why Gallagher says it's important to ask probing questions about the property, like: What type of insurance claims have you made on the house? Or simply: Why are you selling the home?

"When there isn't a very good reason for the sale, that can be a red flag," Gallagher says.

But maybe, you might think, a con artist would invent a great reason for the sale, and it’s true that a professional con artist likely would. According to Gallagher, most home sellers who are trying to scam you don't have a lot of practice, and they may tell the truth or stumble on their answers.

"You usually aren't dealing with homeowners who have been grifters their whole lives," Gallagher says.

Understand the details. You think you do. But be honest with yourself. Do you really know what you're getting into?

Plenty of real estate transactions are pretty straightforward, especially if you've done your homework, understand the type of mortgage you're getting and have a good real estate agent guiding you through the process. But the more complex a transaction is, or the more murky everything seems, the more you need to slow down and educate yourself or find trusted friends and associates who can help you understand what you're buying, selling or renting.

Deborah Porter, a marketer in Las Vegas, says she wishes she’d known more about a property she tried to lease to own when she moved to the city in 2003. Turns out, the person touting the deal didn't actually own the property. She ended up having to sue to get her $10,000 deposit back.

Since being duped, Porter says she has learned how to look up property information and find it through a title company, which can always tell you who legitimately owns real estate. She has also read up on her local real estate market.

"False ownership is an epidemic here in Las Vegas because so many owners are underwater and have either abandoned their property or it's gone back to an inattentive bank. Scammers renting and selling homes that they don't own is rampant," Porter says. "It's almost imperative that you ask to see proof of mortgage statement before turning over any money."

Listen to your gut. You think you will, but you might not, especially if you really, really love the property.

All of Gallagher’s clients who fell victim to scams end up saying some version of either, "I had a bad feeling about them but ignored it," or, "In hindsight, I should have known …"

Which is why Gallagher says: "If you think something seems shady, it probably is."

Becky Walzak, president of rjbWalzak Consulting, a risk management company in Deerfield Beach, Florida, seconds that advice.

Some loan officers and real estate agents occasionally encourage the homebuyer to lie to look better on a loan application. That may get you the house or rental, but it also means you’re now a co-scammer, which could get you in trouble with a lender later if your lie-to-loan scheme is uncovered.

"If you're uncomfortable with a transaction, you need to walk away," Walzak says.

This is especially true with rentals, according to Rand.

"The reason you see a lot of scams with rentals is that it's the only real estate transaction usually done without an attorney," he says.

But with houses, it's much less likely, Rand says. "Banks are going to make sure you don't buy something you don't actually own. In fact, they're checking you out to make sure you aren't scamming them," he says.

Source: US News & World Report, Geoff Williams

http://money.usnews.com/money/personal-finance/articles/2015/03/24/how-to-avoid-a-real-estate-scam?page=2

With Sunny, Modern Homes, Joseph Eichler Built The Suburbs In Style

Here in the Silicon Valley we have a few areas that have swaths of Eichler style homes like in the Ranch Rinconada area of Cupertino, Sunnyvale and Palo Alto. I've sold a few of them myself. Some people love them, other hate them. Anyhow, below is a great article from npr.org about Eichler homes.

With Sunny, Modern Homes, Joseph Eichler Built The Suburbs In Style

In Palm Springs, Calif., a $1 million home was just built — with plans resurrected from 1951. The original sold for about $15,000, and was called an Eichler, after developer Joseph Eichler, who offered well-designed, well-built tract homes to the masses a half-century ago.

Bernie Grossman and his wife, Lyla, bought their Eichler home in 1963. Bernie was starting a law practice, and a client told him about these new modern houses going up in Granada Hills, about 45 minutes from downtown Los Angeles. "He said way up here in this wasteland there's some crazy builders building a house ... I looked at them and, I dunno, they're kind of weird," Grossman recalls.

Single-story homes, with open spaces, floor-to-ceiling glass walls and clean, serene lines. Bernie fell in love. He paid $30,000, and raised three children in the house. In fact, Parents Magazine once said an Eichler was the best house in the U.S. for raising children.

"You had two wings completely — with toilet and everything so that each side is independent," Grossman explains. "You can separate the adults from the children without [their] killing each other."

The house has five small bedrooms, arranged in two separate wings around the living area and open air atrium (there's a tree growing up through the roof). Each wing has bathrooms (which has helped keep the peace between the Grossmans). It's a house designed for California living and sunshine.

There are 108 Eichler homes in this tract; it's called Balboa Highlands. And Lyla Grossman says Eichler not only built handsome, affordable modern homes for the masses; he wanted everyone, and anyone, to have them. "My greatest respect for all these homes is that he wanted integration," she says. "And that was very new in this area — completely new ... And that's why I loved it so much."

The Grossmans' neighbor, Adriene Biondo knew a couple — they've since died — who were the only African-American owners at first. She remembers that they told her: "We felt confident in moving here because we heard that the Eichlers' nondiscrimination policy meant that if we didn't like our neighbors, he would buy our house back."

Biondo, the author of Modern Tract Homes of Los Angeles, worked for 10 years to get "Historic District" status for Balboa Highlands. She says Eichler's philosophy, and the houses that his architects — A. Quincy Jones and partner Frederick Emmons — designed were magnets for certain kinds of buyers.

"It's not just the modern architecture," Biondo says. "It attracts people who love to live in a modern way."

Flowing spaces, no boxy little rooms, all the glass (the Grossmans' house survived three earthquakes without one cracked window wall). Early buyers were artists, a Disney animator, many elementary school teachers — "we even had one Republican," Bernie Grossman says.

Movie and ad-makers shoot in these California-modern Eichler houses all the time. A few years ago, Taco Bell used the Grossman's 2,500-square-foot home in a Super Bowl commercial.

Architecture historian and writer Alan Hess says after World War II, Eichler built some 11,000 single-family homes in California. Most of them are in the San Francisco Bay area. But some went South.

"Southern California was booming after World War II," Hess says. "Many soldiers and sailors had come through here on their way to the Pacific, and many of them came back to stay."

They left Kansas and Idaho and Illinois for jobs in aerospace, oil and entertainment. They wanted to start families, and buy homes with backyards, homes made with materials developed during the war and now available to everyone — like plywood, plastics, formica for the countertops and, of course, stainless steel for all the new appliances. The houses were modern, optimistic about the future — they were what these soldiers been fighting for.

During the war, Eichler's family had rented a Frank Lloyd Wright house outside of San Francisco. He loved its simple modern lines and spaces. He began building houses like that — and kept tabs on them. Not long after the Grossmans moved into their Balboa Highlands house, Eichler came to look at it.

"He was just like someone from the East who was in business," Lyla Grossman remembers. "He was not a California boy. He was not easy. He was a bit gruff."

But he built houses in the sun, which make residents like Adriene Biondo feel free and artistic. "The architecture really does inform the way you live," she says. You can tell the time of day by the light outside. "Suddenly you look in the living room and it's engulfed in a pinkish-orange glow and you realize: I've been working all day and it's sunset."

Biondo has been in her Balboa Highlands Eichler home for 20 years and says it's the best place she's ever lived. "It's not like living in a normal house at all," she says. "There's nothing conventional about it."

The creation of suburbs after World War II marched rows of ticky-tacky tract houses across America. The houses Joseph Eichler built rejected ticky tack — and offered stunning modern spaces on graceful curving streets to generations of families.



Source: npr.org, Susan Stamberg
http://www.npr.org/2015/03/16/392561864/with-sunny-modern-homes-joseph-eichler-built-the-suburbs-in-style

5 Reasons Not to Use a Friend as Your Real Estate Agent

I can't count the number of times since I have been in the business where a potential client told me that they had a friend, a brother, a sister, or coworker who is a Realtor and that the going to do business with them. I try to point out the pitfalls of using a friend or family member to buy or sell their home, but this article I think does an excellent job of explaining it.

5 Reasons Not to Use a Friend as Your Real Estate Agent

Does your friend the real estate agent really know your needs and wants?

As the spring house-hunting season approaches, many Americans will be buying or selling a home – and some will enlist the help of a friend or relative who happens to work in real estate. But experts caution that hiring a friend as your real estate agent could backfire.

“Realtors tend to be a social bunch,” says Jon Sterling, who manages a team of agents for Keller Williams Realty and specializes in working with real estate investors. “I can't say never hire a friend, but you shouldn't hire them because you’re a friend. You shouldn't do it as a favor – you should do it because they're good at what they do.”

In some cases, people find that it’s easier to hire a friend rather than invest time interviewing several agents. In fact, a 2014 survey of nearly 300 sellers from the Redfin Research Center found that over a third evaluated only one agent before choosing one to list their home.

Before you hire a friend as your agent, here’s a look at potential pitfalls to consider.

1. Your friend may not know the neighborhoods that you want. Whether you’re buying or selling a home, you need an agent with intimate knowledge of the market in that specific geographic area. “I always get calls from cousins saying ‘Oh, you live in Florida, I’m thinking about buying a property in West Palm Beach,’” says Karyn Glubis, a real estate agent based in Tampa, Florida. “They assume that you know everything, and even if you live in a certain city, there's several different areas of the city. I live in a certain ZIP code that I know with my eyes closed. If you ask me to go away from Tampa to [St. Petersburg], I don't know that area.”

According to Mia Simon, a Redfin real agent based in Silicon Valley, it’s important for buyers or sellers to instead look for "someone who really has the local knowledge, the relationships with the main players and a really good grasp of the inventory."

2. Your friend may think she knows what’s best for you. If you want a downtown loft and your friend pictures you in a suburban bungalow, it’s bound to create tension. Glubis ran into this issue when she helped her father shop for a three-bedroom townhome and he wanted a move-in ready property, while she showed him fixer-uppers. “He's like, ‘I am 68 years old. I don't want to fix up a house,’” she remembers. “People think they know what you deserve or what you want. A friend doesn't have the boundaries that a client would have.”

Glubis has her clients fill in a "needs and wants" list (for instance, “I want an oak tree in the backyard, but I’m not crazy about hilly lots”). However, she didn’t take that step for her father because she assumed she already understood his needs and wants.

Another potential pitfall is if you’re buying an investment property and your Realtor friend doesn’t educate you on the responsibilities of a landlord because she assumes you’ve already researched it.

3. Your friend may put in less time. A friend helping you house hunt may not want to spend every weekend driving you around instead of working with other clients. That would put the onus on you to search listings and do the legwork. “You’re on Zillow and Trulia doing all your own research,” Glubis says. “You're telling your friend what you need. The friend is more casual in their searching, making you do all the work.”

4. Your friend may not give you a reality check. You may not like hearing that the list price you want on your home is too high or your offer on a property is too low, but it’s your agent’s responsibility to give you the honest truth and serve as an objective outsider. “The competition [in Silicon Valley] is so fierce that you're having to waive all contingencies and go way above list price. Having to advise a friend to do that could jeopardize a friendship” says Simon, who has never represented friends but will refer them to another agent on her team.

Discussions about your housing budget or the amount you’re willing to accept for your home might be more comfortable with someone you see strictly as a professional, not as a neighbor or yoga buddy.

5. Disagreements could sour the friendship. “When things go bad it really gets ugly, so Thanksgiving dinner could get weird if you're in the middle of a really tough transaction with friends or family members, and the lines start to blur between your personal life and your professional life,” Sterling says. “I don't ever want to put my friendships at risk because of a business transaction.” Like Simon, he’ll refer friends in the market to other agents he trusts who could better fit their needs.

Another sore spot for real estate agents is when they handle a transaction for a friend and that friend asks for the commission back, which Glubis says can make things uncomfortable.

That said, there may be situations when a friend-real estate agent arrangement works out. “If the friend is experienced and treats you like a client, if they take their job seriously and know the market you're shopping in,” Glubis says, then it could be the right fit.



Source: U.S. News & World Report, Susan Johnston
http://money.usnews.com/money/personal-finance/articles/2015/03/17/5-reasons-not-to-use-a-friend-as-your-real-estate-agent

Plan to require fireplace retrofits at homes for sale heats up smoke debate

I'm all for a clean environment and clean breathable air, but I am not for adding a significant financial burden on the average home owner trying to sell their home. A real estate transaction is already complicated enough, and if the Bay Area Air Quality Management District gets their way, selling a home will will be even more complicated.


Plan to require fireplace retrofits at homes for sale heats up smoke debate

In a move that could burn a hole in the pocket of property owners looking to sell or rent their homes, Bay Area air quality officials are ratcheting up their campaign against smoke pollution with a proposal aimed at phasing out the old-fashioned fireplace.

Bay Area homes with wood-burning fireplaces could not be sold or rented unless they were equipped with cleaner devices, such as gas, under the first proposal of its kind in California. Retrofit costs could range from hundreds of dollars to $2,000 to $3,000 or more -- depending on the home and device installed.

Air officials also propose banning all wood-burning devices -- whether or not they're certified by the federal Environmental Protection Agency -- in new construction, effective Nov. 1. Currently, only open hearth fireplaces in new buildings are banned.

The move by the Bay Area Air Quality Management District has fueled a debate on how far government should go in limiting wood burning to reduce public exposure to smoke. It also serves as an acknowledgment that Spare the Air alerts designed to curb such activities are difficult to enforce.

The rule would add a financial burden to homeowners, but proponents say the ban is worth it to protect people.

Tyler Baldwin, a San Jose resident preparing to sell his home, said he would never use his fireplace on days when it is banned, but he resents the proposal.

"They are forcing steep costs on thousands of people who are not burning on Spare the Air days and who just want to sell their home," Baldwin said. "If I obey the law not to burn on certain days, it's none of their business what I use to burn in my home."

Air quality regulators and clean air advocates say the move protects people from tiny wood smoke particles that can lodge deep in human lungs and cause lung and heart diseases, asthma attacks and strokes.

"Removing polluting devices during point of sale is good public health policy," said Jenny Bard, a spokeswoman for the American Lung Association in California. "Just like we need to take polluting cars off the road, we need to prohibit polluting devices from being used."

The debate begins to unfold Wednesday as the nine-county air district holds the first of nine public workshops on proposals to reduce smoke in the Bay Area. The first is in Morgan Hill in Santa Clara County. The proposal will be fine-tuned after the workshops, reviewed by air district staff and then presented to the board at a later date. There is no timetable on a vote or adoption of the rules.

A 2007 rule outlawed burning wood on nights that the district predicts fine particle pollution concentrations will violate federal public health standards.

This new proposal goes much further.

It recommends that after Nov. 1, 2016, Bay Area homes and commercial buildings could not be sold if they contained old fireplaces, stoves or other wood-burning devices that failed to meet federal EPA emission standards.

A home seller could comply by replacing an open hearth fireplace with one fueled by clean natural gas or electricity, a closed-loop insert that is typically encased in glass, or an EPA-certified stove. A property seller also would have the option of making the old fireplace inoperable, for example by sealing it off with bricks, said Wayne Kino, the air district's director of enforcement.

"We thought of this as a doable way of trying to get our wood-burning emissions in the Bay Area ratcheted down over time," Kino said. "Our winter air quality has improved significantly, but we still have a regional problem with fine particulates."

The federal government continues to give the Bay Area a failing grade for meeting the public health standard for fine particulates.

The air district had six days of unhealthy particulates in the most recent Spare the Air season from Nov. 1 through Feb. 28, 15 in the 2013-14 season, and a lone bad air day in 2012-13.

Real estate industry representatives say the requirement would cost property owners too much for too small a benefit.

"This is a bad solution looking for a problem," said David Stark, public affairs director of the East Bay Association of Realtors, which is active in southern and eastern Alameda County. "Why don't they focus on the people burning illegally on no-burn days instead of imposing a financial burden on thousands of people?"

Air district officials say that while most people comply with the law, some don't, and it's impossible to catch all violators among the 1.4 million Bay Area homes with wood fire places and stoves.

District officials said they worry about the health of people in small valleys, where just one or two smoky fireplaces can foul air in a neighborhood.

"The air can be unhealthy in those localized areas even (though) high readings aren't picked up by our regional system of monitors," said Kristine Roselius, a district spokeswoman.

Last winter, the air district received 3,739 public complaints about wood burning, and issued 155 tickets to burn violators.

First-time violators are given a choice of paying a $100 fine or taking an online smoke-education class. Second-time offenders are fined $500.



Source: San Jose Mercury News, Dennis Cuff
http://www.mercurynews.com/business/ci_27765576/plan-require-fireplace-retrofits-at-homes-sale-heats

What Not to Do as a New Homeowner

Happy Hump Day everyone!

We know so well the thrill of owning your own house — but don’t let the excitement cause you to overlook the basics. We’ve gathered up a half dozen classic boo-boos new homeowners often commit — and give you some insight on why each is critically important to avoid.

1. Not Knowing Where the Main Water Shutoff Valve Is

Water from a burst or broken plumbing pipe can spew dozens of gallons into your home’s interior in a matter of minutes, soaking everything in sight — including drywall, flooring, and valuables. In fact, water damage is one of the most common of all household insurance claims.

Quick-twitch reaction is needed to stave off a major bummer. Before disaster hits, find your water shutoff valve, which will be located where a water main enters your house. Make sure everyone knows where it’s located and how to close the valve. A little penetrating oil on the valve stem makes sure it’ll work when you need it to.

2. Not Calling 811 Before Digging a Hole

Ah, spring! You’re so ready to dig into your new yard and plant bushes and build that fence. But don’t — not until you’ve dialed 811, the national dig-safely hotline. The hotline will contact all your local utilities who will then come to your property — often within a day — to mark the location of underground pipes, cables, and wires.

This free service keeps you safe and helps avoid costly repairs. In many states, calling 811 is the law, so you’ll also avoid fines.

3. Not Checking the Slope of Foundation Soil

The ground around your foundation should slope away from your house at least 6 inches over 10 feet. Why? To make sure that water from rain and melting snow doesn’t soak the soil around your foundation walls, building up pressure that can cause leaks and crack your foundation, leading to mega-expensive repairs.

This kind of water damage doesn’t happen overnight — it’s accumulative — so the sooner you get after it, the better (and smarter) you’ll be. While you’re at it, make sure downspouts extend at least 5 feet away from your house.

4. Not Knowing the Depth of Attic Insulation

This goes hand-in-hand with not knowing where your attic access is located, so let’s start there. Find the ceiling hatch, typically a square area framed with molding in a hallway or closet ceiling. Push the hatch cover straight up. Get a ladder and check out the depth of the insulation. If you can see the tops of joists, you definitely don’t have enough.

The recommended insulation for most attics is about R-38 or 10 to 14 inches deep, depending on the type of insulation you choose. BTW, is your hatch insulated, too? Use 4-inch-thick foam board glued to the top.

5. Carelessly Drilling into Walls

Hanging shelves, closet systems, and artwork means drilling into your walls — but do you know what’s back there? Hidden inside your walls are plumbing pipes, ductwork, wires, and cables.

You can check for some stuff with a stud sensor — a $25 battery-operated tool that detects changes in density to sniff out studs, cables, and ducts.

But stud sensors aren’t foolproof. Protect yourself by drilling only 1¼ inches deep max — enough to clear drywall and plaster but not deep enough to reach most wires and pipes.

Household wiring runs horizontally from outlet to outlet about 8 inches to 2 feet from the floor, so that’s a no-drill zone. Stay clear of vertical locations above and below wall switches — wiring runs along studs to reach switches.

6. Cutting Down a Tree

The risk isn’t worth it. Even small trees can fall awkwardly, damaging your house, property, or your neighbor’s property. In some locales, you have to obtain a permit first. Cutting down a tree is an art that’s best left to a professional tree service.

Plus, trees help preserve property values and provide shade that cuts energy bills. So think twice before going all Paul Bunyan.

Source: HouseLogic, John Riha

http://www.houselogic.com/home-advice/repair-tips/what-new-homeowners-need-to-know/#ixzz3UVD559Ti 

6 Things Everyone Should Do When Moving Into a New House

Good advice from HouseLogic website.

Moving into your first home is exciting! But it also means you’ve got work to do.

When I bought my first house, my timing couldn’t have been better: The house closing was two weeks before the lease was up on my apartment. That meant I could take my time packing and moving, and I could get to know the new place before moving in.

I recruited family and friends to help me move (in exchange for a beer-and-pizza picnic on the floor) and, as a bonus, I got to pick their brains about what first-time homeowners should know.

Their help was one of the best housewarming presents I could have gotten. And thanks to their expertise and a little Googling, here’s what I learned about what to do before moving in.

1. Change the locks. You really don’t know who else has keys to your home, so change the locks. That ensures you’re the only person who has access. Install new deadbolts yourself for as little as $10 per lock, or call a locksmith — if you supply the new locks, they typically charge about $20-$30 per lock for labor.

2. Check for plumbing leaks. Your home inspector should do this for you before closing, but it never hurts to double-check. I didn’t have any leaks to fix, but when checking my kitchen sink, I did discover the sink sprayer was broken. I replaced it for under $20.

Keep an eye out for dripping faucets and running toilets, and check your water heater for signs of a leak.

Here’s a neat trick: Check your water meter at the beginning and end of a two-hour window in which no water is being used in your house. If the reading is different, you have a leak.

3. Steam clean carpets. Do this before you move your furniture in, and your new home life will be off to a fresh start. You can pay a professional carpet cleaning service — you’ll pay about $50 per room; most services require a minimum of about $100 before they’ll come out — or you can rent a steam cleaner for about $30 per day and do the work yourself. I was able to save some money by borrowing a steam cleaner from a friend.

4. Wipe out your cabinets. Another no-brainer before you move in your dishes and bathroom supplies. Make sure to wipe inside and out, preferably with a non-toxic cleaner, and replace contact paper if necessary.

When I cleaned my kitchen cabinets, I found an unpleasant surprise: Mouse poop. Which leads me to my next tip …

5. Give critters the heave-ho. That includes mice, rats, bats, termites, roaches, and any other uninvited guests. There are any number of DIY ways to get rid of pests, but if you need to bring out the big guns, an initial visit from a pest removal service will run you $100-$300, followed by monthly or quarterly visits at about $50 each time.

For my mousy enemies, I strategically placed poison packets around the kitchen, and I haven’t found any carcasses or any more poop, so the droppings I found must have been old. I might owe a debt of gratitude to the snake that lives under my back deck, but I prefer not to think about him.

6. Introduce yourself to your circuit breaker box and main water valve. My first experience with electrical wiring was replacing a broken light fixture in a bathroom. After locating the breaker box, which is in my garage, I turned off the power to that bathroom so I wouldn’t electrocute myself.

It’s a good idea to figure out which fuses control what parts of your house and label them accordingly. This will take two people: One to stand in the room where the power is supposed to go off, the other to trip the fuses and yell, “Did that work? How about now?”

You’ll want to know how to turn off your main water valve if you have a plumbing emergency, if a hurricane or tornado is headed your way, or if you’re going out of town. Just locate the valve — it could be inside or outside your house — and turn the knob until it’s off. Test it by turning on any faucet in the house; no water should come out.




Source: HouseLogic, Courtney Craig
http://www.houselogic.com/blog/maintenance-repair/things-to-do-when-moving-into-a-new-house/

Tax Benefits of Homeownership

Great post from the Zillow blog, but I think he left out property taxes as something that is deductible on the homeowners income tax. Of course always check with your tax professional before taking advantage of any of these tax benefits.

Owning real estate can make tax season more complex, but many homeowners receive considerable benefits — especially if they sold a home or relocated for a job in the previous year. Here’s a look at three ways homeownership can pay off at tax time.

Mortgage interest

When you purchase a home, you will likely get a mortgage. Your monthly mortgage payment is made up of both principal (paying money to pay down the loan) and interest (what the lender charges for supplying the loan). As a way to incentivize homeownership, the federal government provides a tax benefit when it comes to the interest portion of your mortgage payment.

A homeowner can write off, dollar for dollar, the interest portion of their mortgage payment. Say, for example, a homeowner’s annual salary is $100,000. Their mortgage payment is $1,200 per month, and the interest portion of that payment is $1,000. At the end of the year, they have a $12,000 tax write-off. In essence, their taxable income is reduced to $88,000.

Capital gains

Homeowners also get a tax break when they sell their home. If you purchase your home for $200,000 and sell it for $400,000, you have a $200,000 gain — that’s income.

If you have an income by way of a job, a contract position or the sale of stock or mutual funds, you pay income tax on that gain. With homeownership, it’s different. If you are single and lived in the home for at least two of the past five years, you do not have to pay any income tax on that $200,000 gain — in fact, you don’t have to pay on gain up to $250,000. Married couples filing tax returns jointly and following the same owner occupancy guidelines are exempt up to $500,000. Where else can you generate income without paying taxes on it?

Tax credits for moving

If you purchase a home in one state and sell one in another, you should check with a CPA in both states. There may be benefits realized in one state but not the other, such as tax credits for moving expenses, if the move is a part of a job transfer. And, for the year you are between states, you will likely need to file a return in each state. It’s always smart to check with a CPA before a real estate transaction.



Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/tax-benefits-of-homeownership-171428/

How Credit History Affects Home Insurance Premiums

In this day and age, it is important to manage and guard your credit score like a hawk. Not only is it important for obtaining a home loan, it is important for getting lower insurance premiums as Shannon Ireland from the Zillow blog points out. However, this rule doesn't apply in California and a few other states that make the practice of using a consumer's credit score in determining an insurance premium illegal. 


How Credit History Affects Home Insurance Premiums

Saturday Stats

San Jose list price to sales price ratio:

Month	Sale Price to List Price Ratio	Days to Sell, Average
Mar-14	103.90%	31
Apr-14	104.30%	28
May-14	104.20%	24
Jun-14	103.60%	20
Jul-14	102.90%	25
Aug-14	101.90%	30
Sep-14	101.80%	30
Oct-14	101.30%	35
Nov-14	101.30%	34
Dec-14	101.30%	40
Jan-15	101.50%	44
Feb-15	103.60%	36

San Jose Sales Price Average Over Time:

Month	Sale Price, Average
Apr-14	$745,948
May-14	$746,482
Jun-14	$752,302
Jul-14	$725,727
Aug-14	$772,096
Sep-14	$723,087
Oct-14	$750,553
Nov-14	$734,795
Dec-14	$706,198
Jan-15	$707,182
Feb-15	$764,386
Mar-15	$808,276

Now might be a good time to sell people, but by the time some of you realize this, the market will already be heading down.

House Flipping: A Beginner's Guide For Success

Happy Saturday everyone!

Great article from RealtyTimes for you house flippers out there.

HOUSE FLIPPING: A BEGINNER'S GUIDE FOR SUCCESS

Flipping a house means buying a home with the intention of fixing it up and selling it within six months for a profit. Americans flipped 26,947 single-family homes in Q3 2014, accounting for 4 percent of all home sales in that period, according to real estate data firm Realtytrac. The average gross return for investors was $75,990 per home, up 2 percent from Q2.

Flipping houses can be profitable, particularly when home values are rising and interest rates remain at historically low levels. The Federal Housing Administration stopped enforcing anti-flipping regulations—which prohibited insuring any home for less than 90 days—in 2010. If you're looking to get into the home flipping business, follow these four guidelines for the best chance of success.

Build a Bankroll

Everything in life requires money, and house flipping is no exception. You could take out loans to buy properties, but then you are just creating debt in the hopes of making money. A smart house flipper who wants to profit immediately and often will use his or her own money.

The best way to build a bankroll is by saving over time. Consider selling your own home if the proceeds will pay off the mortgage and leave you with enough to get started. Those currently receiving regular payments from a structured settlement or annuity can consider selling their future payments to a company like J.G. Wentworth for a lump sum of cash now. Make sacrifices like selling off an extra vehicle, disconnecting cable television and giving up the $5 lattes in the morning to pad your bankroll further.

Buy at Discount

You'll make the most money if you buy a house for less than its actual value at the time of purchase. The best way to do this is by seeking out motivated sellers. These are people who need to sell quickly to relocate for a job or simply need to make fast money.

Use your social media networks to generate referrals. Inform friends and followers that you are looking to buy properties. Knocking on doors in prime neighborhoods can also generate leads—target homes with "for sale" signs and distressed properties that appear neglected.

Location, Location

The total value of all homes in the U.S. was $27.5 trillion at the end of 2014, according to data compiled by Zillow. That represents a 6.7 percent increase from 2013 and the third consecutive year of positive gains. But certain markets are doing even better.

Miami, Atlanta, Houston, Orlando and Las Vegas experienced the largest gains for 2014, with each up at least 11.5 percent on the year. These markets offer the largest margin for error for those flipping homes, particularly with a major housing market correction being predicted by several economists for 2015. This is mostly due to the Federal Reserve ceasing its quantitative easing program and no longer artificially inflating the markets.

A good rule of thumb when buying in areas that experienced low or negative year-over-year home value change (i.e., Indianapolis and Phoenix) is to only purchase homes at 10 percent or more below current market value.

DIY Where Possible

You'll likely need to hire plumbers, electricians and other contractors to tackle major home improvements. But the more you do yourself, the higher your profits will be. You and a few friends can install new sinks and countertops and even shingle a roof. Youtube has hundreds of instructional videos that cover everything from replacing water heaters to installing shower faucets. Creative landscaping can increase the value of a property by 13 percent, according to a study by Virginia Tech University. The DIY Network has several ideas for easy landscaping projects that anybody with a little ambition can complete.

House flipping is a cyclical endeavor that is only profitable when economic conditions are positive. Now is a great time to get started.

Source: RealtyTimes Staff

http://realtytimes.com/consumeradvice/buyersadvice1/item/33435-20150311-house-flipping-a-beginners-guide-for-success

RELATED STORIES:

5 Mistakes That Make House Flipping A Flop
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New Homes Need Inspections Also

NEW HOMES NEED INSPECTIONS ALSO

Question: We are looking to buy a new home from a builder. We like the neighborhood and the price has been reduced to make it very attractive. Additionally, the builder is throwing in a number of extras, including paying all of our closing costs.

However, we do not know this builder's reputation, and would like to have the home inspected before we go to closing. Is this possible?

Answer: In today's buyer's market, most anything is possible, and I think it's a very good idea. However, builders often reject such arrangements, for a number of reasons. Some builders claim that this will void their insurance policy and are afraid that someone will get hurt during the inspections. Other builders don't want their employees bothered by too many questions from the inspector, while other builders just say that "we will provide you with a house that has been approved by the county inspectors, so you do not have to worry."

But you are correct in worrying. According to Frank Lesh, former president of the American Society of Home Inspectors (ASHI), "even new homes have defects that only a professional can detect".

Keep in mind that in many counties, the government inspectors are busy and do not have time to carefully look at all aspects of the new home. Often, by the time the county inspector makes a site visit, your builder may already have put up the drywall, thereby covering up the electrical and the plumbing.

I have been involved in a number of new home warranty issues, many of which could have been avoided had the buyer been given the right to inspect the new home as it was being built. In one case, the new homeowner kept hearing pipes knocking every time the upstairs bathroom sink was turned on. The homeowner forced the developer to open up the walls -- at the developer's expense -- and found that some of the plumbing pipes were not properly affixed to the wall. The building inspector that the homeowner retained -- after the house had been completed -- determined that this was what he called "water hammer".

Indeed, in this case, the builder acknowledged that had there been a periodic inspection, the problem would have been detected earlier, at a significant cost savings to the builder.

ASHI recommends a three-pronged inspection: prior to the pouring of the foundation, prior to insulation and drywall, and finally prior to the final walk-through.

You should tell the builder that you want the right to have an inspector of your choice -- and at your expense -- to conduct these three inspections. The sales contract you sign should spell out this right in clear terms.

There are many components involved in a new home -- such as the roof, the foundation, the electrical and plumbing and the heating and air conditioning systems. I recently heard of a situation where a homeowner complained that the new house was not being adequately cooled, and when a professional inspected the system, he discovered that the builder had made a mistake. The system that was designed for a smaller house was accidentally installed in the house that was inspected.

Once again, the developer had to spend a lot of money correcting the situation -- money which could have been saved had there been periodic inspections.

It often amazes me that when consumers buy a new car, they inspect it carefully, even to the point of kicking the tires. But when they buy a new house, they are more concerned about how many bedrooms there will be, and what size television will they be able to put in the family room.

To my knowledge, there are two major home inspection organizations: ASHI and the National Association of Home Inspectors.

If you do not have the name of a competent inspector, you can find one by going to either of these organization's website.

When you contact a home inspector, inquire of his/her qualifications and background and check him/her out on the Web and at the Better Business Bureau.

If you decide to hire an inspector, get a copy of the inspector's contract before you formally commit yourself. Read it carefully, and make sure that the inspector will be doing the job you want.

There is one controversial provision in most home inspector's contract, called "an exculpatory clause". This states that should the inspector make a mistake and negligently fail to pick up problem areas in the house, your only remedy is to get full refund of the contract price. This clause has been upheld in the State of Maryland. However, the District of Columbia Court of Appeals held that these exculpatory clauses will not be enforced "when a party to the contract attempts to avoid liability for intentional conduct of harm caused by ‘reckless, wanton or gross behavior." (Carlton v Home Tech, decided June 15, 2006). This was a modest fix but unless you can prove that the inspector was engaged in such behavior, the exculpatory clause will be enforced. State laws differ on this issue.

While not every home inspector will agree to delete this clause, it certainly is worth trying.

Purchasing a new home creates significant anxiety among many potential homebuyers. Why not get an inspector to be on your side to relieve you of at least one aspect -- namely is the house built properly or will we have problems after we go to settlement?



Source: RealtyTimes, Benny L. Kass
http://realtytimes.com/consumeradvice/buyersadvice1/item/33253-20150304-new-homes-need-inspections-also

Is a home warranty worth it?

When I am representing the buyer on a transaction, I always make sure a home warranty is ordered. The last thing I think any new homeowner wants is to get moved in and comfortable in their new house and have a hot water heater or washing machine to go out on them. A home warranty will help protect many of the appliances in the home from failure for usually up to 1 year.

IS A HOME WARRANTY WORTH IT?

You have found your perfect home, and you are putting an offer in, but should you get a home warranty? A home warranty protects you against things breaking in your home and the costly repairs that come along with it.

Home warranties may cover different things depending on the company and the policy. Most cover appliances, HVAC, hot water heaters, ductwork, some plumbing, and electrical systems. You can get more, or less coverage. It is important to know exactly what you are getting.

Is the home you are buying new or old? Most new homes come with a builder’s warranty, so an additional warranty would be unnecessary. If it is not a new home, decide if paying a small fee for a repair would be more beneficial for you than paying for the repair yourself, or replacement if needed.

Who pays for it? Home warranties can range from $250 to $400; so who pays for it? It depends on what you, your agent, and the seller’s decide. You can ask for it to be paid for by the seller, or you can pay for it at closing. A home warranty is paid for 6 months to a year in advance, depending on the policy.

How does it work? It is important to verify specific details with your home warranty company, but generally you call them when something breaks, they set up your appointment, the repairman comes out and determines if it is covered; if it is covered, it will be repaired and you will pay them a small fee. There are many reasons why a claim could be denied, including regular maintenance not being done. You will want to clarify with the home warranty company so that you are prepared.


Source: RealtyTimes, Helen Chong
http://haylengroup.realtytimes.com/advicefromagents1/item/33405-is-a-home-warranty-worth-it



Old Republic Home Warranty

My New Listing Coming Soon near Santana Row

Hello everyone and happy Wednesday! I have a great new listing in San Jose not far from Santana Row in San Jose. It will be on the MLS in the next 2 weeks and on open house shortly thereafter. If you or someone you know is interested in buying this or another property, please feel free give me a call.

Beautiful, well maintained top floor, private penthouse unit in gated Villa Cortina complex. Featuring to 2 bedrooms, 2 full baths, laminate flooring, carpet, paint, granite counter tops, indoor laundry, central heating & A/C, double pane windows & stainless steel appliances. Complex offers pool, spa, gym, playground, secure parking garage under the building. Located close, schools, parks, 880 & 280 freeways, Valley Fair and Santana Row.

Property Features:

• 2 Bedrooms
• 2 Full Bathrooms
• 986 Sq. Ft.
• Top Floor Unit
• Double Pane Windows
• Granite Counter Tops
• Laminate Flooring
• Stainless Steel Appliances
• Central Heating & A/C
• In Unit Washer & Dryer
• Newer Carpeting

Offered at: $539,888

Not on MLS Yet! Please call me @ 408-569-3808 for questions or to schedule a private showing.

Realtor® GRI, CIPS, SRES, CDPE, HAFA, REO, CCRM,  CalBRE #: 01775814

Century 21 M&M and Associates

10420 S. DeAnza Blvd.

Cupertino, CA. 95014 

Cell: (408) 569-3808

mimi@mimihomes.com www.mimihomes.com 

2015 & 2014 President Women’s Council of Realtors 

Santa Clara Valley Network

Fluent in English, Mandarin, Cantonese and Vietnamese