|
|
|
|
|
|
|
| Charity Alliance Realty Monthly |
|
 |
Box Canyon Land 35K SF of land located in Ventura County on Box Canyon. Rustic feel. Zoned for horses. Only $275,000 http://www.charityar.com |
 |
Affordable Northridge Condo. This beautiful Northridge condo is only $389,000! Near CSUN, shopping & Freeways. http://www.charityar.com/ |
Articles and Advice |
|
 |
|
| About Charity Alliance Realty Full Service Real Estate Brokers By Ray Calnan - Founder At Charity Alliance Realty, we pride ourselves on giving each client our full attention and expertise to achieve the best purchase/sale price. Through the use of technology, creative negotiating, and a superb referral network throughout the Southern California area, we have the power to help bring buyers and sellers together. Charity Alliance Realty is a Full Service Real Estate brokerage that donates 10% of each commission to Charitable Organizations. Donations are made in honor of our clients (your friends and neighbors). Charity Alliance Realty is able to make these donations because we keep marketing costs down and rely on you to tell your friends and family about the service we provide to both home buyers/sellers and charitable organizations. All legally recognized non-profit organizations are eligible to receive a donation. Visit our website for more information. |
|
| Going solar: Is it right for your home? By Michelle D. Alderson Just a short time ago, saving the planet took precedence over saving a dollar. Times have changed, but in today’s economy homeowners are still trying to find ways to do both. Just ask John Shipman, an energy analyst at Energy Efficiency Management (http://www.energyefficiencypro.com/) and a green home performance contractor with Energy Star (http://www.energystar.gov). Shipman states that his company’s "whole-house energy audits have increased three folds" since President Obama has taken office. The President’s stimulus package has made energy conservation a priority with initiatives that focus on energy-efficiency upgrades to homes and businesses. One of the most hyped government energy-conservation initiatives is the use of solar energy. In fact, the stimulus package was signed after the President visited the Denver Museum of Nature & Science, which boasts 465 solar panels on its rooftop. The federal government’s stimulus package helps with the cost to install solar panels on existing homes, with the hope that this cost savings will help stimulate energy conservation and boost employment in the industry. With the new stimulus package, homeowners will receive a federal tax credit of 30 percent off the total cost of installing solar panels on their homes. According to the Energy Star Web site, the tax credit is also good for geothermal heat pumps, solar water heaters, small wind energy systems, and fuel cells. This federal tax credit is in addition to any tax credits or discounts a homeowner might receive from the state. Each state has its own rebate programs, including California. If a homeowner in California wants to install solar panels, a good place to start is by checking out the website created by the California's Public Utilities Commission and Energy Commission. The California Solar Initiative Web site (http://www.gosolarcalifornia.org) "provides consumers a 'one-stop shop' for information on rebates, tax credits, and incentives for solar energy systems in California." In a nutshell, existing homeowners that choose to install solar panels would receive an up-front rebate from the state government. The rebate would be "based on expected performance, and calculated by equipment ratings and installation factors (geographic location, tilt and shading)." What does that mean to the average homeowner? If you live in the Pacific Gas and Electric Co. (http://www.pge.com/myhome/saveenergymoney/solarenergy/) area, for example, the state rebate would be $1.55 per watt for existing homeowners (you can check out your local electric company’s Web site for their cost savings). According to Vote Solar (http://www.votesolar.org), a non-profit initiative, "a typical home solar system generates about 3 kilowatts of power." The installation cost in California averages roughly $8.10 per watt. The state rebate is currently $1.55 per watt for homeowners in Pacific Gas and Electric Co. territory. Therefore, the average state rebate is worth $4,650, in addition to the 30 percent cost savings from the federal government. That means the original estimated cost would be around $24,000, but after the rebates a homeowner could pay under $14,000. Shipman thinks homeowners need to go one step further before going solar. "Solar is a fantastic renewable energy and there are a lot of advantages to it, however you need to do the basics before you put solar panels on a house. It’s like cooking the turkey with the oven half open." What he and others in the industry believe is the first step to energy conservation in existing homes is to consider the "whole house approach." For instance, installing energy-efficient windows is just one of the many ways a house can conserve energy before going solar. The effort to save money and the planet by a well-intentioned and discounted solar installation can be thwarted by old windows that leak heat and cool air. If any homeowner is thinking about installing solar panels or doing any type of energy-efficiency upgrades, it is important to do the homework. There are several companies, both profit and non-profit that can do a home evaluation, as well as Web sites that discuss solar installation. For more information, visit the CALIFORNIA ASSOCIATION OF REALTORS® Green Web Site (http://green.car.org/). |
|
| Inherit home, refi immediately? By Benny Kass DEAR BENNY: My husband and I inherited a home from my husband's uncle who passed away a few weeks ago. Will the lender expect us to refinance the home or can we just assume it even if it is a conventional loan? –Karen DEAR KAREN: Unless the existing loan was from a private person, it is most likely covered under the Garn-St. Germain Depository Institutions Act of 1982. This federal law puts restrictions on the ability of a lender to exercise the "due on sale" clause that exists in most mortgages (also called deeds of trust). One of these restrictions reads as follows: "With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon ... (5) a transfer to a relative resulting from the death of a borrower. ..." Accordingly, you should advise the lender of the death, and just continue paying under the terms and conditions of the old mortgage. However, do you know what the interest rate is on that property? Rates are currently very low, and if you can get a better rate -- and assuming that you and your husband can qualify for a new loan -- you should consider refinancing. DEAR BENNY: My father co-signed on my mortgage approximately 12 years ago. We are both listed on the title/loan papers, although I have been the only one actually paying the mortgage all this time. If one of us died would the property automatically go to the other party or do we need to make further arrangements for that to happen and stay out of the probate process? Any help that you could give me would be greatly appreciated. –Kimberly DEAR KIMBERLY: The answer depends on how title is held. This answer must be general in nature, because different states have different procedures. If you were married, you and your spouse would generally hold title as tenants by the entireties; on the death of one, the survivor would own the entire house. But clearly you are not married to your father. Thus, you can hold title as joint tenants with rights of survivorship -- which means that on the death of one joint owner, the survivor owns the entire property, and probate regarding the house is not necessary. However, if you and your dad hold title as tenants in common, on the death of one owner, his/her share of the property will have to go through probate. On the death of one tenant in common, his/her share is distributed according to the last will and testament, or if there is no such will, then according to the laws of intestacy in your state. But probate is required for this type of title. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
|
| Dos and don'ts of home selling By Dian Hymer An energetic real estate agent can have your home on the market in a day. However, to provide the kind of marketing exposure you need to sell in today's market takes a little longer, unless your home is photo-ready when you list. Ideally, you should start planning for your home sale months before you want your home to be on the market. First, find an agent to represent you. Then, create a game plan together for the premarketing phase of the process. Use your agent as a resource. Walk through your home with your agent to get feedback on work, decluttering, and rearranging that needs to be done before the house is photographed for advertising and shown to prospective buyers. If your agent doesn't have a good eye for design, ask for a recommendation of a staging decorator. HOUSE HUNTING TIP: Preferably, your home should not be submitted to the multiple listing service (MLS) or home-sale Internet sites without photos. Studies have shown that many buyers don't consider a listing that doesn't have photos. Some sellers have presale inspections done to find out if repairs should be made before the property goes on the market. This wasn't as important several years ago when buyers were enthusiastic about the prospect of making money in the residential real estate market. Now buyers are much more cautious, and property condition is a critical variable. One seller did a beautiful job fixing up her house for sale. She ordered a termite report and had some of the work done. But she didn't hire a home inspector to inspect the house. The interior was top-notch. In fact, more money was spent on this than was necessary. The listing agent was hired after the work had been done so the seller didn't benefit from the agent's advice about how much to spend and on what. The house sold with multiple offers. However, the buyer's home inspection report revealed that the house needed a new foundation. Fortunately, there was a backup buyer. But, the price was negotiated down significantly. In hindsight, it would have been better to have fixed the foundation and done a less expensive redo of the interior. A couple sold a similar home. They worked with their agent for months before the house was marketed. They did presale inspections and got estimates for painting, staging, furnace replacement, making necessary structural modifications and fixing miscellaneous defects referenced in the termite report. Then, they prioritized, with input from their agent, and had the most critical repairs and enhancements done before the listing hit the MLS. There was no renegotiation necessary with the buyers after they completed their inspections. Make sure buyers receive copies of proposals and paid invoices for work you did to your home so they know which items in your presale inspection reports have been repaired. Another couple, who plan to move in a few years, decided to get their home ready to sell now. They put in a new master bathroom, refinished floors and plan to replace a dry-rotted deck. They will enjoy the improvements for the remaining years they stay in the house. Most sellers wait until the last minute to get their house ready for sale. It can be very stressful trying to get all the work done in a short time frame. Doing work gradually over time is a saner approach. Sadly, most homes never look as good as they do when they're sold. THE CLOSING: Now is a good time to have work done. A lot of contractors are looking for work. You might receive more competitive bids and be able to have the work done when you want. Dian Hymer is a nationally syndicated real estate columnist |
|
| Are home warranties a good deal? By Dian Hymer When something malfunctions in your home, wouldn't it be wonderful if you could pick up the phone, request a service call, pay a nominal service charge and have the problem fixed? In theory, this is how a home protection plan works. A home protection plan--also called a home warranty-is an insurance policy that insures homeowners against defects in the major systems of their home. Precisely what is covered will vary from one company to the next. Most policies cover the heating, plumbing and electrical systems as well as built-in appliances like the stove, dishwasher and garbage disposal. Some companies will cover movable appliances like the refrigerator, washer and dryer for an extra charge. And some policies even include roof coverage-if you pay an additional fee. Policy terms are usually for one year and they are renewable. The annual cost of a policy varies but you might expect to pay about $250 for a moderate-size home. Protection plans are available for both single-family residences and condominiums. The plans are offered in most states. Home protection plans are popular in the home sale industry because they provide a relatively inexpensive way to take care of home defects that develop soon after the home sale closes. For example, let's say the water heater quits working the day after closing. Depending on the terms of the purchase agreement, the seller may be responsible for replacing the water heater. A new hot water heater can cost several hundred dollars. However, if there is a home protection plan in place at closing, the hot water heater will probably be replaced for the nominal cost of a service charge. Home warranty service charges vary but they are often in the range of $30-35 per call. Some sellers offer to pay for a home protection plan to cover the home for the buyer for one year. If problems arise during that year, the buyers simply call the warranty company and pay the service charge. The warranty company pays for the repair or replacement. FIRST-TIME TIP: Be sure to read the policy carefully because there are exclusions from coverage. For example, pre-existing conditions are not usually covered. So if the furnace hasn't worked properly for years, it probably won't be covered by the buyer's home protection plan. Also, there are limitations on coverage. For instance, some policies offer roof coverage, but only up to $1,000 of work. Seller coverage is also available to cover the home during the listing and sale period. Seller coverage works the same as buyer coverage except that there are usually more limitations on the coverage. For example, the furnace is usually covered under both buyer and seller coverage. But, the amount of coverage offered under seller coverage is often less than the amount that's available to the buyer if the furnace breaks down after closing. One seller who had signed up for seller coverage was able to have some of the defects that were discovered during the buyer's inspections fixed by the home protection plan company for the cost of a service charge. This was a great deal for the seller because it saved him money and he didn't have to pay the policy premium until closing. Seller coverage is usually charged by the day. The cost varies, but it can run about 75 to 85 cents a day. THE CLOSING: If the seller of a home you're buying does not offer to pay for a home protection plan, you can pay for one. Be sure to order it before the closing date. Dian Hymer is a nationally syndicated real estate columnist. |
| Appraisals killing deals in many markets By Dian Hymer Finding the right house to buy is never easy; selling a home today is also challenge. It's best to prepare yourself for obstacles that could cross your path so that you're prepared should they arise. In some markets, one in three transactions doesn't close. This is a high ratio compared to the fallout ratio in previous years when the housing market was stronger and financing options were plentiful. In past years, most transactions fell apart over inspection issues. The biggest hitch today is financing, which is not to say that property defects don't come into play. For some time, lenders have tightened up on their qualifying criteria, making it more difficult for buyers to obtain the financing they need to close a sale. Recently, appraisals have become problematic, particularly in low-inventory, higher-priced neighborhoods. There are three components to lender approval. The borrower must be financially qualified. This requires a good credit score, sufficient cash for a down payment and closing costs, as well as verifiable income. The lender also needs to approve a title report on the property to confirm that the seller has marketable title to the property. And, the lender needs an appraisal of the property to confirm that the buyer is not overpaying. Previously, lenders' underwriters required three comparable sales in the area that occurred within the last six months to validate the purchase price. Due to the soft housing market, lenders now want to see comparable sales information on listings that sold and closed within the last three months. The listing inventory in some areas was very low from December 2008 through March 2009, making it difficult for appraisers to come up with enough comparable sales information to satisfy the lenders. To complicate matters, some appraisers and lenders automatically lower the appraised value by a certain amount if the property is in an area that is deemed as a declining market. This can result in an appraised value that is lower than the price the buyer and seller agreed to in the purchase contract. HOUSE HUNTING TIP: The most accurate appraisals are done by appraisers who know the local market well. Unfortunately, changes in the lender's practices are resulting in more appraisals done by appraisers from outside the local area. Many lenders no longer have their own, in-house appraisers; many are relying on large nationwide appraisal services to provide appraisal services. Let's say a listing sold for $1 million, but appraised for only $950,000. One way to resolve the problem is for the buyers and sellers to split the difference. In this case, the sellers lower their price by $25,000 and the buyers put an additional $25,000 cash down. For the cash-strapped, this is not an option. In this case, the sellers would have to lower the price by $50,000 to keep the deal together. Some sellers might be willing to carry a second mortgage as long as it doesn't exceed the lender's loan-to-value (LTV) limit and the loan isn't due for at least five years. THE CLOSING: Check with your lender before attempting to negotiate a seller carry-back; some lenders won't allow it. Dian Hymer is a nationally syndicated real estate columnist and author. |
| Don't tap that HELOC By Benny Kass DEAR BENNY: We have a HELOC (home equity line of credit) at a current interest rate of 4.75 percent. We have not drawn on the account. We are 20 years into a 30-year home mortgage with a fixed rate of 8.75 percent and owe about $32,000. Our home is listed on the appraisal rolls at $306,000. We would like to draw on our HELOC to pay off our first mortgage. We understand that the 4.75 percent is not a fixed rate and will be adjusted monthly depending on the prime rate. We also understand that we must pay interest on it monthly and in nine years will have to begin repaying principal. There are no prepayment penalties. It sounds too good to be true that we could pay off our 8.75 percent mortgage loan with a HELOC at a current rate of 4.75 percent. Are we missing something? –Barbara DEAR BARBARA: You raise an interesting issue, one with a number of caveats. As you have indicated, your HELOC has a floating and not a fixed interest rate. Most of these loans have rates that actually change on a daily basis. There is no guarantee what the rate of interest will be one year, two years or eight years from now. I vividly remember back in the early 1980s when interest rates were hovering close to 20 percent. You run a serious risk that one day in the future you may have to start paying more than 8.75 percent interest. A second issue to consider relates to the tax deductions that you get from your mortgage interest payments. While this should not be a major deterrent in your thinking, you do have to recognize that you will get fewer deductions under your plan. Another issue involves the terms and conditions of your HELOC. Unless you plan to pay off the entire first trust (mortgage) immediately, you run the risk that your lender may put restrictions on your HELOC in the future. I have a number of clients who have just received letters from their HELOC lender that their account has been frozen (or else the amount they can borrow has been reduced) based on the lower appraisal of their property. Yet another concern is the fact that I believe that a HELOC should be used for that "rainy day." It's nice to have a checkbook in your desk drawer that you can use, if you suddenly are in need of additional cash. If you use your HELOC to pay down your mortgage, what will you do if you are suddenly confronted with that "rainy day"? You have a very high-interest first mortgage. Currently, interest rates are very low -- in fact, almost at an all-time low. Instead of paying off the mortgage using your HELOC, why not consider refinancing and keep the HELOC as is? (The HELOC lender must agree to allow you to subordinate that loan to the new first, but usually that is not a problem.) You have considerable equity in your house, and assuming that you have good credit, you should not have too much trouble refinancing, even in today's tight money market. DEAR BENNY: I own the second floor of a duplex condominium. I pay 60 percent of the common expenses because my unit is bigger, while the owner of the first-floor unit pays 40 percent. Our building needs a new roof because shingles are blowing off, the remaining shingles are flaking and curling, and I had a leak in my unit. I have gotten three estimates on reroofing (putting shingles over the existing shingles). The owner below me does not feel the building needs a new roof. She insists on seeing damage to my unit before she will agree to a new roof. The previous leak has dried up, and there is no present evidence that there ever was a leak. Do I have to have damage to my unit before she has to agree to a new roof? How can I go about getting a new roof? --Carolyn DEAR CAROLYN: The first thing that anyone who has a problem in a condominium must do is to review the legal documents, which are typically the bylaws and declaration. What do the bylaws say about repairs? Are there any provisions for resolving disputes between the two of you? I assume that you did not take pictures of the damage before it dried up. I would have the contractors that gave you estimates meet with the owner and explain the situation. I recognize that your co-owner will consider this just a "marketing" spiel from the contractors, but hopefully they can convince her to approve the repair work. You may also want to get your insurance companies involved. I suspect that if you currently know that the roof is leaking and take no immediate action, any future damage claims may be rejected by those companies. This fact should be made known to your co-owner. You should put her on notice that if there is another leak, and if it is not covered by insurance, you will try to hold her personally responsible for your loss. Finally, as a last resort, unless there is a dispute resolution program in your area, you may have to go to court and seek a declaratory judgment, whereby the court -- if satisfied that there really is a problem -- will order the condominium to make the repairs. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
| Hot Links |
| What is an EcoBroker? http://www.ecobroker.com Valley Interfaith Council http://www.vic-la.org/ Why Use an ePro? http://www.epronar.com/whyuseepro.htm |
|
| Your Newsletter is Powered by: |
 |
|
 |
