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| Norman's Real Estate Update |
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Concord Townhome 2BR townhome in Great Concord Location. Only $1300/mo. http://www.postlets.com/rts/2367384 |
Articles and Advice |
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| Make your short sale shine By Dian Hymer Short sales, where the lender agrees to take less than amount due to them, have tended to sell for less than similar homes in the area. One reason for this is that short-sale listings usually don't look as good as the competition. Another reason is that short sales require lender approval. Last year, lenders often took three to six months to respond to a short-sale offer. If the response was no, the buyer was out looking for another home after having wasted a lot of time. Many buyers who expected short sales to be good deals shied away from them altogether after having a few bad experiences. Subsequently, the Obama administration put pressure on lenders to do more short sales and fewer foreclosures. Now a process that was laborious is much easier to navigate. Before you put your house on the market, contact your lender or lenders to let them know you can no longer afford to keep the house and you will be selling it. Also tell your lender that due to the decline in property values in your area, you may not be able to sell for enough to pay off the mortgage. HOUSE HUNTING TIP: Lenders usually won't work on a short sale until there is an accepted offer on the property. But doing a little ground work with your lender(s) can assist the process. Find out how long it will take them to process a short sale. This kind of information will be important to a prospective buyer. If buyers know they can expect a response from the lender in 30 to 45 days and not four to six months, they'll be more inclined to make an offer. Try to work out a loan modification with your lender before you put your house on the market. If your lender agrees to lower the loan amount, your listing will be more attractive to buyers because the lender won't have to take as large a shortfall in order to approve the sale. Most lenders won't allow credits from seller to buyer in a short-sale transaction. It's a good idea to have presale inspections done before you put your house on the market. The more information a buyer has about the property before an offer is made the better the chance that you won't end up in a situation where the buyer discovers defects that weren't previously disclosed and wants credits as compensation. In most cases, it's worthwhile to make your house look as good as possible before putting it on the market. This will bring you a higher price, which reduces the amount you are short. This will make it easier for the lender to approve the sale. You'll need broad marketing exposure to attract a wide range of buyers. It's important to hire an agent who is willing to put the time and effort in both marketing your property and dealing with your lenders. Your agent should be a good communicator who will keep all of the parties informed about the status of the sale. It's important to consult with your attorney and accountant to review any documents that the lender requires before closing the transaction. Some lenders will require the seller to pay back the amount that the seller is short. A seller does not need to agree, but this could cause the transaction to fall apart. You could owe tax on the amount of money the lender forgave, though the Internal Revenue Service does offer tax relief for those who lose their homes through foreclosure or short sales between 2007 and 2012. It takes a lot of patience with him and perseverance to get through a short-sale transaction. However, a short sale might negatively impact your credit for two to three years; it would be five to seven years if you let the property go to foreclosure. THE CLOSING: If possible, try to negotiate with the lender to salvage your good credit. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist. |
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| Multiple home inspections pay off By Dian Hymer Buyers often assume that if a house is new there's no need to inspect it. What could possibly be wrong with a brand-new house? You'd be surprised. Following the 1991 firestorm that destroyed thousands of homes in the hills above Oakland, Calif., contractors from around the country moved into the area to take advantage of rebuilding opportunities. The planning department was overwhelmed. Inspectors rushed from one job to another. Problems that showed up mere years after these new homes were completed were often due to faulty installation of windows and doors, improperly flashed decks over finished living areas, and lack of proper ventilation. One elderly homeowner rebuilt her home in Oakland's Upper Rockridge neighborhood after the fire. The house looked great, better than it had looked before the fire. However, it wasn't built as well. When the owner decided to move to a retirement facility, she sold the house. To her surprise, the termite report revealed that the one-story front stair system was severely damaged by wood pests and needed to be replaced at a cost of more than $20,000. The waterproof membrane had not been installed properly; there was no flashing and no ventilation. Water penetrated the stair system. The area under the stairs couldn't dry out. The damp wood frame provided an ideal environment for wood pests to do their damage. Several years after rebuilding, another homeowner discovered that the doors, windows, and terraces hadn't been properly installed. The house exterior, windows, exterior doors, and terrace had to be rebuilt. The homeowner successfully sued the contractor, but it was a time-consuming hassle, and necessitated moving out of the house during the rebuilding process. Many real estate agents provide forms for their clients to read and sign. These include strongly worded advisories to inspect the property thoroughly. Many inspection reports specify what is and is not included n the inspection. For example, wood-destroying pest (also known as "termite") reports usually don't cover mold. Home inspectors often don't inspect spas, irrigation systems or security systems. And they usually don't check the permit record. HOUSE HUNTING TIP: Most buyers don't read reports and contract documents carefully. It is important to do so. This means: Read over every word, including disclaimers. If an inspector or your agent recommends a further inspection, follow through and hire the appropriate professional to check out the system. Check directly with the local planning or zoning department for answers to pertinent questions that might affect your decision to buy a property. A further inspection could yield good news, as home inspectors tend to err on the side of caution to limit their liability. For example, one home inspector who inspected a home in the Oakland Hills reported that the older roof needed to be replaced and recommended consulting a licensed roofing contractor. The roofer said the roof needed repairs but didn't need replacing. In another instance, the buyers' inspector reported that the furnace needed repair to keep hot air from escaping into an area that didn't need heat. The seller recently paid a heating contractor to make repairs to the furnace. The work was still under warranty. There was no repair cost incurred by either the buyers or sellers. Failing to complete a further inspection can have serious consequences. You could have a difficult time getting financial help from the sellers after closing if a further inspection was recommended and you did not have it done. Some buyers don't want to pay the cost of a further inspection, especially if the cost is high. In some cases, the sellers might be willing to share the expense of a further inspection with you. THE CLOSING: Weigh the cost of the further inspection against the possible cost to repair the defect. The cost may be minimal seen in that context. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
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| Tips for avoiding surprise defects By Dian Hymer A homebuyer in the hills above Oakland, Calif., recently closed on a home that matched her wish list almost perfectly, which is as good as it gets. Before closing, the new home was inspected and no major defects were discovered. The buyer had plans for upgrading, starting with removing all the wall-to-wall carpets. But when the carpets were pulled up, the house began to smell of cat urine. The new owner called her agent, who recommended several people who have experience eradicating pet odor. Within a week, the odor was gone; the buyer was happy and continued renovating her new home. Another homebuyer was not so lucky. She also bought a house where cats had urinated in virtually every room. The sheetrock and flooring had to be replaced. The remediation cost was in excess of $250,000. She hired a lawyer, went to arbitration, and won. As hard as you try to discover all defects before buying, it's impossible to know everything even if the seller is honest and the house is thoroughly inspected. This doesn't just apply to older homes. New homes sometimes have construction defects that aren't readily apparent. What should you do to keep yourself from ending up in a situation like the two described above? HOUSE HUNTING TIP: Make sure that you are involved in the inspection phase of your purchase. This includes attending inspections and asking the inspector questions. If you don't know what to ask, talk to friends who bought recently. Find out if they discovered unexpected surprises after they moved in. Your real estate agent should be able to provide a list of red flags that could indicate serious problems. Ask your agent if he or she has been involved in any unpleasant after-closing situations, and if there could have been anything done before closing to prevent this. Home inspection, engineering, drainage and termite reports often include recommendations for further inspections. And they note items that won't be inspected, like a sauna or irrigation system. Real estate brokers often give buyers a disclosure document advising them to inspect the property carefully. The disclosure might also indicate important issues that agents will not be looking into, like checking the permit record. Don't be fooled into thinking you don't need to follow up on these issues because the house looks fine. You could get lucky, but I wouldn't count on it. In fact, disclaimers detailing the limits of inspectors' and agents' responsibilities make a strong case for taking charge of your due diligence investigations. Don't be shy about asking questions. For instance, if the sellers have pets, ask if there are, or have been, any odors or damage attributable to the pets. If you're concerned about drainage, ask the sellers if they've had any water problems. If so, what have they done to correct the situation? Find out if the house has recently been carpeted or painted. Document your conversations. Better still, ask the sellers to put any pertinent disclosure in writing, even if it's just an e-mail. Keep this documentation in your transaction file. The first thing to do if you discover a serious defect after closing is to review your transaction file and make sure this wasn't already discovered during inspections or disclosed to you by the sellers. If the documentation reveals nothing, make your agent aware of the problem and ask her to talk to the listing agent so that the sellers are aware of the situation. It will cost less time, money, and aggravation if you can resolve the issue without having to go to arbitration or court. THE CLOSING: If this doesn't work, consult with a knowledgeable residential real estate attorney about how to proceed. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
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| No benefit to refi with current lender? By Benny Kass DEAR BENNY: I am shopping for a new mortgage (I will refinance about $160,000 remaining on a condo worth about $300,000) and discovered my mortgage holder wants about $2,200 in closing costs. I just financed with this bank three years ago and have stellar credit. There seems to be no special benefit for refinancing with this lender. Their broker told me as much. I don't understand why they wouldn't want to keep a good customer. Any insight? --Janelle DEAR JANELLE: I am not a defender of banks, but just because the bank performed a title search and a refinance three years ago does not mean that there are no clouds (i.e., impediments) on your title now. The bank must have clear title in order to make you a loan. Accordingly, it must again perform a title search. Additionally, there are administrative costs that have to be paid because the lender will have to look at your financial situation again. There will also be closing (escrow) costs to the settlement attorney or title company. My suggestion is to shop around. Rates are now quite low and mortgage money is becoming more available. Get some quotes from other lenders (including all costs), and then go back to your bank. Tell them you would like to work with them, but their costs are high, and you want them to give you a discount. If that works, go with your current lender. If not, you have the right to refinance with any lender of your choice. DEAR BENNY: In addition to our primary residence, my husband and I own a commercial property that houses our business on the first floor and a residential apartment on the second floor. We currently rent out the apartment. The property is zoned commercial (C-4), dual use. Before selling this property, is there any advantage to selling our primary residence and moving into the second-floor apartment for two years to establish residency? Since each floor is 1,250-square feet, would we then be exempt from paying capital gains taxes on that portion of the profit from the sale that represents the residence? And if so, in determining what portion is considered residential use, would the land that surrounds the building (approximately 4,000 square feet of concrete driveway/parking lot) be considered part of the commercial property although part of this area would be used for parking our personal vehicles as well as customer parking? --Pauline DEAR PAULINE: Excellent suggestion. The law that allows homeowners to exclude up to $500,000 of gain is not a "once-in-a-lifetime" situation. It can be used over and over again. The only conditions are that the property must be owned and lived in two out of the five years before it is sold. So, you can sell your current home and if you have owned and lived there for the requisite period of time, you can exclude up to $500,000 of your profit. In fact, if you have lived in that property for a long time, you can even move into the upstairs apartment now, so as to start the clock running on the second exclusion. However, be careful --if you cannot sell your current house within the next three years, you will lose the right to exclude the profit. And here's another suggestion: When you sell the second property, you have the right to do a 1031 "like-kind" exchange on the first-floor business, and at the same time take the exclusion for the upstairs apartment. This would mean, however, that you will have to be a landlord for at least one or two years on the replacement property that you obtain through the exchange. Talk with your financial advisers about this. As for allocation of the parking area, I really don't know how the IRS would treat this. I suspect, however, that if you carefully allocate the square footage for your personal usage as compared to the business operation, that calculation would be acceptable. DEAR BENNY: Can you tell me what steps a board of directors/management company should take in the event a water-damage claim against the master policy is made by a condo owner? Should the board/management company investigate, take pictures of the damage, and stay actively involved throughout the claims process or merely turn the whole matter over to the insurance company and, in the event of litigation, its attorney? --Paul DEAR PAUL: That's a very good question. On the one hand, the board -- which has a fiduciary duty to the owners -- must make sure that the claim is being processed correctly and honestly. On the other hand, boards of directors are volunteers, and must be able to rely on the professionals who are paid to assist, including management. I think the answer lies somewhere in between doing nothing and being too proactive. Management should monitor the progress of the claim and make sure that the insurance carrier has taken pictures of the water damage. Management should also confirm with outside consultants that the amount of money the carrier is prepared to pay is sufficient to make the repairs. And since insurance companies usually have their own contractors to do the repair work, management should also periodically monitor the work to determine whether it is being done correctly. And management should submit a status report to the board on a monthly basis. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
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| Nothing seems to fix low shower pressure By Paul Bianchina Q: I have a shower in my master bath that has had low pressure since we built the home five years ago. I've taken the head off and the pressure is still weak. All the other water sources in the house have very good pressure. A friend mentioned that the cartridge could be the culprit. Does that sound right? Is it hard to replace? I'm pretty handy and have fixed a bunch of stuff in previous homes. A: If you have good pressure everywhere else, then I would agree with your friend that the cartridge is probably the problem. Since it's been doing this since the house was new, it probably has a small piece of dirt, solder or other debris in it. Changing the cartridge is not difficult, although the exact procedure will vary between faucets and manufacturers. First, shut off the water supply. Since it's unlikely that you would have individual shutoffs for the shower alone, you'll need to shut off the main supply to the entire house. To remove the old cartridge, pop the plastic cap off the center of the handle to access the screw underneath. Remove the screw, and remove the handle. Behind that is a trim plate -- remove the screws and remove the plate. That should give you access to the cartridge, with will be held in place with screws or a threaded ring. Take the old cartridge to any retailer of plumbing supplies, and they can fix you up with a new one. Complete reinstallation instructions will be included with the new unit. Incidentally, you can also buy repair parts to rebuild the existing cartridge, but I would recommend spending a little extra and simply replacing the entire cartridge unit. Before installing the new cartridge, I would recommend flushing the valve to be sure you've removed all the debris inside. With the cartridge still out, have someone slowly turn the water back on. Don't turn it all the way back on, because that will generate quite a stream. Watch the water as it comes back on, and you should see a strong, steady flow begin. Assuming it does, have your helper shut the water right back off again, then proceed with the cartridge replacement. If the cartridge replacement doesn't fix the problem, then you could have some type of obstruction in the water lines leading to the shower. In that case, I would recommend having a good plumber come and take a look -- if possible, use the same person who plumbed the house originally, since they'll know right where to look. How do I get that old epoxy paint off? Q: I hired a contractor to put an epoxy on my garage floor. When the epoxy was being installed the contractor asked if I wanted it to end at the point the garage door hits the concrete or run to the end of the concrete slab, which extends about 4 inches beyond the point the garage door touches down. I opted to have the epoxy extend beyond the door. The problem now is that the 4 inches of epoxy outside the door has discolored (yellowed) and now looks poor. My question is -- is there a way to remove the 4 inches of epoxy? Thanks for any help; I really enjoy your column. A: One of the great things about epoxy paint is that it's virtually a permanent coating. In a situation like yours, however, that's also its drawback -- it's very tough to remove. Epoxy garage-floor coatings are also not suitable for exterior use, so I'm a little surprised that the contractor even suggested painting it in an area that's exposed to the elements. Since we're not talking about a large area, my suggestion would be to sand the epoxy off. Use a pad sander or orbital sander with 60- or 80-grit paper, and use a strip of wood or other material to create a straight line that you can sand up to where you want the paint to stop. Be sure to wear both eye protection and a respirator while sanding. After sanding and cleaning the strip of concrete that will extend beyond the garage door, you can apply an exterior concrete sealer to it that will both protect the concrete and enhance its appearance. I also would suggest that you consider installing a vinyl garage-door sill strip on the concrete where the door meets the floor. This will create a visual break between the inside and outside, as well as providing you with some additional wind and water protection at the bottom of the door. Garage door sills are available at many home centers, as well as through garage-door dealers. They're easy to install -- simply cut the material to length and glue it in place. Complete instructions will be included with the sill strip. |
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| Don't skimp on title insurance By Dian Hymer Most people are trying to cut costs these days. Some even wonder if it's necessary to pay for title insurance when they buy or sell a home. Skimping here could end up costing plenty if you discover a title defect after you own the property. Title insurance is paid for once at closing and covers the property for as long as you own it. It protects the purchaser from financial loss deriving from defects in the title to the property. The premium cost varies depending on the title insurance company, and is usually based on the purchase price. Who pays the title insurance premium often depends on local custom and can vary from one county to the next. For instance, if you were to sell a home in Los Angeles County, where the seller usually pays for title insurance, and buy in Alameda County, where the buyers usually pay, you'll pay for title insurance twice during one move. Buyers typically pay the premium to cover their lender's interest in the property. The payment of title insurance is not set by law and can be negotiated between the buyer and seller, although local custom usually prevails. Whatever is agreed to in the purchase agreement will dictate who pays the premium. A buyer who was an attorney thought title insurance was expensive and a waste of money. Given his legal expertise, he decided he'd search the title record himself to avoid paying the title premium. In the end, his agent talked him out of the do-it-yourself approach based on the risks involved. Title insurance companies search the title to a property to make sure that there aren't any defects in the chain of title. They also look for liens and easements recorded against the property, as well as establish who has marketable title to the property. In one case, the title company discovered when searching the chain of title that when the property sold to the current owner, an heir to the estate had not signed the deed transferring title. This meant that person still had rights to the property. Fortunately, the title company located the heir, who was reputable. She relinquished any interest she had in the property. If the heir hadn't been cooperative, the current owner could have made a claim against the title insurance company that issued title insurance to him when he bought the property. Title companies usually issue a preliminary title report, which is an offer to provide title insurance on the property. It is not the insurance policy, but it shows the results of the title search. You and your real estate agent or real estate attorney should examine the preliminary report carefully to make sure the person who has marketable title to the property is the person who signed the purchase agreement. Also check for liens secured against the property. Easements grant the right to use the property to someone other than the owner. Common easements are for utilities, sewer, and drainage. Ask the title company to provide written copies of any easement and CC&Rs (covenants, conditions and restrictions), and to locate the easements in color on a copy of the parcel map. You can't build over an easement. Both CC&Rs, typically found in condominiums and planned-use developments, and easements restrict your use of the property. Make sure you understand how these will affect your ownership interests before you complete a purchase. If you find defects in the title, make it a condition of the purchase that the seller cures the defects before closing. Make sure that your purchase agreement includes a clause that gives you that right. THE CLOSING: Ask your title officer, REALTOR® or attorney for answers to any title-related questions. Dian Hymer is a nationally syndicated real estate columnist and author. |
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| What makes food "organic"? By Charly Papp Organic food is hot and with good reason -- current research shows that it does indeed live up to the hype. Recent studies at UC Davis and the Danish Institute for Agricultural Research have detected higher levels of antioxidants, vitamins, and minerals in organically farmed foods than in their conventionally produced counterparts. While this news makes their often-higher price tag easier to swallow, navigating the organic options at Whole Foods can be anything but simple. Here, a run-down of the terms so you’re ready to face the aisles: Organic – farmed without the use of chemical pesticides, fertilizers, sewage sludge, and—in the case of livestock—antibiotics and growth hormones. While the jury’s still out on whether these things are actually harmful to your health, it sure makes non-organic foods a lot less appetizing. When the term is used on packaged food labels, it ensures that at least 95 percent of the ingredients are USDA-approved organic. Those labeled made with organic ingredients must contain at least 70 percent organic components. For more information on USDA’s certification system, visit their website: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateA&navID=NationalOrganicProgram&leftNav=NationalOrganicProgram&page=NOPNationalOrganicProgramHome&acct=AMSPW. Conventional – foods not otherwise distinguished as organic. These foods may or may not be farmed with the use of chemicals, antibiotics, and hormones. Natural – a distinction used for foods that have been minimally processed and contain no preservatives. However, the definition is not a legal one, so watch out for imposters. And remember—just because a food is natural doesn’t necessarily mean it’s healthy. Super-premium ice cream that is made with all-natural ingredients still packs a whopping 240 percent of your daily saturated fat intake per pint! Sustainable Agriculture – farming that favors more natural practices to harvest a crop, which in turn creates a system wherein food can be produced indefinitely. Transitional – food produced by a farmer that is transitioning from conventional to organic—a process that takes at least three chemical-free years to certify. Fair Trade – farmed by workers who receive a living wage and work under safe conditions. To learn more about fair trade, visit the International Federation for Alternative Trade’s website: www.ifat.org. Recombinant Bovine Growth Hormone (rbST or rBGH) – a genetically engineered hormone given to cows to boost milk production. Many claim that consumption of this hormone—which is banned in Canada and Europe—contributes to elevated cancer risk, though clinical studies have yielded somewhat conflicting results. Genetically-Modified Foods (GMOs) – crops that have been scientifically manipulated to enhance some trait, be it longevity or nutrition. Critics attest that their use is altering our environment in a host of unhealthful ways and add that their effect on humans is not yet known. For a fair look at the issue, see http://www.csa.com/discoveryguides/gmfood/overview.php You can safely assume that a food labeled “organic” is certified so—the fine for false claims can reach upwards of $10,000—but beware of the greenwash that is lending its ghoulish hue to many a not-so-virtuous product. Due to the monumental success of organic foods, many manufactures are jumping onto the green bandwagon if for nothing else than packaging, favoring designs that present a more wholesome image to the consumer. This means you’ll see more earth-toned exteriors, rustic fonts, fruits and vegetables figuring prominently… don’t be fooled. Look for key words like organic or no GMOs and check the ingredients and nutrition facts for the stats. Though the range of organic products is ever evolving and expanding, with a little bit of knowledge, you and your family can grow with the trend—without the use of chemical fertilizers and pesticides. |
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| Want to conserve water but still have a lawn? Go native. By Padma Nagappan Before the advent of lawnmowers, there was a time when lawns were meant only for the wealthy, since they could afford to hire a crew of workers to manually cut and maintain their sprawling gardens with scythes. The rest of the folks used what land they had to grow vegetables, medicinal herbs, and flowers in cottage gardens. Today, grassy lawns are ubiquitous in front and back yards across America and a trademark of modern housing developments. Given that southern California is experiencing a prolonged drought and parts of the north have water supply problems, it may be time for home owners to sit up and question whether the resources spent on maintaining their lawns are justified. Utility officials estimate that up to 70 per cent of the average residential water bill is derived from outdoor use. What are the alternatives? Artificial turf companies peddle their products as the ideal no maintenance, green solution to replace thirsty, patchy lawns. Water agencies down south even offer rebates for consumers who replace lawns with turf. But there is concern about the lead content in the turf, and is the subject of an ongoing debate. A better alternative would be to go native, choosing grasses and plants that are drought tolerant and indigenous to California. David Fross, the founder of Native Son Wholesale Nursery in Arroyo Grande, has stocked native grasses for years, but until recently there were no takers. Now, with gardeners wanting to conserve water, it is a challenge to keep these varieties in stock. “What complicates things is that California has microclimates that vary from coastal to inland locations, so irrigation requirements for the same plants would vary depending on where you live,” says Fross, whose latest book, Reimagining California Lawns (Cachuma Press), will be published in 2010. One issue with native plants is that in adapting to our Mediterranean climate, they go dormant in the summer, which is when most folks want to enjoy their gardens. For moderate to heavy traffic, Fross recommends sedges such as the slender field sedge, which is compact, stays green all summer, needs about half the water of a traditional grass, and monthly mowing. Other options include blue gama grass, California meadow sedge and blue sedge. Korean velvet grass is not native but is slow growing, dormant in winter, and can be left unmowed for a natural, clumping look. Buffalograss UC verde is native to the west, forms a dense turf of bright green blades, and stays greener longer than other sedges. For moderate traffic, meadows that combine perennials with grasses and sedges into carpets are a good option, Fross says. He suggests yarrow varieties (Achillea species) that are water thrifty, can be mowed, and sprout small flowers. Other choices are deer grass and checkerblooms. The Corsican mint is a good candidate for light traffic areas and between stepping stones. If you prefer ground cover, create carpets or tapestries using bee’s bliss sage. Gravel and rock gardens with accent plants and succulents such as agave, manzanita, and buckwheat are yet another alternative. Except for the meadow, all of these options are relatively low maintenance but will require care during their first season. To kill your patchy grass without chemicals, tamp down sheets of black plastic and it will die in eight to twelve weeks, suggests Fross. Conversion costs range from $10 to $50 per square-foot, depending on what you choose and who does the work. The popular belief that native plants are woody and gray is incorrect, he says, explaining that they offer a wonderful, rich palette of options and are versatile, being able to adapt to locations on valleys and banks, sun or shade, median strips and meadows. There are 5,000-plus native choices that can serve every function that the generic plants from garden stores offer, he explained, suggesting alternatives for popular ornamental plants. If you like hibiscus for instance, a great native plant equivalent would be the abutilon palmeri, local to San Diego, which has luminous, golden flowers and felted, gray leaves. Another iconic California native is the Ceanothus, with blue spring flowers. To find out where to purchase native plants, visit www.nativeson.com for a list of retail nurseries and www.bewaterwise.com for plant suggestions. Padma Nagappan is a San Diego based business writer who focuses on sustainability. |
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| Get real with unrealistic sellers By Dian Hymer In some areas there is a shortage of desirable, well-priced listings. Sellers who don't need to sell now are waiting for a better market. Many sellers who would like to sell now have unrealistic expectations about what a buyer would be willing to pay for their home. If you like a listing that is overpriced for the market, one approach is to keep your eye on it and wait for a price reduction. The risk of this approach is that another buyer might come along and start a negotiation with the seller. It would be unfortunate if you were to find out later that the listing sold for a price that you would have been willing to pay. A better approach would be to start the negotiation process and hope to find a price that is mutually acceptable to both you and the seller. Be prepared for a protracted negotiation if the property is listed considerably over a fair market price. Recently, a pair of buyers made a very low offer on a listing that was priced a little higher than market price. The sellers wouldn't even respond to the buyers' initial offer. The buyers waited a week or so and offered a higher price, but one that was still unacceptable to the seller. Finally, after six weeks the buyers and sellers came to a mutually agreeable price and the sale closed. HOUSE HUNTING TIP: When you are dealing with an unrealistic seller, don't play all your cards at once. If you offer your best price initially, and it's quite a bit lower than the asking price, you have no room to move up pricewise. The purchase price isn't the only item to consider when negotiating. For example, if you don't need to take possession of the property right away, you might offer the seller the option to rent back after closing. This would be particularly attractive to sellers who can't get into their next home right away and would have to rent elsewhere for a while. In a case like this, consider not including this perk in your initial offer. You can add this benefit in future rounds of negation to sweeten your offer. For example, recently sellers of a home in the hills above Oakland, Calif., received an offer that didn't meet their expectations. It was a clean offer and not contingent on the sale of another property. The sellers wanted a higher price. The buyers were willing to accept a higher price but only if their offer was made contingent on the sale of their current home. The sellers, who were in contract to buy another house, decided to accept the offer with the lower price that was not contingent on the sale of the buyers' home. Presenting sellers with an either/or option can bring positive results. The closing date can be used as a bargaining chip. A seller who has already closed on another home and is now paying mortgages on two properties would benefit financially from a relatively short closing. If you have this flexibility, you might offer to close in 60 days or so, but agree to a shorter close in exchange for a price reduction. It's always a good idea to be preapproved by a lender before you make an offer. If you include a preapproval letter with your low-priced offer, at least the seller knows he is dealing with someone who is qualified to buy. THE CLOSING: It is a good idea to find out as much about the sellers' situation as possible so that you can tailor your offer and subsequent counteroffers to your best advantage. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
| Tech playing key role in real estate deals By Dian Hymer Invariably, buyers or sellers are faced with important decisions at the most inconvenient times. They may be on vacation or on a business trip. Even if you're in town, you may be tied up in meetings and unable to take time to drive to your real estate agent's office. There are ways to deal with this that will minimize the hassle and enable you to respond in a timely fashion. Timing is essential in the home-sale business. If sellers have to wait too long for a response, their enthusiasm might wane. Buyers, on the other hand, could find themselves bidding against another buyer if they make an offer on a hot new listing and can't respond to a counteroffer in time. Often negotiations are handled verbally when buyers or sellers can't be present to sign a purchase contract or counteroffer. But oral agreements to buy and sell real estate are not binding. That's why it's important to have a procedure in place that enables you to sign any pertinent documents as soon as possible, no matter where you happen to be. If you're leaving town, let your agent know the dates you'll be gone and how best to reach you. HOUSE HUNTING TIP: Many homes are bought and sold using a combination of phone, e-mail and fax. Recently, electronic signatures have become popular. In order to use an electronic signature, you need to sign up with a company that is equipped to provide e-signatures on documents. Use your search engine to find an online provider, or ask your real estate agent, attorney or closing agent for a recommendation. Then, your agent can send you documents; you sign with your e-signature and e-mail the documents back. Most lenders won't start processing the buyers' loan until they have a signed purchase contract. However, they will start the process if the contract is signed with e-signatures. They are likely to require that you add wet signatures to the contract before closing. The buyers or sellers might also request this. A downside to e-signatures is that anyone who has access to your computer might hit your designated e-signature key on your keyboard. Keep this information confidential. Faxed signatures are binding as long as this verbiage is included in the purchase agreement. Documents can be faxed or scanned and then e-mailed to you. You print the documents, sign them and fax them back to your agent. If you won't be staying at a hotel that provides business services, find a company like FedEx Office, or the UPS Store that can fax or scan and e-mail the signed documents back to your agent. Otherwise, ask a friend or real estate agent in the area if you can use his or her fax machine. Another possibility is to grant power of attorney to someone you trust who can sign documents for you in your absence. The power of attorney should be specific to your home purchase or sale. If someone is going to sign documents that will be notarized and recorded at closing, make sure that the power of attorney document will be acceptable to the buyers' lender and to the title company. It's not a good idea to give power of attorney to your real estate agent. Sellers who hold title to the home they're selling in a living trust won't be able to use a power of attorney unless the trust documents specifically provide for this. Some sellers who know they will be out of the country when closing occurs arrange to sign documents early. Overnight mail can be used if necessary. THE CLOSING: However, any documents that need to be notarized in a foreign country must be signed at an American consulate. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
| Pulling the trigger on nail gun purchase By Paul Bianchina For professionals and do-it-yourselfers alike, nothing makes a job easier and faster than a power nailer. Nailers not only substantially speed up your work and save a lot of stress on your arm, hand and wrist, but they reduce wood splitting and hammer dents, eliminate predrilling in hardwoods, and accurately set your nails at or below the surface of the wood. COMPRESSED AIR The most common power supply for a nailer is compressed air, which is created by an air compressor and routed to the nailer through a hose. Compressed air is reliable, easily adjusted and consistently powerful, but requires the additional expense of an air compressor that needs to be taken to the jobsite and set up. With compressed air, you have more nailers to choose from, ranging from big framing nailers to smaller, more precise finish nailers. One example of a professional-quality, air-powered framing nailer that would also be at home in the do-it-yourselfer's shop is the new Paslode PowerFramer 350 ($279). At 7.5 pounds this is one of the lightest framers on the market, but the PowerFramer was designed with enough power to drive 3-inch nails into dense engineered-lumber products. This nailer shoots a variety of different nail types, in sizes ranging from 2 inches to 3 1/2 inches in length. And it's definitely durable, with -- according to the manufacturer -- the ability to withstand a drop from a two-story building. At the other end of the spectrum are the finish nailers, which are designed to drive thinner nails with much smaller heads. An example of a very nice finish nailer is Paslode's new 16-gauge Angled Finish Nailer ($199, with fitted case). The angled head on this nailer makes it easier to get into tight locations, and at 3.75 pounds it's light, powerful and very well balanced. The thinner 16-gauge nails reduce the chances of splitting the wood and also leave a smaller hole to putty. This particular nailer will drive nails ranging from 1 1/4 inches to 2 1/2 inches in length, which adds versatility. CORDLESS Cordless nailers offer the convenience of not having to set up an air compressor and not being tethered to an air hose, but the tradeoff is less power and the need to keep a charged battery available. DeWalt, another manufacturer of professional-grade tools that are also very suitable for home improvement use, offers several very nice cordless finish nailers that range in voltage from 12 volts to 18 volts (average cost $349 to $379, with case and batteries). These nailers are available with a straight magazine for faster nailing in higher-production applications, or with a 20-degree angled-head magazine for tight spaces and greater single-shot accuracy. The DeWalt guns shoot 16-gauge nails in sizes ranging from 1 1/4 inches to 2 1/2 inches long, and an 18-volt battery will give you enough power to shoot upwards of 800 nails. FUEL CELLS Fuel-cell nailers are something of a hybrid between compressed air and battery-powered nailers, using a combination of a rechargeable battery and a small, disposable fuel cell that contains compressed liquefied gas. Like the cordless nailers, fuel cell nailers offer freedom from a compressor and air hose. And like compressed air tools, they offer quite a bit of power, making them capable of shooting larger framing and siding nails. On the downside, you have the additional cost of the fuel cells themselves -- average cost is around $5 to $6 each. Paslode has long been known for its tough and very reliable fuel-cell nailers, and they have several to choose from. For framing, take a look at the excellent new CF-325 Cordless Framing Nailer ($399, with case, battery and accessories). A comfortable 7.5 pounds with a nonslip handle, the CF-325 has a 30-degree-angled magazine and is capable of shooting several different types of nails up to 3 1/4 inches in length. A fresh battery will drive about 4,000 nails, with a fuel-cell life of around 1,200 nails. This is a true framing nailer with the convenience of a cordless, and for building a fence or framing a shed in the back of the yard this gun is unmatched for its combination of power and versatility. For finish tasks there's Paslode's 16-Gauge Straight Finish Nailer ($299, with case, battery and accessories). This nailer sets up quickly -- just insert the battery, fuel cell and nails, and you're ready to go. The nailer weighs 4.75 pounds, and is very comfortable to hold and use for extended periods. It has a nonmarring tip for delicate woods, and an easily adjustable depth setting that ranges from flush to deep setting of the nails. For versatility, you can shoot nails ranging from 3/4 inch to 2 1/2 inches in length. EYE PROTECTION Eye protection is no joke when using a power nailer. Most manufacturers provide safety glasses with their guns, and if they don't, be sure you buy a pair. NEVER use a nail gun without eye protection! |
| How do appraisals impact estate tax? By Benny Kass DEAR BENNY: Please explain the process of an appraiser for estate property. Also, I need to know the effect the appraisal has on income tax or estate tax. I have been unable to find anything in detail on this subject except the fact that you need to get appraisals. –Joe DEAR JOE: State probate laws vary, but generally real property needs to be appraised as of the date of death for probate purposes. In the District of Columbia, where I practice law, it is sufficient to use the government's real estate tax-assessed value to report the property value in the petition for probate. For federal estate tax purposes, an appraisal is required to be filed with the estate tax return. For date of death in 2009, a federal estate tax return is required only if the gross estate is greater that $3.5 million. Last year the threshold for filing a return was $2 million. If a return is required (or if the IRS could argue that it was required), an appraisal as of the date of death should be prepared. An "alternate valuation date" using the date that is six months after the date of death can be used if the appraised value on that date is lower than the date-of-death value. Federal income tax is imposed on the gain on the sale of the decedent's property. The gain is determined by taking the difference between the date-of-death value (or alternate valuation date, if that date is used) and the sales price of the property. The taxpayer cannot use one valuation for estate tax and another for income tax purposes, so it is important to consider both estate and income tax consequences when choosing the valuation date. State estate tax and income tax would also need to be considered, but the laws vary state to state as to what, if any, amount is exempt from tax. In the District of Columbia, for example, the decedent's assets up to $1 million are exempt from estate tax. The federal valuation and alternate valuation rules are followed. I hope this general statement is helpful, but you really should consult your own tax and financial advisors regarding the law in the state where the decedent died. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
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