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| Home & Real Estate Update |
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Studio City Beauty Coming Soon Adorable 2 bed/2 bath with den in prime Studio City. |
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Leased! Fab Spanish Estate Spectacular New Spanish Estate built with impeccable attention to detail... http://tours.tourfactory.com/tours/tour.asp?t=526694&idx=1 |
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SOLD! Prime Westwood Condo Sold with Multiple Offers! Cute and clean Westwood pied-a-terre in location... http://www.1440VeteranAve.com |
Articles and Advice |
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| Find property problems before you buy By Dian Hymer To avoid a bad experience that could end up in a legal battle with the sellers over property problems, make sure your purchase agreement includes an inspection contingency. Your mission during the inspection contingency period is to find out as much as possible about the property and surrounding area, insurability of the property, permit history, zoning issues and cost to repair defects. Investigate any issues that could affect whether or not the property will suit your long-term needs at a price you can afford. Most states have home seller disclosure requirements. If you are buying in a state that doesn't require sellers to disclosure material facts, ask the sellers to disclose in writing any property defects or neighborhood issues they know about. Also, find out if there are systems that require routine maintenance, such as the furnace, drainage system, skylights and roof. After you clear the inspection hurdle, ask the seller to provide you with contact information for any people who have worked on the property that the sellers would recommend. Find out when major components were replaced and when the house was last painted. Find out how much the sellers pay for utilities. Ask for copies of proposals and paid invoices for any significant work done on the property. Basically, you want to know any problems the seller had with the property, what was done about it, by whom and when. If the roof was recently replaced, find out if it's covered by a warranty and if it's transferable to you. You may feel uncomfortable asking the sellers to provide additional information at the time you make the offer, particularly if there are multiple offers. In this case, ask the sellers for answers to your questions during the inspection contingency time frame. Questions will undoubtedly come up during your inspections. HOUSE HUNTING TIP: Even if the sellers have provided presale inspection reports and disclosures, have your own inspectors give the property a thorough exam. Some buyers hire the seller's home inspector to meet them at the property to explain the presale report and ask questions. This may save you money. But, saving money should not be the primary goal when having a property inspected. Buyers of newly built homes should ask the sellers for any construction-related documents like the geotechnical report, engineering calculations, and letters to the planning department confirming that the geotechnical engineer monitored the construction and confirmed that the house was built according to his recommendations. Ask the seller to leave the architectural plans, if they're available. Verifying livable square footage is a big issue in today's cautious mortgage environment. Many lenders won't count additions or renovations that add square footage in the appraised valuation of the property. If the sellers can't provide the supporting documentation, such as copies of approved permits, the property could appraise for less than you agreed to pay. This might jeopardize the transaction if the lender approved a lower mortgage amount than you requested. It's a good idea to check the permit history at the planning department yourself if the sellers can't provide copies of permits for work done. This should let you know if renovations were done with permits and if the permits received final approval. You should have this information before removing the inspection contingency. Many planning departments won't issue a new permit if there is a permit on record that never received final approval. The new owners might incur fees to clear up any outstanding permits before they can move forward with new improvements. THE CLOSING: With probate and REOs (bank-owned properties) you will receive minimal, if any, information about the property condition. Be extra careful with your due diligence investigations. 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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| Fixing to sell: Don't go overboard By Dian Hymer Fixer-uppers with upside potential were in high demand when the market was appreciating at a fast pace. Once depreciation took over, speculators disappeared until 2009, when low-end foreclosure properties in some areas became hot properties -- particularly if they were selling at a 50 percent discount from the peak in summer 2006. In California, 70 percent of the homes bought by investors in 2009 were distressed-sale properties, according to the CALIFORNIA ASSOCIATION OF REALTORSŪ. Some were stripped of appliances and fixtures. But, at half price, there was profit potential for buyers who were up for a redo -- especially seasoned investors buying multiple homes to fix up and resell, or rent out. Fixers priced over $500,000 aren't as easy to sell today. Most buyers in higher price ranges are buying a home to live in. They want a home in move-in condition that will suit their long-term needs. There are exceptions. In high-demand market niches with few listings, there is occasionally a fixer-upper that draws a lot of attention. Usually, these fixers sell to buyers who will live in the property and fix it up themselves to save money. Often this is the only way they can afford to move into the neighborhood. Sellers of fixers in such neighborhoods should make their property as presentable as possible by cleaning out clutter, both inside and out. Many homebuyers can't visualize a property's potential. It's often worth a modest investment to show the house at its best advantage. Cosmetic improvements, such as painting, replacing outdated floor covering, or refinishing worn hardwood floors can pay off. Some fixers are staged, even though the property needs a lot of work, so that buyers can envision themselves living there. Presale inspections will help buyers make a decision about whether or not to tackle the project. Make reports available to buyers before they make an offer to avoid having to put the home back on the market if the deal falls apart because the buyer's inspectors discover defects not previously disclosed. HOUSE HUNTING TIP: How much you spend preparing a fixer for sale depends on several factors. How much did you pay for the property? How much do you owe against the property? Is there demand for fixer-uppers in your area? Finally, how much does your real estate agent think you can sell the home for given current market conditions? Sellers who have equity in their home and cash to invest in fix-up for-sale work should consider making cost-effective renovations, like a kitchen upgrade, but not an entire renovation. Ask your agent what the home would sell for with and without these improvements before doing anything to it. The investment may not yield a profit, but could recover the costs when the home sells. In areas where fixers aren't selling, sellers might need to enhance the property to sell at all. A good real estate agent should be able to provide references for reliable, reasonably priced professionals who can do the jobs for sellers who haven't the time or expertise to do the work themselves. Buyers who bought at the peak may not be able sell for even close to what they paid. One possibility would be to rent the property, if it makes sense financially. You may need to fix up the property somewhat to attract a good tenant. Consult with a certified public accountant about the tax consequences of converting a single-family residence to a rental. Another option, if you don't have to sell now, is to stay put for awhile and fix the property up gradually over time. Avoid investing a large amount of money in the hopes of getting a bigger return. THE CLOSING: The housing market in your area may be too uncertain for speculation. 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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| Design tips for updating 1950s tract home By Paul Bianchina Q: Our house is a nondescript 1950s ranch tract home with a light-gray composition shingle roof. It's currently a dated white with blue trim, and we'd like to update the paint job. We're also relandscaping with drought-tolerant tropical and contemporary plants, and not much grass -- mostly bark and flagstone walkways. Is there somewhere where I can see other updated tract homes? Do you have any color suggestions? A: I would begin in your own neighborhood, and just start driving. Wander different streets around where you live, and then slowly branch out from there. Keep a local map handy, and whenever you find an area of homes that looks interesting, highlight it on your map for future exploration. Ask your real estate agent, for exploration suggestions, as well as others you come into contact with, such as the landscaper. While it's nice to look at homes that are similar to your own, you don't need to be limited to just those either. I would suggest going through new housing tracts of starter-level homes, and see what is currently being done in the way of colors and exterior amenities. As to color choices, there are three simple things I can suggest. First of all, make a visit to your local paint store or home center and pick up some brochures on exterior paint colors. Many of these brochures offer suggestions of colors that work well together, and you might see some combinations that appeal to you that you wouldn't have otherwise thought of. Some paint stores have computers with paint-scheme programs that are free for customers to play with. You can browse through a library of common house styles until you find one that looks similar to yours, add a roof color that looks like yours, and then use the computer to add different body and trim color combinations to see what they look like. If your local paint store doesn't have one, you can also find places online that do the same thing -- there may be a small charge, but it's well worth it. My third suggestion is to take a digital photo of the outside of your home, then print it out on your computer in black and white, making several copies. Using colored pencils, color in the roof in a shade that's as close to yours as possible, then, referring to some of the color combinations you liked from the paint store brochures, color in the front of the house and see what you think. You can also do this more accurately with programs such as Photoshop, but that might be more time-consuming and involved than you would like to get. Final suggestion: Don't limit yourself to just paint. There are any number of ways that you can really dress up the outside of a plain tract house and set it apart from the others in the neighborhood, without spending a fortune. You can add some different trim treatments around the windows, change the front door, add some shutters, and add some door trim, just to name a few. Home shows, decorating shows on TV, magazines and your neighborhood wanderings should all be sources of inspiration. Q: I would like to use the cable railings (on my deck railing) except for the high price. Do you think it would be possible to substitute a thick, strong wire instead of the cable? These wires keep in huge farm animals ... so their strength is comparable to cable ... well over 1,000 pounds in breaking strength. I would appreciate your thoughts. A: You can actually construct a deck railing out of any materials that comply with the requirements of whatever building codes are in effect in your area. I have seen some very nice railings made from square-grid and rectangular-grid wire livestock fencing set into wood frames, as well as wood dowels, metal conduit and other materials. Whatever you choose needs to be strong enough and secured tightly enough to meet the building codes, and also has to be spaced closely enough together -- most codes require a spacing of no greater than four inches. You also want to avoid materials with sharp edges or ends, as well as materials that won't weather well. Finally, you want to select a material and an installation method that is safe, pleasing to your eye, coordinates well with your home's style, and maintains your resale value. |
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| Why real estate price padding doesn't work in today's market By Dian Hymer Many sellers are in denial about the current value of their home, particularly if they bought within the past five to six years. The market peaked in the summer of 2006, and home prices dropped significantly in most areas from 2007 through 2009. Sellers often see no harm in asking a higher price -- one based on their needs or desires rather than what the market will bear. "We can always come down" is a common refrain. Letting your home sit on the market at a price that's too high can result in price reductions and a lower sale price, especially if the market is still declining. Today's homebuyers are nervous, pragmatic and well educated about the market. Not only are buyers cost-conscious, fewer buyers can qualify for a mortgage than was the case in 2006 due to recent credit tightening. Many who bought in 2006 couldn't qualify for the same mortgage today. There is a smaller pool of motivated, financially qualified buyers than there was several years ago. These buyers have an edge in most markets. Buyers want to know how long a listing has been on the market. If it has been on the market for some time, they wonder why it hasn't sold. Is there something wrong with it? A high price can signal that the seller isn't motivated. Buyers don't want to waste their time. Don't waste yours as a seller if you aren't serious about selling at current market price. No one knows for sure when the housing market will turn around. Many economists think we've hit bottom or are close to it. Analysts also forecast that home prices will bump along the bottom for some time. They don't expect a quick rebound. There isn't an urgency to buy before prices rise; buyers are taking their time to find the right long-term home. They are not overpaying. Even in low-inventory markets where multiple offers can occur, the price is usually not bid up radically, unless the listing was considerably underpriced. Interest rates are low. Buyers' nervousness about the housing market has thawed recently. The combination of lower home prices and interest rates has made housing more affordable than it has been in years. There is a risk that interest rates will increase to around 6 percent by year end. If so, this will affect the affordability equation and could have a downward influence on home prices, depending on the condition of the job market and the economy. HOUSE HUNTING TIP: To take advantage of this window of opportunity to sell, your home needs to be priced competitively. There was a time when sellers padded their list price so that they'd have room to negotiate. That strategy doesn't work in this market. Your house needs to look great and be priced competitively so that buyers realize they have to jump before someone else does. An analysis of data from the multiple listing service for Piedmont, Calif., properties listed in 2009 provides an insight into the importance of pricing right for the market. During 2009, the listings that didn't sell were listed on average 26 percent higher than the listings that sold. The market is constantly changing. If you find after your home is on the market that it's not receiving the interest you'd anticipated, ask your agent for feedback from agents who showed the property. Find out if similar listings in the area have sold recently. Did buyers who looked at your home buy other listings instead? The market will tell you quickly if your home is priced too high. THE CLOSING: Lower your price as soon as you discover it's too high so that you don't lose marketing momentum. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
| Tips on remodeling to sell By Paul Bianchina Q: We are planning to sell our home next year. We tried the easiest route to brighten up the kitchen: Painting the dark wood cabinets a lighter color, as we have a faux wood laminate countertop. We went with a two-toned effect, with the cabinets done in white and the doors and drawers done in a semigloss beige. It does not look all that great and the doors stick: What would you suggest? Also, the drawers are an odd rail system with a wheel on an arm at the back of the drawer that hooks into the rail above the drawer -- they always come off and stick horribly. Any advice would be wonderful and highly appreciated, as we are on a very tight budget. A: When remodeling to sell, always stick with colors and materials that are as universally appealing as possible. In the kitchen, I would go with all white on the cabinets, since the two-tone look is not something that will appeal to most people. It's hard to say why the cabinet doors stick. If they didn't stick before the paint job, my suspicion would be that you got paint on the hinges, or you built up too much paint in the area of the hinges that is binding the door, or you closed and/or reinstalled the doors before the paint was completely dry. If you are going to repaint the doors, I would suggest sanding them down to bare wood before you repaint -- putting another coat on at this point is probably asking for trouble. I would also replace the hinges. The old-style drawer slides you mention have always been a problem. I'm not sure those things worked right even when they were brand new! I would start by removing each drawer, then checking to be sure that the wheel, track and other components are well secured. They were often held in place by a staple or a single screw, so they work loose and drop out of alignment quite easily. Install more screws as needed to keep them in place. Over time, the plastic front wheels wear out as well, which also messes with the alignment and operation. You can order new wheels and also complete replacement slides from Rockler Woodworking and Hardware at www.rockler.com [1]. Finally, make sure you clean everything thoroughly with a degreaser. Q: I am installing an electric oven/microwave combo into my new cherry cabinet. The oven instructions suggest to slide it in and screw in the mount brackets. My question is: The oven weighs 230 pounds and I do not see the "face" of the cabinet supporting the entire oven, (no bottom support). Now, the oven manufacturer also recommends at least four inches from the bottom of the oven to the bottom of cabinet -- thus not being able to put a shelf in for support. What do you recommend? A: Typically, what the oven manufacturer is referring to is clearance between the bottom of the oven door and anything below it, such as the top of a drawer. However, the oven manufacturers understand that the oven needs a lot more support than just the cabinet face frame, and there will be a specific set of instructions packaged with the oven that shows where the supports should go. What I have seen over the years is either a plywood bottom in the cabinet that the oven slides directly onto, or a plywood panel with "two-by" lumber pieces on top that are installed in a particular spot so that they support the oven's feet. In addition, the oven is typically screwed to the face or inside edge of the face frame (or both) to provide additional resistance against tipping when the oven door is opened. With cherry or any hardwood, be sure you predrill the cabinets. |
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