Wednesday, September 3, 2014

Expert Advice

EXPERT ADVICE...
as featured in the Auburn Journal, Gold Country Media 
Colleen writes this advice column on a regular basis to give information on how to deal with a variety of Real Estate Issues. 

Q. Our house isn't selling.  We priced it 10% higher since we understand that was last year's appreciation.
A. Statistics can be confusing and misleading. The media presentation and the interpretation of that information does not take into account all areas and that fact that location and condition are important factors. Trust your  Realtor to help you to apply the right aspects to your property.  If your home is in good condition you may consider a price adjustment as it is the one thing you can change.  Published July 14 2014 
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Q. Can we depend upon fence lines to be the boundary lines of a lot? 
 A. They could be but unless the lot or acreage is in an established subdivision, do not assume the fences are the lines.  If the corners are not marked with an official pin, hire a licensed surveyor to search for and mark them.  If they are missing, it may be necessary to pay for the recording of one or more of the mussing pins.  It is well worth the cost to save any future issues that may arise with contiguous land owners. Published June 11 2014

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Q:  What is the secret to 'flipping' properties?
A: 1. Buy at an under-market price. 2. Obtain inspections to determine condition. 3. Get professional opinions on cost of work and materials to complete. 4. Consider the neighborhood. 5. Consult with a Realtor about value of the property before and after completion. 6. Consult professionals regarding design and materials. 7. Expect surprises-factor in a pad to fund the unexpected. As in all ventures, timing is everything.  Good luck to you.   

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Q: What is the most important aspect of country property?A. There are several but I believe that the presence of water and sewage disposal are prime. It is great to have the independence of country living but there is a cost; in the long run,perhaps no higher than city property fees but you must be diligent in determining the source and production of the water and condition of the septic system and leach field. Using an agent experienced in country property is good insurance. January 2014
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Q: Do you suggest getting home inspections on a regular basis?
A: I think that it is wise to have pest inspections every couple of years and if you have a septic tank every three years or so depending on the number of users. Addressing any problems early protects your equity and there is less chance of unwelcome surprises if you decide to sell. Published November 22, 2013
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 Q: What inspections should we get before upgrading our home?
 A: A pest inspection is a must.  That will reveal any existing problems or conditions that may lead to them.  If you do work first it may need to be repeated depending on discoveries.   Published Nov 1, 2013
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Q: What determines what real estate brokerage would be the
    best to use?A: You can start with the BRE (Bureau of Real
    Estate) to check for sanctions or infractions; membership in a recognized
   global referral network; manager on site; active community member, longevity,
   and of course, the word on the street from your sphere of friends and
   professional contacts.  Published October 16, 2013.
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Q: What is entailed in owning country property?
A: A certain independence and sense of privacy
can be yours but not without effort!  Being surrounded by nature is a joy
but trees need attention, grass needs trimming, fencing needs maintenance,
roads may be your responsibility.   All of this takes time, energy and
money. When this lifestyle loses its appeal, it is time to move to a more
manageable situation. Too often we see neglected places that need new owners
with the enthusiasm and where-with-all to maintain the dream of country living.
 I can help you to get in...or out... of the country!  Published Oct. 4, 2013.


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Q: We are thinking about buying a condo but find the HOA fees are high. Thoughts?
A: It is certainly an expense to take into consideration, for both your budget and your loan qualification to make the purchase.  I would advise you to carefully examine the HOA (home owner's association) history and determine if the repairs and maintenance are being
currently addressed. Usually they include the upkeep of all of the exterior,
roof, and grounds. When you consider the cost of maintaining a stand-alone
home, you would very possibly be spending that amount or more to protect your
investment.  Condo living offers you more free time in place of caring for
your home. I strongly suggest that you become a board member or at least attend
the meetings to ensure proper attention to your home and community. Published Sept.19, 2013.


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Q: What is the best way to preserve equity in our home?
A: To be diligent about the maintenance.  It is more important than updating. Everything deteriorates over time and having a budget to pay for upkeep is essential when you own a home. Analogy: You keep thousands of dollars in a box with a hole in the bottom; dollars leak out and are lost forever until the box' contents are worth much less that when you started. Take care of your asset!  Published Sept 5, 2013.

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Q. Is this a good time to invest?
A: There is never a bad time to invest!  However, the choice of the investment is key. With Real Estate, buy and hold has been the mantra of many successful investors.  In today's market the method of buy-improve-resell has been on the forefront,especially in the lower price ranges of the high$100's-to the $300Ks.  With the favorable interest rates, home buyers have taken advantage of these refurbished homes with enthusiasm. Diversification,as we have be advised, bears merit so that the ' all the eggs in one basket' syndrome will be kept at bay. Consulting with a financial professional is your best insurance!   Published August 21, 2013.     
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Q: Shall we wait until the top of the market to sell? 
A:  Well, of course, the answer to that is 'yes'. The problem is knowing when that is!  Many of us regret that we missed the last 'high' in 2005/6. Remember that if you sell and buy in the same market, you benefit.  Timing is not really a matter of skill as much as it is luck.. Greed (a human quality!) may result in fuzzy thinking. Making your decision to sell should take into consideration other aspects of your life and needs. Published August 9, 2013.

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Q: Can I depend on my Realtor to be helpful to me after the sale?
A: If your Realtor is dedicated to service, yes.  She/he is a great source of referrals for all matter of home care & the community . July 12 2013

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Q: We have house dogs.  Will that be a problem when we sell?A: Not if they are confined when you are not present. You don't want to risk the liability of your dogs reaction to strangers if you are not home nor delay or eliminate a showing because of their presence. It is in your best interest to make showing you home as easy as possible so do have a plan for their containment. Published July 1, 2013.
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Q: What is involved in home ownership? A: For most of us, it will be the largest investment we ever make!! The down payment and the monthly payments are only the beginning. Be prepared for property taxes, mortgage insurance, and the biggie: maintenance! It costs time and money to own and maintain a home. If you are unable or unwilling to "keep up with the up-keep", consider investing some where else and be a contented tenant with less responsibility and cost. Ownership is not for everyone.  Published April 23, 2013.   
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Q. Why is it so difficult to get a loan now?A. The guidelines for obtaining a loan are more stringent now which protects all of us.  It may preclude owners from getting into a situation where they cannot make their payments. If buyers have more equity in a property, they are less likely to default on their payments. Saving money for a home early on is a good plan.  It not takes money to buy, there are also ongoing costs to maintain to preserve that equity. Published June 4th, 2013

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Q. We are updating our home deck repair, paint, etc. any recommendations?
A. Yes, please obtain a pest inspection to identify any problems or concerns. It may be money wasted if there are deteriorating conditions that should be addressed before the "lipstick" goes on! Take it a step further and order a whole a whole house inspection to ensure there are no other issues that require attention. Protect your investment by being pro-active. It will be money well-spent!  Published April 9, 2013
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Q. What is the situation with additional living quarters attached to a home? 
A. It is necessary to get a permit for it. If it is complete with kitchen, there is a cost of $10,000. The thinking is that it accounts for additional residents using all the infrastructure and being responsible for their share of the costs associated with living in the community.  Published March 12, 2013. 
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Q. What can I do about the deferred condition of my neighbor's fencing, etc?
A. Unfortunately this is a sensitive situation. If your area has CC&Rs there may be recourse through them since all residents are obligated to certain standards. If not, approaching them with some solutions/suggestions of any labor the neighbors are willing to give and making the point that the condition compromises value of not only their property but everyone's in the vicinity. Good luck. It is so frustrating that their negligence affects others.  Published Feb.12, 2013
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 Q. What about the permit process for additions/changes to property? 
A. Two words!! Get them!! It will NOT be worth the perceived value of lesser property tax and saving the cost of the permits not to obtain them. Although you may be willing to live illegally, when it comes time to sell or even make additions yourself, it can create a hassle and incur costs that will be frustrating and time consuming. The upshot may be a loss of opportunity to sell at an opportune time. Published Jan 29, 2013
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Q:  What is your opinion of the current real estate appreciation?
A:  In some price ranges (under $400,000) prices have increased due to the low inventory resulting in fewer choices for buyers; the border has been crossed into a seller’s market. A true assessment would require knowledge of the amount owed on a property as opposed to the selling price. Many homeowners had been caught up in the “feeding frenzy” and refinanced their homes and therefore put themselves financially in harm’s way when the market “corrected”! While they may sell their property at a higher price than a few years ago, the proof is the ratio of the debt selling price to be considered appreciation. Buying today holds a bright future for those who invest if the market continues to perform as indicated in the last few months. It is important to remember that the main reason for buying a home is for the security and emotional satisfaction of ownership. It should not be thought of as a bank account or a retirement vehicle as we have painfully learned. Published Jan. 15, 2013
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Q. What can we do about our neighbor’s excess of vehicles in their yard?
A. If possible, approach them with a solution; storage facilities, other locations or tax
eductible donation. Their ‘collection’ is a detriment to not only the value of their property but
that of the entire neighborhood-disrespectful at least. A last resort, contact Placer County who
may issue a citation to relocate the eyesore. Published January 1, 2013.
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Q. What is the most important home improvement a homeowner can make?
A. One of the most important is the addition of dual pane windows. Next would be insulation.
PG&E may be offering rebates or perhaps free insulation in some cases. Creature comfort and
lowered utility bills will most likely result!  Published December 18, 2012.

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Q. What is the most important preparation for selling our home?
A. strongly suggest inspections to make you aware of the condition of your home: a home inspection by a qualified company; a pest inspection; if you have a well, a test for potability and including the assessment of gallons per minute would be ideal; and a septictank pumping if you are not on a public sewer. These inspections will most likely be required when there is a buyer in the wings but they may fly away if a negative discoveries are made that dull their enthusiasm. So determine the real value of your property by knowing what needs attention, replacement, and repair. Being pro-active will more than repay you for the cost of this vital information. Published 2012.

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Q. Our home sold in two days. Shouldn’t the Realtor® reduce the commission since little time and work was involved?
A. You are so fortunate! No more showings and you can move ahead with your plans. You are for paying for representation (not necessarily associated with time on the market) for experience, expertise, on-going negotiation, and the liability associated with real estate transactions. Enjoy your good fortune! Published September 17, 2012.
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Q. What do you mean by ‘curb appeal’?
A. It is all about first impressions. As you drive by a home that looks inviting and cared for with attractive landscape your reaction is probably positive and appreciative. If you are currently looking for a home to buy that impression extends to near-by homes as well. If they look neglected and forlorn, it has a negative effect on observers and, in fact, reduces the value of not only those homes, but the neighborhood in general. Being a good neighbor applies not only to person relationships, but by also being respectful to others by making the effort to maintain their property in the best possible light.  Published May 5, 2012.
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Q. Will we ever see home equity again?
A. Well, I’m counting on it! In the meantime home owners can make sure that their homes are kept in the ultimate state of repair; maintenance of the structures, water systems, sewage (if rural), and landscaping, i.e. sweat equity!! Updating may be something you would enjoy while you are still in the residence. Do consult with your realtor® or other professional(s) about your choices, so that you invest in items that will result in the most advantage in your situation. Just granite countertops may not be your best choice!! Published May 14, 2012.

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Q. What is the best way to get qualified for a loan?
A. Very timely question! It is of utmost importance that you speak and meet with a local,  trusted loan consultant. If you must use the internet, do so only for only for getting a general idea for the price for which you are qualified. The best connections are made from referrals from friends, family, and or your Realtor®. In this small town environment, word- of- mouth is invaluable. Call me for my referrals to trusted advisors. Published April 23, 2012.

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Q. What does ‘as is’ mean when a home is being marketed?
A. It means that the seller does not intend to repair or replace any items. It is incumbent
upon the buyer(s) to obtain inspections of any and all aspects of the home to determine condition
 and base their decision to buy or not on the results of the inspections.  If flaws of major consequence are discovered it would be worthwhile to bring them to the attention of the seller and request a fair solution. Published 2012.
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Q.  What is the seller’s role in a short sale situation? 
A. The seller(s) responsibility is the same as if it was a traditional sale as they will be signing documents throughout the transaction until the transfer of title. The bank is ‘in the wings’ and will determine whether they will approve the sale, accept market value, rather than what was originally agreed upon, and will determine the listing price. A negotiator will be appointed by the bank to act as a liaison with the Realtor®.

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Q.  What can I do to investigate a property in which I have an interest in buying?
A. You may go to the Placer County Community Development Resource Center at 3091 County Center Drive ( off of Richardson at Bell Road) to obtain information through the departments of permits, environmental health, planning, and building. The staff there is most helpful in researching aspects of properties, all of which are public information.  A knowledgeable Realtor® can give you guidance in this process. It is important to perform due diligence to protect yourself from surprises and unknown factors. August 18, 2011
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Q. We have a limited time in which to buy. Should we take advantage of the short sales?

A. 'Advantage' is a matter of translation and circumstance. Since you have a specific time frame, I would advise you to deal with traditional sellers or possibly bank owned (REO) homes. Short, in 'short' sales refers to the lender taking short pay, and has no reference to time frame for completion which can be months and may not result in ownership in some cases.  Published April 11,
2011 Auburn Journal

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Q. Do you think that some owners are unfairly taking advantage of the market conditions?walk away-or as they say, affect a “strategic” foreclosure, even though they have no hardship and do have the ability to pay. No one ever promised continuing appreciation of property. If the home value would increase over the mortgage amount, would these same people notify the bank that they now want to make a higher payment because of the appreciation?  I think not!!  The cost of these actions is high; a cost that we bear.

A. It appears that there has been manipulation of the market in some cases.  Only those who have a genuine hardship should be approved for a short sale. Unfortunately,anyone can February 09, 2011
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Q. What will the stimulus package do for the real estate market?

A. If it goes as we understand, it will provide lender funds that are currently rather limited.  With the interest rates being very reasonable and home prices continuing to decline, more buyers will be able to be home owners. Of course, job development would be a boon to those who have lost theirs and enable other businesses to thrive with the infusion of purchases made by working people.  Have faith. We are a creative and industrious nation of doers! 
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Q. We are ready to downsize from our 3000 SF family home to an empty-nester style. Should we wait for the market to rise or
sell now?

A.Selling and buying in the same market can be a good idea. Best scenario: Groom your home to the highest level possible within you financial and physical ability. Buy a home that may need cosmetic updating but will be an attractive price. There is effort involved in this venture but can be rewarding. Call me or your favorite Realtor* for further ideas.

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Q. If we list our home for sale, do we have to consider bank-owned properties to be our competition?

A. Buyers definitely have a high interest in bank owned property due to the good deals that are available. However, most of these homes have deferred maintenance or other issues. There are still buyers who will prefer not to deal with these types of homes. If yours is in impeccable condition and priced for the market, you have a good chance to sell it. Good luck.
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Q.Should we apply for a short sale?
A. If you are qualified, i.e. no assets, can't keep payment commitments, have health issues, loss of employment, divorce and perhaps other reasons. What doesn't qualify is lack of incentive to pay your mortgage due to loss of property value in the current market. To obtain approval from your bank/mortgagor to take less that you agreed to pay must be based of serious financial distress. It is not a panacea for the obligated to become unobligated. Call your lender before you are in a crisis situation.
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Q. What is your opinion of the current market?
A. It is a time of "Improved Affordability". While many of us cringe at the loss of value, this period offers an opportunity to those who earlier were unable to buy-to be homeowners. Communities are stabilized and diversified since teachers, law enforcement, and others who serve us so well, can live and be involved in the communities where they work. Let us appreciate their good fortune.

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Q. I am buying a bank owned home. Some items are missing since the contract was signed. Do we have recourse for compensation?
A. The rules have changed in this real estate climate. When the seller is a bank it is very difficult, but not impossible, for a buyer to receive a credit for items that may have "disappeared". I suggest to buyers that they take photos of all aspects of the property for proof of what was present at the time of sale. In a "regular" sale, the contract protects the buyer by placing the responsibility of "property to be in the same condition as it was on the date of acceptance" on the seller. That is a part of the risk factor when purchasing bank-owned homes. Caveat emptor: buyer beware!

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Q. What is the ideal home?
A.  There is no one ideal home for everyone.  That would be too easy!! But the following may be some elements of a home that would have wide appeal: One story-suits those that can’t or don’t choose to have stairs. Manageable yard that affords some privacy.  Major components in working order. Location near highway/freeway access. Desirable school district (important for resale even if you are childless). Close to services such as markets, medical care, schools, etc.

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QDo you think that well water is safe to drink?
A. Yes, but it is important to know the quality of the water. I strongly suggest that a sample be taken to a local laboratory twice a year to determine quality that will ensure that you, family members and guests are protected for any contamination that can occur in well water.  Call me for information on procedure and local laboratories.
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Q. I have no mortgage on my home.  Do I really need expensive homeowner's insurance?

A. There are several local homeowners that feel their insurance policy was well worth the cost. In the recent firestorm tragedy, there were uninsured homes, owned outright, and had no mortgage company that demanded a policy be in place. Any equity in those homes is gone with the wind literally. That is the real tragedy. To recover from such an event may be impossible for some.  RENTERS! Be aware that for little cost, your personal belongings can be insured so you won’t be left with no recourse and perhaps little resources in the case of loss due to fire, flood, theft, etc.  This generous and supportive community has, and continues, to offer help, supplies, and money to the victims. It is an ill wind that blows no good.

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