What If You Have Deferred Maintenance But You Have To Sell Your Home?

If your home has serious deferred maintenance issues but you must sell you have a serious dilemma on your hands. Don’t kid yourself for a minute, the maintenance issues will cost you with buyers. Funds to create the changes needed might not be there or be hard to come by. This post will give you some ideas to help you get the most money for your home when you have to sell.

Common Maintenance issues:

Wood rot on eaves beams and decks - sand, stain or paint use wood repair filler if feasible.
Maintenance on the HVAC system – sometimes a good cleaning – filter change and service (usually under $100) will go a long way toward having the heat and cooling system pass inspection.
Water damaged cabinets (baths and kitchens) - replace floor of cabinets and/or re-stain or paint. This is not expensive and makes a very bad looking problem go away. Stains may be from household products and not water but replace them anyway. Water stains on front of cabinets from drips may possibly be polished away.
Remove items that cannot be repaired. Out of sight items cannot become an issue. If the pool heater is broken and you are not going to replace it, remove it. If the decorative fencing is rotten, get rid of it. Are most of your screens trashed? Get rid of all of them.

Worse Case Scenarios:

Don’t cover up or attempt to hide anything. This could get you sued after the sale.
If you can’t fix something obtain bids so that the repair cost number can be real – buyers will have the tendency to over inflate repair estimates. Having bids keeps the conversation on a level playing field.
Insurance – this is not a first choice for anyone but if your house has serious damage check with your insurance carrier to see about placing a claim for repairs.

Free Resources:

>Check with local vocational schools or community jobs organizations that may donate or offer low cost labor. They may do the work for a lower cost or no cost if they can use the property as a teaching project.
>Check with the city or town you live in there may be small grants or programs to help you beautify your property – any discounted or free products or supplies will really help you keep costs in check.
>Look for neighborhood organizations, they may have a yard cleanup day or even neighbors willing to donate labor/talent on a once year one time basis. For example Spring Clean ups.
>Many cities have a bi yearly or quarterly program to pick up large items, extra yard waste electronic waste etc. Use these to clean your property out to the best of your ability. Just being clean and neat can help your home look better cared for.

Home Warranty plan for Sellers: Check with your listing agent. In some areas of the country home warranty products are common place and buyers expect to receive this coverage when they purchase the home. What you may not know is that the plans have seller coverage as well. Usually on a per-diem basis while your home is on the market and in escrow. The rates for these plans are typically very reasonable ($50 a month) and can cover unexpected systems failures and problems while the home is being sold. Best of all they typically are paid out of closing funds and do not require up-front payment.

Don't lose thousands to save a little effort and a few hundred dollars. There are ways you can make any property look better and stand out to prospective buyers.

Top 10 Ways To Prepare your Home To Be Listed For Sale

How would you like to lose $10,000 or $15,000 on the sales price of your home before the first person ever sees it?  Yeah, probably not the way you wanted to start the sales process at all.

It happens every day in cities across the country. Someone puts their house on the market in a woefully inadequate state.  Oh sure they cleared off a counter top, or finally threw away the mountain of clothes in the laundry room that no one wears or claims to be theirs anymore but that was it. Well, okay you did vacuum the living room.  Not enough! Not even close!

Don’t think for one minute that NOT preparing does not matter and “buyers will look past it” or “You’ll get to it next weekend”.  Nope, the reality is that you just threw away 10K perhaps more.  In fact I would suggest that the most expensive cleaning service in town is a bargain compared to losing that much money just because you don’t want to clean.

Your local agent should be able to walk through the house with you and tell you frankly what needs to be done.  We offer all our sellers a 26 point Maximum Value Audit free of charge.  A written report that will detail exactly what needs to be done to maximize the value in your home. Sometimes it is not cleaning it is small repair and replacement items.

Examples of the items I have helped sellers with over the years include: tarnished, dull and worn out

looking door knobs – a small item but one of the first things buyers saw on an impressive set of double doors.  A secondary bedroom with a bad carpet stain, that we were able to find a remnant for at $139 this gave the room a new and fresh appearance. Another time we simply stained the boring gray concrete around a pool to match the existing wall on the property-  it really popped and we sold it to the first buyer. Don’t get carried away with unnecessary new weekend projects just stay focused on existing issues with the home as is.

1)      A deep clean. Corners, windows, tops of ceiling fan blades, grout and all ledges.     

2)      You are moving  so throw away things you aren’t going to move – do it now

3)      Box up items that you won’t use for the next three months (seasonal for example)

4)      Clean the screens on the windows or take them off if appropriate

5)      Straighten the garage – but it is okay to stack boxes in there you are moving

6)      Replace worn out comforters, doormats, decorative towels, shower curtains etc.

7)      De-clutter all surfaces especially baths and kitchens (less is more)

8)      Replace all light bulbs –remove most if not all family photos

9)      Touch up paint as needed – corners doors – heavy traffic areas

10)   Remove any dead landscape replace with simple plants or ground cover and mow lawn

While these items may seem obvious or small they are not. They will help protect the equity you have built up in your home. Buyers will discount for a poorly maintained home. Homes that do not show well do not sell quickly. This is all in your financial best interest.

If your home has significant deferred maintenance look for our upcoming article about how to deal with those issues when you don't have the funds to do so.

For more helpful home ownership, buying and selling tips please use the search feature on this blog in the right hand column or contact us on our website at www.PSagent.com

Vacation Rental Regulations In Palm Springs CA

Many buyers of property in Palm Springs purchase with the intention of renting out the property full or part time until they are ready to retire to it. This can be a very lucrative proposition. It is a great way to pay for a big part of your eventual retirement home or just a smart real estate investment. It is simply important to follow the city Rules on Vacation Rental Regulations.

In an effort to manage the temporary occupants of these vacation properties the city has established a hotline. It is 760-833-7988. If you are experiencing problems in your neighborhood with a vacation rental you can call to report the problems. In any non emergency situation please use this number rather than calling the police department.

Important Rules and Regulations for Vacation Rentals:

Occupancy limits based on number of Bedrooms a studio is 2 people, a one bedroom is 4 people, a 3 bedroom is 8 etc. Noise – no outdoor amplified music is allowed, You must register the property with the city via Short Term Vacation Rental Registration Permit (a one time $25 fee) and the yearly Vacation Rental Registration Certificate (an annual $60 fee). There are Transient Occupancy Taxes (TOT) due on rentals of less than 30 days.

If you are using a rental agency to manage your vacation property they should be willing to help you with this. If you are doing it on your own be sure to contact the city of Palm Springs to make sure you are in compliance.

You can visit the Vacation Rental department of the City on the Web here.

Finally it is important to keep in mind that for homes and condos located inside communities with Homeowners associations there may be additional restrictions from the association.

(While this blog is specifically about the city of Palm Springs most Desert Cities have similar policies and procedures for the management of vacation rentals.)

Own Your Own Vacation Rental Property in Palm Springs Start your search here

How To Choose Green Flooring Products

There are so many articles mentioning GREEN these days it can make you dizzy. One thing I have noticed is that when I read them they are usually full of generalities and short of specifics. I liked this article and wanted to share it with you since it had very specific info included in it. Hope you enjoy!

Going green with your kitchen floor brings benefits beyond making you feel good about your selection. Durability is the biggest prize. Think of homes with wood floors that may be nearing a century old....to read the rest of this story click on the picture below:

Ecofriendly Kitchen: How to Choose Flooring

Consumer Financial Protection Bureau Can Help You With Your Credit Report Errors

From our friendly lender Dan Dobbs: useful information on the new consumer protections put into place by the Consumer Financial Protection Bureau....

The Consumer Financial Protection Bureau (CFPB) now allows consumers to “directly dispute” misinformation by directly uploading their complaints on line.
Complaints can be fact checked effectively, and resolved quickly.

And the CFPB is handing out million dollar fines and certifying class action lawsuits against violators.

Consumers now have a “hammer” to force the three credit bureaus and credit vendors to clean up their records.

To begin the complaint process go to their website(CFPB).
The CFPB estimates that 55% of all credit reports have significant inaccurate information.

Below are the most common examples of misreporting.

a) Information is “not creditor’s

b) Belongs to someone else, identity theft, fraud, etc.

c) Account terms are reported wrong

d) Creditor name/info, balance, payment, etc.

e) A ccount status

f) Paid bill on time, account closed, etc.

g) Wrong date of birth, address, etc.

h) Inaccurate public records (Bankruptcy, judgments, etc).

i) Reinserted (previously deleted) information

j) Credit Reporting company's investigation was flawed



To dispute an issue, the consumer must first order a credit report from each bureau and file a dispute for each derogatory item with the specific credit reporting bureau.

Once the bureau has reviewed the filing, they must (within 30 days) inform the consumer the results of their investigation.

Assuming the investigation is negative, the consumer should appeal to the CFPB for relief. Continue reading this post on Dan Dobbs site. And Don't forget if you have questions on your mortgage - are interested in refinance or even a new mortgage Dan is really great place to start. Give him a call at 949-250-3981

Interest Rates Lower Than Ever

[caption id="attachment_2256" align="aligncenter" width="170"] History Of Interest Rates[/caption]

With Shopping for good deals being the focus of the day I thought it was pertinent to bring up our historic low interest rates. Sure we have heard for some time now that interest rates are low, however, It is one thing to hear it but to see this chart it really brings it home.

The best way to take advantage of these great rates is to be pre-qualified with a a good lender. If you need a recommendation don't hesitate to call us at 760-408-5300 or visit our home loan page on our web site.

Is Your Short Sale Legal?

Short sales - selling for less than you actually owe on the mortgage is legal and is very commonplace these days.  However, there are a few pitfalls you will want to avoid. The summation of an article, that originally appeared in the Orange County Register points out a few common scams that are taking place.

Orange County Register: Short sale fraud “heating up,” expert says A panel of short sale experts presenting at CALIFORNIA REALTOR® EXPO 2012 in Anaheim last week said that “fraud is heating up like a wildfire right now ...” and “we’ve got to be aware that this fraud is changing directions, jumping containment lines.”Among the most common forms of fraud are:

Flopping: non-arm’s length transaction, side agreements, and false information.  Scammers arrange to buy a home at an artificially deflated price intending to flip it immediately at its real value.

Non-arm’s length transactions:

The buyer in a short sale is related to the seller by blood, marriage, or some type of business or personal affiliation.  This is typically arranged by an underwater borrower to regain ownership of the property free from the mortgage debt.

Side agreements:

In addition to payments included in a lender’s “approval letter,” the buyer and seller have side agreements to pay off junior liens, short sale negotiators’ fees, or other third-party fees.

False information:

The transaction includes phony details in the closing settlement statement, or HUD-1, to hide buried costs and fees.
Read the full story as printed in the Orange County Register

For more information on Short sales or homes for sale in the Palm Springs area be sure to see PSAGENT.COM

Identity Theft

Another Reason for Title Insurance...
Identity Fraud

We read all about it. It's in the newspapers, on the news, and on the internet. High profile people becoming victims of identity fraud. You think it could never happen to you. Right?

Think again. Identity fraud can happen to anyone."Identity fraud" is one of the fastest growing types of financial crimes in America with almost a 1,000,000 victims each year! These crimes are mostly against average working people. I even know a lawyer who it happened to and even he struggled to clear it all up. Experts estimate the cost of this type of crime is over $100 billion annually.

PROTECT YOURSELF FROM IDENTITY THEFT! Identity Theft occurs when someone wrongfully uses your personal identification to obtain credit,loans, services, even rentals and mortgages in your name. They may even commit crimes while impersonating you!

TIPS FOR BEATING IDENTITY THEFT:

Be careful of "Dumpster Diving" Make sure that you do not throw anything away that someone could use to become you. Anything with your identifiers must be shredded before throwing away..

Be careful at ATM's and debit card machines. Onlookers can get your "Pin Number" and get access to your accounts.

If you are still using paper checks get new orders of them delivered to your bank not to your home address.

Do not put checks in the mail from your home mailbox.Drop them off at a U.S. Mailbox or the U.S.Post Office. Mail theft is more and more common. With color printers and laser printers it is easy for people to forge new checks or even change existing ones.

Cancel all credit cards that you do not use or have not used in 6 months. Personally I ask my bank for a new debit card with a new number each year. You'd be surprised at the things you set up on auto pay and forgot about. Plus, who knows who else might have the number.

Put passwords on all your accounts and do not use your mother's maiden name. Make up a fictitious word.

To avoid problems with mail theft get a post office box or a locked mailbox,if you possible.

Do not carry any identifiers you do not need. Don't carry your birth certificate,social security card,or passport,unless necessary. If you have cards credit/membership/ID cards you won't be needing for a period of time leave them in a safe place at home.

Memorize social security numbers and passwords. Decline to give your
social security number for routine office visits to doctors, dentist vets - they always seem to ask but they do not really need it.

Do not put your credit card account number on the Internet unless it is encrypted on a secured site. Just because a company has an internet site does not mean you can trust them with your credit card information. Use trusted providers.

Monitor all your bank and credit card statements from every source every month. Check to see if there is anything that you do not recognize and call about it right away. Don't put it off. Often times there are time limits on reporting suspected fraud.

Try to review your credit report at least twice a year. If you see anything that appears fraudulent, immediately put a fraud alert on your reports.

REAL ESTATE: Your title insurance policy will protect you against hidden risks that may not be discovered prior to the issuance of your title insurance policy. Probably the best feature of title insurance is that it pays any covered loss sustained from such a defect in your title. The one time premium you pay covers you and your heirs for as long as you or your heirs own the property.

Is There Really A New Tax On Real Estate Sales?

Well in a word - YES. But wait don't panic it may not even apply to you. The Medicare tax, which goes into effect on January 1, 2013, will impose a 3.8% tax on the net investment income of joint filers with adjusted gross income over $250,000, and single filers with adjusted gross income over $200,000.

So you can stop reading right here if you are not grossing over that $200/250K mark. However, if you are going to be selling Real Estate and are going to make a profit over the exclusion, currently $250k if single or $250K married on your primary residence it will add to your gross income, see below. Remember there is no exclusion for second homes or investment properties. Thinking of selling an investment property soon you may want to close before 2013.

If you do fall into the above $200/250K gross income the new Medicare tax will apply. You figure it on the adjusted gross income (this is the figure on the bottom of the front page of IRS Form 1040), which includes interest, dividends, capital gains, wages, retirement income and income from partnerships and small businesses. According to the IRS site it appears the tax will also apply to dividends, rents, royalties, interest (except municipal bond interest), short and long-term capital gains, the taxable portion of annuity payments, income from the sale of a principal residence above the $250,000/$500,000 exclusion, gain from the sale of an investment property or a second home, and passive income from real estate and investments in which the taxpayer does not materially participate.

Each tax situation can be a little different and it is always advisable to seek professional help. We Recommend Greg Barton CPA use the link to their site or call them at 760-969-6499.

So What is A Preliminary Title Report All About?

When buying real estate you will be present with many documents that look unfamiliar to you. Your agent should be able to explain each one to you and why it matter. Here is an outline of what the Preliminary Title Report Contains and the things you should look for in this document.

Vesting– Make sure the names on the Preliminary Title Report are the correct names and that the property is the same as the property on the purchase contract.

Taxes and Assessments-  In addition to looking for special tax districts you might not have been told about you can look for an exemption or classification designation that would change the tax amount as a result of the sale. It is common, in California, for properties to be reassessed upon sale.

Deed of Trust –  To make sure all debts on the property are being paid off in your transaction be sure all paid off Deeds of Trusts are reconveyed. Upon proof of payment and/or an indemnity, the title company may insure around the encumbrance.

Identity Matters – As a buyer you will provide a  ‘Statement of Information’ which can clear up identity issues that may arise. The seller will have to do one as well. If there are judgments and liens that belong to the party in question and have been paid then a release or satisfaction must be obtained and recorded or filed to eliminate the matter.

Pending Actions – A civil action affecting real property generally will have to be dismissed before title can insure. A divorce or probate doesn’t have to be finalized but special requirements may exist. Check with your Title Rep. or Title Officer for more information.

Joint Use Matters – Driveways, common walls and most easements may prompt Lenders to require a joint maintenance agreement. The preliminary title report will show such agreements if one is on record.

Extended Coverage Matters – If a physical inspection of the subject property disclosesencroachments, lien rights, or other matters, these must be addressed before the lender will close. An extended coverage owner’s policy may be requested and a survey of the property will be required. Although this type of situation would delay your closing it is imperative that you get it done before you let the proeprty transfer.

Legal Description - The legal description should always be compared to the legal descriptionin the purchase and sale agreement to be sure that all the property being conveyed has been included in the preliminary title report. I see this most commonly when there has been additional acreage added to the property or multiple buildings exist. In anycase be sure that all property is included in the legal description.

While basic the above gives you a great start on understanding why this document is important and what you need to do with the information contained in it.

 

Water Wise Landscape

[caption id="attachment_1525" align="alignright" width="150" caption="Planting For The Sun"][/caption]

The Coachella Valley Water District is sponsoring three workshops to help you learn about efficient landscaping in the Desert.

Dates and Times:

November 18 8am to Noon OR 1pm-5pm
and Saturday November 19th 8am to noon

Costs is $20 and includes refreshments, a potted plant and a landscaping book.

Where:
Held at the UC Riverside Graduate Center(75080 Frank Sinatra Drive)

Register at www.CVWD.org

This Month In Real Estate October 2011

[youtube http://www.youtube.com/watch?v=hmkm_tN7Zq0&version=3&hl=en_US&rel=0]

Canadian Citizens- US Loans For You Available Again!

Good news for Canadian buyers of US real estate. Our good friends at Pacific Premier bank are once again able to offer home loans for 2nd home purchases in the USA.

Download the flyer

The details of this offer are as follows:

5 year fixed at 4.65% with no points to be paid. Adjustable yearly after that.
There is also a 7 year fixed option at 4.875% with no points to paid.

Downpayment requirements:

35% down payment for Single family homes
45% down payment for Condos

For more information please call Leah Verigan at Pacific Premier Bank
760-969-4557 or  LVerigan@ppbi.com

Top 3 Home Improvements - This Month In Real Estate

[youtube http://www.youtube.com/watch?v=PaRKK8BOzUY&version=3&hl=en_US&rel=0]

We often hear how important it is to get all the facts and check everything out when BUYING real estate but what about selling? A commonly overlooked component of SELLING your home is updating, staging and tweaking your home to appeal directly to buyers. Most of these items are simply and only require a little effort - but can pay off in a big way, your bottom line.

For more information on selling your home visit our Sellers Page at PSagent.com

The Top Whatever.......

Every year Money Magazine publishes their list of the best places to live.  At first glance it seems pretty cut and dried but the deeper you dig into the list the more confusing it can be. There are so many factors from housing, weather, jobs, cultural activities.  Pretty soon you won't really be convinced anywhere is perfect but it is still lots of fun to play with.

This year there is an interactive sort of menu where you can choose your state and then compare communities close to you. I provide the link here so you can play with it yourself and have some fun.

What is the best thing about where you live?  For me, in Palm Springs,  it is the small town feel combined with the perpetual sunshine. Enjoy.

Happy Canada Day!

Palm Springs' is a second home to so Many Canadians we just want to wish them HAPPY CANADA DAY today!

Buying and Selling US Real Estate For Canadian Citizens[youtube http://www.youtube.com/watch?v=Z__Ln93AiXw&version=3&hl=en_US&rel=0]

May Sales Stats In The Coachella Valley

As if low interest rates were not enough reason to get serious about buying look at these numbers! 

Exceeding all expectations the May 2011 real estate sales numbers reflect a growing trend. Over 900 homes sold - AGAIN!  This time 911. Once again a new  milestone - breaking the 900 mark for  homes sold in one month for only the third time in the last 2 years! You will also be surprised to learn that while 1274 homes came on the market in May 2011 another 1286 moved into escrow by going under contract.  Essentially wiping out the gains of the new homes listed.  Supply and demand seem to be leveling out.

More good news as the median price has risen 23% since May of 2009. While prices are still low and pockets of resistance still exist there is no question that exceptional values are becoming a little more scarce.  In general we can say that for homes in great condition prices are headed up not down on average.

Most importantly the months supply of inventory is dropping like a stone! Month supply of inventory is figured by assuming that the current sales rate continues and no other home is listed for sale. That would mean we only have 3.8 months inventory left!  Not only is that the lowest in more than two years but it represents a steady decline since December of 2010 when we had a 10 month supply. These are numbers that can't be ignored. A change is in the air. If you are looking to buy real estate it would be hard to beat the timing of this market.

UPdated Mobile Search Site

IPads, Tablets, Smart phones - today many of us access the internet with equipment other than a traditional computer. I am pleased to be able to offer a tool for your mobile device that will make home searches easier when you are on the go. Try it out today.

http://palmsprings.realbird.comScan me with your smartphone to bookmark
our mobile website at http://palmsprings.realbird.com

Cool Your Summer off with Hot rebates From SCE

Did you know you could get a $300 rebate just for installing an evaporative cooling system? Just in time for the hot weather Southern California Edison offers this great deal.

For the Evaporative cooler there are some rules and they are:

1. Be permanently installed.


2. Have UL recognized electrical components.


3. Come with a water quality management system that provides positive removal of sump water on a regular interval (a bleed system is not allowed).


4. Have a single duct or multi ducted distribution system.


5. Have either:
   
   
   
   1. A multi-function manual control switch which offers high and low fan speed, pump on or off and the unit control of on or off. When a multifunction manual control switch is used, pressure relief dampers are not required.
   
   
   2. A thermostat specifically designed for evaporative coolers which automatically controls the unit operation based on the indoor temperature, fan speed, and pump operation. The automatic thermostat must be mounted remotely from the cooler. If new pressure relief dampers are installed, they must be indicated on your proof of purchase.

Get more Details on  the SCE site

While you are on the SCE site be sure to check out their rebates on everything else like window unit air conditioners.

Thinking about solar energy? Find out more about SCE solar energy programs.

Save money up front and  in the long term.  Ask me how I can save you even more no matter what state you live in!

Stay Cool - Save Money and Have Fun this summer! 

Mobile Site for Palm Springs Real Estate

Now you can  See my listings on your mobile device   

It is no secret that many people spend all day with mobile devices not desktops. Now you can easily search listings with this custom site designed for your most readily available device.

Enjoy!

(Note: The site won't look as good on your desk top unless you are using google chrome as your browser)