Real Estate and All That Jazz

Many moons ago when I was growing up, I never had a brand new bike--always a hand-me-down from my sister or my cousin. Roller skates and ice skates were shared between siblings and of course there was one black & white T.V. sitting in the living room along with one phone and a "record" player for the entire family. (I think I may be dating myself). I don't recall feeling deprived about the lack of material goods. After all, we went to the Library for Children's hour on a regular basis, walks in the park, outings to the zoo and beach, oftentimes followed by my favorite treat--ICE CREAM!  I was fortunate to have a large, loving family and even though we weren't rich, the house was always filled with laughter, love and the sweet smell of my mom's coffee rolls. Little did I know I had a very special childhood.

Having lived in San Diego for the past 13 years, I have noticed a disturbing trend, and one that is prevalent in upper middle class households across the USA. Kids have so much STUFF. As a real estate agent, I am in people's homes on a regular basis. In one home I viewed 2 months ago you entered a living room with NO FURNITURE, just wall-to-wall plastic toys. I was baffled. I couldn't imagine that 20 kids would not have enough to play with. They had 2.

I have friends who have 3 kids. For every birthday and Christmas these kids get iPods, XBoxes, computer games, walkie-talkies, cell phones, and other electronic gadgets I have never even heard of. More and more and more. The home looks like Mission Control, with all the wired up, fired up devices of 5 people. They typically spend all their time inside watching TV, movies, restaurants, bowling alleys and the occasional Theme Park.  I don't think these kids ever go to a library, or have a "Summer Reading List" (remember those?) What will the end result be? A bunch of spoiled brats who are academically inferior, with poor communication skills to boot. And parents with mounting debt and a whole bunch of STUFF.

I suppose the slow real estate market has made me prioritize my spending habits and I can honestly say I really don't need as many material things as I thought I did. I find myself defending my little flip phone (free) and mini laptop I use for travel as opposed to an iPhone or iPad. It would be easy to spend hundreds of more dollars monthly on technology, while I find I can be very productive with alot less.

So to get back to the main topic: Are kids getting more STUFF to make up for the quality time their parents don't have for them? Are we doing our kids a major disservice by taking away their creativity and filling it with STUFF? Is this trend going to change as folks downsize or even lose their homes and the economy takes time to recover?

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2. Working with a few Short Sales lately, I discovered a pattern that made me take notice.

Here you have a Seller who is facing losing their home. The Lender has agreed, the SS package is in, and the Buyers are convinced they got a raging good deal. Let's stop here and examine the particulars.

The Lender has done a BPO and come up with a figure that no one is yet privy to. The buyers have put in an offer of $410K but then decided to recant and come in lower. Why? Well, it seems that the Inspector they hired has decided there is "foundation damage" due to the hairline cracks in the plaster walls (a characteristic of every single home of this vintage). A "foundation expert" comes in and of course there are old posts and sills (house was built in the 40's), and although there is no immediate danger he "suggests" some supports and beams be replaced for more stability..... to a tune of $8500. The owner had a thorough inspection 4 years previous and there were no foundation problems found.

The roof was older, but still serviceable, and the Buyers claimed they need a new roof. A "roofing expert" came in and declared "Oh my, this roof is older than Methusela and needs to be taken off immediately and replaced". NO LEAKS were found anywhere. 4 years previous, the same owner had the roof inspected and was told that it was old but it still may last 5-8 more years. In other words, it is still quite serviceable.

So now Buyers feel justified to lower their offer to $380K.

The Buyers know they are purchasing an older home. They also know the owner is in financial hardship of some sort or there would be no Short Sale. The Inspectors, and Roofing and Foundation Contractors need work. Is this Buyer being demanding? Sure, I would be too---he doesn't want to end up in the same position as the owner. Move on to another Buyer? Perhaps, but this is the only offer. And the property fell out of escrow once at $436K, because that Buyer found another home. 

The point is, do you see what is happening here? It's another perfect storm---desperate owner, demanding Buyer and unsavory inspectors/contractors bending the "truth" for the benefit of the Buyers. They see an opportunity, a ~loophole~ where they can manipulate the sales prices.

The Lender may counter-offer, but if they can't get a Buyer to pay what THEY think the property is worth, how is foreclosing going to solve this problem? Put the house back on the market? They have the same exact Buyer issues, maybe even worse, because REO's may fetch even less money (considering the costs of foreclosure.)

This artificial manipulation of the market is happening everywhere and I hear other agents discussing similar scenarios. My fear is that this is another Perfect Storm and is hindering recovery of the industry. Any thoughts?

Insecure about Security Deposits in San Diego CA.?

Legal definition: A security deposit is money a landlord collects from a tenant in case the tenant fails to pay rent or damages the unit. The number one issue in my experience is the interpretative difference between "normal wear and tear" and "damages".

I can honestly say that 95% of tenant issues and law suits have to do with the returning of the security deposit. What are security deposits and why do so many problems arise when tenants move out?

It is easy to get into legal trouble over deposits because they are strictly regulated by state law and sometimes also by city ordinance. State law tells you how much you can collect, how you can utilize it and when to return it. (In CA it is 21 days after move-out). It is essential that if you own/manage property you know the laws in your state.

In an unfurnished property a deposit cannot exceed 2 month's rent. In a furnished property you are allowed 3 month's rent. (** note- the first month's rent is NOT considered a deposit since it is due.**). In CA the security deposit does not have  to be returned with interest, or even placed in a separate account.


The following are considered damages:

Misuse of Appliances:I recently had a tenant move out who actually cleaned the unit quite nicely, but the problem was the 2 year old toilet: the tank was "cracked" about 8" and someone had tried to glue it together. Normal wear and tear? I don't know about you but I haven't ever cracked a toilet tank. So I had to replace an almost new toilet plus the cost of installation.

Broken Windows/Screens:  I had one incident where the tenant's cat had decided that the window screens would be a geat place to sharpen their claws and as a result the screens had to be replaced---not a big deal, but certainly not normal wear and tear. The tenant thought that a cat "normally" needs to sharpen their claws, so a screen is as good a place as any. 

Carpets: Another tenant who was a Psychic and had "seances" in her home, had spilled candle wax on a new wall-to-wall carpet. She said it was an accident, but the wax could not be removed and the carpet had to be replaced.

Light bulbs: Most tenants consider these the landlord's expense. I beg to differ. Especially when you have recessed lighting and the halogen bulbs cost $3.00 each.

Holes in Plaster: Putting up curtain rods and hanging pictures are ok as long as you repair the damage. It may not seem like alot, but imagine a dozen nail holes over the course of 4-5 years. They really can destroy the drywall and texturing.

Plugged up Drains/Disposals: It is not normal wear and tear to find a washcloth in the bathroom drain or a beer can tab in the disposal . A tenant argued that the pipes were not hers and therefore the landlord had the responsibility to "clear" them.


The following are considered normal "wear and tear":

-Scuff marks on woodwork or walls

-Any breakdown of plumbing or appliances that is not due to tenant's negligence

-Cleaning dirty carpets as long as all stains can be removed and were not present upon move-in.

Remember to always have a tenant fill out the "Move-In Checklist" 7 days after moving in, and returning it to you signed and dated. This document will keep you out of court.

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Facebook: A Great Road Map to Human Psychology

I have been on Facebook for about 2+ years now, and although it began as a giant cocktail party for me, I now have advanced to the Facebook Ad Campaigns. I have been using the ad campaign for only 3 weeks so I really can't comment on how it's going---I have gotten many clicks though, and the price is reasonable, so it may take several months or even close to a year to know if it has driven enough traffic to my website to make it a long term marketing strategy.

I have gotten to know the many "friends" I have accumulated, and of course most of these are e-friends, friends of friends, colleagues, friends of colleagues, old friends from college, family members, friends of family members etc. What has interested me, though, is the window into someone's personality Facebook provides.  Silly, you say? Not when you are in a "people" business like Real Estate and where communication is our main focus. Here's just a few:


The Bragger
You know the type. He is constantly posting to his Wall his fabulous week-end plans, all his fabulous friends and the many fabulous restaurants he has dined in. Life is so fabulous for these folks, I wonder when he gets the time to even post to his Facebook wall? He's not a bad person, maybe a bit insecure, but hey, aren't we all?


The Do-Gooder
Let's change the world and join my Groups: Save the Whales, Save the Planet, Go Green Now, Alternative Energy, Organic Gardening, Yurt Life, Ban Bottled Water, Vegans Unite, Earth Day Forum, Gay Pride and Electric Cars. I am socially conscious too...and these guys are just trying to make the world a better place. I give them a "thumbs up".


The Photo Queen
I counted one friend who had about 300+ photos of herself and her friends and family, and they all featured her with a huge smile,drink in hand, socializing with a group of people. All of them. Week after week--weddings, graduations, parties, and beach blanket bingo. Same smile, over and over and over. I love it when folks are happy!


Self Promoting Realtor
Every wall post is a new Listing, an Open House, a client that loves him, a client that found him on Facebook, a Webinar to "boost your sales". Hold on--- I'm just envious of your success--------I'm a coming to join you!


Farmeville Groupies
Ok how do I politely tell you I don't want your wooly sheep or rows of corn? I am not quite sure I get this aspect of Facebook, but I notice this is very popular and has no age limit. I guess it's kind of like cross-word puzzles: there's no point, really, just a way to pass the time and hone your farming skills. A deep thinker.


Happy Grannies
Pictures--- daily--- of their little grandchild in different outfits, hats, shoes and seasons. In the swimming pool, under the Christmas tree, playing with the family dog. You got to love a proud grandmother.


If you have noticed other "types" of Facebook friends, feel free to add your comments here. The more types of personalities we can identify, the better we can understand our clients. And that's a great foundation for any business!

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Bill to Prevent Avoidable Foreclosure Clears California Senate

Legislation that would help prevent avoidable foreclosures and deter irresponsible lender and servicer behavior recently passed out of the California Senate, 21-12.

"Simple fairness dictates that no one should lose their home while they are in the middle of trying to save it," said Paul Leonard, director of the California office of the Center for Responsible Lending.

SB 1275, authored by Sen. Mark Leno (D-San Francisco) and Senate President Pro Tem Darrell Steinberg (D-Sacramento) would prevent servicers from foreclosing on homeowners who have requested modifications until a decision has been made, and the homeowner notified. It would also allow for a limited remedy for certain eligible homeowners whose homes were erroneously sold at foreclosure.

Currently, servicers are initiating the foreclosure process even when borrowers are working to reach a resolution, including when homeowners are following all the rules to seek a loan modification, or are already making payments on a trial modification. Additionally, if a homeowner's home is sold due to servicer error, there is currently no means by which to seek recourse.

SB 1275 seeks to change this by providing recourse through what is known as a private right of action.

This would allow eligible homeowners to seek limited damages which are directly related to the severity of the servicer's errors, or, in some cases, would allow the homeowner to reverse the foreclosure sale and require the servicer to start over and follow the law. This provides a modest deterrent to the egregious servicer behavior that can cost Californians their homes, and faces significant opposition from banks and servicers reluctant to improve their servicer practices or pay the price for their mistakes.

During earlier committee hearings for SB 1275, servicer representatives acknowledged that confusion and errors are commonplace. Bank of America executive Jack Schackett even admitted during a conference call yesterday that they "have not handled [their] customers to the standards Bank of America is accustomed to."

Confusion and errors that cost Californians their homes, however, are not only avoidable, but they are devastating. Homeowners who have been wronged deserve the opportunity to make it right.

"One of the oldest principles of law is that a right without a remedy is no right at all," said Lisa Sitkin, staff attorney at Housing and Economic Rights Advocates in Oakland. "In order for laws to be meaningful, violations must have real consequences, and victims must have real avenues to seek redress."

CRL expects that homeowners' ability to right the wrongs of irresponsible servicers will continue to be the biggest challenge to moving SB 1275 through the Assembly. It will first be heard in the Assembly Banking Committee. 

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I found a FREE product I love! It's called logmein and can be found at www.logmein.com.

Have you ever wanted to leave your laptop at home, but knew that you may regret it? You just needed to check a spreadsheet or a Contract that was in your desktop folders. Thankfully, many programs are online and can be accessed from anywhere. But we all have our own stashes of personal items in our "desktop" folders and this product I found makes your laptop almost "virtual". You can get into your laptop from anywhere you have online access.

You will need to set-up a new account  and password, but you will also need your main computer's  username and password to work remotely This was a glitch for me, but I finally figured it out.

Check it out--- laptops may soon become a thing of the past!

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BILL SB1178 PASSES SENATE

SB1178 was just approved by the Senate, over Lender opposition, with a vote of 30 to 4. C.A.R. is sponsoring SB1178 to extend anti-deficiency protections to homeowners who have refinanced "purchase money" loans and are now facing foreclosure. Most homeowners didn't even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the Lender.

Check out the details on the C.AR. website.

WOOF WOOF
I don't hate dogs--quite the contrary. When my daughter was small, we had a loveable Golden Retriever named Bernie. My daughter and he were the best of friends. He would protect her, and lick all of the day's food off her face before I had a chance to get the facecloth. His loyalty and gratitude to us for being his "people" was never ending. He got cancer at 12 years old and had to be put down. Needless to say it was a devastating event for the entire family. And to this day, every time I see a Golden Retriever puppy I am tempted..but then reality sets in and I realize it just wouldn't fit into my lifestyle--and I even own my own home!

One of the problems I encounter as a property owner  in San Diego CA is that tenants love dogs too. I don't allow dogs in any of my properties and I have had to turn away some good tenants. They asked me why I hate animals so much!

Here is a list of the 5 main reasons property owners in San Diego CA do not allow dogs.

Noise
Dogs bark. Your dog doesn't bark at all when you are at work all day and has nothing to do but sit in an empty house, lonely and bored? How would you know? Do you have videotape running? Dogs bark, plain and simple. They are supposed to bark, that is what dogs do. You may not mind it, but I bet your neighbor who works nights and is sleeping during the day does.

Liability
Insurance companies deny dog bite claims to owners who own dogs of certain breeds: Pit Bull, Rottweiller and German Shepard to name a few. If your dog is a mutt, he/she may have part of this breed and depending on the amount (they can do a test), your claim can be denied. Sounds crazy? Some insurance companies have Labrador Retrievers as an unwanted breed.  This borders on the ridiculous, as we all know Labradors have to be the kindest dogs on the planet earth. But you may ask what can a 3 pound Chihuahua do? Well they can deliver a nasty bite to an infant. One of my friends was bit on the finger by one and it was a pretty deep bite. Think lawsuit.

Denied Access
If a tenant does not want you in their house, a loose dog will carry out their wishes. Would you as an agent enter a house with a Pit Bull running around? A few years ago, I had a client who desperately needed me to sell his rental house, but the tenant and he had an altercation.  She actually said it was ok to come in, but her 60 pound "friendly"  Pit Bull was loose inside and she had no plans to tether it.. (Oh and did I mention the tenant in the back was breeding rabbits? But I digress)

Destruction of Property and Landscaping
Did you ever see a large dog dig holes? Or a small terrier "tunnel"? You know what I mean when I say destruction. And what about dog excrement that a lazy owner is just too busy to pick up daily? I had a tenant that figured if a dog poops on the snow, then it will just disappear miraculously. Well folks, I can tell you this isn't the case. In the Spring, after the snow thawed on the 1/2 acre of grass, guess what I found perfectly preserved in small bundles (6 months X 30...get my drift)? It was not a very happy day for me.

Humane Reasons
I don't know about you, but anyone with a large dog who has no moral problem with it sitting in a small apartment all day gets my vote for "Loser". It's cruel and I would feel ethically unable to allow this in my property.Tethering a dog all day in a yard is not an alternative since this leads to boredom and barking.

The time to adopt a dog is when you are settled in a home that you own----That's easy!! Become a property owner in San Diego CA.

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Here is Drew Sygit's Series Part 3 of Short Sale Legal Issues Affecting Real Estate Agents.

Condo Buyers in San Diego, CA: 7 Questions To Ask Before Buying  A Condo