Real Estate and All That Jazz: March 2010

I don't know about you, but I really love all natural products. I especially like natural toothpaste, and one of my favorites is Tom's of Maine. The taste of natural mint and other flavors (fennel is my favorite) is so refreshing and a big improvement over the sugary sweetness of other well known brands.

But I always struggle with the metal tube, and end up throwing the tube away with perfectly good toothpaste hidden in the nooks and crannies of this container. I have tried to cut it open with a scissors, and then mercilessly scrape the paste from the "open wound". It's barbaric, I do admit...but why throw away good toothpaste when it costs $4.00+  per tube.

I called Customer Service at Tom's of Maine to find out if they package any of their toothpaste in plastic tubes that, in my opinion, are much easier to "squeeze from the bottom".  I explained my problem in an e-mail and less than 24 hours later I got a response from a Customer Service Rep. She explained that they used this environmentally friendly metal tubing, since it is recyclable, and asked me if I had a "roll-up key" to place at the bottom. I have tried these before, but they didn't work well on metal. She then told me she would mail a special "roll-up key" to my home and boy was  I impressed. So you can imagine my delight when I got the key PLUS an entire tube of Tom's Peppermint Toothpaste along with it for FREE!

The point of this story is that I was so delighted with their response to this tiny problem I was having, that they have a customer for life....ME. Their concern and "going the extra mile" for their client  by listening to the problem earned them a customer for life...and all it cost them was a "roll-up key" and a tube of toothpaste!

Do you as a Realtor go the "extra mile" for your client? Do you deliver knock-your-socks-off service? Tell me some situations where you exceeded the immediate scope of your job  and gained a client for life. 

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Part 2 in a 2 Part Series

I think that the sale of my residence may qualify for this benefit. How do I apply?
You must file a claim with the assessor, who will determine if the transaction qualifies. Claim forms should be obtained from the assessor's office in the county where the replacement property is located.

How do I determine if the replacement property is of "equal or lesser" value?
it depends upon the timing of the purchase or completion of construction of the replacement property. In general, "equal or lesser value" means the fair market value of the replacement property does not exceed one of the following.

100% of the market value of the original property, if the replacement property is purchased or newly constructed before the original property is sold.

105% of the market value of the original property if the replacement property is purchased or newly constructed within the first year after the original property is sold.

110% of the market value of the original property, if the replacement property is purchased or newly constructed within the 2nd year after the property is sold.

If the market value of my replacement dwelling slightly exceeds the "equal or lesser value" test compared to the market value of my original property can I still receive partial benefit?
No. Unless the replacement dwelling completely satisfies the "equal or lesser value" test, no benefit is available.

Can a taxpayer apply for and receive the benefit of Proposition 60/90/110 numerous times during the course of his/her lifetime?
Generally, no. With one exception, only claimants who have not previously been granted this benefit are eligible.

I was previously granted this benefit but have since become permanently disabled. Can I apply for and receive the benefit of Proposition 110?
Proposition 110 creates an exception from the one-time-only limitation for any claimant who becomes sevrely and permanently disabled after having previously received a base year value transfer as a claimant over the age of 55.Thus, if a person over the age of 55 transferred the base year value from an original property to a replacement dwelling and subsequently becomes disabled, than that person may now transfer his or her base year value a 2nd time.

I would like to transfer my base year value to a replacement property located in another county.Which counties have adopted an ordinance to allow such transfers?
Currently each of the following 7 counties has an ordinance implementing the inter-county base year value transfer provisions of sec.69.5 of the Revenue and Taxation Code (Prop 90):

-Alameda  -Orange  -San Mateo  -Ventura  -Los Angeles  -San Diego  -Santa Clara

If the replacement property is in a different county than the original property, only the replacement property (not the original property) must be located in one of these 7 counties. If a county has an ordinance, it will accept a base year value transfer from any other county in California as long as all the requirements are met.

What is the deadline for filing a claim?
Generally you must file your claim with the county assessor within 3 years of the acquisition or completion of construction of the replacement property.

 

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Part 1 in a 2 Part Series

Propositions 60, 90 and 110 are constitutional amendments approved by the voters of California.They provide for the transfer of a property's base year value from an existing residence to a replacement residence, under certain conditions for qualified persons over the age of 55 or persons of any age who are permanently disabled.

What are the conditions that need to be met in order to qualify for the exclusion?

1. Both properties must be located in the same county unless the county in which the replacement residence is located has an ordinance that allows intercounty base year value transfers.

2. As of the date of transfer of the original property the transferor (seller) or a spouse residing with the transferor must be at least 55 or permanently disabled.

3.At the time of sale, the original property must have been eligible for the Homeowner's exemption or entitled to the Disabled Veteran's Exemption.

4.Generally, the replacement dwelling must be of equal or lesser value than the original property.

5. The replacement dwelling must have been acquired or newly constructed within 2 years of (before or after) the sale of he original property.

6. The owner must file an application within 3 years following the purchase date or new construction completion date of the replacement property.

7. The original property must be subject to reappraisal at its current fair market value. Therefore transfers of the original property that are excluded from reappraisal (e.g. most transfers between parents and children) will not qualify.

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Last week nice weather finally graced our city. We had an unusually cool and rainy winter, and when the sun came out and the "old" San Diego climate appeared, I decided to spend a few afternoons enjoying some much needed free time.

Balboa Park in San Diego, CA is one of my favorite places to go. Not only can you meander around the beautiful rose gardens and pathways, but there are museums, lawn bowling and the world famous San Diego Zoo. Parking is never a problem mid-week, and not really too bad on week-ends either. I decided to take advantage of one museum's FREE  entrance on Tuesday for all San Diego residents. It happened to be the Mingei International Museum where there were several Exhibits: Mexican Cultural, Chinese Hat Box (see photo) and Ceremonial Art Across Cultures.

Tuesdays are a great time to go: no crowds and lots of space to stop at the Exhibits. I then decided to go to the Museum of Photographic Arts where there was an  Exhibit called "State of Mind-A California Invitational" running from Feb 6-June 6th 2010 which showcases 22 California photographers.  Well worth it if you can appreciate different photographic perspectives. Unfortunately, it was not FREE Tuesday for this museum so I had to pay a very reasonable $6.00 entrance fee. There is a really nice gift shop with an extensive collection of books on Photography, and the cafeteria had decent coffee.

On my 2nd afternoon, I went to PB, Pacific Beach (which is a local San Diego Beach, not just the name of the ocean) to watch the surfers, bikers, people walking dogs, impromptu street music and to walk the boardwalk. Surf was up, dude, and the waves must have been 10 feet high! There was an almost chilly breeze which was so pleasant as I sat and ate my lunch in the sun.

On my 3rd afternoon, I went off to Circle T Ranch on Willow Rd. in Lakeside,CA and spent a lazy morning riding my horse, grooming him and listening to Country music. Circle T is located across from many riding trails, so if you don't have a horse, you can go on a trail ride with Laura on one of their barn horses (Missy or Jasmine), who will take even beginners through the wilds of Lakeside.

San Diego has so many "vacation" activities within easy reach. One can spend a morning in a rural high desert, the afternoon at the beach and then off to Balboa Park/downtown for some urban adventures. Maybe that's why I don't feel the need to take as many vacations living in this part of the country...I can do just about everything I enjoy within a 30 minute drive.......
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Security Deposits in San Diego, CA are often a bone of contention between Landlord and Tenant. A "Move-in" Checklist is often the best way to make sure that everything that needs attention is noted, from a hole in the wall to a dirty oven. This checklist document will also hold up in court. Without it, you have no leverage to justify any deductions. I give my tenants 7 days from move-in to get this back to me, and sometimes I have to keep on badgering. It's worth it.

Deductions for cleaning and damages is usually what the security deposit is used for. A few examples are:

Getting rid of mildew in the bathroom
Fumigating for fleas from a tenant's pet
Repairing holes in walls from pictures
Torn screens

Legal standards are vague as to what is considered a "reasonable" deduction or not. Many tenants' standards are different from yours or the new tenant. If carpets are delivered freshly steam cleaned to a tenant, and after 2 years there are stains on it, I deduct a  cleaning fee. If you want to do the cleaning yourself, you can deduct a reasonable hourly charge.

One of the biggest issues is "repainting". Are dirty walls a sign of  normal "wear and tear" after a one year period of time or the tenant's carelessness? One Landlord  I know uses the following guideline.

 If the tenant has occupied the premises:
6 months or less, the full cost (labor and materials) of repainting is subtracted from the deposit
Between 6 months and a year, 2/3 of the painting cost is subtracted from the deposit.
1-2 years, 1/3 of the painting cost is subtracted from the deposit
2 years or more, no charge for repainting.

This is just a general rule, and it may have to be modified to fit particular circumstances.

Carpets:
If the tenant has damaged or shortened the life of a carpet you may charge the tenant the pro-rated cost of the item taking into account how old it was and how long it may have lasted and the cost of replacement. For example, if the tenant ruined an 8 year old rug that had a life expectancy of 10 years, and it would cost $2000 to replace, you would charge the tenant $400.

Fixtures:
If a tenant leaves behind a row of book-shelves you can remove them and charge the tenant for restoring the property (wall repair, painting). The standard lease in San Diego, CA specifically says no improvements or reapairing or altering the premises.

Damages beyond ordinary wear and tear:
These would include cigarette burns, broken tiles, missing broiler pans, water damage from plants, and broken windows.



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When economists aren't predicting the future, they spend a good deal of time studying behavior. For instance, they've been studying why individual borrowers don't walk away as frequently from their homes as corporate borrowers walk away from their properties. They point to Tishman Speyer Properties and BlackRock Realty, which recently turned in the keys and defaulted on $4.4 billion in loans on their hopelessly underwater Stuyvesant Town and Peter Cooper Village residential properties in New York City.

The economists believe more of us should be acting as rationally financially as Tishman Spreyer and BlackRock, and when we do, the foreclosure numbers will spike.

There are at least three faults in extrapolating business behavior to individual behavior. First, individuals aren't profit-maximizing firms. We, as individuals, value many things as much as money – happiness, health, continuity, and community comes readily to mind. Second, individuals suffer from the endowment effect: We tend to value things we own more than they would be valued in an arms-length business transaction. We get emotionally attached, in other words, and there are few things we are more emotionally attached to than our home. Third, individuals can't hide behind the anonymity of a corporate aegis. Reputation and fulfilling obligations are ingrained characteristics, which is why we are loath to just up and walk away.

We say all that to say this: Individual motives differ from business motives. That's why we are confident in saying that as long as we continue to see improvement in employment – the final determiner in fulfilling obligations – we will continue to see improvement in not only foreclosures but home prices and sales volume as well. It's simply in our nature.

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When a tenant stops paying the rent, eviction is usually the only recourse.
In San Diego, CA the eviction process takes place in 3 steps. Advice from a Real Estate Attorney is highly recommended.

Three-day notice to pay or quit:
This is a notice that is given to the tenant or posted on the door of their property. If you do not get the rent, proceed to the next step.

File an Unlawful Detainer Action:

You file this in court and when the tenant gets notice they have 5 days to respond. If there is no response a default hearing is set.

Writ of Possession:
A writ of possession is executed at the default hearing and an eviction notice is served on the tenant by a process server or the Sheriff. Tenants have 5 days to leave the premises or the Sheriff can physically remove them.

Eviction usually takes 2 weeks but can be delayed due to:

Court scheduling problems
False claims by the tenants
Failure to serve all occupants
Bankruptcy-If a tenant files for Bankruptcy mid-eviction the eviction process stops until the Bankruptcy is resolved.

Eviction may be valid for the parties on the lease, but other parties in possession may be able to stay.This is a good argument for only allowing tenants who are on the lease to occupy the premises. If you are not party to the lease  you have no obligation to care for the property or any financial obligation. Unnamed occupants should never be allowed to live in the property.

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Moving to, within or away from San Diego CA seems to be a very popular lifestyle choice these days. Think about all the trash involved with each move, before and after: packing supplies, boxes, tape etc.

A company called The Box Lady located close to Mission Valley in San Diego, CA has developed a very unique and GREEN solution to keeping these boxes out of the landfill. 

The Box Lady sells used boxes and buys them back. Yup! You do not have to figure out how and where you are going to get (and dispose of) all your moving stuff. All it takes is just your efforts in loading your car up with the boxes after you move and then returning them. The only stipulation is that the boxes are still useable, not broken, wet or smelly.

Wardrobe Boxes are $5.00, dish packs $2.00, Large Boxes are $1.50. (This is seriously cheap. I have seen large boxes for $5.00 or $6.00).Boxes are bought back for about $.50 apiece. Multiply this by 30 or 40 boxes for your average move, and you have not only saved yourself a bundle but you have kept all this trash out of the landfill in San Diego CA.

---THINK GREEN---

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