A local San Diego brokerage, ARG has announced they are the first broker in San Diego to pull out of listing syndication.

I am not going to go into great detail on this site which is consumer orientated.  If you want to know more please visit an excellent article by Lily Leung with the San Diego Union Tribune.  She has also posted some consumer reaction to the announcement here.

Fred Glick makes several important points in the video below about ARG’s announcement which focus on Zillow, Trulia, and Realtor.com.

First, that the underlying message is to call the listing agent, no one else will know more about the property or represent you better.  Sounds like dual agency to me.

Second, that the seller should be concerned and not allow his or her listing to be syndicated on Zillow Trulia, or Realtor.com, the three largest consumer real estate sites on the Internet.

http://www.youtube.com/watch?v=WMQm3ZvVRl4

What are your thoughts?

I thought this was really interesting that the San Diego Bay western salt ponds after 50 years, are being opened up to the Bay and tidal fluctuations.  This is the part of the final phase of the restoration project pictured to the left.  Here is what the U. S. Fish and Wildlife had to say regarding the project:

As you travel along the southwestern most corner of the San Diego Bay National Wildlife Refuge, along the Bayshore Bikeway, you will see all the activity happening on the Western Salt Pond Restoration Project! Since construction began in December 2010, the dramatic change from commercial salt ponds to restored wetlands is taking place within the three western-most ponds (Ponds 10a, 10, and 11). What is going on under the water surface will soon be visible as we begin creating rare salt marsh wetland habitat.

The restoration of critical wetland habitat in San Diego Bay is essential to fish and wildlife and to the long-term health of the bay.

The western salt ponds will be transformed into open water, intertidal habitats such as mudflats, low-marsh, and mid-marsh (above). The construction will consist of earth moving by dredge, from Pond 10 into Pond 11 to create a sinuous network of channels that will serve as the main sloughs of over 200 acres of estuary in south San Diego Bay.

Once the channels are cut, and the proper elevations are achieved, the existing levees separating these ponds from the tidal waters of the bay will be breached in two places! These ponds have not received tidal bay influence since 1960 or earlier. By the end of Summer 2011, tidal ifluence from the San Diego Bay will flow and fluctuate within these ponds, which will allow natural plant propogation to take hold. Just wait to see what wildlife will come!

It is a challenging, yet exciting and rewarding project. It is the hope of all the project partners and local residents of San Diego that when completed, this project will restore native ecosystem functions of lower tidal marsh habitat…and to the rest of the South Bay. It is also the hope that in the future, this habitat will attract a keystone endangered species to thrive here: the Light-footed clapper rail.

Read more ….

I often have people ask me if there is money to be made in flipping homes?

House flipping is the practice of buying a bank owned home from auction or a distressed property on the market, fixing it up, and selling it for a profit.  In the last year we have seen many of ameuter investors on the Courthouse steps, often driving prices up and leaving little to no room for profit on a flip.

This is really a serious business.  Risks include title issues, unknown property defects including structural, mold, or foundation issues, and an unstable real estate market.  According to Foreclosure Radar margins in San Diego County can be thin.

Rather than reinvent the wheel, Lily Leung wrote an excellent article on Sign On San Diego titled “Is There Money To Be Made In Home Flips?”

Investors who work in teams scout for bargains, close quickly with cash, gut and beautify, and market the homes to agents — all while the timer’s ticking. If everything goes right, their money and muscle will yield enough profit to keep that machine churning.

“It’s not for the weak of heart,” said Chief Denney, a Rancho Santa Fe investor whose company Compass Real Estate Capital will flip 100 homes this year. “It looks easy … but it could be disastrous for someone who doesn’t know what they’re doing.”

Read more…

 

There is another article on House Flipping For Beginners on SF Gate.  The article includes 8 steps for those considering house flipping.

The term “house flipping” refers to the act of purchasing a residential property, making necessary renovations and quickly selling the property for a profit. The idea is to invest in relatively inexpensive improvements that will generate a significant increase in potential market value. Time is an important element in house flipping. Ideally, a house flipper seeks to sell the home before a mortgage payment is due, in order to minimize monetary investment and maximize profit.

Photo courtesy of Flickr

http://www.youtube.com/watch?v=8cgb-BCh-4g

Been changing a few things, hopefully for the better, on San Diego Lifestyle.  They include:

• Link to Google Chat from website - unfortunately only Flash.
• Cleaned up menu making it easier to find your way around.
• Additional ways to contact me including voice, text, chat, and Skype.
• Finally updated my photograph so people don’t look so surprised when they meet me in real life.

Photo courtesy of Flickr

Hat tip to Jacques Albrecht for sending me this article on The Street titled “A Huge Housing Bargain — But Not For You.”  I had seen the Request For Information (RFI) earlier in the month, and had not really struck home what direction the Government may be going in.  As you know I always try to be balanced in my perspective on San Diego Lifestyle and provide facts, not spin to my readership.  This however really stinks.

The source of this article was from Real Money in a column by Roger Arnold that suggests the Request For Information (RFI) is just a way for the Federal Government to get input from from the private sector to accomplish the goals set out in the RFI.  This is just a facade according to the article since the RFI was structured by the investors to begin with.

You can view or download a copy of the Request For Information below and judge for yourself from the link at the bottom of this post.

Here is what the article had to say Roger Arnold article had to say:

NEW YORK (RealMoney) — The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.

These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.

You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs(GS_) and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.

What can be done about this?  I will be keeping a close eye on this as it develops. If indeed, it goes in the direction that the article suggests, I will be very surprised if there won’t be heavy push back from the Taxpayers and from the National Association of REALTOR®.  Once again, in my mind the taxpayer is bailing out another special interest group and paying the bill.

Assuming taxpayers don’t push back, the next step will be to issue a Request for Proposals (RFP). The RFP will be the bid and plan for these homes by investors.

The way to keep taxpayers from pushing back is to structure the RFI so that the real intention, the bulk sales, is masked by feel-good goals, such as stabilizing neighborhoods and increasing the supply of rental properties.

Is the American taxpayer really that stupid?

View of download the RFI by clicking the image below.

Posted today on the California Association of REALTORS® blog is a discussion on what “as is” means in California.

A lot of REALTORS® have seller clients who want to sell a property “as- is.” In the current market where there are a lot of REO sales, most agents are familiar with REO addendums that state in some fashion that the property is sold “as-is” with no warranties. Some REALTORS® wonder why C.A.R. does not have an “as-is” addendum.

In a state like Alabama, saying a property is sold “as-is” has real meaning. If a seller sells a property “as-is ” it is like saying “buyer beware” and the seller then has very limited disclosure duties. This is NOT the way it is in California.

A property sold “as is” in California basically means that a seller will not be performing any repairs or improvements to the property being sold. “As-is” does not relieve the seller of having to perform his many disclosure duties under California law including the general duty to disclose in all real property transactions (not just residential 1-4) all known facts which materially affect the value or desirability of the property. This provision applies to all sellers including REOs.

A potential buyer of real estate in California should make an offer on the property in “as is” condition. Of course if something new happens to the property since the date of offer and the close of escrow, the seller would be obligated to repair the damage. The Residential Purchase Agreement is written with a paragraph that states the property is sold “in as” condition – or present condition.

This does not relieve the seller from making full disclosures on the Real Estate Transfer Disclosure Statement and hopefully the Seller Property Questionnaire of the properties condition.  Non-disclosed items that are not apparent almost always result in some re-negotiation of the purchase price.

The buyer will also have a right to present a Buyer’s Request for Repair during the inspection contingency period.  The Seller is not obligated to accept the requests or may choose to counter them.  The buyer will then have cancellation rights, accept the new terms, or can decide to move forward with the purchase.

Photo courtesy of Tom Hodgkinson via Flickr

San Diego Mortgage Brokers – Using Services.

The Department of Real Estate (DRE) has recently updated “Using The Services of a Loan Broker.”

A mortgage broker helps you obtain a home loan. A mortgage broker may be licensed by either the California Department of Corporations or the California Department of Real Estate. Mortgage brokers make or arrange first mortgages and junior (second) mortgages. A junior mortgage secures a loan which is secondary or junior to one or more other loans on the property. Some home loans arranged through brokers are very similar to a home loan you might obtain independently from a bank, savings and loan association (S&L), credit union, finance company, or other type of lender. Some brokers offer shorter loan terms and/or different repayment plans.

While many Mortgage Brokers are out of business for shady business practices, sometimes using one has advantages.  Just like real estate agents, attorney’s, and lenders there is always good, bad and mediocre. If you approach a bank for your Mortgage Loan they have one source of money, while a Mortgage Broker can shop around and place you with the lender that fits your needs and goals.

Recently I had the pleasure of meeting Michael Mekler, President of Liberty First Capital.  While I personally have not used his services, he comes highly recommended from some colleagues.

What I really liked about Michael is he takes the time to sit down and understand your situation and goals.  So many large lenders simply send you off to do an on-line application with little regard for your goals.

Michael is one of the “old school” service providers like myself that loves his job and is passonate about customer service.  You can reach him direct at 760-536-6200 or mmmekler@LibertyFirstCapital.com.  Hopefully I will do a video with Michael soon discussing the advantages of a Mortgage Broker.

To download the DRE Using The Services of a Loan Broker click on the image below:

Tips For Finding A REALTOR®

This past week I met a colleague in the real estate business for coffee and conversation.

The topics included the latest tech items, commission structures, contact data base management, and the overall perception of the REALTOR® and real estate industry.  He went on to tell me about a recent get together attended by professionals including attorneys, physicians, and educators.

The conversation eventually got into real estate and how easy it is to get a Broker’s licensee to save money by representing themselves.  The overall consensus from the conversation would be a savings of between 5% and 6% of the selling price.  It was a simple as that.

Of course I shared with him my old favorite saying that an Attorney that represents himself, has a fool for a Client.

A good deal of the perception of the real estate industry is our own fault.  Too many of us clamor about being number 1 or “top producer” and drive fancy leased luxury cars, wear expensive clothes, and have a ego the size of a 3rd world country.

From the consumers point of view why wouldn’t they believe we were an overpaid bunch of buffoons?

The things that traps all of us in life is we don’t know what we don’t know.  We second guess our doctors recommendations based on a Google search, a teacher’s method of running a classroom, and our public servants.  And we do this with out all the facts – assuming our judgement is correct.  BTW sometimes it is!

When I first started practicing real estate, I thought fresh out of the Department of Real Estate test that I was qualified to advise people in undoubtedly the largest financial decision of their lives.

Some 20 years later I am still learning something new each day, and realize how much more there is to know.   In other words, I know more than I don’t know, which is what a professional should bring to the table in any field.  You need to be immersed in a field day to day to understand it.

Last week the big story on Twitter, Facebook, and the news was the former CEO of ForSaleByOwner Colby Sambrotto had listed his 2000 square foot New York apartment for sale by owner (FISBO).He advertised the condominium through on-line classified ads and FISBO sites.  After 6 months he gave up, hired a real estate broker, and sold the property with multiple offers going $150,000 over asking price.  You can read more about on Curb New York.

In part three of my 10 part article on successful traits of a REALTOR® I listed “experience.”  The story is about a melt-down at a power plant that could not be diagnosed, an outside expert was called in, and within 10 minutes time he had corrected the problem.  Everyone was really grateful until they received a bill for  $2,000 of what they perceived as 10 minutes of his time.

Later that week the Plant Manager received a bill from the expert. When he opened the statement he was surprised to see a bill for $2,000 and immedialty rang up the expert to inquire how 10 minutes of time could be worth so much money and could he please itemize his statement.

Later that week another amended invoice arrived for the plant manager.

10 minutes time assessing the problem and troubleshooting plus travel time $25.00

20 years past professional experience in knowing which instrument to tap – $1,975.00

To immediately view or download 9 Tips For Finding A REALTOR® click image below.

If you want to check out schools scores & parent opinions in the US, Great Schools is a good source.

In fact, I have used it on San Diego Lifestyle for some time.

Schools are very subjective and the best way to get a general feel for a particular school or district is by looking at parent ratings (opinions) and school scores (facts).  I have always advised clients this is a good place to start, but also go speak to the school in your district and contact the parent-teacher association.  It’s not appropriate or legal for real estate agents to weigh in on anything that is not factual.

If you would like more information there is an informative Q&A on “Agent Duties, what a real estate agent can and can’t do for you.”

Because of lawsuits, there are many other types of requests that smart real estate agents will not address. For example, where I work in California, there is no guarantee that homeowners who live within certain school districts will be able to enroll their children in that school. If a client asks me to find them a home in a particular school district, I will ask them to give me the boundaries for the search. I don’t supply the boundaries. I also explain that their children might not get accepted into the school of their choice. Guaranteeing a certain school district is not within the scope of my fiduciary duties to a client and could also be construed as a violation of Fair Housing.

With the GPS function in the iPhone you can locate any school nearby including elementary, middle, and high schools.  Once located you can view detailed reviews, ratings, and test scores.

Key features of the mobile version include Search the latest school information for more than 125,000 K-12 schools in the U.S., including public, public charter, and private schools.

• Search the latest school information for more than 125,000 K through 12 schools in the US, including public, public charter, and private schools.
• Map and compare schools for any city, based on your current location.
• Filter schools by public or private, grade level, or distance, GreatSchools Rating, Community Rating, or enrollment size.
• Browse parent reviews, recent test scores, and district information.
• Save schools to your personal list of favorites for quick retrieval later.
• Share school information with family and friends.

Coutesy of Wikipedia

Mills Act Offers Tax Abatement.

I have an interest in historical homes and often run into property that is designated as being in the Mills Act.  Aside from what is commonly known about the property tax savings, I thought it might be useful to pull together some information on the Mills Act of this tax abatement program.

The Mills Act (copy) was enacted in 1972 by then Senator James R. Mills who was from Coronado.  The purpose of the act is the preservation and restoration of qualified homes and building owned by private parties.  In exchange the owner gets a tax abatement.  Each County establishes criteria for the Mills Act and how many contracts they will have.  Contracts are signed for 10 years initially and run with the property if ownership is transferred. Thereafter, contracts are renewed automatically on a yearly basis.

The new owner of a Mills Act home would be obligated during the remainder of the term of the contract, which could be up to 10 years according to the information on the California Office of Historical Preservation.

A formal agreement, generally known as a Mills Act or Historical Property Contract, is executed between the local government and the property owner for a minimum ten-year term. Contracts are automatically renewed each year and are transferred to new owners when the property is sold. Property owners agree to restore, maintain, and protect the property in accordance with specific historic preservation standards and conditions identified in the contract. Periodic inspections by city or county officials ensure proper maintenance of the property. Local authorities may impose penalties for breach of contract or failure to protect the historic property. The contract is binding to all owners during the contract period.

The Mills Act is voluntary and saves an average of around 50% on accessed value of the property.  In 2008 under the City reform a $492.00 inspection fee was to be paid every 5 years.  There was much controversy on both sides with owners saying it less attractive financially, while proponents argued it would make sure the owners were preserving and/or restoring the home.

According to an article on SignOnSanDiego the City has approximately 1,005 homes have an agreement for the Mills Act.  The City started billing participants in 2009.  The inspection fee pays for City employees to determine if the owner is living up to the contract.

In 2009, the city’s historic homes division sent its first wave of bills to 200 of the 1,005 property owners in the Mills Act program. None were sent in 2010, but another 200 were sent in 2011 — likely explaining why some were confused to receive a request for payment this year. The department in charge of historic homes lost a senior planning position in 2010, which affected the process, said Cathy Winterrowd, principal planner and liaison to the city’s Historic Resources Board.

Contact information for the State of California can be found at this link including other communities in San Diego that participate in the Mills Act.

Established Historical Districts include:

• El Prado in Balboa Park.
• Old Town State Park.
• Theosophical Institute in Point Loma.
• El Pueblo Ribera in La Jolla
• Gaslamp Historical District.
• Greater Golden Hill Historical District.
• Chinese-Asian Thematic District.
• Sherman Heights Historical District.
• Grant Hill Park Historical District.
• Bishop’s School Historical District La Jolla.
• Auxiliary Navel Air Station Brown Field Historic District Otay Mesa.
• Talmadge Gates Historical District.
• Shirley Ann Place Historical District.
• Naval Training Station Historical District.
• Ocean Beach Cottage Emergine Historical District.
• Burlingame Voluntary/Traditional Historial District North Park.