Straight Talk About Real Estate

According to CNN, three of the top ten cities to buy homes in now are located in Florida. There is one city in California that made it on the list - San Luis Obispo.

To read more: Where to buy now.

Wall-to-wall carpeting used to be a sought-after feature in a home. That seems to have changed in today’s market. Buyers prefer other types of flooring instead of carpeting. Wood floors, marble, travertine tiles, or even finished concrete floors are in style.

One reason for this trend is the desire for better air quality for inside the home. Allergy sufferers have never been able to tolerate carpet because of the dust that naturally gathers on carpet. Everyone is more concern about health issues more and more. The dirt and dust on the carpet certainly poses a problem.

Another reason to move away from carpeting is the difficulty of keeping the carpet clean. Carpets can get dirty quickly with daily traffic. On top of that, occasional spills and stains will require the carpet to be cleaned. Even if the cost of carpet cleaning does not concern you, the type of chemicals or detergent is a problem. Some people are sensitive to the chemicals or harsh detergent that is used to shampoo the carpet. No matter how well it is cleaned, residues are apparent.

There are many alternatives to carpeting that can be considered. Travertine tiles and hardwood flooring are very popular. Research different types of flooring and see which one suits your style and budget.

Property Taxes for Domestic Partners:

Beginning the lien date for the 2006-2007 fiscal year, any transfer between registered domestic partners will not trigger property tax reassessment. Registered domestic partners will be treated the same as spouses under California property tax laws (Senate Bill 565)

Notice to Terminate Tenancy:

As of January 1, 2006, landlords may give a 30-day notice to terminate their month-to-month tenants (unless rent control or subsidized housing rules apply.) Existing law requiring a 60-day notice of termination under certain circumstances no longer applies.

Megan’s Law Disclosure:

As of April 1, 2006, the revised disclosure language to reference the Megan’s Law website, which provides online information about registered sex offenders, is mandatory for residential landlords and sellers up to four units (Assembly Bill 1323)

The residential real estate market in 2006 was characterized by a gap between buyer and seller expectations. Sellers sensed that the peak of the market was approaching, yet still hoped to obtain the highest possible prices. Buyers’ sense of urgency waned as the number of homes on the market grew and they took longer to identify and subsequently purchase a home. - C.A.R. President Vince Malta

That is a good description of the state of the market. It also means that if sellers price their homes realistically, there are still a number of buyers ready, willing and able to buy.

“While we recognized that the frenetic sales pace of the past four years could not continue indefinitely, the housing market in 2006 did not fare as well as we initially expected,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The anticipated slowdown that began in October 2005 was heightened by dual natural disasters in the Gulf Coast, a significant drop in consumer confidence, rising energy and raw materials costs, and a series of Federal Reserve interest rate hikes that began in June 2004. Fixed-rate mortgages also hit and passed the psychological threshold of 6 percent, while adjustable rate mortgages passed 5 percent, ultimately causing a decline in affordability. Affordability concerns also will continue to constrain sales for many households in California throughout 2007, especially for first-time home buyers.”

Read more.

As a buyer or seller, you have to engage several service companies to complete the transaction. First, you need a title company to search and insure the title to the property. In some areas, title company will also perform escrow services. If not, you will need to use a separate escrow company. Some areas use a closing agent or attorney to facilitate the closing. You will also need a home warranty company if you are purchasing a home warranty or home protection plan.

Since there are many title companies, escrow companies and home warranty companies to choose from, who decides which ones to use in the transaction?

This is to be negotiated and decided upon between the buyer and the seller because they are the ones who will be paying for the services as part of their closing costs. But most buyers and sellers do not know anything about the various companies. Therefore, they rely on their real estate agent to choose for them.

It is a good idea to allow your real estate agent to choose. Your agent gives these companies repeat business, so the service he receives from affiliate companies will be better than if you deal with a company you have not worked with before. If you trust your real estate agent (if you don’t, you should find another agent), the title, escrow, home warranty and other service companies he or she recommends should be a good choice.

Is a home worth more if it has a pool?

Appraisers will value a pool at about $10,000 to $15,000. If your house has a pool and the neighbor’s house the same size does not have a pool, is your house going to sell for $10,000 to $15,000 more? Maybe not.

There are buyers who do not want a pool, and the feature of pool will actually turn them away, much less paying more for it. Consider for example, a retired couple. They would not want to deal with the maintenance of a pool. Or a single man or woman who do not swim and do not entertain. What use is a pool to them other than an additional expensive? Even a family with children may not want a pool for fear of accidents and the liability involved.

The value of a pool is rather subjective. You cannot definitely place a higher value on the house with the presence of a pool.

Housing payment takes a big chunk of your income.

The typical monthly mortgage payment that Southland buyers committed themselves to paying was $2,309 last month, down from $2,339 the previous month and up from $2,092 a year ago. Adjusted for inflation, current payments are about 2.3 percent above typical payments in the spring of 1989, the peak of the prior real estate cycle.

You can read more here:

H.R. 42: Freedom to Display the American Flag Act of 2005 has been signed into law. This law states:

A condominium association, cooperative association or residential real estate management association (i.e. a homeowner association) may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use.

However, this does not mean the owner can fly the flag anywhere he wants without restriction. It cannot be inconsistent with: (1) federal law or any rule or custom pertaining to the proper display or use of the flag; or (2) any reasonable restriction pertaining to the time, place, or manner of displaying the flag necessary to protect a substantial interest of the condominium, cooperative, or residential real estate management association.

The Homeowner Association can impose reasonable restrictions. So check with your Homeowner Association before you put up the flag.

When it comes to affordable housing, no region can top the Midwest: Nine of the top ten of the nation’s most affordable housing markets are there, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index.

Which large city in the Midwest is considered most affordable?
Indianapolis, where 87.4% of all the homes sold there during the second quarter were affordable to anyone earning metro area’s median household income, $65,100. The median price for a home was $120,000.

Read more to find out where you find the least affordable housing. It will be no surprise to you that 9 out of 10 least affordable cities are in California!