The Dangers Of Non-Disclosure

If you're trying to sell your house, you probably already know that you must, by law, disclose any problems associated with the property.  However, some sellers have a tendency to think that not pointing out the flaws in their home will bring them more money on the sale of their home.  And that may be true; however, there are many problems that could arise later on down the line due to non-disclosure of your homes past and present issues.

Non-disclosure lawsuits are on the rise.   Once upon a time it was a "buyer beware" market but not anymore.  Ask any realtor and they will tell you that non-disclosure ranks as one of their three biggest problems during the sale and after the sale.
Especially if the seller has made concentrated efforts to cover up the problematic issues.   Another thing to make note of is that after you have completed a repair, it must be documented.  If you complete a repair and it's not documented, and issues arise down the road, you could still be held liable.

A seller must disclose anything that could affect the property's value.  Things such as foundation problems, etc. and in some states you must also disclose any risk of natural disasters such as the home being in a flood plain or if there is a high risk of earthquakes.   Additionally, some states also require that you disclose neighborhood nuisances like a barking dog or any other type of noise nuisance.   The non-disclosure rule applies to everyone.  Even if you sell your house "as is" you still have to abide by the non-disclosure laws of your state.   Below are a list of items that should be included in your property disclosure report.  Some of these may vary from state to state.

• Completed repairs or repairs you were made aware of by the previous owners
• Past or present termite issues
• Any past or present water damage or moisture issues
• Mold
• Lead
• Natural hazards such as the risk of flooding, earthquakes and wildfires
• Past history that includes a notorious haunting or horrific events such as a murder, etc.
• A historical designation that limits remodeling
• Special zoning
• Environmental issues

When in doubt you should disclose.  However, just because you disclosed an issue, doesn't necessarily mean you are obligated to fix the issue.  You can negotiate the repairs with the buyer as terms of the contract.  Or you could just include an "as is" clause in the contract for the repairs in question.

Talk to your realtor about everything in your home that needs to be disclosed.  Don't ever keep information from your realtor.  He is there to help you.  Not disclosing important issues is serious business and could land you in a lawsuit later.  You will then have to pay for the repairs anyway.  So do yourself a favor and save everyone the time and trouble and be diligent about what your buyer needs to know.

California Pending Home Sales Drop in August

By Andrew Khouri

LA TIMES

Buyers signed fewer contracts for homes in California last month, as higher mortgage rates hampered demand, according to a new report.

Pending home sales fell 5% in August from July, the California Assn. of Realtors said Monday. The group’s pending-sales index dropped 9% from last year. The index represents contracts signed but not yet closed -- a sign of future market activity.
“Rising interest rates over the past several months at the specter of a tapering of the Fed’s stimulus program sent buyers to the sidelines in August,” the association's chief economist, Leslie Appleton-Young, said in a statement.

IN DEPTH: Five key takeaways on America's housing market 
Still, Appleton-Young said the Federal Reserve’s decision last week to maintain its massive bond-buying program should send mortgage rates lower, helping out prospective buyers.

Freddie Mac’s survey of lenders -- taken before the Fed’s announcement -- showed the average rate for a 30-year fixed mortgage dropped to 4.5% last week, from 4.57% a week earlier.

Though mortgage rates may take a breather for the moment, economists predict that the Fed’s announcement will only delay an eventually rise to 5% or higher.

The Realtors group also said inventory expanded slightly in August, although it remains extremely tight. The supply of non-distressed homes for sale inched up to 3.1 months in August, from three months in July.

A supply of six months is considered normal.

Apartment Building Boom Spreads to South Bay

By Nick Green, Daily Breeze

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Alta South Bay, seen in a rendering, will occupy a 4-acre site at Vermont Avenue and 223rd Street, with the six-story building wrapping around a five-story parking garage. 

Prompted by an “underserved” market for upscale rental housing in the area, a developer has broken ground on a $55 million, 246-unit luxury apartment complex close to County Harbor-UCLA Medical Center near Torrance.

Alta South Bay, as the complex will be known, will occupy a 4-acre site at Vermont Avenue and 223rd Street, with the six-story building wrapping around a five-story parking garage.

“With this building we’re providing a higher standard of living than currently exists in the older apartment communities in the area,” said Brian Hansen, Southern California regional director for Wood Partners in its Newport Beach office. “There are several hundred thousand jobs within a five-mile radius and we’re providing an affordable living option, but with a luxury experience and high-quality finishes in an undersupplied market.”

The 300,000-square-foot building at 22425 S. Vermont Ave. will house 143 one-bedroom units, 96 two-bedroom and seven three-bedroom. Amenities include a high-end “resort-style” pool deck, business center and Internet cafe.

Leasing is expected to begin in summer 2015. Rental amounts were not available.

It’s the fourth large apartment project in the county for Wood Partners, which was the nation’s No. 2 ranked multifamily housing developer last year based on its starts of more than 5,000 units.

This month the company opens a $75 million, 298-unit luxury apartment complex near Warner Park in Woodland Hills.

Next summer, a 290-unit apartment project in downtown Los Angeles is slated for completion.

In 2010, Wood Partners built a 218-unit Hollywood apartment complex it later sold.

Still, the company’s move into the South Bay is relatively unusual, said real estate investment company Marcus & Millichap in its third quarter report for the county.

“In the South Bay, where lower rents rarely support construction, apartment operations are holding up nicely,” the company said. “Vacancy continues to track lower in the area as household formation gains momentum, giving managers impetus to raise rents.”

Still, the apartment construction industry, which has benefited from low single-family home sales in the wake of the recession, is also showing signs it has peaked, Marcus & Millichap said.

Builders will complete 6,000 rentals this year, double last year’s figure, in what constitutes two consecutive years of above-average apartment development in the city of Los Angeles. That is expected to push vacancy rates up to 4.1 percent by the end of the year.

Analysts have noted that demographic change is driving the market, including young buyers who are rejecting homes in far-off suburbs in favor of rental units closer to jobs.

Alta South Bay is close to the expanding medical office market in Torrance, the ports of Los Angeles and Long Beach and several major corporate headquarters.

Indeed, its pending development has already prompted, in part, the construction of a retail plaza a few blocks away at the northwest corner of Sepulveda Boulevard and Normandie Avenue, just outside the Torrance city limits.

The 4.2-acre Harbor Gateway site was formerly the location of Ricky and Ronnie’s Drive-In.

The 50,000-square-foot Storm Plaza will have a 14,500-square-foot CVS pharmacy as its largest tenant.

“With the improving economy, demand for quality retail space has intensified,” said Jay Ahluwalia, president of Torrance-based Storm Properties, the project’s developer. “Since we started building, phone inquiries to our broker, and leasing activity, have increased dramatically.”

The area has more than 193,000 daytime employees, the company said.

The project will be built in three phases, in part because the site straddles the border of Los Angeles and the unincorporated county.

A second phase is projected to start this fall with all construction completed in 2014.

Big crowd Expected for San Pedro Meeting on Waterfront Progress

By Donna Littlejohn, The Daily Breeze

From the arrival of the USS Iowa battleship to the push to finish work on an inlet and plaza, progress on San Pedro’s waterfront has been noteworthy over the past year.

But there are miles left to go.

At 6 tonight, Port of Los Angeles officials will talk about where the project has been and where it’s going at an annual public meeting held to update the community on waterfront progress. The meeting will be at the Crowne Plaza Los Angeles Harbor Hotel in San Pedro.

“It’s always one of our most fun meetings, we get a big crowd,” said port Executive Director Geraldine Knatz.

Among the key topics tonight will be the redevelopment of Ports O’ Call Village, for years a mainstay along San Pedro’s waterfront that fell on hard times decades ago. The L.A. Waterfront Alliance, the development team now in exclusive negotiations with the port for the project, will unveil some of its preliminary ideas at a public meeting set for 5:30 p.m. Nov. 19 at the Warner Grand Theatre.

There are about 20 days left on the original 240-day exclusive negotiation time period between the developers — The Ratkovich Co. and Jerico Development — and the port, which will likely ask for a 120-day extension.

“Meetings with them have been very good,” Knatz said.

But Knatz also will touch on the waterfront’s overall progress in 2012, a banner year for the project. Among the biggest hits: the World War II battleship that home berthed in San Pedro after years of discussion and an initial rejection by the port, which said there would be no room.

“They’ve actually exceeded their numbers that we’d forecast for the first year,” Knatz said of how the ship has done since arriving in July 2012. “We had forecast 220,000 (visitors) for the first year and they actually had about 330,000.”

Also opening in the summer of 2012 was Crafted at the Port of Los Angeles, where first-year attendance was about 86,000, far below the ambitious 200,000 visitors initially projected.

The venue, Knatz said, will be diversifying by bringing in possibly a restaurant and/or brewery. A women’s roller derby team recently relocated to the remodeled warehouse.

“Part of building a critical mass is staging big events here,” Knatz said.

A visit in October by the famed Cirque du Soleil troupe at San Pedro’s outer harbor is expected to bring 46,000 visitors, Knatz said, and discussions are ongoing with other promoters to bring events “on the scale” of Cirque to the area.

One of the most visible projects through 2012 has been the ongoing construction on creating a new inlet — or water cut — and town plaza just north of the Los Angeles Maritime Museum at Sixth Street and Harbor Boulevard.

Work on the water cut is finished and the land-side improvements — the plaza will be able to hold 10,000 people for outdoor events and performances — will be done by next summer in time for a tall ships festival coming to the port in August 2014.

In Wilmington, work is underway on the Wilmington Marina Parkway, with a youth sailing facility and the Avalon Triangle Park set for the future. A Red Car museum also is planned in the old Bekins building, but rehabilitation has taken longer than anticipated on that structure, Knatz said.

It was 10 years ago in October that the port hired a New York-based architectural firm to come up with initial plans for a waterfront makeover.

Plans for a “bridge-to-breakwater” promenade with attractions were redone over the years. Work has been done in fits and starts, but progress has been back on track in recent years.

A remade Ports O’ Call, seen as a cornerstone of San Pedro’s waterfront, undoubtedly will be the focus of the next several years. Developers are expected to announce an anchor tenant in coming months as discussion continues on a possibe new name for the 30-acre site.

Six Questions You Must Ask Your Real Estate Agent

Finding the right real estate agent can mean the difference between a quick sale or not making a sale at all.  Therefore, it's imperative that you ask your potential real estate agent some qualifying questions before you make any type of commitment.   Below are a few questions you must ask if you want to find a reputable, qualified realtor to sell your home quickly and effectively.

1.  Do you have any references?  Always check the references of the person you're thinking about hiring.  If they aren't good, find another realtor.  Don't just settle for the first realtor that comes along, unless your research proves they are in fact the most qualified.

2.  What issues do you see with my home?  A seasoned realtor will be able to quickly spot the potential drawbacks of your home.  And an honest realtor will be willing to be upfront with you and discuss the drawbacks and how they would overcome them.  If a realtor doesn't point out any flaws, it could be they're inexperienced or they 're just trying to get the contract to sell your home.  You need to find a realtor who will be upfront and honest with you and one who can communicate effectively with you at all times.

3.  How many clients do you have currently?  If you find a realtor that currently has 50 listings, his time may be spread too thin and he may not have enough time to spend marketing your home.  Additionally, if you find a realtor that has too few clients, it could be that he doesn't have many referrals.  Or it could be that he is new and inexperienced.  In either case, you will have to weigh the facts in order to decide if that person is right for you.

4.  Will you provide me with a CMA (comparative market analysis?)  An experienced realtor will come to your first appointment with a CMA already pre-prepared for you.

5.  Is the area growing or declining?   A good realtor should be familiar with the area and its current trends.  In addition, a seasoned realtor should be able to spot the signs of a neighborhood that is in decline and offer some recommendations to you.

6.  How will you market my home?  Your realtor should perform all the marketing tasks that it takes to sell your home quickly.  That includes listing your home on MLS and as other many internet sites as possible.  They should also have quality pictures and virtual tours taken.  And have printed color flyers and brochures available.  Additionally, they should perform as many open houses as necessary.  If your realtor tells you they don't do open houses, consider finding another realtor.

Finding the right realtor to sell your home is one of the most important decisions you will need to make.  Hiring the wrong realtor could cost you thousands of dollars and the loss of potential buyers.   Therefore, you should take all the time you need to make an educated decision about who you want representing you and your home.

Home Loans Rates May get a breather

Fed's decision on its stimulus is expected to hold down mortgage rates, but not for long.

Daily Breeze-- By E. Scott Reckard & Andrew Khouri

The Federal reserves decision to stay the course on its stimulus program should provide mortgage borrowers relief from the tend of higher rates-- but not for long. Economists say the announcement only delays the inevitable: a return to 30-year mortgage rates at 5% or higher. Fannie Mae, the largest mortgage finance company, expects the 30 year rate will be at 5.25% by the fourth quarter of 2014, and Moody's Economy.com is projecting it will hit 5.5% by that time.

We're expecting the economy to return to more normal activity said Celia Chen, a senior director of Moody's economic research staff, specializing in housing economics. Fixed mortgage rates were lower this week even before the Fed announced its surprise decision. The average for a 30-year loan fell to 4.5% from 4.57% last week according to Freddie Mac's survey of lenders, conducted through early Wednesday. The 15-year loan declined to 3.54% from 3.59%

Then Wednesday afternoon, Fed chairman Ben S. Bernanke stunned Wall Street by saying the economy is still too sluggish to start tapering off on the stimulus, as many economists had expected the Fed would do. For now, Bernanke said, the central bank will continue buying $85 billion a month in Treasury and mortgage-backed securities, pumping money into the economy and pushing down interest rates. The terms that lenders were offering on 30-year loans eased immediately after Bernanke's announcement, said Jeff Lazerson at loan brokerage Mortgage Grader in Laguna Niguel.

The rate for a 30-year loan with no discount points dropped to 4.375% from 4.5% , Lazerson said. To obtain a 30-year fixed mortgage at 4.125% borrowers were paying on point down from two points Wednesday morning. It remains to be seen whether the threat of higher rates will put a damper on the housing recovery. The median home price has flattened over the last two months in Southern California after a remarkable run of big price increases over the last year. That softening could be related to mortgage rates, which have risen more than 1 percentage point since May.

But home sales remain strong, according to a report Thursday from the National Assn. of Realtors. Sales of previously owned homes reached their highest level in six years. August's annualized rate of 5.48 million  units is 13.2% ahead of the same month last year.

Prices are up nationally as well, the Realtors group reported. The median sale price for resale homes in August rose 14.7% from a year earlier to $212,100, the biggest year-over-year increase since the height of the housing bubble in 2005. In the short term, rising rates are driving more buyers to close on homes, fearing rates will rise even more, said the groups chief economist, Lawrence Yun. But further rate increases may take buyers out of the market.

"Tight inventory is limiting choices in many areas," Yun said in a statement "Higher mortgage interest rates mean affordability inst as favorable as it was, and restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing a purchase". Meanwhile, the Federal Reserve on Wednesday clearly expressed reservations about the strength of the broader economic recovery.

Retail sales and industrial production are growing more slowly than economists had expected, and consumer sentiment fell for the second straight month in September to the lowest  level since April, noted Freddie Mac chief economist Frank Nothaft.

This is part was why the Fed chose to keep up its massive bond buying program, Nothaft said.

It also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May.

But Nothaft also said the longer-term trend is for 30-year home loans which in may dropped to as low as 3.35%    on average, to rise back toward more normal levels, meaning mortgages starting with a 5. Freddie Mac projects that the rate will average about 4.5% or less for the rest of this year, "and stimulate further improvement in home sales and home-price appreciation," Nothaft said in an email.

However, he said we are still projecting the 30-year fixed-rate mortgage to be at or above 5% by the end of 2014.

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How The Top Realtors Sell So Many Homes

Have you ever wondered how the top selling realtors sell so many homes?  It's because they know the tricks of the trade that will sell your home quickly and the things that will get you the highest possible offers.   Let's talk about some of those little tricks realtors use to help sell your home at lightning speed.

1.  Don't give in to the temptation to overprice your home.  You should find out exactly what your home is worth, then take 15 to 20 percent off of that.  This creates a buying frenzy.  You will begin to receive multiple offers and once a buyer wants a home, they don't want anyone else to steal it out from under them.  That means you could quite possibly start receiving offers that are actually over your asking price.  This is the number one strategy used by top selling realtors to sell your home quickly and for top dollar.

2.  You must keep your house in pristine condition at all times.   You never know when someone might want to tour your home.  Most people are busy and won't want to wait until you are available.  They will go on to the next listing if yours is not available when they are ready to view it.   Therefore,  try to avoid adding a by appointment only clause to your listing whenever possible.

3.  You only have one chance to make a good first impression.  Your curb appeal must be clean, crisp and inviting.  It  won't matter how great the interior of your home looks if you can't get the buyer through the front door.  Talk to your realtor about how to enhance your curb appeal and how to keep those good impressions going throughout your house.

4.  De-personalize your home.  Remove all personal decor and family photos from your home.  It's extremely important that your buyer can easily picture himself living there.  He won't be able to do that if he sees your wedding pictures and pictures of your dog around every turn.

5.  Remove anything you are not using from your home.  Pack all your clothes  except for the small amount you will need over the next few months.  Pack up as much furniture and decor as you can.  The goal is to make your home appear bigger.  A half empty closet makes your home seem like it has plenty of closet space versus an overstuffed closet that your buyer will perceive as too small.  The same goes for your furniture, etc.  

6.  Brighten your home as much as possible.  Open all your window coverings and if you have dark areas in your home, you should consider adding some additional lighting.  A light, bright space will make your home more appealing and make it feel more warm and inviting.  Many buyers won't even consider buying a home that appears dark and cave like.

Top selling realtors have many tips and tricks they use to sell homes,  these are just a few.  Talk to your realtor about the different ways they can recommend that would help sell your home more quickly.  A top producing realtor can make the difference between a quick sale and no sale.  He can also make the difference between a mediocre offer and multiple top dollar offers.  That's why it's in your best interest to do a little research and not hire the first person who comes along to sell your home.  

How to Yield Better Leads and Results Using LinkedIn

How to Yield Better Leads and Results Using LinkedIn

LinkedIn has been the choice social network for professionals for a number of reasons. It’s not as cluttered as Facebook, it’s not as limiting as the 140 plus character limit for Twitter and more importantly, it’s a source of additional leads to grow your business or network.

People have used this social network in various ways and yielding varying results. Depending on what you intend to do or what you want to accomplish, you might have tried using LinkedIn as well. Ask any company owner or manager, as well as your respective peers, and they will tell you that they have are using LinkedIn to some extent some with dazzling results, others not so much. You can push how LinkedIn can work for you even further. Here are some ideas and motivators you can try out the next time you log-in.

Understand Why You Joined – Many real estate marketers think that the only reason they need to join LinkedIn is because it is another avenue to market or announce new properties. Others think that hanging around LinkedIn for a few minutes a day can automatically generate leads without having to sweat so much. There are even a few who think that LinkedIn is no different from other social networks like Facebook. By knowing your goal, you can be effective in managing your time while plunged inside LinkedIn’s vast network and services.

Groups – It can be very easy to classify your contacts on LinkedIn. It’s twice as easy to expand your chosen network by joining the different LinkedIn groups that are active. The LinkedIn groups do not just open the doors to new people who might potentially be your ally or even a prospective property buyer. They can also be a way to open new ideas and marketing strategies for your business.

Minor Kitchen Remodels that Make a Huge Difference

Giving your kitchen a makeover doesn't have to be a huge project. In fact, there are a number of low-budget ways to give your kitchen a brand new look without investing too much dough.

Here are just a couple of minor projects you can undertake that will breathe new life into your kitchen's tired aesthetic:

Install New Light Fixtures

If your current kitchen is lit by one central fixture, you might have an off-balance ambiance. Consider adding a few more fixtures to break up glare and create a perfect blend of decorative and functional lighting. Bar lights, under-cabinet lights or other ambient lighting will help give a new feel to your kitchen. 

Cabinet lighting has been a hot trend recently, and for good reason: Beautiful lighting can make an ordinary space shine.

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Change the Colors

A fresh coat of paint or a bright accent wall can really make your kitchen pop! Alternatively, consider creating a mosaic tile backsplash or using vintage or colorful decorative accents for visual interest. 

Bold color stripes create an eye-popping accent wall in this kitchen. Visit our color schemes guide for more ideas.

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Upgrade the Countertops

Changing out countertops is a great way to give your kitchen an all-over new look without too much investment. You can choose stone materials, like marble, slate or granite or, if you're really on a budget, just change out colors on your laminate counters and add a new color or pattern to the room.

New countertops can add value and life to a kitchen without requiring an entire remodel.Click here for a plethora of granite colors to spark your imagination.

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Revamp the Cabinets

In most kitchens, cabinets cover a large amount of real estate. Because of this, updating or changing them out can have a huge effect on the overall look of the room. If you can't afford to completely replace your existing cabinets, try revamping your old ones. A popular trend lately is glass-front cabinets. Simply remove your cabinet doors, cut out the front panel (leaving a two- to three-inch border around it), and insert clear glass panes. This gives your kitchen an open and airy look.

If replacing cabinets is outside your budget, you can always repaint cabinets or stain a light wood darker for a whole new look and feel. Even updating the cabinet handles alone can make a big difference!

Painting old cabinets and adding glass panels can be an inexpensive way to revamp the look of your entire kitchen. [+] More Pictures

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Add an Island

If you have the space, adding or upgrading an island not only transforms your room; it may also give you more space to cook, chop and serve up food. You can choose to get an island installed professionally - and have it match your countertops - or you could opt for a roll-away island, which you can typically find at any major furniture store or outlet. Most feature underside cabinets and drawers, giving you additional storage space. 

If you enjoy DIY projects, you can try refinishing an old work table into a beautiful and functional island. Source: Vintage Kitchens Gallery.

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Create a Bar

If part of your kitchen is blocked off by a wall, consider knocking half of it out and turning the lower half into a bar. This can open up space between rooms and create a better space for entertaining. You can even get bar stools to match your décor to really pull the room together. 

Designer Kitchens LA updated this small kitchen with a cutout in the wall for a small bar.

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Are you tired of your kitchen's look, but just don't have the funds to do a full-scale remodel? Give your kitchen a facelift with one of these minor, low-budget projects.

Read more: http://www.kitchen-design-ideas.org/minor-kitchen-remodels-make-huge-difference.html#ixzz2f6PXpQym

Home Prices Level Off

Prices in August were unchanged from July and June, a sign that the housing market may be returning to normal after rapidly rising in the first half.

By Andrew Khouri and Alejandro LazoLA TIMES

Southern California home prices stayed flat in August for the second straight month, an indication the market may be normalizing after a period of torrid price hikes.

The median home price remained at $385,000 in August, unchanged from July and June, giving hope to many would-be buyers who had been getting rapidly priced out of the market.

"It's a good sign that home prices are slowing down," economist Gerd-Ulf Krueger said. "We are less in danger of getting into a bubble."

The median is still up a whopping 24.6% from August 2012.Home values have shot up sharply this year as buyers rushed into the market, lured by historically low mortgage rates and prices. They found few homes for sale amid crushing demand — supercharged by competition from cash-laden investors.

The cooling off comes amid expanding supply and higher mortgage rates. Investors have also pulled back slightly, though they still account for about 1 in 4 home purchases across the region.

Real estate agent Amber Dolle said she's seeing more homes hitting the market in the San Fernando Valley. That's caused some sellers — who had unrealistic expectations of prices — to temper their enthusiasm, she said.

"Some people are having to bring the price down slightly," Dolle said.

The number of listings rose in August in the Inland Empire, as well as in Los Angeles, Orange and Ventura counties, according to Realtor.com. San Diego County was the only Southland region to see a decline.

The growing supply is a good sign, Krueger said, especially because the supply is primarily coming from homeowners rather than banks looking to unload repossessed properties.Sales of foreclosed homes continued to fall, hitting 7.1% of the resale market — the lowest rate since June 2007. In February 2009, foreclosure resales peaked at 56.7%.

"This is really just becoming a conventional market," said Bill McBride, who writes the financial blog Calculated Risk. "That is such a positive.... These are real, conventional sales, and everybody who is buying is paying cash or qualifying under pretty strong underwriting standards."

As prices took a breather, the number of sales hit the highest level for an August in seven years, an indicator of expanding supply. Buyers purchased 23,057 homes last month in Los Angeles, Orange, Ventura, San Bernardino, Riverside and San Diego counties. That's up 2.8% from a year earlier, but down slightly from July.

But inventory remains tight, representing only about a three-month supply at the current home sales pace, according to the latest data from the California Assn. of Realtors. A supply of about six months is considered normal.

That makes some see more price increases ahead.

"I can't envision a market that is topping out with three months' supply," said economist Christopher Thornberg, founding partner of Beacon Economics. "It makes no sense."

An increase in listings may not hold down prices, Thornberg said. Sellers will need a place to live too, bringing more demand.

"For every home going on the market, there is someone looking to buy," he said.

The median sales price is the point at which half the homes sold for more and half sold for less. That means it is influenced by the mix of homes selling as well as actual home values.

Buyers continued to purchase more homes in pricier neighborhoods in August, while sales fell in more affordable suburbs where investors have scooped up much of the lower-cost inventory.

Compared with August 2012, buyers last month purchased 31.4% more homes in the so-called move-up range of $300,000 to $800,000. The number of homes that sold for less than $300,000 plummeted 24.9% from a year earlier.

Slow income growth in Southern California does not support higher prices, said Richard Green, director of USC Lusk Center for Real Estate. Over the next five years, he said, prices should climb at the pace of inflation.

Owners shouldn't expect the value of their home to soar in the next year, Green said. But neither should they expect it to fall.

"We are about where we should be right now."

The Top Five Things Most Buyers Neglect To Check When Buying A Home

Buying a home will probably be one of the largest purchases you make in your lifetime.  Therefore, it's vitally important that you inspect everything on that home before signing the contract.  Because something that may seem small and insignificant could turn into a loss of thousands of dollars in the long run.   Below are just a few of the most common areas that many buyers neglect to check when buying a home.

1.  Open and close all the windows.  Do they function properly?  Are they fogged?  If they don't function properly there could be underlying problems with the house such as foundation issues, etc.  You never want to skip this step.  Window replacement can be very expensive.

2.  Turn on all the faucets to see if the drains are draining properly.   If the home was a foreclosure, there may be some damage done by the previous owners somewhere deep in the pipes.  Damage that is not visible to the naked eye.  Sometimes branches from large trees or broken pipes could  cause drainage problems as well.  Underground pipe replacement is another very costly expense.

3.  Taste the water.  When you have an old house, some of the pipes may be so old that they can drastically affect the way the water tastes.  Not to mention the quality of the water and the purity of the water coming through those pipes.  This is the same water you will be making your ice with, showering with, washing your clothes with and more.  Installing a whole house water filtering system could get expensive.

4.  Check all of the light fixtures and switches.  Changing a light fixture or switch due to an electrical problem may not seem like an expensive item.  However, if the electrician has to trace the problem and it turns out you have a bigger electrical problem than just a simple fixture or switch, this could become a big expense very quickly.

5.  Most people check either the air conditioner or the heating system depending on the season.  However, most people don't think to check both.  You should check both the air conditioning and the heating system no matter what season it is.  You don't want to buy your home in the summer and then, when the  winter rolls around, find out that your heating system doesn't work and will need to have it repaired or worse to have it replaced.

6.  Test the fireplace.  You need to make sure that your
fireplace is functioning properly and that there are no flaws or blockages that could potentially cause a fire to break out in your new home.

Luxury Kitchen Designs

Luxury Kitchen Design: Today's expensive homes are only as luxurious as the kitchens they contain. Luxury kitchens call for extraordinary details along with the use of rich materials and colors. Scroll down to see the complete gallery below.

Everything about this kitchen exudes elegance, with its the high coffered ceilings, antique white cabinets, decorative stained glass, and a contrasting wood island topped with gracefully shaped granite.

Ultimate Investment: As the most valuable room in any house, a luxury kitchen adds tremendous worth to a home. Unlike an expensive car, which can depreciate quickly, an expensive kitchen is an investment that creates value over a longer period of time.

Price Points: In my experience in the kitchen remodeling industry, I'm convinced that the old adage "You get what you pay for" holds true when it comes to building kitchens. Luxury appliances and expensive kitchen cabinets will last much longer and retain their value far better than mid-range and low-end options. I've seen mid-level cabinetry crumbling and falling off the walls after only 10-15 years. Cheap import cabinetry may "look" luxurious today but will end up in a dump in a very short time. Your best bet is to buy it right the first time. Considering a luxury kitchen design is a great place to start. A luxury kitchen can cost you anywhere from $30,000- $60,000.

Luxury Kitchen Cabinets: Cabinetry is the largest and most important investment in any kitchen remodel. Luxury kitchen cabinets often feature high-end American woods like Cherry and Walnut with rich, dark stains. Exotic woods such as Sapele Mahogany or Brazilian Cherry can take it to another level. Specialty painted and glazed finishes can also make for a luxurious kitchen. For a downright opulent look, some cabinet finishers use gold leaf to accent cabinetry details. High-end kitchens often feature flush inset, frameless, or beaded inset cabinets with deluxe undermount soft-closing drawers.

Luxury Appliances: To create a beautiful focal point in the room, an artfully crafted wood hood makes a stunning design statement. For extra elegance, luxury appliances can be framed in with decorative carved posts or fluted columns. Occasionally the appliances themselves are panelized with wood. Luxury kitchen sinks can be crafted of heavy gauge stainless steel, polished or hammered copper, or even marble or granite.

         

                





Read more: http://www.kitchen-design-ideas.org/luxury-kitchen-design.html#ixzz2ecWoLHcF

Jumbo Loans getting cheaper

Lenders are now offering rates near & sometimes lower than interest rate for conforming loans.

With mortgage rates rising to levels not seen for two years. Its hard work finding a great deal on a home loan, unless you're rich enough to need a jumbo mortgage. These loans on steroids certainly aren't for everyone: Jumbos are defined as mortgages over $625,500 in much of California and more than $417,000 even in places where homes are cheap.  But if you can qualify Americas banks stand ready to reward you with a rate nearly as good or even better than what you can get for a normal loan. This is an unprecedented situation because jumbos historically have come at a premium price, said Brad Blackwell, executive Vice President of No. 1 mortgage lender Wells Fargo Home Mortgage.

"This is a new phenomenon-- something we've never seen before," Blackwell said in an interview.
Freddie Mac said Thursday that lenders were offering non-jumbo 30 year fixed rate loans to solid borrowers at an average of 4.57%, up from 4.51% last week and a recent low of 3.35% in May. The borrowers would have paid 0.7% of the mortgage amount in upfront lender fees to obtain the rates.

Rates for 15-year fixed mortgages and adjustable loans also rose, a trend attributed to stronger growth in the gross domestic product and positive surveys on manufacturing and home building. Additional encouraging reports Thursday on unemployment and hiring drove the yield on the 10-year Treasury note -- a mortgage-rate benchmark  to nearly 3% its highest level since July 2011. Home lending rates were volatile but continuing to move higher, mortgage professionals said. But that same improving economy also has heated up competition among lenders to make jumbo mortgages, which are too big to be backed by Freddie Mac or Fannie Mae.

They are written mainly for affluent residents of the East and West coasts, where home prices have risen rapidly over the last year.

Jumbos, like all mortgages not backed with a government guarantee, nearly disappeared after the financial system cratered in 2008. Rates jumped nearly two percentage points above those for Fannie and Freddie loans, compared with a usual spread of one-eight to three-eighths of a percentage point higher, said Keith T. Gumbinger, Vice president of financial publisher HSH.com

HSH and fellow data tracker Bankrate.com calculate that lenders are now offering 30-year fixed-rate jumbo loans at the extreme low end of their normal range- an eighth of a percentage point or so above so called conforming rates.

But the Mortgage Bankers Assn. said loans actually made within the last few weeks showed average jumbo rates lower than those for the smaller conforming mortgages that can be sold to or guaranteed by Freddie and Fannie.

The trade group said the average contract rate for a conforming loan with a 20% down payment was 4.73% last week, compared with 4.71% for a similar jumbo loan. The difference was more pronounced in the "hybrid" loans, popular with affluent buyers, that have a fixed rate for five, seven or 10 years before becoming adjustable.

Wells Fargo's Blackwell said his bank was making 30 years fixed jumbos with no upfront costs to borrowers at 4.75% on Thursday, compared with smaller conforming loans at 5%. For a loan with a rate fixed for the first 10 years , Wells was writing mortgages at 4.125% for jumbo borrowers compared with 4.875% for conforming loans, he said.

The reason for the difference is that Wells Fargo has been keeping low-risk jumbo loans on its books rather than selling them as fodder for mortgage-backed securities. That was a good deal for Wells because big banks are flooded to the gills with deposits that are costing them virtually nothing. Wells Fargo, for example, reported that as of the second quarter this year it was paying an average of 0.14% a year interest on its $1 trillion in deposits.

Over the last three years, Wells Fargo has added about $100 billion in home loans to its own portfolio. That's not enough to pose a risk to a bank with $1.4 trillion in total assets, Blackwell said, but plenty to make a big return on the cheap deposits its lending out.

Trump Golf Course Employees win $475k settlement

Local News:


Trump National Golf Club in Rancho Palos Verdes. (File Photo by Brad Graverson/Staff Photographer) 

By Bill Hetherman, City News Service

POSTED: 08/28/13 - DAILY BREEZE|

LOS ANGELES - A judge Wednesday approved a $475,000 class action settlement of employment claims by nearly 1,000 current and golf course employees at the Trump National Golf Club in Rancho Palos Verdes.

“This was a hard-fought, but well-considered resolution,” Los Angeles Superior Court Judge Mark Mooney said as he signed the settlement agreement, which puts a stop to a trial of consolidated lawsuits brought by lead plaintiffs and class representatives Lucy Messerschmidt and Dave Perry.

The settlement involves 913 golf course employees who worked for Trump National from December 2004 until February this year. According to the plaintiffs, 298 class members submitted claim forms. About a third of the total award, or nearly $160,000, will go to attorneys for their work, the same court papers stated.

Employee complaints generally included non-payment for missed meal and rest breaks. Some employees said they were not reimbursed for business expenses and objected to managers and supervisors getting tips.

Messerschmidt, a restaurant hostess at Trump National, also was taken off the schedule while Donald Trump was on the premises, because he “likes to see fresh faces” and “young girls,” according to her lawsuit, which was filed in December 2008.

Messerschmidt alleged she was fired after speaking out against alleged age discrimination and meal and rest period violations at the golf course, where she was hired in August 2006.

Messerschmidt claimed she was berated in front of co-workers after complaining, and that her manager falsely claimed that she had given a notice of resignation and unsuccessfully tried to coerce her to sign a document stating that she was quitting her job.

Perry, a Trump National valet who sued the golf course in March 2009, alleged that he was suspended twice in 2008 after insisting on taking meal breaks.

Outside the courtroom, the attorneys declined to comment on the settlement. However, in their court papers the plaintiffs’ lawyers stated that the parties “repeatedly tried to resolve this litigation for more than four years before reaching a settlement.”

Both sides took part in four mediation discussions before an agreement was reached, according to the plaintiffs’ attorneys court papers.

“The courage it took to sand up to (Trump) here should not be underestimated,” the plaintiffs’ lawyers court papers stated. “Few people want to confront their employers, let alone sue them. This is especially true where plaintiffs’ former employer is an entity owned by Donald Trump.”

The plaintiffs’ attorneys stated in their court papers that a trial would not have been easy to win.

“Trump contends that the class would not be able to establish its entitlement to the full extent of the relief it is seeking and promised to mount a vigorous defense,” according to the plaintiffs’ lawyers’ court papers. “On the other hand, plaintiffs believe there is ample evidence to support the class allegations. Under these circumstances, and in light of the risks inherent in further litigation, it is reasonable for plaintiffs and class counsel to elect to settle the action.”

Home Upgrades That Will Provide The Most Return On Your Investment

As a homeowner you should always ask yourself what the return on your investment will be - before you begin any upgrade to your home.  While right now you may think that you'll be living in that house forever.  But most people don't live in the same house for their entire lives.   Therefore, you must consider whether or not your upgrade will pay for itself when you are ready to sell your home.

There are certain repairs that will need to be completed regardless of the return.  For example , if your air conditioner goes out or your roof becomes damaged and needs to be replaced.  You don't have any choice but to replace these items.  These are the types of upgrades that bring up your home's value regardless.   However, there are certain things you can do to your home that will always bring you a good return on your investment.  Below are some of the upgrades that most Realtors recommend for the best ROI.

1.  Interior and exterior painting are generally the most inexpensive of all upgrades, especially if you do the work yourself,  and will instantly raise the value of your home.

2.  A new front door.  A good quality steel door can be a bit expensive, usually more than a thousand dollars; however, a new front door will enhance your curb appeal in a big way.  Remember, the first thing everyone will see when they pull up to your home is the front door.

3. Kitchen/Bathroom Remodel or office addition. The most important part of the house most would say is the kitchen. A major bonus is to remodel the bathrooms or to add an office addition

4.  Most people don't realize that the addition of an outdoor deck or patio is a great amenity that's in huge demand and will raise the value of their home.

5.  Believe it or not quality custom garage doors are another surprising upgrade that most people never consider but should.

There is a common misconception that adding a second story to your home is a good investment; however, while it's nice to have, the ROI versus the expense of the project don't generally bring a good return.  Especially if the other homes in your neighborhood don't have second floors and yours does.  On the same note, if all the homes in your neighborhood do have second floors and your does not, then adding a second story would increase the value of your home.

The best rule of thumb is to never upgrade your home beyond the value of the other homes in your neighborhood; otherwise, you will more than likely not get your money back.  Talk to your realtor about which upgrades they recommend for your home.  Your realtor will be familiar with the other homes in your neighborhood and will be able to make an educated recommendation for you based on his experience and knowledge of the area.

How To Find The Best Real Estate Agent

If you're considering the purchase of a home, you'll need a real estate agent.  But what if you don't know any real estate agents?  How do you learn where to find the best real estate agents in your area?  Below are some things you should look for when considering which real estate agent is right for you.

1.  Reputation.  Check their references, social media and online reviews for your real estate agent before deciding who you want to represent you.

2.  Licensed.  All real estate agents must be licensed, but the industry is somewhat unregulated.  You will need to make sure they have a license. Then you will need to confirm their license with your local real estate board.  The real estate licensing board is a reliable source of information that can also provide you with  complaints or the legal records of any licensed realtor.

3.  Experience.  The experience of the realtor you choose is of utmost importance.  An inexperienced realtor could cost you thousands of dollars due to their lack of working knowledge and experience that only comes with time.   Additionally, they need to possess technology skills, negotiating skills and the proper social skills needed to make winning deals while competing with other agents.

4.  Referrals.  The best way to find a reputable real estate agent is by asking friends, family and acquaintances for a referral.  This way you will have some type of confirmation about their performance based on your referrals previous experiences with them.

5.  Customer Service.  You need to find a real estate agent you feel comfortable with and one that you feel like you can easily talk with.   Any real estate agent you choose needs to display a positive attitude and show you that they will do everything in your best interest.

6.  Large Agency Or Small Agency?  A large real estate agency generally has access to more staff and state of the art tools and equipment.  Additionally, they usually  know more people due the number of staff members within their agency.  The more agents they have at their disposal equals more experience, more connections and more knowledge.   However, if you find a realtor in a small agency that has a multitude of experience and knowledge, don't let the size of the agency stop you from making a good hiring decision.

30-year rate drops from 2-year high

Fixed mortgage rates backed off this week from a two-year high. Freddie Mac said, with lenders offering the 30-year home loan at an average of 4.51% compared with 4.58% a week ago.

The 15-year fixed-rate mortgage averaged 3.54%, down from 3.6% according to Freddie Mac. starting interest rates for popular typoes of variable-rate loans were up slightly, the McLean, Va., housing finance giant said.

Six Questions That Will Help You Decide What To Offer

Here are the top six questions to ask yourself when putting together an offer.  These questions will help you get to a winning offer quickly.

1.  What is the fair market value of the home?  Check out the competing homes in the area and what they are going for but make sure you are comparing similar properties.  Then find out how much those types of homes have sold for in that neighborhood over the past 90 days.

2.  How much can you afford?  You must make sure that you make an offer within the range of what is affordable for you.   You will want to also stay within your pre-approval range as well.  Does that neighborhood have HOA fees that you need to consider?  If so, then prepare your offer accordingly.

3.  Do you have competition?  Your agent will need to check with the listing agent to find out if there are any competing offers.   Even in this market there are some properties and some neighborhoods in which multiple offers are received.  If this is the case, your agent will need to find out how many offers are on the table.  If there are several offers, you will want to submit a higher offer.

4.  Has the listing been reduced?  Check to see if the listing has been reduced and by how much.  Are the sellers motivated?  How long has it been on the market?   Are there other homes in the area with similar price reductions?   How many days were there between each reduction?

5.  What is the condition of the home?  You will need to get a home inspection and find out how much each repair is going to cost and reduce your offer to accommodate those repairs.  The seller is probably already aware that they will need to reduce the price of the home if extensive repairs are needed.

6.  How much do you really want this house?  Of course you should not submit an offer that is way above the asking price or above the fair market value unless you have money to burn.  However, you may want to submit an offer that is closer to the asking price if you are really anxious to get the seller to accept your offer and not someone else's.

These are just a few questions that you should ask yourself before you sit down with your agent to put together an offer.   Take the time to submit an offer that works for both you and the seller and before you know it, you will be living in your new home.

San Pedro High students to be offered Marymount classes for college credit

Students at San Pedro High will soon be able to take advanced classes that offer college credit honored by nearby Marymount California University at no cost.

The arrangement, which is scheduled to start by mid-September, is the first time high school students within the Los Angeles Unified School District can earn college credits from a four-year, private university, LAUSD officials said in a statement last week.

“I’m really excited for this partnership and the great opportunity it is for our kids,” LAUSD board President Richard Vladovic said. “It will allow them to be a step ahead when they graduate high school.”

The two institutions first began discussing the arrangement about a year and a half ago, when Marymount College, a liberal arts university, was looking for more classroom space.

San Pedro High, which was then close to opening a second campus to relieve overcrowding of its own, caught the college’s attention.

Marymount hoped to use district classrooms for teaching college students at night. In return, the university offered to train and mentor San Pedro teachers — about 20 signed up — who will become adjunct professors and receive a stipend. Then, students who excel on required tests can take Marymount classes, typically during daytime hours, for college credit.

http://www.dailybreeze.com/social-affairs/20130828/san-pedro-high-students-to-be-offered-marymount-classes-for-college-credit