When is Disclosure too Little, too Much or Just Right?

Real estate agents walk a fine line regarding disclosure in meeting their fiduciary responsibility to their clients. The question is when is disclosure too little, too much or just right? The truth is that there are no absolute answers, just common sense practices that an agent can follow to best serve their client and protect themselves.

We recently took a look at the C.L.U.E. report which has been available for approximately the last 8 or 9 years. Re-Insider finds this report to be a great example of the variety of information that can find its way into today’s real estate transactions.

The first question that should always be looked at when vetting disclosure information is, is there a legal requirement in the California Civil Code for a particular disclosure of information? If there is, for example the NHDS or TDS in most residential transfers, then it has to be in the disclosure information to the buyer.

But what about non legally required reports, C.L.U.E. being a good example? In the case of C.L.U.E. reports being provided, this grew simply from CAR adding a question to their SSD form which was then incorporated into the SPQ on page one. This is a form that has grown over the years to 10 questions in which a seller is advised, by CAR, to disclose to a prospective buyer of their residential property. The question on the CAR SPQ regarding insurance claims is simply “Insurance claims affecting the property in the last five years”— answer to be given as simply yes or no.

So how did the additional information contained in a C.L.U.E. report, not requested or required, come into use and does it potentially pose a liability to the agent? The quick answer to the first question for coming into use is money. What was once a simple yes or no answer from the seller is now a $19 + report that companies make money selling into the transaction.

As far as the question of liability to the agent, if the additional information in the C.L.U.E. report has a mistake in it, as happens from time to time and causes some of the problems discussed in the previous article, then who takes responsibility? The most common response from agents is the company that sold the report to me of course. But as it turns out this is not necessarily the case.

Why you ask? The C.L.U.E. report comes with no guarantee or indemnification from LexisNexus, the company that produces the report. The resellers, usually disclosure companies, all have a third party exclusion in their limits of liability that state they are not responsible for mistakes in information provided to them from outside sources.

This can leave the real estate agent or brokerage financially responsible for the C.L.U.E. report if there is a problem. The message in this for agents, using C.L.U.E. reports in this case, is to look at your disclosure procedures with an eye towards not only meeting your fiduciary duties to your clients, but managing your own risk. With that in mind, with the case of C.L.U.E. reports the best answer may be to use the CAR SSD form.

What do you think of this situation? Are you in favor of regulating disclosure companies?

 

RE Insider read more here:

http://re-insider.com/2014/07/23/when-is-disclosure-too-little-too-much-or-just-right/

Advice for First-Time home buyers

• Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.
      
• Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You'll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
      
• List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.
      
• Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.
      
• Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:         
  1. One or more detailed maps with your areas of interest highlighted.         
  2. A file of the properties that your agent has shown to you, along with ads you have cut out from the newspaper.              
  3. Paper and pen, for taking notes as you search.              
  4. Instant or video camera to help refresh your memory on individual properties, especially if you are attending a series of showings.              
  5. Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?
           
• Visualize the house empty & with your decor: Are the rooms laid out to fit your needs? Is there enough light?
      
• Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don't make a hurried decision that you may regret later.
          
• Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don't forget such essentials as:         
  1. Include inspection & mortgage contingencies in your written offer.     
  2. Have the property inspected by a professional inspector.              
  3. Request a second walk-through to take place within 24 hours of closing.
  4. You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).
      
• All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly to discuss any of these matters in further detail.

These Are The 10 Richest Small Cities In America

Rancho Palos Verdes made the Movoto list @ #9...

They might be tiny, but these places make up for it with big bank accounts, fast cars, and more luxurious amenities than you can shake a 24 karat gold stick at.

We talk a lot about superheroes, cartoon characters, and even the occasional royal figure here on the Movoto Real Estate Blog, but most of the time we’re telling normal folks like ourselves where the best and safest places are to live.

Every once in a while, though, we wonder what life must be like for the 1 percent—what sort of places they live in, and what sort of things they need. It’s for that reason why we decided to turn our ranking prowess toward finding the enclaves of our country where the truly wealthy reside.

What we found is that, when it comes to small cities and towns, there’s none richer—in terms of actual wealth or things the wealthy enjoy—than Bethesda, MD. In the process, we also determined the top 10 richest small cities in America, which are:

1. Bethesda, MD 2. Palo Alto, CA 3. McLean, VA 4. Redondo Beach, CA 5. Menlo Park, CA 6. Lexington, MA 7. Brentwood, TN 8. Foster City, CA 9. Rancho Palos Verdes, CA 10. Laguna Niguel, CA 10. Hoboken, NJ

How We Made This Ranking

Even if you’ve read one of our Big Deal List rankings before, you’ll want to pay attention, because this one’s a little different.

In order to determine which small cities in the U.S. are actually the richest, we started with a list of 950 places with populations between 30,000 and 80,000 people according to the 2010 U.S. Census. We then ranked these places from 1 to 950 based on two categories: median household income and median home value, using data from the 2010 Census, with one being best.

The average of these two scores was used to determine the top 25 most wealthy small cities in the country. From there, we gathered further data on just these 25 places in nine additional categories we chose to encapsulate a truly rich place:

• Really expensive fine dining establishments per capita
• Really expensive clothing retailers per capita
• Really expensive jewelry stores per capita
• Luxury car dealers per capita
• Country clubs per capita
• Cosmetic surgeons per capita
• Distance to nearest polo field
• Distance to nearest yacht club
• Distance to nearest private airport

For the first six criteria, we used business listings and only considered businesses actually located within city limits. For the last three, we used the distance to the closest field, club, or private airport by actual driving miles.

Each place was given a score from 1 to 25 in the individual criteria, with one being best. We then averaged these rankings together into an overall Big Deal Score, with the lowest score being the richest small city.

Now that you know how we put the ranking together, let’s take a look at the top places and how they fared across all these various criteria. You might want to grab yourself a top hat and monocle to wear while you read for optimal richness simulation.

9. Rancho Palos Verdes, CA

   

Country Clubs Rank	1	Luxury Car Dealers Rank	8	Polo Field Distance Rank	16
Really Expensive Fine Dining Rank	1	Really Expensive Clothing Rank	11	Private Airport Distance Rank	18
Yacht Club Distance Rank	5	Really Expensive Jewelry Stores Rank	11	Plastic Surgeons Rank	22

Six hours south of Foster City, but still located on the water, Rancho Palos Verdes is home to some of the Los Angeles area’s most prime seaside real estate. That explains its median home value of $973,900 in 2010, but its median household income of $119,778 is also sky-high. Residents can spend that money on fine dining like nowhere else, as Rancho Palos Verdes ranked first overall for hyper-expensive cuisine. It was also first for country clubs per capital and, owing to its coastal location, fifth for distance to the closest yacht club.

http://www.movoto.com/blog/top-ten/richest-small-cities/

Why you should Invest in Real Estate, Right Now.

In a recent post by Jerry Lynch on MSNBC Real Estate, Jerry commented on why right now is a great time to invest, and he had some good stuff to say...

Jerry Lynch| CNBC

http://www.cnbc.com/id/101614748

I have said this many times. You will not get rich in the stock market, you will get reasonable rates of return over time but people who are wealth generally do not do it that way. Wealthy people are wealth because of 1 of 4 things.

• They inherited it (Rockefeller)
• The owned a business (Gates)
• They did it in real estate (Trump)
• On they invested systematically for a long period of time in the stock market.

I have invested in real estate probably for over 20 years. Understand investing in real estate and buying a property to live in are not the same things. When you buy a property for yourself, generally when you leave that property assuming you were there for a fairly long time, you will recover your costs. This includes interest, principal taxes and upkeep. What I am referring to is having an investment property that is rented out which is entirely different.

Adam Jeffery | CNBC

Here is why I think it is still a great time to invest in real estate:

1. Low interest rates. My first job out of college back in the 80's was selling vinyl siding door to door and we would try to convince people to use a home equity line of credit — at 18 percent — to pay for the siding. Today, you can probably get a 30-year mortgage on a rental property for under 5 percent (generally there is an additional increase in interest since it is a rental property). So, if you borrow $100,000 with an interest rate of 5 percent, your monthly payment is $536 per month, locked in for the next 30 years, which is an incredible rate.

2. Properties are still reasonably priced. Yes they have crept up since 2008 but they are still reasonably priced. More likely than not, the number will work — meaning that, after expenses, you get a few dollars that you put in your pocket as profit. If that happens, and the value of the property goes down for whatever reason, do you really care? You are paying the expenses, putting a few dollars in your pocket, your tenants will pay off your property and over time the property value will go up.

3.Tax benefits. Never do anything just because you get a tax deduction. Do it because it makes financial sense … AND you get a tax deduction. The depreciation allowance that real estate offers you allows you to get "profit" out of the property, mostly tax free, which is an incredible benefit.

4. You can move your gain into another property. If you own a stock and want to move into another stock, that gain becomes taxable when you sell the stock to move those funds into the new stock. With the use of a 1031 exchange, I can move my gain from one property into another ….TAX FREE!

5. Predictable Income. Income from an investment acct is incredibly unpredictable. For example, assuming that you had $1 million in CD's 5 years ago, you got $50,000 in income…not bad! Now those CD's are renewing at 0.5 percent, so it generated $5,000 — a 95-percent drop in income. Generally, rental income is indexed for inflation and can provide for a great stream of income in retirement

http://www.cnbc.com/id/101614748

Mortgage lending slows to a 14-year low

What with higher interest rates and fewer home sales nationwide, just $235 billion in home loans are started in this year's first quarter.

http://www.latimes.com/business/la-fi-home-loans-20140426,0,4288446.story#ixzz30DyeH9KK

By Tim Logan | Los Angeles Times 

Fewer home sales and rising interest rates have led to the nation's lowest level of mortgage lending in 14 years.

Just $235 billion in home loans were started in the first three months of the year, the lowest figure recorded in a quarter since 2000, according to data from trade publication Inside Mortgage Finance.
That's down nearly a quarter from the end of 2013 and more than half from the same period last year, when the housing market was heating up, especially in Southern California. And it is lower even than the levels recorded during the worst of the housing crash.

The fall-off was particularly sharp for mortgage refinancing, which was hurt by higher interest rates after record lows last spring. The average 30-year fixed-rate mortgage surged to 4.3%, up from 3.3% last May. That's still quite low by historic standards, but the run-up, after years of low rates, means there isn't a lot of demand for refinancing now.

"We've had two or three mini refi waves over the course of the last few years," said Joel Kan, director of economic forecasting at the Mortgage Bankers Assn., noting that many borrowers had already locked in lower rates. "The incentive is not really there for a lot of borrowers to refinance again."

Those refinance loans had grown to make up an outsized portion of the mortgage business, more than 70% of activity a year ago, said Guy Cecala, publisher of Inside Mortgage Finance.
And new buyers haven't been picking up the slack.

The rate of home sales has fallen three months in a row, according to the National Assn. of Realtors. It has fallen even faster in Southern California, where sales in March were 16% below last year's pace, according to San Diego-based DataQuick. There just aren't a lot of customers out there.

Much like the broader housing market, which has seen a brisk sales pace for higher-priced homes, larger mortgages are moving more quickly, Kan said. Activity is strong above the national "jumbo" loan level of $417,000 and up, he said. But that accounts for only about 15% to 20% of mortgages.
"The other 80%, those are down on a year-over-year basis, and they've been down for six months now," he said.
Kan is one of several economists who see the longtime low interest rates as a factor in slower sales. Homeowners who refinanced into 3% rates two years ago are likely to pay a higher rate today if they were to sell their house and buy something bigger. That's dampening sales in the so-called move-up market and making it harder for entry-level homeowners to buy in.

CONTINUE READING HERE...

Copyright © 2014, Los Angeles Times

http://www.latimes.com/business/la-fi-home-loans-20140426,0,4288446.story#ixzz30DyeH9KK

Can You Afford to Buy A House?

By Michele Dawson | REALTOR.COM

Check out these tips by REALTOR.Com's Michele Dawson...

 http://www.realtor.com/home-finance/real-estate/buyers/can-you-afford-to-buy-a-house.aspx

1. Determine the property value of homes that interest you. The property value (what the home is worth) is determined by comparing the prices of homes recently sold of similar size in the same neighborhood. Your real estate agent will be able to provide this information to you.

2. Review different mortgage loan types and compare their required down payment amounts to the money you have available. Down payments, based on a percentage of the value of the property and determined by the type of mortgage you select, typically range from three to 20 percent of the property value. Don't forget to factor in private mortgage insurance, a policy that allows mortgage lenders to recover part of their financial losses if a borrower fails to full re-pay a loan. Mortgage insurance makes it possible to buy a home with as little as 3 percent down. Usually, the lower the down payment, the higher the PMI, which typically will cost somewhere between $40 and $125 a month.

3. Get an estimate of your closing costs, including points (the dollar amount paid to a lender for obtaining a lower interest rate on a loan—one point is one percent of the loan amount), taxes, recording, inspections, prepaid loan interest, title insurance (a policy that insures a home buyer against errors in the title search; cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller) and financing costs from your mortgage lender or a real estate professional. These will generally add up to between 2 and 7 percent of the property value. You'll receive an estimate of these costs from your lender after you apply for a mortgage.

4. Add the down payment requirements and the closing costs together to determine the amount of money you'll need right off the bat. But you're not done yet.

5. Think about the actual move. Will you hire a moving company or rent a truck? Either way will cost you. The more stuff you have, the more it will cost.

6. Property taxes. Many lenders will require an impound account in which monthly payments for property tax (and often insurance) are paid together with the monthly mortgage payment. You can figure your average annual tax rate will be about 1.5 percent of the purchase price of your home.

7. Next, budget for maintenance and repairs. HouseMaster, a home inspection company with 300 franchises nationwide, said that based on a study that evaluated 2,000 inspection reports, the typical costs of major repairs are:

• Roofing: $1,500 to $5,000
• Electrical systems: $20 to $1,500
• Plumbing systems: $300 to $5,000
• Central cooling: $800 to $2,500
• Central heating: $1,500 to $3,000
• Insulation: $800 to $1,500
• Structural systems: $3,000 to $1,500
• Water seepage: $600 to $5,000

READ MORE HERE: http://www.realtor.com/home-finance/real-estate/buyers/can-you-afford-to-buy-a-house.aspx

Copyright © by Realty Times

International Buyers like the Southern California Real Estate Market

Read this article we found in the Daily Breeze...

http://www.dailybreeze.com/business/20140403/international-buyers-like-the-southern-california-real-estate-market

Home buyers outside of the U.S. really like the Southern California real estate market.

A lot, according to the California Association of Realtors “2013 International Clients Survey.”

And they are especially high on Southern California, according to the association.

Of the homes purchased by international buyers last year in California, 35 percent were in L.A. County, 22 percent were in Orange County, 20 percent were in San Diego County and 14 percent were in Riverside County, the association said.

The international community is also a fan of our government and financial system, which I know some will find hard to believe.

Eight five percent of the buyers shopping for homes in the state last year said that they only considered purchasing a home in the U.S. because its stable government and financial system would guarantee their home investment.

Fifteen percent considered investing in other countries, including Canada, Germany, Mexico, China, Singapore, Sweden, and France.

Twenty percent of the buyers said they chose the U.S. for its desirable location and climate.

The survey also found that 69 percent of international buyers paid all cash for their properties, compared to 27 percent of traditional buyers who paid all cash and 32 percent who bought their home to live in.

The international set has an eye for style, too. Forty-four percent of the international home buyers purchased homes with designer kitchens, 26 percent purchased homes with a wine cellar, and 9 percent purchased homes with a sauna. Other home amenities that international buyers wanted include a private beach, putting green, heated floors and outdoor kitchens...

CONTINUE READING HERE...

http://www.dailybreeze.com/business/20140403/international-buyers-like-the-southern-california-real-estate-market

Southern California median home price jumped to $400,000

Enjoy this article from LA Times

By Tim Logan | LA TIMES

http://www.latimes.com/business/money/la-fi-mo-southern-california-home-prices-20140415,0,6707626.story#ixzz2yzdq4dLt

Home prices in Southern California are at their highest level in six years, according to new data, though those gains may be taking a bite out of sales volume.

The median price of a house sold in Southern California rose from $383,000 in February to $400,000 in March, the market’s highest level since February 2008, according to San Diego-based DataQuick, which tracks real estate data.

The figure is up 15.8% from the same month last year and is the first noticeable increase since the torrid run-up in prices last spring and summer.

At the same time, the number of sales fell on an annual basis for the sixth straight month as investors and cash buyers pull out in the face of higher prices, and more traditional home buyers hesitate to jump in. There were 17,638 homes sold in DataQuick's six-county Southern California' region, down 14.3% from last March and the second-lowest total for the month -- the start of the key spring home-buying season -- in nearly two decades.

“Southland home buying got off to a very slow start this year,” said DataQuick analyst Andrew LePage. “We see multiple reasons for this: The inventory of homes for sale remains thin in many markets. Investor purchases have fallen. The jump in home prices and mortgage rates over the past year has priced some people out of the market, while other would-be buyers struggle with credit hurdles. Also, some potential move-up buyers are holding back while they weigh whether to abandon a phenomenally low interest rate on their current mortgage in order to buy a different home.”

The data also show how the recovery is being felt differently at different segments of the market.

While prices have climbed fast on lower-priced homes, the number of sales has fallen sharply, suggesting a lack of homes for sale and buyers who can afford them. Sales of homes for less than $500,000 dropped 26.4% from this time last year...

Continue HERE...

http://www.latimes.com/business/money/la-fi-mo-southern-california-home-prices-20140415,0,6707626.story#ixzz2z08dOtsr

Condo Prices Up in L.A.

By Tim Logan | LA TIMES

Despite a boom of apartment building, the condo market in downtown Los Angeles remains tight as a drum. And that’s pushing up prices.

The price per square foot of a new condo downtown climbed 6% in March from February to $656, according to a new report from the Mark Co., which tracks downtown real estate.

The number of condos for sale, meanwhile, fell sharply as buyers snapped up units at downtown’s lone new condo building: the Barker Block on Hewitt Street.

At month's end, Mark said, there were only 27 new units for sale downtown, and the inventory of existing condos for sale would burn off in less than three months -- half of what’s considered a healthy supply. Prices for condo resales slipped in March but remain 23% higher than a year earlier, at $534 per square foot.

“There is a dearth of condos,” said Alan Mark, the Mark Co.'s president. “People are not even selling existing condos because there’s no place for them to buy.”

The tight for-sale market contrasts sharply with a boom in apartment building.

After the housing market tanked in 2008, some downtown projects that had originally been designed as for-sale switched over to become rentals. And big institutional investors, desiring a safe, stable return, shifted their money into high-end apartments, helping to fuel a building boom that has 5,000 rental units now under construction, and 3,000 more units approved by the city.

That surge in rental supply may lead some apartment owners to flip their buildings back to condos, but Mark said he doesn’t see that happening yet. The numbers don’t quite pencil out, and the wounds from the downturn are still too fresh.

“There are definitely people circling, trying to figure out does it work and do they have the wherewithal to put 200 or 300 units on the market for sale,” he said. “Some developers still feel the scars of the recession.”

As for new construction, that could happen -- there’s one 38-story condo tower in early development on 9th Street north of Staples Center -- but it’s going to take a while.

“To build any building that’s sizable, it’s 18 months to two-and-a-half years to deliver,” Mark said. “You just don’t see this thing changing soon.”

http://www.latimes.com/business/money/la-fi-mo-downtown-condo-market-20140408,0,873943.story#ixzz2ytsQzLTR

Keller Williams LA Harbor Market Share: March Update

Why Wait To Buy Your First Home Till You Are Married

In my parents generation it was easy, you dated, got engaged, got married, then bought the house. Lots of little check marks on the list and very few deviated from the norm.

In my generation it was a bit more difficult. You still did the dating part, but we typically added the living together part before the marriage or even the engagement. It was practical, and a bit controversial, but we did it.

Now our children are facing another change in the equation. Young couples are buying homes together before they get married.

Coldwell Banker has come out with a new survey that shows 24 percent of millennial couples are buying the house before they get married. Now part of this is because these couples are waiting much longer to tie to the knot, but for those in the real estate industry it is a trend to watch.

Especially as we see the housing industry start to recover. If these numbers were growing in the recent housing recession I think they will explode as the market takes off.

So remember when you want to go back into your personal history to predict future events in real estate, odds are you will be mistaken. The world is changing, fast, and the smart and successful agents are watching these trends and using them to their advantage.

Survey Trends: Love, Marriage and Homebuying

New Homes for Newlyweds: More than one in three married homeowners (35 percent) purchased their first home together by their second wedding anniversary.
Cold Feet? Not These Couples: 17 percent of all married couples surveyed purchased a home together before their wedding day.
Millennials are Less Likely to Wait Until Marriage: 24 percent of married homeowners ages 18 to 34 bought a home together before they were married, compared to 14 percent of those ages 45 and older.
Southerners Take Their Time: 72 percent of married Americans in the South waited until after they were married to purchase a home, compared to 60 percent of Americans in the Northeast.
To Have and to Hold … and to Own: Only 16 percent of married U.S. adults have not purchased a home together with their current spouse.

Impact of Homebuying on a Marriage

• 93 percent of homeowners who purchased their first home while married always planned on owning a home after marrying.
  
• 80 percent said purchasing a home with their spouse did more to strengthen their relationship as a couple and family than any other purchase they have made together.
  
• Over one-third of married homeowners (35 percent) wish they had taken the plunge (into homeownership) sooner than they actually did.

How to refinance your mortgage

Here are six tips to consider if you're looking for refinancing options outside of HARP by MSN Real Estate

By Juliette Fairley of MainStreet | MSN

http://realestate.msn.com/how-to-refinance-your-mortgage

1. Shop around. The job of the consumer is to find the best APR and the lowest fees. "They vary the most in the mortgage financing industry," said Steve Nakash, national retail manager with Nationwide Direct Mortgage.

2. Maximize your time. Mortgage brokers can check five or six banks to obtain the best rates of the day. "Bigger banks like Bank of America only have access to their own bank rates," said Tim Lucas, a former loan officer and editor of mymortgageinsider.com.

3. Protect your credit report. Narrow your choices down to three lenders before having your credit report pulled by any one of them. "If you get your credit report pulled too many times, it affects your credit score," Nakash said. "If you are not doing business with a particular bank, don't allow them to pull your credit."

4. Determine your mortgage options. "Credit unions are good for short-term fixed-rate mortgages at 10 or 15 years, but for a mortgage more than a million dollars, consider a private bank, especially for a 10-year or seven-year ARM, because the private banking departments of big banks have competitive rates for larger mortgages," said Michael Moskowitz, president of Equity Now, a direct mortgage lender.

 5. Seek continuity. When refinancing with an online lender, request to be handled by only one account representative to avoid being passed around from one rep to another. "Most online lenders will accommodate that," said Nakash, who services eight states online including California, Colorado and Washington.

6. Pay attention. When the loan-to-value ratio is more than 80%, secure mortgage insurance. "If you have a $375,000 loan, 80% would be $300,000," Moskowitz said. "Mortgages of more than 80% must include insurance, according to Fannie Mae, Freddie Mac and FHA requirements."

http://realestate.msn.com/how-to-refinance-your-mortgage

How to Find the Perfect Apartment for Rent – 10-Step Process

By Jacqueline Curtis | Money Crashers

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Tips to Find a New Home to Rent

1. Determine Affordability

The U.S. Census Bureau suggests that your monthly rent should not exceed 20% of your monthly income – 30% at the most. For instance, if you bring home $4,000 each month, you should cap your search at around $1,200. Taking the time to update and polish your personal budget before you start looking for apartments can not only help you figure out your price range, it can also help you identify areas in your personal finances where you can cut back if you want to spend more on a pricier apartment. After scrutinizing the numbers, you may decide to drop that costly TV subscription to allow you more wiggle room in your budget for the right place.

Create your budget with a simple spreadsheet or an online service like Mint or PearBudget. Detail your income and expenses down to the penny, from fixed obligations such as phone bills, student loans, and car payments, to variable month-to-month costs such as groceries, entertainment, and clothing. You can lower your food bills by clipping coupons, and save money on your cable, smartphone, and Internet by bundling all three services under one provider. These small moves can really add up, giving you the funds you need for your future housing.

2. Lower Rental Costs

There are several things you can do to find a lower monthly rent:

• Look Outside an Urban Area. While living in the city center may seem like a priority, it doesn’t mean much if you can’t afford the rent. Instead, check out apartments in the suburbs within a conveniently commutable distance to work.
• Consider Transportation Costs. Urban areas generally require a smaller transportation budget, since you can likely take public buses or subways to get around. However, you still need to take transportation costs into consideration, whether it’s a bus pass or gas money, if you choose to live away from the city center.
• Get a Roommate. You can slash the price of any apartment in half simply by sharing it with someone. You need a landlord’s approval before doing so, but having a roommate can significantly reduce the financial pressures of renting. Just make sure you have a written agreement with your roommate laying out all obligations.
• Check for Subsidies. The U.S. Department of Housing and Urban Development (HUD) routinely offers subsidies for those with lower-income jobs who may not be able to afford rent. Search the HUD website to find affordable housing or see if you qualify for subsidies.
• Think Small. Square footage comes at a premium in an apartment, particularly in the number of rooms. Going for a studio or one-bedroom may mean missing out on some space, but you make up for it with big month-to-month savings. Assess how much space you really need based on your lifestyle, visitors, pets, and storage. You may find that you’re happier paying less for a smaller place.
• Negotiate. Unless you’re apartment hunting in a popular area with little renter turnaround, many landlords are amenable to negotiating. Check out the rates for comparable apartments with similar amenities in the area and bring your research with you to strike a better deal. You can also offer to pay rent for a longer chunk at a time (a landlord may lower the rate if you pay three or six months at a time) or choose to sign a longer lease to score a better deal overall.

3. Add Renters Insurance

For some, renters insurance is a choice, but for the vast majority, it’s required by a landlord. In either case, you should add it to your budget. It covers losses in case you suffer a break-in, and it also helps cover your landlord if you do damage to the property. A landlord insures the building, but renters insurance covers what’s actually inside it.

Luckily, it’s pretty affordable. Rates depend on geographical location, amount of coverage, and amount of rent paid, but, on average, you can expect to pay around $500 per year on $25,000 worth of coverage – about $12 to $15 per month.

4. Run a Credit Check

Many landlords run credit checks to see if there are any glaring issues with potential tenants, such as unpaid bills or bankruptcy. You can also expect a background check. Although landlords run these checks prior to approving you, it’s actually a good idea to request your own free credit reporton your own. That way, you can comb through to check for any potential roadblocks and contest any errors you may find.

All three credit reporting agencies (Equifax, TransUnion, and Experian) are required by the FTC to offer one free credit report each year. It’s no cost to you and won’t affect your score if you request it, but you do need around three weeks to actually receive the report.

5. Start Hunting

Don’t leave apartment hunting for the last minute. In a perfect world, it should start around three months before your “must move” date. Many current tenants have to let their landlords know of vacancies in advance – the majority of areas require renters to give at least 30 days’ notice, but plenty give more.

While the features you want in an apartment are specific to you and your lifestyle, there are a several basic things you need to look for:

• Price. Avoid looking at apartments outside of your budget. Landlords are unlikely to discount the rent, and you could end up either overspending or being disappointed when you can’t afford the apartment of your dreams. Instead, set a firm number and only look for places that fall within your budget.
• Transportation. If you’re currently without a car, check every potential apartment’s proximity to public transportation. An apartment may be well-priced and in a great neighborhood, but if you have to spend most of your time walking or calling taxis, it might not be so attractive. What’s more, you need to factor the cost of transportation into your budget for a realistic picture of how much an apartment really costs.
• Convenience. Choosing an apartment that is conveniently located can make your life a lot easier. Look for a place that’s close to work, shopping, transportation, and amenities such as laundry.
• Safety. Not only should an apartment be in a safe neighborhood, landlords should make an effort to ensure their tenants feel safe inside. Proper locks on each door, private entrances, and security should all make you feel better about renting.

6. Gather Your Down Payment

Many landlords require a down payment, which usually includes the first and last month’s rent, along with a security deposit equal to one month’s rent. Therefore, if you’re forking over $800 per month for a new place, you need $2,400 ready to go when you actually sign your lease. Your first and last month’s rent is obviously retained by the landlord, but your security deposit is generally returned if you leave the property in the condition you found it. Otherwise, it can be applied to maintenance, repairs, and cleaning.

While you won’t need to give a landlord a security deposit until you sign the lease, it’s always a good idea to have the amount saved up in your bank account. That way, you won’t lose out on a potentially perfect apartment to a better-prepared renter simply because you didn’t have the money.

7. Prepare Documentation

Landlords take a substantial financial risk if they don’t thoroughly check out each applicant, so in addition to credit and background checks, some may require extra documentation. Gather the following papers and keep them on file in advance of your search:

• Letter of Employment. A landlord needs to know you’re gainfully employed and able to make monthly payments based on your salary. This letter should be printed on company letterhead and include an affirmation that you work there, the duration of your employment to date, and your monthly or yearly salary. It should be signed by a supervisor.
• Pay Stubs. These corroborate the information in the letter of employment.
• Tax Returns. If you’re self-employed, tax returns from the last couple of years should suffice in place of pay stubs. You may need to offer extra explanation as to what you do for work and the amount you make annually.
• Reference Letters. A landlord wants to know that you’re a great tenant. If you’ve rented before, ask for reference letters from past landlords explaining that you paid your rent on time and cared for the property. If you’ve never rented before, ask for letters from previous employers or acquaintances who can confirm that you’re responsible and honest. Just make sure they’re from people not related to you – glowing recommendations from your mom won’t do the trick.

8. Talk to Tenants

While you want to make a good impression on the landlord, you also need the landlord to make a good impression on you. The best way to find out if you really want to live in a certain property is to talk to past and current tenants. In general, you want a landlord who is courteous and safe, and who takes care of maintenance issues promptly. Ask about tenant turnover, infrastructure issues, and response times to complaints.

This is also the ideal time to ask about living expenses in the area, especially if you’re moving to a new neighborhood. Current tenants can give you a rundown of what they spend on transportation,utilities, and entertainment, as well as information about the neighborhood, such as where to eat, the location of specific school districts, and the best local amenities.

9. Do a Walk-Through

Don’t sign that lease just yet. After everything checks out and you’re happy with the apartment, location, and landlord, you should do a final walk-through before signing on the dotted line. Because previous tenants may have caused damage or maintenance issues, you need to be sure that you won’t be responsible for any issues that weren’t your fault.

Come prepared and check for the following:

1. Turn on lights and faucets, and flush toilets throughout the apartment to make sure they all function properly.
2. Check for rodent or insect infestation, particularly in cupboards and storage spaces. Chew marks or droppings are a major red flag.
3. Bring along a cell phone charger and plug it into the outlets to make sure they all work.
4. Check smoke alarms and look for fire safety equipment, such as an extinguisher in the kitchen.
5. Open and close and lock and unlock doors and windows.
6. Turn on all included appliances to make sure they’re working.
7. Examine floors and walls for any type of damage. Carpet, hardwood, linoleum, drywall, and tiles should all be inspected.
8. Take pictures of any problem areas with a digital camera and show them to the landlord. Save the file so if there are any discrepancies with maintenance or problems getting your security deposit back when you move, you have evidence to prove you didn’t cause the damage.

10. Read Over and Sign the Lease

Lease agreements vary depending on time frame and contract terms.

• Periodic Leases Work Best for Shorter Durations. With a periodic lease, the landlord acknowledges that your situation could change from month to month, allowing you to pay and renew your lease monthly. However, these leases can be more expensive, and because you have to renew each month, the landlord reserves the right to raise the rent at any time. You need to give your landlord 30 days notice before vacating the apartment, so this arrangement is best only if you truly need short-term living space.
• A Fixed-Term Lease Is Most Common. Contract with your landlord to stay in the apartment for a specific period of time – three months, six months, a year, even two years. In many cases, if you choose to move out, you’re still responsible to pay for the time left on your lease, whether you live in the apartment or not. This can mean locking in a lower rate, though, which is ideal for longer-term living situations. Occasionally, landlords let renters out of their lease if a penalty is paid, so be sure to discuss contingencies before you sign.
• Subleases Are Three-Party Lease Agreements. They often occur when a renter needs to vacate an apartment, but is still in a lease with the landlord and responsible for the rent. With a sublease, the original renter finds another resident to take over lease payments until the term is up. The renter then pays the landlord for the duration of the contract. Subleases must be approved by the landlord, so if someone offers you a great deal on the down-low, it could be suspect.

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Westside mansion sells for $102 million, highest Southland price

The buyer of the 50,000-square-foot estate often described as a French palace isn't revealed, but may be onetime junk bond king Michael Milken.

http://www.latimes.com/business/realestate/la-fi-mega-mansion-sale-20140401,0,7358513.story#ixzz2xflBSDZi

By Lauren Beale | LA TIMES

 

After an international bidding war, a Westside mansion often described as a French palace has changed hands for $102 million, making it the most expensive residential sale ever recorded in Southern California.

As is often the case with high-end properties, the identity of the trophy home's unnamed buyer has been obscured behind layers of lawyers, agents and a limited liability company.
But the real estate equivalent of a bread crumb trail suggests that the purchaser of the opulent estate is onetime junk bond king Michael Milken, who has spent more than two decades devoted to philanthropic efforts since he pleaded guilty in 1990 to securities fraud.

The 50,000-square-foot residence was named Fleur de Lys by the seller, socialite Suzanne Saperstein. She had the mansion custom built a dozen years ago with her then-husband, Metro Networks founder David Saperstein. They divorced three years after work was finished, and she first listed the property in 2007 at the peak of the L.A. County real estate market for $125 million.

She took it on and off the market several times, almost selling it at one point to British heiress Petra Ecclestone, who ended up buying Candy Spelling's nearby spread for $85 million.

The buyer was initially identified as a French billionaire who paid all cash and closed in 10 days. But a copy of the grant deed obtained by The Times shows that the taxes will be mailed to the Santa Monica headquarters of the Milken Institute, the nonpartisan think tank founded by Milken in 1991.

The buyer is listed as FDL Property, a limited-liability company registered in Delaware and represented by the law firm of Maron & Sandler, which is based in the building that houses the Milken Institute.
Maron & Sandler partner Richard V. Sandler is executive vice president and a trustee of the Milken Family Foundation and a director of the Milken Institute. Sandler is the finance legend's longtime friend and lawyer — and his employer in 1993 after Milken emerged from 22 months in a minimum-security prison.
The buyer was represented by Fred Bernstein of the Westside Agency. Bernstein is married to Milken's daughter, Bari.

The Milken camp denied the purchase. Milken spokesman Geoffrey Moore said in an email that he was unable to reach Milken, who was traveling, but "I did a quick check and can tell you that neither Mike Milken nor the Milken Institute is the purchaser."

The sale fails to eclipse the U.S. record set last year when a mansion on nine acres in the Northern California community of Woodside went for $117.5 million. That deal may have included other considerations because the buyer and seller are business partners.

The transaction does beat the long-held local record established in 2000 when Dole Food Co. billionaire David Murdock sold a Bel-Air property to financial executive Gary Winnick in a $94-million deal that involved a parcel of land in trade.

This affluent Westside stretch of Holmby Hills, Bel-Air and Beverly Hills, known as the Platinum Triangle for its wealthy residents and top-dollar properties, was ripe for a home sale of such magnitude.
"This is one of the greatest estates in Los Angeles, if not the country," said Kurt Rappaport of Westside Estate Agency, who represented Saperstein in the sale.

The house is in the Holmby Hills area, a sweet spot for opulent homes with neighbors including entertainment mogul David Geffen, Microsoft Corp. co-founder Paul Allen and actress Sandra Bullock.
Real estate experts say L.A. prices seem like bargains compared with home prices in other major cities — particularly to foreign buyers willing to pay cash. The other bidders on Fleur de Lys were identified as English and Chinese billionaires.

Adding to the competition for such trophy estates is the fact that the Los Angeles-area housing supply is constrained by its geography, said economist Gary Painter, director of research for USC's Lusk Center for Real Estate. In this built-out environment there are few estates with acreage from which to choose.
"This is a very thin market, in a similar vein to an art market," Painter said. "There's only one of that type."
Housing analysts, however, are seeing more sales at the upper-price tiers. DataQuick reports sales volumes are up by about a third in the $5 million and more slice of the market so far this year compared with the first three months of last year. From the August 2007 peak of the overall market, according to February statistics, prices are still down 22.5%.

"The luxury market isn't as tied to job and income growth and mortgage rates," said Andrew LePage, an analyst with DataQuick, a real estate research firm. "It's more about stock market performance, IPOs, competing investments, where people want to park their extra money and foreign investment."
Completed in 2002, the compound stretching between Carolwood and Angelo drives was years in the making. Purchasing the adjacent parcels that make up the estate took about five years, and several more years were spent in various stages of construction.

Wrought-iron gates open to a 600-foot-long tree-lined driveway that leads to a cobblestone courtyard in front of the house. The granite stones were salvaged from the streets of Manhattan when the sewer system was being redone, said architect Richardson Robertson III, whose L.A.-based Robertson Partners designed the formidable estate.

Just inside the front door is a two-story entry hall with a marble floor topped by a gold-leaf paneled ceiling. A pair of staircases lead upstairs, and a doorway flanked by columns looks out to the backyard and gardens.

Although sometimes described as having been inspired by Vaux-le-Vicomte, a palace outside Paris, the mansion took its cues from great estates in Newport, R.I., Robertson said. "This is not a French floor plan. It's a neoclassical house built as a decorative arts museum."

The grounds have been likened to a miniature Versailles with formal gardens, mature trees and a soccer-field-size expanse of lawn. The 4.9 acres include two motor courts, a swimming pool and spa complex, and a tennis court. A jogging track runs inside the perimeter of the property.

Imported limestone blocks enclose a massive steel frame, set on rollers in the foundation, to safeguard the structure in an earthquake. Interior spaces include a ballroom for 500 guests, a two-story wood-paneled library, a movie theater, a music room, a dance studio, a beauty salon, a dozen bedrooms and 15 bathrooms.

READ MORE HERE:

http://www.latimes.com/business/realestate/la-fi-mega-mansion-sale-20140401,0,7358513.story#ixzz2xflOrIoo

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