RPV Eastview Newsletter

In 1827, Don Dolores Sepulveda received an original land grant to Rancho de los Palos Verdes that supported several thousand heads of cattle and flourishing hacienda. Rancho Palos Verdes literally means “Ranch of Green Sticks” but some say it takes its name from Canada de Palos Verdes, or “Canyon of green trees” and RPV was originally inhabited by the Gabbrielino-Tongva Tribe. [1]

Then, for a brief period of time in the early 1900’s, the Peninsula enjoyed prosperity as a cattle ranch and rich farming area. During this time, 2,000 head of cattle roamed the open areas.

Japanese families farmed the moist southern slopes with fields of beans, peas and tomatoes, while the manager of the cattle ranch farmed the dryer northern slopes with barley for hay and grain.2

In 1913, the found father of the Peninsula, Frank Vanderlip, bought the 16,000-acre Palos Verdes Peninsula and embarked on a grand vision to develop the “Palos Verdes Project” into the most fashionable and exclusive residential colony in the nation. The first homes in Rancho Palos Verdes appeared in the region in 1924, two years before the historic Point Vicente Lighthouse was built in RPV. 3

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1"Terranea History." Rancho Palos Verdes Resorts. N.p., n.d. Web. 10 Oct. 2014.

2 "Rancho Palos Verdes - The Birth of a City." PalosVerdes.com. City of RPV, n.d. Web. 15 Oct. 2014.

3 "Terranea History." Rancho Palos Verdes Resorts. N.p., n.d. Web. 10 Oct. 2014.

This Month in Real Estate: November

This Month in Real Estate: October

This Month In Real Estate: September

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/

How to Restore Your Credit Score Quickly

Buying a home is the American dream and you have decided that it is time to start looking into buying a home of your own. That's great! However, you probably know that there are things you should be doing before you begin your search - but where do you start? The first thing you need to get in order, before you do anything else, is to get a copy of your credit reports. That's plural - credit reports.

You need to get a copy of your credit reports from all three credit reporting agencies - Trans Union, Equifax and Experian. If you are thinking about buying a house, you may not realize the importance your credit reports hold in getting an approval for your new home.

 The mortgage companies are more concerned about your recent buying and repayment history than what may have happened years ago. If you have too many recent late payments or collections, there may not be anything you can do to get approved in the immediate future.

 However, there are some things you can do to clean up your report. So in six months to a year or maybe even two years, depending on how bad your credit is and how long it takes you to clean it up, you can apply for a home mortgage and get your approval.

 Here are a few things you can do to restore your credit and credit score quickly:

 1. Check your credit reports for errors. Again , that is plural so check all three of your credit reports for errors. If there are mistakes on your credit reports, you will need to start an investigation with the company or the source of the derogatory information. Contact them in writing and make sure you include all supporting documentation proving the information is in fact an error.

 2. Set up a timely repayment schedule. If you have any accounts that you have been late in paying, you will need to begin paying all of them on time. Paying your bills on time for a minimum of six months will go a long way in improving your credit rating.

 3. Collections. Try to avoid having your accounts turned in to collections. A collection is the most damaging of all credit issues. So work out a re-payment plan before your account turns into a collection. A credit improvement agency may be able to help you get your collections erased; but only if the creditor did not abide by all of the laws of the Fair Credit Reporting Act. However, this is generally not the case because most creditors know the laws and how to follow them. So don't count on this as a quick fix . Most collection accounts will stay on your credit report for a minimum of seven years.

 4. Keep a low balance on all of your revolving credit accounts. Try to keep your balances below 50% of your limit. The lesser the balance the better it looks to potential creditors.

5. Do some soul searching. Try to determine what caused your credit status to get out of control in the first place. Then do whatever you have to to amend your bad habits - if any.

 6. Get a secured credit card. Secured credit cards can be very helpful in improving your credit. There are many things you can do to get your credit report back on track quickly. So talk to your real estate agent for more information about how you should go about doing this.

 In the meantime, your Realtor will be able to get you started on your path to home ownership while you are working out your credit issues. Your agent has the experience and the know how to help you get into your new home as quickly as possible. So take advantage of all they have to offer you.

6 Common Mistakes Homebuyers Still Make

Getting a new home is easy but tricky at times. Many buyers are encountering stumbling blocks en route to their chosen house. This is because they commit minor mistakes along the way that hinders smooth processing. This can be prevented only if you are familiar with these common mistakes.

1. Having no pre-arrangements with the bank for mortgages before making an offer is the most popular mistake. Communicate with a bank to know the price range you are capable of paying and other mortgage details that you need to know.

2. Knowing your exact budget is critical. Most people look around for houses even without the budget in mind. First thing you need to know before finding a home to purchase is how much you can pay for a new home. You can save much time if you trim down your list of houses based on its price; imagine finding that dream home only to find out you won’t be approved for the mortgage?

3. Getting unreliable and inexperienced real estate agents is a big no-no. Choose an agent that has the background to back him or her up. Also, consider the real estate companies you are dealing with. Make sure that they have a good standing in terms of the services they are providing.

4. Most people are shopping around within a limited market. You can find homes for sale anywhere such as internet, print ads, and even on TV. You may also want to ask for help from your agent to provide you a list of preferred houses. You can save time if you know what kind of house you are looking for.

5. Purchasing a home long distance without thorough inspection is a mortal mistake. After choosing a home, it is a must to visit it personally so that you can see it in a closer view. Some pictures only show the good angles of the house. It can be very deceiving at times. Check the structure and foundation to ensure safety. Also, look around the neighborhood and get comfortable with it.

6. Buyers tend not to compute the total cost of the house. Other expenses such as home insurance, association dues and even lawyer's fee for proper documentation of the purchase should be considered. We are not talking about coins here. These range from hundreds of dollars to even thousands. You need to prepare your pocket for it.

Buyers are usually not aware of all the details. It is your home and you are responsible for it. You need to know and understand everything about it, from home warranty to insurances and even the history of the house.

You've Opened Escrow, Now What?

Congratulations, you are on your way to owning your very own home!

Follow these suggestions (and your realtor's advice) so that escrow and settlement with go as smooth as possible.

• You will be asked for a down payment on the home you are purchasing.  You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.
• During this period of purchasing your home, you are going to need an escrow or settlement company to act as an independent third party so that you know when and who to give your money to get the deed to your new home. The escrow or settlement company will hold your deposit and coordinate much of the activity that goes on during the escrow period.  This deposit check may also be held by an attorney or in the broker's trust account. Make sure that there are sufficient funds in your account to cover this check.
• The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.

The period that you are "in escrow" is often 30 days, but may be longer or shorter. During this time, each item specified in the contract must be completed satisfactorily. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:

1. Inspection contingency: this should be completed as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancel the contract.
2. Financing contingency: once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan. You may choose to cancel the purchase contract.
3. A requirement that the seller must provide marketable title.

With an attorney or title officer, review the title report. The title must be "clear" to ensure that you do not have legal issues regarding your ownership.Check into local and state ordinances regarding property transfer and make sure that you and/or the seller have complied with them.

Secure homeowner's insurance. This will probably be required before you can close the sale. Due to such requirements as special fire and earthquake insurance, obtaining this insurance may require a lengthy period of time. It would be in your best interest to apply for insurance as soon as possible after the contract is signed.

Contact local utility companies to schedule to have service turned on when you close escrow.

Schedule the final walk-through inspection. At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a "permanently attached" chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

You've made it! Once the sale has closed, you're the proud owner of a new home. Congratulations!

High-End Home Sales Soar throughout California

By RE Insider

While home sales throughout much of California have remained flat throughout this spring and early summer, a new study has indicated that multimillion dollar homes are selling in record numbers, offering hope that the market is still improving and prompting many to wonder what’s holding the rest of the market back.

According to a recent study performed by San Diego-based DataQuick, $1 million-plus sales grew at a 9.1% clip statewide compared with last year, while sales overall fell 7.4%. Additionally, California in the second quarter set all-time records for the number of homes sold for more than $2 million, more than $3 million, more than $4 million and more than $5 million.

What’s driving these high-end home sales? According to market-watchers, there are several factors.

One is the hot technology sector in the Bay Area and some affluent parts of Southern California, which is minting new millionaires who can afford seven-figure homes. Another is the 11.6% price growth in California over the last year, which means a house worth $925,000 last summer may be worth $1.03 million today. And there’s the influx of international buyers, which is pushing up prices at the high end.

“It’s always fascinating to watch this part of the real estate market. It behaves differently, responds to its own set of criteria,” said DataQuick analyst Andrew LePage. “These buyers, especially those in the multi-million-dollar market, are less likely to agonize over credit scores, income and job security, down payments and mortgage interest rates.”

With this in mind, do you think this the market is improving as a whole? And considering that mortgage rates remain historically low, what do you believe is holding other buyers back?

http://re-insider.com/2014/08/18/high-end-home-sales-soar-throughout-california/

South Mission Beach Listing on the strand

2750 Bayside Walk, San Diego

Prime South Mission Beach Location on the Bayside strand!! This home sits on a double lot, on a corner, off a walk street with lots of parking. Hard to find 2 car garage and a driveway that will fit 3 extra cars. This is truly a one of a kind property with an oversized patio that wraps around the house with tons of space for entertaining. The house features 4 bedrooms all upstairs. The master suite has amazing views of the harbor and beach with a large master bath and walk in closet. The other 3 bedrooms are good size with 2 bathrooms. Downstairs has a 3/4 bath with shower, formal dining room with views, bar and a large family room with fireplace. The large kitchen opens to the family room area making it easy to entertain. The house features a Crestron system that works the TV, outdoor music and surveillance cameras around the property for extra security. There is a Spa on the patio and lots of patio furniture. This home can be sold fully furnished if buyer chooses.

Price Upon Request

This Month in Real Estate: August

2014 International Home Buying Activity

NAR has released their annual 2014 Profile of International Home Buying Activity and it shows a significant increase in sales to international buyers.  As the report states:

For the period April 2013 through March 2014, the total sales volume to international clients (“international sales”) has been estimated at approximately $92.2 billion, a 35 percent increase from the previous period’s level of $68.2 billion.

International Buyers

HOW MUCH ARE THEY SPENDING?

WHERE ARE THEY FROM?

WHERE ARE THEY GOING?

Their are many factors that go into how International Buyers decide which part of the U.S. they will move to. The Presence of relatives, friends and associates, job and education opportunities, and climate and location seem to be the most important. Europeans are more attracted to states with warmer climates such as Florida and Arizona. While the West Coast is attractive to Asian buyers.  Buyers in Mexico prefer states in close proximity such as Texas, Arizona, California. Florida appears to be more attractive to South Americans as well as Europeans and Canadians. Buyers from India are located in urbanized areas and states home to IT companies such as California, New York and North Carolina.

Million-dollar home sales hit seven-year high in California

LA TIMES | by Tim Logan

The number of homes that sold for $1 million or more in California hit a seven-year high in the second quarter, and sales north of $2 million reached a new record.

That’s according to new figures from San Diego-based DataQuick, which tracks local housing markets in the state. They found million-dollar-plus sales grew at a 9.1% clip statewide compared with last year, while sales overall fell 7.4%.

Several factors are driving the high-end liftoff, market-watchers say...

READ MORE HERE...

http://www.latimes.com/business/realestate/la-fi-million-dollar-homes-seven-year-high-20140731-story.html

Existing Home Sales Improve

The conflicts in Ukraine and the Middle East had little impact on markets this week, while the economic data was slightly stronger than expected overall. As a result, mortgage rates ended the week a little higher. 

The housing data released this week contained mixed news. Fortunately, the good news came from Existing Home Sales, which cover roughly 90% of the housing market. June Existing Home Sales rose 3% from May to the highest level since October 2013, marking the third straight month of increases. Also, the inventory of existing homes for sale rose to the highest level since August 2012.

 Less encouraging, June New Home Sales, accounting for the remaining 10% of the market, declined 8% from May, and the May results were revised sharply lower. These figures are frequently volatile from month to month. New homes inventories increased as well to the highest level since October 2011. To summarize, the bulk of the housing market showed continued improvement, and the tight supply of homes for sale in some markets may be showing signs of easing.

While Fed officials have recently downplayed the risk of higher inflation, many investors are not quite so certain. The inflation data released on Tuesday eased some concerns, but just slightly. The June Consumer Price Index (CPI), one of the most widely watched inflation indicators, increased at a 2.1% annual rate. Core CPI, which excludes the volatile food and energy components, was 1.9% higher than one year ago. With CPI holding steady close to the Fed's stated target level of 2.0%, investors will be keeping an eye out for signs of rising inflation which could pressure the Fed to tighten monetary policy. 

Next week, investors will be watching both geopolitical events around the world and major economic news in the US. The next Fed meeting will take place on Wednesday. The first reading for second quarter GDP, the broadest measure of economic growth, also will come out on Wednesday. 

The important monthlyEmployment report will be released on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Core PCE inflation, ISM Manufacturing, Pending Home Sales, and many other reports will round out a very busy week. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. 

This Month in Real Estate: July

New Home Sales Surge 18.6%

New-home sales soared in May, but the gains simply put the market back on track to match last year's overall pace, rather than signaled a significant momentum gain.

Home builders, economists and analysts described the May increase as a delayed rebound to normal sales levels after a weak start to the spring selling season, which was hampered by harsh weather and the fitful economic recovery. Many cautioned that one or two more months of strong gains are needed to prove that the housing recovery indeed has gained steam.

Prices, in contrast, are up sharply. The median sales price of new homes sold in May was $282,000, almost 7% above a year earlier.

14 Sneaky Mistakes that can decrease your Homes Value

https://shine.yahoo.com/at-home/14-sneaky-mistakes-decrease-homes-value-162300296.html

  1. Choosing a crazy exterior color 

"Curb appeal is huge, don't pick a paint color that isn't common in your neighborhood or doesn't fit the style of your home." -Pam Baldwin Foarde of Al Filippone Associates/William Raveis

2. Landscaping without a plan 
"Planting trees too close to the house or driveway - without considering how big they're going to get - creates major problems later. Roots can cause breaks in the pavement that might raise your homeowners insurance or make it hard for you get a policy until the problem is fixed. Before you plant anything, think about how it will look in twenty years." -Chris Winn of Kellar Williams/Advantage Group

3. Ignoring your entryway 
"Having a front door lock that doesn't work properly or hardware that looks old and pitted makes buyers uneasy and puts them on high alert for what else has been let go in the house." -Donna Marie Baldwin
of Coldwell Banker

Continue Here... https://shine.yahoo.com/at-home/14-sneaky-mistakes-decrease-homes-value-162300296.html

This Month in Real Estate: June

Feng Shui Staging Tips

Feng Shui is a philosophy that has been used in china for hundreds of years. Using Feng Shui in a home has been a popular "must" for common Chinese buyers lately, but many non-Chinese people have also began to appreciate the Feng Shui philosophy. Feng Shui which literally means "wind-water" promotes well being by rearranging how chi, or energy flows through the home. Now Feng Shui is a common philosophy used in the United States to appeal to potential buyers.

"Everything we associate with staging -- from clearing the clutter to making the place smell good to sprucing up the entryway -- are all feng shui strategies, she says."(Terah Kathryn Collins, author of "The Western Guide to Feng Shui" )

A few strategic Feng Shui improvements can increase the value, emotional appeal, and marketability of your house and solve design and structural challenges, especially in a slow real estate market. 

1. Make your Entrance Inviting & Welcoming

HGTV says "Energy enters your home at the front door, so invite it in! Make your door stand out by painting it a color that contrasts with your home, adding a new welcome mat and flanking the door with plants. Choose plants with rounded leaves as sharp leaves can appear aggressive.

• Also, use a welcome mat that is fit to proportion with the door and frame the doorway with matching pots of red flowers or evergreen trees on both sides for extra attention.
• Clear any trees or bushes that are blocking any windows or the front of the house, create and inviting path leading them into the house.
• Keep Lawn tidy & trimmer

        

2. First Impression

The room of first impression is the most important room, it is where you want to direct buyers first. Have the directional flow of  the entryway point buyers toward this "first impression" room, use a large center point artwork, or a rug that leads them to this room.

• Use mirrors to reflect outdoor views.
• If the "first impression" is the living room, place the sofa in the furthers point of the room, facing the entry, creating a "open-arms welcome to the buyers". this tells the buyer to come on in!
• You want the Positive Energy to move freely through the home, as well as the buyers. Arrange furniture so that when you walk into your living room, you don't see the  back of a sofa.
• Buyers usually decide whether they will buy a home within the first 8 seconds after they open the door.

3. Enhance the Bagua Areas | Furniture Arrangement

This is a little more abstract tip, but bagua is an energy map of space used in Feng Shui. In real Estate, their is the career, buyer, fame wealth, and abundance areas of a home. The buyer area would be located in the "first impression" room.

• " To activate fame chi — the center rear of the house — add a fire element like moving a fire pit or BBQ grill to the outside center of the house, or have a bowl of fiery, red apples in the kitchen" (Sell Your Home With Feng Shui (AuthorHouse, 2007)).
• Create good traffic flow to improve chi, you don't want a potential buyer to run into the corner of a sofa, when they turn into a room, this will make them feel cramped and claustrophobic. If the back of a sofa faces the rooms entrance energy will bounce right out. "You want the positive energy" -- and the buyers themselves -- to be able to move freely through the home" says Jayme Barrett, author of "Feng Shui Your Life.
• When choosing artwork keep in mind that, "Nature scenes are soothing and will relax the buyers," Barrett says". Make sure to also put away those personal family photos and religious and spiritual icons, says Barrett.

4. Feng Shui in the Rest Room

Keep all toilet lids closed, this seems like an obvious one but in Feng Shui this serves a different reason, "Water represents money and the toilet is the one place where water/money escapes," Barrett says" (BankRate.com). Instead, "You can place a small tabletop water fountain either at the entrance or in the back left corner of the home, which is the wealth corner," she says. "Moving water circulates prosperity energy throughout the home."" (BankRate.com).

•  "Place thriving plants and flowers in the corners of the room," Barrett says. That will "enliven the home and create harmony."
• Don't let energy down the drain | drains take energy from a room keep drains covered when not in use
• keep the bathroom door closed, if the bathroom is near the entrance of a home

5. No Clutter | Move furniture you spend the most time on away from beams or ceiling fans. 

• Remove clutter and depersonalize. clutter prevents energy from flowing through the room. Clear out knickknacks, and other personal items.
• According to the principles of Feng Shui clutter robs a space of its Chi. 
• Care2.com suggests that, "Ceiling fans register to the reptilian brain as spinning knives overhead, and beams as a heavy object about to fall on us. Especially move beds, desks and favorite chairs away from under these, or remove the fans all-together (replace with friendlier looking blades) and cover the beams over beds with fabric"
  

6. Other Tips to Create good Chi

• Put away anything with sharp edges, including any butcher-block knife sets.
• HGTV suggests to stimulate your homes energy with sound by adding a wind chime to the front right corner of your house. This area of the home is considered the "buyers area" of the home.
• A large mirror in a dining room reflects the food on the table and is very beneficial, as in effect, it doubles the amount of food available.
•  A large red potted plant near the front door.
• Books represent education and should be displayed.
• A water feature in the foyer such as an aquarium or a fountain.
• In the master bedroom, place a live bouquet of flowers.
• Only use pairs in the master bedroom — two candles, two picture frames, etc.
• Open all blinds, curtains, shutters and drapes. Light attracts good ch’i.
• Make sure your home smells good, have fresh cookies baking in the oven. Or use inviting scents like apple or cinnamon.

    

This Month in Real Estate: May

http://kellerwilliams.vzaar.me/1128635 Watch the Video HERE!