No Fee Bundling for HOA Disclosures

Great news from the California Association of Realtors!!!

No Fee Bundling for HOA Disclosures:

Beginning January 1, 2012, another C.A.R.-sponsored bill requires a homeowner’s association (HOA) to, upon written request, give an estimate of the fee for providing a prospective buyer with the governing documents of the common interest development and other required HOA disclosures.  The fee must be reasonable based upon the HOA’s actual cost for procuring, preparing, reproducing, and delivering the HOA documents. 

If the fee is paid, the HOA cannot withhold the required HOA disclosures for any reason.  Moreover, the HOA cannot bundle the fee for providing required HOA disclosures with any other fees, fines, or assessments.  This law will prevent an HOA’s third-party document preparation company from bundling together both mandatory and non-mandatory HOA documents, and charging a higher fee for providing all the documents. 

The HOA is also prohibited from charging any additional fees for electronic delivery of HOA documents, which must be available to a requesting party if the HOA maintains the documents electronically.  Additionally, at a buyer’s request, the HOA must provide 12 months of approved minutes of the association’s board of directors meetings (excluding executive sessions). 

Delivery of the required HOA documents must be accompanied by a cover sheet itemizing the documents required by law and those provided.  In November 2011, we intend to release a revised C.A.R. standard form Homeowner Association Information Request that complies with this requirement. 
Assembly Bill 771. 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

Reaty Check — Five Ways The Market Is Trying To Tell You Now May Be The Time To Buy!

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Taking a look at the real estate market over the past several decades, a cycle is emerging. Usually there is a steady increase in prices, the prices then peak; that is then followed by a relatively sharp decline which the results in a flattening of the market. The last time the market hit a peak was in 2006. Since then, prices in many areas have declined with a surplus of homes for sale. If we take a page from the history books, it is likely that the next step is for the market to hit bottom. At some point, the market will begin the steady climb we have seen so many times before; but the question is when will that happen? Is it happening now?

You may be surprised to know that some economists believe that the market actually gives us subtle signals as to what it may do and where it may be going. We just need to look a little more closely at the ways in which the market is communicating those trends.

The following five factors may indicate that the market may be approaching its final descent. For sellers, that could mean that your patience may soon pay off. For buyers – this may be your best time to buy.

Fewer new homes are being built – In a September 15, 2011 white paper for the global investment management firm, GMO, titled “Between Errors of Optimism and Pessimism – Observations on the Real Estate Cycle in the United States and China,” financial commentator and consultant Edward Chancellor said that “at the bottom of the cycle, new construction comes to a virtual standstill”, which, according to federal statistics is now happening.

When fewer existing homes are selling, most home developers slow down or cease building new homes. To achieve a balance between supply and demand takes time before the market can turn around – which seems to be happening. In its September 20th report on new residential construction, the U.S. Census Bureau and Department of Housing and Urban Development reported privately-owned housing starts hit a three month low in August and were down 5% from the month before, down 5.8% from August 2010, and more than 25% from September 2006 when new housing construction may have hit its peak. At the same time, The National Association of REALTORS reported existing home sales hit a five-month high in August and rose 7.7% from July 2011 and 18.6% from August 2010. That may be a sign of demand catching up with supply.

A growing demand for housing – It’s a simple fact of life – people need somewhere to live. Buyers may be wary of the process right now, but there is an entire section of the population who will undoubtedly consider buying in the near future. In an Inman News article released October 4, 2011 entitled “5 Signs a Real Estate Recovery is Near,” David Stevens, President and CEO of the Mortgage Bankers Association, reminds us that Generation Y (people born between 1977 and 1994) is estimated to include approximately 80 million people, or 25 percent of the U.S. population and those consumers “are now entering their prime time for starting their careers, their families, and for buying a home.”

Keep in mind that the U.S. Census Bureau predicts the country’s population to reach 423 million by 2050. That’s an increase of 112 million people in just 40 years. Those people will need housing and there will be an inevitable demand for homes to purchase. It stands to reason that this population growth will lead to fewer homes available for sale and prices will rise.

Rents are rising – Because more people are choosing to rent instead of buy in the present market, the cost of renting is rising. An article in USA Today titled “Rising rents make housing less affordable,” Zillow economist Stan Humphries noted that rents are expected to rise about 4% this year and that increase will continue in 2012. He attributes the price increases to the strong demand created by homeowners who have lost their homes to foreclosure.

High rental prices can be a good thing for the health of the over-all real estate market. The closer the average cost of renting comes to the average cost of owning, the more attractive it is to buy. In his GMO paper, Chancellor said; “Whilst people remain cautious of homeownership, the first effect of rising demographic demand is felt in the rental markets as rents start to rise. In time, rising rents push up the prices of existing homes and spur new construction.”

Homes may be more affordable – Let’s face it, we’re seeing prices that we may never see again. The National Association of Realtors’ most recent Home Affordability Index finds the national median priced existing single-family home was $168,400 in August 2011, and the average interest rate was 4.69%. That’s compared to a median of $221,900 and a 6.58% average interest rate in 2006. Low housing prices are a key in sparking renewed interest in owning real estate and can be the launching pad for a recovery.

It can’t get much worse – Pessimism appears to be at an all-time high, and it seems just about the time experts believe things couldn’t get any worse – they start getting better.

In his GMO paper, Chancellor says “In the good times, a house is seen as a highly levered asset that only goes up. In the downturn, the same property is viewed as illiquid, expensive to maintain, and heavily taxed.” Maybe we should start thinking of bad news as good news – a sign that a turnaround may be right around the corner and that now may truly be the best time to buy.

So, as these signs point to the market approaching its trough, what does that mean for you? The prices you’re seeing now may be the lowest for many years to come. You may not want to make the mistake of waiting until we’re in another boom to make your move. If you’re thinking about buying or selling and would like to explore your options, please give me a call. I’d be happy to help.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

September Market Update From Kris Vogt, Coldwell Banker

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REAL ESTATE MARKET UPDATE A monthly

Hello,

Our first edition of Real Estate Market Update was a huge success! I’m so glad to hear that so many of you were appreciative of the numbers and happy to share it with your clients.

Market Commentary: For starters, I’d like to congratulate all of our offices on their hard work over the last several months. Earlier this week I was reviewing our annual goals and already two thirds of our offices have exceeded their 2011 goals—in some cases by as much as 200%. We can attribute much of that success to the tremendous growth of our company as well as the hard work and commitment that our Agents set forth each day as we tackle this ever changing market.

  • The word for the month is inventory—lack of that is. In fact, over the last month we have seen inventory numbers drop significantly. In the $0-$250,000 market (Tri-County combined), inventory levels dropped by 7% month over month and by 18% year over year. In the $250,000-$500,000 (Tri-County combined), inventory levels dropped by 3% month over month and by 24% year-over-year. In the $500,000+ (Tri-County combined) niche, inventory levels dropped by 6% month over month and by a whopping 26% year-over-year. What does this meant for our market? Well the bottom line is, scarcity creates value. As inventory levels drops and thus options for buyers drops, the market becomes more competitively paced and prices will eventually begin to rise.
  • Another major bright spot for us is absorption rate.Absorption rate is the total new listings coming on the market divided by the number of contracts written. Essentially, when we see increases in absorption rate, it means we are writing contracts faster than listings are coming on. As you’ll notice, the brightest spots of the market right now continue to be the entry-level and the upper-end. The move-up market, though showing great strides, continues to be the hardest hit of the three levels. What we can extrapolate from this is that the entry level continues to be driven by investors and first time home buyers while many cash buyers and Bay Area buyers are driving the upper end. Our move-up market, however, continues to feel the challenges as buyers seem resistent to selling their home even though they may see the benefits of the move-up market. Here’s what we are seeing on a statistical level:
    • Tri-County market combined: With a 78.2% absorption rate, we saw a 13% increase month over month and a 38% increase year over year.
    • Entry level*: Standing at 85%, we saw a 16% increase month over month and a staggering 46% increase year over year.
    • Move-Up**: With a rate of 69.7% rate, we saw a 4% increase month over month and a 20% increase year over year.
    • Upper-end***: With a 53.2% rate, we saw a 17% increase month over month and a 30% increase year over

Click on the following graphs to further analyze the latest market conditions:

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Click here for Tri-County market conditions (all price points). Click here for Tri-County $0-$250,000.
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Click here for Tri-County market conditions ($250,000-$500,000). Click here for Tri-County $500,000+.
  • Months Supply of Inventory. I mentioned this last month as well but we continue to see a decline in months supply of inventory. Monthly Supply of Inventory is a good indicator that supply and demand are becoming more in balance. Right now the entry level market is at 3.8 which is really good, especially as compared to the last few years. This month the trend continued:
    • Tri-County all price points combined: 4.1 (August 2011)/5.9 (August 2010) – 31% decrease
    • Entry level: 3.8 (August 2011)/5.6 (August 2010) – 32% decrease
    • Move-up: 4.1 (August 2011)/5.25 (August 2010) – 22% decrease
    • 9.0 (August 2011)/10.9 (August 2010) – 17% decrease
  • Prices continue to remain relatively flat or stable. Here’s a lot at median price changes year over year of sold listings:
    • Tri-County all price points combined: $185,000 (August 2011)/$203,000 (August 2010) – 9% decrease
    • Entry level: $150,000 (August 2011)/$156,000 (August 2010) – 4% decrease
    • Move-up: $323,000 (August 2011)/$325,000 (August 2010) – 1% decrease
    • Upper-end: $600,000 (August 2011)/$615,000 (August 2010) – 2% decrease

Of course, the question on everyone’s mind is, “When will this market ever begin to change?” Well I’m not one to guess the future but what I can say is that there are multiple factors that suggest a stabilization of the market. Agents are really busy, we have a ton of buyers (many of whom are cash) who are scooping up the inventory and we continue to see historically low interest rates (and it seems as if they just keep getting lower). Screenshot20110923at104554AM

Many buyers are also weighing the pros and cons of renting versus buying right now. Interestingly, an article was just released by Time Moneyland noting the Top 10 Cities to Buy vs. Rent. Sacramento was listed as No. 6 in the nation. The report noted, “It’s actually cheaper to buy than rent in 74% of major U.S. cities, according to data from real estate search engine site Trulia.”

So while I won’t predict the future, I’ll leave you with this, the sweet spot has gotten even sweeter. Supply and demand are much more in balance than we have seen them in years, the indicators of a market stabilization continue to be prevalent and August was a notable month with inventory levels dropping dramatically. Make what you will of that and let’s watch next month’s numbers to see if we see a continued trend.

That’s it for now. Make it a great month.

Sincerely,
Kris

* Entry level: $0-$250,000 | **Move-Up: $250,000-$500,000 | ***Upper-end: $500,000+

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

Is Your Home Worth Less Than It Was Last Year?

Do you believe that your house has dropped in value?  If so, it is time to request a reduction in your property taxes.  The Sacramento County Tax Assessor accepts  requests until November 30th each year.

Proposition 8, which passed in 1978, amended Proposition 13 to recognize declines in value for property tax purposes. As a result, the Assessor is required to annually update the assessed value either a property’s Proposition 13 base year value factored for inflation, or its market value as of January 1st, whichever is less.  The Proposition 8 decline in market value assessments are temporary reductions that recognize the fact that the market value has fallen below its current Prop 13 factored value. Here is more info on Prop 8.

After the property value has been decreased and the assessment adjusted by the tax assessor, that property’s value must be reviewed each year as of the January 1st lien date, to determine whether its market value is less than its Prop 13 factored value. Prop 8 values can change from year to year as the market fluctuates. When the market value of the Prop 8 property increases above its Prop 13 factored value, the Assessor will once again update the assessment to the property’s Prop 13 factored value. In no case may a value higher than a property’s Prop 13 factored value be enrolled.

So, what to you need to do?  You need to contact us at www.ElkGroveRealEstate.com and request comps for your home so that you can complete the Assessor’s form.

Remember these important tips:

1.  You will need comparable sales(comps) from the time period of January 1st to March 31st.

2.  You should start the appeal process (information is on the application) if you have not heard back from the Assessor within a week to 10 days after sending in your application.  Don’t wait until the end of the month to send it in.  Do it now.

The process can be fairly simple and there are companies out there who can do it for you buy why would you want to spend a hundred dollars or so to have someone fill out a simple form for you.  You are trying to save money here.

Just email us at Jack.Edwards@cbnorcal.com with your address and contact info and we’ll pull the comps for you for you to complete the process on your own.

 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

What is SB 458 And How Does It Affect Me?

Earlier this year, the state legislature passed a bill, SB 458, that states that a lender cannot “require” the seller/debtor to make any contribution towards a second mortgage in order to do a short sale.  The reason behind this legislation was to protect the consumer from the lender.  Unfortunately, one of the possible ramifications of this legislation is that many of the second mortgage holders may not settle for what the first mortgage holder is providing from the proceeds of the sale and the second mortgage holder may stop the short sale from happening.

What is the short sell homeowner to do if they are faced with this problem?  Nothing says that the seller cannot “volunteer” a contribution to satisfy the second mortgate holder so that they can get the deal done.  For example, if the first mortgage holder says that the second mortgage holder will only receive $5,000, and the second mortgage holder responding to a short sale offer with a requirement that they receive $X more.  They don’t say where this money is to come from because they cannot require the seller to pay it.

In fact, this money may come from anyone, including the seller.

Just keep in mind that what ever is done, it must be fully disclosed to all parties and must be reflected on the HUD statement.

For more great information on legal issues, check out Steve Beede’s blog at sjbeede@bpelaw.com 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.