TheDawgByte

     It's hard to imagine the approach of Spring, when you're currently shoveling a foot or more of snow off your driveway or stacking another row of sandbags against the base of the hillside in your backyard.  Yet, Spring will be here and soon.  Ah, Spring, blooming flowers, green leaves on trees, warmer days and nights and that yearly ritual of cleaning.  Not just any regular cleaning...the big one: Spring Cleaning!

     For many, Spring Cleaning may entail some minor and major repairs of damages caused by Winter's hold: broken pipes, flooded basements, leaking roofs and more.  That being the case, I thought it might be helpful to go over a few tips that our State's Contractor License Board compiled for consumers needing the services of a contractor.

1.    Hire only licensed contractors.

2.    Check a contractors' license number. (Easily done online in many states or by phone in those not online.)

3.    Get three references, review past work.

4.    Get at least three bids. 

5.    Get a written contract and DO NOT sign anything until you completely understand the terms.

6.    Never pay more than 10% down or $1,000, whichever is less.


7.    Don't let your payments get ahead of the contractor's work.  Keep records of all payments.

8.    Don't make a final payment until you're satisfied with the job.


9.    Don't pay cash!

10.  Keep a job file of all papers relating to your project.

     These 10 tips are from the California State License Board.  Your state may have other suggestions, so be sure to check with them. 

     I've considered blogging on this topic for several months. Each time I put fingers to keyboard, I felt that my words failed to express my utter disgust for the big banks in this country: on the professional side, it's the mess known as Short Sales and Loan Modifications...on the personal side, it's having my personal and business credit card interest rates raised when I haven't missed a payment or been late.

     Like many, I've cursed the heavens because I felt helpless to do anything.  Recently, I discovered that I do have some power and some control.  The power is pure genius in its simplicity and impact.  Move Your Money from the giant financial beasts that devour your dignity and your deposits like some raging monster destroying Tokyo.  Forget this notion of "too big to fail"!  Put the giant monsters on a diet.  Move Your Money from them to your local credit union or community bank.

     But wait a minute!  What about the convenience of their nationwide ATM machines?  If I go to a smaller bank that doesn't have that national ATM chain, I'll be hit with withdrawal fees.  That's true!  And that is part of their master-plan to keep us all under their thumbs so they can bleed us dry with all sorts of new fees.  Here is my answer to that:  Move Your Money to a community bank or credit union and when you need some quick cash from an ATM take your new ATM card into a nearby store or gas station and buy some gum or beef jerky and then get cash back.  Sure, there will be some inconveniences, but imagine how you'll feel knowing that the financial beasts are not picking your pockets any more.

     It's time to give the big financial beasts a shot across the bow of their greed and arrogance.  It's time to pull our wallets from between their gluttonous and insolent fangs.  It's time to make them "lean enough to fail" .  The American people pulled their butts back from disaster once...never again.  Do I sound mad and angry?  Well, I am.  Remember the great scene from the movie "Network" when he raises the window and screams out into the world, "I'm mad as hell and I'm not going to take it anymore!". 

     The people in this country need to open their windows and tell their neighbors and their friends to "move your money".  We all should be mad as hell at the giant banks for their greed and arrogance and we should be mad at ourselves for feeling helpless to do anything about it as we watch more and more fees being attached to our credit cards, checking accounts and savings accounts.  Still not convinced?  Go to www.MoveYourMoney.info for more informatin.

"We cannot defend freedom abroad by deserting it at home."  -- Edward R. Murrow

     The National Association of Realtors' educational program, At Home With Diversity, is an excellent program for those in our profession looking to enhance and improve their skills and abilities when working with diverse cultures.  It does, however, have a significant piece missing.

     The National Association of Realtor' Code of Ethics states:

 1.   Realtors shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin.  Realtors shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin. (Amended 1/90)

 2.   Realtors, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin.  (Amended 1/00)

      I encourage the National Association of Realtors to include in their Code of Ethics the term "sexual orientation".  This protection for the LGBT community (Lesbian, Gay, Bi-sexual and Transgender community) isn't the major leap that many in our profession might think it is.  The phrase "sexual orientation" is already included in The One America Principles referenced in the At Home With Diversity educational course.

      I decided to write this blog entry on the 4^th of July because I believe in Life, Liberty and the Pursuit of Happiness for all in this country.  What better day to encourage the National Association of Realtors to include "sexual orientation" in their Code of Ethics than the day that celebrates our nation's commitment to freedom for all.

     Lately, I am hearing and reading about what real estate agents will and won't do when it comes to returning phone call, responding to emails, being available for clients and other agents.  In a word: sad.

      Some have indicated that they won't return calls after hours.  Maybe I'm just old, but when did real estate have hours like banks and retail stores?  Some have said that they differentiate between calls, emails, and questions of clients from those of other agents.  Maybe I am just old, but when did the other agent in a transaction not become our client, too?  Some have written that they only have 24 hours in their day.  Maybe I'm just old, but when did a day have anything but 24 hours?

     It got me thinking...all these blog entries and social networking comments about real estate and what some real estate agents will or won't do when it comes to returning calls, responding to emails and being available for clients and other agents.  No maybe about it...I am old.  To quote the wonderfully funny, Moms Mabley, when asked about old age, "You just wake up one morning, and you got it!"

      I love being a Realtor.  I enjoy seeing people achieve the goal of homeownership.  I am proud of my small role in helping that to happen.  It touches deep inside me when a five year old gets to romp in a big back yard after spending his or her first four years in an apartment with only a patio for outside playtime.  I feel honored that a senior citizen selected me to help them downsize from their large two-story home into a more accessible one-story senior condo.

      It costs me nothing to return an agent or client call at 9:00 pm.  It doesn't prevent me from going to one of my grandkids' school events to respond to an agent or client email on my fancy wireless do-dad phone, before I take my seat in the front row.  It doesn't impact my vacation to respond to a concerned agent or a nervous first-time home-buyer when I'm camping or traveling Tuscany.  It's the nature of the beast and I freely decided to ride it.

      So one day I just woke up in the morning and realized I'm old...old school when it comes to real estate.  I believe strongly in professional courtesy between agents and brokers.  I believe in being client-centered.  And I believe you can do all of this without sacrificing time with family or friends.  So here's my blog post and now I am going to go pickup two of my grand-daughters that live near me and we are going to go see a movie titled "UP" and we are going to have popcorn, soda and candy.  The tickets are cheaper for the early movies, you know.  Family time doesn't have to cost an arm and a leg.

     Housing and Urban Development Secretary Donovan announced on May 29, 2009 to a meeting of homebuilders that the Federal Housing Administration will allow qualifying "first-time" homebuyers to use the previously announced $8,000 tax credit towards the purchase costs of a FHA insured home.  So what does that mean to the qualifying "first-time" homebuyer?

      The homebuyer can only access the $8,000 tax credit after filing their tax returns with the Internal Revenue Service.  FHA guidelines require a homebuyer to make a minimum 3.5 percent down payment, so the end result is that the $8,000 tax credit can be used as additional down payment or for other closing costs.  This could help the homebuyer get a lower interest rate.

      As with all government programs, there are a great number of conditions and so it is critical for real estate professionals and their clients to understand the program and the process.  A good jumping off point is to get more information on this HUD program by going to http://www.hud.gov/news/release.cfm?CONTENT=pr09-072.cfm   Another resource for real estate professionals and their clients is the HUD Mortgagee Letter 2009-15 at http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-15ml.doc which goes into greater program details.

      As with all government efforts so far, this is not a silver bullet to cure all the ills of our housing market.  It is, however, another step in correcting the failures of the past.  As Secretary of Housing and Urban Development Donovan told the homebuilders, "What we are doing today will not only help families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

     I feel very fortunate to live and work in a city that is one of my strongest marketing tools as a Real Estate Broker.   So many prospective home buyers from other states and Canada email or call me after reading on our website that Mission Viejo has been ranked one of the country's safest cities for the past several years.  The CQ Press report, based on FBI crime statistics, has Mission Viejo ranked the 2^nd Safest City in the United States for 2008, while the Uniform Crime Report for 2008 ranks Mission Viejo as "America's Safest City."  In 2007 all crime reports ranked Mission Viejo as "America's Safest City."

     Mission Viejo offers home buyers the grand troika of Southern California's wonderful lifestyle: sun, surf and safety.  Established in 1968 as one of the first master planned communities in the country, Mission Viejo's success is in feeling more like a city than a master planned community.  It has that hometown feel that seems to be missing in so many other master planned developments.

     Mission Viejo offers everything under the sun for outdoor enthusiasts, from fishing and boating on beautiful Lake Mission Viejo to hiking on our many trails. Did I mention the surf?  Mission Viejo is only minutes from the restful and romantic waves and beaches of the Pacific Ocean.  People tend to ponder such things when shoveling five feet of snow from their driveways. And safety!  Mission Viejo is ranked as one of this country's safest cities. 

     As a Real Estate Broker in Mission Viejo, I feel fortunate to live and work in a city that has so much to offer home buyers looking for a great place to live.  It certainly makes marketing a property exciting and fresh. 

     I just planted lavender in my backyard.  I mean, no big deal...right?  Well, I did get up at 5:00AM to accomplish this feat of gardening.  And now, I'm sitting here in front of my pc to write something stirring and relevant about the real estate market when it hits me.  I just planted lavendar in my backyard!  And it is relevant to the real estate market.

     How?  I'm into my backyard again!  That's a real Martha Stewart "it's a good thing" moment.  It's a positive moment!  I'm into my backyard again.  I'm not in my office pouring over local and national real estate trends and fretting over this bailout or that pay bonus.  I'm feeling positive and planting lavender in my backyard.  A sign?  Did the Cosmos just tap me on the shoulder?

     A sign!  I've been needing a sign, you know.  Yes, I'm a real estate broker and yes I've seen all the positive indicators about the real estate market.  But inside...the me deep inside...has still been waiting for that personal sign that things are turning around and improving.  I just planted lavender in my backyard...and early in the morning!  My personal sign that positive things are happening...that is it.

     Dang, this cup of coffee is the best I've had.  I think I'm ready to write that moving blog piece about the real estate market.

    

      The California Association of Realtors is launching a new program today called the California Association of Realtors' Housing Affordability Fund Mortgage Protection Program.  While it is a mouthful to say, the California Association Realtors is putting some money where their "mouthful" is.  The program is designed to address the concerns of first-time home buyers nervous about entering the housing market because of fears over potential job loss and then not being able to pay their monthly mortgage.

       The new program from C.A.R. provides that first-time home buyers who lose their jobs due to layoffs may be eligible for up to $1,500 per month for up to six months to assist them in making their mortgage payments.  A qualified co-buyer may also take part in this program and receive up to $750 per month up to six months if they suffer a job loss due to being laid off.

       To qualify for the California Association of Realtors' Housing Affordability Fund Mortgage Protection Program, the applicants must:

          Be a first-time home buyer (someone who hasn't owned a home in the last three years

          Open escrow April 2, 2009, or later, and close on or before December 31, 2009.

          Use a California Realtor in the transaction

          Purchase the property in California

          Be a w/2 employee (can not be self-employed or military personnel)

       This program is an important step taken towards the stabilization of the California real estate market and the California Association of Realtors is to be congratulated on its proactive response.

         If you are a first-time home buyer sitting on the proverbial fence about buying a home, give your Realtor a call to learn more about the benefits of this C.A.R program.  (Now for a bit of shameless self-promotion)  If you don't have a Realtor, give me a call to learn more about the benefits of this program or to request an application.

     Are we beginning to see light at the end of the tunnel when it comes to the downward spiral of the real estate market?  The answer may well be yes. 

     Historically low interest rates on mortgages, 4.85 percent this week on a 30 year fixed rate mortgage, have helped spur a surge of 32.2 percent in mortgage applications as of March 20, 2009.  Interest rates are well below the 5.74 percent of a year ago.

     This week, the National Association of Realtors released figures showing an increase of 5.1 percent in existing home sales from January 2009 to February 2009.  It was the largest sales jump since July 2003, according to the National Association of Realtors.

     In Los Angeles and Orange counties, the number of sold properties is up from this time last year, while the inventory of properties for sale in months' supply is down from this time last year, as is the Days On Market for properties being sold.  All are positive indicators for the real estate market.

     One negative indicator remains the sales price of properties.  Distressed properties accounted for 40 to 45 percent of transactions in February, according to the National Association of Realtors.  Lawrence Yun, chief economist for the National Association of Realtors states in a NAR news release, "Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price."

     But is that changing, too?  Recently I had a Buyer submit several full price Offers on several distressed properties in Los Angeles County and not get his Offers accepted on any of them.  I revisited these properties on my MLS at Close of Escrow to discover that many of them had sold for over-asking.  One of the properties sold for $20,000 over the Asking Price.

     So are we witnessing the stabilization of the real estate market?  Unfortunately, I do not have a crystal ball to look into the future.  However, if these positive trends continue the answer will be a resounding yes.

     My youngest granddaughter attends first grade at an Orange County school that received a distinguished designation.  Her teacher is great at her profession.  I admire anyone that can keep a classroom of first graders involved and learning.  The other teachers that I have met at this school also strike me as engaged with their students.  The principal, too, shows great concern for the well-being and education of the students.

     From a real estate perspective, this "Distinguished" school is a powerful marketing tool.  I have clients looking to buy a home in this area because of the quality of the schools.  So what's wrong?

     It's wrong when a school can't purchase ink cartridges for their printer and so it sits, collecting desk in the school's Office, forcing teachers to pay for copies at the local copy shop out of their pockets.  It's wrong when the supply of text books can't meet the demand of increasing student populations in the classrooms. It's wrong when talented and motivated teachers are given pink slips because of a state budget crisis. 

     So what can be done?  In terms of big picture, we need to be writing our elected leaders at the local, State and Federal levels and demand that education be of primary importance.  As a Real Estate Broker, why should I care?  Well, besides the obvious...five grandchildren in public schools here in southern California...it makes good business sense.

     A well educated population of buyers and sellers makes for an informed population of buyers and sellers and that is good business.  Home Buyers and Home Sellers who can understand a "market trend" from a "fashion trend" make for good business.  A Seller who understands their Listing Agreement or a Buyer who understands their Residential Purchase Agreement decreases the chances of legal issues arising and that is good for business. 

     In terms of small picture, we need to help our schools and teachers get through this budget crisis.  What can be done?  Adopt a teacher or a classroom.  If you have children or grand-children in school, select their school or their teacher.  Then what?  Make a pledge to yourself that from each Escrow you close, you will donate $50, $100 or more in school supplies to that classroom or teacher.  Purchase a gift card at one of the many office supply stores and donate it to that teacher or classroom, that way they can get exactly what they need.

     Adopting a classroom or teacher won't solve all the problems facing our schools and children.  It will, however, provide some breathing room for the wonderful people preparing our children for the future.