“We must make every effort to promote recovery in every responsible way we can,” stated FHA’s acting commissioner, Carol Galante.  Speaking with DSNewa.com, she went on to say, ““This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight.”

In order to avoid potential for predatory activity, the waiver contains specific language and conditions to prevent over-inflated transactions.  For one thing, FHA-backed financing must be conducted at arms-length, allows no link between buyers and sellers.  Another aspect of the waiver requires documentation to justify sales prices 20% or more over the seller’s acquisition cost.

Most flipping activity occurs well within 90 days of purchase.  Before allowing the waiver, FHA’s research concluded that by disallowing flipped properties – at least on a temporary basis – it would hamper an important part of the recovery.  Since its implementation in February 2010, the waiver’s reach has been staggering:  42,000 mortgages worth in excess of $7 billion.

That’s over $7 billion of sales and 42,000 homes that might not have been…

• Brevity is key.   Lengthy paragraphs consume bandwidth.  Keep your web content brief. Eliminate Flash – it hogs memory and isn’t compatible with many mobile devices.
• Turn the tables.  Since you probably don’t have every wireless device available, use HowToGoMo.com to evaluate your site’s appearance on mobile devices.  You can check button sizes and your site’s searchability (to name a couple), with a complete suite of functions to ensure a better mobile experience.
• Safety first.   Having an app like “Red Alert” will give you peace of mind when you’re out and about.  With features like automatic 911 dialing and hospital locations, you can rest assured that you’re safe with this app.
• Receipts be gone!  When you’re constantly on the go, tracking expense receipts can become a challenge.  With the “Expensify” app, you can use your smartphone’s camera to digitally track your receipts – and cut out the paper mess.
• How far?  An app called “MileBug” lets you track mileage for one or more cars.  It also lets you move files seamlessly to your PC or laptop.
• “Magic” floorplans.  The “MagicPlan” app allows users to create interactive floorplans with your smartphone.  You can easily make measurements and publish results to your website.
• Track your leads.  With the “Open Home Pro” app, you can sign in clients at Open Houses, then immediately send them a thank you with more information about properties.  If the status changes on a property, you can notify the attendees of the change.

With a little time and effort, these tips can help you better manage your business on the go, letting you focus on the most important thing:  your customers.

But, there’s another way agents can take advantage of the time – especially if they have properties on the market: winter open houses. Not only does it mean less competition, but it also means that sellers may find a pool of more serious buyers – such as parties relocating to the area in the 1st quarter.
With most new listings taking place in the spring, agents with sellers on tap for the new year can benefit from “early” listings. It allows a home to stand out early – instead of just being another needle in the haystack. It also increases the likelihood of offers that stick.

Speaking with the Star-Ledger, Prudential’s Marilyn Bailey states it best: “[Winter] is a nice time of year to shop — not as many buyers are out there, so you’re not competing with other offers as much.”

This stage of the process is called “escrow.”  Escrow is considered “open” as soon as the buyer’s good faith deposit reaches the escrow agent / escrow company (stand-ins may be a title company, an attorney, or any agent authorized by your state to “close” a real estate transaction).  It is at this point that an escrow agent and a unique file number are both assigned to the account.

This escrow agent will be responsible for tracking escrow through to closing. He or she will also be the point of contact for parties involved in the transaction (buyers and sellers) and will have the ability to give ongoing status and answer any questions regarding everything in the escrow process – from title search to insurance.  Once all the documents have been gathered and signed, money “officially” changes hands, and escrow (and the transaction / sale) is deemed “closed.”

Qualifying for a mortgage has become more of a challenge these days, but there are things that you can do to increase your odds of getting the best loan.

• Review your credit report. Make sure everything being reported belongs to you and reflects your true payment record.  Contact individual creditors to request corrections.  Once the creditor has corrected the error(s), check your credit report to ensure your record has been updated accurately.
• Clean up credit. Make timely payments, pay off any collections and pay down credit card balances.  Not only will it increase your credit score, it will show to potential creditors that you’re being responsible with your obligations and keeping debt levels low.
• Be honest. Don’t neglect to document credit issues, sources of income, or assets.  Not only could such omissions delay application and/or approval, they could lead to a denial of credit altogether.
• Gather documentation. Ensure your paystubs, investment and bank statements are accurate, both in amounts, names, and addresses.  If you’re putting a down payment on the property, be prepared to provide documentation on the source of the funds.
• Review Good Faith estimates. Make sure you’re comparing apples to apples and know all the fine print of the loan(s).  Don’t just focus on paying the lowest APR, as there can be negative terms buried in the fine print, such as prepayment penalties and origination fees.

While some of these steps may take several months to complete, they can pay off in the end by allowing you the best loan with the lowest rate possible.

Speaking with Housingwire.com recently, Barclays Capital analyst Stephen Kim observes that “in the absence of government homebuyer incentives, prices for non-distressed home sales have stabilized for almost a year.”   This news, coupled with an uptick in jobs and new housing starts in November, this comes as very welcomed news for wary first-time homebuyers, many of whom have been waiting on the sidelines for the “right” time to buy.

While timing the market seldom works, many first-time homebuyers have held off on making what will likely be the largest purchase in their lives.  What are they waiting for?  Palpable signs that housing prices have leveled out and that the economy is finally back on firm footing.  As Kim concludes, “Housing’s recovery depends primarily on when these first-time buyers decide it is safe to buy a house.”

Smartphones have become a part of our lives that professionals simply can’t live without.  They keep you from lugging around a Day Planner and provide you with the freedom to spend more time in the field instead of the office.  As a result, it’s important that you safeguard your Smartphone.  By following these tips, you can minimize your risk of losing important information:

1. By setting up a password to access your device you ensure that an unauthorized user won’t have access to data on your phone should it be misplaced (temporarily or permanently).
2. Before installing new apps on your device, read other user reviews.  New or unreviewed apps can leave you vulnerable to security and privacy holes.
3. Minimize application data transfers.  Many apps will tap into data stored on your phone (e.g. contacts).  Make sure that any application asking for access to data on your phone has a legitimate reason for requiring that data.
4. Minimize use of Bluetooth.  Oftentimes, your Bluetooth password is short, making it easy to figure out.  To ensure that your communications aren’t being compromised when you’re using a Bluetooth device, punch up that password.  Use a wired headset to avoid any unwanted access or transmission of your calls.
5. Conduct regular housekeeping.  Regularly review apps you have installed on your device.  Delete those you don’t use to avoid unnecessary open connections to your data.
6. Don’t answer unknown calls or texts.  Messages from unknown or blocked callers can be attempts to “phish” for personal data.  If you get a call or text from an unknown number, do a web search to find out if any other users have documented scams associated with the number(s).
7. Always close your browser.  Occasionally, mobile sites (even those that are password-protected) can remain open on your device indefinitely.  Especially sensitive are banking and email sites.
8. Don’t trust an “update” link sent via email or text.  Verify directly with the app developer, either through your device’s app store or the app developer’s website for verification.  Hackers will use phishing techniques like this to access to user passwords and other sensitive data.

While Smartphones do present a security risk for all users, following these tips can help you keep your most sensitive data out of the hands of thieves and hackers.

Over the last ten years, the quantity of homes that are occupied by renters has increased nearly 34%.  That’s great news for landlords or for anyone looking for a long-term investment of 10 years or more.  The good news continues… In 2010, average rental rates jumped by more than 12% over levels the previous year.  The trend doesn’t show any sign of fading:  demand continues to rise and vacancies remain at record lows as more renters flood the market searching for rentals.

For owners of multiple properties or empty-nesters looking to downsize, this presents an incredible opportunity.  With mortgage rates at historic lows, this may be one of the best times for prospective real estate investors to enter the market as landlord. 

Experts advise that, when seeking investment properties, it’s best to stick close to home.  That will help make management of the property less costly and stressful.  Due to stringent borrowing standards, investors are also cautioned to avoid properties with more than four units.  Oftentimes, down payment requirements are far higher.  Another common tip is to focus on properties where your income/cost spread will allow a 20% (or more) monthly cushion.  That helps provide a buffer to cover repairs and the cost of property management, as well as giving you a pad for potential vacancy between tenants.

For those with the desire and wherewithal, rental properties can be a boost to a long-term investment portfolio, providing owners with an additional source of income while also being low-risk.

CV Escrow is pleased to announce the opening of our new Palm Desert office.  Our Palm Desert office has re-located to 73993 Highway 111, Suite 201, Palm Desert, California 92260.  In continuing our promise of providing outstanding escrow services to the desert area’s real estate community, our new office location provides us a larger environment to better serve our growing client base. 

CV Escrow – Palm Desert Office Manager and Escrow Officer, Joyce Cooper, has over 40 years of escrow experience and is a tremendous source of information for clients here in the Coachella Valley.  Joining Joyce in our Palm Desert Office are Escrow Officers Irene Ring and Judith Sevilla, and Escrow Assistant Lois King.

From Left: Escrow Officer, Irene Ring, Office Manager and Escrow Officer, Joyce Cooper, Escrow Assistant, Lois King, and Escrow Officer, Judith Sevilla

For more information about how the CV Escrow – Palm Desert Team can help you, please feel free to stop by!  We can be reached at:

We are down to the last five real estate laws and regulations that will go into affect in the near future. These new regulations include information about citations, escrows, exemptions, appraisal issues, and items pertaining to small claims court. With only a few months remaining in 2011, we hope that your year wraps up on a very successful note!

DRE Issuing Citations and Fines: Starting January 1, 2012, the DRE can issue a citation and fine up to $2,500 if, upon investigation, it has cause to believe that a licensee has violated the DRE rules, or a unlicensed person has engaged in licensed activities.  The person cited can request a hearing within 30 days from receipt of the citation.  The citation and fine will be in lieu of DRE disciplinary action for the offense cited, and the citation will not be reported as discipline.  However, failure to comply with the terms of the citation or pay the fine within a reasonable time specified by the DRE shall result in disciplinary action and non-renewal of license.  The DRE may also apply to a superior court for a judgment in the amount of the fine and an order compelling compliance.  All administrative fines collected will be deposited into the Real Estate Recovery Fund, which has, under Senate Bill 706, been renamed the Consumer Recovery Account.  Additionally under this law, if the DRE delays the renewal of a license due to a pending disciplinary action, the license will not expire until the results of the disciplinary action are final or the license is voluntarily surrendered, whichever occurs first.  This law also gives the DRE the authority to make public information confirming the fact of certain investigations or proceedings regarding a licensee, and to apply for a court order to enforce a subpoena if a licensee has refused to obey.  Senate Bill 53.

Reporting Broker-Owned Escrows and Securities Qualification Exemptions: Starting July 1, 2012, a broker who conducts escrow activities for five or more transactions in a calendar year under the broker exemption from the Escrow Law, or whose escrow activities are $1 million or more in a calendar year, must file with the DRE an annual report of the number of escrows and dollar volume.  The report must be filed within 60 days after the end of a calendar year in which the threshold is met.  A failure to submit the report will be penalized at $50 per day for the first 30 days and $100 per day thereafter, up to $10,000.  A broker who fails to pay the penalty may be subject to license suspension or revocation.  All penalties collected will be deposited into the Consumer Recovery Account under the Real Estate Recovery Program.  Effective January 1, 2012, this law also requires a broker who files certain information with the DRE for an exemption from securities qualification to submit a copy of that information to any investor who gives funds to the broker in connection with a transaction involving the sale of a series of notes (or undivided interests in a note) secured by real property under section 10237 of the California Business and Professions Code.  Senate Bill 53.

DRE Suspending Largest Tax Delinquents: Commencing January 1, 2012, both the State Board of Equalization and the Franchise Tax Board must periodically make public a list of the 500 persons with the largest tax delinquencies in excess of $100,000.  The lists must include, among other things, each taxpayer’s occupational or professional license numbers.  The DRE and other state governmental licensing entities (with certain exceptions) must suspend and refuse to issue or renew an occupational or professional license for anyone on either tax delinquency list.  Assembly Bill 1424.

Agents Handling Appraisal Issues: Beginning January 1, 2012, a licensee cannot knowingly or intentionally misrepresent the value of real property.  Furthermore, a licensee who offers or provides an opinion of value of residential real property that is used as the basis for originating a mortgage loan cannot have any direct or indirect interest in the property or transaction as defined under Regulation Z (at 12 C.F.R. section 226.42(d)).  A licensee or other interested party is also prohibited from using coercion, extortion, bribery, intimidation, compensation, or instruction to improperly influence a person preparing an appraisal or valuation for a real estate transaction.  Senate Bill 6.

Increasing Small Claims to $10,000: Commencing January 1, 2012, the small claims court jurisdiction will generally increase from $7,500 to $10,000 for an action brought by a natural person.  For a claim of bodily injury from a car accident, the increase to $10,000 will not occur until 2015.  The dollar limit in small claims court for an action brought by a corporation or other entity will remain at $5,000.  Senate Bill 221.

This week we are sharing the next group of 2012 real estate laws that California Association of Realtors recently announced. We understand that keeping up with regulations, technology and market conditions can be tricky, so we hope that you find this article helpful. Stay tuned for the final five laws that you need to know about.

Sellers Disclosing Water-Conserving Plumbing Fixtures: C.A.R. successfully sponsored a new law, effective January 1, 2012, revising the Transfer Disclosure Statement (TDS) to include a checkbox in Section A for the seller to disclose whether the property has water-conserving plumbing fixtures.  The revised TDS also clarifies at the end of Section B that, by January 1, 2017, a single-family residence built on or before January 1, 1994 must generally be equipped with water-conserving plumbing fixtures.  If, however, that single-family home is altered or improved on or after January 1, 2014, the water-conserving plumbing fixtures must be a condition of final permit approval.  Water-conserving plumbing fixtures are low-flow toilets, shower heads, and faucets under section 1101.3 of the California Civil Code.  C.A.R. intends to release a revised TDS form in November 2011 to comply with this law.  Senate Bill 837.

NHD Companies Disclosing Mining Operations: Starting January 1, 2012, a company preparing a natural hazard disclosure (NHD) statement for a prospective buyer, as required for certain transactions, must also disclose whether the property is located within one mile of a mining operation, according to map coordinate data from the Office of Mine Reclamation.  If a property is within one mile, the NHD company must give a specified notice that such mining operations may cause inconveniences.  Senate Bill 110.

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.

Brokers Designating Managers: Under another law that C.A.R. sponsored, effective July 1, 2012, an employing broker may appoint a licensee as a manager to supervise the licensed activities, clerical staff, and day-to-day operations of a branch office or division.  An appointed manager who fails to properly supervise licensed activities will be subject to disciplinary action by the California Department of Real Estate (DRE).  Appointing a manager, however, does not limit the employing broker’s supervisory responsibilities.  The appointment of a manager must be in a written agreement in which the manager accepts the delegated responsibility.  The employing broker must notify the DRE when a manager has been appointed or terminated.  A licensee cannot be an appointed manager if the licensee holds a restricted license, is or has been subject to a debarment order, or is a salesperson with less than two years of full-time real estate experience within the last five years.  Senate Bill 510.

Strengthening DRE Enforcement: Effective January 1, 2012, the DRE will have greater disciplinary authority to achieve its highest priority of protecting the public.  A licensee will be required to report to the DRE within 30 days of any of the following: (1) disciplinary action taken by another licensing entity in California or another state, or by a federal governmental agency; (2) an indictment or information charging a felony against the licensee; or (3) a conviction of a felony or misdemeanor, including a plea of guilty or no contest.  Failure to comply with this reporting requirement will be cause for discipline.  The DRE’s broader disciplinary authority will also include, among other things, the ability to automatically suspend the license of anyone incarcerated after a felony conviction.  For disciplinary actions, the DRE can conclusively presume without a hearing that a licensee’s conviction of murder, rape, lewd and lascivious acts, or a violation of dangerous drugs or controlled substances laws is substantially related to the licensee’s qualifications, functions, or duties.  The DRE will also be able to enter into a pre-prosecution settlement with a licensee or applicant instead of issuing an accusation or statement of issues, but the settlement shall be considered discipline.  Additionally, the DRE can request that a disciplinary order requires the disciplined licensee to pay reasonable investigation and prosecution costs.  Failure to pay can result in non-renewal of license.  The DRE can also require that a restricted licensee pays the costs for monitoring the licensee and monetary restitution to any person who sustained damages caused by the licensee’s misconduct.  Again, failure to pay can result in non-renewal of license.  Senate Bill 706.

Recently, the California Association of Realtors announced a list of new laws and regulations that agents and brokers need to be aware of, not only for their own knowledge, but also for their clients. To help you in understanding these updates, we will be posting the new laws over the next few weeks to assist you educating yourself on these very important updates.

1. Revising the Notice of Sale: Effective April 1, 2012, a notice of trustee’s sale for the non-judicial foreclosure of one-to-four residential units must contain specified notices to the owner on how to seek postponement of the trustee’s sale, and to potential bidders on the risks involved in bidding at trustee auctions.  Additionally, a lender or authorized agent must make a good faith effort to provide up-to-date information about sale dates and postponements to persons who want this information.  The lender must also provide updated information through the Internet, a telephone recording, or any other means that allows free access at any time.  Senate Bill 4. Read Full Text

2. Renting Out Condominiums: C.A.R. also successfully sponsored legislation protecting owners’ right to rent out their units in common interest developments.  Starting January 1, 2012, an owner in a common interest development is exempt from any prohibition in a governing document against renting or leasing the unit, unless that prohibition was in effect before the owner acquired title to his or her unit.  When renting out a unit, the owner must give the HOA verification of the owner’s acquisition date, and name and contact information of the prospective tenant.  An owner’s right to rent under this law does not terminate for certain transfers of title, including, but not limited to, probate, spousal, parent-to-child, adding a joint tenant, and other transfers exempt from property tax reassessment.  For sales transactions, the required HOA disclosures must include a statement describing any prohibition in the governing documents against renting or leasing.  This law does not apply to rental prohibitions in effect before 2012.  Senate Bill 150. Read Full Text

3. Tenants Smoking Ban: Beginning January 1, 2012, a residential landlord can prohibit the smoking of cigarettes and other tobacco products on the property, including any dwelling unit, building, other interior or exterior area, or the premises on which the property is located.  For new tenants on or after January 1, 2012, the areas where smoking is prohibited must be stated in the lease or rental agreement.  For preexisting tenants before 2012, a new provision prohibiting smoking is a change in the terms of tenancy that requires adequate written notice, depending on whether the tenancy is month-to-month or for a fixed term.  Senate Bill 332. Read Full Text

4. Tenants Displaying Political Signs: Effective January 1, 2012, a residential tenant can generally display political signs related to elections, legislative votes, initiatives, and other political matters as specified, but the landlord can make reasonable restrictions as to location, size, and duration of display.  In a single-family dwelling, a tenant’s political signs can be displayed from the yard, window, door, balcony, or outside wall of the leased premises.  In a multifamily dwelling, a tenant’s political signs can be posted in the window or door of the leased premises.  A landlord can restrict the size of a political sign to six square feet.  A landlord can also prohibit a tenant from displaying political signs that violate local, state or federal law, or a lawful provision in an HOA’s governing documents.  A tenant must remove political signs in compliance with time limits set by local ordinance, or absent such time limits, the landlord can reasonably restrict the posting of a sign to 90 days before an election or vote, and its removal within 15 days after the election or vote.  Senate Bill 337. Read Full Text

5. Tenants Recycling Rights: Commencing July 1, 2012, a multifamily residential dwelling of five or more units (or a multifamily residential dwelling or business that generates more than four cubic yards per week of commercial solid waste as defined) must arrange for recycling services.  The intent of this law is to address the challenges local governments are facing in reducing solid waste disposal in multifamily properties.  The required recycling services are to be consistent with state or local laws, to the extent that these services are offered and reasonably available from a local service provider.  The property owner of a multifamily residential dwelling may require tenants to source separate their recyclable materials to aid in compliance with this law.  Assembly Bill 341. Read Full Text

*Information provided by the California Association of REALTORS

You may have noticed that energy-efficiency ratings have started popping up in residential listings.  That may be because of recent findings published by The Earth Advantage Institute, a non-profit group in Portland, OR, who found that certifications from Energy Star or LEED (Leadership in Energy and Environmental Design) boost sale prices by an average of 8%.  The news is even better for existing construction:  certifications add a premium of about 30% to the home.

But wait, there’s more!  In Portland, OR, a recent review of residential listings showed that energy-efficient homes spent 18 days less time on the real estate market than comparable non-certified properties.  That might help explain why banks have started picking up on the trend.  They realize that a borrower who pays less to heat and power an energy-efficient home is better able to pay the mortgage, and therefore, presents less risk to the underwriting bank.  Appraisal companies are becoming more attuned, too, introducing training programs that educate their field appraisers on what to look for and how to integrate their findings into valuations.

As the move toward energy-efficiency and sustainability continues, this may become more the rule than the exception.  At the end of the day, it’s becoming clearer:  energy-efficiency saves owners money and time.

The last few days before closing escrow can be a stressful time for homebuyers and sellers.  However, there are a few things you can do to ensure a timely and smooth close. 

1. It’s important to review your final closing statement or HUD-1 statement a day or two before closing.  Look over the calculations to make sure that the buyer is receiving credit for all deposits and any other credits due from the seller.
2. Review all escrow and title fees to make sure they accurately reflect what you were told and that you agree to them.
3. Look over the preliminary report to confirm the legal description of the property and any liens or other items that may have been discovered.  Make sure all items that you did not agree to will be removed at the close of escrow.
4. Be sure escrow or title has your correct vesting (the way in which you want to take title).
5. Inspect the property one last time prior to closing to verify that everything is the way you expect it to be, and that all agreed upon repairs or work have been taken care of.

It is also very important that all conditions of the purchase contract are met prior to closing, and that all instructions that were given to the closing agent have been completed.  If you have double checked that all items are correct, it’s time to sign the closing documents!

Facebook’s Video Calling feature allows you to chat real-time, face-to-face, while multi-tasking.  Whether you’re text chatting or posting photos of a listing, Facebook allows you to do it all in one location.  Oftentimes, you may have a client or colleague who isn’t in the immediate area.  Facebook Video Calling allows you to interface with them on the Internet, one-on-one, from your office.  Whether it’s exploring options on a listing, talking with another agent about an offer, or working with a contractor on repairs, Facebook Video Calling keeps you connected when you need to be.  Most likely, you’re already connected with a lot of those same people on Facebook anyway!

To take full advantage of Facebook Video Calling, you and the recipient need a webcam and microphone (starting at around $30).  Once you’ve got the hardware, you open a Facebook chat session with the recipient and click the Video Camera icon.  When you’re doing this for the first time, you’ll have to download and install Facebook’s Video Chat software – but during that time, Facebook will alert you to which of your other contacts are already enabled for Video Calling.  If the recipient you’re calling doesn’t have a webcam, they’ll still be able to see and hear you – you just won’t be able to see them.

It’s not just status.  The powerful (and inexpensive) Video Calling feature can help you maintain personal connections – and could help give you an edge over the “other” agent!

On the Internet, there are many different ways a client can find you and your listings.  That makes information like knowing where they came from, what led them there, and how long they stayed on your site all the more important.  With a few minutes of your time, Google Webmaster Tools can help you figure out what’s working best for your online presence.

“Google Webmaster Tools,” says Jimmy Macklin at theMLSapp.com, “provides insight on keyword rankings, impressions, and CTRs… priceless for Realtors looking to optimize their sites.”  You can optimize your site(s) to boost traffic from elsewhere on the web, simply by using the applications that Google offers.

To add and verify your site:

1)       Login to your Google Account (if you don’t have one already, you’ll need to create one).

2)       Find “Webmaster Tools” under “My Products.”

3)       Click “Add a site” and type the full URL for your site (e.g. http://www.mysite.com/).

4)       Click continue; the site verification page will open.

5)       Select the desired verification method, then follow the prompts to complete.

6)       Repeat as necessary for each of your unique sites.

As you determine what’s driving clients to your website, you can customize content, focusing on your own unique brand.  By creating memorable content that is also useful and timely, you allow more opportunities for your clients to connect with you.  Before long, you’ll be connecting with more clients!

 As a seller in the current market, you might find yourself wondering on occasion if now is the right time to sell. If you’ve seen a decrease in the number of visitors to your property, don’t pull the listing. Instead, look at these ways you might improve your chances of finding a buyer:

1. Review the price.  Speak with your agent, especially if your house has been listed for more than a month.  Take a look at recent comps to ensure your price is in line.  If necessary, get a fresh appraisal to ensure your price makes sense.
2. Create curb appeal.  Potential buyers explore neighborhoods before they set up viewings.  As such, make sure your house looks as beautiful on the outside as it does on the inside.  If you have any out-of-season flowers or shrubs, consider sprucing them up.
3. Improve interior appeal.  Sometimes all it takes is a simplification:  store the knick-knacks and extra furniture.  A fresh coat of paint may be in order.  Work with a staging company to ensure that any of those “problem” spots in your home look wonderful and inviting!
4. Update your listing.  These days, most buyers start looking for homes online before they view homes.  Review your listing, and make sure the pictures in your listing represent your house beautifully and accurately.  If you’ve done anything along the lines of items 2 or 3, take updated pictures and make sure they’re updated online.
5. Negotiate.  It used to be the buyer who had to do this.  Now, it’s the seller’s turn.  Make sure you consider all advantages of an offer before rejecting it outright.  The ground between you and the buyer may be much smaller than it initially appears.  Consider seriously what it would mean if you didn’t take the offer and what it would really cost if you did, then think about #6.
6. Sweeten the pot.  You may have already decided that you’re getting rid of the appliances, so consider throwing them in.  If you have a little wiggle room, consider helping the buyer with closing costs or moving expenses to help defray some of those costs for them.

In today’s housing market, you have to be one step ahead of the competition.  By following one (or several) of these suggestions, you can help ensure the best opportunity possible to sell your home.

Personal landing pages are becoming all the rage for real estate professionals.  Services like DooID.com allow you to launch your personal landing page in just a few minutes.  Once it’s active, modern-day technology allows your personal landing page to be virtually maintenance-free, pulling content from sources that you regularly use.

 As you build your personal landing page, think about the kind of personal connection you want to make with your clients.  Tell them about yourself:  your hobbies, your family, your favorite restaurant, your favorite movie.  Doing so allows your clients a peek behind the proverbial curtain – a look at the person behind the sign – so they see you as someone they can relate to.

 These days, we’re connected to the world through multiple channels; your personal landing page can be a virtual contact list for you, linking your clients to you via Facebook, Linked In, Twitter, and email, as well as your office and cell phone numbers and office address.  Each different point of contact allows you more opportunities to grow your list of clientele.

 By setting up a personal domain (e.g. yourname.com), you appear more professional.  It’s easier to build and maintain your “official” brand, linking to the companies and services that you personally trust.  Your listings have a place here as well, staying updated through the services you setup at the start.

 With a little thought and planning, your Personal Landing Page can become a powerful tool.  By giving your past and present clients a way to stay in touch, you’re also growing your business and building a reputation as someone they like and trust!

There are more that 750 million people on Facebook.  However, not every user has a full understanding of some of Facebook’s everyday terminology.  Not understanding these key terms will leave users confused and nervous about navigating the Facebook platform.  Use our glossary to help find your way as you explore the world of Facebook:

News Feed – Also known as the “Home page”.  Facebook defines the News Feed as “the center column of your home page – a constantly updated list of stories from people and Pages that you follow on Facebook”.   The News Feed includes friend’s and page’s photos, text updates, outside links to favorite articles, videos, etc.  The only person who can see your News Feed is you!

Profile – The Profile allows the user to enter information about themselves, such as their birthday, where they are from, favorite movies, books, place of employment, etc.  This information is all voluntary, but Facebook does require your full name and birthday.  Your profile represents who you are, and, as stated in the Terms of Service, cannot be used for commercial gain.

Page – Pages, also referred to as “Fan Pages”, allow brands, celebrities, organizations and other entities to have a presence on Facebook.  Pages are visible and searchable to the public.  Any Facebook user can connect with a Page by clicking the “Like” button.  If you “Like” a Page, you will then receive updates from the Page in your News Feed (or Home Page). 

Wall – Every Profile and Page has a Wall.  The Wall is a space where you or a Page share content with your friends or Fans.  Friends and Page Fans also have the ability to post and share content on your Wall, unless you change this setting in your Privacy Settings.  Posting on the Wall is one of the most popular forms of communication in Facebook.  

Like – You can “Like” just about anything if it’s on Facebook!  Clicking “Like” can connect you to a Page’s content.  You can also “Like” specific pieces of content from your friends and Pages.  Doing this allows you to stay connected to that piece of content’s particular conversation. 

Status –“What’s on your mind?”  Facebook asks this in the “Update Status” box on the News Feed and Profile of every user when logged in to the system.  By updating your current status, you can start a conversation with your Friends about what you’re doing.  By sharing a status, it will appear on your Profile and in the News Feed of your Friends.  The, your friends can “Like” or leave a comment on your status, which can turn into a fun conversation.

According to the California Department of Consumer Affairs, the number one disagreement between landlords and tenants comes after the tenant vacates the property.  The most common subject of that disagreement?  Refund of the security deposit.

California law allows landlords to use a tenant’s security deposit for one of four things:

1. Unpaid rent.
2. Cleaning – but only to return the unit to the condition the property was in upon move-in.
3. Repair of damages caused by the tenant or the tenant’s guests beyond normal wear and tear.
4. And – only if the lease or rental agreement specifically stipulates – for restoration or replacement of furniture, furnishings, or other items (e.g. keys) beyond normal wear and tear.

Under California law, within 21 calendar days of the tenant’s vacancy, the landlord must send a full refund of the security deposit or provide an itemized statement of deductions from the security deposit with a refund for the remainder.  Furthermore, the landlord must also provide copies of receipts (or good-faith estimates) for any repairs or cleaning necessary to bring the rental property back to the “original” move-in condition.  All supporting documentation must describe the work, time spent, and hourly rate (the hourly rate must be reasonable).  If estimates were provided initially, a tally of the final costs and any amount remaining should be sent to the tenant within 14 calendar days.

If a former tenant disputes the charges, the most prudent course of action is to review objectively and respond quickly.  A steady flow of communication goes a long way.  Know what the law allows and doesn’t allow, and you’ll avoid unnecessary disagreements.

For more information about this and other landlord/tenant subjects, visit the California Department of Consumer Affairs website at http://www.dca.ca.gov.

Many owners have made a commitment to reducing their carbon footprint, whether it’s through local source or conservation.  But Bank of America’s intent to build a 52-story “eco-building” in Times Square strongly suggests that green building is now seen by big business as more than just image-friendly – it’s fiscally friendly, too.

The U.S. Green Building Council estimates that 10% of all new commercial construction received their Leadership in Energy and Environmental Design (LEED) certification in 2010.  A recent study of commercial property sales identified a commitment to green “redevelopment” by developers like Hines and the Durst Organization, as well as a contingent of real estate investment trusts (REITs).  These groups have purchased partially-vacant or distressed commercial properties and renovated them to be green.  The primary intent is to help the environment through lower emissions, and reduced usage of resources, but there is a real hard-money difference for such a venture.  On average, the building owner can increase rents by about 3%; likewise, an increase of about 8% in a post-renovation appraisal isn’t too shabby, either!

At their eco-conscious corporate headquarters in Cambridge, MA., biotech firm Genzyme sees a 42% reduction in energy costs and a 34% reduction in water consumption over a “typical” commercial space.  With green initiatives on the table at companies like IBM, Chase, and Johnson Controls, the trend is catching on in business.

As green goes mainstream, consumers will see the availability of more environmentally-friendly options.  Likewise, developers will enjoy an improvement in their image – and their bottom line.

Short sales have become the solution of choice for homeowners who can no longer afford to stay in their house.  It allows them to sell their property for less than the principal balance while avoiding a foreclosure.  Short sales have also helped buyers into homes that just a couple years ago might have been out of reach.  Despite a rocky start, both lenders and the federal government have pulled out all the stops to ensure short sales are successful – and timely – for both buyers and sellers.

By knowing the answers to these questions ahead of time, you can help simplify the process:

1. What’s the foreclosure timeline?  The earlier you start the process and paperwork, the better.  That ensures the buyer will have financing in place and can close in time.
2. Who owns the lien(s)?  With as many times as some paper changed hands, this may be easier said than done.  The best place to start is with the loan servicer(s) – the company who the checks are written out to.  Make sure you account for lines of credit and seconds or thirds!
3. How much is the property worth? Check the bank’s numbers against recent comps, and don’t be afraid to ask for a review if there’s a significant gap between the two.
4. Do you have all the necessary paperwork?  Typically, you’ll need a Letter of Authorization (allowing the agent to speak on the seller’s behalf), Listing Agreement, Purchase Contract, Short Sale Agreement, HUD Estimate, Lender Approval(s), as well as pay stubs, tax returns, and bank statements.  If either party qualifies for lender and/or federal assistance, additional applications and documentation may be necessary.
5. Do you plan to move before closing?  Many lenders require the borrower to occupy the home until the short sale is complete.

Successful short sales can lead sellers and buyers down fulfilling new paths, both financial and psychological.  By setting out a map early in the process, they can minimize or avoid any dead ends or detours along the way.

One tool that doesn’t seem to be leaving the technology world anytime soon is Foursquare. Foursquare is a geo-local, mobile application that allows you to “check-in” at locations around your community. Once you check-in, your connections can see where you are, what places you frequent the most, and if you hold any mayorships (an award given out to the person who visit the location the most). Not only can this tool be fun, but it can also aid in building your business.

Become a Community Expert: It’s a known fact that consumers like working with professionals who know their area, and Foursquare allows you to do just that. If you frequent the local Starbucks each week, take a few moments to check-in. Chances are you’ll increase your chances of gaining the mayorship. Wouldn’t it be great to have a client see that you are the “mayor” of 20 different places within the area they are hoping to buy or sell?

Connect With Your Sphere: Like Facebook and Twitter, Foursquare allows you to connect with friends, business acquaintances, and past/current clients. People enjoy seeing what their friends and family members are doing via this application. In addition, Foursquare also allows you to take photos and attach them to the location you are at. People can then comment on your location and engage with your check-in. This is just one more way to connect with those who matter most in your business.

Make It Known Where You Work: If your office isn’t already a location on Foursquare, create one. Once you’ve created the location, plan on checking in when you’re at the office. In addition, you can leave tips for the location. Perhaps, every Monday you mention a new and exciting listing. Users get accustomed to tips and will come back to see more each week.

California SB 183, requiring all single family California homes and rental units to be equipped with carbon monoxide detectors, went into effect on July 1, 2011.  Carbon monoxide detectors must be installed in all homes by January 1, 2013.  The presence/absence of carbon monoxide detectors must also be disclosed in the transfer of residential real estate.

More details of SB 183:

• Requires the seller of the home to disclose whether or not the property has one or more carbon monoxide detectors
• Requires a seller to certify the property is in compliance with laws requiring smoke detectors and the bracing of water heaters
• Failure to install a carbon monoxide device is an infraction
• An owner must be given a 30-day notice to correct the violation and can face a fine of $200 for each offense if not corrected within that time period.
• Tenant must notify landlord if the tenant becomes aware that the device is inoperable or deficient
• Landlord is not in violation if he/she has not received notification from the tenant
• Landlord may enter dwelling unit for the purpose of installing, repairing, testing, and maintaining carbon monoxide devices

To download the entire bill, visit leginfo.ca.gov

Refinancing a home can seem like the perfect solution for homeowners when interest rates are low. Often times it is a great decision, but they are also several things to be aware of prior to making the decision. The following items are extremely important to keep in mind if you are in the process of refinancing or are considering it.

Lack of Research
Research is key when refinancing. Homeowners should also compare annual percentage rates, in addition to the quoted interest rate. Simply looking at the quoted interest rate can result in an inaccurate interpretation of the loan cost. Also, ensure you are comparing equal metrics when looking at various numbers and data.

Selecting the Wrong Type of Loan
Keeping in mind long-term life circumstances is an important component of refinancing. If job loss or change in income may occur within a few years, lowering the monthly payment should be a key concern. Ensuring the selection of the right loan for unique circumstances is critical, so weighing out pros and cons of different loan types is extremely important.

Finding the Best Deal
In addition to basic research, homeowners should also think outside of one lender. It’s recommended that borrowers look into at least three different lenders. Often staying with the same lender is ideal, as less paperwork may be required, but, at the same time, borrowers should complete their due diligence to ensure it’s the best route to take.

Refinancing Isn’t Always the Best Decision For Everyone
Homeowners should keep in mind that refinancing isn’t right for everyone. If a homeowner doesn’t intend to stay in the home for several years, it can actually be a big mistake. Homeowners should speak with a professional to determine if it is actually the best decision for their unique situation.

Although there have been some significant shifts in real estate over the past several years, 72% of American renters still state that owning a home is among their top priorities. According to The National Association of Realtors (NAR) 2011 National House Pulse Survey, renters still believe that renting is only a temporary solution, with home ownership being the ultimate end goal.

One of the biggest challenges currently preventing these people from purchasing homes resides in obtaining the credit needed to do buy. This may continue to be a problem, and grow worse, if the proposed Qualified Residential Mortgage law goes into effect. The law would require a 20% down on all home purchases.  According to the NAR study, 51% of middle class homeowners stated that if they were forced to put 20% down on their home purchase, they wouldn’t have been able to buy.

Of course, the housing marketing and the economic climate are tightly aligned. The current national unemployment rate is hovering around 9%, with an even larger number of people who are actually currently unemployed. This statistic, in addition to the proposed law, could make the dream of homeownership a bit more challenging. On the reverse side, the purchase of homes would ultimately increase consumer spending and assist with jobs.

Ultimately, the study shows that homeownership still matters a great deal to individuals who do not currently own one. The feeling of safety and stability are things that can be hard to find in a renting environment. In addition, owning a home provides financial security over the long-run.

In the past five years, an entirely new segment of marketing technologies have evolved in the real estate world. Some have faded as trends, while others seem to be here for the long run. Mobile marketing is definitely one that looks like it will be around for years to come.

Of course, with these new technologies come challenges. Finding the time to not only learn about them, but also to learn how to use them effectively, can be daunting at times. To assist, we’ve complied some great statistics that emphasize the reach of mobile marketing. As of 2010, nearly 95% of all Americans were using a mobile phone, with nearly half of them being smartphone users. As if these number aren’t large enough already, they are estimated to grow by 80 million over the next year. Although the numbers may vary from area to area, there is no disputing the immense opportunities in mobile marketing.

If you are interested in gearing up your mobile marketing strategy, there are a few things you may want to start thinking about.

Optimized Website: There is nothing worse than going to a website from your phone and finding out it doesn’t work or is limited in its functionality. One big fail is the use of Flash, as iPhone devices cannot read this program. There are various vendors and WordPress plug-ins that can help with the optimization of websites, with prices ranging from free to a several thousand dollars.

QR Codes: Quick Response Codes have become quite popular over the last year, and real estate professionals are now looking at ways to integrate them into their mobile marketing strategies. QR codes can be placed on business cards, for sale signs and printed advertising. When the end user scans the code, they are taken to a predefined location on the web. This gives the person who scanned the code instant access to the website via their phone. Of course, if you are linking to your website, ensure it is mobile optimized for best results.

One commonly overlooked component involved with buying and owning a home is a home warranty plan, and although it may seem like a minuscule detail in the grand scheme of things, the warranty ultimately can save a homeowner a great deal of frustration and cost. Home warranty plans vary dramatically based on coverage and the provider, but typically they have a handful of items in common.

The cost of a home warranty plan is hard to pinpoint, as it depends on the type and extent of coverage the homeowner in seeking. Plans may be as low as $200 and as high as $800, and although the details of a plan are unique to the agreement, they usually work in a similar fashion.

1. If there is a problem with an appliance, the homeowner contacts the home warranty company.
2. The home warranty company contracts one of the providers it has an established relationship with.
3. The provider contacts the homeowner to arrange a time to come out and inspect the appliance.
4. The provider fixes the appliance or replaces the appliance if it cannot be fixed.
5. The homeowner may have to pay a small fee for the service, depending on the policy.

In addition, there are certain restrictions that exist in polices. Again, the details of these restrictions may vary based on the provider and coverage. In general, there are specific items can prohibit an item from being covered, including damage due to improper maintenance, incorrect installation or wear that isn’t considered natural.

A decade ago, there wasn’t much talk about online marketing strategies. Real estate professionals were primarily focused on print marketing, farming strategies and referral business. Today, we know the landscape looks quite different and that the web has literally changed everything.

Having an online presence is now a pivotal part of a real estate agent’s overall marketing strategy, and there is quite a bit of data that strongly supports this premise. Consumers today are used to getting information quickly and in an efficient manner. Within the National Association of Realtor’s 2009 Homebuyers and Sellers Study, the following statistics were discovered:

• 90% of homebuyers utilized the Internet as a source for information when thinking about buying or selling a home

• 77% of Internet buyers took the action to drive by or view a home after they initially saw it online

• 36% of homebuyers found the home they ultimately purchased on the Internet

These statistics only reiterate how important an online presence is in today’s world, but the challenge can reside in figuring HOW to develop a strategy. To assist you, we’ve assembled a list of resources that may assist you as you look to create your online marketing strategy.

Tips and Advice on Blogging:

Writing great content for your website and blog

Online videos for your real estate website and blog

How to turn your blog into a prospect producing machine

General Online Marketing Advice:

Build a better website toolkit

Property marketing toolkit

One landing page does not fit all

Articles on Marketing Your Website:

Website visibility: 7 ways to get your website noticed

Online marketing: Technology without technique doesn’t work

What is the best website marketing strategy?

If you use your personal vehicle for business purposes, we’ve got some great news to share! The Internal Revenue Service recently announced that as of July 1 you will have the ability to deduct more for each mile driven for business purposes – a total of $0.55 per mile.

According to the IRS, their rationale for change was a result in rising tax prices and the toll the prices are taking on Americans who drive frequently for business reasons. Traditionally, the IRS reviews mileage deductions towards the end of the year and implements the changes in the following year. Given the current economic conditions, they decided to push the adjustment date forward. Their hope is that this increase in deductions will assist in balancing the increase in gas prices.

Although mileage write-offs are an excellent way to reduce taxable income, one common challenge often is figuring out how to keep track of mileage throughout the year. To help, we’ve put together a brief list of applications that might assist you in staying more organized.

MilesPerGallon: This application is only available for the iPhone. It allows users to track mileage for more than one vehicle and generate reports – two functions that can be valuable once it comes time to file your taxes.

Drivers Log: This application is only available for Android phones. It’s simple interface allows you to track miles and also export them to a Google spreadsheet for reference.

Trip Cubby: This iPhone application allows you to track mileage in a traditional way, but also saves frequent trips. This function allows you to replicate a trip without having to enter information time after time – a huge time saver.

Once you’ve navigated through finding a home and made it through the final closing paperwork, the last thing you want to worry about is a broken dishwasher or faulty plumbing. As such, understanding the intricacies of home warranty programs is an important step of the home buying experience.

From costs to what is covered, home warranty programs can vary extensively. The variables that shape cost and coverage are often determined by location, detail of coverage and the current age of the home. When speaking to a home warranty company, you will want to ask questions regarding different options and evaluate what type of coverage you will need based on your home’s condition and your priorities.

In general, regardless of the plan you select, policies usually work in a similar way from a process standpoint. If you encounter a problem, such as a broken dishwasher, you call the warranty company. The warranty company then reaches out to its provider, sets up an appointment for the provider to come to your home, and ultimately the provider fixes or repairs the problem. Depending on your policy, the fee you pay will vary.

As mentioned, all policies differ in what they cover, but for the most part, here are some of the items typically covered and not covered in a policy:

Typically Covered:

• Air conditioning/heater
• Dishwashers
• Garbage disposal
• Indoor plumbing
• Ceiling fans
• Stove/oven
• Telephone wiring

Typically Not Covered:

• Outdoor items, such as sprinklers or faucets
• Spa/pools, unless specifically requested
• Permit fees

It is very important to remember that improper care of an item or improper installation can sometimes cause typically covered items to not be covered. In addition, keep in mind that all policies fluctuate and may cover items that another provider does not.

There has been no shortage of foreclosures on the market over the past several years, so it’s no surprise that unscrupulous individuals are finding ways to intervene in these transactions and ultimately take advantage of homeowners. As such, the Federal Government recently released a list of tips for homeowners to help them avoid being taken advantage of by foreclosure scam artists.

Tip #1 – Work only with a HUD approved counselor

If a homeowner is being foreclosed upon, the federal government recommends working only with their recommended counselors.  These counselors have been assessed and approved to handle foreclosures and have been deemed credible.

Tip #2 – Don’t overpay for services

Most HUD sponsored foreclosure counselors offer free or very low cost services.  Homeowners should never be lured into spending excessive amounts of money on foreclosure counseling.  Individuals requesting such high fees can often be a red flag for scams.

Tip #3 – Be cautious of guarantees

A reputable foreclosure counselor will not promise the homeowner  that the foreclosure will be stopped for them.  Specific circumstances ultimately determine the fate of a foreclosure, and, therefore, anyone who makes guarantees should not be trusted.

Tip #4 – Know what is being signed

Homeowners should never allow a counselor to fill out or sign paperwork on their behalf, and unfortunately this happens more frequently than many people realize.  Clients get pressured and overwhelmed and suddenly they have signed their home away.

Tip #5 – Unbelievable deal?  It probably is.

As the old adage states, if it’s too good to be true, it probably is.  If a homebuyer encounters an amazing solution from a supposed foreclosure counselor, and it sounds like too great of a deal to be true, it probably is. Be wary of “perfect solutions,” as they generally do not exist.

Homeowners insurance is an important component of the home buying process. What is covered? Are their items not included that you need? Are there items included that you do not need?

One common item that comes up time and time again is mold coverage. Although on most occasions mold is completely harmless, there are certain situations in which it can cause a homeowner’s insurance claim to be denied.

There are several things that determine if mold damage is covered by homeowner’s insurance. Most often the decision is made based on where the moisture that caused the mold came from initially.

Most policies exclude damage caused by fungi and bacteria, but typically cover damage caused by “emergency situations”, such as a pipe bursting. Other situations that also cause claims to be rejected are negligence to the home, including ongoing water leaks and exposure to humidity.

The most definitive way to avoid a denied claim is to keep mold to a minimum, as preventing mold is critical when it comes to protecting your home’s value. Here are a few ways in which you can work to protect your home:

• Use household cleaners that have mold killing properties
• If you have carpet in the bathroom or kitchen, ensure that it is never wet for long periods of time
• If you have a pool and carpeting indoors, ensure people are not tracking water throughout the house on a continuous basis
• Clean outdoor gutters to ensure that they aren’t overflowing
• Use dehumidifiers and air conditioners to lower humidity indoors

These are just a few tips that can assist in protecting your home. In addition, your real estate agent will also be an immense asset in helping you though this process as well.

If you are in the process of purchasing or selling your first home, the escrow process is something that might come across a foreign territory to you. It is definitely understandable, as the terminology and steps involved are often extremely detailed oriented and must be completed in a strategic fashion.

Knowing that you have an experienced escrow officer and real estate professional on your team will obviously be an extremely valuable asset for you during this process, so you’ll want to ensure that you have a reliable team on your side as you move throughout the transaction.

The Beginning Stage: Opening Escrow

The beginning stage of escrow deals with basic information that must be collected prior to delving into the processing of the escrow. Information collected during this phase entails conditions that pertain to the property, general details about all of the parties involved in the transaction, and the organization of assets. Once this information is collected, instructions are devised and are used as the roadmap in moving forward. The homebuyer, home seller, escrow offices and Realtors are involved in this stage and may be called upon to provide information.

The Middle Stage:  Processing Escrow

Additional information gathering normally takes place during this stage as well, although much of the information is more specifically related to specific parts of the escrow process, including obtaining signatures on important documents, determining funds needed to move forward and obtaining a preliminary Title Report. All of these tasks must be completed in a specific order and by a specific date. This is where your escrow officer and Realtors expertise will come into play.

The Final Stage: Closing Escrow

Closing escrow is may seem like the finish line, but there are various items that must be completed in order for the close to be successful. Paying off loans, the preparation of documents and ensuring that all of the instructions have been fulfilled are just several of the actions that take place during this time. Once these items are complete the property is transferred and the escrow closes.

If you are interested in learning more about the escrow process or are seeking an experience and expertise from an escrow officer, please feel free to contact us!

Buyers and sellers often find residential real estate statistics confusing. In this blog we will shed some light on these numbers. We’ll take a look at the most widely used statistics and we’ll review each one to better understand them.

What are the some of the more important statistics?

“Existing-Home Sales” is one of the commonly used statistics. This number represents completed resale transactions of single-family, townhomes, and condominiums. New homes are not included. This statistic is prepared and reported monthly by the National Association of REALTORS (NAR) and is considered to be a good indication of trends in residential real estate. NAR’s “Housing Affordability Index” is also an important statistic. NAR develops this index by expressing the typical monthly mortgage principal and interest payment as a fraction of gross household income. A low index indicates very good housing affordability. The “Median Existing Home Price” (reported by NAR) is reported both nationally and by region, and represents the sale price at which half of all homes sold at a higher price and half of all homes sold at a lower price. NAR also reports its “Total Housing Inventory” which is an accounting of existing homes that are available for sale. This number is then divided by the current sales pace (homes being sold per month) to establish the current number of months of supply of homes for sale.

The U.S. Census Bureau and the Department of Housing and Urban Development (HUD) jointly release their monthly estimate of “Sales of New Single-Family Houses” and the “Median Sales Price of New Homes Sold” and “New Houses for Sale.” All of these numbers arseasonally adjusted, and the “New Houses for Sale” statistic is used to develop an estimate of the number of months of supply of new houses in inventory on the market and available for sale.

San Diego-based DataQuick monitors real estate activity nationwide and each month reports “New and Resale Houses and Condos Sold” nationally, statewide, and by metropolitan area. Another important statistic prepared by DataQuick is its monthly-reported “Median Price Paid for a Home.” DataQuick also provides statistics on distressed property sales (foreclosures, short sales) and “Typical Mortgage Payments” by home buyers.

Zillow Inc prepares and reports quarterly its “Home Value Index.” This number is widely used to demonstrate possible trends in improving or deteriorating home prices.

“Inventories of Unsold Homes” is shown in the Wall Street Journal’s quarterly survey of housing market conditions in 28 major metropolitan areas. Inventories are expressed as the number of months of supply of homes listed for sale in each market at the current sales pace.

What should I look for when reading these statistics?

“Existing Home Sales” is a good number to follow to get a good broad sense of the direction and strength of the market. If the month-to-month number is generally rising, this would indicate an improving sales pattern, and if the number is falling it would indicate a deteriorating sales pattern. The same is true for DataQuick’s “New and Resale Houses and Condos Sold.” The rate at which it rises or falls will indicate the relative strength or weakness in the market.

Also watch the “Total Housing Inventory” and the “Inventories of Unsold Homes.” A large inventory would typically indicate a weak real estate market and a small inventory would indicate a strong market. A balanced market typically has a six-month supply. And, for an understanding of price appreciation or depreciation, watch the “Median Existing Home Price” and the “Median Price Paid for a Home” and the “Home Value Index.”

With all of these numbers, always be attentive to local statistics, not to national or even state-wide figures. This is because real estate markets can vary substantially across the nation, across your state, and even across metropolitan areas.

On March 18^th HUD issued important information pertaining to how mortgage loan originators comply with the Real Estate Settlement Procedures Act (RESPA) with regard to the Federal Reserve Board’s Loan Originator Compensation rule, effective April 1^st. This information clarifies RESPA requirements related to proper disclosure on the GFE and HUD-w settlement statement.

The guidance addresses:

(1) mortgage broker transactions where the broker is compensated indirectly from the lender by means other than an amount that is computed based on the interest rate, such as by a flat fee or an amount that is based on any other computation;
(2) no cost transactions where the credit for the interest rate chosen covers third party settlement charges;
(3) using a credit/charge calculation prior to completing Block 2 on the GFE; and
(4) payments by lenders to borrowers to correct tolerance violations in transactions involving a mortgage broker.

Click Here to view the complete guidance.

It’s interesting to think that just over a year ago no one had an iPad. After its release in the US in April 2010, Apple has sold more than 15 million iPads (including the just released iPad 2). With over 65,000 apps in Apple’s App Store, the iPad makes it easy and fun to work while you’re on the road. Have you considered purchasing an iPad for your business? The days of lugging around a heavy laptop are over!

There are thousands of apps to download in Apple’s App Store, but where do you begin? We took a look at some of our favorite apps for business and chose our Top 5:

Dropbox: FREE
With no complicated interface to learn, you can easily transfer files from your computer right to your iPad. Dropbox is the easiest way to store and share files online, without having to email anything. No matter where you are, files saved on one computer can be viewed on multiple devices, such as other computers (Macs or PCs), phones, and your iPad. When a file is updated on one computer, Dropbox will automatically save the changes on all other devices. It’s a must-have app for any real estate agent.

Keynote: $9.99
Apple says Keynote is “the most powerful presentation app ever designed for a mobile device”, and we’d have to agree. If you spend a lot of your time sitting down with clients, Keynote is the simplest way to run a powerful presentation. Keynote allows you to view and easily edit your presentation, share by exporting to Microsoft PP or PDF format, arrange objects on your slides by simply dragging them on the canvas, create sophistic animations, and more.

GoodReader for iPad: $4.99
The super-robust PDF reader and #1 selling non-Apple app for the iPad last year in the US. Read virtually anything, anywhere. With GoodReader for iPad, you have the ability to mark-up PDFs and sync your files with remote servers. In addition to handling PDF & TXT files, GoodReader supports MS Office, iWork, HTM and Safari web archives, hi-res images, audio and video.

HootSuite: FREE
HootSuite is the perfect social media tool combining Twitter, Facebook, and Foursquare into one elegant and powerful interface. Spread messages, monitor conversations, and track results right from your iPad. With HootSuite, you have the ability to send and schedule Facebook and Twitter posts, manage campaigns, schedule updates, and see click-through stats for all of your social networks.

Noterize: $3.99
Noterize allows you to view and annotate any available PDF or PowerPoint document. The built-in web browser enables direct importing of files from the web, while integration with Box.net and Dropbox makes transferring documents between your computer and iPad as simple as can be. The app currently supports distribution via Facebook, Twitter, Google Docs, Box.net, Dropbox, and email. You can even choose which specific pages of a document you would like to share, and the order of those pages in the document.

In a commercial property foreclosure, the lender will usually ask the judge to assign a Receiver to take “control” of the property. Receivers are normally nominated by the lender; however, they are considered agents or officers of the court and are a neutral third party. The Receiver (typically individuals, companies, or attorneys) will “protect, preserve and secure rents” and aid in restoring order to the business after a loan default on the foreclosed property.

Receivers have authority to:
Hire tradesmen to maintain the building
Make decisions about the operation of the property and the business
Notify tenants of the receivership
Execute leases
Collect Rents
Pay Taxes
Pay Utilities
Maintain insurance
Hire a real estate broker to list and sell the property

To learn more about foreclosure and receivership laws, visit: www.receivers.org

Several months ago, the California Department of Real Estate issued a publication regarding Short Sale Fraud.  Due to the increase in Short Sales in the market today, instances of fraud are continuing to grow.  Typically, fraud occurs when there is an intentional failure to disclose information to the short sale lender.  This will result in lenders approving the sale based on false or purposefully excluded information.

Click here to download and learn more about Short Sale practices and the growing fraud in this area.

Effective April 18^th 2011, the FHA will raise the annual mortgage insurance premiums by “25 basis points” (or one quarter of a percent of the total value of the loan) for borrowers on primary, 1-4 unit properties. This change will not affect Title 1 loans, the HECM loan, the HOPE loan, and existing FHA mortgages.

Upfront premiums will not be affected, and FHA will continue charging an upfront premium equal to the following percentages of the mortgage:

• Purchase Money Mortgages & Full-Credit Qualifying Refinances – 1%
• Streamline Refinances – 1%
• Home Equity Conversion Mortgages – 2%

With the new changes effective, on a $250,000 sales price, the buyer will end up paying about $50 more in their total monthly mortgage payment. And, when looking at qualifying buyers, this could lower their purchasing power by around $9,000. Meaning, they will only be able to afford a $241,000 home, instead of a $250,000 home.

FHA borrowers will be paying about twice as much for mortgage insurance on a 30-year loan than if they were paying for Private Mortgage Insurance on a non-FHA mortgage. By putting at least 5% down on a 30-year mortgage, borrowers will pay an annual insurance premium of 1.10% of the value of the loan. Any down payments smaller than 5% will end up paying about 1.15%.

The chart below illustrates how much more a mortgage payment will increase based on the new changes:

*Information provided by mortgageloan.com

Selling property can be extremely stressful for all parties involved. At Coachella Valley Escrow, we strive to provide helpful information and resources to buyers, sellers, and agents. One such helpful resource we would like to discuss is Real Estate Concierge Services. The Concierge, as a third party, takes on many forms for the buyer and seller. This blog will focus on Property Management for the seller.

Property Management ensures that the house looks as good as it possibly can, and that the property has been well-maintained while it’s on the market. It is important, especially during an Open House, that the home and property are in good condition and don’t appear to be neglected. A well maintained house can be the difference of a few hundred thousand dollars or more on the offer from a buyer.

We recently spoke with Laura Doughty of Monarch Estate Management about Concierge Services and how it can help REALTORs when listing a property. A resource once forgotten, Monarch Estate Management delivers services that enhance properties and enhance relationships with clients. Laura answered our questions below:

What do Concierge Services mean to the REALTOR?
You want to work with someone who knows the property well and who you can trust to deliver services to ensure the property looks as good as it possibly can. Clients will appreciate these services. With just one call, one person can gather the vendors and arrange everything on your behalf. Concierge Services coordinate remodel projects, schedule your vendors and facilitate all parties involved. You have a long-standing friend in concierge services for the new buyer. Once the buyer is in the house, we continue that relationship and keep the lines of communication open with the REALTOR. There is an investment from each party in the house and we are there to make sure the investment grows and gets better for everyone.

How does Concierge Services affect Escrow?
Actually, given instructions, this type of service can be paid through escrow. Providing services through escrow gives a smooth, consistent transaction for all parties. From being a part-time personal assistant for the buyer to coordinating inspections and delivering valuable paperwork in a timely manner, it can easily be included in the listing offering as a service. It most definitely sets a listing apart when being able to promote this level of lifestyle concierge assistance.

What if a property is in escrow for a long time, been on the market a while, or a sitting REO?
It’s all about consistency. You have the assurance of someone overseeing the house and making sure everything stays in order. If anything comes up last minute or unexpectedly, we have the tools to address any situation with our staff and long-time relationships with our vendors.

Concierge Services go hand in hand with leases as well. Providing this extra touch would make any agent memorable. Concierge Services also handle client needs from basics like grocery shopping, housekeeping and dry cleaning to last minute concert tickets, party planning, or fixing the BBQ grill! Every property has things that can go wrong, and these services have the resources to fix any problems that may arise.

Malibu Management is a Property Management Company in Malibu that has been in business since 1998. If you have any questions about their services please feel free to contact them at 310-317-6794 or at info@monarchestatesandhomes.com.

Concierge Services Serving the Coachella Valley:
MCK Executive Services
Wrosch Real Estate

One of the common documents a borrower may encounter in escrow is the “Notice of Right to Cancel.” This document is also referred to as the “rescission document” or the “3-day Notice of Cancellation.” This notice will be found in the loan document package, and it states that the borrower can cancel or rescind their loan transaction within three business days after signing the loan documents. Confusion arises for borrowers as to when the right to cancel applies, and if so, exactly what day the borrower can rescind their approval of the loan transaction.

When does the right to cancel apply?
The right to cancel applies to refinances or “home equity lines of credit” extended on a borrower’s “primary residence.”  The right to cancel does not apply to borrowers who are purchasing a home, borrowers who are refinancing their second home, or on investment or rental properties.

Understanding the important dates on the document.
There are two important dates on the document. The first is the date of signing. The second is the rescission date, or final date to cancel. When the lender prepares final loan documents for an anticipated signing, he may indicate these dates by printing them in advance for the borrower on the Notice of Right to Cancel. However, many lenders prefer to leave the dates blank on the document because the exact date of signing may not be known. In this case, the lender may print instructions on the document for determining the correct dates, or the lender may insert an instruction sheet into the loan package with the Notice of Right to Cancel. If the dates are already printed on the document in advance, but are incorrect, the instructions will provide information on how to properly correct, or how to properly interpret the dates to determine the rescission date.

Determining the rescission date.
The borrower has the right to cancel until midnight on the third day after signing. To determine the correct rescission date after signing, the borrower or his qualified escrow and loan document-signing agent (Notary Public) will count three days beginning with the first day following the signing date (the transaction date is not counted). Sundays and legal federal holidays are not counted, and are therefore skipped. Saturdays are counted because banks conduct lending business on this day. To help with the determination of the correct rescission date, free “rescission calendars” are available and can be found via the Internet.

Each petal on the shamrock brings a wish your way -
For good health, good luck, and much happiness
Today and every day. ~ Author Unknown

We are lucky to have such a loyal following on the Coachella Valley Escrow blog. We thank you for your continued readership and the feedback you provide. Happy St. Patrick’s Day from all of us at CV Escrow!

Several new laws affecting the real estate industry became effective this year. In a previous post, we discussed SB 1149: Foreclosure Protection for Tenants, where a landlord is prohibited from harming a tenant’s credit score by revealing unlawful detainer records, unless the landlord prevails in court, and AB 1809: Energy Efficiency Audit in Home Inspection Report, where a home inspection and inspection report may include a Home Energy Rating System (HERS) home energy efficiency audit if requested by a client.

In this series of posts, we will highlight and give an overview of the other laws that also went into affect in January.

Adverse Possession Claim Requires Timely Payments
For a claim of adverse possession, existing law requires proof that taxes have been paid on the property for a five-year period. Effective January 1, 2011, Assembly Bill 1684 will further require that all state, county, or municipal taxes have been certifiably paid in a timely manner for the five-year period the property has been occupied and claimed. Read More

MLO Requirements
Effective January 1, 2011, Senate Bill 1137 requires those who act as a mortgage loan originator (MLO) to hold a MLO license endorsement issued by the Department of Real Estate (DRE) in order to be employed or compensated by a real estate broker. Those who act or advertise themselves as an MLO without a DRE MLO endorsement is guilty of a crime punishable by a $20,000 fine, six months imprisonment, or both. Corporations acting as an MLO without the endorsement by the DRE are punishable by a fine of $60,000. Read More

Several new laws affecting the real estate industry became effective this year. In a previous post, we discussed SB 931: Short Sale Deficiency Protection for Sellers, in which lenders who have agreed to a short sale will not have the ability to obtain a deficiency judgment against the seller after the short sale is completed (applying only to first mortgage loans).

In this series of posts, we will highlight and give an overview of the other laws that also went into effect in January.

Foreclosure Protection for Tenants:
Senate Bill 1149 states that tenants that remain in a property after is has been foreclosed must be provided a notice of their statutory rights for one year, and must be explained in a separate cover sheet or included in a 90-day termination notice. This law also prohibits a landlord from harming a tenant’s credit score by revealing unlawful detainer records, unless the landlord prevails in court. Read More

Energy Efficiency Audit in Home Inspection Report
Effective January 1, 2011, a home inspection and inspection report may include a Home Energy Rating System (HERS) home energy efficiency audit if requested by a client. The inspection may be performed by a home inspector who meets the HERS regulations requirements. REALTORS are encouraged to provide the HERS booklet that explains the statewide HERS program to residential buyers. Read More

CV Escrow is pleased to announce the opening of our new office in Rancho Mirage, California.  Since opening our doors in October 2005, CV Escrow has expanded throughout the Coachella Valley, and remains committed to providing outstanding escrow services as we open our fourth location.

CV Escrow’s David Lehmann will be heading the escrow division in Rancho Mirage.  David brings more than 20 years of experience to the desert community along with an exceptional level of customer service.  His background in a wide variety of escrows has contributed to a wealth of knowledge and understanding that has earned a loyal client list including banks, Realtors, sales agents, and brokers.  “I love the dynamics of working with buyers and sellers”, David noted, “Our team here at CV Escrow all work together to ensure the best possible customer experience.”   

To learn more about how David can help you, please feel welcome to stop by.  He can be reached at:

CV Escrow, Rancho Mirage Office
71-691 Highway 11
Rancho Mirage, CA 92270
Phone: 760-564-0281
Fax: 760-340-9036
dlehmann@coachellavalleyescrow.com

For more information about CV Escrow, please visit www.coachellavalleyescrow.com, and www.facebook.com/cvescrow.

There are two ways to pay for the Private Mortgage Insurance Premium (MIP): (1) out of pocket, or (2) financed by the lender. When the borrower is presented with the estimated settlement statement at the close of escrow, the MIP premium is always reflected in a line item as a debit (“charge”) to the buyer, regardless if it has been financed by the lender or not. This is to ensure that the proper amounts of the financed funds are allocated correctly toward the purchase price and the MIP premium. See examples below:

1. Estimate Closing Cost with MIP paid out-of pocket:

2. Estimated Closing Costs with MIP financed by lender:

It is important to remember that the MIP premium will always be reflected as a line item “debit” even if it is being financed by the lender. The “Funds required” line item will reflect the actual amount needed from the buyer prior to the close of escrow.

What is the PCOR?

Ordinarily, at the time of transfer when sales of property are recorded via the grant deed with the county recorder, the grantee (buyer) fills out and files a PCOR. It is a two-page questionnaire requesting information on the property, principals involved in the transfer, type of transfer, purchase price, and terms of sale.

The PCOR normally satisfies the change of ownership reporting requirements unless the form is returned incomplete. The PCOR is to be completed, signed and certified by the buyer, as the buyer is signing the document under penalty of perjury. It is then filed in the county recorder’s office for the county where the property is located. The county assessor may also request other information about a deed or other matters related to the transfer after reviewing the PCOR. The PCOR is confidential and is not available for public inspection.

What is the purpose of the PCOR?

Each county assessor’s office reviews all recorded deeds for that county to determine which properties require reappraisal under the law. Once the county assessor has determined that a change of ownership has occurred, Proposition 13 requires the county assessor to reassess the property to its fair market value as of the date of ownership change. The PCOR is important to this process and it must be filed at the time of recording, otherwise an additional $20 recording fee will be assessed.

If the PCOR is not filed at the time of recording, the county assessor will send a Change of Ownership Statement (COS) to the transferee (buyer). If the COS is not filed by the transferee within 45 days of the county assessor’s request, then penalties can ultimately range from $100 to $2,500.

Understanding how to complete the PCOR

The section at the top of the first page of the document is used to identify the buyer (transferee) and seller (transferor), and the property being transferred. The information may be typed in the areas provided. Enter this information as it appears correctly on the grant deed. Be sure to enter the 10-digit Assessor’s Parcel Number (APN), which can be found in the title report provided by the escrow officer, and is also usually also found on the buyer’s purchase contract for the property. Also enter the mailing address to which property tax notices are to be sent.

Part I of the PCOR is used to provide transfer information, and it can be confusing. The assessor uses the information in this section to determine if the transfer may be excluded from reassessment. If a buyer has questions about Part I, the county assessor’s office can be contacted for assistance, or the buyer’s real estate agent or escrow officer may be consulted. Parts II, III, and IV of the document will help the county assessor better understand the nature of the transfer and the purchase price.

Finally, the buyer’s name must be printed at the end of the form, and the buyer must sign it to certify that the information provided is true and correct.

From all of us at Coachella Valley Escrow, we wish you health, comfort, and prosperity this holiday season.

May your home be filled with the joy of family and friends.

Merry Christmas!!