No wonder Pinterest.com has become so popular—especially among women, who account for the vast majority of its more than 8 million fans. The booming social website where users can “pin” their ideas on virtual idea boards and see them all in one place has many people wondering what they ever did without it.

When it comes to building your social media toolkit, Pinterest is one of the top new ways Realtors can connect and build relationships with buyers and sellers—and definitely one of the most fun. Create an account just for your business and show clients the personality, style and know-how they can expect in working with you. Be sure to include a link back to your site in your profile.

1)     Highlight your location. Pinning shots of natural beauty, interesting architecture, hot attractions and local events paints a vibrant picture of your locale. Consider creating a few boards that play up the best of each neighborhood, from schools and gyms to recreation and shopping. Include keywords for each pin, such as “Old Pasadena boutiques.”

2)     Showcase recent sales. Attractive home sales boost confidence. Give buyers and sellers a sneak peek inside favorite spaces of your recent sales. Or, take a practical approach and post the exterior with the sale date and price.

3)     Feature decorating ideas for homes in your niche. Design a few boards based on what your clients mention over and over. Make them specific to your area. “Beach cottages done right,” “Eco-friendly desert landscapes” or “Best pools for family parties” are just a few examples. Inspire with your expertise.

4)     Don’t do it alone. Follow other people, repin their photos, comment and reach out.

5)     Use “advice” boards to drive traffic. Create a board or two based on your best tips, perhaps on staging a home for sale or quick DIY fixes. Pin an image from your blog post to your board so it links back to your blog.

Of course not every market will move in unison, and spring sales will be a great indication of which markets are improving, and which are still declining. Veros Real Estate Solutions forecasts that home prices overall will drop less than 1%, but 40% of 321 metropolitan areas will see prices rise. Phoenix is at the top of that list, and will see a 5% price gain this year. Denver is also seeing rising prices as their supply of homes is dropping as well.

Some homeowners who are in a comfortable situation are still reluctant to put their home on the market, but not all of them. In Central Pennsylvania residents saw a 30% increase in new listings early this year, and the trend has continued into spring. This spring has great potential to be a very good season for the housing market.

Around.Me Real Estate focuses on location. It shows you places you use in your daily life like banks, restaurants, gas stations, and hospitals. The listings aren’t perfect – like most generic Internet searches you might get a gourmet cheese shop, or something else “close but not quite”, when searching for a “grocery store,” but overall it’s very helpful.

Try downloading a Real Estate Dictionary. Some of the lingo might be new to you if this is your first time buying a home. Look for one that will give you concise definitions, and that are inexpensive if not free. Also try downloading a mortgage calculator. Many are available and free and they will help make more educated financial decisions.

The House Hunter app tries to remove some emotion that goes along with home buying. It lets the users rate properties on a scale from 1-10. Then it takes your ratings and calculates which property fits you best.

Houzz is an app that gives you ideas of what to do with an awkward corner or part of a room in a house you’re looking at. It includes more than 200,000 photos and you can search by room, style, and neighborhood.

Trulia offers you a lot of listings to look through. On the iPad version users can compare what properties were listed at and their selling price. On the Android users can use a voice-based search by city and type of home.

Wikihood will help you pick the perfect neighborhood. It also has info that real estate agents aren’t allowed to tell you. It uses Wikipedia and Google Maps to gather info on a specific area.

In many cases this photo is the first image a prospective buyer is going to see. You want it to make that property shine! The average person will give something about three seconds before they decide to either move on or look further. If the property photo really stands out, they are going to look further! Compare this idea to direct marketing material – the picture has to be great or you will throw it away without a second look.

The property profile photo should be of the front of the house. A buyer wants to see what he or she will be coming home to. They don’t want to see a close-up of the flowers in the front yard or a huge oak tree. The seller might be passionate about these pretty features, but the buyer most likely will not be. Once you’ve got their attention, they probably want to see more of the house. If it’s impossible to get interior shots, just skip the “scenery” shots. No one really cares about the closest street sign or cul-de-sac. Keeping these tips in mind will make people look closer at your property listing.

When a buyer purchases a home, they are entering into a contract on real property, or anything that is part of the land or attached to it. But real property can also be something that is considered immovable by law, while personal property, by contrast, is any item that is movable and can be taken from the property. Of course, this can lead to confusion and disputes when the seller considers the chandelier personal property, but the buyer believes it should come along with the house.

Fortunately, there is criteria in place for determining whether something is real or personal property. The law takes into consideration how the item in question (i.e. the chandelier) is attached to the property. Of course, there is still room for interpretation, so it’s important for sellers to list personal property items in the purchase agreement that are to remain with them and give it to the closing agent. Similarly, if there are items they intend to keep with the property, those should be included on a Bill of Sale, which will transfer ownership to the new owners.

Other items that you should consider when selling your home are radiators, appliances, and built-in bookshelves. Because removing these items could cause damage when removed, they are often considered real property. Window treatments also fall within a grey area, so it’s important to clarify whether they will stay with the home or go.

At the IRS website, taxpayers can create a profile by entering their social security number, birthday and some other identifying information. From there, they will be able to see their balance, amount paid back to date, total tax credit received, annual installment amount, and also includes their exact payback amount.

While the first-time homebuyer tax credit was an honorable move by lawmakers to counter the effects of the housing market, unfortunately, it was done away with in 2009. Borrowers, including those who used the tax credit in 2009 and 2010 and sold their home within three years of purchase, are required to repay their benefit.

The IRS’ new tool aims to streamline the process and keep information more organized. For more information, please visit the IRS website.

1. Creating a Community of Followers: Like Facebook, your network gets stronger by connecting with more people. When you follow someone on Twitter, or they follow you back, you’re each indicating an interest in what the other has to say. So, create a community of followers by giving them useful information, like real estate news, advice, and tips. They followed you because you know real estate, so prove to them what you can offer!

2. Retweet Your Followers:  One of the best ways to engage in conversation on Twitter is by retweeting the interesting content that your followers post. Many will send you a Tweet saying thanks, creating the perfect chance to dialogue. And by retweeting, you’re pushing that content to your own followers. If someone retweet something you wrote or posted, be sure to say thanks. You can also direct message them to see what they liked about the article.

3. Market Your Tweets: No, you don’t need to hire an ad agency, but this simple tip will get you more retweets. Keep your tweets short (fewer than the allowed 140 characters) so that your followers can insert their own two cents before your content. And don’t forget to account for your Twitter handle (your username) because it will be factored into the character count. Make your tweets easy to share and that’s exactly what people will do!

4.  Search Your Area:  A great feature of Twitter is the ability to search. And it’s easy to find tweets about your area by typing in your city and a keyword. For example, “near: Los Angeles real estate” will bring up tweets about real estate in the Los Angeles area, the very topic you’re covering giving you an opportunity to retweet and engage potential followers.

5.  From Twitter to Your Site: Twitter is great, but 140 characters means you have to brief. It’s important to get your followers over to your own website so you can tell the whole story and share more specific information with potential clients. You can also use direct messages to obtain their name, phone number and/or email address if they’re willing to give it to you. Just don’t be pushy, and make sure you’re highlighting why you can help them.

Taxes are one of those annual chores that generally bring people to tears, but for homeowners who know what they’re entitled to, tax time should bring smiles and hopefully fistfuls of cash. It’s going to require a little more effort to itemize, but any perceived hassles will be well worth it in the long run.

Here are six tax breaks that every homeowner should know about as we crawl closer to the tax filing deadline:

1. Mortgage Interest Deduction—When you pay your mortgage each month, the majority of that money goes towards interest at the beginning of your loan. A Mortgage Interest Deduction (MID) allows you to deduct this amount from your taxes. Look for Form 1098 from your lender and keep it. It’s your proof of what you’re allowed to deduct to the IRS.

2. Energy Star—Energy Star appliances will give you yet another tax deduction. They’re good for the environment and also for your bank account! Only certain items qualify, like energy-efficient windows, doors and skylights. And you’ll need to install them by the end of the year to get a 10% tax credit of the product costs.

3. Mortgage Insurance Premiums—Do you pay private mortgage insurance (PMI)? You do if your mortgage has a loan-to-value ratio that is higher than 80%. This insurance protects your lender against default, and is also tax deductible if your AGI is less than $100,000 (married couples).

4. Construction Loan Interest—Remodeling your home is expensive, and if you don’t have the money saved, consider getting a construction loan. You may be able to deduct the interest during the first two years of the loan.

5. Points—It’s time to look back at your loan to see if you paid any fees to get your mortgage. If so, you’re entitled to a deduction of the fees during the year you paid them. This only works if your loan was for a primary residence though. There’s even better news for those who have refinanced; you can deduct the points over the life of the loan.

6. Property Taxes—It’s important to know how your property taxes are calculated. If yours are based on the assessed value of your real property, you’re in luck! You will be able to deduct state and local property taxes, but if you pay out of pocket versus through an escrow account, you will need to keep track of your bills. Those who pay with an escrow account will be able to find the amount on Form 1098.

Google Webmaster Tools is a free tool that provides statistics and data about your website, such as keyword rankings, impressions, and CTR’s (click through rates).  By knowing how your website ranks for popular keyword searches, you can start to produce more relevant content to help boost your ranking.  This would result in an increase in traffic to your website.

Ready to get started?  Learn more about Google Webmaster Tools here: https://www.google.com/support/webmasters/bin/answer.py?hl=en&answer=34592

1. Make Cosmetic Changes—Upping your home’s curb appeal is a smart move even if you owe more than your home is worth. Painting shutters, adding new hardware like a mailbox or house numbers, and concentrating on your landscaping will boost your home’s value, and could help you refinance. Plus, if you do decide to you’re your home down the line, curb appeal will lure prospective buyers. Do it yourself to keep costs down.
2. Wayward Expansion—As your family grows, so too does the need for more space. Capitalize on your home’s footprint by converting an unused garage or basement into a rental or in-law-type unit. These can be amazing investments to help you bring in additional income.
3. Go Green—Creating a home that is more energy-efficient means more money in your pocket. You can shave lots of money off of your monthly bills, and also improve your own well-being. Consider solar panels to eliminate your electric bill entirely. If you can’t afford to purchase them, leasing may be an option. Tank-less water heaters are another simple fix that cut energy costs dramatically. Plus, often, green home improvements might qualify you for tax credits.
4. Creating Larger Spaces—Are you plagued with a home that has tiny rooms that drive you crazy? For resale, the rule typically says that more bedrooms equal more money. However, if you have two tiny, unusable spaces, you may be better off knocking down a wall and creating a larger space, especially if you are planning to stay put for the foreseeable future. Consult with a contractor to see if your home can support such a change.
5. Build-In—Creating storage space will not only make your life more organized and streamlined, but it’s also one of the first things home buyers look for when house hunting. Built-in work and storage spaces in your office, garage, craft rooms, and kitchen are useful and can give you the feel of a highly customized luxury home. The possibilities are endless, so look around your home and see where you can build-in.

• Site Retargeting:  By targeting users who have visited and left your site, you can segment your offerings (e.g. apartments, condominiums, etc.) to customize messages that can help steer them back in your direction.  It allows you to offer incentives and includes a clear call to action.  Sites like Adroll.com, Retargeter.com, and FetchBack.com all offer packages to fit your budget.
• Search Retargeting:  By targeting users who are searching specific keywords, you can find sites that you feel are complementary to you and your brand.  Services like Google Remarketing offer ways for your brand to get in front of the 90%+ who didn’t click through.
• Regional Retargeting:  By targeting users on a regional basis, you can focus your efforts on customers who are searching for properties in your area.  Sites like Simpli.fi and Chango.com allow you flexibility to market those users looking in the region(s) you serve.  This will put your brand in front of users on any site they’re visiting – whether it’s Google, Yahoo, or CNN (or anywhere else their mouse takes them).

In this day and age of real estate, users are savvy and have a plethora of choices available to them.  By using one (or all) of these retargeting techniques and services, you and your brand have a lot more options, too.  Maybe even make you a bigger fish in a smaller pond!

The change isn’t the result of new legislation, but rather a technology upgrade at FTB’s headquarters in Sacramento.  Targeted to be installed and fully operational in 2012, the system will allow the FTB to properly differentiate between deductible and non-deductible portions of property tax payments.  Since taxpayers typically deduct the total amount of their property tax bill – or the 1098 amount provided by their mortgage company – the state leaves billions in potential taxable revenue on the table every year.  Mello-Roos fees in Orange County account for more than $200 million of non-deductible amounts expected to be written off for tax year 2011.  The updated system could give Sacramento approximately $40 million of “found” income from Orange County alone.

The system upgrade was put into place after a review turned up the shortcoming in property tax deductions.  While it will be completed this year, the FTB delayed enforcement until next year.  That will allow property owners and tax preparers – as well as mortgage companies – time to correct shortcomings in their documentation, the FTB delayed implementation until next tax year.

1)     Make sure the price is right.  The seller’s market is long gone.  When you’re getting ready to list your home, double and triple check your sale price before putting it up.  Make sure you’re not pricing yourself out of the current market before it even hits the MLS; review the latest comps and notice the spread between listing and sale price.

2)     Spruce up your home – inside and out.  Buyers drive neighborhoods.  If your home is attractive on the outside, they’ll want to see what’s on the inside!  Cut back overgrown shrubs, apply a fresh paint, and replace flowers that are out of season.  Once the outside is beautiful, focus on interior appeal.  Whether it’s by having the home staged or touching up plaster and caulk, the return on this small investment far outweighs the cost.

3)     Be flexible.  It’s a buyer’s market.  Accept it.  But make it work in your favor.  Because nothing drives buyers away faster than a seller who rejects an offer without at least considering it.  If you’re downsizing or have already decided that you’ll be selling the family room sofa set or the backyard shed, consider throwing it in to sweeten the pot.  Closing costs always add up, so consider offering to help your buyer defray some of those fees as well.

4)     Put your listing up EVERYWHERE.  From Facebook to YouTube, savvy buyers and sellers are recognizing the opportunities the internet offers.  Be sure you’re capitalizing on every possible venue you can.

In today’s housing market, a little forethought goes a long way.  By following one (or several) of these suggestions, you’ll ensure your home sells in 2012!

“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.