PruCalVoices » Mark Hasha

Floor the Competition

Mark Hasha — Mon, 14 May 2012 23:57:20 +0000

When people enter your home they usually look down before up, so that first step is vital for attracting a homebuyer and making a great first impression. This is one reason why more people are installing hardwood floors in their homes.

Hardwood flooring enhances the look of any room and can create a classic ambiance that will beautify the interior design of your home. Residential real estate agents agree that homes with wood floors hold their value better, sell faster and fetch higher prices.

Last year, 99 percent of real estate agents responding to a national survey conducted by the National Wood Flooring Association agreed that homes with hardwood floors are easier to sell. The survey also found that 82 percent believe that homes with hardwood floors sell faster and 90 percent said they would sell for more money.

The American Hardwood Information Center adds that restoring hardwood flooring in the home is one of the best long-term investments to be made.

“Hardwood floors are environmentally friendly, forever fashionable, and will last for generations,” said Pembroke Jacobs, president of the Hardwood Manufacturers Association. “Plus, with an expected life span of up to 100 years for certain premium hardwood flooring, you can be assured that that the hardwood really is a one-time investment with a very long-term payoff.”

Real estate agents also agree that carpeting does not impress potential buyers, but hardwood floors are always a draw. Engineered wood floors impart warmth, depth and richness to a home’s decor that cannot be matched by carpeting, tile or vinyl flooring.

Despite the existence of modern architectural trends in flooring, hardwood can still compete with floor tiles and other artificial materials. It comes in a variety of colors and grains; light, medium, or dark shades; and a variety of sizes, styles, finishes and species.

Maple, mahogany and oak are the most popular woods, but some homeowners are investing in exotics such as Brazilian cherry and purpleheart.

The Environmental Protection Agency has said that indoor air quality is one of the top health threats and wood floors can help contribute to a healthy living environment. In fact, a recent EPA study found that pesticides used in gardens and homes accumulate on floors and other surfaces in the home, but that wood floors greatly reduce the accumulation of such toxins. Hardwood floors also do not trap or harbor dust mites or molds.

Though wood floors will probably need to be refinished at some point, when properly taken care of they are much easier to maintain than other floor surfaces.

The NWFA recommends regular sweeping of hardwood floors with a soft-bristle broom or dust mop to remove surface dirt and debris. If your floor contains beveled edges, it recommends using a vacuum with a soft bristle brush attachment to remove dirt and debris from between the floorboards.

Having hardwood floors could be the difference between selling your home or watching a potential buyer walk out the door on a less-appealing type of flooring.

Mark Hasha
Prudential California Realty
DRE 01214225
www.MarkHasha.com

Mark Hasha can be reached at (650) 799-0731. Prudential California Realty is an independently owned and operated member of BRER Affiliates, Inc

Is it Worth the Cost? Preparing your Home to Sell

Mark Hasha — Thu, 03 May 2012 16:53:16 +0000

A stressful part of putting your home on the market is trying to figure out what to fix and upgrade to get the very best price. An experienced agent will recommend projects to consider and ones to avoid. After all, just because you put money into a renovation project doesn’t mean you will recoup the money in a sale.

You may also want to consult Remodeling Magazine’s annual Cost vs. Value Report for a breakdown of typical returns on renovation projects large and small. The 24^th annual edition published earlier this year contains input from some of the country’s top remodeling professionals and ranked 35 remodeling projects for highest returns.

In many cases, smaller-scale renovation projects recoup more of their initial cost than larger, pricier ones, according to the report. For example, a minor $20,000 kitchen upgrade returns 72.8% of renovation costs, but a more expensive $58,000 kitchen remodel only retains 68.7% of its value on resale.

Surprisingly, the report noted that exterior upgrades recoup more of their costs than interior renovations — a trend that’s been building for the past five years. What’s the hottest exterior upgrade according to this year’s report? Replacing the front door with a steel entry door, which typically returns more than 100% of its cost.

The report also lists garage doors as a wise investment, returning up to 83% of their original cost when the home sells. Other prudent outdoor renovations include siding and window replacement, returning 80% and 72.4 %, respectively.

Interior improvements retaining the most value include attic renovations and basement remodels, recouping 72.2% and 70%.

“Just like an addition to the home, an unfinished space—such as the attic or basement—will instantly add value and livability to your home, as it increases the square footage and changes the way your family lives in it,” said Will Tomlinson, owner of North Carolina-based greyHouse Inc. Renovation and Remodeling. “You will be transforming a space that likely gets very little use into a fully functional area for your family to enjoy.”

The report also notes that non-essential features have less resale value. Sunroom additions recoup only 48.6% of renovation costs; home office remodels, 45.8%; and backup power generators, 48.5%.

Of course, homeowners’ needs and budgets dictate their choice of home-improvement projects. Still, it helps to know projects’ cost vs. return ratio when making the final decisions.

If you are interested in a complimentary market evaluation of the current market value of your home and recommendations on how to prepare your home for sale please give me or one of my colleagues a call.

Mark Hasha
Prudential California Realty
DRE 01214225
www.MarkHasha.com

Mark Hasha can be reached at (650) 799-0731. Prudential California Realty is an independently owned and operated member of BRER Affiliates, Inc

Selling an Ugly Home

Mark Hasha — Wed, 04 Apr 2012 21:35:08 +0000

Let’s say that you inherited an old house in a distant location and want to put it on the market. You may not have the time, resources or energy to make it perfect and just want a quick sale.

Or, maybe you had renters at your property who did substantial damage and you don’t have the money to make necessary renovations.

Fear not. Just because the house needs work doesn’t mean you can’t sell it. Many homebuyers today are shopping for deals and want to see the potential in your home. In that case, leave brochures for new cabinets in the kitchen, color palates around the bedrooms and even create computerized images of what updates could look like.

In addition, secure bids from licensed contractors on necessary fixes and provide them to your potential buyers. People may overestimate the cost of a new roof, shower stall or drywall repair and fresh paint. Estimates will bring the home into clearer perspective.

Work with your real estate agent to make the home as presentable as possible for the least amount of money. Make a room or two inviting so you have the photos that will attract buyers to what you can call “a fixer upper.”

Of course, nothing is going to attract people more than a low price. Obviously, you will need to discount the sales price to gain an advantage over comparables in better condition.

A down-and-out house doesn’t mean you’re stuck. With small repairs, research and practical pricing, you can turn that “Ugly Betty” into a sale.

Mark Hasha
Prudential California Realty
DRE 01214225
www.MarkHasha.com

Mark Hasha can be reached at (650) 799-0731. Prudential California Realty is an independently owned and operated member of BRER Affiliates, Inc

‘Tis the Season for Tax Breaks

Mark Hasha — Tue, 07 Feb 2012 00:06:15 +0000

     With April 15 rapidly approaching many are working hard to complete their taxes. For those who have recently bought or sold a home, there are a number of tax deductions that that may be available to them.
   Real estate broker’s commissions, title insurance, legal fees, advertising costs, administrative costs, and inspection fees are all considered selling costs and may be used to reduce one’s taxable capital gain by the amount of the selling costs. That could result in a big savings depending on the final sale price.
Interest that is paid on a mortgage is also tax-deductible, within limits. A married couple filing jointly can deduct all their interest payments on a maximum of $1 million in mortgage debt secured by a first or second home.
   Buyers may also be able to deduct some of the interest they paid on a home equity loan or similar line of credit.
    One deduction that many buyers often overlook is points. Points or origination fees on a home loan that were paid during the purchase of a home are generally tax-deductible in full for the year in which they were paid.
     Refinanced mortgage points are also deductible but only over the life of the loan – not all at once. Homeowners who refinance can immediately write off the balance of the old points and begin to amortize the new.
    If your lender required private mortgage insurance, the PMI premiums are tax-deductible for mortgages taken out from 2007 through 2011.
   Making improvements to property prior to the sale or once one moves in might qualify for an interest deduction on your home-improvement loan. Qualifying capital improvements are those that increase your home’s value, prolong its life, or adapt it to new uses, such as adding a porch or installing energy-efficient windows.
    Many times during a sale, the seller will send the local tax collector’s office a check for real estate taxes prior to the closing. In many circumstances, however, the buyer will pay a pro-rated portion of the taxes for the year at closing. This tax deduction also gets overlooked.
    For those working from their new home: If a room is used exclusively for business purposes, they may be able to deduct home costs related to that portion, such as a percentage of your insurance and repair costs, and depreciation.
    In some instances, if you have moved because of a new job, moving costs may be deducted. These can include travel or transportation costs, expenses for lodging, and fees for storing your household goods.
    Every year the tax laws change and certain tax deductions become available while others phase out. If you have recently bought or sold a home, it’s probably a good idea to seek out a professional tax consultant to do your taxes as missing deductions that you can legally claim can add up to quite a bit of money.

Mark Hasha
Prudential California Realty
I can be reached at (650) 799-0731 (cell/text) or email mark@markhasha.com

It’s a Buyers’ Market for Real Estate Investors, too

Mark Hasha — Wed, 04 Jan 2012 01:51:36 +0000

Turn on any financial news program and at some point you’ll hear the experts extolling the virtues of diversification. Real estate, even through the market downturn, has long been considered a conservative, long-term strategy to growing wealth.
In fact, that very downturn has created a historic buying opportunity for potential homebuyers and investors alike. The combination of lower home prices across American and historically low mortgage rates, two essential factors that usually don’t trend in the same direction, have triggered a buyer’s market in many areas of the country. For real estate investors who want to rent their properties, this can make the difference in achieving positive cash flow sooner or right off the bat.
While some seasoned real estate investors make it look easy, to be successful, beginners should follow some basic principles.
• Learn all you can. Before committing your cash, you should have a fundamental understanding of real estate. For example, be aware that, in general, investment properties are not liquid investments. Barring exceptional circumstances, real estate does not sell at a moment’s notice. It could take days or months to sell a property, depending on the strength of the market in a particular region.
• Consider cash flow. You’ll need to have enough capital on hand to cover any short-term losses due to vacancies between tenants.
• Start small. Look into buying a condominium, single-family home or a duplex. Leave large apartment buildings and commercial properties to the pros.
• Inquire at the local Chamber of Commerce about companies relocating into or out of the area. Company movement is one indicator of demand for rental and/or office space.
• Find a property that will be in demand. Look for a moderately priced home with three or four bedrooms, two bathrooms, and a garage that sits on a quiet street.
• Research the property. The most common way first-time investors lose is by failing to investigate a property thoroughly. Look beyond the front door. Investigate the reputation of the school district, the crime rate, and plans for expanding a nearby highway or developing vacant land. Ask a local real estate professional about the area, its history, and how fast (or slow) properties are moving.
• Inspect the home you’re considering for signs of water damage, such as stains on the ceiling and crinkling or gathering wallpaper; open and close every door and window; and check all electrical sockets by plugging in an appliance. Get an independent home inspection, roof inspection and termite inspection. Unexpected repair costs can eat away your cash flow. Because even the best inspection can’t always predict problems, try to set aside some of the rental income for unexpected repairs.
• Spend time driving the streets of the neighborhood noting the condition of other properties. Are lawns maintained? Are roofs in good shape? Are homes kept up?
• Be ready to make fixes quickly and respond to the renter’s needs. If you’re not prepared to be a hands-on landlord, consider hiring a property management firm.
• See your tax advisor for related planning and laws that can affect your investment decisions.
Remember, investing in a property is much different than living in one, and while emotion and attachment can be prime motivators when it comes to homes, it is return on investment that counts when investing in real estate.

Mark Hasha
Prudential California Realty
I can be reached at (650) 799-0731 (cell/text) or email mark@markhasha.com

California Prop 90 Update!

Mark Hasha — Thu, 02 Sep 2010 02:55:42 +0000

California’s Prop 90 allows a home owner in California to sell their home, buy a replacement property in a participating county, and move a lower prop 13 based tax value from their old home to the new county for the purpose of home tax assessment. It allows the adjusted base year value of the original (sold) property to be transferred to the newly purchased or constructed home if eligibility requirements are met.There are some restrictions like the claimant or claimant’s spouse must be at least 55 years of age. The replacement property must be your principal residence and must be eligible for the homeowners’ exemption.

Participating counties are Alameda, Orange, San Mateo, Ventura, Los Angeles, San Diego, Santa Clara and now, El Dorado County.

There are also purchase price restrictions on the new replacement property.

The purchase price of the new home can be:
100 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed prior to the date of sale of the original property,
105 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the first year following the date of the sale of the original property, or
110 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the second year following the date of the sale of the original property.

So if you have been putting off buying that retirement home in the gold country because you weren’t sure you could afford the property taxes… now is the time.

Mark Hasha
www.markhasha.com
Mark is a Seniors Real Estate Specialist helping buyers and sellers in San Mateo County.

8 Tips to Save Your Sanity

Mark Hasha — Wed, 03 Jun 2009 23:32:37 +0000

I received some great advice from one of the great lenders I work with and I wanted to share it with you. Timely loan approval is critical in today’s real estate market and I wanted to share his tips with you.

8 Tips to Save Your Sanity

A buyer’s guide to the loan approval process.

Guidelines and requirements for loan approvals have recently become more rigorous and each transaction is processed with much more scrutiny. Keeping just a few things in mind could save your sanity, stress level and funding schedule.

1. Be expedient and thorough. When initiating a loan, and throughout the loan process, it is imperative to provide complete documentation to your Mortgage Advisor as quickly as possible. For instance, if all pages of the bank statement are requested, it really means all pages. While you and I might not think it’s necessary to include the reconciliation page of the statement, the lenders do. And, when they receive only five of the six pages of said bank statement, the loan process can become inefficient and stalled.

2. Keep detailed financial records. If it is necessary to transfer funds from one account to another or to sell stock for a down payment, keep a detailed paper trail of all transactions, deposits and liquidations. Lenders will request it.

3. Be available. Be sure to leave a contact phone number with your Mortgage Advisor if you are traveling for business or on vacation. Until all the loan approval conditions are met, you may be required to provide additional documentation or information.

4. Keep your day job. Lenders always contact your employer just before the loan funds. If you have left that company (quit, moved to a new company or retired), the lender will stop the loan from funding and recording.

5. Stay married. We’re certainly not suggesting that you be deceptive, however, be aware that filing for divorce during the loan process can bring progress to a halt. Most lenders will not approve or fund a mortgage loan until the final decree (settlement terms) is recorded.

6. Spill the details. Be sure to notify your Mortgage Advisor of any changes to the purchase transaction. Unidentified last minute changes, such as escrow holdbacks, seller credits or termite work, can wreak havoc with closing dates.

7. Safeguard your social security number. Lenders are increasingly using credit scores to assist in mortgage credit decisions. Don’t incur any new debt during the loan process. Doing so increases your debt-to-income ratio and reduces the amount you can borrow. If you decide to “just window shop” for a new car, don’t give into the temptation to give a sales person your social security number; it will enable them to check your credit score. Each credit inquiry – whether you ultimately make a purchase or not- lowers your credit score. The same holds true for pre-approved credit card offers that you receive in the mail. Do not respond to them. Doing so will result in a credit check. For more specific information on your credit score, visit www.myfico.com .

8. Stay current. Continue to make the required payments on your present loans and/or credit cards. This may seem obvious but once in awhile, in the flurry of excitement and activity, a buyer forgets. This puts the loan and escrow close in jeopardy.

A home is a significant investment. And, admittedly, it can be a bit overwhelming when you stop to think about the inspections, reports, documentation and the many details and considerations associated with this exciting purchase. Following the recommendations above will help to streamline the loan process, minimize delays and alleviate some stress.

Special thanks to Andy Block of Opus Advisors for providing me with this information.

Please let me know if I and the team of real estate professionals that I work with can help you with your next real estate transaction. www.markhasha.com

It is starting to trickle down?

Mark Hasha — Wed, 15 Apr 2009 17:24:03 +0000

A question that comes up when talking about today’s housing market is if the recent economic stimulus packages and federal bailouts that we are all paying for will actually help the average homeowner. I wish I could tell you that I understand how it all is suppose to work. You wonder how pumping billions of dollars of taxpayer dollars into bleeding financial institutions will actually trickle down and help average hard working families who are struggling to keep ahead of their daily expenses and keep a roof over their family’s heads. I can’t tell you how it is all suppose to work but I can tell you that I can now see it on my newest mortgage statement.

I have an adjustable loan. Like many of my clients my wife and I had to stretch ourselves to buy a home in the neighborhood that we wanted to live in. To do that we choose a 30 year adjustable loan with the first 5 years fixed at 5.75%, a good interest rate at the time, and payments we could afford. Like many others the economic downturn has had an effect on our income and we were a little worried about staying ahead of our house payments. Well the adjustment period on our loan just came due this April and guess what, it has adjusted to 4.0%, that is a $500 dollar a month savings for us. I still have a smile on my face. By understanding what needs to be done to help keep interest rates low during an economic downturn the Federal Reserve has helped keep my home affordable; thank you.