Monday, January 24, 2011
Hidden Costs of Moving -- A Must Know Before You Move
I recently helped a really nice couple move from the Pacific Northwest to sunny Long Beach, CA. We spent countless hours sifting, identifying and choosing properties to preview. We went out on Saturday and Sunday for 3 straight weekends, looking at over 30 properties. We identified one property that was "heads and tails" above the rest and quickly made a very generous offer (albeit below asking price). The sellers accepted.
My clients' exhuberance was overwhelming. It was great!
Long before the "real work" of looking for the perfect property began, an important part of my job as their Realtor was to position exactly what is entailed around the transaction. One area that I make sure to cover were hidden costs not normally talked about when trying to sell real estate.
There are several that come to mind that I always make sure are clear: 1. Insurance Costs  I recommend my clients contact their insurance agent to provide them with guidance and estimates on homeowners insurance...AND...Automobile insurance. The geographic area (flood, tornado and brush fire prone areas), parking situation and surrounding environment may effect the amount of insurance you will end up paying for your two and three most valued assets (Your Home and car...I rate you and your family as a solid #1 valued asset -- above your home and auto). Always shop insurance and look for the best value before you settle on the lowest price.
2. Amenities The cost of living in New York city will vary greatly from rural Kansas. Long Beach, CA, although it is considered to be much more affordable than other areas of Southern California, costs more than other places in the United States. Gain a solid understanding for what things cost and what is available where you plan to move -- from accessibility to things you like to do to groceries to entertainment. All will have an effect on your lifestyle and quality of life. If you're unfamiliar with the area your moving too, ask your Realtor and get online. See what the area is like, what there is to do and how things are priced. Knowing this beforehand will make the adjustment much more fluid and enjoyable.
3. Utilities Utility costs differ from city to city, region to region. And can vary greatly based on the size of the property and efficiency in architecture and systems. See if the current owners wouldn't mind providing you with copies of utility bills (after your offer has been accepted) so you can get a handle on the costs you will incur after close.
4. Taxes (booooo!!) and Assessments  As the ole' saying goes..."There's only two things you can't avoid in life, death and taxes". So, that being true, having a clear understanding of the tax base and expectations will make your planning a lot more effective and easy. In Los Angeles County the property tax is approximately 1.25% of property value at the time of purchase (Note: As property values have decreased over the past few years, I always advise to familiarize themselves with the local tax assessor office and spend a few minutes on the phone to receive direction on how to lower your tax base to the value of the property at the time of sale. Often times, non-committed new home owners will continue paying the inflated tax rate of the property when the property was previous sold (if it was higher). Other taxes, assessments, bonds and mello roos also play a part in your tax budgeting for the year. Talk with your Realtor about the area that you are interested in and have them investigate any of these additional taxes. You should get this information in the Combined Natural Hazard Report/Tax Disclosure or Preliminary Title report provided during escrow. But doing some legwork beforehand, never hurts. Also, it's not just property tax that will effect your life style, sales tax, state tax and local income tax can also play a role. Don't be afraid to lean on your realtor to provide you the information or point you in the right direcdtion. Simply "Googling" sales tax in Long Beach will provide you a wealth of information. 5. The Commute  I know plenty of homeowners that moved many miles from work in order to increase the amount of home they could afford. Moving to Southern California from just about anywhere can be deceiving. On a map, going from Corona to Long Beach is only 30 miles. But those 30 miles during peak traffic can be up to 2.5 hours each way. The cost of time, gas and car maintenance can far outweigh the additional cost to be right down the street from work. Carefully evaluate, prior to moving, where you want to live in relation to your work. It can be a life (and relationship) saver.
Rule of Thumb: For many years, the rule of thumb is to keep housing costs below 33% and combined costs for housing, taxes, utilities and commute to less than 46%. I know, in these economically challenging times, it may be difficult. However, standing as close to these percentages will go a long way to making your body, mind and spirit a much happier place to reside.
Labels: Amenities, Belmont Heights, Belmont Shore, cost of living, Costs, Future of Real Estate, Hidden, Insurance, Moving, Taxes
# posted by Dave Harbison @ 4:14 PM
Wednesday, January 19, 2011
The Bembridge House - Quintessential Victorian
 I was driving down Magnolia Avenue in the Long Beach yesterday and decided to detour on 10th. I had heard about this exquisite victorian home near Drake Park. I wasn't disappointed. Born and raised in outside of Buffalo, NY, I had the chance beautiful victorian homes every day. In my home town, Main Street was lined with big, old, impeccably kept Victorians with gabled tops, patterned shingles and stained glass windows. Right in the heart of the city of Buffalo, on Delaware Avenue near Casanovia park, these homes abound. As I stopped to have a look, it brought back memories of home and days gone by. I know little about the Bembridge home located at 953 Park Circle Drive. It was built in 1906 by Josephine and Stephen Green. In 1918, the parents of Dorothy Bembridge bought the home. Dorothy would live in the home for the next 80 years -- hence the Bembridge House. It is currently owned by the Long Beach Heritage Organization, a great local nonprofit group dedicated to the knowledge and preservation of historical architecture in Long Beach. http://www.lbheritage.org/. If you ever get the opportunity take a drive down 10th, past Magnolia. You'll run right into it...on the right hand side. Labels: Bembridge Home, Buffalo NY, Future of Real Estate, lbc, Long Beach Architecture, Long Beach Heritage, Victorian
# posted by Dave Harbison @ 5:38 PM
The Media Hype About Real Estate - Believe it or Not?
 The past three years have been very interesting in the state of real estate... To say the least. Recently Fox and CNN economy and political experts groused about the explosion of Foreclosures in 2011 (when we hit the 5 year point from when the last of the millions of toxic 5-yr adjustable loans were issued). In the 60 months, the economy has been challenging. Job market has spuddered. Consumer confidence has waned. And, in all the negativity, the opportunity to own a home has become more affordable than any time in recent history. And interest rates are...well better than ever. Now's the time to get a peice of the American dream. Banks are lending, but are much more diligent in their vetting process (as they probably always should have been). Americans are slowly coming to grips that we need to save and work hard to realize our dreams. We'll get through this time, but in much different fashion than past recessions. With so much information at our finger tips, the stress, anxiety and speculation shot in our direction by any number of a 1000 different media outlets is looking to take control of our emotions and actions. In my opinion, Southern California home prices, specifically Long Beach, have adjusted to pre-2002 levels. To most of us consumers, we learned the hard way that our homes are not piggy banks. Home value increases seen in the early 2000's are a thing of the past. Your home will always be a valuable and worthwhile investment if you plan to live in it for a long period of time or have enough equity to gain a positive cashflow from it. As a Realtor with over 5 years experience, I've always found one of our most valued attributes is as prognosticators of the real estate future. We get asked all the time "So, where do you think the market is going?" My answer? UP. Always UP, if your thinking is long term. Labels: Belmont Heights, Belmont Shore, Future of Real Estate, Interest Rates, Long Beach, Real Estate
# posted by Dave Harbison @ 9:24 AM
Tuesday, January 18, 2011
Open Houses Are Great for Just....Going!
 Well, the new year always kicks off a new season of Open Houses. As a Realtor for a number of years, I always enjoy people stopping by and looking at the great homes I hold open. Most of them are not in the market to buy the home, but enjoy seeing what their neighbor's home looks like, what improvements have been made, what improvements need to be made and how it compares to their home. The point is, going to an open house serves a lot of purposes. I think most of all, it is to get a feel for the vision you may have for your dream home. Whether you plan on moving into it sometime soon or already live there, an Open House is a place where your mind can wander pick up unique things that will work in your home So many people ask interesting questions that help me dig deeper into the history of the home, its features and architecture. In a way, we're extremely lucky here in Southern California. The rich history and architecture coupled with great weather allow our little peice of the world to evolve in a powerfully unique way. When you pass by an Open House. Take the time to stop in. You never know what great ideas are behind those doors. Labels: Belmont Heights, Belmont Shore, Dave, Long Beach, Open House, Real Estate, Realtor, Seal Beach
# posted by Dave Harbison @ 7:18 PM
Monday, January 17, 2011
Buyer's Approach to A Home That Needs TLC
 Today, there are more homes on the market that would be considered "Distress sales" - the majority of which are short sale or a bank owned properties. In California, properties are sold "As Is"... And believe me, many need work. The questions you need to ask yourself as a buyer should drive you to a clear conclusion as to whether you should consider presenting an offer. Here is a list of, what I like call, "areas of clarity" that may help you gain peace-of-mind during the highly stressful and anxious home search experience: 1. Can you envision the end result? 2. What are the priorities of your purchase and how does the home rank? (Location, neighborhood, access, size, lot size, bedrooms, bathrooms, curb appeal, potential etc...) 3. What do you need to do to make the home "live-able"...to your standards? 4. What projects take priority and what things can be done down the road? 5. Is the list price at market value or quite a bit above or below? 6. Is there any "wiggle-room" or flexibility in the list price?  If there is anything I have learned in my years in Real Estate -- One family's "teardown" home is another's castle. If it feels right, 9 times out of 10, it is right!! Labels: Bank Owned, Belmont Heights, Belmont Shore, Long Beach, Park Estates, Real Estate, Realtor, Short Sale
# posted by Dave Harbison @ 9:05 PM
Sunday, January 16, 2011
The Mystery of the Short Sale In Long Beach, CA
 I'm sure you've been inundated with ongoing news about the state of Real Estate. Not much of it has been good. In fact, CNN reports that this year, foreclosures across the United States will peak. The experts go on to predict that interest rates will stay steady for the first part of the year then start to creep up into the 5.5% range or higher. So, when a foreclosed home or short sale comes to your attention, you may automatically think "DEAL". Especially in the first few months of 2011 while the rates are still low. The "Short Sale" may seem like a simple transaction. It's not. The owners owe more on the home than it is worth. Often times 25-30% more. They're looking for a way out. The lienholder(s) are looking for their money...Then you enter as the "Eager Buyer". It can get pretty sticky. Here are some things I've noticed and experienced as a Realtor doing short sales.
- The Price listed by the "listing agent" is often not the price the bank will accept, but one that the realtor will put in order to get an offer to submit to the bank so they can see where the bank falls. The rule of thumb
- The property may be listed for sale, yet already have an offer at the bank...which puts your offer behind (in back up) to the one submitted. All too often my clients get really jazzed about a property only to find that an offer was submitted to the bank months ago.
- I've heard of short sales taking 8-10 months to complete (although the one I'm working on now should only take 5 months...fingers crossed). It can take exponentially longer than the standard sale.
- If your offer is approved, there is a good chance you will get the property "AS IS". In other words, the bank or current title holders will not make any repairs. This often frustrates buyers as they feel they are entitled to the same courtesies normally extended to a standard sales transaction. The difference is twofold:
The title holders (owners) owe more than the property is worth and are taking a hit on their credit and most likely in in their pocketbook in order to get out of the property. They, in their own minds, have already walked away from the property and don't want to do anything more.
The bank (lienholder) is not in the business of losing money. They have not written the property off and want to keep the "bleeding" to as little as possible.
- Realtors that list short sales and are not educated in the process get frustrated quickly, making the process more difficult and time consuming to complete
Yes, a short sale can be a great buy! But be prepared to walk a windy road as statistically, most short sales do not close. And, before you start identifying short sale properties, be sure to quiz your Realtor as to their knowledge about short sales:
- Have they ever done a short sale?
- How many have they done?
- What is the process?
- Will there be a nogotiator involved?
- How do they investigate a short sale? What types of questions do they ask the listing agent?
- Typically, how long, in their experience, will it take to close a short sale
There is always opportunity in Real Estate...Have your Realtor map out the best strategies for you to achieve your goals. ---Dave HarbisonLong Beach REALTOR®Main Street Realtors (562) 618-9770---Long Beach Realtor® / Real Estate AgentLong Beach Homes for Sale, Condos and Investment PropertiesLong Beach Relocation Expert--- Labels: Belmont Heights, Belmont Shore, Long Beach, Naples, Park Estates, Real Estate, Sales, Short Sale
# posted by Dave Harbison @ 7:24 AM
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