Monday, April 9, 2012
Get Your Property Tax Lower - Appeal Your Bill
I've had a number of clients come up to me this past year and talk about their Property Tax. Most have undergone a shift in home value downward over the past 3-4 years and are frustrated with the fact that their property taxes reflect the market when homes cost 25%+ more. Surprisingly few have taken the time or the steps to re-adjust their property taxes to be more in line with today's property values.
After several inquiries I began a search to find out exactly what to do in the least amount of time. I came across an interesting article by Barbara Eisner Bayer in October 2009. Here's what she recommends:
Owning a home is an expensive proposition. There’s maintenance, landscaping, utilities, renovations, and, of course, taxes. It’s your civic duty to pay the latter, but it’s also your right not to yield a penny more than your fair share.
It’s possible to trim your property tax bill by appealing the assessed value of your home. But making a case against your real estate assessment, the basis for your property tax bill, requires doing a bit of homework. Initial research can be done online or by phone over two or three days, but the process can stretch out for months if you’re forced to file a formal appeal.
Read your assessment letter
A real estate assessment is conducted periodically by the local government to assign a value to your home for taxation purposes. An assessment isn’t the same as a private appraisal, and the assessed value of your home isn’t necessarily how much you could sell it for today. Real estate assessment letters are mailed to homeowners annually, or perhaps every two to three years, depending where you live.
The letter will include some information about your property, such as lot size or a legal description, as well as the assessed value of your house and land. Additional details—number of bedrooms, for example, or date of construction—can often be found in the property listing on your local government’s website. Your property tax bill will usually be calculated by multiplying your home’s assessed value by the local tax rate, which can vary from town to town.
If you think your home’s assessment is higher than it should be, challenge it immediately. The clock starts ticking as soon as the letter goes out. You generally have less than 30 days to respond, though the time frame varies not just between states, but within each state. Procedures are often outlined on the back of the letter.
Gather evidence
Start by making sure the assessment letter doesn’t contain any mistakes. Is the number of bathrooms accurate? Number of fireplaces? How about the size of the lot? There’s a big difference between “0.3 acres” and “3.0 acres.” If any facts are wrong, then you may have a quick and easy challenge on your hands.
Next, research your home’s value. Ask a real estate agent to find three to five comparable properties—“comps” in real estate jargon—that have sold recently. Alternatively, check a website like Zillow.com to find approximate values of comparable properties. Today, there are a number of web sites that will provide key information about an area. Keep in mind, these sites do not take into the consideration, key intangibles like, location, updates and upgrades. The key is identifying properties that are very similar to your own in terms of size, style, condition, and location. If you’re willing to shell out between $350 and $600, you can hire a private appraiser to do the heavy lifting.
Once you identify comps, check the assessments on those properties. Most local governments maintain public databases. If yours doesn’t, seek help from an agent or ask neighbors to share tax information. If the assessments on your comps are lower, you can argue yours is too high. Even if the assessments are similar, if you can show that the “comparable” properties aren’t truly comparable, you may have a case for relief based on equity. Maybe your neighbor added an addition while you were still struggling to clean up storm damage. In that case, the properties are no longer equitable.
Present your case
Once you’re armed with your research, call your local assessor’s office. Most assessors are willing to discuss your assessment informally by phone. If not, or if you aren’t satisfied with the explanation, request a formal review. Pay attention to deadlines and procedures. There’s probably a form to fill out and specific instructions for supporting evidence. A typical review, which usually doesn’t require you to appear in person, can take anywhere from one to three months. Expect to receive a decision in writing.
If the review is unsuccessful, you can usually appeal the decision to an independent board, with or without the help of a lawyer. You may have to pay a modest filing fee, perhaps $10 to $25. If you end up before an appeals board, your challenge could stretch as long as a year, especially in large jurisdictions that have a high number of appeals. But homeowners do triumph. According to Guy Griscom, Assistant Chief Appraiser of the Harris County (Texas) Central Appraisal District, of the 288,800 protests filed in his Houston-area district in 2008, about 58% received reduced assessments.
How much effort you decide to put into a challenge depends on the stakes. The annual U.S. median property tax paid in 2008 was $1,897, or 0.96% of the median home value of $197,600. Lowering that assessed value by 15% would net savings of about $285. In some parts of New York and Texas, for example, where tax rates can approach 3% of a home’s value, potential savings are greater. Ditto for communities with home prices well above the U.S. median.
There are a few things to keep in mind as you weigh an appeal. The board can only lower your real estate assessment, not the rate at which you’re taxed. There’s also a chance, albeit slight, that your assessment could be raised, thus increasing your property taxes. A reduction in your assessment right before you put your house on the market could hurt the sale price. An easier route to savings might lie in determining if you qualify for property tax exemptions based on age, disability, military service, or other factors.
"Changes to stipulated local, city and county tax codes for property are ongoing. So we recommend investigating procedure and process prior to taking any action to save time, energy and money!" -- Dave Harbison
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction
About the author: Barbara Eisner Bayer has written about finance for Motley Fool, Daily Plan-It, and Nurse Village, and is the former Managing Editor of Mortgageloan.com and Credit-land.com. She splits time between a beachfront condo and a mountain retreat
Read more: http://www.houselogic.com/home-advice/property-taxes/property-tax-appeal/#ixzz1rYn4snuX
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Dave Harbison
Long Beach REALTOR®
Main Street Realtors (562) 618-9770
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Long Beach Realtor® / Real Estate Agent
Long Beach Homes for Sale, Condos and Investment Properties
Long Beach Relocation Expert
--- Labels: Alamitos Heights, Belmont Heights, Belmont Shore, Long Beach Homes, Lower, Naples, Property Tax, Taxes
# posted by Dave Harbison @ 9:23 AM
Friday, April 6, 2012
Pesky Insects, Termites and other bugs. What to Do!
I recently helped a client close on a property right near the beach. Everything was going smooth until it came down to the termite work. The seller, who leased the property to a couple with a young child, was posed with a delimma. The couple was really concerned about toxic chemicals being used for the work. They refused access to the property for quite some time.
This was new to me. I had never had a problem having termite work done before. It certainly peaked my interest and set me on a path to have alternatives ready for future
I did a little digging and came across some information and insight that definitely makes it easier to understand.
There is a buzzword being used these days to address those pesky pests — Integrated Pest Management (IPM). It is a uniquely powerful combination of prevention, conventional pesticides, and green alternatives.
For years (decades maybe) the traditional path spray using approved poisons. This could be done as a spot treatment or in the case of termite infestation, the home could be "tented" or enclosed. Today however, due to a growing concerns about the dangers of toxins buyers and sellers are looking for alternatives. The industry is also looking for ways to reduce the amount of pesticides used by incorporating solutions that are proven to be less toxic but still effective. The result — IPM.
Although a work in progress, this approach is quickly catching the eye of sellers and buyers alike. I think IPM will grow in popularity and move termite and bug protection to another level.
The Difference Between Conventional treatment and IPM
The convential approach is extermination (shoot-to-kill) with chemicals. This process often starts by toxic pesticides, then reapplying them on a regular schedule to prevent future infestations. In truth, the homeowner is paying for treatment whether insects are there or not.
The biggest challenge with the conventional approach is the risk of unnecessary exposure to toxic pesticides. Although proven to be effective in the short-term, pesticides can be linked to long-term adverse effects on the endocrine, reproductive, and nervous systems of people and animals. Smaller children can be more sensitive to the toxins found in many pesticides because their immune systems, organs, brains, and nervous systems are still developing.
Even with Environmental Protection regulating all pesticides, they remain potentially deadly to humans and harmful to the environment - especially if misapplied.
An alternative is Integrated Pest Management (IPM)
IPM uses a combination of strategies to control pests and includes homeowners as partners in the process. IPM consists of three basic steps:
- Identifying Pests
Knowledge of the termites/pests is key to drawing up a plan to combat them. Any termite/pest control rep should be able to tell different insects/termites apart and understand everything -- their habits and habitats and how to best neutralize them
- Preventing Pests from gestation and spreading
This strategy stresses prevention by denying food, water and access to livable habitats. However, immediate action to treat an existing infestation may include call for low toxic or natural (but effective) alternatives to neutralize the bugs/termite
- Continual Treatment
No matter what the circumstances, active continual treatment is almost always recommended. The exterminator should consider using low toxic products - applying as little as possible and treat the smallest area possible (i.e. cracks and crevices)
If you are not comfortable with even low toxic sprays, gels or grandule pesticides, there are several natural substances (i.e. boric acid) that have active ingredients to stop infestation. Although slower than chemical pesticides, there are products made from natural substances can be very effective.
Keep in mind, that even natural solutions have the capacity to kill living organisms. Therefore, these solutions may be harmful to you and those around you. The best advice I can give is to have a full understanding of the products being used regardless of their toxicity.
Lastly, make sure the company you align with is licensed and a member of the local, state, and/or national pest management association. The association participation provides you the peace-of-mind that they are held accountable to the highest professional standards and ethics.
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Dave Harbison
Long Beach REALTOR®
Main Street Realtors (562) 618-9770
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Long Beach Realtor® / Real Estate Agent
Long Beach Homes for Sale, Condos and Investment Properties
Long Beach Relocation Expert
--- www.espn.comLabels: Belmont Heights, Belmont Shore, bugs, extermination, insects, Long Beach, Park Estates, pesticides, tenting, Termite, toxic, wood destroying
# posted by Dave Harbison @ 1:29 PM
Wednesday, April 4, 2012
It's Spring. Time to Address Your Curb Appeal and Landscaping
 Although the nation has experienced unusually warm winter, we in Long Beach have had quite a chilly few months. There were a few warm days from January through March, but on the whole, it was colder than in past years.
Now that the weather is starting to warm up, it's time to do a little spring cleaning. Not only inside your home, but outside too.
Here are a few things you may want to consider doing this spring to the outside of your home.
- CLEAN UP THE WINTER MESS
Put a day or two aside on the weekend to clean up your yard and garage prior to even thinking about addressing your lawn and landscaping vision. Trim back any trees, shrubs and other plants that have grown unruly during the past 4 months. Start with a clean slate before you tackle the tough stuff...
- PUT TOGETHER A VISION AND ACTION PLAN
Like many, I like to dive-in and get my hands dirty right away when it comes to making the landscaping and appeal of my home the best it can be. But, going at it without some sort of plan is costly in both dollars and sense. Before you do anything, plan out your vision. Know what you will need from patio furniture, to shrubbery, flowers and plants. Don't be afraid to develope a whole design theme for the outside of your home. And always search out the best deals so that you can rest assured your big (and small) landscaping projects are cost effective and up to your standards.
- IT'S THE SMALL THINGS YOU DO THAT CAN MAKE THE DIFFERENCE
Things are still tight out there. So, if you are on a budget is small but your vision for your lawn and landscaping is quite large, look to the simple fixes first. Ones that may take a bit more time but not as much expense. Like trimming bushes and hedges, planting seasonal plants, painting the fence or outdoor fixtures. Taking a little more time can be a major cost saver.
- DON'T TRY TO DO TOO MUCH YOURSELF
DIYers are great. I consider myself one. However, trying to cut corners on the big projects can end up costing you a lot more money and time. Look to the professionals to do the jobs you don't have the time or tools to accomplish. Things like re-sodding, mulching, cutting and exterior painting are two examples. Remember, time is money...even on the weekends. There's nothing wrong about being confident in your abilities. But being wise is also a valued asset.
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Dave Harbison
Long Beach REALTOR®
Main Street Realtors
(562) 618-9770
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Long Beach Realtor® / Real Estate Agent
Long Beach Homes for Sale, Condos and Investment Properties
Long Beach Relocation Expert
--- Labels: Belmont Heights, Belmont Shore, Bush, Cleaning, Craftsman, Curb Appeal, Long Beach, Painting, Park Estates, Sod, Spring, Trim
# posted by Dave Harbison @ 9:12 AM
Tuesday, April 3, 2012
Real Estate Sales Will Soar in 2014? It's Already Started In Long Beach!
Not much good news has passed by our ears or eyes the past 5 years. Our economy and resolve has certainly been tested. And will probably continue to be tested for the forseeable future.
During the time, I've seen our Realtor ranks diminish greatly (my estimate is 30%), the number of houses sold decrease by >25% from the market high and home values decrease by as much 30%+ in certain areas of Long Beach. It's been quite a ride. (I can't imagine the roller coaster Florida, Nevada and places like Riverside, CA have gone through. And I don't think it is fully over. The ride will continue, but at a much steadier even-keeled pace...and upward.
A really positive article appeared in a Real Estate Directory newspaper I read periodically. Backed by reputable sources (38 of the nation's leading Real Estate Economists).
They predict:
- Housing starts will nearly double
- Overall home prices will stop declining this year and increase by 2% and 3.5% in 2013 and 2014 respectively
- Rents are expected to increase for all property types
- Vacancy rates are expected to drop for office, retail and industrial properties
- With an improving economy, interest rates will rise as will inflation
 All of this, of course, is predicated on (at least) steady economic growth and a stronger world economic outlook. Any major event can turn this recovery in to double (possibly triple) dip recession.
By all indications, the turnaround is going to be a slow and certainly not like the meteoric rise we experienced in the early part of the last decade. I, for one, am looking forward to more positive indications that we are back on the right track.
To learn more about what to expect in the future. Go to Real Estate Will Rock In 2014! by www.RISMedia.com
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Dave Harbison
Long Beach REALTOR®
Coldwell Banker Coastal Alliance
(562) 494-4600 ext 2281
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Long Beach Realtor® / Real Estate Agent
Long Beach Homes for Sale, Condos and Investment Properties
Long Beach Relocation Expert
--- Labels: Belmont Heights, Belmont Shore, Bungalow, Home Value, Housing Market, Housing Recovery, Long Beach Homes, Park Estates
# posted by Dave Harbison @ 12:39 PM
Sunday, April 1, 2012
Regular Maintenance of Your HVAC Unit Can Save $$$!
I previewed a home a couple of months ago and noticed that the Air Conditioning unit(s) looked relatively old. Upon talking with the listing agent, I was told the sellers had never maintained the unit...in 4 years! Wow, I thought, this is not good.
As it turned out the, owners had to spend a sizeable amount of money to have a new. larger air conditioning unit installed or the buyer would walk...After negotiating such a a deal, I'm sure these sellers learned an important lesson.
Maintenance can save you a lot of $$$ !!!
There are plenty of reputable HVAC companies out there that will (for a minimal fee), Many will recommend semi-annual visits in the spring and fall.
- Spring time is when the technician will clean the indoor and outdoor condenser coils, verify refrigerant charge, and inspect all the wiring
- In the fall, look for them clean and inspect the furnace blower, burners, and heat exchanger.
- The Summer and Fall months are key times to continuously brush or blow off fallen leaves and other debris from the outdoor air conditioning units and/or heating pumps
- Spring months (March-May) are the months to wash and dry filters and vacuum condenser coils on all window air conditioning units
- In summer, shut off the water supply to the furnace humidifier
- In fall, replace the humidifier wick filter, set the humidistat to 35% relative humidity, and turn on the water supply
- Make sure when you are mowing the lawn, grass does not get into the unit
- Inspect the insulation and refrigerant lines going into your home and replace them if you notice wear-n-tear, damage, or if they are missing. Doing this every 4-5 weeks will ensure peace-of-mind
- Every quarter, it is recommended to install a new one-inch pleated furnace filter to avoid hair and fibers from you, your family and/or pets
- Make sure that outdoor air conditioning units and heat pumps are on firm and level ground or pads. The ground can shift (even a little) over the course of a year and that can greatly effect efficiency and life of your unit
- Once a year, preferably in the spring, take a cup of bleach and put it down the air conditioner condensate drain. This will do a lot to prevent the buildup of mold and algae -- both of which can cause problems down the road
- To avoid undue strain on your HVAC unit, don't close the home's register more than 20%
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Dave Harbison
Long Beach REALTOR®
Main Street Realtors (562) 618-9770
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Long Beach Realtor® / Real Estate Agent
Long Beach Homes for Sale, Condos and Investment Properties
Long Beach Relocation Expert
--- Labels: Belmont Shore, Bungalow, Craftsman, Home Improvement, HVAC, Long Beach, Real Estate, remodel
# posted by Dave Harbison @ 7:46 AM
Tuesday, May 17, 2011
Attracting Birds Can Attract Buyers
 I've been intrigued at how many different aspects of a home hits home with perspebuyers. Recently, there have been several buyers that have previewed my listings and mentioned that they asked about birds. Yes Birds! I'm surprised to find out how big bird watching is. It seems to be a popular past time shared by many...And the the back yard is a great place to enjoy it. Thanks to a few landscaping techniques, you can trade your binoculars for a lawn char and enjoy bird watching from the convenience and comfort of your own home. Attracting Birds of A Feather If you want to attract local birds to your backyard, you have to make it a place that they will be drawn to. One way of doing this is by studying the feeding and/or nesting habits of the local birds that you want to attract. Birds have unique characteristics that are specific to their type and knowing what they enjoy will be your first step toward inviting them to your home. Bird Basics Birds need three basic things - food, shelter and water. By planting familiar foliage, you will be providing a protective covering for birds. Flowers, inviting nesting areas and a birdbath will provide additional comfort. Bird food, which is commonly available at just about any retail store, is often specific to certain bird types. For instance, black oil sunflower seeds will attract goldfinches and chickadees, while millet seeds are appealing to doves and sparrows. If you want to attract hummingbirds, you will need to include a sugar-water feeder in your backyard landscaping. A bird feeder, which is used to house seeds and food for your backyard birds, should be cleaned regularly. The Beautiful Bird Bath Birdbaths are a great addition to your landscape if you want native birds to feel welcome. the single feature offers birds a way to bathe and drink, which makes your backyard very inviting to visiting birds. Adding fresh water and keep it clean and free of bacteria buildup always works to provide an inviting habitat for birds.  The Birdhouse The cornerstone of attracting birds, is a birdhouse. These structures provide a safe environment and a way to feel secure. When choosing a birdhouse, consider the size of bird that you want to attract -- the size of the entrance is key. A quality birdhouse will have proper ventilation and drainage are also import. And by all means, keep the bird's nest dry and free of any water buildup. Labels: Belmont Heights, Belmont Shore, birdhouse, Birds, Buyers, Future of Real Estate, Long Beach, Park Estates, Sellers
# posted by Dave Harbison @ 6:22 AM
Friday, February 25, 2011
Mortgage Interest Deduction - Helping You and I Every Day
 I normally try to stay as far away from politics and legislation as possible. Recently however, with trillions of dollars in deficits, rising cost of living and shrinking middle class, there has been a push by some in Washington to make sweeping changes to the tax structure we Americans have become accustom too over the past few decades. Yes, we as a country need to curb our spending and become more responsible with how things are done here in the United States. As a Realtor, I am driven to protect the rights of us professionals to continue doing what we do with limited interference. I depend on our legistlators to protect me as well as my clients. As a service, our industry is very vulernable to changes the economy and economic outlook. So, in a sense, I have skin in the game when it comes to making sure all of us act responsibly and in the best interest of everyone. So, What About Mortgage Interest Deduction - Where Do I Stand? There was an article in the Washington Post recently that drove a misperception that the Mortgage Interest Deduction (MID) benefits the wealthy. My feeling is, MID primarily benefits the middle and lower income familes who earn less than $100,000. From my research, approximately 91% who claim less $200,000 are MID beneficiaries - many being younger middle-class families The MID helps families become home owners by reducing the carrying costs of owning a home. The ability to deduct interest on a mortgage can save a significant amount of taxes. Unlike the very wealthy who have a large portion of their wealth tied up in stocks and the market, most of the middle-class in America have their home as their largest investment. Millions of Americans bought their home with the understanding that mortgage interest is and always will be tax-deductable, and many of them steadily paid down their mortgages to build equity in their home. By eliminating or reducing MID, equity would be significantly decreased, home pricing would be in free-fall, one of the strongest industries in the United States would stumble and possibly crumble and the financial futures of millions of Americans would be thown into chaos. And, for people who don't have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the MID help them begin to build a future through home ownership. With all the economic pressures our middle class faces today, it is not the time to throw those that work the hardest under the bus. Labels: Belmont Heights, Belmont Shore, Long Beach, Long Beach Real Estate, Mortgage, Mortgage Interest Deduction, Naples
# posted by Dave Harbison @ 6:52 AM
Thursday, February 24, 2011
What Are Luxury Home Owners doing in Long Beach?
Living in Long Beach, CA, I am not exposed to as many grand homes as those Realtors in Beverly Hills, Newport Beach, Manhattan Beach, Santa Barbara, Rancho Palos Verdes or other select parts of Southern California. Don't get me wrong, our city has a great number of places, on the water, and inland that hold you breathless. To me, Long Beach is a hidden gem -- a secret place situated between Los Angeles and Orange County that provides a lifestyle that is a mixture of bustling east coast and laid back west coast. Naples, Belmont Shore, Park Estates, Lakewood Country Club and Virgina Country club are places that most resemble the lifestyle synonymous with what everyone perceives as California luxury. It is, but at a fraction of the cost of other areas. In the past 10 years, a great many of the homes in this area have been remodelled or totally rebuilt to reflect the changing face of expectation in luxury. After doing a little digging, I've uncovered a number observations about the upper-tier housing market in Long Beach -- that align very closely with other areas in the whole of California: - Professional Landscaping is a must
- Upgraded the kitchen. In the luxury market there is a great number of homes in Long Beach that have "Designer" kitchens
- Wine cellars are becoming more popular as available room, especially in Naples, Belmont Shore and Belmont Heights is becoming more of a premium
- Wet Bars are starting to make a come back
- In-ground swimming pools with spas have long been popular and are even making a splash in smaller lots in Belmont Heights
- Installed Security systems are the norm rather than the exception
- Surround sound systems with the latest wireless capabilities
I can only speak for myself, but luxury in Long Beach is more than design. Add taste, style, convenience, flowing floorplans and timeless individuality and what you see will be incredible. Any chance you get to view a home that peaks your interest. Do it! --- 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, Dave, Long Beach Real Estate, Luxury Homes, Naples, Park Estates, Real Estate, Realtor, Virginia Country Club
# posted by Dave Harbison @ 10:02 AM
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 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
Wednesday, March 17, 2010
 Everyone I've talked too knows that finishing an attic, upgrading a bathroom, remodeling a kitchen or re-landscaping your yard can increase the value of your home. But very few know the ins and outs of capital improvements when it comes to lowering your tax bill when you sell their home.
As it stands now, rules will let you add capital improvement expenses to the cost basis of your home. Simply put, costs associated with improvements (whatever they may be) lowers total profit. Or as the IRS puts it, taxable income.
The best thing to do is to get in touch with your accountant and Realtor prior to putting your home on the market and have a firm strategy for netting the most profit (and paying the fewest taxes) as possible.
Here's a link to an article that sheds even more light on the tax saving opportunities that improving your home may provide when you decide to sell: http://bit.ly/9ohY3p Labels: Belmont Heights, Belmont Shore, California, capital gains, home improvements, Long Beach, Real Estate
# posted by Dave Harbison @ 3:46 PM
Saturday, July 18, 2009
5 Quick Tips -- Get Ready to Sell Your Home!
 When the time comes to sell your home, prioritizing projects to get top dollar will undoubtedly help drive the net amount of money you will pocket at the close of escrow . There are a number of important things to consider. I'd like to focus on 5 important aspects of selling your house. More can be found in a great Seller's Guide to selling your home. If these five tips interest you, give me an e-mail and I'll mail you one.
- Curb Appeal - This is often overlooked by the seller when they first consider selling their home. Yet it's so important. Your front yard, afterall, is where buyers form their first and strongest opinions. Make sure your home, from the street, is immaculate, clean, well cared for and inviting. It will bring more buyers that are serious about making an offer on your home.
- Don't Lose Sight of the Minor Details - Buyers in this market are (and can be) picky. Make sure to walk through your home and see that even the smallest of things (i.e. electrical covers, chipped paint, worn varnish, brass plates, etc) are in tip-top shape. Give buyers fewer reasons not to fall in love with your home.
- Clean, Clean, Clean - Understand that you are trying to sell your home for TOP DOLLAR. In order to do this, you need to make sure that your home is clean, there is no dust, all the floors shine, the kids rooms are immaculate and the walk way to your front door is clear of any leaves, weeds and cut grass. You'd be surprised how many homes lose buyers because they don't tidy up on a daily or weekly basis.
- Paint - This is probably one of the least expensive ways to breathe new life into your home. A fresh coat of paint, preferably in a neutral color, allows buyers to visualize how they would change the room and make it their own without creating opportunity for them to put a negative check mark next to the room because of the paint color. And, be very wary of "the wall paper syndrome". If it's there, it probably shouldn't be. Wall paper in this marketplace is not the most desirable attributes for buyers.
- Be Realistic - Over-improving may sound like the right thing to do, especially when you talk to buyers, but it can negatively effect your net proceeds. Take the time to talk with your realtor and discuss what improvements should be done, and what shouldn't. Be mindful of costs and return on investment. In a buyer's market, you will see buyers expecting more for much less.
Small improvements can provide a wealth of value to your bottom line. The right approach to planning your sale can make a huge difference. Labels: Belmont Heights, Belmont Shore, California, Homes for Sale, Long Beach, Park Estates, Real Estate, Selling
# posted by Dave Harbison @ 9:46 PM
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