Simple Solutions for Earthquake Preparedness

My fellow Californians and I experienced a rude awakening early Sunday morning has a 6.0 earthquake hit the Vallejo/Napa area, causing significant damage and many injuries.

 It is so important to be prepared for natural disasters. Here in the Bay Area, earthquakes are the globe's disaster of choice. There are several things we can do in our homes to help make the unknown a little bit safer.

- Bolt and brace water heaters and gas appliances to wall studs.
- Bolt large furniture such as bookcases to wall studs.
- Hang heavy items, such as mirrors or pictures, away from beds, cribs, and sitting areas.
- Learn how to shut off the gas valve in your home.
- Know where the flashlights are and ensure batteries are fresh.
- Prepare an emergency-supplies kit and store in an easily accessible area.
- If you live in a multi-family residence, be aware of your building's emergency exits and evacuation plans. (But do not exit the building while the earth is still shaking!)
- If you're leaving town for more than a day, turn off your water.

Also check out How to Earthquake Proof Your House for tips on inspecting your home's potential earthquake integrity, such as checking the walls and foundation.

Keeping Your Home Safe While You're Away

Preparing for vacation is more than booking a flight. When it comes to keeping your home safe, think about the whole picture, like the landscaping and mail. Small actions can provide ample security.

Hiring a house sitter: Safest route. The cost may be greater to pay a friend or relative to take over the responsibilities of your home while you’re off gallivanting, but it is certainly more secure. Plus, you get to skip all of the other tedious steps and move right along to vacation mode and no plants or animals go uncared for.

Mail and newspaper: Don’t let your letters be tampered with or stolen while you’re gone! USPS offers the service of putting your mail delivery on hold for three days to a month. Either call your local post office or check to see if you can submit the request online in your area.

  

It’s pretty easy to tell no one is home if there’s a pile of soggy newspapers out on the front lawn. If you still get your news the old-fashioned way, cancel your paper service while you’re gone. And if not, are you in a neighborhood where people leave fliers on your door? Ask a friend to swing by from time to time to pick up yellow page books or ads dropped on your door.

Lights, mower, action!: A vulnerable home is an empty home, so put on a show while you’re away. Invest in some light timers to help give the illusion of occupancy. See if you can arrange a neighbor to take your trash cans to the road along with his own. Hire someone to do landscaping, even if it’s as minimal as the kid down the road that mows lawns for his xbox fund.

Discretion: We all know you’ll be posting pictures of your vacation, but take a moment to reflect about how broad an audience you want knowing you aren’t around to protect your home. You might want to edit your privacy settings a tad before you go advertising your absence.

In home: Lock stuff, but more thoroughly than you usually would. To avoid other more “natural” fiascos like flooding or fire and to be efficient, turn off water, gas, and breakers. If these interfere with your timed lights, refrigerator, and your watering system for your yard, consider investing in a bypass valve for your irrigation and label breakers so you know which ones to leave on. Unplug all your unnecessary appliances and electronics, and since you won’t be around to appreciate the bought air anyways, adjust the thermostat or turn it off altogether.

For more information, check out these resources:

http://home.howstuffworks.com/home-improvement/home-diy/safety/10-tips-for-keeping-house-safe-while-on-vacation.htm

http://www.oprah.com/home/Home-Security-Tips-for-Vacation-Season-Tom-Kraeutler

How to Short Sale Your Home to Prevent Foreclosure

Struggling to make house payments? If you are underwater on your mortgage and unable to refinance for a more affordable house payment, you may consider a short sale. The name, “short sale” is not named for the length of time it takes to complete, but refers to selling short, or selling your home for less than you owe with your bank taking a loss on the difference.

Not everyone can or should short sell a property. First, you will need to qualify for hardship. For many people short selling a house, the catalyst is a loss of wages due to serious illness, long term change in employment, divorce, death of a mortgagee etc. In other words, you can no longer afford your mortgage payment and don’t see a long term solution.

The first step towards a successful short sale is finding a Realtor who is familiar with short sales, your lien holder, and their rules for completing a short sale. The next step is proving hardship. This requires revealing a detailed financially history including bank statements, tax returns and pay stubs, proving an inability to make regular mortgage payments.

Your Realtor will put your house on the market, and the lien holder will get a Broker’s Price Opinion from a skilled Realtor unassociated with the sale to have a third party market valuation. After an acceptable offer has been made by a buyer, the bank with either approve or deny the short sale. If approved, the sale moves into escrow and should be complete in about 30 days.

What does selling short cost you? If the property you are selling short is your second home, you may be responsible to pay taxes on the difference between the new buyer’s purchase price and your loan payoff amount. Also, your credit score will not only be negatively affected, but you will not be considered for a new home loan for a minimum of four years after the short sale is complete. However, the lien holder will pay both Realtors’ commissions and taxes associated with the sale. In some cases, the lien holder will also compensate the seller for predicted moving expenses.

How Patience Can Land You the Best Deal In Town

Kicking yourself for not getting into the market when it was at its lowest? There are still deals to be found in real estate, without having to buy a fixer in need of major renovations or compromising on location. Short sales are where to turn to find properties available at less than market value. The catch is patience. The ironically named “Short Sale” can take significantly longer to close than a traditional 30 to 45 day sale. Even with laws in place regulating how long it can take for banks to process a short sale, some sales still take years and some never close at all.

The real risk for the home buyer is the loss of opportunity. The traditional escrow period for the buyer to inspect and appraise the property does not start until the lien holder approves the sale. A lot of potential dream homes can come and go while the buyer is just waiting for that very important letter to arrive. However, patience can pay off in a rising market when all those other potentially great properties start selling at higher and higher prices, and the sale is finally approved at the original offer price, made when the market was down.

One other factor that dissuades buyers from considering a short sale is the idea that they are somehow taking advantage of a seller when they are down and out. In most cases, the buyer is actually doing the seller a great service by agreeing to purchase a distressed property. The seller must prove hardship to qualify for a short sale, so most often, the alternative the seller is facing is foreclosure.

Keep in mind, the seller is not permitted to make or pay for repairs on the property and the lien holder won’t pay for them either. If the buyer’s loan requires a repair before the close of escrow, they may be paying for a repair on a property they don’t own yet.

Escrow Has Closed! Now What?

The close of escrow is always an exciting time for buyers and sellers. Those 15-45 days of negotiations and inspections have finally settled and it's time for each party to move on to their next life chapter. Here is a quick list of some things to remember after closing.

Sellers

- Leave the appropriate items in the house, including appliance owner's manuals/warranties, keys, and garage door opener(s). Also leave any pertinent contact information for the HOA or condo board.

- Discontinue any old services such as utilities, alarm, cable, and Internet.

- Keep your records close by for tax season. Your new capital gain will yield a hefty tax but you can sometimes counterbalance it with write-offs such as home improvements.

Buyers

- Change the locks and keys for your doors. Think of all the folks who have had access to those keys over the past month and how many copies are potentially still floating around. It's a quick and easy solution for your family's safety and peace of mind.

- Contact utilities, alarm company, and other providers such as cable and Internet to begin your services.

- Have easy access to your home warranty coverage and contact information. Don't let a small fix turn into a big problem--if anything goes awry, contact your home warranty to have it fixed right away.


And of course, always remember to change your address with the post office and other service providers. Congratulations on your new life chapter!

5 Home Buyer Myths Debunked

Buying or selling a home is a skill that takes practice and research, just like any other. If it’s been several years since you bought or sold a home, the market, laws, and standard procedures have likely changed. The fact that you’ve landed on this page demonstrates that you already have what it takes to become an informed buyer or seller.

I don’t recommend buyers and sellers do all the work themselves–that’s what agents are for, after all! But it’s vital to educate oneself a bit before diving into such a complex transaction. Any good real estate agent will review this information with you at the beginning of your relationship.

Myth 1: I can just walk into an open house and get the information I need from the listing agent.
Truth: Listing agents are fantastic resources–for the sellers. If you’re already working with an agent and you walk into an open house solo, the agent there is going to assume you’re “unattached”. This can send the wrong message to both parties. Just send your current agent a message that you’d like to see the home in question and they’ll arrange a viewing.

Myth 2: Seeing homes out of my price range is always a bad idea.
Truth: It’s wise to stick to your budget and not torment yourself with expensive homes, but there is always an exception. Some sellers mistakenly price their homes too high, thinking they will just negotiate down to true market value. This causes the home to be on the market for too long and miss out on buyers who would otherwise be interested. Ask your agent to keep an eye out for homes like these–he or she will be able to see the clues before setting foot on the property (hint: one indication is the number of days it’s been on the market).

 Myth 3: I can borrow money from a relative to help with the down payment.
Truth: Yes, you can do that. However, a lender is going to find out if any of your income is borrowed since it’s common for them to request two months of bank statements–and they will certainly notice an oddly large non-payroll deposit. This will be calculated in your debt-to-income ratio. So for those looking to buy a home below their means, it could be a great tactic. For those seeking a home right at the top of their monthly budget, it could backfire.

Myth 4: The best offer will be the highest offer.
Truth: There is more for a seller to consider than just the offer price. The seller’s ultimate goal is to get a fair price for their home with as little hassle or delay as possible. A home loan or cash offer that isn’t contingent on an audit or inspection clearance means smoother sailing during escrow. A home loan with a high percent down will more likely be approved than one with very little down.

Myth 5: All real estate agents offer the same breadth of services.
Truth: Almost all agents offer basic, must-have services for their clients, but not all agents go above and beyond. A great seller’s agent won’t hesitate to water your lawn to perk it up before an open house. A fantastic buyer’s agent will meet with your contractor so he can take measurements before you have keys to the new house. Any agent worth their salt will know the local area incredibly well and can offer you invaluable insights. 

Opportunity for FREE Information on Buying or Listing a Home

Real estate agents wear many hats, one of which is Educator. We constantly inform and advise clients. But we also reach out to everyone else, sharing knowledge on market trends and industry tips. The better educated the public is about real estate, the smoother a home purchase transaction is when it’s time to buy or sell.

If you’re starting to think about buying or selling a home, give yourself a huge head start by registering for free information.

You’d be surprised at the breadth of material we send out–from overcoming fear to mortgage reduction.