Friday, September 18, 2009
Monday, March 23, 2009
Monday, September 22, 2008
San Fernando Valley Golf
One of the best ways to enjoy where you live is by using the local public recreational facilities. The "The San Fernando Valley" located N/W of Los Angeles has great weather all year long, which allows for playing outside at least 340 days a year. The area had a semi-desert climate and terrain until William Mulholland brought water to the Valley in 1913. With available water the land became much more valuable, and the transformation to a suburban neighborhood was inevitable. We use the freeway system to quickly go to any destination that meets our needs. I am passionate about golf, therefore I will write about the public golf courses that I know intimately. I'm including courses that are within a 50 mile radius of the intersection of Burbank and Sepulveda Blvds.
The Los Angeles City Recreation and Parks Department operates many of the courses in the valley. use this link to view the courses, their fees, and even select available tee times. If you want to see where other public courses are open the "San Fernando Valley" link and select an icon the matches where you want to play golf. The following is my own editorial opinion of the best of the public courses. Wilson and Harding, located in the Griffith Park area, Rancho in West Los Angeles area and Brookside in Pasadena are great public courses. Tee times are limited and hard to get but well worth the effort. I consider all the courses to be a good value versus the fees they charge. All the courses offer regular, weekend, twi-light and super twi-light fees. The courses are heavily used, and mostly well cared for. Enjoy yourself and let me know how you like golf in the San Fernando Valley.
Monday, August 13, 2007
10 'must-do' steps to sell your home this year
It is my opinion that the three top reasons that make your home worth it's market value are Location, Quality, and Condition.
You can't change it's location unless you buy another lot and then transport your home to it's new site. So we are severely limited to increase our homes value in regard to the location part of the equation.
You can change the quality of our home by upgrading and remodeling, by installing high end or higher than average appliances or floor coverings or lush landscaping. Money begets money. We can increase the value by as much as we want to invest in these upgrades. In Southern California the return on dollars spent for most remodeling will return at least as much as was invested. If the remodel stands head and shoulders over anything else in the neighborhood then a higher return on the invested money can be expected. I am a firm believer that 90% of everything is crap. If you don't plan and use your remodeling budget well, you will look like everyone else's bad job. On a limited budget if you scatter your monies on too many jobs you will have wasted you efforts. It will look like that 90%. If you have limited funds, only do one thing, but do it well.
The alternative to remodeling and upgrading and spending a lot of money is to polish that apple as best you can and get the best opinions you can about what your home will sell for. And then place it on the market at that price. Your home is only worth what someone will pay for it.
The condition of home is also a huge factor is determining your homes value. You can't really change the home's location and you may not be able to afford remodeling or expensive upgrades. You can make your home shine just by improving everything about your home that screams "fix me". Deferred maintenance lowers your homes value more than upgrades or remodeling would improve it's value. Buyers want to be able to move into their purchase and just start living. They don't want to move in and then start fixing everything bent, peeling and broken. The today's buyers are very sophisticated. They have search on the Internet, they have looked at pictures of homes that don't need fixing. They see those prices and then they see your home and start discounting your price. Start now, start fixing. Then put your home on the market and reap the financial rewards of your sweat equity.
Here are the 10 things that I would do to make my home sell for more money in this market.
1. Your home is the largest source of money that most of us will ever consider selling or buying. Treat the sale or purchase as if it were a business. Develop a business model or plan for the sale or purchase in a step by step manner. Your business plan should start with a list of "how do". How do I know whether the housing market is a buyer or seller dominated situation. How can I figure out how much my home is worth. How can I determine for how much i can sell it. How do I sell it? Who will sell it? To whom can I sell it? Are there costs involved in selling or buying? Are there taxes to be paid? Do I have to obtain (net) a certain amount from the sale in order to buy another home? The list is as long as you can add more questions to it. My advice is to create a list of everything that concerns you and then start posing those questions to as many persons as you can. Try to ask more qualified people than non qualified. Friends and family are great to talk to, however you don't want to rely on anecdotes and second hand expertise when you money is involved. Include them in the discussions, however never rely on one person's advice or opinion. Talk to many professionals, write done all your research and then follow your gut felling.
2. Have your home inspected. Right away, don't delay. If you plan on selling you must know the costs of selling. Your net proceeds ( the check you will receive when escrow closes) is the most important item you need to know when deciding to sell. If you can't afford to sell and buy somewhere else then why are you selling? If you need to find a home inspector who works your area, log on to http://www.nahi.org/public/92.cfm?sd=47. There is a long list of qualified home inspectors. If you don't feel comfortable calling,and you have a realtor, have he/she make the call. Inspection fees vary according to the size of your home. A reasonable estimate of a 1500 square foot home is $350 to $450. This fee is money well spent. By knowing about all the items that need to be repaired before you sell, you will be able to price your home accordingly. If you have to net a certain amount, then adding the cost of repairs to your asking price prior to placing your home on the market, will help you to net the amount you need. Don't get stung by the repair bills after you have accepted an offer from a buyer, negotiating after the fact is much more difficult. Know all the answers first, then sell.
3. "Victorious Warriors win first and then go to war. While defeated warriors go to war first and then seek to win". This philosophy of war ( your business model) was written in 400 B.C. by Sun Tzu, a great general in China. Know your enemy first so that you know how to defeat him. This applies to how you will sell your home. You need to shape up before you market. You have had your home inspection and now you will be adding to that list of repairs the extra things that will make your home more appealing than any other home in your area. It is a mistake that will cost you money to think that you can lower the asking price to compensate for the issues that make your home less desirable. You may never have the opportunity to negotiate if your home is not desirable to all those buyers who drive up to your address and then keep on going. Opportunity lost, it will not be regained. Paint, paint it all or freshen areas that need it. Clean the entry way, wash the windows, replace that burnt out front porch light, ask a neighbor how they would freshen up the entry to your home. Improve the landscaping that will attract not repel the potential buyers. Mulch the flower beds, plant flowers, edge the lawn and add fertilizer to help green it up. These ideas are all about keeping money in your pocket. No effort, no money.
4. Do you want to use a real estate agent or do you want to sell it yourself. I am a realtor, and I know that I can net you more money at the close of escrow. If you want to sell it yourself, your business plan should have a certain time limit that ends your efforts to sell and then begins using a realtor to sell you home. Selling your home will save you the commission paid to the Realtors. However there are statistics that indicate that "For Sale By Owners" sell for 16% less nationally, than homes sold with the expertise of a realtor. You saved the commission but your net was drastically lower than you would have realised by using a Realtor. In a buyer's market I would be educating my buyers about how to structure their bid to acquire your home. In a buyer's market, the first thing I say to my client is offer less than the asking price. I would also tell them that the commission that the "FSBO" seller is trying to save should immediately be subtracted from the asking price. Buyers you should bid lower and wait for a response.
5. As part of your plan to sell your home, it should include some relocation help. You may be moving down the street or across the country. The company you work for may offer help with the move, if you are being relocated within the company. Most large real estate companies also have affiliated relationships with relocation companies. These are companies that can assist with the actual move and help with all the details associated with your move. I work for Coldwell Banker and they are associated with the largest relocation company in the world.
6. If you are going to use a Realtor to market and sell your home, then interview as many as required until you find one that you feel you can trust and that you have confidence in their professional abilities. You must ask questions about how they will market your home and what would they change to make it sell for more. Ask everyone you know for questions to ask. If the realtor you are talking to can't answer to your satisfaction then don't hire them.
7. You must set the price before you place your home on the market. If you are selling it yourself or will be using a Realtor, this is the most important step in the whole business plan. Price it wrong and you will continue to own your home. Price it well and you may obtain multiple offers and receive more than you asked. By not using a Realtor a seller must find out about pricing from sources that may not be timely or correct. A seller can look in the paper and see the asking prices of homes similar to theirs. They can look at Zillow.com and Realtor.com to estimate pricing. The main argument against using these information sources is the accuracy of the figures and how timely are the numbers. This is your home, do you want the most accurate information concerning sales figures and the state of the market? Use a Realtor if you want to see the information about the latest sales. Have a Realtor show you the comparable sales of homes in your area. Use a Realtor to show you open houses and then compare to yours. Realtors have access to pictures of the homes that have sold or are in an escrow. You may not be able to personally go into these homes. Pictures are a way to make comparisons to your home. Ask a Realtor about how to place your home in the best position price wise versus your competition in the area. You need to know the state of the market to properly price your home. In a sellers market the price can be a little high in order to test what buyers will pay. In a buyers market if the price is wrong then you won't even have people looking at your home. If you price Talk to a Realtor about how soon you need to move or your personal motivation in moving. These details will influence how you price your home and how soon you can expect to sell it. Remember this saying about the price. "Buyers will come and see your home and make offers. Buyers will come and see your home and do nothing. Buyers will not come to see your home." These scenarios are all predicated on how well you priced your home. Are you confident in pricing your home without professional help?
8. How has the Internet influenced the pricing of homes. Presently over 75% of home buyers start their search for a home on the Internet. Ten years ago that number was 15%. Text can describe your home well. However with pictures you can make your home stand out versus the competition. The use of photos also is related to our previous step of preparing your home before you place it on the market. Buyers pre-select homes to view by their appearance on the web. A home that is listed on the web with no pictures will not get a viewing. If your home has a bad appearance with pictures then they will look and go on to another home. Your home must look good in person and must look good on the Internet. This opportunity for marketing your home is huge. Technology can be used to your advantage. Hire a Realtor who has the ability to market your home on the Internet. If you don't then the number of potential buyers is greatly diminished. The more people who see your home the more money you will eventually net. Selling real estate is a numbers game. Show the home to as many as you can and you will sell it for the most money.
9. One person's junk is another person' treasure. This may be true in a garage sale but when it's piled high in the front and back yard then it's another reason for a potential buyer to speed up when they approach your home. You are not going to take the junk with you when you move, so get rid of it now. Sell it if you can, but get rid of it. It's junk because you could not even use it. A buyer is figuring in his head the cost of removing it. That cost will be figured into the offering bid, a lower price. Would you stop the car and scream, "Look at that yard filled with crap, let's stop Honey!"
10. The longer your home stays on the market the greater the need to determine if the market is changing. A buyers market and become a sellers market without any media fanfare. Use an agent who will always keep you informed about the facts. This will make your decision easier in your business plan.
You can't change it's location unless you buy another lot and then transport your home to it's new site. So we are severely limited to increase our homes value in regard to the location part of the equation.
You can change the quality of our home by upgrading and remodeling, by installing high end or higher than average appliances or floor coverings or lush landscaping. Money begets money. We can increase the value by as much as we want to invest in these upgrades. In Southern California the return on dollars spent for most remodeling will return at least as much as was invested. If the remodel stands head and shoulders over anything else in the neighborhood then a higher return on the invested money can be expected. I am a firm believer that 90% of everything is crap. If you don't plan and use your remodeling budget well, you will look like everyone else's bad job. On a limited budget if you scatter your monies on too many jobs you will have wasted you efforts. It will look like that 90%. If you have limited funds, only do one thing, but do it well.
The alternative to remodeling and upgrading and spending a lot of money is to polish that apple as best you can and get the best opinions you can about what your home will sell for. And then place it on the market at that price. Your home is only worth what someone will pay for it.
The condition of home is also a huge factor is determining your homes value. You can't really change the home's location and you may not be able to afford remodeling or expensive upgrades. You can make your home shine just by improving everything about your home that screams "fix me". Deferred maintenance lowers your homes value more than upgrades or remodeling would improve it's value. Buyers want to be able to move into their purchase and just start living. They don't want to move in and then start fixing everything bent, peeling and broken. The today's buyers are very sophisticated. They have search on the Internet, they have looked at pictures of homes that don't need fixing. They see those prices and then they see your home and start discounting your price. Start now, start fixing. Then put your home on the market and reap the financial rewards of your sweat equity.
Here are the 10 things that I would do to make my home sell for more money in this market.
1. Your home is the largest source of money that most of us will ever consider selling or buying. Treat the sale or purchase as if it were a business. Develop a business model or plan for the sale or purchase in a step by step manner. Your business plan should start with a list of "how do". How do I know whether the housing market is a buyer or seller dominated situation. How can I figure out how much my home is worth. How can I determine for how much i can sell it. How do I sell it? Who will sell it? To whom can I sell it? Are there costs involved in selling or buying? Are there taxes to be paid? Do I have to obtain (net) a certain amount from the sale in order to buy another home? The list is as long as you can add more questions to it. My advice is to create a list of everything that concerns you and then start posing those questions to as many persons as you can. Try to ask more qualified people than non qualified. Friends and family are great to talk to, however you don't want to rely on anecdotes and second hand expertise when you money is involved. Include them in the discussions, however never rely on one person's advice or opinion. Talk to many professionals, write done all your research and then follow your gut felling.
2. Have your home inspected. Right away, don't delay. If you plan on selling you must know the costs of selling. Your net proceeds ( the check you will receive when escrow closes) is the most important item you need to know when deciding to sell. If you can't afford to sell and buy somewhere else then why are you selling? If you need to find a home inspector who works your area, log on to http://www.nahi.org/public/92.cfm?sd=47. There is a long list of qualified home inspectors. If you don't feel comfortable calling,and you have a realtor, have he/she make the call. Inspection fees vary according to the size of your home. A reasonable estimate of a 1500 square foot home is $350 to $450. This fee is money well spent. By knowing about all the items that need to be repaired before you sell, you will be able to price your home accordingly. If you have to net a certain amount, then adding the cost of repairs to your asking price prior to placing your home on the market, will help you to net the amount you need. Don't get stung by the repair bills after you have accepted an offer from a buyer, negotiating after the fact is much more difficult. Know all the answers first, then sell.
3. "Victorious Warriors win first and then go to war. While defeated warriors go to war first and then seek to win". This philosophy of war ( your business model) was written in 400 B.C. by Sun Tzu, a great general in China. Know your enemy first so that you know how to defeat him. This applies to how you will sell your home. You need to shape up before you market. You have had your home inspection and now you will be adding to that list of repairs the extra things that will make your home more appealing than any other home in your area. It is a mistake that will cost you money to think that you can lower the asking price to compensate for the issues that make your home less desirable. You may never have the opportunity to negotiate if your home is not desirable to all those buyers who drive up to your address and then keep on going. Opportunity lost, it will not be regained. Paint, paint it all or freshen areas that need it. Clean the entry way, wash the windows, replace that burnt out front porch light, ask a neighbor how they would freshen up the entry to your home. Improve the landscaping that will attract not repel the potential buyers. Mulch the flower beds, plant flowers, edge the lawn and add fertilizer to help green it up. These ideas are all about keeping money in your pocket. No effort, no money.
4. Do you want to use a real estate agent or do you want to sell it yourself. I am a realtor, and I know that I can net you more money at the close of escrow. If you want to sell it yourself, your business plan should have a certain time limit that ends your efforts to sell and then begins using a realtor to sell you home. Selling your home will save you the commission paid to the Realtors. However there are statistics that indicate that "For Sale By Owners" sell for 16% less nationally, than homes sold with the expertise of a realtor. You saved the commission but your net was drastically lower than you would have realised by using a Realtor. In a buyer's market I would be educating my buyers about how to structure their bid to acquire your home. In a buyer's market, the first thing I say to my client is offer less than the asking price. I would also tell them that the commission that the "FSBO" seller is trying to save should immediately be subtracted from the asking price. Buyers you should bid lower and wait for a response.
5. As part of your plan to sell your home, it should include some relocation help. You may be moving down the street or across the country. The company you work for may offer help with the move, if you are being relocated within the company. Most large real estate companies also have affiliated relationships with relocation companies. These are companies that can assist with the actual move and help with all the details associated with your move. I work for Coldwell Banker and they are associated with the largest relocation company in the world.
6. If you are going to use a Realtor to market and sell your home, then interview as many as required until you find one that you feel you can trust and that you have confidence in their professional abilities. You must ask questions about how they will market your home and what would they change to make it sell for more. Ask everyone you know for questions to ask. If the realtor you are talking to can't answer to your satisfaction then don't hire them.
7. You must set the price before you place your home on the market. If you are selling it yourself or will be using a Realtor, this is the most important step in the whole business plan. Price it wrong and you will continue to own your home. Price it well and you may obtain multiple offers and receive more than you asked. By not using a Realtor a seller must find out about pricing from sources that may not be timely or correct. A seller can look in the paper and see the asking prices of homes similar to theirs. They can look at Zillow.com and Realtor.com to estimate pricing. The main argument against using these information sources is the accuracy of the figures and how timely are the numbers. This is your home, do you want the most accurate information concerning sales figures and the state of the market? Use a Realtor if you want to see the information about the latest sales. Have a Realtor show you the comparable sales of homes in your area. Use a Realtor to show you open houses and then compare to yours. Realtors have access to pictures of the homes that have sold or are in an escrow. You may not be able to personally go into these homes. Pictures are a way to make comparisons to your home. Ask a Realtor about how to place your home in the best position price wise versus your competition in the area. You need to know the state of the market to properly price your home. In a sellers market the price can be a little high in order to test what buyers will pay. In a buyers market if the price is wrong then you won't even have people looking at your home. If you price Talk to a Realtor about how soon you need to move or your personal motivation in moving. These details will influence how you price your home and how soon you can expect to sell it. Remember this saying about the price. "Buyers will come and see your home and make offers. Buyers will come and see your home and do nothing. Buyers will not come to see your home." These scenarios are all predicated on how well you priced your home. Are you confident in pricing your home without professional help?
8. How has the Internet influenced the pricing of homes. Presently over 75% of home buyers start their search for a home on the Internet. Ten years ago that number was 15%. Text can describe your home well. However with pictures you can make your home stand out versus the competition. The use of photos also is related to our previous step of preparing your home before you place it on the market. Buyers pre-select homes to view by their appearance on the web. A home that is listed on the web with no pictures will not get a viewing. If your home has a bad appearance with pictures then they will look and go on to another home. Your home must look good in person and must look good on the Internet. This opportunity for marketing your home is huge. Technology can be used to your advantage. Hire a Realtor who has the ability to market your home on the Internet. If you don't then the number of potential buyers is greatly diminished. The more people who see your home the more money you will eventually net. Selling real estate is a numbers game. Show the home to as many as you can and you will sell it for the most money.
9. One person's junk is another person' treasure. This may be true in a garage sale but when it's piled high in the front and back yard then it's another reason for a potential buyer to speed up when they approach your home. You are not going to take the junk with you when you move, so get rid of it now. Sell it if you can, but get rid of it. It's junk because you could not even use it. A buyer is figuring in his head the cost of removing it. That cost will be figured into the offering bid, a lower price. Would you stop the car and scream, "Look at that yard filled with crap, let's stop Honey!"
10. The longer your home stays on the market the greater the need to determine if the market is changing. A buyers market and become a sellers market without any media fanfare. Use an agent who will always keep you informed about the facts. This will make your decision easier in your business plan.
Transferring title to a child or grandchild
I am not an advocate of transferring title of your real estate to your children or grandchildren, prior to your passing. Too many negative scenarios can and do occur. The intention to help your child or grandchild obtain property by transfer is noble and well meaning, however the initial intent could be altered by circumstances which are beyond your control. A post about the good, the bad, and the ugly of transferring title is forthcoming.
Having stated the above, if the need and desire to transfer title still exists then the intent of this post it to give you the method and procedure to transfer title to your children and/or grandchildren in a way that allows them to take title and keep your tax base.
In the county of Los Angeles, there is a reassessment exclusion for real estate transfer, between parent and child and from grandparent to grandchild.
Those exclusion are defined by constitutional initiatives Propositions 58 & 193.
Prop 58 allows for transfer of real property between parent to child and from child to parent, without an automatic reassessment.
Prop 193 allows for transfer of real property between grandparent(s) to grandchild(ren).
If you adhere to the requirements and guidelines of Prop 58 and 193 a beneficial transfer is possible.
The following requirements and guidelines were obtained from the Los Angeles County Assessor's office.
1. The principal place of residence must have been granted a Homeowners' Exemption or Disabled Veterans' Exemption before the transfer. This residence need not be the new principal residence of the person that acquired the property.
2. No limit is placed on the assessed value of a principal residence that may be excluded from reassessment.
3. In addition to tax relief on the principal residence, you may claim an exclusion on transfers of other real property with an assessed value of up to $1,000,000.
4. The $1,000,000 exclusion applies separately to each eligible transferor. A $2,000,000 limit applies to community real property of an eligible married couple.
5. Transfers by sale, gift, or inheritance qualify for the exclusion.
6. Transfers between parents and children as individuals, from grandparents to grandchildren as individuals, between joint tenants, from trusts to individuals, or from individuals to trusts may qualify for the exclusion.
Transfers from grandchildren to grandparents are not eligible for this tax relief.
7. Transfers of ownership interests in legal entities, aside from most trusts, do not qualify for the exclusion.
8. A claim must be filed within 3 years after the date of purchase or transfer for which the claim is filed or prior to transfer to a third party, whichever is earlier, or within 6 months after the mailing of the notice of supplemental or escape assessment, issued as a result to the transfer for which the claim is filed. Untimely filed claims are subject to certain conditions, i.e., the property must not have transferred or resold to a third party and the claim will only apply to future tax years.
9. If reassessment of your property occurs before the approval and processing of your timely filed claim, the reassessment may be reversed. In these situations, a corrected tax bill and/or a refund will be processed.
Proposition 58 Transfer between Parent and Child Eligibility Requirements:
1. The real property must be owned by the eligible transferor who is either the parent or child.
2. You must be a parent or child. A child may be a son, daughter, son-in-law, daughter-in-law, stepchild, or child adopted before the age of 18.
Spouses of eligible children are also eligible until divorce or , if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law.
3. You must complete a Claim for Reassessment Exclusion for Transfer between Parent and Child form for a gift or purchase of real property between parent and child.
Proposition 193 Transfer from Grandparent to Grandchild Eligibility Requirements:
1. The real property must be owned by the eligible transferor who is the grandparent.
2. You must be a grandchild whose parent(s) qualify as the deceased child(ren) of the grandparents as of the date of transfer, and you must be the decedent's child.
3. You must complete a Claim for Reassessment Exclusion for Transferor from Grandparent to Grandchild form for a gift or purchase of real property from grandparent to grandchild.
How do I file?
http://assessor.lacounty.gov
helpdesk@assessor.lacounty.gov
213-893-1239
What forms do I need?
Transfer between Parent and Child. (OWN-88)
Transfer between Grandparent and Grandchild (OWN-143)
For expanded definitions of Prop. 58 & 193, see Revenue and Taxation (R & T) Code Section 63.1. It is available online at www.boetaxes.ca.gov/propery
Having stated the above, if the need and desire to transfer title still exists then the intent of this post it to give you the method and procedure to transfer title to your children and/or grandchildren in a way that allows them to take title and keep your tax base.
In the county of Los Angeles, there is a reassessment exclusion for real estate transfer, between parent and child and from grandparent to grandchild.
Those exclusion are defined by constitutional initiatives Propositions 58 & 193.
Prop 58 allows for transfer of real property between parent to child and from child to parent, without an automatic reassessment.
Prop 193 allows for transfer of real property between grandparent(s) to grandchild(ren).
If you adhere to the requirements and guidelines of Prop 58 and 193 a beneficial transfer is possible.
The following requirements and guidelines were obtained from the Los Angeles County Assessor's office.
1. The principal place of residence must have been granted a Homeowners' Exemption or Disabled Veterans' Exemption before the transfer. This residence need not be the new principal residence of the person that acquired the property.
2. No limit is placed on the assessed value of a principal residence that may be excluded from reassessment.
3. In addition to tax relief on the principal residence, you may claim an exclusion on transfers of other real property with an assessed value of up to $1,000,000.
4. The $1,000,000 exclusion applies separately to each eligible transferor. A $2,000,000 limit applies to community real property of an eligible married couple.
5. Transfers by sale, gift, or inheritance qualify for the exclusion.
6. Transfers between parents and children as individuals, from grandparents to grandchildren as individuals, between joint tenants, from trusts to individuals, or from individuals to trusts may qualify for the exclusion.
Transfers from grandchildren to grandparents are not eligible for this tax relief.
7. Transfers of ownership interests in legal entities, aside from most trusts, do not qualify for the exclusion.
8. A claim must be filed within 3 years after the date of purchase or transfer for which the claim is filed or prior to transfer to a third party, whichever is earlier, or within 6 months after the mailing of the notice of supplemental or escape assessment, issued as a result to the transfer for which the claim is filed. Untimely filed claims are subject to certain conditions, i.e., the property must not have transferred or resold to a third party and the claim will only apply to future tax years.
9. If reassessment of your property occurs before the approval and processing of your timely filed claim, the reassessment may be reversed. In these situations, a corrected tax bill and/or a refund will be processed.
Proposition 58 Transfer between Parent and Child Eligibility Requirements:
1. The real property must be owned by the eligible transferor who is either the parent or child.
2. You must be a parent or child. A child may be a son, daughter, son-in-law, daughter-in-law, stepchild, or child adopted before the age of 18.
Spouses of eligible children are also eligible until divorce or , if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law.
3. You must complete a Claim for Reassessment Exclusion for Transfer between Parent and Child form for a gift or purchase of real property between parent and child.
Proposition 193 Transfer from Grandparent to Grandchild Eligibility Requirements:
1. The real property must be owned by the eligible transferor who is the grandparent.
2. You must be a grandchild whose parent(s) qualify as the deceased child(ren) of the grandparents as of the date of transfer, and you must be the decedent's child.
3. You must complete a Claim for Reassessment Exclusion for Transferor from Grandparent to Grandchild form for a gift or purchase of real property from grandparent to grandchild.
How do I file?
http://assessor.lacounty.gov
helpdesk@assessor.lacounty.gov
213-893-1239
What forms do I need?
Transfer between Parent and Child. (OWN-88)
Transfer between Grandparent and Grandchild (OWN-143)
For expanded definitions of Prop. 58 & 193, see Revenue and Taxation (R & T) Code Section 63.1. It is available online at www.boetaxes.ca.gov/propery
Friday, August 03, 2007
Reverse Mortgages for Seniors
Presently senior home owners who have reached the age of 62 hold an estimated $4.3 trillion dollars of home equity. By the year 2030 seniors could hold as much as $37 trillion in home value. Aging baby boomers and seniors have accrued tremendous assets from savings and retirement funds and hugh equities from the value of their homes. They also have many concerns about their increasing health costs, and funding their plans for retirement. After these concerns they have other pressing issues such as financially helping their children and grandchildren. Home prices have increased well beyond the reach of many home buyers, whether they are the "Boomer/Seniors" children or grandchildren. Home owners with all this accumulated equity are in an enviable position. They have an opportunity to make some well planned decisions about how they will allocate these monies. They can decide to spent as much as they want or need. They could also decide to financially help their children and grandchildren, then after they pass away leave what is left in their estate. Their heirs will then benefit.
You may be asking yourself now, how can they spend the equity in their home? What if they can't afford to pay for a second home loan. What if they don't want to acquire a home equity line of credit. These loans require repayment. If they are already retired and living on a fixed income then they probably can't afford to refinance. Or after all these years they have payed off the mortgage and now the furthest thought in their minds is an act placing themselves back into debt. We will address that issue later.
Other concerns and issues that "Boomers/Seniors" are faced with include helping their children and grandchildren with money needs, be it housing, or education costs, or just the cost of living. The ability to buy a home similar to the first home you purchased has now exceeded the financial reach of your children and grandchildren. You may have been seriously thinking about how can you help them. A down payment, a years' tuition, some pressing bills that may have accumulated and your children or grandchildren need help. How can you help and ot have to drain your bank account or retirement fund. Those monies can't be replaced. What about the equity in your home. The fear of taking equity out of your home and having to repay the debt can be terrifying. The fear of losing your home to foreclosure for failure to service your debt can be so unsettling that it prevents you from offering help to your children. A reverse mortgage may be the best way to help your children or yourself if the need arises.
A reverse mortgage is a particular type of home loan that allows the homeowner to tap into a portion of the equity in the home, however unlike a traditional mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. The U. S. Department of Housing and Urban Development has created a reverse mortgage that provides these benefits and it is federally insured. The borrower can recieve the funds from this type of mortgage in different ways. There are five payment options, and they are: Tenure, Term, Modified Tenure, and Modified Term, and Line of Credit. The Tenure option allows the borrower to receive equal monthly payments for as long as they continue to use the property as their primary residence. The Term option offers equal monthly payments for a set monthly period. Modified Tenure offers a combination of the Line of Credit option with Tenure, meaning they have a line of credit when payments are needed as well as monthly payments. Modified Term is similar to the Modified Tenure in that it provides a line of credit along with monthly payments for a fixed period. And last is the Line of Credit that offers payment when needed until the line of credit is exhausted.
No one gets anything for free. How is this type of loan repaid? First you must qualify for the loan. You must be 62 years or older. The borrower(s) must have an existing low mortgage that can easily be repair by the reverse mortgage or they must own the home, and they must live in the home. They must attend a counciling session approved by HUD prior to obtaing the loan. The amount that can be borrowed by a reverse mortgage is determined by the age of the borrower, the value of the home, and the current interest rate. There are no payments to be made to the lender of the mortgage as long as the borrower remains in the home as their primary residence. A borrower will never have their home taken away from them even if they outlive the value of the loan. You can never owe more than your home is worth so you do not need to repay the loan as long as you live in the home. The amount of money that can be received each month depends on a few factors. The age of the borrower, the interest rate at the time of the loan origination, and the appraised value of the home are the factors determing how much you can borrow. Borrowers do worry about being able to leave their home and its value to their estate. Borrowers will repay the cash received as well as accrued interest and other fees to the lender when the borrower no longer used the home as their principle residence, or they sell the home. Any remaining equity will belong to the borrower or to the estate. The debt incurred from the loan will never pass along to the estate of the heirs and no other assets will be affected by the loan.
This type of loan could be a tremendous benefit to you now and to your children and grandchildren.
If you have any other concerns or questions, contact me at 818-458-3329(cell). I am a certified Senior Real Estate Specialist.
You may be asking yourself now, how can they spend the equity in their home? What if they can't afford to pay for a second home loan. What if they don't want to acquire a home equity line of credit. These loans require repayment. If they are already retired and living on a fixed income then they probably can't afford to refinance. Or after all these years they have payed off the mortgage and now the furthest thought in their minds is an act placing themselves back into debt. We will address that issue later.
Other concerns and issues that "Boomers/Seniors" are faced with include helping their children and grandchildren with money needs, be it housing, or education costs, or just the cost of living. The ability to buy a home similar to the first home you purchased has now exceeded the financial reach of your children and grandchildren. You may have been seriously thinking about how can you help them. A down payment, a years' tuition, some pressing bills that may have accumulated and your children or grandchildren need help. How can you help and ot have to drain your bank account or retirement fund. Those monies can't be replaced. What about the equity in your home. The fear of taking equity out of your home and having to repay the debt can be terrifying. The fear of losing your home to foreclosure for failure to service your debt can be so unsettling that it prevents you from offering help to your children. A reverse mortgage may be the best way to help your children or yourself if the need arises.
A reverse mortgage is a particular type of home loan that allows the homeowner to tap into a portion of the equity in the home, however unlike a traditional mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. The U. S. Department of Housing and Urban Development has created a reverse mortgage that provides these benefits and it is federally insured. The borrower can recieve the funds from this type of mortgage in different ways. There are five payment options, and they are: Tenure, Term, Modified Tenure, and Modified Term, and Line of Credit. The Tenure option allows the borrower to receive equal monthly payments for as long as they continue to use the property as their primary residence. The Term option offers equal monthly payments for a set monthly period. Modified Tenure offers a combination of the Line of Credit option with Tenure, meaning they have a line of credit when payments are needed as well as monthly payments. Modified Term is similar to the Modified Tenure in that it provides a line of credit along with monthly payments for a fixed period. And last is the Line of Credit that offers payment when needed until the line of credit is exhausted.
No one gets anything for free. How is this type of loan repaid? First you must qualify for the loan. You must be 62 years or older. The borrower(s) must have an existing low mortgage that can easily be repair by the reverse mortgage or they must own the home, and they must live in the home. They must attend a counciling session approved by HUD prior to obtaing the loan. The amount that can be borrowed by a reverse mortgage is determined by the age of the borrower, the value of the home, and the current interest rate. There are no payments to be made to the lender of the mortgage as long as the borrower remains in the home as their primary residence. A borrower will never have their home taken away from them even if they outlive the value of the loan. You can never owe more than your home is worth so you do not need to repay the loan as long as you live in the home. The amount of money that can be received each month depends on a few factors. The age of the borrower, the interest rate at the time of the loan origination, and the appraised value of the home are the factors determing how much you can borrow. Borrowers do worry about being able to leave their home and its value to their estate. Borrowers will repay the cash received as well as accrued interest and other fees to the lender when the borrower no longer used the home as their principle residence, or they sell the home. Any remaining equity will belong to the borrower or to the estate. The debt incurred from the loan will never pass along to the estate of the heirs and no other assets will be affected by the loan.
This type of loan could be a tremendous benefit to you now and to your children and grandchildren.
If you have any other concerns or questions, contact me at 818-458-3329(cell). I am a certified Senior Real Estate Specialist.
Thursday, August 02, 2007
Reseda Neighborhood Watch Meeting in September
The next Neighborhood Watch meeting will be September 13,2007. The meeting place will be in the Community Room at the West Valley Police Station, 19020 Vanowen St. Reseda. The room is located in the front of the police station. As you enter from the front door, make a quick right to access the Community Room. All are invited.
Everyone in the community is concerned about the safety and well being of themselves, their family, and their community. Come to the meeting and learn about what is going on in your area. Don't rely on hearsay and rumors. Listen to the lead officers in charge, Jose Maldonada (818-374-7635) or Brent Righ (818-731-2581), and the Senior Lead Officer (818-374-7630). Listen to their information and then ask questions about the issues that are causing you the most grief. After the meeting is over, go home and share this correct information with family and friends.
Another place to find out information regarding Reseda is the Reseda Neighborhool Council, www.resedacouncil.org. Log on and investigate what this council is all about.
Important Phone Numbers:
L.A.P.D. Non-emergency (877)275-5273
Emergency Calls Only 911
Non Emergency City Calls 311
Councilman Zine's Office 818-756-8848
Graffiti Removal, W.V. Alliance 818-227-9722
Parking Enforcement 818-752-5100
Shopping Cart Pickup (800) 252-4613
Large Item Pickup(free) (800) 773-2489
Stray Cats 818-516-1622
FYI:
Do you know that you can give your old books and magazines to the YMCA on Vanowen and Wilbur. They will arrange to pick up your books. They inturn sell them for a nominal fee and the proceeds help reduce the fees and costs for the programs and camps that the "Y" sponsers.
Add your own tips about how to improve Reseda.
Everyone in the community is concerned about the safety and well being of themselves, their family, and their community. Come to the meeting and learn about what is going on in your area. Don't rely on hearsay and rumors. Listen to the lead officers in charge, Jose Maldonada (818-374-7635) or Brent Righ (818-731-2581), and the Senior Lead Officer (818-374-7630). Listen to their information and then ask questions about the issues that are causing you the most grief. After the meeting is over, go home and share this correct information with family and friends.
Another place to find out information regarding Reseda is the Reseda Neighborhool Council, www.resedacouncil.org. Log on and investigate what this council is all about.
Important Phone Numbers:
L.A.P.D. Non-emergency (877)275-5273
Emergency Calls Only 911
Non Emergency City Calls 311
Councilman Zine's Office 818-756-8848
Graffiti Removal, W.V. Alliance 818-227-9722
Parking Enforcement 818-752-5100
Shopping Cart Pickup (800) 252-4613
Large Item Pickup(free) (800) 773-2489
Stray Cats 818-516-1622
FYI:
Do you know that you can give your old books and magazines to the YMCA on Vanowen and Wilbur. They will arrange to pick up your books. They inturn sell them for a nominal fee and the proceeds help reduce the fees and costs for the programs and camps that the "Y" sponsers.
Add your own tips about how to improve Reseda.
Tuesday, July 31, 2007
If you do the same thing then you will get the same results
We all drive down certain street and wonder why our own street doesn't look as good. Why is that? We like what we see yet we can't motivate ourselves to change the look of the street where we live. Do we need information and guides about how to alter the way our yards look? Do we need to grow a green thumb before we make changes? Do we think that the costs to change will be too high? Do we need blueprints or how-to guides that tell us step by step how to complete the make over? Have we tried in the past to make changes only to have everything we replanted die? Have we been successful in growing different plants and flowers and then decided that it looked awful? Commit to excellence. Practice excellence.
If you want it to look better you must make it look better. We live in an area where we can be outside 340 days a year. Get out there and start planting and digging and trimming. Tear out the weeds. Plant seeds that will grow into beautiful flowers in a few months. Tear out old plants and shrubs that are ugly and serve no purpose. You don't have to wait for the nurseries to sell you costly flats of flowers. Dig a hole and drop some seeds into the ground. Tend to it now. It's nice to be outside. And then let nature do the rest.The better your yard looks the more you will inspire the other neighbors to improve their properties. They will become excited about how attractive your home is and then they will commit to make their homes and yards look better. The snowball starts to roll down the hill and everyone will commit to improvement. The whole area begins to look great. Then the whole area will become more desirable to live in. If others perceive your area to be desirable they will chose to spend their home purchasing dollars in your neighborhood and not somewhere else. And buyers will pay more to live there. Whatever the effort or the cost you extend now will be returned first in the beauty you view every day and secondarily in the future higher prices for your home when you sell and move.
If you agree, let me know if you have other ideas about improving your neighborhood.
If you disagree let me know why.
I will be adding links to help and to aid in the improvement of your yard.
If you want it to look better you must make it look better. We live in an area where we can be outside 340 days a year. Get out there and start planting and digging and trimming. Tear out the weeds. Plant seeds that will grow into beautiful flowers in a few months. Tear out old plants and shrubs that are ugly and serve no purpose. You don't have to wait for the nurseries to sell you costly flats of flowers. Dig a hole and drop some seeds into the ground. Tend to it now. It's nice to be outside. And then let nature do the rest.The better your yard looks the more you will inspire the other neighbors to improve their properties. They will become excited about how attractive your home is and then they will commit to make their homes and yards look better. The snowball starts to roll down the hill and everyone will commit to improvement. The whole area begins to look great. Then the whole area will become more desirable to live in. If others perceive your area to be desirable they will chose to spend their home purchasing dollars in your neighborhood and not somewhere else. And buyers will pay more to live there. Whatever the effort or the cost you extend now will be returned first in the beauty you view every day and secondarily in the future higher prices for your home when you sell and move.
If you agree, let me know if you have other ideas about improving your neighborhood.
If you disagree let me know why.
I will be adding links to help and to aid in the improvement of your yard.
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