Something Good out of Sacramento

We don’t hear this very often and you probably thought you’d never hear me say it. Yet Governor Brown did approve some legislation to protect families from suffering further loses, after a loved one has passed. CA Legislature

Unfortunately, too many people pass away, without any kind of Will or agreement for the disposition of their property(s). Some pass unexpectedly way too soon. In these cases, the state and attorneys get a large chunk of the estate’s value, while trying to figure out, who should get it.

There is now a simple new form, that can be filed at anytime (see limitations below), to help curb all those unnecessary expenses ($1500-$2000 avg. trust costs) and keep the funds with the family (or other party designated), where they belong. This is thanks to California State Assembly Bill 139, passed September 21, 2015, whose provisions have been available in Hawaii and a few other states for sometime.

Beginning January 1, 2016, Assembly Bill 139 (also known as the Poor Man’s Trust), created a non-probate method for conveying interest in real property upon death. This is accomplished through a revocable transfer upon death deed (RTDD). If an RTDD has been filed, on 1-4 units, or agricultural land of less than 40 acres, from now through 1/1/2021, the deed automatically transfers to the listed recipient, and can only be revoked by a recorded document.

There are exceptions and certain provisions, for instance; if the property is owned by 2 people & 1 dies, the surviving person must file a new RTDD… If owned by Tenants in Common, it only affects the decedents portion of the property and if owned by Joint Tenancy, it is voidable. It does not require owner or lender to file a quit claim deed and it terminates upon the sale of the property (if sold to someone other than beneficiary). It also doesn’t not affect the current ownership in any way. The RTDD Must be recorded within 60 days of execution.

For more information on protecting your family, your assets, or to help explain this to loved ones, please call Scott Stephens (714) 801-6230…Before it’s too late.

For a full copy of the legislation;


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6 Years of Growth could spell Trouble

Real estate and other markets have been on s fantastic run, the last 6 years. Most markets have made a full recovery from the previous down-turns. Yet, as we’ve all heard the old saying “too much of a good thing…”                 Orange

Jonathan Lasner, took and indepth look at where we’ve come from, we are currently, and where we might be headed, in his “Big Orange Index”, in his Orange County Register article, on January 24, 2016. He noted that our 2016 economy has started strong, but that this steak “is creating challenges…beneath the surface.”  His Big Orange Index, which is a compilation of 3 dozen benchmarks, shows a new record high as 2015 ended. Yet that 4th quarter report showed the second smallest increase since the upswing began in 2010.

Jonathan noted the following areas where there appears to be a new lack of confidence; CEOs (last 3 quarters), shoppers, property owners. Another economist (unknown) noted that 41% of Americans are also nervous about rising interest rates, this year.

Governor Jerry Brown, in his infenant wisdom, has declared a state of emergency on housing rentals. This could limit rent increases to 10% in the very near future. Real estate investor purchases have been helping to keep prices appreciating. While this may not create a huge sell of, it could slow appreciation significantly. Lasner also noted that do to the limited supply of properties (for both owner occupied & non-owner occupied), which has driven prices to record levels and stretchered buyers’ abilities, has lead to falling Property Owner indexes.

The Asian economy is also something we must watch closely. As you can read in my previous blogs, Asians make up a HUGE portion of the buyers in many US areas, including LA/Orange County. Earlier this month China had to close it’s stock markets 30 minutes after opening, due to a huge sell off, which prompted even more selling and then flattening. This prompted their government to dump $18 Billion into their markets.  If this massive sector of buyers were to pull out of US markets, appreciations would slow, and if they started selling many of their holding, in any or all of their areas of influence (residential, retail & commercial), this could have a devastating effect on home values.

Lasner also mentioned that this upswing has run for one year longer than in the last decade. He suggested that if the current “…skittishness remains so widespread…how will Orange County react”, and questions whether it will “…turn into stagnation or worse?”

Don’t get me wrong, I’m NOT predicting a doomsday scenario. Yet, we have to ask ourselves, How much riskier do does the real estate market have to get, before we decide, its time to move?

Isn’t it Time to Hire the Right Agent? My team and I keep our fingers on the pulse of the market, by looking at over 200 homes a month. If you want a Specialist, someone who KNOWS this Market, working for you, Please call us (714) 801-6230.

For more information, search for homes, check demographics and more;

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Mortgage Closings are now Taking Longer

Some of you may have already heard about the new consumer protections called “TRID”, which stands for this mouth-full; “TILA (for Truth In Lending Act), RESPA (for Real Estate Settlement Procedures Act), Integrated, Disclosures. Yup, congress, through the Consumer Financial Protection Bureau, has once again taken consumer concerns (or acted on their own to look good), and came up with new laws to turn your world upside down.

Effective today, Big changes take effect in all residential real estate transactions involving mortgages (purchase and refinances).  Commercial, cash and other transactions types are not affected (evidently they are smarter & can protect themselves). This could extend the current 30 day escrow, to 60 days (although, after everyone gets grasp on all the new disclosures & timelines, could settle in around 45 days). These new government mandates, although designed to protect buyers/borrowers, will effect Sellers & almost every other entity in real estate transactions from now on.

The current “Good Faith Estimate” will be replaced by a “Loan Estimate”, which will be received within 3 days of applying for a loan. The “Closing Disclosure” must be received by the borrower 3 business days before the closing. If this disclosure is mailed, couriered or emailed, they must add another 3 business days. This is a huge change, because today, some necessary information is still being gathered (changing signing documents) 1-2 days before closings. To accomplish these new mandates buyers & agents will need to get lenders EVERYTHING they need 10 days before the closing…Rush or Last-Minute Closings will No Longer be Possible. Realistically, buyers & sellers may need to add 3-4 weeks to closings, to accomplish everything needed.woman pulling hair

Trying to close by the end of the month (to save on interest)? You must get all documents to your lender by early to mid-month, especially if you want to ask questions.  In February that means immediately after the Super Bowl.

Real Estate Purchase contracts have also been changed. So make sure you agents knows them, and knows how to still get your transaction closed in a timely matter.  Scott Stephens is a Real Estate Trainer, keeping not only himself, but also his fellow agents up-to-date on all new changes. Additionally, he uses a lender, “United American Mortgage Company” who GUARANTEES they can still close purchases in 30 days*. Whether you are a Buyer or Seller you’ll want to Call Scott, Keller Williams Realty, for advise (714) 801-6230 or Phil Andrews, of UAMC (714) 287-6148 (sellers can require buyers to apply with Phil, although they can’t require that they use him, providing confidence they can close on time). No Hablo Ingles…Jessica McClure (714) 713-0172.

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Missed it by that much

missed by thatZillow, Trulia and other online real estate systems are great entertainment. For anyone who is just starting the process of purchasing or selling a home, and like to gather as much information as possible, they provide a loose idea, of home values and of possible homes for sale. Yet I have found, in speaking with my clients, as well as some of my colleagues, they miss the mark Big Time, there are MANY mistakes, and a lot of misinformation.

Everyone of my clients, who have used an online search system prior to contacting me to help them find the perfect home, stated that Many of the homes were already SOLD, there is a lot of misrepresentation of amenities, and some are even made up (they don’t exist anywhere in the system, and no one has any record of them being for sale). Here’s what one of them posted on my website (; “Your website has been a great help in trying to find the right home. The search options available are great and the feature to save searches is very helpful and time saving. One big advantage over websites like Zillow and Trulia is that the listings are always up to date. Prior to my knowledge of your website, I found many properties on Zillow and Trulia that weren’t available anymore or had errors in listing. This lead to false perceptions and were a waste of time. Thank you for showing me your website. I really appreciate it.”  Ritesh Meta 9/30/13

When it comes to putting a value on your home, the results are likely just as far off. Sites have been as much as $100,000 in difference, on the same home. Zestimates (by Zillow) rank their accuracy, for Los Angeles & Orange County, 4 stars (their highest ranking) as of the date of this article.   Missed by that much

Here’s what they published for the OC (LA stats are within 2% pints in each level); “…our estimates are with __% of the sold price, __% of the time. Within 5% – 40% of the time, within 10% – 67% of the time and within 20% – 85% of the time.” Note; All rounded to nearest whole.

So, if we use the current OC median price, of $680,000, they may have only been off by $34,000, 60% of the time. You may be ok to eat that, if you don’t want to talk to a professional. Yet it could be a $68,000 loss in 33% of the cases, which would make it a little more difficult to swallow. It gets better…They would only be off 15% of the time, by $136,000. Is that bad?

If I were one in 7 people, who could stand to lose $136,000, I would CERTAINLY ask a professional.

Your local Realtor (if they have over 20 years experience, like I do) can Save you money, by finding the perfect house, in the quickest time and negotiating the best offer, and/or Make you the most Money, through correct pricing, marketing and negotiating your current home’s sale. All while making sure everyone is protected through the most up-to-date disclosures.

Go ahead and satisfy your curiosity and be entertained with an online site, but use a Realtor, when you get serious about buying, selling or investing in real estate.  And don’t be surprised if they come up with some very different information.

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Surprise…I’m not going to tell you “It’s Time to Sell”

I’m going to let you make that decision, based on the facts of our current real estate market.

The trend – Median sales prices in California have been appreciating for going on 5 years now. More the most part, all loses have been recouped from the 2007 debacle. In 2012 the median rose about 12 percent, in 2013 it was 27 percent, last year we saw about a 10 percent appreciation and this year we’re at about 5. What direction do you think it will take from here?

Supply – The 2015 spring market saw an average appreciation, which was surprising, because the inventory was very low. The supply this spring was only about 1.5 months (meaning if nothing changed and no more came on the market that inventory would be gone). Currently we have about nearly a 2.5 month supply.  Listing inventory has nearly doubled. This isn’t all do to fewer buyers (because the spring market is over), there are also many more sellers listing their homes, and buyers are more cautious, taking their time to find the right home. More sellers believe we are near a peak again. The OC Register reported 8/6/2015, that consumer confidence in long-term appreciation had dropped by 10%.

Demand- The obvious fact that I mentioned above “the spring market is over”, is only part of the demand issue.  Here in Southern California housing affordability has dropped to one of its lowest points in history, 21%. Plus, the age of our average home buyer has moved up again, from 38 two years ago to 48 today. Condos are the new affordability frontier again. Existing condos sale in The O.C. are up 17.9% from a year ago, compared to the 5% home sales.

The proverbial Straw – Chinese government devaluing the Yuan. This monetary imbalance may affect many aspects of our life, most of all real estate values. You see 19% of Southern California homes sales have been to Chinese buyers. This may change drastically.

Where do you think the real estate market is going?

Check your neighborhood stats against those of any other area across the country;

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Rents are Syrocketing!

Rents Skyrocketing & not coming down Any time soon

In 20 years as a Realtor, I’ve NEVER seen a better time to Stop Renting & Buy a Home!
Don’t take my word for it. Here’s what the experts have to say…
OC Register 10/12 & 10/16 “OC Rents keep upward push” & “Average Rent Hits Record”; apartment rents rose another 3.3% over last year, for an average increase of $57/month and vacancy rates dropped to 4.3%. Average monthly rents have been steadily increasing for the past 4 years (about 18% = $273/month). This average monthly rent is expected to hit $1800 by 2016. Some areas of the OC have 8-9% increases; Cypress, Irvine, Newport and others. Renters in Los Angeles are paying 48% of their income for shelter. Topping it all off, Builders are not keeping up with the demand, and there doesn’t appear to be any relief in sight.

Interest Rates Surprise everyone Again!

In another very, unexpected turn of events, interest rates came DOWN a few days ago.
Check out the wild effects of last week’s stock market debacle in our last blog post (written on 10/15/14)

But I missed the big 30% appreciations last year
This is not the end of the world nor is it the end of appreciation. Home prices generally run in 7-8 year cycles and we are only 1 ½ years into this one. So STOP crying over spilled milk and get in NOW, before you really miss out. If you’re waiting for prices to go back down to where they were, you might as well just take what you have saved to Vegas now.

Bottom line

Do whatever you can to get out of that rental and start building wealth with you own home, TODAY!

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WOW!! How low can they go?

Interest rates in a free fall this morning, more so than what we have experienced since the rally began. The 10 yr., at 9:00 am was at 2.04%, down 16 basis points (bps) from yesterday’s 10 bps decline, and 25 bps in less than 24 hours, for a total loss of 60 bps in less than a month. This move today can only be compared to Oct 1987 when the stock market collapsed and interest rates went into a free fall that lasted three days.

The German 10 yr. bond is at another new all-time low of 0.71%. The world economy is also slipping much more than had been expected by most analysts. Data this week has shown German investor confidence slid to the weakest level in almost two years, U.K. inflation unexpectedly stalled and China’s consumer-price gains declined to the lowest in five months.

Back here, in the U.S., it looks like a possible blow-off move in the rate and stock markets, especially in the rate sector (yet it can’t be certain until after the fact). The DJIA opening, at 9:30, was -148, NASDAQ -71, S&P -20; within 10 minutes the DJIA was off 363 points and continuing to decline. Panic is the definition this morning; all of the stock market bulls, and all of those sure interest rates were headed higher, and all those that were not concerned about increasing price declines—are I panic mode today. Usually this kind of move is a blow-off. Total capitulation–complete.

PRICES @ 10:00 AM
10 yr. note: +36/32 (112 bp) 2.05% -15 bp; the low 1.87%
5 yr. note: +26/32 (81 bp) 1.28% -18 bps
2 Yr. note: +5/32 (15 bp) 0.29% -9 bp
30 yr. bond: +143/32 (443 bp) 2.74% -21 bp
Libor Rates: 1 mo 0.153%; 3 mo 0.230%; 6 mo 0.321%; 1 yr 0.547%
30 yr. Fixed Rate Mortgages 3.5%
15 yr. Fixed Rate Mortgages 3.0%

Dollar/Yen: 106.11 -0.94 yen
Dollar/Euro: $1.2784 +$0.0124
Gold: $1240.20 +$5.90

As presented by Brad Snow, of United American Mortgage.
His contact information and more about local housing trends can be found @; Continue reading

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