Prop 60 and Prop 90

One of the most frequent questions that an empty nester asks when they make the attempt to down size is the issue of property taxes. Typically, the empty nesters will have lived in their current home for many years and have a very low tax base. When they are ready to downsize, their primary concern is the prospect of a significant increase in their property taxes for a smaller home than the one they are selling. This can be particularly troublesome in fixed income situations.

But not to fear. California, being one of the most expensive places in the nation, had passed certain legislations which will protect folks over 55 and give them a one-time opportunity to take their tax base with them.

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Steve Mun, Silicon Valley Realtor
http://www.stevemun.com/

Is it a good time to invest?

When is the best time to invest in real estate? People ask this all the time. The real estate market is no different than any other type of market. You buy when you can get a deal; and you can get a deal, when the supply is greater than demand. When is this perfect market going to come? Well, it is already here in many areas of Santa Clara County.

Granted, I am always the first to tell you to buy in the best area that you can possibly afford; this typically means the areas with the best school districts, in my opinion. However, your rental unit does not necessarily have to have the best school district in order to be in demand, nor be able to build equity as the tenants pay off large portions or most of your mortgage payments. It depends on the amount of money available for down payment to control the monthly payments. After all, it is all about holding onto the property without sinking too much money into it while gaining equity appreciation.

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Steve Mun, Silicon Valley Realtor
http://www.stevemun.com/

Homestead exemption

With all of this sub-prime market fiasco, many people are still suffering as the result of their mortgage payments re-adjusting to much higher rates after the teaser rates expired. Those who did not gain much in equity or those who have less than stellar credit history may be watching with less than enthusiasm settling in their hearts.

This brings me to a term which many people may not be familiar with, in my opinion: homestead exemption. This statute provides some protection to the homeowner from debtors trying to force the sale of their primary residence, if there is insufficient equity in the home. If there is sufficient equity in the home, then this exemption will not stop the sale of the residence. The homeowner must make a declaration of homestead on their primary residence.

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Steve Mun, Silicon Valley Realtor
http://www.stevemun.com/

Santa Clara County Market Conditions June 2007

Single Family Market

Sales remained flat as we are now entering the summer months; yet look at the increase in homes coming on the market. The inventory minus homes sold were about 4.07:1, hence, the absorption rate approaching 4.10 months in June was extremely accurate. Yes, at the end of June, you would have been up against 4.10 months of unsold inventory of homes to compete against in Santa Clara County if you put your home on the market. That number (unsold inventory) seems to be increasing.

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Steve Mun, Silicon Valley Realtor
www.stevemun.com

Steve’s Dozen Ways to Bring My Sellers More Money

Steve’s Dozen Ways to Bring My Sellers More Money


1. Cultivate your curb appeal. Some of the best buyers are the most impatient because they need to make a decision fast. If the view of your house from the street turns them off, they might not even stop. Shape up your front yard.
2. Take a critical look at the front of your house. If it’s weathered looking, if anything needs repair, or if anything needs to be hauled to the dump - eliminate these problems. Don’t turn your buyers off outside before the inside can turn them on.
3. Never stay in your house with buyers. Let the agent handle it, and remove yourself. Remember, the agent has worked for many hours with these potential buyers, knows what they are looking for, and how to work with them. Let him or her do the job without interference. You may think an agent isn’t showing the important features of your house, but the agent knows buyers aren’t sold by detail until they’ve become emotionally involved with the big picture of your house. The presence of any member of the seller’s family can’t help, always unnerves possible buyers, and often prevents a sale. Don’t put this obstacle in your path. Leave when buyers are coming, your absence will help sell it.
4. Give your dogs and cats a vacation. They need it and so does your pocketbook. Having pets around (especially aggressive dogs) when you’re selling your home can be incredibly expensive. Many people are acutely uncomfortable around some animals, and simply can’t think buy when their minds are on bye. At least put them in the garage and away from the main area when buyers are coming.
5. A few cans of paint and putty to brighten up your interior are the best investments you can make when you’re selling a house.
6. Drips do more than run up your water bill. They focus the attention of possible buyers on your house’s entire plumbing system, and cause them to worry. Fix these little problems before they cost you a lot more.
7. Squeaking doors and creaking floors, torn or missing screens, cracked glass, and anything in need of repair dampens the house hunter’s enthusiasm. Many buyers believe there will always be ten problems they haven’t noticed for every one they see. Eliminate any negotiation points. A $10 spackle job can easily become a $1,000 negotiation point.
8. Hide (or neatly arrange) everything connected with work: lawnmowers, garden hoses, vacuum cleaners, and all the gear you used to fix up the house. Accent everything connected with play and relaxation; sound systems, skis, toys in the kid’s rooms.
9. De-clutter. Repack compactly, dispose of unneeded items, or rent storage space and move out as much material as you can. You want to create the impression of open space (as much as possible) by removing nearly everything. Minimalist look is the way to go.
10. Adjust the environment. If it’s hot, cool it; if it’s cold, light a crackling fire or turn on the heat.
11. Harmonize the elements. Turn the music on softly and the TV off. Turn on all lights, days or night. Open the drapes in the daytime.
12. You can sell pride of ownership faster and for more money. It’s called cleanliness, and fresh cleanliness has more buyers than used dirt. Put sparkle in your bathrooms and kitchen, and you’ll take out lots more silver.

Steve Mun, Silicon Valley Realtor
www.stevemun.com

Mechanic's Lien and you

A client of mine had his floor refinished after he purchased a house through me. He loved the house and wanted to pull out the carpet from the home and take advantage of the hardwood floor that lay beneath the carpet. This was like many 45 year homes in the valley, beneath the carpet lay a perfectly good hardwood floor which was covered up for probably more than two decades.

I introduce him to my hardwood refinisher who has done excellent work for me in the past for my other clients. But my frugal buyer decides he did not like the price my guy quoted, so he went with someone that he pulled out of craigslist. (It turns out to be a small amount of money by the way).


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Steve Mun, Silicon Valley Realtor
www.stevemun.com