Strong Spring Ahead for Southern California Housing Market

A recent Los Angeles Times article forecasts a strong spring ahead for the Southern California housing market.  With relatively higher prices, lower interest rates, and fewer underwater owners, the Southern California housing market is seeing more listings and fewer days on the market.  Where a lack of homes on the market was a cause of higher prices a few years ago, now, a more plentiful supply of homes should keep prices stable or even cause prices to dip.

Given the stable housing prices, buyer interest, as measured by online real estate searches and open house traffic, has jumped in recent weeks.  This increased buyer interest could translate into increasing home sales.  You can check out the rest of the Los Angeles Times article here: 

http://www.latimes.com/business/realestate/la-fi-home-sales-20150318-story.html. 

If you are considering buying or selling real estate in Southern California, please contact Esquire Real Estate for all of your real estate needs.

Wood Pests - California's Unwanted Guests

With spring approaching, the termites are multiplying, while new form contract revisions regarding termite expenses affect both buyers and sellers.  Costs typically range from a few hundred dollars into the thousands of dollars for termite damage infestation and repairs.  Who will pay for the termite inspection and repairs?  Beware if you don't stipulate up front because it's no longer included in the Residential Purchase Agreement (RPA).

The California Association of Realtors (CAR) revised the standard RPA and released the new form in November 2014.  As part of the revision, CAR removed the Wood Pest Addendum form that was commonly used to allocate responsibility for the termite inspection and payment for the recommended work in the termite report, and the standard RPA does not include any language for allocating the cost of the recommended work.  Instead, CAR now suggests that buyers and sellers negotiate the responsibility for the termite work during escrow via the Request for Repairs form.

However, savvy buyers and sellers will realize that negotiations during escrow regarding responsibility for termite work (sometimes amounting to thousands of dollars) are not always smooth or cohesive to a successful escrow.  Instead of addressing this tension that will likely occur during escrow, CAR recommends that “If the client or brokerage wants to use the offer to purchase to negotiate these repairs, it is advisable to work with an attorney to draft appropriate language.”

Esquire Real Estate can draft customized and appropriate language for the allocation of responsibility for the termite inspection and payment for the recommended work in the termite report during the contract negotiation phase before the parties have committed to the terms of the transaction and entered escrow.  Esquire Real Estate offers customized contract drafting as one of the many services at no added cost that Esquire Real Estate, as an attorney-broker, can provide for your next purchase or sale.

Less Homes on the Market Means Higher Prices

Orange County and Southern California continue to see modest appreciation in home prices with a decrease in home sale volume (i.e. fewer homes being sold).  Fewer homes on the market may mean higher sales prices.  Esquire Real Estate can provide you a complimentary Comparative Market Analysis to determine the estimated value of your home and can also provide a Seller's Estimated Proceeds to determine how much you will receive in your pocket after the sale of your home.

Ford vs. Ferrari? Agent vs. Attorney-Broker?

If both cars were the same price, which would you choose?

FORD TAURUS

- 288 horsepower

- 0-60 in 6.6 seconds

FERRARI CALIFORNIA T

- 553 horsepower

- 0-60 in 3.6 seconds

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REAL ESTATE AGENT

- Can fill in pre-printed forms

- Possibly trained and experienced in negotiating price for real estate

- May attempt to double-end transactions by representing both buyer and seller

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       REAL ESTATE         ATTORNEY-BROKER

- Able to prepare custom contracts, evaluate and advise you regarding legal aspects of real estate transactions and contracts

- Trained and experienced in all aspects and terms of real estate negotiations

- Committed to loyalty and confidentiality for clients and avoiding double-ending

Esquire Real Estate offers the "Ferrari" services of a real estate attorney-broker at no added cost.

Where are the Best Deals? Real Estate Auctions or the Open Market?

Many times, people ask for advice on where to find the best deals on property, either as a home or for investment properties.  I still believe that the best deals are found on the open market, although sometimes you have to dig hard to find the deals.  Conversely, it is becoming more and more apparent that the best deals are not found at real estate auctions, and the California Legislature has stepped in to put a stop to some unscrupulous practices. 

A new law prohibits a practice known as a “shill bid” where a person bids at a real estate auction for the sole purpose of increasing the bid on the real property being sold by the auctioneer.  Certain very limited exceptions apply to this prohibition.  You can view the new law here: 

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2039 

The very fact that persons for the auction companies or lender companies were making “shill bids” at these auctions should be a deterrent to potential participants in these auctions.  Although an auction for real estate might seem like the place to purchase real estate at a great price, you will be best protected in the common real estate process of offers, counter offers, disclosures, inspections, and escrow, where you are represented by a trained real estate broker and given sufficient time to consider the property condition, title record, and property value.

If you have any questions, Esquire Real Estate is here to help.