Tag

disclosures Sonoma County

Jan 16
0

Million Dollar Views!

By | Buyers, Disclosures, Sellers, Sonoma County info | No Comments

Number one rule in Real Estate World Wide: Location, Location, Location. It’s all about the perfect location, either surrounded by trees, at the end of the cul-de-sac, next to a harbor or on top of a hill with the 180 degrees views. What is a view worth to you? When you buy a home, chances are that you will need a mortgage and thus an appraisal is involved. Recently I asked Eric Kirby, a local appraiser how much a view is worth. He explained that it is  about comparable properties,  maybe even in other neighborhoods,  calculate the difference – sometimes using a price per SqFt. But that it is not always easy to put a dollar value on a view.

A few years ago I sold a town home in Vista del Lago in Santa Rosa CA. It was the only one with the view. At that time, about $25,000 was given for the view. The town homes without the view sold for $400,000, the one I had listed ended up selling and appraising for about $425,000. Just asked the same question to a local mortgage broker (Seliga Financial), he mentioned a  sale in Marin County where about $200,000 was allowed for the views on a market value of $1,700,000. Both examples show that there is no set percentage, it’s all about the local market situation.

Sidenote: there are no guarantees that a view will stay the same: trees grow and might block a perfect view over time. And when these trees belong to your neighbor there is not a whole lot you can do. Something to keep in mind when you decide to buy a home, either on a bay/harbor in Zwartsluis, on a hill in Sonoma County or a hill in San Francisco.

How important is a view to you? And what would be your perfect view? I haven’t decided yet…

Mirjam

Dec 25
0

The Roof over your Head

By | Around the house, Buyers, Disclosures, Sellers, Sonoma County info | No Comments

Before I moved to California I was under the impression that roofs were either thatched or made of tile. My grandparents had a thatched roof made of reed. This was customary for the older farm houses. I had always lived in homes with tile roofs and these tiles usually last at least 50 years. My brother lives in a house that is over a 100 years old, he replaced the tiles on his roof about 6 years ago. The tile he replaced was the original…
Right now in Sonoma County roofs made of composition shingles are most common. The quality of the roof depends on the quality of the installation.
What I see is that cheaper is never better. Many roofers offer ‘deals’ on roofs: they offer the thinnest material available (lasting 15 years) and in order to work faster they quite often use stapes instead of nails.
Their ‘deals’ usually start having problems within 5 years… Shingles blow off during the stormy season causing leaks. Missing or improper installation of flashing will cause problems like for instance water intrusion in the walls…
And last but not least, there is a severe risk in using roofers who are not properly insured or don’t have a license. Should a roofer fall off the roof, the homeowner may be responsible. Depending on the insurance this may or may not be insured under your home owners insurance… You might want to talk to your insurance agent first before contacting a roofer. If you have been following my blog you know that I would recommend contacting Erin Temple with Vantreo Insurance – (707) 303-2574…

A good roof over your head is important if you need a referral to a reputable, local manufacturer certified roofer, just let me know.

Mirjam

Nov 06
0

Earthquake Fault Zones and due diligence…

By | Buyers, Disclosures, Sonoma County info | No Comments

fault_types.pngLooking for the perfect home in the perfect neighborhood? There is a little secret I need to share: there is no such thing as the perfect home/perfect place … Ouch… The home might be a great match, the neighborhood might be just perfect but what about natural hazards? WHAT??? one might say…

220px-de_dijk_tussen_kesteren_en_opheusden_tijdens_extreem_hoogwater_van_de_neder_rijn_344320s.jpgYes, Natural Hazards…We are talking about Earthquakes, Flooding, Fires etc. These Hazards are different depending on an area. Living in the Netherlands and about 50% of the Netherlands below sea level, flooding is an important one. Living in Sonoma County, you can live right on an Earthquake Fault zone and in a High Fire Hazard zone (think for instance of Fountaingrove).

This does not mean that these neighborhoods or areas are unfit to live. It means that one has to be aware of these Hazards before the final decision to buy a home,the 3rd party Hazard Report is a report a seller has to provide to a buyer. It is part of the statutory disclosures a seller and their Real Estate agents has to provide. 

There are many 3rd party Hazard Disclosure companies to choose from, one is Property ID. Personally I like their reports since they are easy to read and understand. It is important to go over all the disclosures provided.

Example: living in an earth quake zone means that there are more stringent building codes. This might affect you when remodeling an older home: all of a sudden there are extra requirements adding up to the costs of remodeling. However, these more stringent building codes are for your protection: the likelyhood of your home to withstand an earthquake…

These Natural Hazards also affect your Home Owners Insurance: living in an area with higher risks to be affected by natural disasters results in higher premiums. Recently I sold a home right on the coast of Albion: magnificent location. Small detail: most insurance providers were not willing to insure the property. That is by the way why a good insurance agent/broker is key: my favorite insurance agent, Erin Temple of Vantreo Insurance, was able to find a good insurance company who was willing to insure the property for a reasonable rate… Also lenders require a property to be adequately insured by the way. This is important when buying and refinancing a property.

Moral of the story, is doesn’t matter where you live, it is important to be aware of all material facts affecting the property you decide to buy.

Mirjam

Oct 23
0

Banks not supporting Energy Independence Program

By | Around the house, Buyers, Disclosures, Sellers, Sonoma County info | No Comments

As Kermit in Sesame street sang: ‘It’s not easy being green’

new_kermit.pngSonoma County in general has been promoting lowering our dependence on fossil fuels for a while now. Not only in big things but also in small things like using the old fashioned clothes line for drying clothes. That’s how I grew up in the Netherlands.

A great program that was developed a few years ago is the Sonoma County Energy Independence program (SCEIP

With SCEIP, a home owner can apply for a loan against the property for energy efficient upgrades: Windows, water heater, furnace, solar panels etc. It is a loan against the property, to be paid back in 15 years via property taxes. The current interest rate is 7%. The idea was to encourage home owners to make older homes more energy efficient. And that when a home owner does the upgrades, sells the home that the next home owner can not only benefit from the savings but also help paying for it. Great idea…

However, lenders do not see the loan as part of  assessments on the property taxes. With property taxes generally one also pays for the school, fire department, road bonds… For instance the road bond used to build Fountain Grove Park way is being paid for by home owners as part of the property taxes. Some homeowners have paid it of. When a home is for sale in Fountain Grove it is part of the seller disclosures and a prospective buyer will also see it when he received a copy of the property tax bill.

Now we see homes coming on the market that have the energy efficient upgrades. When the first home went into escrow, it was interesting to see that the lender who was chosen to provide the mortgage for the buyer, did not accept the SCEIP assessment on the property and required that is was paid of before close of escrow. Reason: they see it as an other loan against the property, thus the SCEIP lien will become senior to theirs when they new loan gets recorded. This means that in case of default, they are not in first position and thus responsible for the SCEIP lien in case they foreclose on the property. Also the government loan programs FAFH – Fannie Freddie, do not recognize the program and require the SCEIP assessment to be paid of before they will put a loan on the property…

Extra note, the above is also the case when a home owner wants to refinance his/her property to take advantage of the current historic low interest rates…

Sonoma County is protesting this and has taken FHFA to court.The latest update is on the website.

While the above should not stop a home owner from taking advantage of this program, it is good to be aware of the above developments. AND when you buy a home ALWAYS read the preliminary title report as well as the copy of the tax bill.

Have a most wonderful day!

Mirjam