Tag

Sellers

Jun 22
0

Time is Running Out: How the Mortgage Debt Relief Act can save you!

By | Foreclosure, Short Sale | No Comments

In 2007, the Mortgage Debt Relief Act was passed in an attempt to help the millions of homeowners who, due to the housing crisis and economic crash, suddenly found themselves in danger of losing their home to foreclosure.

The act has helped many distressed homeowners find solutions to avoid foreclosure and opened up options to them that were previously unavailable.

However, the Mortgage Debt Relief Act was always intended to be a temporary solution and it is now set to expire at the end of 2012. For distressed homeowners, this means that time is limited for you to take advantage of this program.

Time is running out. But there is still a chance to change your financial direction and avoid foreclosure.

Contact your local Realtor for more info.

Mirjam

May 27
0

Location, Location, Location: Historic neighborhoods

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

Living in the Netherlands, it is not unusual to live in a home built in 1700’s, thus about 500 years old. Think about Leiden, Zwolle and even for instance Zwartsluis. World wide you will find many historic neighborhoods, great places to live. As to Santa Rosa I am talking about the older part generally quite often referred to as the JC area.

Before buying a home in an older, historic neighborhood, it’s good to know how this affects the home owner. For the Netherlands, there is an organization for historic monuments, ‘Monumenten Zorg’. The goal is to preserve these properties that have historic value. Take the city of Leiden. Should you buy one of these homes, it’s not unusual to have your remodeling project limited on the outside as well as the inside. A new kitchen? Need a permit. Change of color on the outside and even sometimes the inside? Need a permit. Sidenote: this is extreme, even for Netherlands: it usually affects only the outside, then it’s called a “beschermd Stadsgezicht” -> Protected City Image (that’s the best I can come up with as to translation)

This is not the same for every neighborhood, take for instance the JC area in Santa Rosa, only the outside of a home is considered. The Cultural Heritage Board reviews proposed alterations for historic homes. A good resource is the Processing Review Procedures for Owners of Historic Properties.  Currently there are 8 designated Preservation Districts in Santa Rosa: Burbank Gardens, Cherry Street, McDonald, Olive Park, Railroad Square, Ridgeway, St. Rose and West End.

Bottomline… it’s prudent to do your homework before buying a home. Your local realtor is a great source of information.

Mirjam

 

May 13
0

Location Wanted: Rural, Views, Surrounded by Nature – the Boonies!

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

Looking for that perfect home in Sonoma County? Depending on what you are looking for, changes are it is not connected to a sewer system but has it’s own waste water system, called a septic system. About 25% of all properties have their own septic system. Without going into details as to upcoming and ongoing changes in the requirements for septic systems -see this link- it is important to know whether the property you are buying or selling has a working septic system. It is one of the inspections to do when purchasing a property with a septic system.

Over the years I have had several situations where either sellers would refuse to do a septic system before putting their home on the market, or buyers not seeing the need to do a septic inspection. Let’s just say that the buyer who initially wanted to waive that inspection was really glad afterwards. The system had some problems which would have cause failure in the future. On a recent transaction, the seller had to put in a sew septic tank since the septic inspection brought to light that the wall in the tank had a hole in it. Luckily the seller was a contractor who had the resources to do this quickly.

Before moving to Santa Rosa, I had never lived on a property with a septic system. My grandparent had a farm in Netherlands, they had a septic system but quite frankly I never knew much about that. The house we live in right now is depending on a septic system for waste water. It’s not scary, it part of living in a more rural part of Sonoma County and I think it a great way to recycle 😉 Sidenote: click here if you like to learn more about septic systems.

Currently I am working to put a property on the market in Franz Valley, a small home on 9 acres. It’s on a beautiful location, there are 2 ponds on the property and yes, the house is on a septic system. We are doing a septic inspection before putting the home on the market, a local company, BDK septic services, will first pump the tank and then inspect the system.

Bottom line, for buyers and sellers: do the proper inspections before buying or selling property, you will be glad you did;)

Mirjam

Apr 01
0

Disclosures – my neighbor is an …

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

Buyers beware! That used to be the case and to some degree it still is. When buying or selling real estate, disclosures are an important part of the transaction. The paperwork might feel overwhelming yet, finding things out after you bought the property, realizing you didn’t read the disclosures is worse. Or, as a seller not disclosing important material facts is a major cause of ongoing law suits. When I started out in real estate, one of the first transactions came with an interesting disclosure.  The TDS mentioned that about every 10-14 days, the police ‘visited’ a home across the street due to domestic issues. Deal breaker? No… my client contacted some neighbors and asked them how bad it was. All together it was something that was not a reason for him not to buy the house. Had he found out after close of escrow… the situation would have been different… Stuff like this is a ongoing reason for law suits.

That’s why we have disclosures, these are different per state/county.  In CA, sellers have to fill out statutory disclosures –The TDS is only one of them.

Sidenote: a buyer can not refuse or waive these disclosures required by law, you can find this in California Civil Code section 1103 (d). This means that ignorance is not bliss, so the waiver or refusal of these disclosures is void and not a valid reason to sue.

One other important disclosure is the Natural Hazards Disclosure, in CA a seller is required to provide this, this is done by providing a NHD report. One of these providers is for instance Property ID, there are others, personally I like this one since it’s easy to read and understand and very comprehensive. There are other reliable sources for this report.

These reports inform a buyer about natural hazards like flood zones, high fire hazard areas, landslide areas, protected species etc etc. All these important to know before you buy a property, it might affect insurance rates/policies, or possibilities to build a pool to name just 2.

When I moved to California, the family asked why we would move to an area prone to earthquakes. Our response was that 60% of Netherlands is below sea level, we simply exchanged natural hazards;) However, every so often, the Russian Rover causes flooding too 😉

Bottom line: always work with a real estate agent familiar with the local area and the local mandatory/required/custom disclosures and laws.

Mirjam

Feb 12
0

$ 8,000 Tax Credit, did you take advantage of it?

By | Foreclosure, Making Home Affordable, Sellers, Short Sale, Visit WineCountry, Wine Tasting | No Comments

Who doesn’t want to take advantage of Tax Credits? Remember the Federal Tax Credit programs offering $7,500 and later $8,000 to first time home buyers? A lot of Home Buyers did take advantage of it.

There are some hick-ups with the IRS as to claiming/repaying – see article LA Times -.  What if you  bought the house and ended up buying a house that was not the perfect fit?

Depending on what tax credit you used, it might be worth exploring what the consequences are for you, either selling and buying something else or turning the house into a rental.

The first one in 2008 -$7,500-, for those who purchased homes in 2008, was more like an interest free loan. It had to be paid back in 15 years. See link.

The second one in 2009/May 2010, didn’t have to be paid back but you had to live in the house for 36 months. For both programs, in case you either sell, loose the home to foreclosure, do a short sale, convert the home into a rental, i.e. it stops being your primary residence, you have to pay the credit back. There are some exceptions/rules. See link.

Sidenote: there were different programs for the purchase of new homes during that time. See link.

Depending on your situation, the option of repaying might not be that bad. It’s probably wise to talk to your CPA and discuss numbers with him, however, you might be pleasantly surprised. You may have losses or other situations that offset the ‘gain’ of the credit, if not, maybe paying tax on $8,000 is not the worst option. Remember there are  tax benefits of buying a home. In Sonoma County, home prices have come down a bit more, in general, we lost about 10% last year. Thinking about this, that will offset the fact that you have to pay back the credit.

And last but not least: Living in Sonoma County is great, the next Barrel Tasting weekends are the first 2 weekends in March, it’s the 34th one 😉

Mirjam