Broker LA Realty

What is Condominium Home Owners' Associaton Fee?

Sun, 17 Mar 2013 17:45:00 +0000

Condo Home Owner Association fee which commonly referred as HOA fee or HOD is the monthly fee that a condo home owner must pay every month to a company that is responsible for maintaining the condo complex. This monthly fee is usually charged towards the fire insurance, water, and maintaining common area of the complex. The HOA company may charge some extra fees and add earth-quick, and flood insurance. It is essential for a condo buyer to study the bylaw and clearly understands the services that will be provided. In addition to the maintaining pool, jacuzzi, and gardening, there are some depreciations that will inquire cost to repair. For example: any necessary repair of the roof, termite infestations, or plumbing issues, elevator repairs. Therefor, a condo owner must contribute towards the repairs. This contribution maybe required one payment or multiple payments.

Appraisal shortage in a residential real estate transaction

Wed, 07 Nov 2012 19:50:00 +0000

Last two transactions landed in escrow have led me to write about the appraisal report and what if the report shows a lower suggested fair market value.

Apprisal is a part of all real estate transactions that a buyer must obtain loan from a bank. In some events the report shows property value slightly higher or lower than the negotiated purchase agreement. In the case that report shows higher value for the property, the bank will be happy to lend money for the amount requested and the buyer will be happy to learn that s/he is buying a house that actually worth more than the negotiated price. However, the problem raises in the event that appraisal report shows lower fair market value for the property with respect to the purchase agreement.

In such a case, the bank will ask the buyer to conterbute the difference money between the report and the purchase price. This can create issues. The buyer must have enough reserve fund to contribute the difference amount and the seller will be asked to reduce the asking price.

Will the Buyer or Seller pays for Pest Inspection Report?

Tue, 23 Oct 2012 22:35:00 +0000

If you or your selected real estate agent using the standard CAR residential purchase agreement to make an offer on a residential property then you should know that there is a form titled “wood destroying pest inspection and allocation of cost addendum”. This form usually goes with the residential purchase agreement in addition to disclosure regarding agency relationship. It is important to note in this form in the line 2.A requires parties to select who will pay for the inspection report and the report will be prepared by which company. What is important for the buyers to know even though there is an option to ask seller to pay for the report and select the inspection company, it is not really in buyer’s or seller’s favor to make the seller the party who pays and selects the company. Because there is a delicate situation here that might make the seller liable for the future termite issue or it may cost to the buyer additional expenses. Let’s not forget that pest inspectors are certified by their state and they follow regulations and state required rules, so we are not suggesting that there will be any intentional improper report, however if the selected inspector by the seller miss any issue on the report, it can create an idea which that was intentional because there is a conflict of interest for the seller and the termite issues. Therefore, it is highly recommended the buyer to select an inspector that is neutral to the seller and the buyer pay for it.

Lehman's Archstone is touching the peak through the largest IPO

Fri, 28 Sep 2012 21:45:00 +0000

The fact that Lehman Brothers Holdings Inc. spent $22 billion on the purchase of Archstone Inc. (ASN) caused it to sink at a time when the property boom was on. As of now, the bank is trying to sell a real estate investment trust’s initial public offering. They are trying to sell this to the apartment owner at another peak like before. You must be hearing too much of mortgage news lately, but you can’t overlook what’s been happening in other sectors.

The plan was announced by Archstone recently. This was done in the wake of the US apartment REITs making a record. It followed an almost 300% rally since the month of March 2009. The increases in the prospect rent are expected to slow down because of the Federal Reserve’s decision to push the mortgage rates to record-breaking lows and make the Americans purchase more homes. A drop of 2.9 percent has been noticed in a Bloomberg apartment REIT Index. This is said to be the largest drop in the index since the year 2008.

Lehman has always been trying to extract itself from the property investments. The property investments are said to range from right from the Detroit office towers to the condos in Hawaii. This was to help raise an amount worth $53 billion in order to pay off the creditors. There is news about Lehman preparing to retain some of the holdings till the year 2015 so that they could capitalize on the recoveries in the residential as well as the commercial markets. The eighth largest apartment manager in the US, Archstone, is pacing up the best way it can. It was the month of March 2012 that the non-functional investment bank found its way out of bankruptcy. They gained full control over Englewood in the month of June 2012. They had to endure a tough protest from the former investors. The protest also came from the billionaire Sam Zell’s Equity Residential.

It is reported that Lehman paid a whopping $3 billion to buy the rest of the 53% of Archstone that wasn’t owned by them. This happened 5 years after the purchase and assistance of the REIT takeover. The REIT was known by the name of Archstone-Smith Trust then. In an August 23rd 2012 note, Rod Petrik, an analyst with Stifel Nicolaus & Co. in Baltimore said that there is a possibility of a raise worth somewhat between $3 billion and $4 billion through an initial public offering.

This would make it the largest US initial public offering since the sale of stocks worth $16 billion in the month of May. According to a data reported by Bloomberg, this is also twice the size of the largest initial US REIT share. The Santa Monica, California based owner by the name of Douglas Emmett Inc (DEI) is reported to have raised a whopping amount of $1.6 billion in the year 2006 offering.

As of now, the fundamentals are working very well all over the country, but the growth rate is facing deceleration is what is believed by Richard Anderson, an analyst with BMO Capital Markets in New York.

Soon comin up a Beverly Hills Studio for Rent

Mon, 13 Aug 2012 05:05:00 +0000

Good news for those who contacted me before looking for a studio or one bedroom apartment located in the city of Beverly Hills.

It is certain now that we will have a vacancy in out Beverly Hills Building on the 240 South Reeves Drive, if you have been waiting for the vacancy, please contact me because soon I will take applications for the studio. The exact price for the studio will be disclosed on the future ads.

There will also a vacancy in out Beverly Apartments building in Pico and Robertson. This is a 2 bedrooms and 2 bathroom apartment, located at second floor with a balcony facing the backyard. There is an elevator in the building in addition to the stairways. The price for this unit has been set already. Please feel free to contact us because we are taking the applications now. The apartment will be available for viewing after August 23, 2012.

How important is to follow up with your transactions closely until it ends?

Tue, 07 Aug 2012 23:05:00 +0000

A few years back, I was representing a well respected client who was buying a bank owned home (foreclosure) in cash. I was following up with the transaction in every step until the last step which was sending the closing funds to the escrow. The escrow was supposed to close two days after that day.

I received a phone call requesting my client to wire the closing funds to escrow. Thus, I contacted my client and ask her to do so. She went to her bank and the banker told her that she will not be able to wire such huge amount of money at that time because she made a large deposit the day before. However, the banker suggested providing a cashier’s check to her so she would be able to mail it to the escrow. I don’t know how and where the confusion occurred which the buyer mailed the cashier’s check to the bank’s address instead of escrow. A few days after she mailed the check, I contacted the escrow and asked if they received the cashier’s check and they said no!!!!

Then, I contacted the buyer and she emailed me the proof of signature that bank’s employee signed when received the cashier’s check. Therefore, I contacted the bank’s employee and ask him what he did with the cashier’s check. He said, he realized the cashier’s check should go to the escrow which was the bank’s client, so he was kind to mail it to the escrow. He suggested me to wait a few more days until escrow will receive the mail. A few days were long enough and it took about two weeks. Finally, escrow did not receive the cashier’s check. If you remember this was a REO home and the seller was also a bank. I contacted the seller’s agent and explained the situation but the agent said that they can not wait longer than a month. I contacted Bank of America which was the cashier’s check originator and requested to void the lost cashier’s check and reissue another one so we could close the escrow. They said they can void the lost cashier’s check but they cannot issue a new cashier’s check until 90 das passes from the date the first check was originated. Ninety days was a very long time and the seller would not wait that long. The seller requested cancelling the escrow which we did cancel and waited 60 more days passed so the buyer was able to recover her fund. However, the lesson was learned that follow up with every transaction until it is closed.

Some Realtors need more training.

Mon, 06 Aug 2012 22:05:00 +0000

I was showing property last week to a client of mine. They asked me to go with them and see a house that they would like to consider for purchase with a possibility of making an offer. After I saw the house, they told me that they have seen this house the week before when there was an open-house. The agent who had hosted the open-house offered her service to them, but my client denied her request and said that they already have a broker who will represent them. Yes, that was correct. I was their broker. I have been referred to them by their relative who is a long time friend of mine.

First time, when we have met they wanted me to put up their home for sale in order to buy a bigger size house. So, I did. I advertised their home and thankfully the home went to escrow with multiple offers. Then, they started to look for a desirable house. Back to the house, the house that they showed me was exactly the house they would want to buy from many aspects. They asked my professional opinion which I replied from market point of view the price is very reasonable and obviously the seller is motivated to sell. But, the issue appeared when the seller’s agent contacted me and asked about the offer. This was the same agent who was trying to solicit my client, remember?

I expressed my clients’ interest to purchase the house and asked only one question from her. I asked why this house has been on the market for more then six months and the price reduced over 50 thousands dollars. I still did not complete my sentence that the seller’s realtor started blaming her client for not always allowing her to show the property to prospect buyers and they have not being very cooperative with her. I listened to all her comments and went back to my clients and said this is a good home to buy. However, they were not certain that they want to write an offer. So, I told them it is better if they will take their time to think about this purchase. Because buying a half million dollars property worth the time to think. The seller’s realtor contacted me and asked about the status of my clients’ intention to purchase. I told her that they are still concern about the fact that the house was on the market for a long time especially when their home was sold in less than 30 days in the same market. Thus, they will need time to think about their options. I was talking and explaining the situation, which I realized this real estate lady has no patient to listen to me and before I complete my words she was interrupting me. Al though, I was not offended to see such a maladaptive behavior, I was just sorry to see a seller hired a real estate agent who doesn’t know the real estate 101 concept and then how she would be able to sell their house for the highest price and in a shortest time regardless of real estate market condition.

How to Get Ahead in New Construction

Mon, 30 Jul 2012 22:40:00 +0000

By Andrew Hill @ austinhomelistings.com

What’s the secret to getting a good deal on new construction? Is it waiting until the market is just right? Maybe. Is it knowing the lesser-known areas to buy a home? Perhaps. But more important than all of the other small facts and gimmicks to getting a good deal on a newly built home is the advantage you have when hiring a Realtor to help you buy new. I know that may sound a bit backwards, but hear me out. Having your own Realtorbrings a range of skills and knowledge to the transaction that the average, and even the above average, homebuyer simply doesn’t have. And have you ever considered who actually foots the bill for Realtors when buying new?

It may come as a surprise, but in nearly every new home transaction, the builder is the one responsible for paying for both his agent and yours. It may sound hard to believe, but such is the case in most situations. Why does the builder have to pay for the buyer’s agent as well as the listing agent? It’s to help protect buyers like you who want to get the best deal on a home and would potentially skip a Realtor in an effort to save on the commission costs. So the truth is, you already have a prepaid expert who is ready to help you.

Unfortunately, when certain people hear that the builder already pays for their Realtor, they jump to another incorrect conclusion. What I mean is, after hearing that their builder will pay for their Realtor, some buyers approach the builder without an agent of their own, expecting that the builder will lower their price out of gratitude. The buyer assumes that because the builder no longer has to pay two commissions, he will deduct the commission amount from the price of the new home. But what every buyer needs to remember is that this builder has tirelessly worked on this home and is not about to cut the price simply because it would be in the best interest of the buyer. That’s not to say that your builder may not be a friendly person, it’s simply business.

Another common mistake that homebuyers make is working directly with the listing agent. Although he/she is a licensed expert, that does not mean they are working for you and your best interests. Remember, this agent has been hired to get the best deal for the builder, so you cannot expect anything different, whether you have representation or not.

With this new information, what will your next move be? I’d suggest hiring a Realtor! After all, in this situation, an agent’s skills are truly a use them or lose them commodity. So, whether you’re planning on buying new or resale, be sure to contact Broker LA for quality real estate service.

High-Speed Real Estate

Tue, 29 May 2012 22:10:00 +0000

By Parker Hill @ New Home Source

As the market ebbs and flows, there is one thing that remains fairly constant and that is: engaging in real estate takes time. Even if your home sells on the same day you list it or it only takes you one day to find the perfect home, there are many other factors involved. There’s paperwork, the moving in and out, meeting with a lender- I think you get the idea. However, the one part of real estate that should never slow you down is the type of Realtor you are working with.

As the internet age has dawned, there has been a clean break between the agents of yesterday and the agents of tomorrow. And if you want to be on the successful side of your real estate transaction, it’s important that you work with an agent who is on the forward thinking side of the technology curve. The following are great new methods that tech-savvy agents are incorporating into their business model. Be sure to check for these features when determining which agent you will work with, as it can make all the difference in the world.

Website Appearance. Is it easy to navigate? Can you find their contact information easily? These are the types of questions you need to ask about the website. You want to make sure that those who will end up on your agents website will be able to contact them and search for homes easily. Whether buying or selling, if your Realtor isn’t effectively reaching the customers on the other end of the deal, it will always be more difficult to complete a transaction.

Photography. In the days where people would search for listings while driving or in the physical MLS, pictures were not nearly as important. But in an age where the consumer wants to see the ins and outs of a home before taking a physical tour, you’d better be sure that your agent has posted quality pictures of your home. This doesn’t mean your agent has to have the latest professional camera. But it’s a good rule of thumb to stay away from those who post one or two poorly staged pictures taken from a pixilated cell-phone camera.

Home Search Option. Your agent should have a clearly defined section on their website to allow visitors to search for homes. This is extremely important as more than 9 out of 10 homes sold today begins with an online search. With those kinds of figures, you need to make sure your home is getting plenty of internet exposure. A good map search or a search function that allows visitors to select specific search parameters is normally a safe bet.

Modern-day real estate is as fast-paced as any other industry of today. To effectively close a deal, you need an agent who is ready to give you fast, tech-savvy solutions. To work with a real estate team that knows how to help you in the online realm, be sure to contact Los Angeles RealEstate Experts!

Not all the Realtors working seven days a week!

Mon, 14 May 2012 18:45:00 +0000

My client (a home buyer) decided to see a few houses for sale on the market last weekend. I sent emails to the listing agents and requested showing instructions. A few replied with the instructions and the exact time for showing. Of course these were the houses listed on the MLS and there was no indication of the property status weather it is vacant or occupied or there is a supra (ibox) of combo box placed for agents, etc.

There was a house that my client decided to see. I did not have a clue how to get into the house. I drove without any information weather I will be able to open the house for my client or we have to come back which it would look very unsatisfying to everyone.

I started calling to the phone numbers listed on the MLS and I was able to reach someone in the office. She first suggested to call to the agent’s cell-phone. I said, I am not able to reach anybody. I asked her to try and find one of the listing agents. The house was listed with two agents. She was kind enough to take my request and said she will call me back with the showing instructions. My client and I was at the property and saw that there was an open house. I showed the house which by the way was a REO ( Real Estate Owned by Bank), and we left. After two days passed, I received a call from one of the listing realtors. She said, she is responding to my showing question. I said, that question was time sensitive and that was two days ago. She said, I must understand that Not all realtors are working seven days a week. I am against or disagree with her working schedule but I though if I would be a home seller and I wanted to sell my house with an real estate agent, I would rather to work with a realtor who works at weekends because my experience in the field shows that most home buyers want to see homes at weekends not during the week days.