Realty Times - Your Home-buying Strategy

Realty Times - Your Home-buying Strategy

Realty Times - Searching For Your New Home

Realty Times - Searching For Your New Home

Inspect for Code Violations Before you Sell

By Ruben Gonzalez Jr

Prudential California Realty (DBA)

Code violations can extend the home-selling process or halt it altogether. Therefore, it’s good business to hire a home inspector before placing your home on the market.

A quality home inspector is well-versed in all local codes dealing with electrical, plumbing, building/structural and more, and can help sellers understand any code violations and the steps and costs necessary to meet codes.

Code violations have a way of popping up in paperwork. When the city records a code violation, a fee is assigned to the property, but because the violations don’t appear as a lien on a title search, it can be difficult to ascertain whether a sanction has been assessed that will delay closing.

According to Code Violation Services Inc., Windsor, Colo., violations can include the presence of garbage in a yard, maintenance issues, overgrown lawns, non-sanctioned improvements, safety issues or other dangerous items needing repair in a property.

Here are some of the most common inspection problems:

Bedrooms -- All rooms listed as bedrooms must have an operating window with 30 square inches of clearance for fire escape. Bedrooms also must have heat. If a home is listed with three bedrooms, and one does not meet both these requirements, it cannot be legally called a bedroom.

Furnaces and Compressors -- Rust in the heat exchange is a common problem that shows up on inspections. So is missing insulation where required by code at the time the house was built or improvement or replacement was installed.

Electrical -- Common electrical code violations include junctions not enclosed in a junction box, a lack of GFCI outlets in bathrooms and kitchens or reverse-polarity on outlets. These are inexpensive fixes that can hold up a sale.

Life-saving Equipment -- Smoke and carbon monoxide detectors are required by law in most states, and by not having them—or having the proper kind—it will be considered a code violation.

Plumbing -- Violations can include everything from dripping faucets to loose toilets to improper drainage.

Structural -- While these can be more expensive to fix, if they aren’t taken care of properly, they can prolong or even cancel a sale. Common code violations include rotting wood trim around windows and doors, rotten or delaminating siding and missing flashing on roofs or above windows and doors.

Extra Rooms -- Many who renovate basements or add sunrooms do so without permits. For the safety of everyone involved, be sure your improvements and additions are backed by the proper permits and resulting inspections.

Don’t hurt your sale because of code violations that can be easily fixed. Get an inspector, make the changes and enjoy the comfort your efforts bring when the closing comes to fruition.

Ruben Gonzalez can be reached at (562) 507-0754 or E-mail. 

Prudential (dba) is an independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.

Realty Times - Real Estate Outlook: Existing Homes Sales and Prices Rise

Realty Times - Real Estate Outlook: Existing Homes Sales and Prices Rise

Sellers: Itemize What You’re Taking With You

By Ruben Gonzalez Jr

Prudential California Realty (DBA)

Believe it or not, after months of searching countless homes, finding the perfect one, negotiating price and finally agreeing to a deal, a sale can fall apart over a disagreement about curtains.

When striking a deal to sell a home, it’s important that you are perfectly clear about what you are taking with you and what you are leaving behind. The general rule is that if something is attached to the structure or the ground, it is real property and stays with the house.

If removing the item would ruin or disfigure the walls, the item generally stays. If you need a tool to remove it, it stays.

Legally, these are called fixtures, which include everything permanently attached to the property such as a fence, built-in appliances, ceiling fans, flowerbeds and shrubs.

Conversely, if you can disconnect, unhook or detach an item from the home with bare hands, it’s free to leave when you do. This is known as personal property and should never be assumed to be part of the sale.

Items that fall into this category are furniture, potted plants, free-standing appliances and an outdoor grill.

A good rule of thumb is to not show your home with any fixtures you are planning to take. Replacing them is the better option.

Every real estate agent has a story about a deal falling through because of an argument about what a buyer thought was staying. For this reason, you should walk in each room with your agent and make a list of things that you will be taking with you.

If you decide to leave the curtains, chandeliers or are open to giving up some of the outdoor furniture, it may just help with a sale. People appreciate the notion of getting something for free, and a savvy agent will hint to a prospective buyer that fixtures and furnishing may be negotiable. Unless the items are really important to you, let them go with the home. Use them to get the price you want and then replace the items in your new home.

By itemizing and discussing all the things that stay and go at the outset, there will be no miscommunication on closing day.

Ruben Gonzalez can be reached at (562) 507 0754 or E-mail. 

Prudential (dba) is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.

Realty Times - Fixed Mortgage Rates Move Higher For Fourth Consecutive Week

Realty Times - Fixed Mortgage Rates Move Higher For Fourth Consecutive Week

Thinking About Co-ownership with a Friend?

By Ruben Gonzalez Jr
Prudential California Realty (DBA)


Friends often share holidays, vacation together and are there for all the important moments in life. So, why not buy a home together?

An increasing number of consumers are considering joint ownership. Such as transaction makes sense, as it can help those who may not have been able to afford a home on their own, it gives each owner a real estate investment, and it can even strengthen the friendship.

But the opposite could happen as well. Friends can feud over the most trivial of things, placing the long-term housing investment at risk.

Here are some tips for surviving co-ownership with a friend.

1. Be sure before agreeing to this life-altering decision that all parties are willing to disclose their financial information, agree upon the type of home and location they are after, and are truly comfortable with living with one another.

2. Consult with an attorney: A contract between the parties is vital, as is listing each person’s name on the deed and the mortgage papers. The percentage of ownership must be clearly stated in the contract, including details of each person’s share of the down payment and the way in which mortgage payments will be divided. This sets the stage for deciding each one’s share upon sale.

3. Get pre-approved for a mortgage: Mortgage companies aren’t always thrilled with lending to two unmarried or unrelated people. Odds are those buying a home will need to jointly qualify as co-borrowers on a single mortgage in order to purchase a property held in tenancy in common or joint tenancy.

4. Understand each other’s wants and needs: House options, mortgage rates and contract terms will be contingent on each individual’s credit history, financial health and both short-term and long-term obligations, so it is smart to discuss all of this ahead of time. During the house-hunting stage, the friends may have different ideas on what they are looking for. It’s always a smart idea to sit down and list the most important features to each and figure out what each is willing to give up.

5. Have an exit strategy: Jobs change or a surprising romance could evolve where marriage will soon be in the picture. What happens to the house then? This is something that should be agreed upon before the house is bought.

Once everything is agreed to and a mortgage commitment is in hand, things still aren’t easy. It’s hard enough finding the perfect home, but to have to find the perfect home for two is even tougher.

Friendships can stand the test of housing issues, so don’t be scared off; just make sure that when buying any real estate with friends that you don’t let the friendship cloud your judgment.

Ruben Gonzalez can be reached at (562) 507-0754 or E-mail.

Prudential (dba) is an independently owned and operated broker member of BRER Affiliates, Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.

Realty Times - What Do You Buy When Nothing is Perfect?

Realty Times - What Do You Buy When Nothing is Perfect?

Realty Times - Real Estate Outlook: Housing Affordability Posts Marginal Decline

Realty Times - Real Estate Outlook: Housing Affordability Posts Marginal Decline

It’s a Buyers’ Market for Real Estate Investors, too

By Ruben Gonzalez Jr

Prudential California Realty (DBA)

Turn on any financial news program and at some point you’ll hear the experts extolling the virtues of diversification. Real estate, even through the market downturn, has long been considered a conservative, long-term strategy to growing wealth.

In fact, that very downturn has created a historic buying opportunity for potential homebuyers and investors alike. The combination of lower home prices across American and historically low mortgage rates, two essential factors that usually don’t trend in the same direction, have triggered a buyer’s market in many areas of the country. For real estate investors who want to rent their properties, this can make the difference in achieving positive cash flow sooner or right off the bat.

While some seasoned real estate investors make it look easy, to be successful, beginners should follow some basic principles.

• Learn all you can. Before committing your cash, you should have a fundamental understanding of real estate. For example, be aware that, in general, investment properties are not liquid investments. Barring exceptional circumstances, real estate does not sell at a moment’s notice. It could take days or months to sell a property, depending on the strength of the market in a particular region.
• Consider cash flow. You’ll need to have enough capital on hand to cover any short-term losses due to vacancies between tenants.
• Start small. Look into buying a condominium, single-family home or a duplex. Leave large apartment buildings and commercial properties to the pros.

• Inquire at the local Chamber of Commerce about companies relocating into or out of the area. Company movement is one indicator of demand for rental and/or office space.

• Find a property that will be in demand. Look for a moderately priced home with three or four bedrooms, two bathrooms, and a garage that sits on a quiet street.

• Research the property. The most common way first-time investors lose is by failing to investigate a property thoroughly. Look beyond the front door. Investigate the reputation of the school district, the crime rate, and plans for expanding a nearby highway or developing vacant land. Ask a local real estate professional about the area, its history, and how fast (or slow) properties are moving.
• Inspect the home you’re considering for signs of water damage, such as stains on the ceiling and crinkling or gathering wallpaper; open and close every door and window; and check all electrical sockets by plugging in an appliance. Get an independent home inspection, roof inspection and termite inspection. Unexpected repair costs can eat away your cash flow. Because even the best inspection can’t always predict problems, try to set aside some of the rental income for unexpected repairs.
• Spend time driving the streets of the neighborhood noting the condition of other properties. Are lawns maintained? Are roofs in good shape? Are homes kept up?
• Be ready to make fixes quickly and respond to the renter’s needs. If you’re not prepared to be a hands-on landlord, consider hiring a property management firm.
• See your tax advisor for related planning and laws that can affect your investment decisions.

Remember, investing in a property is much different than living in one, and while emotion and attachment can be prime motivators when it comes to homes, it is return on investment that counts when investing in real estate.

Ruben Gonzalez can be reached at (562) 507-0754 or E-mail. Prudential (dba) is an independently owned and operated member of The Prudential Real Estate and Relocation Services, a Prudential company. Equal Housing Opportunity.