San Lorenzo Valley Real Estate Blog

Patti Lyles

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Displaying blog entries 11-20 of 35

Dog's carpet accident could cost thousands to fix

Thursday, January 17, 2008
by San Lorenzo Valley
 
Why must tenant pay to recarpet whole house?

Thursday, January 17, 2008

Question: My husband and I, along with our two small children and one dog, recently moved out of a townhome that we lived in for 2 1/2 years. The property manager is telling us that due to the use of a store-bought steam vacuum cleaner to clean up where the dog had an accident, the carpet in the entire house has to be replaced. He said it will cost us within the vicinity of $1,400-$1,800. We put down $600 for a deposit and $400 for the pet deposit. Is he able to do this?

Landlord attorney James McKinley replies:

You are responsible for any damage done to the rental property by your pets, guests, children or yourself. In most cases, a security deposit can be used for three things: to remedy defaults in payment of rent; cleaning; and to repair damages beyond normal wear and tear.

Even if not legally required in your area, it would have been helpful if your landlord did a pre-move-out inspection with you. At that time, you could have been given a list of any cleaning or repairs necessary in order for your security deposit to be returned. Assuming you were notified that the pet damage had to be remedied, you were well within your rights to use any type of carpet cleaner to attempt to remedy the situation. I do not see how a store-bought steam cleaner could make the situation any worse. If you could not properly clean the carpet, the manager could have the carpet professionally cleaned, and deduct those cleaning costs from your security deposit. If your dog caused so much damage that the carpet could not be cleaned, you would be responsible for the replacement cost of the carpet.

However, your landlord should prorate the cost of deduction for the replacement carpet, based on the age of the carpet. In other words, if carpet in a rental unit should last 10 years, and the carpet was 2 1/2 years old, your landlord should deduct only 75 percent of the cost of the replacement carpet from your security deposit, and mail you an accounting and receipts as legally required after you vacated the rental unit. That said, it is probably unreasonable for the landlord to charge for replacing carpet in the entire house.

Tenant attorney Steven Kellman replies:

In my experience, carpets in rentals generally have a useful life of 10 years in normal use. Changing them after only 2 1/2 years is very unusual. You should not assume the carpets were new when you moved in. While many landlords may not agree with this logic, I would suggest you propose a more modest charge to the owner and I will give you some ideas on negotiating strategy. Since you were there 2 1/2 years, you could prorate the cost of replacement at one-tenth of the cost per year by adding the prior years of carpet life to the time you lived there.

For example, if the carpet was 3 1/2 years old when you moved in, added to your 2 1/2 years makes it 6 years old. This means your responsibility would be limited to the balance of carpet life (four years) or only 40 percent of the replacement cost. It may have been 10 years old when you moved in, meaning the carpet used up its life when you first began living there. If it was in "overtime" (i.e. past 10 years), then it essentially had no value left and you would not be responsible for any damages whether caused by normal use or not. Therefore, it becomes important to know when that carpet was installed.

Using a store-bought carpet cleaner should pose no problem except that you must take care to extract the water those machines put down. They are called "steam" cleaners, but they generally do not use real steam and have been known to cause damage if used improperly. They use warm water to clean, which, if not extracted, can cause damage or mold. The deposits you gave to the landlord can be used for cleaning and damages, including replacing a damaged carpet. If you do not agree with the landlord's assessment of the carpet, you can have a carpet cleaning professional take a look at the situation. Many times, they can clean a carpet the landlord believes is ruined.

the landlord has met their habitability standards.

Best way to eliminate roof algae

Tuesday, January 08, 2008
by San Lorenzo Valley
 

San Lorenzo Valley roof algae issues are at a all time high

Applying 3-ingredient solution preferred to high-pressure wash

Tuesday, January 08, 2008

Q: We have a house that was built in 1979, in a neighborhood of other houses all built around the same time. Our house has a gray composition shingle roof that has developed large dark stains in many areas. Other homes in the neighborhood with gray or charcoal roofs also have it, but the ones with light-colored roofs don't. Is it algae? If so, would zinc strips help? --Shirley L., via e-mail

A: It's very likely that the staining is indeed some form of algae growth, I drove around Boulder Creek adn took several photos. I contacted the Asphalt Roofing Manufacturers Association to confirm that this is their opinion as well.

As to how to deal with it, their recommendation is as follows: "Algae discolorations are difficult to remove from roofing surfaces, but may be lightened by applying a solution of chlorine bleach, trisodium phosphate (TSP) and water. Solutions for these ingredients may vary between shingle manufacturers and depend on the amount of discoloration. Solutions range from one cup TSP, one gallon bleach and five gallons of water, to one cup TSP and 2.5 gallons each of bleach and water.

"First, gently disperse this solution on the roofing surface. Use normal precautions for handling bleach. Be sure to apply it carefully to avoid damage to other parts of the building and its surrounding landscape. Avoid scrubbing the surface, as this friction may loosen and remove granules. If possible, always work from a ladder and/or walkboards to avoid direct contact with the roof surface. Observe all possible safety precautions when working on or near the roof. Finally, rinse the solution from the roof by gently spraying the surface with water. Be warned that this solution's application and rinse process will make the roof surface slippery and potentially hazardous to walk on during treatment.

"High-pressure washing systems for algae removal should not be used. The effectiveness of such cleaning techniques are only temporary, and discoloration will likely recur."

Opinion varies somewhat on the effectiveness of zinc strips, which release small amounts of zinc oxide onto the roof whenever it rains. At best, the zinc strips will help inhibit additional algae buildup, but will not prevent or kill it.

If you'd like to give them a try, first follow the recommended cleaning outlined above. Then, after the roof is completely dry, apply the zinc strips at the top of the roof, just under the ridge shingles, leaving about two inches of the metal exposed to the weather.

Is it common to pay the buyers closing costs?

Tuesday, January 08, 2008
by San Lorenzo Valley

Q: My agent told me that to sell my property faster I should offer to pay the closing costs for the buyer. It seems that my agent is aiding the buyer over doing his job and helping me sell. I feel like he should be getting the best sell price for me. Is it common for the buyer to pay closing costs?

A: When you're in a very slow market with plenty of competing homes for sale, you have to differentiate your house from the other houses on the market. One way to do that is to offer a cash bonus to the agent who brings the buyer. Another way is to offer to pay some or all of the closing costs for the buyer.

There are other ways to market your property and make it seem better and different than your competitors. It sounds like your agent has assessed the local real estate marketplace and found that your property isn't as competitive as it should be. Paying the closing costs is one way to boost your profile. But I suggest you might also want to offer a cash bonus to the buyer's agent. That, at least, will ensure that every eligible buyer sees your property.

Now, let's talk about your agent's job. You hired your agent because you supposedly felt that he or she knew more about the real estate market than you did and would put in the time and effort necessary to get it sold.

But you have to help out your agent by pricing your house competitively. Your agent is supposed to get you the "best price" -- but that's the best price in a particular neighborhood at a given point in time.

Right now, we're in the worst seller's market in more than a decade. In fact, some industry observers believe we're in the worst housing market since the 1940s. If you want to sell, you'll have to drop your price or offer up some bonus to the buyer. That's where the closing costs come in.

Seller didn't mention loud neighbor

Tuesday, January 08, 2008
by San Lorenzo Valley
 Does buyer have recourse against seller for nondisclosure of 'constant screaming'?

Tuesday, January 08, 2008

 

Q: I bought a house several months ago. The sellers didn't mention the tremendous amount of noise that the neighbor makes.

Almost every Sunday, the neighbor next door (it's a duplex, so we share a wall) screams while watching sports, and not just when his team makes a touchdown or a home run either -- it's constant screaming every couple of minutes for the entire game.

After the game, he blasts Pink Floyd's "Money" really loud, and keeps screaming the "Woo-woo" part long after the song is over. I've asked him to keep it quiet, especially because I work rotating shifts and sometimes need Sunday afternoon to sleep. His answer was to scream louder. Since our last conversation, I've noticed trash thrown in my yard.

I contacted the local code-enforcement officer, who said that the law covers only noise from animals, car stereos or construction. So, technically, the neighbor isn't breaking the law, although I still think my right to peace and quiet and a decent amount of sleep should outweigh his right to make noise.

Was the seller required to include the noise in the disclosure? Is there any action I can take against either the seller or the neighbor?

A: I'm getting sleepy just reading your letter.

While the seller could have disclosed the neighbor issue, most seller disclosure laws might not cover this specific issue. You could argue that the seller should have disclosed that there is a problem with noise transmission between the units, but you really will need to talk to an attorney in your area to determine whether you have a seller disclosure issue.

Of course, it's possible that your seller was never home on Sunday to watch sports, or that he and your neighbor were good friends who cheered through the games together.

Do you have a homeowners association? The HOA may have rules about noise that your neighbor may be violating. You may have some other options under your municipal laws that you can discuss with an attorney in your area.

What else can you do? You can put up some soundproofing between your wall and your neighbors that will dampen the noise and allow you to get some sleep. That may be pricey, but it might help your neighbor's voice fade into the background. There are companies that specialize in noise issues and can help you reduce the amount of noise that comes from the neighbor's apartment.

But ultimately, you may have to sell your home. If you can't fix the problem and the neighbor refuses to keep the noise level down, you can sue your neighbor to get a quiet night's rest. You can also consider moving to a new place where you don't share walls with anyone else.

2 Home-inspectors have disagreement

Wednesday, October 24, 2007
by San Lorenzo Valley

Recently a couple considered buying a home in the Santa Cruz Mountains of California. Before writing up an offer, they reviewed the seller's disclosure package. The package included the seller's disclosure statements about the property's condition, a termite inspection and a home inspection. Based on the fact that the property appeared to have no significant defects, the buyers made an offer and the seller accepted.

Subsequently, the buyers decided to hire their own home inspector, just to make sure that the seller's inspectors hadn't missed anything. The buyer's home inspector made a more thorough examination of the property, which revealed that the property had serious drainage problems.

Based on the new information, the buyers asked the seller to lower the purchase price by the amount of the repair estimate. The seller stood by his inspector's opinion and refused to concede anything. The deal fell apart.

Be aware that if the buyers in the above scenario had purchased the property in its "as is" condition and without an inspection contingency, they could have risked losing their deposit if they withdrew from the purchase without the seller's agreement. Contracts differ regarding methods for dispute resolution and who is entitled to the deposit when a purchase transaction falls apart.

Also, some states don't have seller disclosure laws. However, the trend nationally is moving in the direction of requiring sellers to disclose known defects, as is the case in California. Local custom usually dictates whether or not sellers have inspections done before marketing their homes.

In cases where inspectors disagree, it's usually best to try to reach an acceptable middle ground rather than let the deal fall apart. Otherwise, both parties are back at square one: the seller looking for a new buyer and the buyer searching for a new home to buy.

HOUSE HUNTING TIP: One way of solving such problems is to hire a third inspector to look at the property. In this case, it's best to find someone who can give an accurate and unbiased opinion. A contractor who's looking for work may have difficulty being objective.

Even if two inspectors agree there's a problem with a property, the recommended remedies may vary significantly. This can affect the cost of repairs. In the case of a home sold in nearby Piedmont, one inspector thought the roof was on its last legs. Another believed that it could be repaired to extend the life of the roof a few years. The buyer wanted a new roof. The seller was willing to pay for repairs.

They reached a compromise when the seller agreed to credit half the cost of a new roof to the buyer at closing. This seemed fair since the buyer knew when he went into contract to buy the home that the roof wasn't new.

Even when inspectors are in complete agreement about the severity of a problem and what needs to be done to fix it, estimates to complete the repairs can vary widely. The busiest and best contractors are often the most expensive. Buyers are inclined to ask for the most expensive bid, while sellers usually want to pay as little as possible.

A compromise can often be reached if the seller is willing to credit the buyer an amount based on one of the lower bids. The buyer can then have the work done after closing, using whomever he wants to do the work. He can even make up the difference in cost and use a more expensive contractor.

THE CLOSING: Just make sure that all bids obtained to resolve inspection issues are from reputable contractors.

Neighbors squabble over retaining wall

Friday, October 19, 2007
by San Lorenzo Valley
 Should homeowner tear down wall or provide easement?

Friday, October 19, 2007

Patti Lyles http://www.FeltonProperty.com 

Q: My neighbor recently extended a retaining wall for a driveway and encroached upon our property by a distance of 12 inches by 9 feet. We had our property surveyed three weeks after the construction and discovered this.

Our neighbor proposes that we settle the problem by providing him with an easement for this use. What would be the implications in this for us?

A: The issue you face is quite common. Frequently, neighbors do not know the exact location of their lot lines. Other times, contractors doing work for the homeowners fail to follow the property lines when making improvements to homes.

The most common problem between neighbors has to do with the installation of fences. Depending on the configuration of the lots, bushes, trees, other obstacles and the location of the home on each lot, neighbors frequently pick a line that usually ends up on one neighbor’s side of the property by a couple of inches to a couple of feet.

If your neighbor had come to you to ask whether he could install the retaining wall on part of your property, would you have agreed? If you would have been fine with his request, you have nothing to lose with giving him the easement. If you would have objected, you now have a decision to make.

The easement your neighbor requests will give them the right to keep the retaining wall on your property without your ability to have them remove it in the future. If you’re planning to sell your home, the easement would also make sure that your buyer couldn’t require your neighbor to remove the wall.

If you go the easement route, you need to make sure that there are provisions in the agreement that state that the neighbor is required to maintain the wall and pay all costs associated with the wall. You could have a provision in the document that would require your neighbor to remove the wall in the future if it needs replacement.

A real estate attorney named Earnest Fox in Santa Cruz can assist you in the drafting of the easement agreement. Your neighbor should pay all of the expenses having to do with preparing the easement agreement and having the document recorded.

One issue that you have to consider is the impact the wall has on your property. If the impact is not noticeable, there may have been no harm done by your neighbor. If your lot is narrow and the impact of the wall is large, and having the wall could alter the value of your property, you’ll need to decide how to proceed with your neighbor.

Now, let’s look at the other side. Assuming that you would not have allowed your neighbor to build the retaining wall on your property, even if your neighbor had good reasons to do it that way, you can now require the neighbor to remove the wall from your property or request that he pay you a lump sum for the privilege of having the wall on your property.

You can even structure the easement agreement to have your neighbor pay you an annual fee to keep the wall on your property. If he innocently built the wall on your property, you have him in a rough spot. It’s probably would not be very neighborly of you to demand payment from him or to have him remove the wall, particularly if it does not impact your home, but you might have the right to do it.

You have to decide what you want to do. If your neighbor made an innocent mistake, and you charge him for the easement or make him take down the retaining wall, he could be a less-than-friendly neighbor for many years to come.

On the other hand, if your neighbor just decided to build the wall and didn’t even consider whether he would be on your property, and you’re not all that neighborly to begin with, you may make a different decision.

For more information on your legal rights or to draft the easement agreement, consult a real estate attorney like Earnest J. Fox of Santa Cruz

Death of Father, inherited 1.2 million dollar home in Santa Cruz, what to do?

Tuesday, October 09, 2007
by San Lorenzo Valley

Q: My father died late last year and left a piece of property to my two sisters and me. Ownership is to be divided equally. The property is a house on Opal Cliffs in Santa Cruz, California.   Local real estate agents have told us the property is worth $1.2 to $1.5 million. We all live too far away to use or manage the property and have decided to sell. However, one sister insists on doing nothing this year and waiting until next spring to sell. She says she heard one should wait at least a year to sell inherited property and that it "feels right" to wait.

Can you give me some reasons why we should either wait or sell immediately? My own feeling is that the taxes for this property are going to be very high once my father's "grandfathered" tax rate lapses.

A: First, I'd like to offer my condolences on the loss of your father.

Although I'm sure you and your sisters are missing your dad, I can't think of any reason why you wouldn't want to put your dad's house on the market now--when vacation homes are selling like hotcakes. The carrying costs (taxes and maintenance) on a house that expensive could be costly, especially if none of you are near enough to use it regularly and make sure that small problems don't turn into big issues.

I think the advice your sister is remembering refers to individuals who have experienced a huge trauma, like the death of a spouse or partner. In those cases, if the individual can afford to wait, it is a good idea to let a year go by while he or she adapts to the new circumstances of a new life.

In your case, you won't gain anything by waiting a year to sell this property. You have inherited the property at the current market value (which may even be able to be adjusted to whatever price you sell it for this spring). That means you would pay no capital gains tax on your inheritance when you sell.

And after the expense of selling it (broker's commission, transfer taxes, etc.), you would each pocket a significant amount of cash.

I think that you should sell now, especially since interest rates might rise significantly in the next year, which could dampen interest in an expensive vacation property. But it doesn't really matter what I think.

You and your siblings need to talk this out so everyone is comfortable with the plan. If you're having trouble agreeing, ask an estate attorney to mediate.

Seller learns difference between appraised and market value

Tuesday, October 09, 2007
by San Lorenzo Valley

Stream of low offers confuses home seller

Q: I tried to sell a house for the appraised price and was unable to sell at that price. I understand that property will not sell when it is priced too high but the offers I received were $15,000 to $18,000 less than the appraisal just done 5 months ago.

I was under the impression that if I advertised the property for the appraised price, it would move quickly. I told one real estate agent when she made me an offer from a client that I was going to have the house appraised again and that I would provide the appraised price to the potential buyer so he could adjust his bid.

The agent didn't go for that at all. Can you give me some suggestions as to what I did wrong? When I couldn't sell the house, I finally rented it.

A: I think you made a few basic mistakes. First, the appraised value is not necessarily the same thing as the market value.

The appraised value of the home is what an appraiser thinks the home is worth based on the sales of other similar homes in the area. The market value is what someone will actually pay for the house.

 In your case, either because of the condition or location of the home, the market is telling you that your home isn't worth what the appraiser thinks it should be worth--it's worth $15,000 to $18,000 less.

Getting a new appraisal doesn't change what someone will pay for the home. You'd be better off buying some cans of white paint and repainting the interior of the property. Or securing a REALTOR to counsel you and market the home at the right price. Then, you might get more money for it.

Renting the house is fine. Eventually, prices will rise in your neighborhood and you'll get your price, but not today or the rest of this year. And only you can decide if waiting for prices to rise in order to get the extra $15,000 to $18,000 is worthwhile.

How to Handle Low Ball Offers

Tuesday, October 02, 2007
by San Lorenzo Valley
If your house has been on the market for quite a while (3 to 6 months), you may have already dropped your price and now you're waiting for the buyers to rush in and make wonderful offers on this now-priced right property. And then it happens.

The lone buyer does appear, like a bandit in the night and offers you even less than what you just agreed to. Quite a bit less -- about 10 percent less. So on your $350,000 house, that you just dropped to $324,000, you now have an offer for $299,000. With a seller subsidy request of $5,000. At this point, your net is $294,000.

So how do you handle such a low-ball offer. Well, first of all -- don't panic, get angry or lose sleep. Especially, don't reject the offer right off the bat and tell them to come back when they're serious. Remember, it's now a negotiation game and the buyer IS serious or he or she would not have made an offer.

Several things have happened before this offer came in. The buyer, with his agent, has researched the market, walked through as many as 30 or 50 properties, conducted a study on the value of the property and written an offer for your house. Remember, you just won the lottery. They could have written on any other house, but they selected yours. So let's get busy.

First of all, do an analysis of your own goals and needs. How much do you really need to come out of this house to meet your goals of moving to your next home? What could you really live with and what amount are you going to counter. Remember this last point -- what are you going to counter? This is assuming that you're not rolling over and that you're going to stay in the game.

Next, conduct a comparative market analysis of the house once again. What's happened in the market to get this buyer to offer such an offer (notice I didn't say 'low'). It might be that your house is now worth that amount. And if it is -- that's okay, because it probably means the house you wanted to buy up into is also worth less. At the worse, you're going to take away less money. The best thing to look at, however, is that now you're going to buy up with a smaller down payment because the buy-up property is also less.

Now, let's start the negotiation. Keep in mind, this is for the long haul. Keep it alive as long as the buyer will keep it alive. Give up a little bit at a time. If you reduced the house to $324,000, expecting an offer of $319,999 with closing costs of $10,000 -- then start there. You're already willing to accept a net of $309,999, so you're not really that far off. Understand you're not going to get top dollar with no seller subsidy. So come down to $320,000 and give them their closing costs. So now, your net has come up to $315,000.

Hey -- you're actually ahead of the game if they accept. Oops -- they don't. Now they've countered to $309,000 and still want the $5,000 in closing. (Now our net's at $304,000). Great. Just think. When you started, you were $324,000 apart (remember, you had NO offer at all). Now, you're only $5,999 away from the net you were willing to accept in the first place.

We're almost there. Now, before I go much further, here's a negotiation tip -- keep this civil. Use a lot of complements about the offer, the buyers and the agent. "What a great offer. Thanks so much for writing. We are very excited about selling this house to you."

You want the buyer agent and his/her clients to know you're wanting to work with them. You've been waiting six months for this day (negotiation day) and you want to keep everyone engaged in the process to get your goals met -- sold and on your way to your new home in the country.

Now offer your final counter (or maybe next to final). You definitely want to use the complements at this point: "We are so close." "I can't wait till we wrap this up, then we can all celebrate."

At this point, you know the buyers want to buy and your sellers are ready to start packing, so emphasize that you're very close. Use a dialogue like this: "We are so close. We have some goals to meet, just like you do. And I hope we can bring this together to get us both where we want to be."

This is when you make the final offer and stick with it. If you offer $314,000, they definitely get what they need and you get closer to your final net -- which at this point would be $309,000 -- just $999 off of your initial goal. Then you know if it goes forward or you're back on the market. However, don't be so stubborn that you lose the lone buyer because of $2,000 or so.

If the buyer is stretching and this won't work, this is when the honesty comes out. The agent may tell you, If we can't do $309,000, it's just not going to work. It goes too far beyond their qualification." Then you can decide whether to keep it on the market (hoping you don't have to drop the price again), or you cut the loss and move forward with settlement.

Be patient with the process. Don't get upset, remember, they're trying to meet goals just like you are. By working together, both can get what they want.

Best way to buy home before current one sells

Monday, September 24, 2007
by San Lorenzo Valley

Interest-only loan option works well in seller's market

Monday, September 24, 2007

 Most home buyers are resistant to selling their current home before they already have another one tied up. This means buying before selling, which carries an element of risk.

One way to approach such a move, if market conditions permit, is to make an offer on the new home that is contingent upon the sale of your current home. This way, you don't put cash down on the new place until you have your equity out of the home you're selling.

Although you avoid the risk of owning two homes, you also may have to offer an over-market price to entice the seller into accepting your less-than-certain offer. There is also the risk of losing the house to another buyer who can close without having his or her home sold. Usually sellers who accept a contingent sale offer want a release clause in the contract.

A release clause allows the seller to continue marketing the property until the contingent-sale buyers remove their sale contingency. If the seller accepts another offer in backup position, he notifies the first buyers that they need to remove their sale contingency within the time period specified in the contract (often 72 hours), and show that they are financially able to perform, or they risk losing the property to the backup buyer.

Another drawback of the contingent-sale approach is that it doesn't work in all markets. In a balanced or slower market where listings are not selling quickly, a contingent sale offer stands a chance of being accepted. But in a seller's market, where inventory is low, contingent-sale offers are rarely accepted.

In a strong market, you'll need to step forward with an offer that is not contingent on another property selling. You will also need to provide financial verification that you don't need to sell in order to generate the cash you need to close.

HOUSE HUNTING TIP: A 30-year fixed-rate mortgage with an interest-only payment option can provide a reasonable option for well-qualified buyers. With this sort of mortgage, you have the option to pay only interest each month for the first 15 years of the loan. After that point, payments are amortized to pay off the loan in full over the remaining life of the loan. This can result in a huge jump in monthly payment. But, you should have no intention of letting this happen.

Let's say you're buying a $700,000 home and have enough cash for a 20 percent down payment without selling your home. But, you'll have to take out a mortgage for $560,000, which is a bigger mortgage than you want.

However, you will have only a $560,000 loan balance until your existing home sells. At that point you take proceeds from the sale of the old place and pay down the mortgage on the new home to a more comfortable amount.

During the interest-only period of the loan, you pay interest only on the remaining loan balance. So, when you pay down the principal, you'll lower your monthly payment. At the end of the 15-year, interest-only, pay-option period, the loan is amortized over the remaining 15 years. Your payments won't jump significantly as long as you diligently pay down the principal during the first 15 years. Make sure that the terms of your mortgage permit principal pay-downs at any time without penalty.

Another benefit of this type of interim financing is that it's long-term financing. You don't have to worry about paying off a loan earlier than you might be able to if your home takes longer to sell. And, during the time you own two homes, you can make a lower interest-only payment rather than a higher fully amortized payment.

THE CLOSING: This helps with your cash flow.

DRE #01385517