A WORKABLE STRATEGY WHEN SELLING SAN DIEGO HOMES
How can you work yourself out of this kind of predicament, yet still sell without a broker? Here is my outline of a safe strategy when selling San Diego homes. Begin by asking yourself some hard questions. (Just because you bought your house at a good price some years ago does not mean you are an expert in selling it.)
Ask yourself the following: Am I willing to pay for an appraisal in order to price my house correctly? Do I know how to write ads for marketing my house? Will I hire a professional sign painter to paint a deluxe “For Sale by Owner” sign to put in front of my house? Am I willing to make appointments with people and have them meet with me at their convenience so I can show the home? Am I willing to hold open houses? Am I willing to cooperate with a legitimate broker who might see the sign and bring a client in? Am I willing to pay that broker a decent commission? Finally, can I spend the time that it takes (lots of it!) to sell my home by myself?
If you are still enthusiastic, it is time to learn the basics through which you can achieve success in the For Sale by Owner game. Do you want to spend a few hundred dollars for an appraisal that will tell you how much your house is worth compared to other San Diego homes? If not, beware of the grave error of overpricing your home. This is the single biggest mistake made by most do-it-yourself sellers. Drop by your local courthouse to find actual prices paid for nearby San Diego homes in recent months. To see what people are saying about houses like yours, check the ads in local real estate magazines and newspapers, often found in convenience store racks. Also check the classified ads in the Sunday newspaper. “Owner” ads are generally clearly identified. The next maneuver is not entirely cricket, but some owners do it anyway. They invite a few real estate brokers to visit and make presentations. They ask these brokers for comparable sales figures for the neighborhood. Even if you are not successful selling the house by yourself, this is a good way to get to know some professional brokers.
CAN YOU BUY AND SELL SAN DIEGO REAL ESTATE AT THE SAME TIME?
If you are buying a new home and selling your current one at the same time, assess your Timing Comfort Zone. Many of us do a sale and purchase simultaneously. Adventurous souls do not mind selling their house first, regardless of whether or not they have glimpsed their new dream house yet. They worry afterward about where they will live once the current home is sold. The rest of us want to know where we are going. Ask yourself how comfortable you will feel putting your house up for sale right away. Are you confident that you will be able to find the right next home-that bigger, better home-afterward? Are you willing to move into a rented house or apartment if you find a buyer for your home before you find another San Diego home for yourself? If you are moving to a new area, can you put up with a hotel room filled with suitcases for a few months?
CAN EQUITY PARTICIPATION HELP YOU TO PURCHASE SAN DIEGO REAL ESTATE?
The nice part of equity participation is that someone helps you get a CA home, and that person gets a part of the action in return. Both buyer and investor need to set up the arrangement with the help of a knowledgeable attorney. Incidentally, shared equity can be a legal, safe tax shelter for the person who lends the money.
Here is a standard case of equity sharing. Parents (or a friend or investor) give Mr. and Mrs. Buyer the money for a down payment and closing costs. In return, the parents receive half the equity in the home. From that point on, the young couple pays all the carrying charges – principal, interest, taxes, insurance. They have the security of knowing that, unlike rent, their payments cannot be raised by an arbitrary land- lord, although their real estate taxes may go up. Suppose Mr. and Mrs. Buyer purchase a $100,000 mobile home. Their par- ents put in $20,000 for the down payment and closing costs. Both parties sign a contract, usually running a shorter term than a mortgage – 5 to 7 years. The contract says that anytime within that period, the occupants, the young Buyers, can buy out the parents. After five years, the house is worth $150,000. The couple sells it. The parents get their $20,000 back, plus a percentage of the appreciation. On a fifty-fifty deal, the parents make a profit of $25,000. If the couple does not want to sell, or if they are not able to buy the investor out, they all go to the bank and refinance the place for $150,000. As in the buyout, the parents get the $20,000 back first. They then split the remainder equally. The profit? $5,000 a year, plus tax write-offs.
A key benefit is that rather than have a landlord-tenant relationship, which might strain family or other ties, the lender and borrower are partners. Even if you do not live nearby, even if you are purely an investor and do not know the occupants personally, the downside risk is small. Sounds great, doesn’t it? One problem everyone should know about is that the occupants-the children or the borrower-must qual- ify for the loan along with the investor. If the son or daughter or occupant/partner has a small income or none at all, he or she might get turned down by a bank, unless the investor/partner has a strong credit rating.
EQUITY LOANS FOR VACATION SAN DIEGO HOMES
An equity loan, as the name implies, is a loan for which you use the equity in your home as collateral. You can make excellent use of your money by taking out an equity loan to purchase a California vacation home. You will get the same rates on an equity loan as you will on a fresh mortgage, or even lower rates. An equity loan, however, is a much quicker loan.
Beware, though, of equity loans with adjustable rates. In some cases, a bank gets the right to adjust the rate quarterly. You could wind up paying 11 percent very quickly on a loan that you believed carried a 6 percent rate. Go to your own bank first, then compare its rates with those of other lenders.
CREATIVE FINANCING
There are other ways to finance San Diego homes that probably have never entered your mind. When you want a personally tailored suit or dress, you might start at a department store, then discover you have better luck at a specialized clothing boutique. The same holds true for money. In recent years, there has been a revolution in the finance industry. Experts have developed creative financing for individual clients. Now, when you cannot find a mortgage tailored to your needs at a bank, you go to a reputable mortgage broker. And equity participation is yet another kind of creative financing that involves neither banks nor mortgage brokers.
Equity Indebtedness on San Diego, Ca homes
Home equity indebtedness refers to loans made, using the home for security, for purposes other than purchase or home improvement. Equity indebtedness (EI) means any indebtedness (other than acquisition indebtedness) secured by a qualified residence (home) to the extent that the aggregate amount of such indebtedness does not exceed the FMV (fair market value) of such qualified residence minus the acquisition indebtedness with respect to such residence. The aggregate amount treated as home equity indebtedness for any period cannot exceed $100,000 for the interest to qualify as a deductible expense. To rephrase this definition, the equity indebtedness is limited to the lesser of $100,000 (whether there is one loan or multiple loans) or the FMV less the acquisition indebtedness.
Improvements on San Diego, Ca homes
Systematically recording amounts spent for home improvements and retaining any and all receipts are of great importance to the homeowner. Unfortunately, they are often neglected. Many homeowners are completely unaware of the ultimate tax implications of the home improvements or capital improvements that are added to their real estate through the years. These improvements may be added to the homeowner’s basis, making the adjusted basis greater and reducing the gain at the time of sale. The adjusted basis (AB) is equal to the original basis (OB) plus home improvements (HI):
AB = OB + HI
Adjusted basis = Original basis + Home improvements
There is a great deal of misunderstanding about what items are classified as home improvements. The IRS defines improvements differently for homes than it does for rental property. Some examples of home improvements are:
- electrical wiring (new, replacement, rearrangement)
- floors
- heating units
- partitions (including removal)
- pipes and drainage (including replacement)
- roof
- walls (plastering, strengthening)
- room additions
- patios
- pools
- fencing
- landscaping (trees, shrubbery, grass seed, etc.) and sprinkler systems.
Maintenance items are not home improvements. Some examples are:
- painting
- papering
- carpeting
- drapes
- furniture
- replacement of built-in appliances (stoves, ovens, dishwashers, etc.)
What are the facts about San Diego, California real estate ownership?
An estate is an interest, share, right or equity in real estate that varies from the minimal right of a renter to the maximum right of a full owner.
Estates are either (1) freehold or (2) less-than-freehold, depending upon the degree of ownership and the duration of interest. Freehold estates are real property and less-than-freehold estates are personal property. Less-than-freehold estates come with certain rights for the use of real property.
Freehold estates (real property)
Freehold estates are 1) fee estates or 2) life estates.
The two types of freehold estates are: 1) a fee simple estate or 2) a life estate. These freehold estates are the greatest degree of ownership you can have under the law.
Estates in fee (fee or simple)
Fee or simple is the most interest (greatest) one can hold; it is of “indefinite duration,” freely transferable and “inheritable” (referred to as an estate of inheritance).
It is okay for fee or simple property to have a loan against it.
An estate in fee is the most complete form of ownership and the most common with San Diego, California real estate. This can be referred to as fee, fee ownership, or simple. FEE or SIMPLE means an owner has transferred all rights of a property to a new owner for an indefinite duration of time (perpetual). All transfers are assumed to be fee or simple unless the grant part of the deed limits, by the use of conditions, the property’s use.
1031 exchange on San Diego, California real estate
With the appreciation of San Diego, California real estate, many property owners do not want to sell and be required to pay the high taxes. An exchange allows the owner to save on taxes and thus have more money to invest in a new property. Because of refinancing, many owners are in a position where their equity is not sufficient to cover their tax liability. An exchange allows them to defer tax liability.
EXAMPLE: Ms. Overtaxed owns a ten-unit apartment house she wants to dispose of and plans to buy a 20-unit apartment building. Overtaxed ten-unit would sell for $600,000, with selling costs of $25,000 and an adjusted basis of $275,000. Her taxable gain would be:
| Sales price | $600,000 |
| Selling costs | $25,000 |
| Net sales price | $575,000 |
| Adjusted basis | $275,000 |
| Taxable gain | $300,000 |
If she sells the property, she will have to pay federal and state taxes on the gain. She would be taxed at the 20 percent capital gains rate as well as having California state tax liability on the gain. These taxes will have to be paid out of the proceeds from the sale. If she exchanged rather than sold, she would have her entire equity to invest in the new property and could defer any tax liability.
When a client becomes involved in a 1031 exchange, several questions must be answered:
- Does the transaction qualify for a 1031 exchange?
- What are the mathematics of the exchange?
- How are equities balanced?
- Who is giving or receiving boot?
- Is the exchange partially or totally tax-deferred, and what is the basis in the new property?
This section discusses the transactions that qualify for a 1031 tax-deferred exchange.Who Prepares an Exchange? Most owners think of A exchanging with B. While this is essentially what happens, more often three parties are involved. The most widely used exchange is the buy-sell exchange, sometimes called a three-corner exchange or three-legged exchange. The three people involved are the exchanger (person wanting to exchange), the seller (a person who wants to sell property and doesn’t want to retain any property) and the buyer (a person who wants property of the exchanger).
The exchange may be structured in two different ways. The buyer offers to buy the exchanger’s property, but the buyer does not have any property to exchange. So the exchanger needs to find another property (“up-leg”), the property he or she wants to acquire. When the exchanger finds the up-leg, the buyer buys this property from the seller. Now the buyer has a property to exchange with the exchanger. Note that if the exchanger sold his or her property to the buyer and then bought the seller’s property, this transaction would be a purchase and a sale. To satisfy the IRS, the buyer will buy the seller’s property and exchange with the exchanger, and this is all done in escrow in a matter of minutes. A general rule of exchanging is that any person can be the center (hub) of the exchange except the person wanting the exchange. Sometimes this procedure is called the flashing of mirrors.
EXCLUSIVE VERSUS OPEN LISTINGS ON SAN DIEGO REAL ESTATE
A good broker will ask you for an exclusive-right-to-sell listing. In this arrangement, no matter who sells the property – the “exclusive” broker, another firm or broker, or you personally – the broker who has the listing gets a commission. A second alternative, the exclusive-agency listing, is going out of style. This agreement states that if the broker sells the house, that brokerage gets the commission, but if you sell it yourself, you keep the commission. A final agreement is the open listing. You tell every San Diego real estate broker in town that your home is on the market. The broker who brings the first acceptable deal to you gets the commission. I recommend giving a broker an exclusive-right-to-sell listing, because in nine out of ten cases, that person will work harder and sell your home more quickly.
Inviting several brokers to make presentations helps you avoid both under-pricing and overpricing. The good brokers – and there are loads of them – use the comparable price information available through the Multiple Listing Service and thus will be within the same general price range. The first question a broker will ask you is “May I have an exclusive- right-to-sell listing?” The second question will probably be “How long can you wait for a sale?” Do not let a broker list your home for a long period of time. Never list a home for more than 90 days. Tell the broker that if homes are selling in your market generally within 30 days, you want an agreement for a 30-day listing only. If it takes 60 days at this time in your area, give the broker a 60-day listing. Good San Diego real estate brokers will accept a shorter listing period, because they know they will bring plenty of positive activity. If you have a good relationship, both you and your broker understand that you can extend the listing agreement. Too many people mistakenly give a house to a broker for six months, or an unspecified period of time. They wait . . . and nothing happens. They are stuck six months later when they are planning to move to their next house.
Before your house is listed, examine the agreement with the broker. Ask for a jump – out clause should you be unhappy with the broker’s work. Be wary of a broker who tells you your house is worth more than you think it is. Ask the broker for examples of actual sales of comparable houses in your area from the past three months, so you and the broker can determine a realistic asking price.
FINDING THE SAN DIEGO, CALIFORNIA REAL ESTATE BROKER WHO IS RIGHT FOR YOU
There are plenty of San Diego, California real estate brokers who would be delighted to list your house. What makes one better than another? Should you list your home with more than one? First, let me offer a few clues to leading brokers, which you can pick up merely by taking an hour’s drive through your community. An active broker has “For Sale” signs up around town. Ask the owners of those houses if they are happy with the broker’s service. Stop in at the courthouse or hall of records. Are there any lawsuits pending against a broker you plan to interview? Does the state licensing board have any complaints on record? Once you have the names of several real estate firms that seem promising, make an appointment and interview the broker or sales agent. Incidentally, there is a practical reason for scouting the neighborhood and visiting other homes that a broker is trying to sell. That other San Diego, California real estate could be competition for your own. Do not be shy about questioning the broker on this point. Perhaps there have been some improvements made on a nearby, fast-selling home that you would do well to copy.
GHOSTLY NEIGHBORS AND OTHER SAN DIEGO REAL ESATE CONSIDERATIONS
Why do two homes that look alike differ in price? There is no simple formula that will show you how much an extra bedroom, bath, finished basement, terrace or swimming pool adds to the value of the house. However, if you look at two houses priced at $500,000, in the same condition, in the same neighborhood, on the same size lot and with the same square footage, and one has an extra bathroom, you can assume the extra bath makes that house a better buy. It is hard to put a monetary value on individual amenity. An in- ground swimming pool adds about $10,000 or more to a house. An above-ground pool does NOT add nearly that much. More land makes a house worth more.
What a house borders on can make a difference. A friend told me about the home she bought at what she thought was $20,000 to $25,000 below market value. Neighbors had paid more for look-alike houses. Now she was hoping to sell at a profit. The kicker? The house was next to a cemetery! That is one “amenity” that makes a house more difficult to sell. She simply had to find a buyer who, like herself, believed that the peace and quiet of the neighboring land outweighed any negative ghoulishness.
ADDITIONAL STRATEGIES WHEN SELLING SAN DIEGO HOMES
Next, put a classified ad in your local paper. Describe your home properly; for example: “Turn-of-the-century colonial; totally renovated, three bedrooms, two baths; huge yard, swimming pool . . .” Include the price, and your phone number. For safety reasons, do not give your exact street address. Your phone may start ringing off the hook. Surprised? Not when you hear who is on the line. Nearly half the calls undoubtedly will be from real estate agents. That is how they get listings. Make it clear that you do not want to sign an exclusive-right-to-sell agreement, but that if they want to look at your place it is fine. Owners of San Diego homes occasionally have trouble selling their property, despite ads placed in the local paper. Typically, it can be a matter of devising a better marketing campaign. Instead of the ad headline “Home for Sale,” I suggest: “Owner must move! The first week you place a good ad, this is what could happen: Ace Realty calls. “I have a buyer who is in town for only four days,” the broker tells you. “This person is perfect for your house. I can get you your price, or pretty close, plus my commission.” If you say “all right” without any paperwork, if you tell the agent to bring the client to see your house, you will be required to pay that commission, under the open-listing laws. Although you have not signed a listing agreement, once you allow agents to show your house you are liable for the commission. To protect yourself, have your attorney prepare a memo for brokers to sign before they step over your threshold with a client in tow. The memo should say that you are giving permission to the named broker to show the house for this day only. You understand that the broker will deliver the price you name in the memo. This piece of paper limits the “open listing” to the day specified when showing San Diego homes for sale.
BILLBOARD YOUR SALE
Now that you have gotten your feet wet by placing your first ad, is your professionally painted sign ready? Both sides of the sign should list your phone number and additional descriptions, such as “swimming pool, 3 bedrooms, 2 baths, owner financing.” The sign should say “By Appointment Only,” except on those days you are holding an open house. Post the sign close to the curb in your front yard. Why all this detail about a sign? People driving by and stopping because of a sign are the best prospects you could possibly want. They have already searched the neighborhood and they are genuine buyers. Like a good scout, though, be prepared. Your doorbell could ring at almost any time. If you have not made an appointment, you are putting yourself and your family’s safety at risk by leading an unannounced stranger through your property. Reject people who want to make impromptu visits.
OWNER-PLANNED OPEN HOUSES FOR SAN DIEGO HOMES FOR SALE
When planning open houses for San Diego homes, it preferable to most buyers on weekends. Make sure your ads and sign announce it to the world. Give people clear, concise directions to your home. You may know about making that right-hand turn at the second stop sign and then a left at the 7-Eleven, but spell it out for strangers. Use street names, including the distance between points that you mention. Thus, you should say, “Take a left on Elm Street, drive six blocks to Park Place, and make a right at the 7-Eleven. Drive four and a half blocks. It is the third driveway on the left. The house is a two-story white clapboard with red trim. The number 123 is on the right of the front door.” Why risk losing a sale because someone gets lost en route?
Showing your house to a prospect, room by room, is a minor art form. Pretend you are half game-show host, half college professor – enthusiastic, knowledgeable and sensitive. Thus, as you and your guest enter the living room, point out the bay window, the recently installed double-glass insulation and the working fireplace. In the kitchen, call attention to the new dishwasher and the window that catches the morning sun. You do not want to sound like a kindergarten teacher. So remind yourself not to introduce rooms (“This is the living room”) when the function is obvious. By all means ask your visitors questions, whether they have any children, for instance, so you can offer subtle marketing information about schools, recreation and so on. It is prudent to have two of you in the house when showing it to a visitor, for safety reasons. (One person should conduct the tour, the other remain out of the way.) If you are alone, you could arrange to have a friend call every twenty minutes, just to be sure you are all right.
Property of San Diego, Ca real estate
Proration question: Who owes whom how much? If the seller of San Diego, Ca real estate has paid both the 1st and 2nd installments of the property taxes for a total annual bill of $2,760, what is the proration of property taxes for both the seller and buyer if the buyer takes possession on May 1st?
Remember: Escrow prorates property taxes using old (seller’s) assessed value (tax bill).
The first step is to determine the amount of taxes per month. The annual tax bill of $2,760 is divided by 12 months to determine that the monthly tax is $230. Since the seller paid the property taxes through the month of June (the end of the fiscal tax year, which is July 1st through June 30th), and the buyer took possession on May 1st, two months of paid property taxes are owed the seller. The buyer would owe the seller for two months (May and June) that were already paid by the seller. This amount would be $460 (2 X $230).
When a property is sold, the buyer will receive one new property tax bill, but it may be followed by other updated property tax bills, referred to as supplemental property tax bills.
DO’S AND DON’TS: HOW TO SHOP FOR RECREATIONAL SAN DIEGO HOMES
DO: Buy a vacation property for enjoyment, not for investment.
“Test drive” your vacation locale by renting there before buying.
Ask if a developer is offering an inexpensive “try-out” vacation at a resort.
Ask yourself if you might like to retire eventually to this place.
Inspect San Diego homes as carefully as you would inspect a primary residence you are purchasing.
Shop in the off season to find better deals.
Ask at least five owners in the same resort area if they are happy with their choice.
Give yourself a “cooling-off” period after hearing a sales pitch, before you sign any papers.
Get all the details about renting out your second home when you are not using it.
Check a developer’s credentials with the local resort association, Better Business Bureau and/or American Resort and Residential Developers Association.
Get references from at least three current clients of a management company before signing a management contract.
DON’T: Buy in an area you are visiting for the first time, no matter how wonderful it seems.
Be tempted by recreation San Diego homes in an area you visit rarely or never at all, no matter how much of a bargain it is.
Buy on the spur of the moment.
Expect good rental income unless the property is in a major destination resort.
Assume that any services such as lawn mowing or snow removal are provided by a resort or management company unless they are specified in a written contract.
Disappoint yourself by shopping in a resort that you cannot yet afford.
Purchase a fixer-upper as a vacation property if you are not going to be there most of the time to supervise contractors.
Installment sales & exchanges of San Diego, Ca real estate
An INSTALLMENT SALE is the sale of real estate where the payments for the property extend over more than one calendar year. Installment sales are used to spread a gain over two or more calendar years so that the entire gain is not taxed all in the first year. Our income tax system has progressive rates, which means that the higher the income the higher the income tax rate for that year. If a person can spread a gain over more than one calendar year, the same income may be taxed at a lower rate.
By doing this, the seller avoids the disadvantages of paying for his or her entire gain in one year, and thereby has a substantial savings on his or her income taxes. This method is usually used when selling large tracts of land held for a period of time, or large buildings owned by one individual.
A sale of a large lot for $100,000 all at once might force you into a higher tax rate. So by having an installment sale of $25,000 for each of the next four years, you may substantially reduce the total income taxes paid. An installment sale may be a good way to defer income taxes if your income varies from year-to-year: Just arrange to get larger installment payments in years when your ordinary income is low.
Exchanges tax-deferred (federal & state)
(SECTION 1031 OF I.R.S. CODE) In an exchange, the adjusted cost basis of the old property becomes the basis of the new property.
BUYING AND SELLING SAN DIEGO, CALIFORNIA HOMES – WHICH DO I DO FIRST?
This is the overriding question everyone asks when considering San Diego, California homes. The answer? Do both simultaneously, if your situation merits it. Meaning – time (120 days min) is not critical. Yes, you can stay sane in the process, as long as you keep in focus the two prime considerations: money (the amount needed for both moving and paying for the new house) and time. Do not buy a new house first and worry yourself sick about selling your old house, unless you have tremendous amounts of cash. Your first visit, as both a buyer and a seller, might be to Housing Consumer Libraries or Home Buying Centers.
“THE METER IS RUNNING” STRATEGIES
What if the clock is ticking-loudly and rapidly? You do not have the time to do all the homework that I have assigned on selling San Diego, California homes. This is a situation where hiring a good real estate broker is a must. Get a sales whiz who knows how to create action and a positive climate for a fast sale, while still getting you top dollar. What if someone wants to buy your current house before you are ready to move? You have two basic choices: (1) sell the house and pay the new owner rent during the time you are looking for your new house, or (2) lease a temporary place – there are many apartments with short-term, 2 to 6 month leases in major cities.
THE “ONE BROKER, TWO HOUSES” STRATEGY
Here is another strategy, but you must consider how far you are moving. If you are selling and looking to buy in the same town, find the savviest real estate broker you can. Make a deal with that broker to help you find a new home and sell your current one at a reduced commission rate on both sides. Both of you win. He gets a sure commission, and you save thousands on the selling end. Let us assume the broker is in a marketplace where the going rate for commissions is 6 percent. Offer him a 9 percent package deal – 5 percent on the sale of the old house, 4 percent on the purchase of the new house. If you are selling a $100,000 home and buying another for the same price, you save in commissions.
HOW MANY SAN DIEGO HOMES ARE ON THE MARKET?
Once you determine which broker to use, make certain you are shown all the homes that might be to your liking. If a broker lured you to his or her office with an ad for one house that reads as if it had your name on it, expect to see additional ones that have your middle initial as well. It’s wise to view as many homes as possible and then narrow your search.
Here are insights about how a good broker can match your needs with the San Diego homes currently on the market. In each area most of the real estate people belong to the local board of realtors. Each local board has a sub-organization known as the Multiple Listing Service (MLS). Each brokerage firm enters the listings it receives into a computer with all the pertinent information. You can order printouts, including photos.
HOT MARKETS, COOL CUSTOMERS
Now that your agent is showing you what is available, factor in one more number: shelf life, or the length of time San Diego real estate is on the market. In a good market a listing should be sold within 30 days. In an average market, 60 to 90 days. If the market is slow, the average house is listed for 3 months before it is sold. In a hot market, a listing might last only 1 to 10 days. Ask your broker how San Diego homes have been selling in the area. I’ve had buyers who lost out because a seller in a hot market got four full-priced bids within 24 hours. It is useful to know whether you might have to make a quick choice.
YOU CAN’T JUDGE SAN DIEGO HOMES BY THEIR COVER
Not sure how much your house is worth compared to similar San Diego homes now on the market? You cannot go by the price of the house next door, although, as mentioned earlier, it is not a bad idea to find out about actual sales prices in your neighborhood in general. On the next block, a house that from the curb appears to be the twin of yours might be offered for $20,000 more than yours – or $20,000 less.
Prices are determined by several factors, including the condition of the home, plus extra added attractions. The “twin” may have an extra bathroom, brand-new carpeting, a better air-conditioning system or a pool. It may be a “twin” on the outside, but it is quite different in terms of improvements, amenities and repairs. Some improvements – such as an interior paint job, replacement of doors, fresh landscaping, plus a major cleaning effort – will bring you more money from the sale of the house than the actual cost of making those improvements. Amenities such as in-ground swimming pools in subtropical areas, remodeled bathrooms and remodeled kitchens (provided you do not go overboard on gold fixtures or the like) will bring you back approximately the same amount of money as you put into those amenities. The major advantage of a large remodeling job is that in some cases, it will help you sell the house faster. Special additions – a tennis court or a sauna, for example – will not add dollars to the sale price. However, since a tennis court would appeal to an avid tennis family, sellers might want to advertise San Diego homes with tennis courts in a tennis magazine.
WHAT WILL YOUR SAN DIEGO HOME LOOK LIKE?
Your Geographic Comfort Zone is based not on what is going to happen within the walls of your house but on what happens when you walk out the front door. The next questions relate to your Esthetic Comfort Zone.
The first question actually is whether you want a new home or a used one. You can look in the new home inventory list in your preferred area, which you can find at the local home builders’ association. In most years, however, 80 percent of home buyers buy used, or pre-owned, San Diego homes.
Your Esthetic Comfort Zone is what strikes your eye as you drive up to a place. That is the first thing you are going to see as you arrive home every day. A house may be in the perfect neighborhood and the perfect price range, but if you cannot stand to look at the facade, you are going to be a very unhappy person. Purely subjective taste determines what suits you. Do not be afraid to take a stand by telling an agent, “I like modern ranch houses,” or, “I love Victorians.” And if an unusually scenic view can make a difference in feeling wonderful at the end of the day, let the agent know that too.
The least important consideration is the look of the inside of most homes. They are all the same, except for dimensions. Aside from deco- ration-superficial things such as furniture, lighting, paint, wallpaper, mirrors, floor coverings, window trimmings – a bedroom in one house is the same as a bedroom in the previous one you visited. It consists of four walls, a ceiling, a floor and windows. Close your eyes if you hate the Victorian decor in a house that otherwise suits you. You can change the inside of the house, the undergarments. You have complete control over the space inside the four walls. It is the suit or dress-the outside of the house-where your Esthetic Comfort Zone counts. If your Esthetic Comfort Zone calls for a home that was built at the turn of the century, take into account that you are likely to have proportionally more challenges than if you bought a 5-year-old ranch. The main question when considering a house more than 40 or 50 years old concerns what kind of upkeep the previous owners have done. There are homes 50 years old or older in marvelous condition and sometimes as good as a 5-year-old ranch.
Transfer of easements for San Diego, California real estate
Easements are transferred automatically if they are easements appurtenant. Easements in gross can be transferred only by an expressed agreement, providing the easement is not made to a specific individual. An easement should be recorded. If it is not recorded, and the purchaser does not have knowledge of an easement, then the easement may not be considered to have been transferred with the property.
Termination of an easement
Easements may be terminated in several ways:
1. EXPRESSED RELEASE Any written agreement can terminate an easement, but the usual form is a quitclaim deed. The servient tenement is the only one that could benefit from the termination of an easement.
2. MERGER OF DOMINANT AND SERVIENT TENEMENTS An easement is automatically terminated when the dominant and servient tenements merge into a common, or single, ownership. The easement can be created again if any part of the real estate is later transferred to a “separate owner.”
3. ABANDONMENT AND NON-USE If there is an obvious intent of an easement holder to abandon his or her easement, then that person may lose the easement through court action. In this way, an easement gained through prescription may be extinguished if non-use exists for a period of five continuous years.
Non-use of an easement acquired by prescription could terminate that easement. However, non-use of an easement appurtenant would not terminate the easement, unless it is abandoned.
Summary:
Easements are created by deed or prescription
Easements are appurtenant
ADDITIONAL COSTS ON MAJOR FIXER-UPPER SAN DIEGO HOMES
5. Wet basement. This condition usually results from poor drainage and wet soil around San Diego homes. When water seeps into soil and has no place to go, it comes into your house through the foundation walls. Ordinary waterproofing material from a hardware store may keep the water out of a basement temporarily. When inspecting an old home, check the walls for signs of black asphalt waterproofing (purchased at a hardware store), intermittently painted over. This will indicate there has been a water seepage problem in the basement. If the CA home is located in a valley, pay particular attention to water marks in the basement. These marks are less likely for a home on a bluff or in a mountain area. You could double-check for water marks by visiting after a heavy rain or during a snow-melting period in the spring.
6. Obsolete electrical wiring. The older a house is, unless it has been recently rewired, the more likely it is that you are going to have to rewire the house. Unless you are planning to have a very high fire- insurance policy, do not delay rewiring. In 1940 you needed only a 30-amp electric service to power San Diego homes, including the lights. Today, with all the devices used, you need at least a 100-amp capacity. Common sense will tell you that if you put a 100-amp load on a 30-amp electric service, you are creating an instant matchbox. If the home is going to have an electric washer and dryer, an electric range, electric heat and air-conditioning, you will need a 150- to 200- amp capacity. New electric services at the main electric board cost anywhere from $300 to $1,000. Figure on $15 to $30 for each new switch and double outlet. Heavy appliance outlets run from $75 to $125 each. Depending upon the accessibility of wiring, a seven-room home will cost from $2,500 to $6,000 to be rewired.
