The Advantages of Professional Property Management Being a landlord requires effort and dedication. If you live far away from your rental property or have other personal commitments, hiring a property management company is a good option. Some of the benefits of hiring professional property management services include: Finding High Quality Tenants The biggest challenge for most landlords is to find responsible tenants for their rental homes. This ensures timely payment of rent, proper maintenance of the home and fewer problems during the tenancy period. Professional property managers have defined criteria for screening applicants and selecting the most suitable occupant for your property. Experience in scrutinizing thousands of rental applications will extract the facts and identify warning signs. In-depth research about the tenant’s background, employment, rental records, income, criminal history, previous rental experiences ensures that you are renting your property to the best qualified tenant. Effective Property Advertising A property manager uses the most effective resources to market your property to a large pool of prospective tenants. Posting high quality photos and virtual tours of the home will help to set your property apart from the competition. Property managers will offer effective staging tips and evaluate the condition of your home to recommend improvements that will increase its appeal and rental value. Strict Rent Collection Process Collecting timely rent every month is important to ensure a consistent cash flow. When you work with a property management company, you can be assured they will collect the rent on time and deposit it into your bank account. They demand that tenants follow the lease terms and pay the rent by the due date. In case of delays, they know the proper and legal ways to deal with the situation. Property Maintenance and Repairs Performing maintenance and repair tasks on time not only ensures a comfortable stay for the tenants, but also retains the value of your investment property. By hiring professional property management services, they will outsource the task to licensed and qualified contractors. The property manager will conduct regular inspections of the rental home to identify and repair any potential issues before they pose larger and more costly problems. Better Tenant Retention Property managers act as a point of contact between the landlord and tenants. When all the maintenance issues are addressed timely, tenants are less likely to look for another place to live in. This, in turn, will lead to shorter vacancy cycles for your rental home. You will also be saved from all the efforts of finding and screening new tenants, marketing, arranging visits, re-painting the home etc. Legal Issues A property manager has in-depth knowledge of the tenant-landlord laws and the property manager will ensure that the process is carried out in a legal manner, saving you from exposure to costly litigation. Contact us to discuss your options for property management of your rental property. We are affiliated with a local professional property management company and we can relieve you of the burden and hassle of managing your income investment properties. Listen to our podcast with a professional property manager. Find our podcasts at FiveStarRealEstateTeam.podbean.com We are the Five Star Real Estate Team, and we know how to set the stage for your success. Pete Sabine & Leslie Whitney Call or Text 925.297.5335 OurFiveStarTeam.com Compass #01866771
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By Pete Sabine There are so many choices for a real estate professional, does it really matter who you choose to represent you when you buy or sell a home? If all real estate companies are the same, why are the results so different for each company? Even more true when focused on the personal performance of a Realtor. Why are two Realtor’s results so different in the same profession and local market? Athletics can be a measure of comparison. For one reason, athletics are designed to be clean and pure in results. The scoreboard generally defines the finest of top performers. Each performer knows the start, the finish and event rules. How each athlete prepares for the event physically and mentally makes a world of difference. The tenacity of training, the focus of mind and nutrition of the body are all contributors of success. The same is true in the real estate profession. Athletes generally get to train and prepare for several days or weeks to compete at an event. Realtors train, compete and recover daily. Success in the real estate profession can be measured in different ways. One measure is the sales volume recorded in the MLS. A more meaningful and relevant measure of success is defined by the tears of happiness in a client’s eyes and referrals to their friends, family, and co-workers. As the legendary NBA coach Phil Jackson said, “You're only a success the moment you do a successful act, so these acts have to be repeated all the time." So true and drives the good to become the great. It is the work ethic, the focus, and the competitive drive! The perseverance, the training, the mental toughness, and it is the way you show up every day…without a ranking, without results to rest on, and power through your day to get results. It is your internal drive to make a difference in someone’s life. You do so as a role model, a parent, a significant other, a sibling or a friend. You do what you do every day to make a difference on your own scoreboard in life, not anyone else’s scoreboard. Now, more than ever, experience and knowledge matters in real estate. In challenging times, you are best served by a seasoned real estate professional who can help you navigate through a transaction that can often be complex and with frequent changes in the market that can affect the outcome. What is your scoreboard to measure a Realtor? Discover how we can help you reach your goals. Pete Sabine & Leslie Whitney. Call 925.297.5335. Experience. Innovation. Results. Compass. License #00889760. #successfulrealtor #hiretherightrealtor #experiencecounts BY PETE SABINE A bridge loan is a short-term loan that uses the equity from your current home to help you make an offer on a new one, without rushing to sell. A bridge loan is a simple solution to bridge the gap between the home you have and the home you want to buy. A bridge loan can be a viable option if you can cover the cost of the loan along with the additional monthly payments due until your current home sells to pay off the short-term bridge loan. Here are the key benefits of a bridge loan to buy your next home: • Avoid weakening your negotiation position with an offer contingent on the sale of your home. • Take the anxiety of selling your home first without having another home to buy in a competitive real estate market with limited inventory. • Avoid the hassle and expense of a double move. The Bridge Loan Advance Solution The Compass Bridge Loan Advance is available exclusively for our qualified clients with a traditional bridge loan who are working with us to sell their existing primary residence. If you are approved for the Bridge Loan Advance, it has a 0% APR for the life of the loan and has no additional application or loan fees. What rates and fees accompany a bridge loan? The rates and fees for each bridge loan are determined by the lender. We recommend reaching out to a bridge loan lender directly to learn more. The bridge loan can be from any lender of your choice. What is covered by the Bridge Loan Advance? The Compass Bridge Loan Advance can equal up to 6 months of monthly bridge loan payments and eligible closing costs incurred from the bridge loan. Eligible closing costs include the dollar value of any loan fees paid upfront, origination or application fees, if applicable, and appraisal fees. How it works Step #1 - Inquire directly with a bridge loan lender, such as Better.com or Freedom Mortgage, to see financing options and conditions for your loan qualification. Step #2 - Apply to get pre-approved for a bridge loan with the lender of your choice. Step #3 - If approved for a bridge loan, apply with Notable, an independent lender, for the Bridge Loan Advance to cover the first six months of your bridge loan payments. Step #4 - Then use your approved bridge loan to strengthen your offer for your next home. Step #5 - Move into your new home while we market to sell your current home. Pro Tip: Use Compass Concierge home improvement services to sell your home faster and for more money. Step #6 - Use the proceeds from the sale of your former home to pay back the bridge loan and Bridge Loan Advance. Contact us to find out the current value of your home to determine if you have enough equity for a bridge loan. Call or text 925.297.5335. Pete Sabine & Leslie Whitney. Compass #00889760 By Pete Sabine
In a seller’s market, you may have to compete against other buyers, which raises the stakes and makes it especially important that you move through these steps quickly. When you have found a home you love, here is what you need to do to craft an offer that appeals to sellers. Use an escalation clause In a multiple-offer scenario, the last thing you want to do is assume another buyer is paying far above the asking price and submit a higher offer based on this assumption — you might get the property but end up realizing you could have gotten it for less. Consider including an “escalation clause” which states that you are willing to pay a specific dollar amount over the highest competing offer. Here is an example: A home is listed for $850,000 and it has three other offers. You submit an offer of $850,000 with an escalation clause that says you will pay $5,000 more than the highest offer, up to a maximum offer price of $860,000. Then, if another buyer comes in at $855,000, you will automatically offer $860,000 to secure the deal, without going over the maximum amount you are comfortable spending. Accommodate the seller’s timeline Ask if the seller needs a quick close or an option to rent the home after closing to allow enough time to pack and move. For some sellers (like those buying another home or relocating for work), timeline can be as important as the sales price. Waive contingencies Most buyers include contingencies in their offer. In a competitive market, waiving contingencies can make your offer stand out. You can remove the appraisal contingency that is usually included for buyers financing a home purchase as well as the loan contingency only if you are fully pre-approved by your lender. Inspection contingencies are common — and some buyers waive their inspection contingency in hot markets, but this can be risky. The home sale contingency, where your offer is contingent on selling the home you currently own, is included when you need the equity from a home you are selling to purchase your next home. This can make your offer less appealing to a seller, who wants certainty in their plan to fit their own timeline priorities. It is best to complete the sale of your existing home before making offers for your next home. Write a personal letter to the seller Some sellers are sentimental about selling their home and may focus on their desired buyer profile over the highest sales price. When dealing with a seller who has lived in their home for many years with pride of ownership, they might be focused on selling their home to someone who will take good care of it. Write an insightful and sincere letter about why the home is a perfect match and what you love about the house and the community. Let the seller know you are a serious buyer. Over the past 35 years, we have successfully negotiated over 1000 real estate purchase agreements. Call or text 925.297.5335 to benefit from our real estate expertise for your next home purchase. Pete Sabine & Leslie Whitney. Compass. License #01866771 By Pete Sabine After you put your house on the market, you might be hopeful for a quick sale—especially if you've invested a lot of money improving the house and if your neighborhood is in high demand. While you should not panic if the house does not sell right away, you should be concerned after 6 weeks without receiving an offer. Here are some reasons why your house may not be selling. The asking price is too high. If your house is overpriced, it is not going to sell. The longer your property stays on the market, the less likely it will sell at the asking price. Compare your property to similar properties that recently sold within your area to get an accurate idea of its true value. Do not make the mistake of adding 100% of the cost of any renovations you made. The cost of all renovations does not always translate to equivalent added value. Poor presentation. If the listing of your home has a poor description and/or amateur photos, most buyers will not want to visit. Make sure your Realtor creates a listing that attracts the attention of buyers with professional photos and video of the interior and exterior of your home. Houses that smell do not sell. A dirty house leaves a bad impression on buyers. Hire a professional to clean thoroughly the interior including appliances, carpet and windows before showing your house. Lack of emotional appeal. If your home is vacant, do not show an empty house. This makes it difficult for buyers to imagine living in it. Stage your house with furniture and decor to give buyers a sense of space and how it can be used. You want the buyer to feel at home when they tour your home. The décor or remodeling is too personalized. Take down your personal décor so that buyers can have an easier time imagining themselves living there. You might think that dark paint and fixtures in the master bathroom is incredible, but that does not mean potential buyers will agree. If your home improvements or decor are too personalized, most buyers will not get past your unique style and choices for fixtures and finishes. Less is more. If you have too much furniture, it will make the house feel smaller than it is. Too many repairs needed. The more repairs needed, the less likely a buyer will want your house. Many buyers do not want to deal with the cost or effort of doing repair work, even if it is just small repairs, such as tightening a handrail or replacing a broken tile. The market trend changed. Sometimes a hot market can temper by the time your home is offered for sale. Your Realtor should be monitoring the competing home for sale and the supply/demand ratio and communicate with you to make any adjustments in your marketing strategy. You hired a novice Realtor. A seasoned professional Realtor makes all the difference in selling your home at the highest possible price within a reasonable time. All these things can be remedied, however, one of the best ways to avoid making these common mistakes is by hiring an experienced Realtor. We know how to set the stage for your success. Call us to win with us! Pete Sabine & Leslie Whitney. 925.297.5335. Discover more real estate pro tips. Find our podcasts at FiveStarRealEstateTeam.podbean.com. Compass #01866771 By Pete Sabine
Our local real estate market is one of the hottest I have experienced in my 35 years of selling real estate. The current real estate “Seller’s Market” trend is driven by a lack of supply of available homes for sale, low home loan interest rates and strong buyer demand for homes in our area. How long will this trend last? Most likely through the remainder of 2020 and into the first quarter of 2021. Beyond then requires a crystal ball. Here is the formula for selling your home at 10 to over 20 percent above the fair market value list price…Preparation. Presentation. Pricing. Read More: http://petesabineteam.com/sell-home-record-high-sold-price. Preparation prior to offering for sale. Obtain property inspection reports. Complete recommended repairs related to systems operation (appliances, mechanical, etc.) and safety hazards. Obtain a proposal from a professional home staging company. The proposal should include recommendations for interior and exterior paint colors, landscaping, light fixtures, flooring, plumbing fixtures, and cabinet hardware. Beware of Realtors who “self-stage” homes. Hire a professional with liability and workman’s comp insurance and controls their own inventory of staging furniture and accessories. Follow the recommendations of the staging proposal to update your home. Have your home professionally cleaned including windows and tune up your landscaping. Presentation preparation. Have your Realtor hire a professional photographer and videographer to capture the essence of your home. Home buyers scan for homes online and your home must present well with a high level of emotional appeal or most buyers will not make the effort to visit your home. No showings equal no sale. Price your home strategically. Review recent Sold Properties that are nearby and “like-kind” in size, location, and condition characteristics. This data will set the current “fair market value” of your home. Review Pending Properties of similar homes that recently went into escrow. Focus on the List Price of these properties to provide insight of the price point that attracted buyers to make an offer. Review Active Properties currently for sale in your targeted price range. Determine how well your home will compete with homes priced 10 percent above and below your target List Price. Buyers base their decision to buy a home driven by its emotional appeal and supported by a perception of fair market value of the List Price when compared to other available homes for sale with similar intrinsic qualities. Set an Offer Date to review purchase offers 7 to 10 days from your MLS debut date. The offer date strategy ensures that all buyers currently in the market will have a chance to view and bid to purchase your home. It sets the stage for multiple offers with offer prices above your List Price. Hire a skilled negotiator. Your Realtor should have a proven track record. We have been selling homes in your area since 1985 with over 1000 successful sales. Call us to win with us! Pete Sabine & Leslie Whitney. 925.297.5335. Compass. #01866771 By Pete Sabine
Conventional wisdom says people should wait until the spring to get the most from a home sale. Inventory usually increases to meet Buyer demand in the spring when the weather gets warm and daylight savings begins. This often leads to multiple offer competition breaking out in coveted neighborhoods. A home in a great area with high buyer demand can sell in few weeks or in some cases, a few days. If you cannot wait until the spring to get your house on the market, consider offering your home for sale during the holidays. It may not seem like the most ideal time, but it does have its benefits—provided you position your home in just the right way. There’s Less Inventory But that does not mean people do not buy homes at other times of the year. In fact, there are homes listed during the holidays that could command more money when the inventory is limited. If you play your cards right, you may even be able to sell your home quicker than in the spring. One of the reasons is the lack of competing homes for sale during the holidays. The limited range of homes available to buy means you might be able to command a higher asking price for your property. Do your research about the supply and demand, stage your home properly, price it competitively and you could receive an attractive purchase offer and be on your way to your next home. Buyers Are More Serious If your house is for sale in the winter and someone is looking at it, chances are that person is serious and is ready to buy. Anyone shopping for a new home around Thanksgiving, Christmas, or New Year’s is undoubtedly going to be a serious buyer—they are not going to spend their precious time around the holidays seeing how the other half lives. Putting your home on the market at this time of year and attracting a serious buyer can often result in a quicker sales process. That Warm and Cozy Feeling The holidays are often a time when people gather around the fireplace with hot chocolate and enjoy entertaining friends and family. Homeowners who put their houses up for sale during the winter months can stage their house to give off a cheerful and cozy vibe that appeals to many buyers. Buyers tend to be more emotional during the holidays and many will make a buying decision based on how they feel about vibe of the home for sale. An Appealing Neighborhood One of the traditions of the holiday season, particularly around Christmas, is that many homes are adorned with festive lights and decorations that can pull on the heartstrings of a buyer. Duty Calls The end of the year is typically when people are notified that they will be moving because of a job transfer. Those people are going to need a home as soon as possible and they will be searching for a new home during the holidays. These buyers cannot wait for the spring, which is why listing your home during the holidays can get the home sold quickly. Hiring an experienced Realtor who will attract serious buyers during the holidays. We know how to set the stage for your success. Call us to win with us! Pete Sabine and Leslie Whitney. 925.297.5335. Discover more real estate pro tips. Find our podcasts at FiveStarRealEstateTeam.podbean.com. Compass #01866771 By Pete Sabine
There are two main parts to the law and two major deadlines. New rules for transfers of inherited property will begin Feb. 16, 2021. New rules for taking a favorable assessment on a home purchase begin April 1, 2021 and the replacement home must be purchased within 2 years of the sale date. The main provision of Prop 19 allows the owner of a primary residence who is 55 years of age or older, or severely disabled or who lost their home to wildfire disaster, to transfer the taxable value (its tax basis) of that residence to a replacement primary residence anywhere in the state. If you sell your home, with a taxable value of $100,000, and buy a new primary residence in California, you will be able to keep the benefit of that basis for your new home. Prop 19 allows for the easier movement of a primary residence’s taxable value. The old law only allowed a basis to be moved between two counties if those counties opted into the law. Prop 19 on the other hand, allows for that movement “anywhere in this state.” Additionally, contrary to prior law, Prop 19 allows a primary residence’s tax value to be moved three times as opposed to only once. So, if you are over 55 years old, it is easier to move and keep the tax benefit of their original home. The law provides that if the taxable value of a home is transferred to a replacement that is “of equal or lesser value,” then the taxable value of the replacement primary residence will be the same as the taxable value of the original. The basis of your original home gets transferred exactly to your new home. If you transfer your basis to a replacement property that is of greater value, then the basis for your new home is calculated as follows: the taxable value (basis) of your original primary residence is increased by the difference between the cash value (sales price) of your original residence and the cash value (purchase price) of your replacement residence, and that new number becomes your replacement home’s basis. As an example, if your current, original residence has a tax value of $100,000, but a cash value of $500,000, and you buy a replacement primary residence for $1 million, then the tax value (basis) for the new home will be $600,000 (the original tax value ($100,000) plus the difference in cash value between the two properties ($1 million minus $500,000). Even though there is a step up in basis that recognizes the increased value of my new home, it is kept down by using the basis of my original residence as a starting point. While Prop 19 still covers the transfer of a family home between parents and their children, including through inheritance, the tax value can only be transferred if the property continues as the family home of the transferee. If you inherit your parents’ property, you can only keep their tax basis if you continue to use that property as your primary residence. If you want to use the property as an investment, you will not get the benefit of the property’s original basis. The reduction in tax income resulting from the easing of tax basis transfers for older homeowners has been offset by an increase in tax income from inherited investment properties. Some will save money because of Prop 19 (homeowners over 55 who move within California), while others will pay more tax (children who inherit property for use as an investment). Please consult with your tax professional to understand your specific tax issues. Call us to win with us! Pete Sabine & Leslie Whitney. 925.297.5335. Discover more real estate pro tips. Find our podcasts at FiveStarRealEstateTeam.podbean.com. Compass #01866771 |
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January 2024
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