Independence Day

I was just watching a video of a guy asking American's what Independence day means. Independence from what? When did it happen? Who are our founding fathers? And I was literally appalled. Apparently there are many American's that do not know what Independence day means. So although this Blog is typically dedicated to real estate, as this is what I do for a living, I thought I would make today's blog about the history of Independence Day.

Independence day was July 4th 1776. On that day we declared our independence from England. This was when we were the original 13 colonies. "Conflict between the colonies and England was already a year old when the colonies convened a Continental Congress in Philadelphia in the summer of 1776. In a June 7 session in the Pennsylvania State House (later Independence Hall), Richard Henry Lee of Virginia presented a resolution with the famous words: "Resolved: That these United Colonies are, and of right ought to be, free and independent States, that they are absolved from all allegiance to the British Crown, and that all political connection between them and the State of Great Britain is, and ought to be, totally dissolved."

Lee's words were the impetus for drafting the Declaration of Independence. On July 1, 1776, the Continental Congress reconvened, and on the following day, the Lee Resolution for independence was adopted by 12 of the 13 colonies, New York not voting. Discussions of Jefferson's Declaration of Independence resulted in some minor changes, but the spirit of the document was unchanged. The process of revision continued through all of July 3 and into the late afternoon of July 4, when the Declaration was officially adopted. Of the 13 colonies, nine voted in favor of the Declaration, two -- Pennsylvania and South Carolina -- voted No, Delaware was undecided and New York abstained. John Hancock, President of the Continental Congress, signed the Declaration of Independence. It is said that John Hancock's signed his name "with a great flourish" so England's "King George can read that without spectacles!"

Our original founding fathers were George Washington, Jame Madison, Thomas Jefferson, John Adams, Alexander Hamilton and Benjamin Franklin.

I hope everyone enjoys their 4th of July celebration and remember to celebrate the Independence we gained over 200 years ago from England. For it is that Independence that the July 4th celebration is all about! 

Vote

Sometimes we aren't sure if we can squeeze in the time to vote. We spend the entire year complaining about the things we do not like about what's going on in our city, state, and country, but then when we are given an opportunity to make a difference we find ourselves too busy to make it to the voting polls.

As a real estate agent I have specific concerns. I am concerned about out economy, and I am concerned about the safety of our communities.

These, I would say, have to be at the top of my list. 

There are two main parties in the elections that pretty much narrow our options.

In this election we have an extremely liberal democrat in Hillary Clinton who would like to continue down the same road Obama has taken us on. The liberals play on the emotions of the American people saying it is important for us all to "take care of the less fortunate". The liberals thought process is that they take from the rich to give to the poor. The liberals also believe in a one world order, which means we have to befriend our enemies. This isn't good policy for making America safe. 

On the other side we have the republicans. Our option this time around is Donald Trump. Donald Trump is somewhere down the middle, which is why many establishment politicians do not agree with him. I believe this could be a positive in his favor because he can appeal to many voters from both sides of the isle. The republican stance is usually more conservative on many issues. But as I mentioned my main concerns as a realtor is that of the economy and the safety of our communities. 

Trumps thought process, along with republicans is teach a man to fish and he can care for himself for a lifetime. In other words create more jobs, so there are more opportunities for all. Stealing from the rich to give to the poor is a viscous circle that begins and then never ends until the rich become a part of the poor and there are no more funds to distribute. Donald Trump believes that we should adhere to the laws of the land that are already on the books with regard to immigration. Legal immigration is more than acceptable, it is encouraged, but on the other hand, illegal immigration is not acceptable and should not be ignored. Building a wall will send the signal that we are serious about adhering to the laws that are already on the books with regard to immigration. Without going too deep into my personal beliefs I just wanted to point out two clear differences in this election year.

1. Democrats= less safe community because the laws will be ignored

2. Democrats= continued poverty because the rich will leave or quickly go broke trying to provide for the millions at poverty level. 

1. Republicans= more jobs, lower taxes, thereby creating more opportunities for people to get themselves out of poverty.

2. Republicans= safer environment by vetting people who come here more stringently, and no longer allowing illegal immigration, which keeps us from knowing who comes here.

Yes, I am a republican and I would truly love to see increased incomes for all by way of more job opportunities so that I can help make everyone realize their dream of home ownership. 

Just an additional FYI:

Trumps Tax Plan

Income Tax Rate	Single Filers	Married Filers	Heads of Household
0%	$0-$25,000	$0-$50,000	$0-$37,500
10%	25001-$50,000	$50,001-$100,000	$37,501-$75,000
20%	$50,001-$150,000	$100,001 to $300,000	$75,001 to $225,000
25%	$150,001 and up	$300,001 and up	$225,001 and up

Hillary Clinton Tax Plan

Income Tax Rate	Single Filers	Married Filers	Heads of Household
10%	$0 to $9,275	$0 to $18,550	$0 to $13,250
15%	$9,275 to $37,650	$18,550 to $75,300	$13,250 to $50,400
25%	$37,650 to $91,150	$75,300 to $151,900	$50,400 to $130,150
28%	$91,150 to $190,150	$151,900 to $231,450	$130,150 to $210,800
33%	$190,150 to $413,350	$231,450 to $413,350	$210,800 to $413,350
35%	$413,350 to $415,050	$413,350 to $466,950	$413,350 to $441,000
39.60%	$415,050 to $5 million	$466,950 to $5 million	$441,000 to $5 million
43.60%	$5 million and above	$5 million and above	$5 million and above

How do you know when it is time to buy rather than rent?

Well, my thoughts are that when rents increase so much that it is cheaper to make a monthly mortgage than to pay rent, especially when the rents increase annually.

Please pardon the numbers. A single family home in Mission Viejo goes for about $550,000. Down payment as low as $20,000 Monthly mortgage as low as $2250 a month. Single family homes for rent in Mission Viejo are as low as $2700 a month and as high as $3500 a month.

Basically, it can be time to buy now, as the rents continue to rise, the number of homes available to rent continue to decline and the number of homes available to purchase go up.

The first thing you should do is contact a lender and get an idea of how much home you can afford to purchase. They can check your credit and income and expenses and make a determination based on the max monthly payment you can afford per month, or the max that you want to pay per month.
With that monthly payment determined and how much you plan to put down, they can tell you how much house you can buy.

Then you contact a realtor and we can show you all the homes in your preferred area with your preferences and in your price range.

Once we find that perfect home, we will walk you through the rest of the process.

If you have any questions about this process, or anything, just call Julz.
www.justcalljulz.net

Am I ready to buy a home?

There are a few things that you should do to prepare yourself to purchase a home.
The first, and likely one of the most important, is making sure your credit is good. The better your credit, the higher the FICO score. The higher your score the lower the interest rate that you will qualify for.

Another thing to consider is the cost for the down payment. You can get an FHA loan with as little as 3.5% of the purchase price as your down payment. This helps a lot when you have to save up that down payment.

Closing costs? Well, closing costs vary depending on a number of factors. How much your lender charges, the price of the home effects the cost of title, escrow and other fees that are calculated against the purchase price. Then there is the first few weeks of interest payments on the loan, until your first monthly payment is due, as well as the first few months of property taxes.

However, there are programs that can help with your down payment, if you qualify.
There are also ways to write an offer that will assist with the closing cost expense.

I recently got a buyer of mine to move in for nothing but the down payment.
Prior to that I was able to get someone into a home with nothing down and no closing costs.

If you are curious about these programs or any others just call Julz.

www.justcalljulz.net
949-633-6788
Lic 01754588

Advocating for your clients is what Realtors should do in every situation.

Advocating for your clients is what Realtors should do in every situation.

I had a situation not long ago where I represented the seller. When we received an offer, the same day the fully executed purchase contract was signed the disclosures were sent along with them to the buyer’s agent. The disclosures include many things, but some of the most important are the ones that the seller fills out that ask specific questions about the home.

A couple of questions would be, has anyone died in the home in the last 3 years, have you had a leak in the home, stuff like that, just to give you an idea. Well one of the questions that my buyers answered was regarding the roof. They noted on the disclosure that there had been a roof leak, but that they had the roof repaired.

Now the buyers have 17 days to do a home inspection. They can do just a regular home inspection, a termite inspection, a roof inspection, a structural foundation inspection; whatever inspections they want to do they have the ability to do. The buyers waived their right to a home inspection in this situation.  Now, had I been the realtor that represented the buyers I would have urged them to at least get a roof inspection because of the disclosure about the prior roof leak noted in the paperwork that was provided by the seller.

But needless to say that didn’t happen. Long after the close of escrow I get an e-mail from the buyer’s agent telling me that my client has to pay for her clients to get a new roof. I said no they don’t. So that agent, after the fact, was trying to help her clients, when the best help would have been during the course of the sale and within the time periods allowed for the buyers to make important decisions about continuing with the process of the purchase.

At any rate, I made a quick inquiry to my clients and they reminded me that they had disclosed the prior roof leak and that it had been repaired.

So, being an advocate for my client I went back to the buyer’s agent, provided a copy of the disclosure that clearly stated that information, I provided the date at which this information had been provided and then reminded the agent that her clients had a responsibility to do their due diligence and get a home inspection and I pointed to her that she should have encouraged them to do that. I also reminded the other agent that she had a responsibility to her clients to make sure they fully understood the information that was provided. She could have also asked for a home warranty that would include roof coverage, but the agent didn’t make sure her clients were protected.

I am sure there are many stories out there of people who have been left feeling like they lost something in the course of the sale or purchase of their home. This is why it is so very important to choose your realtor, not just based on their years of experience, but based on the kind of person they are and what they will do to make sure you have a smooth transaction and that you are protected the entire way through.

If you have any questions about this story or anything else, please just call Julz. 949-633-6788

www.justcalljulz.net

Real Estate Agent -----OR-----Advocate?

I am about to tell you a story that is really unfortunate. I have a new client who previously sold a home with a different realtor. As I listened to her story about the sale of her home that was completed with her prior real estate agent I literally cringe. Now this blog is not to call out any specific individual, nor to place a dark cloud above realtors, it is strictly intended to provide you with information so that you can make the right choice when choosing your real estate agent.

This client we shall call Jane who had a realtor we will call Joe represent her in the sale of her home. The home was being sold AS IS as stated in the MLS. It was also a short sale, which means the homeowner owed more than the homes current value.

The agent Joe was hired because he said he had a buyer for the home. The homeowner, Jane, had already gotten a buyer that was willing to pay more than this new buyer. Jane asked Joe to make sure to submit both offers to the bank for them to choose the best of the two. Joe said no, I will just be submitting my buyers offer. And that offer was for less money. This leaves Jane with a higher tax implication when the sale is completed because less of the loan gets paid off.

Also, during the sale, Jane asked Joe to submit a request for an $8500 credit to be applied to the second on the home and once that was paid Jane was going to transfer the remaining part of this debt to another home to be paid off at a later time. Joe said no, I don't want to muddy this transaction, you need to just transfer that second now.

Jane is also required to fill out lots of disclosures to let the buyers know what they are aware of with regard to the home. This is something that should be completed at the beginning of the sale so the buyers can make an informed decision about whether to move forward with the purchase, or ask for repairs, or for credit. However, Jane wasn't provided this paperwork until the day before close of escrow was scheduled. Jane asked the agent to meet with her to make sure she filled the paperwork out properly, Joe didn't show up to the meeting, and just texted the homeowner and said just fill it out. 

The buyers, which appeared to be represented by the same agent, Joe, were scheduling the home inspection, but the utilities weren't on, so the homeowner jumped through hoops (on Superbowl Sunday) to get all the utilities turned on, but the gas company required someone to be present. Jane offered to meet with the gas company, then Joe said don't worry about it.
The buyers did some kind of inspection, I am not sure to what degree, (because I am not involved in this sale) but obviously didn't inspect anything that required the gas to be on.

Jane followed up with Joe and asked if they wanted the gas on, did the inspection go ok with everything else, and the agent said, don't worry about it, we are good to go. We should be closing soon.

Now, fast forward about 6 weeks after close of escrow and the new homeowner is asking the old homeowner, Jane, to pay for a complete re-piping of the entire gas line. They are stating that the seller knew there was something wrong and that she is responsible.

Back up to the top and as noted, the home was being sold AS IS, whether the homeowner knew there was an issue or not, it was being sold AS IS. And for the record Jane didn't know there was anything wrong with the gas line, as the gas was turned off months before they opened escrow, and Jane didn't have any issues at the time she had lived there.

Joe called for quotes to replace the piping and called Jane (supposed to be the agents client) and TOLD her she was going to have to pay for the re-piping.

Now this particular real estate agent wasn't representing her client in the fashion that is expected per the rules of the California Association of Realtors. We are supposed to have a fiduciary responsibility to our clients, but it appears the fiduciary responsibility of this agent was for the buyer and not for the seller.  

This is now a case that has legal representation with no outcome just yet, but once resolved I will post another blog.

The reason for this story is that I am a firm believer that when you are buying or selling a home, you need to have proper representation, so when you are interviewing potential real estate agents to represent you, make sure they are going to be your advocate, not just someone who wants to close a transaction. For you this is buying a home, for many real estate agents this is simply another transaction, for me it is an opportunity to represent my clients to the best of my ability keeping THEIR best interest in mind throughout the process. And for the record, the agents are supposed to follow your direction, not impose their own choices on you in the process.

For more information on this story, or to understand the difference between a Realtor and an advocate just call Julz.
www.justcalljulz.net

Do you know what a 1031 Exchange is?

Recently I have had a couple of clients ask me about doing a 1031 exchange. This is a government program that allows you to defer capital gains taxes.

This program only applies to investment homes where you are using it for income. For example, if you have a home that you are renting out to tenants, and lets say the lease is about to expire and you aren't sure if you want to retain this home or sell it to buy another in a different location.

Then you see that you have gained some equity in the home and you decide to sell it and to re-invest in a new home in a different area. When you sell the first home you would normally be required to pay the capitol gains taxes on the equity you gained.

But by using the 1031 exchange, you can now buy another home in a different location and defer those taxes. In other words, you don't have to pay those taxes today.

There are many more details regarding the 1031 exchange, how it works and the time frames in which to complete the 1031 exchange.

For more details, please just call Julz. 949-633-6788

www.justcalljulz.net