An Email I Sure Didn't Want to Get

I've been working with a couple for a little bit now. We went to see something outside the box yesterday. We drove in separate cars. We wore masks and gloves the entire time we were in the home. I take my gloves & mask off inside out and leave any germs tucked inside those little buggers and throw away when I get home.

After that appointment, I went over to see another client. Sanitized my hands as I was getting out of my car. Put another mask on. They were wearing masks as well.

Later last night I received an email from the listing agent from the outside the box home I showed earlier in the day. This was from her seller.

"I want to let you know that I found out today that a person who I had contact with recently tested positive for Covid-19.   My last contact with that person was 37 hours ago.  That person was staying at my house for 6 days prior to leaving at 3:30am Wednesday morning."

So after a few, 'Oh crap' comments, I forwarded the email to the buyers that came in the house, called them as well to alert them. Called my office manager. And, then forwarded the email to the client I saw afterwards and called her as well. She's a nurse and works testing Covid all day long. I said a few more Oh Craps to her and she put me at ease. She reminded me that I did everything right, that I wasn't in direct contact with the Covid person (the house was vacant when we went in), and that per the CDC I would have had to be in direct contact with that person, less than 6ft away and/or have touched something that person touched in the last 15 minutes to be considered exposed.

So, the purpose of this post? To remind you to be vigilant. To follow the rules when viewing or showing homes. To be very careful with yourself and the people you are responsible for. I can't control everyone, but I can control the clients I work with & they are definitely following the rules.

This is going to be around for a while. Make sure the agent you're working with is following the guidelines for the safety of themselves, you, and your family.

That 15K Biden is Suggesting May, or May Not, Be A Great Thing.....

Read an article from one of my housing drips and I'm just copying and pasting here so you know it's not just my opinion but from the National Association of Realtors.

It does, however, make complete sense to me.

"The news over the weekend that former Vice President Joe Biden is now president-elect elicited positive reactions from several real estate leaders who saw the upside for the housing market.

Biden’s housing proposals include a $15,000 first-time homebuyer tax credit and he will focus on fair housing and affordable housing issues. He is also likely to appoint a new head of the Federal Housing Finance Agency.

The National Association of Realtors Chief Economist Lawrence Yun told HousingWire that the $15,000 tax credit is good news since it can go a long way in terms of helping first-time homebuyers and minority households. However, that’s only one part of the solution.

“But that’s not the full story, the full story is that stimulating the demand just by itself I think is insufficient,” Yun said. “Right now the housing market is facing a significant housing shortage. So if we add further stimulus to the demand without addressing the supply… it will simply bump up the prices even higher.”

Yun said that the ongoing housing supply shortage is getting worse and not enough homes are being built to face the demand.

“We simply have not been building a sufficient amount of homes,” Yun said. “We also need to address the supply side, how do we bring more supply? It’s going to take some time, but just adding more fuel to the housing demand without addressing the supply would just simply mean that home prices could accelerate much higher and partly negating some of the benefits of the $15,000 tax credit.”"

Back to me now. I do love tax credits for first time buyers, it's helped many of my clients in the past. But, I am not a fan of it until we get more homes on the market, because, like Yun says.....we'll just drive up prices more with more demand if there is 15k in someones pocket to buy. We Need More Inventory.

I Was Just Talking With A Dear Friend About This on Monday!

Should I Renovate My House Before I Sell It? 

Some Highlights

• In today’s hyper-competitive market, buyers are often willing to overlook cosmetic or minor repair needs if it means snagging a home in their price range.
• With so few houses available for sale today, you may be able to skip the bigger renovations before you sell and cash in on the current demand for your house.
• If you’re ready to move, let’s connect to determine your best next steps in this sellers’ market.

A Couple Reminders About Home Equity

Two Important Impacts of Home Equity

Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from CoreLogic, the average homeowner gained $9,800 in equity over the past year. In addition, experts project 2020 home prices to continue rising. With prices going up, equity gains will also keep accelerating. Black Knight just reported:

“The annual percent change in the overall median existing single-family-home price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.”

Jeff Tucker, Senior Economist at Zillow, just qualified recent price increases as “jaw-dropping” and “within a hair's breadth of double-digit year-over-year appreciation.”

Knowing equity will help enable many homeowners to better survive the economic distress caused by the ongoing pandemic, it’s important to break down two key homeowner benefits of increasing equity.

1. Equity Increases a Homeowner’s Options to Buy a New Home

Aside from the financial damage of the last seven months, there has also been a tremendous emotional toll on many people. Shelter-in-place mandates, quarantine requirements, and virtual schooling have all made us re-evaluate the must-have requirements a home should deliver. Having equity in your current house gives you a better opportunity to move-up or build your perfect home from scratch.

Mark Fleming, Chief Economist at First American, recently explained:

“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”

If you need to make a move, the equity in your current home can help make that possible – right now.

2. Equity Enables Homeowners to Help Future Generations

An increase in home equity grows overall wealth, which can transfer to future generations. The Federal Reserve, in an addendum to their recent Survey of Consumer Finances, explains:

“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”

The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:

“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children's educational success by paying for college or private schools, which can in turn increase their children's ability to accumulate wealth.”

Bottom Line

Equity can help a homeowner grow their confidence in a more stable financial future. It provides near-term move-up options and creates a positive impact for future generations. In many cases, the largest single investment a person has is their home. As that investment appreciates in value, financial options increase too.

California Property Tax Scammers Going Door to Door

 

COUNTY OFFICIALS WARN AGAINST PROPERTY TAX SCAM Scammers Going to Taxpayer Homes to Collect Property Tax Payments

 

LOS ANGELES, CA - Los Angeles County Treasurer and Tax Collector Keith Knox and County Assessor Jeffrey Prang are alerting the public to a property tax scam under the guise of COVID-19 that has been reported to a District Office of the Assessor.   It’s being reported that unknown people are attempting to fraudulently collect in-person property tax payments at taxpayers' homes because of COVID-19. The individuals may even have fake identification as well as the tax bill for the specific homeowner in question. These individuals allegedly are claiming that the homeowner must pay their property taxes in-person because the COVID-19 pandemic has closed County offices to the public. “Please note that the County of Los Angeles Treasurer and Tax Collector (TTC) does not conduct in-person visits to collect property tax payments and that any attempts to collect in-person payments are fraudulent,” said Keith Knox, Los Angeles County Treasurer and Tax Collector. “Should you be contacted at your home or hear about this in your neighborhood, do not make payment to the person requesting it and notify local law enforcement immediately. Be sure to provide a detailed description of the individual.” Assessor Prang agreed, saying that residents need to be aware of this scam and not to engage with anybody seeking an in-person property tax payment. “It’s important to be cautious with anybody making unsolicited offers,” Assessor Prang said. “Appraisers sometimes will visit homes to appraise the property but our appraisers will never ask for tax payments. This current activity is a scam and it's important to report it to the authorities immediately.”  Due to the COVID-19 pandemic, the TTC and Assessor offices are closed to the public and the TTC is not accepting in-person payments.  The TTC accept payments online, by mail, or over the telephone.  For details on available property tax payment options, visit ttc.lacounty.gov. For Assessor information go to assessor.lacounty.gov.

Reminding About Forbearance & Mortgage Relief During COVID

 Do You Need to Know More about Forbearance

 and Mortgage Relief Options?

Earlier this year when the nation pressed pause on the economy and unemployment rates jumped up significantly, many homeowners were immediately concerned about being able to pay their mortgages, and understandably so. To assist in this challenging time, two protection plans were put into place to help support those in need.

First, there was a pause placed on initiating foreclosures for government-backed loans. This plan started on March 18, 2020, and it extends at least through December 31, 2020. Second, homeowners were able to obtain forbearance for up to 180 days, followed by a potential extension for up to another 180 days. This way, there is a relief period in which homeowners have the opportunity to halt payments on their mortgages for up to one year.

Not Everyone Understands Their Options

The challenge, according to Matt Hulstein, Staff Attorney at non-profit Chicago Volunteer Legal Services, is, “A lot of homeowners aren’t aware of this option.”

There’s definitely traction behind this statement. In a recent survey by The National Housing Resource Center, housing counselors from across the country noted that many homeowners really don’t know that there is help available. The following graph indicates the reasons why people who are in this challenging situation are not choosing to enter forbearance:The Urban Institute explained:

“530,000 homeowners who became delinquent after the pandemic began did not take advantage of forbearance, despite being eligible to ask for the plan…These responses reflect a need to provide better information to all homeowners. (Lump-sum payment is not the only repayment option.)

Additionally, 205,000 homeowners who did not extend their forbearance after its term ended in June or July became delinquent on their loans. We need to examine who these people are and why are they not extending their option.”

Clearly, a more focused effort on education about forbearance and relief programs may make a big difference for many people, and a clear understanding of their options is mission-critical. Some communities, however, have been impacted by the economic challenges of the pandemic more so than others, further confirming the need to deliver education more widely. The Urban Institute also indicates:

“Black and Hispanic homeowners have been hit harder than white homeowners…nearly 21 percent of both Black and Hispanic homeowners missed or deferred the previous month’s mortgage payment, compared with 10 percent of white homeowners and about 13 percent of all homeowners with payments due.”

Options Available

It’s important to note that any homeowner experiencing financial hardship has the right to request forbearance. If you’re unfamiliar with the plans available, contact your mortgage provider (the company you send your mortgage payment to each month) to discuss your options. It is a necessary next step, as you may qualify for mortgage relief options or forbearance.

One option many homeowners may not realize they have is the ability to sell their house in this time of need. With the growing equity that homeowners have available today, making a move might be the best option to protect your financial future.

Bottom Line

If you need additional information on your options, you can review the Protect Your Investment guide from the National Association of Realtors (NAR) and the Homeowner’s Guide to Success from the Consumer Financial Protection Bureau (CFPB). For the majority of people, our home is the most important asset we have, and you should use all the help available right now to be able to preserve your investment.

If You're Wondering About Buying Your Retirement Home Now.......Read On!

Should You Buy a Retirement Home Sooner Rather than Later?

Every day in the U.S., roughly 10,000 people turn 65. Prior to the health crisis that swept the nation in 2020, most people had to wait until they retired to make a move to the beach, the golf course, or the senior living community they were looking to settle into for their later years in life. This year, however, the game changed.

Many of today’s workers who are nearing the end of their professional careers, but maybe aren’t quite ready to retire, have a new choice to make: should I move before I retire? If the sand and sun are calling your name and you have the opportunity to work remotely for the foreseeable future, now may be a great time to purchase that beach bungalow you’ve always dreamed of or the single-story home in the sprawling countryside that might be a little further out of town. Whether it’s a second home or a future retirement home, spending the next few years in a place that truly makes you smile every day might be the best way to round out a long and meaningful career.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home…We may begin to see a boost in people buying retirement homes before their retirement.”

According to the 20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (75%) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, almost 4 in 10 retirees (38%) have moved into a new home. They’re making a profit by selling their current homes in today’s low inventory market and using their equity to purchase their future retirement homes. It’s a win-win.

Why These Homeowners Are Making Moves Now

The health crisis this year made us all more aware of the importance of our family and friends, and many of us have not seen our extended families since the pandemic started. It’s no surprise, therefore, to see in the same report that 32% of those surveyed cited the top reason they’re making a move is that they want to be closer to family and friends (See graph below):The survey also revealed that 73% percent of retirees currently live in single-family homes. With the overall number of homes for sale today hitting a historic low, and with the buyer demand for single-family homes skyrocketing, there’s never been a more ideal time to sell a single-family home and make a move toward retirement. Today’s market has the perfect combination of driving forces to make selling optimal, especially while buyers are looking to take advantage of low interest rates.

If you’re one of the 73% of retirees with a single-family home and want to move closer to your family, now is the time to put your house on the market. With the pace homes are selling today, you could essentially wrap up your move – start to finish – before the holidays.

Bottom Line 

Whether you’re looking to fully retire or to buy a second home with the intent to use it as your retirement home in the future, the 2020 fall housing market may very well work in your favor. Let’s connect today to discuss your options in our local market.