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Neighborhoods UG
Cambridge Way
Brookvale
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October 2006 Newsletter
1.
Increase Your Homes Vale by 50%. What can
you do to increase your homes equity by 50%?
2._Real
Time Home Price Data
3.
Free 411 Service
Provides free phone directory service
for the price of listening to a small ad.
4.
Unmotivated sellers make real estate deal tricky
Finding the right house to buy is rarely easy. Negotiating the right
price and terms can be even harder. The best deals are made between buyers and
sellers who are motivated. Commitment is critical.
5.
Tax
deduction difficult when name's not on title
6.
Do asbestos
air ducts require replacement?
This Month's Hotlink
New School API Scores' Released 8/31/06
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1.
Increase Your Homes Vale by 50%
by Sunil Sethi
What can you do to increase your homes equity
by 50%?
The biggest factor in valuing a home is its neighborhood or more precisely its
school. The biggest driver for a buyer is generally the quality of the school.
And the way most buyers judge the quality of a school is its API score.
In Fremont, we have some of the best schools in the state based on API scores.
The homes associated with Fremont’s Mission San Jose High School, command a 50%
premium over the other schools in Fremont, simply because all the elementary,
middle and high schools associated with this high school are high performing
schools. Here are the API scores for 2006: For the elementary schools:
Chadbourne 975, Gomes 989, Mission San Jose 991, Mission Valley 944), for the
middle school: Hopkins 972), and for the high school (Mission San Jose 932). FYI
1000 is a perfect score.
Homes in the Mission Schools neighborhood sell between $500 to $750/sqft. These
homes are generally old, have dated layouts and lower ceiling heights than you
will find in today's newer construction.
In other parts of Fremont, where only the elementary school scores between
800-900, and the middle and high school get a score in the high 700s the homes
sell for $330-$500/sqft.
Similarly in Union City, West of Union City Blvd., where the homes are all newer
construction (read modern more pleasing interiors), and associated with Delaine
Eastin Elementary API 876, Alvarado Middle 768, and James Logan High School API
731. These homes sell between $360-$450/sqft.
These homes are close to 2/3 the price of the Mission San Jose School
neighborhood, yet they are newer, in better condition and better kept
neighborhoods.
If these neighborhoods were to organize, and work with schools, teachers, to
create after school programs to help raise their scores above 900, it would be
possible to increase the demand for homes in these neighborhoods.
The best suited for this effort, would be communities that are online, with
households that have time to contribute to giving their kids the attention they
need to accomplish this goal.
It's never been attempted before, but worth an effort.
Latest Housing Stats:
Apple Appraisal Statistic s Page
Bay East Stats Page
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2._Real
Time Home Price Data
If you rely on what the newspaper print to
get your housing stats, you'll be relying on data that's 30-60 days old. If you
want to get data that hasn't hit the recorder's office yet, you need to talk to
your realtor or second best, try using Altos. Simply put, Altos works with
current MLS listing data to monitor very localized housing markets down to small
towns (currently it's only available in the Bay Area and Seattle). The data is
fresh because Altos doesn't "wait" for the data to hit the recorder's offices.
The methodology is markedly different from the Zillows and other statistically
oriented home valuation models that use historical data that can be 1-2 months
old. However just like Zillows, results need to be professionally interpreted so
does this data. Altos
Research website
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3. Free 411 Service
Provides free directory service for the price
of listening to a small ad. It beats paying $2-3 for the phone # look-up.
http://www.free411.com/
back to
top
4.
Unmotivated Sellers Make Real Estate Deal Tricky
By Dian Hymer
Finding the right house to buy is rarely easy. Negotiating the
right price and terms can be even harder. The best deals are made between buyers
and sellers who are motivated. Commitment is critical.
`
You can waste a lot of time and energy with a seller who's not motivated to sell
at market value. Imagine this scenario: You decide to make an offer on a house
you love. To make sure it's accepted, you offer the asking price. You expect the
seller to embrace you with open arms. But, he doesn't. In fact, he's
disappointed because he really wants to sell for quite a bit more than he's
asking.
Last year, sellers obtained multiple offers and high selling prices--the result
of years of healthy home-price appreciation. This year is different. In most
areas prices aren't dropping. But they aren't rising at nearly last year's pace.
Unfortunately, some sellers are still pricing their homes for last year's
market.
HOUSE HUNTING TIP: How can you keep from wasting your time on an unrealistic
seller? Find out why the sellers are selling. Motivated sellers are prepared to
sell at market value, whatever that might be. They are sellers who have a
pressing need to sell, as opposed to sellers who merely want to sell if the
conditions are right.
Sellers who have been transferred or who have already bought another home are
usually motivated. So are homeowners who have experienced a change of life that
requires the property be sold, such as a divorce or death in the family.
However, beware if the seller is selling because he'd like to move, but he's in
no hurry. Or, he'll sell only if he can get a certain price. Another
less-than-motivated seller is one who'll sell if he can find the right house to
buy. You could wait for forever for the seller to find his dream house. If
there's no urgency to sell, the seller isn't motivated. You're looking for a
seller who will sell, not one who may sell.
The list price can be an indicator of the seller's motivation. If the house has
been listed for several months without a price reduction, this could indicate a
less-than-motivated seller, depending on the marketplace.
Find out the average length of time it takes listings to sell in the area. A
listing that has been on the market longer than average without a price
reduction is a tip-off that the seller might be unrealistic. If there's no
pressing need for the sellers to sell then they'll be less likely to negotiate
if they receive an offer for less than they want.
If you're interested in a listing that has been on the market for some time
without a price reduction, find out why it hasn't sold. Has the seller turned
down reasonable offers? If so, keep looking.
Motivated sellers usually prepare their homes for sale before putting them on
the market. A well-staged house is a good sign. Another positive indicator is a
listing that's easy for agents to show. A listing must be shown in order to be
sold. If the seller insists on restricted showings, the seller is making it
difficult for agents to do their job. He is impeding the sale.
Is the seller ready to listen to offers within a reasonable time after they're
written? Or does the seller only want to make the time to hear an offer if the
price is right?
THE CLOSING: Negotiation is back in vogue. If the seller's not flexible, find
one who is.
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5. Tax
deduction difficult when name's not on title
Couple attempts to help parents tap benefits
By Robert J. Bruss
DEAR BOB: My wife and I just bought a house for
her parents because they couldn't get a mortgage. They live in the house and pay
us for the mortgage. We want them to get the tax deductions. But we are
concerned about adding them to the title in case they end up in a nursing home
or in some other way are forced to use the home's equity. Is there a way for
them to get the tax deductions and avoid liability if they are sued? We are
considering a contract for deed but are concerned about the tax liability on
ourselves --Jeff R.
DEAR JEFF: Unless the parents' names are on the home title or they have a
contract to buy their principal residence (such as a contract for deed), they
are not entitled to claim itemized income-tax deductions for the mortgage
interest and property taxes they pay. Please consult your tax adviser to discuss
your tax choices.
HOW CAN EX-WIFE GET EX-HUSBAND'S NAME OFF HOME TITLE?
DEAR BOB: I got a divorce and my ex-husband's name has been taken off
everything, but the title company refuses to take his name off the house. What
can I do? --Kellie W.
DEAR KELLIE: To get your ex-husband's name off the title to real estate, he must
sign a quitclaim deed to you. If he refuses to do so, his name remains on the
title. The title company can't do anything without his properly notarized
quitclaim deed signed by him. Your divorce attorney should have insisted on
receiving this important document as part of the divorce proceedings.
WHAT CAN HOMEOWNER DO ABOUT EMPTY UNDERGROUND TANK?
DEAR BOB: I am the fifth owner of an 80-year-old house. I have owned it for 11
years. While trying to determine why a patch of my lawn was dying, I discovered
the home's original underground heating oil tank. This was not disclosed to me
when I bought the house. As best I can determine, the tank has not been used for
35 years. It is empty. I estimate it to be 700 gallons. Should this have been
disclosed to me? --Gary J.
DEAR GARY: If your seller knew of the underground oil storage tank, he or she
should have disclosed it to you. However, since you have owned the house 11
years, the statute of limitations expired long ago.
But I doubt that is the cause of the brown patch in your lawn. If there was any
oil in the leaking tank, it would seep downward, not upward. Perhaps the soil
above the tank was contaminated when the tank was being filled. Maybe a simple
replacement of the soil above the tank will solve your lawn problem. For details
on the legal aspects, please consult a local real estate attorney.
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6.
Do asbestos air ducts require replacement?
Homeowner worries about law, health
By Barry Stone
Dear Barry,
A man from the gas company just checked my furnace and said the air ducts are
made of asbestos. The house was built in the 1960s, and I'm afraid that the old
ducts may now be against the law or in violation of the building code. Am I
required to have them replaced? If not, are they hazardous to the health of my
family? --Jackie
Dear Jackie,
There are no laws or building codes that require homeowners to remove
asbestos-containing materials from their homes. As for the health risks to your
family, that depends upon the type, location, and condition of the material.
From the mid 1950s through the early '70s, sheet metal air ducts for forced-air
heating systems were commonly insulated with a cardboard-like material that
contained asbestos fibers. Similar in appearance were other ducts that were made
entirely of this asbestos-containing material (ACM). In some cases, close
examination is necessary to determine whether these old ducts are composed of
asbestos or merely insulated with it.
The material itself is not regarded as a significant health hazard if it is
undamaged, securely attached, and not exposed to routine contact. In such cases,
the accepted advice is simply to leave it alone.
When metal ducts are wrapped with asbestos insulation, the ACM is on the outer
surfaces, not exposed to the air stream within the ducts, providing little or no
opportunity for contamination of the circulating air. If the material is intact,
it should be left as is. If it becomes loose, detached, or physically damaged,
patching or removal should be assigned to a licensed asbestos contractor.
Ducts that consist of ACM are not common, but they do exist in some homes. The
interior surfaces of these ducts are covered with metal foil, preventing direct
contact of the air stream with the asbestos material. However, if the ducts
become punctured or torn, asbestos fibers can be released into the air stream.
In that case, repair or removal by a licensed asbestos contractor would be
advisable.
For a comprehensive evaluation of your air ducts to determine their level of
safety and functionality, it is recommended that you consult a certified
asbestos inspector.
Dear Barry,
The hardwood floors in our home sustained damage during the recent hurricanes in
Florida. What surprised us was the absence of flooding in the yard areas around
our home, yet water seemed to seep up through the floorboards. We tried caulking
the exterior of the building before the hurricanes hit, but during the storms,
we literally saw puddles percolating up through the floors. How could leakage
have occurred in this way? --Kim
Dear Kim,
It is difficult to give an accurate answer without actually inspecting your
home. However, when one considers the high velocity winds brought by those
hurricanes, it would seem that the elevated air pressures could have forced
water intrusion in unexpected places and in ways that would not occur during
normal levels of wind and rain. Under those extraordinary circumstances, no
amount a weatherproofing could effectively prevent water penetration and
resultant damage.
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