Contra Costa, California Real Estate

Thank you Pamela for posting this true story.   Renters, if a rental is advertised by an individual versus a property Management company, please be aware of another rental scam:  homes that are listed For Sale are being copied by scammers and posted For Rent in order to get security deposits from unsuspecting renters.

This is a short-story about how Home Stager, Kathy Burke, changes a potential disaster to an opportunity.

It has happened to all of us at one time or another.  The listing is signed, Kathy completed the staging consultation and once the seller's typical To Do list is completed (declutter, depersonalize, clean, touch-up paint, some minor purchases) the house will go on the market and be fabulous.  That is until the Pest Inspection returns with over $15,000 of unexpected repairs.  And worse, the repairs require removing the marble tile in both bathrooms and the cost to reinstall marble tile versus generic tile is a significant additional expense to the $15k bid.  Not going to happen.

Kitchens and bathrooms sell homes and now the bathrooms will only be generic.  What to do?  Call Kathy Burke of Sensational Home Staging!  My original question for Kathy was "What color should we pick that will most appeal to buyers?"  The answer I received was soooo much better.  Kathy provided fabulous design ideas using off-the-shelf tile products, a few inexpensive tweaks and, ta da!, a totally upgraded bathroom with a "designer look" and all within the budget.  Buyers are going to love it!  Suddenly the potential disaster is a wonderful opportunity.

Kathy's approach to creating a designer-look on a budget suddenly made me realize how valuable her expertise could be to Walnut Creek homeowners (or anywhere in the East Bay) contemplating improvements, not just sellers.

If you own a home in Contra Costa county CA, this home maintenance tip could save you THOUSANDS of dollars in future repairs - get a Pest Inspection every 2 - 4 years!

Pest Inspections cover more than rodents and creepy crawly things.  The #1 repair item on Pest Inspections in our market area of northern California is dry rot.  The term dry rot is a bit of a misnomer.  Dry rot is a fungus that causes wood decay and is the result of water in contact with wood over time.  The main culprits for potential problems are kitchens and bathrooms.

Let me share a story that will make the point.  I listed a Walnut Creek home for sale and as part of my pre-sale preparation process, I view the home in detail in order to make a to-do list of items that need to be accomplished in order to sell for the highest possible price.  During the preview, I noticed that the caulking in both bathrooms was an unusual, grayish color.  Given that this home was clean and well-maintained, I knew the cause was more than the need for a good scrubbing so I suggested that the sellers obtain a Pest Inspection.  The last thing any seller wants is to be broadsided by unexpected repairs with a short deadline for completion when their home sells.

This is where the story gets painful.  Both bathrooms had water leaks, one from the shower and one from the bathtub surround area.  Unless you knew what to look for (and most home owners don't), these leaks were not at all obvious because they went through a gap in the caulking to the sub-floor of the bathrooms.....and the leaks occured over a long period of time causing significant damage.  The sellers, who did all the appropriate maintenance that they knew about throughout their 18 years of ownership, now need to pull out the shower, the bathtub, all of the beautiful tile and replace the joists and sub-floors in both bathrooms.  A very expensive repair.

The sellers summed up their frustration by saying, "If only we had known to add a Pest Inspection to our maintenance, we would have gladly paid the $185 every 3 years rather than face this expense.  Why didn't anyone tell us to do this?"

So now you know, get a Pest Inspection every 2 - 4 years and save yourself thousands in future repairs!

For several years I spent Thanksgiving day with a group of people who prepared and served a free Thanksgiving Dinner.  It was always a wonderful day spent with interesting people but shocking to learn the extent of hunger in our community.  From Senior citizens who had to choose between medication and nutritious food to young families whose primary wage-earner was unemployed, it was a significant eye-opener to a young woman (me, at the time) who never faced a hungry day.

As Thanksgiving approaches, I would ask you to remember the "Giving" in Thanksgiving and donate to the Food Bank of Contra Costa and Solano counties.  Every $1 dollar you donate provides two meals for children, adults or seniors.  Really think about that for a minute....a $20 donation would provide 40 meals and over 1/3 of the food distributed is fresh produce (often the first food sacrificed when money runs short).

The Food Bank has an additional - and very creative - donation opportunity called Tiny Tickets.  Save all of your BART tickets that have nothing but change left on them - a penny, 5 cents, 20 cents - we all have them stashed in drawers somewhere.  Please send them to the Food Bank so they can be redeemed for cash.

With unemployment still above 10%, the need for your donation is greater than ever - and sadly that's true even in our affluent Walnut Creek community - so please remember the "Giving" in Thanksgiving.

I Don't Need No Stinkin' Realtor

A few days ago I was attending a meeting and struck up a conversation with a man who is house hunting to buy a home in Walnut Creek. He does his own research, he knows the school district where he wants his family to live and the individual API scores of those schools, he has driven through every neighborhood in the school district to determine the neighborhoods he likes the most, he's been tracking the average sold prices and days on market and he has signed up for auto-alerts on multiple websites.  He has definitely done his homework and said, "I don't really need a Realtor except to provide access to the homes and write the contract."

I stared at him for a moment in shock because this buyer's livelihood depends on the real estate industry so I expected that he, more than John Q. Public would have a better understanding of the actual work required of Realtors.

I took a moment to gather my thoughts and said, "On behalf of your Realtor, I want to thank you for utilizing all of the resources on the Internet to educate yourself.  This may come as a surprise but most of us are thrilled with buyers that take the time to conduct appropriate due diligence on their own behalf.  Acting as a glorified chauffeur has never, ever been the highest and best use of a professional Realtor's time.  It was a necessary service, nothing more.

For the sake of conversation, let's put aside my personal belief in the value of Realtors and let me ask you a few questions.

Do you know the questions to ask your mortgage loan officer to determine if your pre-qualification is valid or really just a pre-approval?

Do you know that the type of your mortgage financing could impact which homes you can buy?

Do you know the customary buyer and seller costs to ensure you aren't paying more than normal?

Do you know the Point of Sale requirements?

Do you know which seller disclosures are required by California Law and who is exempt?  If the seller is exempt, do you know the additional investigation that you might want to consider?

Do you know the difference between "passive" and "active" contingencies and how that lack of knowledge could potentially result in the loss of your earnest money deposit?

When you view homes, do you know what to look for that would indicate something should be professionally inspected?

Do you have a list of qualified professionals for Home, Pest, Roof, Chimney, Pool, Sewer Lateral, Geological and Structural inspections?

Do you have an additional list of qualified, licensed contractors who can competently complete the structural, health and safety items on those inspections at a competitive cost?

Do you know how to make a compelling request repairs from a seller who already feels like you "stole" the property even though you are paying fair market value?

Do you know appraisal requirements and is your internet homework sufficient that you could legitimately challenge an erroneous appraisal if needed?

When you write a contract, you will quickly realize that the majority of a selling agent's work starts when the contract is accepted.

I think the National Association of Realtors should change their ad campaign.  Rather than showing an impeccably dressed, well-groomed Realtor handing the keys to delighted homeowners, they should show the real work of our profession. The harried Realtor scurrying between inspection and appraisal appointments while on the phone following up with the mortgage lender and title company, arranging bids, badgering the HOA for the late documents, reading disclosures and negotating repairs - all within the tight contractual deadlines.  It wouldn't be pretty but would help dispel the perception of "easy job, easy money".

This great article from L.A. agent, Jane Peters, puts your Holiday shopping in perspective with your desire to buy a home.  A 52 point drop to your credit score from opening a single charge card is significant enough that you may not qualify for a mortgage OR pay a higher interest rate.  Am I suggesting that you put your holiday shopping on hold?  Absolutely not, but SHOP SMART.

This Part III of the journey of how one battered home became a beauty using the FHA 203k Renovation Loan.  This post addresses the "sexy" part of the renovation - the kitchen!

To discover where this journey started, read Part I

To view the exterior renovation on this home, read Part II

While the FHA 203k Renovation program is time and paperwork intensive, it is an amazing opportunity to give new life to a home and create your dream home in the process.  The amazing part is that my buyer's down payment was 3.5% of the entire project (cost to purchase + cost to renovate)!

This home was built in 1950 and the kitchen reflected the standards of the day: 

• a small kitchen with an equally small doorway from the dining area 

• one outlet for appliances

• one very insufficient ceiling light fixture

• the exhaust fan above the stove was a hole in the ceiling with a slowly rotating fan

• chipped, yellow, old-school formica counters

• you get the idea....

• The first - and most dramatic - part of the kitchen renovation was to remove the wall and doorway between the dining area and the kitchen, creating a "great room" with the dining/living area.

• Upgrading the electrical panel to the entire home was required to upgrade the kitchen to the standards needed for current use

• The chipped yellow formica counters were removed and measured for new, beautiful Silestone counters

• The single ceiling light fixture was replaced with 5 recessed lights. Pendant lights above the counter were installed after the photo

• Dedicated electrical outlets were installed for all of the major appliances as required by current code plus a lot more for appliances

• The hole-in-the-ceiling exhaust fan was removed and replaced with an above-the-stove microwave with built-in exhaust fan.

• An unexpected benefit was that the piping for a gas stove was already in place behind the wall!

• In addition to the new microwave, the renovation included a new refrigerator and gas stove

• Pantry style cupboards were added on both sides of the refrigerator to compensate for the cupboards removed with the wall.

• The ceilings and walls were re-textured and are ready for paint

Ta da! The outdated (ugly), claustrophic kitchen is transformed to an open, updated modern kitchen!

If you want to create your dream home using the FHA 203k Renovation loan in Contra Costa county, California, I can guide you through the process.

This Part II of the journey of how one battered home became a beauty using the FHA 203k Renovation Loan.

To discover where this journey started, read Part I.

While the FHA 203k Renovation program is time and paperwork intensive, it is an amazing opportunity to give a home new life and create your dream home in the process.  The amazing part is that my client's down payment was 3.5% down of the entire project (cost to purchase + cost to renovate)!

• Replaced the non-functioning hot water heater with a Tankless hot water heater.  This allowed sufficient extra space to create a functional laundry area.

• Added drainage to direct water from the downspouts away from the foundation

• New roof and gutters

• New attic insulation, sealed ducts and sealed building envelope (windows and doors) - big savings on future utility bills! 

• Removed the overgrown Palm tree that was a rodent bridge to the attic

• New sewer clean-out

• Wonderful new 12 x 14 deck.  Previously this home only had access to the back yard and patio through the garage

• New French Doors to the deck (the purple paint in the room is soon to go!)

Part III is the "sexy" part of this Renovation - the kitchen!

If you want to create your dream home using the FHA 203k Renovation loan in Contra Costa county, California, I can guide you through the process.

This is the journey of how one battered home became a beauty using the FHA 203k Renovation Loan.

Let me give you a little background.  My client, an absolutely delightful woman who will be retiring in one year wanted to purchase a small, single story home that she could afford on her retirement income and was reasonably close to her grandchildren.  We viewed homes for over 7 months, made 5 offers and were out-bid by cash buyers each time.  It was time for a change in strategy - purchase a battered home and make it a beauty using the FHA Renovation Loan.

It's true that this program is time and paperwork intensive and not for the faint of heart, but wait until you see the results!

This is where we started....an 890 s.f., 2 bedroom, bank-owned home that had three positive attributes:  structurally sound with dual pane windows and original hardwood floors.  The list of problems was much longer:

• the roof and gutters were at the end of their useful life
• the insulation was so old that it had turned to dust (it was literally vacuumed out of the attic)
• an overgrown Palm tree was acting as a rodent bridge to the attic
• the electrical was original, outdated, insufficient for current needs and had been spliced and repaired so poorly that it was a hazard
• the hot water heater was broken
• the downspouts were draining to the foundation
• there was no sewer cleanout
• the exterior of the home hadn't been sealed or painted in years
• the closet in the small bedroom had been turned into a 2nd bathroom and a psuedo-closet had been constructed (another poor DIY project of a previous homeowner)

The kitchen had a slew of issues:

• Very small and out-dated with a narrow door from the dining area
• One ceiling light fixture
• One electric outlet (hm, do you plug in the microwave, the coffee maker or the toaster?)
• the exhaust over the stove was a hole in the ceiling with an old-school fan
• original, chipped, yellow formica counters
• One piece of good news - the cupboards were in decent shape!

 The home has a large back yard that is adjacent to Open Space but the only access to the yard was through the garage.

The retaining wall (the fence is on top of it) was starting to lean.

We visited the home several times, made our list of repairs and anticipated costs and added 20% for potential issues we couldn't see (and thank goodness we did!).  My client took a leap of faith that this battered home could become a beauty and submitted an offer to the bank.  Our offer was declined.

 I told my client, "Don't worry, an investor won't buy this house because it requires too much work.  We'll let the bank sit on it for awhile."  Two months later, we submitted our offer again and this time it was accepted.

Part II - photos of the renovation in progress, Exterior

Part III - The Kitchen renovation

If you want to create your dream home using the FHA 203k Renovation loan in Contra Costa county, California, I can guide you through the process.

I recently broke the "Agent's Car = Agent's Success" chains of bondage and purchased a Prius.  I get it, it's not a sexy car (just asked my husband who literally BEGGED me to buy another Mercedes) but the lure of 45 - 50 mpg and reducing my carbon footprint was a siren song that I couldn't resist.   My Prius fits four adults comfortably, has leather seats, premium sound, cool touch-screen for navigation, climate control, etc. It's true that the tires look like puffy doughnuts but I'll accept that in exchange for the smooth ride and $300 per month gas savings I've already realized.  In my opinion, it's the perfect Realtor car given the crazy number of miles we drive.

My bold and daring (practical) purchase started a series of unexpected conversations with other agents,  "I wanted to buy a hybrid car too, but aren't you worried that clients won't realize you're successful if you drive a Prius?"

Do clients choose their agent based on the car they drive?  I think that some clients do.  Success attracts success and cars tend to be the most obvious reflection.  Since my Prius purchase was a choice, I think I should buy a custom license plate frame that says, "Purchased By Choice, Not Necessity".  No, it needs to be more funny. Any suggestions?