Monthly Archives: October 2010

Construction, Real Estate

Buying a Home, Beware When Home Lacks Permit

How about this house, think it was built with a permit? :-)
How about this house, think it was built with a permit? :-)

By Paul Bianchina

It’s an all too common situation. You find a perfect home for sale in an ideal neighborhood. It’s been beautifully remodeled, and it has everything you’ve been searching for. Even the price is right. Something tells you it might be too good to be true, but you put in an offer anyway, and it’s accepted.

You start doing all the paperwork, and sure enough you discover the catch that you always somehow suspected was there. The sellers did all of that remodeling work without any building permits.

So now you’re faced with a dilemma. You really want this house. The sellers insist that all the work was done by licensed contractors, and that they have full documentation and photographs of all the work as it was being done.

The sellers also tell you that they’re willing to allow any type of inspection on the home that you’d like — except for one by the city.

They explain that they had a bad experience with a building inspector on a previous home, or that they have an ongoing feud with the city over their water bill, or they’re protesting the fact that the city hasn’t fixed the pothole on Main Street yet, or some other reason that they refuse to become involved with the local municipality.

Continue reading Buying a Home, Beware When Home Lacks Permit →

Real Estate

Some of the Wealthiest People Just Don’t Get It in Real Estate

There is a very interesting article in the Wall Street Journal recently. It seems that some of the wealthiest people are caught up in their emotions and will not lower the price on their mansions. For example here’s an excerpt:
“Some holdouts and their brokers defend their prices, arguing that their estates would be difficult, if not impossible, to replicate today. “I feel the property is worth every penny—and probably then some,” says Tommy Hilfiger co-founder Joel Horowitz, who has been asking $100 million for his 210-acre estate in Zephyr Cove, Nev., since July 2006, when the National Association of Realtors’ then-Chief Economist David Lereah said that housing appeared to be headed for a soft landing in most markets.

Mr. Horowitz notes that he and his wife Ann spent a year designing the home and three years building it and bought items for the home on their travels before it was even built—including lighting fixtures, fireplace mantels and 400-year-old flooring from French châteaux.”

I’ve heard that argument for not lowering the price on a home so many times. Sad to say, the market does not care how much love, care or money you have put into a home, the market still dictates what a home will sell for. Until one comes down to reality, and lowers the price to meet the market, the home just will not sell.

To read the full article in the Wall Street Journal, Click Here.

John J. O’Dell
Real Estate Broker
General Contractor
Call today – 530-263-1091 for you real estate and construction needs

Real Estate

Short Sale Fraud Cases Rising

SACRAMENTO, Calif.–(BUSINESS WIRE)–The California Department of Real Estate (DRE) has reported a sharp increase in the number of cases involving short sale fraud. In response, the Department has issued a new consumer alert detailing the perils and pitfalls of short sales and has begun posting its administrative actions filed against violators on the DRE web site to help consumers avoid the short sale culprits.

“Hopefully with the new Consumer alert and other educational efforts we can curtail the fraud”

One year ago, DRE investigated fewer than 10 cases involving short sales. Today the case load has increased to over one hundred and the number is growing.

“We saw a similar ground swell with the loan modification scams,” said Real Estate Commissioner Jeff Davi. “Hopefully with the new Consumer alert and other educational efforts we can curtail the fraud,” Davi added.

A short sale transaction involves the sale of a property that is less than the amount of the mortgage loan(s) on the property. In order to complete the sale, the seller requests the lender accept less than what is owed in order to allow the transaction to close. While short sales are a popular alternative to foreclosure, like all real estate transactions, they are complicated and sellers need to lookout for the pitfalls and red flags.

Consumers need to take particular care with the representatives they hire to negotiate short sales and be especially leery of any upfront fees. With limited exceptions, short sale negotiators need to be a licensed real estate broker or salesperson working for a broker. Before engaging the services of a person or entity to negotiate a short sale, check out their license status on the DRE’s web site. In addition, consumers should not pay anyone wanting an advance fee without checking with the DRE.

Again, with limited exceptions, demanding payment upfront for short sale negotiation services is illegal. Finally, sellers and buyers should be cautioned that any payments that are not clearly disclosed in the escrow and closing documents is a red flag and an indication of fraud.

A few of the key elements a homeowner should look out for are the following:

* Do not pay an advance fee to a short sale negotiator without checking with the DRE.
* Short sale negotiators must be licensed real estate brokers (or a licensed real estate salesperson where that person is working under the supervision of his or her broker).
* Any and all payments must be fully disclosed and made part of the escrow documents. If there are any fees to be paid “outside” of escrow, this may be the red flag that the payment is illegal.
* If your agent explains that the buyer is a fictitious person or entity, or your buyer is purchasing the property under a power-of-attorney or is a limited liability company (LLC), this may be a red flag that fraud is involved in your transaction.
* If you are told that an unlicensed processor, negotiator or facilitator is handling your short sale, this is a red flag that unlicensed activity is taking place. Only real estate licensees, California lawyers acting as lawyers and investors acting on their own behalf can engage in short sale negotiations.
* Be wary and cautious when thinking about retaining the services of people or companies calling themselves “specialists”, “experts”, or “certified” in the area of short sales. View the claims of expertise, certification, and specialization with a critical eye, verify the claims, and ask specific, detailed questions.

For a copy of the alert and list of actions involving short sales and other consumer tips, visit Department of Real Estate and click on the Consumer Tab.

Business

Six Secrets to Shortcut Moneymaking

Lisa J. Lehr

by Lisa J. Lehr

Want to make money in business? As much as possible, and as fast as possible? If you’re in business, of course you do. Here are six secrets to shortcut moneymaking.

1. The first secret is…there is no real shortcut. There is, however, a shortest distance between where you are now and where you want to be, and everyone knows the shortest distance between two points is a straight line. The straight line in business success is a plan that includes no unproductive use of time or money.

2. Figure out your USP—your unique selling proposition. Especially if you’re a local business with some competition, you’ll need to stand out from the crowd. What makes you different? Spend some time figuring it out.

3. Advertise your product or service. Do all that your budget will allow. If your budget is small, start with inexpensive (and free) forms of advertising. As you begin making sales, roll as much as you can back into your advertising. This is where your highest ROI will come from.

4. Ramp up your marketing as your budget increases. Always stay in front of your target market. Even as your product or service takes hold of the market, and word-of-mouth advertising spreads—unless you’re getting so many orders you just can’t keep up—continue advertising. (And if you are getting so much business you can’t keep up, you can do one of two things: increase your prices, or narrow your offerings to the most lucrative products or services.)

5. Upsell. It’s a basic principle of selling that there are three ways to make more money: get more customers, get your customers to buy more often, and get your customers to buy higher-priced products and services. The third one is the most cost-effective. If your customers like your product or service, and if they trust you, they are more than happy to spend more money with you.

6. Work with a professional copywriter. Many companies have tried to crank out their own marketing programs, and even as that tactic has failed, have continued to try. You’ve probably heard the definition of insanity: doing the same thing and expecting different results. Give your business the competitive edge by letting a professional take charge of your marketing program.

There you have them: six secrets to shortcut moneymaking. The truth, however, is that they’re not really secrets—most smart marketers already know them. And they’re not really shortcuts—they’re just the shortest possible route to where you want to be: making money with your product or service.

Lisa J. Lehr is a writer and copywriter living in Grass Valley. She can help you promote your business with a full range of online and offline marketing pieces. A member of Empire Toastmasters, she’s available to speak to your business or professional group. Click Here to visit her website for more information, opt in for the message series, and receive a free Marketing Guide.

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Lisa J. Lehr
I write words that make you money–just ask me how.
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