Could rent control be coming to San Diego?

A statewide vote to allow more widespread rent control could have big implications for San Diego County if it passes.

The effort, led by tenants rights groups and bankrolled by Los Angeles HIV/AIDS activist Michael Weinstein, qualified for the Nov. 6 ballot in June.

If approved by voters, the initiative would repeal a 1995 law that limited county and city governments’ ability to slow rent hikes. Even if it passes, it would still be up to local lawmakers to approve rent control or approve citizens’ initiatives.

San Diego is one of the few big cities in California with no form of rent control, unlike San Francisco, Berkeley and Los Angeles.

Alan Gin, an economist at the University of San Diego, said rent limitations may help some people but it could result in less housing being built, something desperately needed in the state.

“Housing prices have gotten way out of hand in California,” he said. “Even though I don’t think (rent control) will work, I can understand people’s frustration.”

Economists typically argue that rent control will lead to a reduction in the quality and quantity of housing available. But, that hasn’t stopped frustrated renters in San Diego and the rest of California from taking action.

The average San Diego County rent in March was $1,887, pushed up by an influx of new, high-end apartments downtown, said MarketPointe Realty Advisors. It has increased 8 percent in a year.

A local organizer for Prop 10, Paola Martinez, said low-income Californians are struggling to survive. She said arguments that rent control would slow housing production are hard to stomach for low-income renters.

“Housing is being created, it’s just not the type of housing we need,” she said of new residential projects. “We are not building affordable housing.”

One of the most common arguments against rent control is that if a landlord knows they can’t charge more, they won’t fix up the apartment. Try telling that to a San Diego renter, Martinez said.

“Even without rent control, those issues are still there,” she said. “We’re seeing increases of rent at a super high rate in pretty deplorable conditions, uninhabitable conditions. Their landlords aren’t making any repairs, even when they are increasing the rent.”

Prop. 10 would repeal the Costa-Hawkins Rental Housing Act, which bans cities and counties from capping rent increases on apartments built after 1995. If passed, it means new apartment buildings that are being constructed downtown could be subject to the law. The act also prevents rent control on single-family homes.

Read the rest HERE!

Carmel Valley, Poway, Rancho Bernardo, Rancho Penasquitos, and Scripps Ranch housing stats June 2018

Carmel Valley, Poway, Rancho Bernardo, Rancho Penasquitos, Scripps Ranch June 2018 Numbers by Zip Code

Carmel Valley, Poway, Rancho Bernardo, Rancho Penasquitos, and Scripps Ranch
Listings, Sales, Days on Market and more broken out by zip code.

Use the ‘Pop-Out’ to view report or the link to download.

Download (June-2018-RB-RP-CV-SR-POW.pdf)

Monthly Market Overview North San Diego County June 2018

Housing markets across the nation are most assuredly active this summer, and buyer competition is manifesting itself into several quick sales above asking price. While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015.

Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later. When this happens, accelerated price increases are possible, causing further strain on affordability.

  • Closed Sales decreased 18.2% for Detached homes and 19.2% for Attached homes.
  • Pending Sales increased 2.8% for Detached homes but decreased 12.9% for Attached homes.
  • The Median Sales Price was up 4.8% to $730,000 for Detached homes and 6.7% to $474,900 for Attached homes.
  • Days on Market decreased 3.4% for Detached homes but increased 21.1% for Attached
  • Supply increased 7.7% for Detached homes and 35.7% for Attached homes.

Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing. The housing supply outlook in several markets is beginning to show an increase in new construction and a
move by builders away from overstocked rental units to new developments for sale. These are encouraging signs in an already healthy marketplace.

San Diego North County Monthly Housing Market Indicators June 2018
Use the ‘Pop-Out’ to view report or the link to download.

Download (June-2018-Monthly.pdf)

‘Faceless Bunker’ From ‘Fixer Upper’ Takes Title of This Week’s Most Popular Home

Why it’s here:
 Chip and Joanna Gaines strike again! It’s another example of a home featured on “Fixer Upper” with a premium price tag. The “Faceless Bunker” from the show’s second season got a major face-lift from the home renovation team, and a major markup when it recently landed on the market.

The current owners bought the place in 2014, when it was listed for a mere $349,900. The remodeled abode sits on nearly 2 acres, and has a signature Gaines look, with gleaming floors, a new kitchen, and a gorgeous master suite with spa bath.

See the homes HERE

9 Tips for Home Sellers: What You Should Know to Land a Buyer’s Offer

“What do I do when I get an Offer?”
– That is a common question from sellers.

If the offer is at or above asking price the answer may be easy. But remember money is not the only consideration. You may prefer a lower offer with better financing or a stronger buyer or a more convenient settlement date. When all factors are favorable, and the price is right—set the contract and reel your buyer in quickly. 

Typically with my assistance, you will negotiate. It is an art (somewhat like fishing), where you may give and take over price, terms special conditions, or closing costs. Even carry back financing, dates of possession, or included personal property may come into play. 

Here are some tips to help you throughout the process: 

Aim for a Sale

Remember, while your aim is to get as much as you can for your home, the buyer’s aim is to find your lowest acceptable price. In the end, however, you’re both angling for the same catch: a sale on the best possible terms for both of you. 

Evaluate the Buyer

Find out as much as you can about whether the buyer can afford to purchase your house. You’ll gain peace of mind knowing your buyer is qualified to pay the price you agree upon. Buyers who are ‘prequalified’ have been told by a lender how large a mortgage they are likely to qualify for, while buyers who are ‘preapproved’ have a tentative loan commitment from a lender. 

Stay Cool

Keep communications on an agreeable level. At all stages of negotiation, be as flexible as possible. Don’t lose your cool—even if the buyer gets tense—or you might lose your sale.

Ask Questions

When offers come in they may contain complicated terminology, sometimes even 2 or 3 addenda. They should be carefully considered in person either at my real estate office or in the quiet of your own home. I will help you to understand all of the ramifications.

Consider all Offers

Remember, you have 3 basic choices: you can accept the offer, reject it, or counter offer with an alternative that suits you. Give consideration to every offer, even if it’s lower then your asking price. Outright rejection is seldom wise unless it is so ridiculous you know the buyer is simply fishing. With my counsel, you might make a counter offer close to your asking price. That seems fair for your buyers and lets then know, while you are not inflexible, neither are you so anxious to sell you’ll take anything. 

Respond Quickly

When buyers make an offer, they are in the mood to buy. But moods change. Be sure to respond as soon as possible, even with a counter offer. Buyers are known to get ‘buyers remorse’ in the middle of the night. Don’t delay responding if you really want that sale now. Keep mum, of course, about the minimum price you’d accept, but keep the dialogue going. It is not unusual to exchange 2 or 3 counter offers. Remember, I am professionally trained to find a meeting of the minds where everyone wins.

Rely on your Agent

Rely on me to keep negotiations moving forward. Realize agents are required by law to bring you any offer – no matter how low. Knowing what you want from the sale, I am in a unique position to help negotiations along. By relaying your counter offers, I can depersonalize the delicate money discussions and keep negotiations flowing toward eventual agreement. And remember it is to our financial benefit to see you get the highest price the buyer is able to pay. 

Be Patient

Exercise confidence and patience as the buyer weights the counter offers. Be forthcoming with all information requested and call attention to all the areas of agreement. Be positive. When disagreements occur, iron out all the small negotiating areas before getting down to any real stumbling block later when most items are agreed.

Consider Sweeteners

As the bidding gets close to your acceptable price, you might offer some extras – ‘sweeteners’ – to make a higher price acceptable to the buyer: the inclusion in the sale of draperies, lawn furniture, bbq grill – whatever you don’t mind giving up. If you are in a position to offer financial support, now is the time to offer to negotiate points or hold a second mortgage to help sell your home.

Take Care with Contingencies

In drawing up your contract, consider requests for contingencies carefully. Contingencies – stipulations such as obtaining financing or home inspections – are typically used to smooth acceptance of a contract without delaying the buying decision. Each contingency must be satisfied before the sale is final and should include a time limit for work to be completed.               

When you’ve landed your buyer, your signed acceptance of a written offer becomes your sales contract. Except for removing any contingencies, this document is the binding basis for the sale.

Ready to sell your home? Call Steve today to get the process started: 760.476.9560

Independence Day

Independence Day
 of the United States, also referred to as Fourth of July or July Fourth in the U.S., is a federal holiday commemorating the adoption of the Declaration of Independence on July 4, 1776, by the Continental Congress declaring that the thirteen American colonies regarded themselves as 13 independent states, and no longer part of the British Empire. Independence Day is commonly associated with fireworksparadesbarbecuescarnivalsfairspicnicsconcertsbaseball gamesfamily reunions, and political speeches and ceremonies, in addition to various other public and private events celebrating the history, government, and traditions of the United States. Independence Day is the National Day of the United States.

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How Do I Submit an Offer to Purchase a Home?

When you make an offer to purchase a home, your agent uses a purchase agreement form to enter the terms of your offer to buy the property you have selected.

To be valid, your offer needs to:

  • be in writing and signed by you as the buyer;
  • be definite and certain in detailing the terms for your purchase;
  • show your serious intent to enter into an agreement; and
  • be communicated to the seller who can accept the offer.

Your signing of the purchase agreement which your agent has properly filled out satisfies the first two conditions of terms and intent. To be definite and certain in its terms and conditions for enforcement, your offer needs to:

  • identify you as the buyer, and name the seller;
  • describe the real estate;
  • state your price and the form in which you will pay it; and
  • set the time for payment of the price — your full performance.

To be enforceable, the offer does not need to be on any particular form.

However, to be valid, the offer needs to be communicated to the seller for their acceptance.

To communicate your offer, your agent delivers your signed purchase agreement to the seller or the seller’s agent for their consideration.  

Neither the seller nor their agent has any legal duty to acknowledge or respond to your offer.

If the seller signs their acceptance of your offer intending to sell, their agent will deliver the signed purchase agreement to you or your agent.  

However, if the seller does not accept your offer, your agent needs to urge the seller’s agent to respond with a counteroffer or a formal rejection signed by the seller.

A rejection of your offer occurs when the seller:

  • does nothing and the time for acceptance runs;
  • returns a signed, written rejection stating no counteroffer will be forthcoming; or
  • prepares and submits a counteroffer, using either a counteroffer form or new purchase agreement form stating different terms.

Without first preparing and submitting a counteroffer, the seller may make an inquiry into your willingness to consider different terms. The inquiry for clarifications or changes is not a counteroffer or rejection of your written offer. Such an inquiry does not bar the seller from a later but timely acceptance to form a binding agreement.

However, when the seller attempts to accept your offer by first altering its terms in some way prior to signing the acceptance provision, the change in terms creates a counteroffer to perform on different terms. The written counter is a rejection which terminates your offer.

The seller’s agent has a duty owed to their seller to present every purchase offer they receive, regardless of the terms offered or the form used to present it. However, neither the seller nor their agent has any legal duty to respond to an offer. A failure to respond to an offer does not automatically mean your offer was not presented to the seller. Further, the offer need not be prepared on a form to be enforceable.

In fact, the back of a business card may be used to make an offer. However, provisions in boiler-plate purchase agreement forms state the essential terms and conditions of an offer needed to make it clear, complete and enforceable when accepted.

Mortgage Rates Fall Again

Mortgage rates declined over the past week and have now retreated in four of the past five weeks.

The decrease in borrowing costs are a nice slice of relief for prospective buyers looking to get into the market this summer. Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago.

As highlighted in our June Forecast, the economy and housing market overall are on solid footing this summer, which should support continued strength in housing demand. Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply.