Frequently Asked Questions
Q: Is shopping for a home on the Internet a good idea?
A: The Internet is a great source for information about housing. You can learn what types of houses are available and get an idea of what you can get for your money. However, using the Internet as your sole source for house shopping is not a good idea because Internet real estate listings are incomplete and usually at least three weeks out of date.
A buyer's broker can tell you things the Internet never will such as: Is the property involved in litigation? Are there noise or crime problems? How are the schools? How much have homes in this neighborhood been selling for?
Surfing the net to look for houses is fine but you need an agent
to help you decide which properties are really a good match for your specific
needs. And, since you can use the services of a buyer's broker for free, why wouldn't you? If you see a home on the Internet and want more information,
call or e-mail Don King.
Top
Q: What is a Buyer's Broker and
Why do I Need one?
A: Not too many years ago, all brokers represented the seller in a real estate transaction and "let the buyer beware." Today most buyers want a good agent to represent them during a home purchase. A buyer's broker works for the buyer and can show the buyer all properties listed by any broker, for sale by owners, or even properties not currently on the market.
A buyer's broker can offer professional advice on selecting a
property and negotiate to get the property for the buyer at the best price and
terms. And, best of all, since sellers generally pay the brokers' commissions,
these services are free to the buyer.
Top
Q: How much are Property Taxes
in California?
A: When you close escrow, the San Diego County Tax Assessor will automatically reassess the property at the sales price. Your annual property taxes will be approximately 1.15% of the assessed value. Taxes are paid semiannually in April and December.
If you're a senior citizen who qualifies for the property tax rollover provisions of California Proposition 90, you may be able to retain your current property tax base if you move to another property of equal or lesser value. I recommend you check with your tax professional for details if you plan to use Proposition 90.
Top
Q: I've heard of something called
Mello-Roos. What is it?
A: In 1989, the Mello-Roos bill passed thru the California Legislature
and became law. It says that, from that point forward, developers had to account
for the funds to build schools, roads, and sewers to serve new home developments.
The developer usually passes those costs to the homeowner in the form of a Mello-Roos
bond. Mello-Roos amounts vary from subdivision to subdivision. In the Poway
School District, the bond runs
for 25 years and is usually in the range of $500-800 per year for condos and
$800-$2000 for single family houses. Mello-Roos is billed along with the property
taxes and may be tax-deductible. Developments built before Mello-Roos went into
effect have no Mello-Roos bond.
Note that voters passed a Proposition U school bond in 2002. So, homeowners in neighborhoods not subject to Mello-Roos now pay Proposition U a school bond which costs $55 per $100,000 of assessed value. Still, this is much less expensive than Mello-Roos.
Top
Q: What is Escrow?
A: In many states, buyers and sellers hire attorneys to complete a real estate transaction. In California, attorneys are not necessary. Instead Escrow Companies work for both the buyer and seller to insure that the purchase contract is properly executed. The Escrow Company translates the purchase contract between buyer and seller into escrow instructions. When both buyer and seller have signed the instructions, escrow is opened. They collect the monies, documents, and deeds. Once all conditions of the purchase contract have been satisfied, the Escrow Officer instructs the Title Company to record the deed in the buyer's name. After recording is confirmed, closing statements are prepared, funds are distributed, and escrow is closed.
Top
Q: Do I need to attend closing?
A: No. In California, there is no formal closing ceremony. Prior to closing, the buyer will have deposited the remainder of the down payment into escrow and the lender will deposit the proceeds of any loans. The seller will have already deposited a notarized deed into escrow. When all conditions of the sale have been met, the escrow officer will instruct the Title Company to record the deed in the buyer’s name without either the seller or buyer being present. In fact, I have sold properties for sellers who I never met face to face and I have represented buyers who left town immediately after the purchase contract was signed and did not return until after escrow was closed.
Top
Q: Are there Residential Areas
for Seniors only?
A: Yes. Rancho Bernardo has two neighborhoods exclusively for
seniors - Seven Oaks and
Oaks North. These are age-restricted
communities where one occupant must be at least 55 years old. There are strict
limits on how many days each year someone under the age of 21 can visit. These
restrictions are in accordance with HUD guidelines for adult communities. For
additional information on senior living in Rancho Bernardo, visit
my Seniors Page.
Top
Q: Is the Poway Unified School
District as good as I have heard?
A: Yes. We are very proud of our schools. The Poway Unified School District is rated as one of the best public school districts in California. These schools consistently produce high test scores and earn many prestigious awards for excellence in education. Often, parents of school-age kids tell me, "Don't even show me a house that isn't in the Poway School District." The PUSD originally covered five communities: Poway, Rancho Bernardo, Carmel Mountain Ranch, Sabre Springs, and most of Rancho Penasquitos. Four new communities west of I-15 are now also included in the district: 4S Ranch, Bernardo Point, Bernardo Springs, and Santa Fe Valley. For more information and links to the Poway Unified School District web site, click here.
Top
Q: Is the Weather in San Diego
always perfect?
A: Well, maybe not perfect but close! You can enjoy golf, tennis, walking, or sailing all year long.
In summer, inland temperatures can rise into the 90s. However, it is usually dry so it cools off quickly when the sun goes down. In winter, there is never snow and seldom any frost. Average high temperatures in Rancho Bernardo vary from 63 in January to 89 in August.
Temperatures along the ocean are cooler, usually in the 60s and 70s. But, the coast is frequently overcast until midday while it is bright and sunny inland.
We get almost all of our rain between December and March. The
hills turn green in winter and brown in summer. Also, San Diego does not have
a smog problem like Los Angeles.
Top
Q: Can I Afford to live in Rancho Bernardo?
A: It's true that housing
is more expensive in San Diego than in some parts of the country. However, most
people who live here think it is well worth it. One of the lenders on my Financing
Your Home page can help you determine how much home you can afford.
Top
Q: Should I be prequalified or
preapproved for a loan?
A: The San Diego housing market is brisk. When you submit a purchase offer, unless you will pay cash, you must provide evidence that you qualify for the loan. Otherwise the seller won't take your offer seriously.
Prequalification. This means you have spoken with a lender and, based solely on the information you told them, the lender is willing to provide a written statement that they believe you will qualify for a loan.
Preapproval. If you are serious about buying, this is the way to go. You get preapproved for a loan by submitting a formal loan application and having the lender verify your credit, employment, etc. Once you are preapproved, all that is needed is an appraisal on the property that you choose. Preapproval makes you look like a cash buyer in the eyes of a seller and gives you more negotiating clout.
To get preapproved or prequalified, call one of the preferred lenders on my Financing Your Home page or you may contact any other lender of your choice.
Top
Q: How is the Real Estate Market
in Rancho Bernardo?
After six years of real estate values rocketing ever higher (1998-2004), our market finally cooled off in 2005. Since the high point, Rancho Bernardo home prices have dropped about 30%.
In recent months, we have seen some encouraging signs. There has been more buyer activity and the number of home sales has increased. There are many foreclosure and bank-owned properties available at low prices, which provides some very attractive opportunities for current home buyers.
Surprisingly, we still have a relatively low inventory of homes on the market. This indicates that, when the market turns upward, it will do so very quickly.
Along with many "experts", I predict that RB home prices will start climbing in early 2009.
(This information updated 9/22/08.)
Top
Q: Should I Buy or Rent?
A: Here is my advice. If you will be in San Diego for three years or longer, buy. If you will be here less than two years, rent. Between two and three years is a toss up. The financial tradeoff between buying and renting is complicated and you should probably consult your CPA or tax professional. Issues include interest tax deduction benefits, value appreciation, and costs of sale.
If you are not familiar with San Diego and don't mind moving twice, it may be a good idea to rent 3-6 months while you choose a neighborhood. Then you can buy with confidence. However, if your goal is to buy a home, I urge you not to commit to a lease of longer than six months.
Should you decide to rent, the Sunday edition of the "San
Diego Union-Tribune" newspaper contains a "Rental Review Guide",
which is the most comprehensive list of rental properties available in San Diego.
If you specifically want the Inland North County area, you can e-mail or call
me and I will put you in touch with the best rental property managers here.
I do not personally handle any rentals.
Top
Q: How far is it from Rancho Bernardo to Downtown San Diego or the Airport?
A: Both downtown San Diego and Lindbergh Field are approximately 35 minutes from Rancho Bernardo. During rush hour, depending on traffic, it can take slightly longer.
Top
Q: How much will my Closing Costs
be?
A: As a rule of thumb, whether you are a buyer or a seller, you will have closing costs of approximately one percent of the sales price. For example, at a sales price of $600,000, your closing costs would be approximately $6,000. If your sales price is lower, your closing costs may be slightly more than one percent. If you're sales price is higher, your closing costs may be slightly less than one percent. Buyers, please note that closing costs are in addition to any loan costs you may incur.
Top
Q: Can you give me Directions
to the RE/MAX Rancho Bernardo office?
A: Rancho Bernardo is nestled in the hills of North County Inland San Diego, approximately 25 miles north of Downtown San Diego. RB straddles I-15.
Don King’s RE/MAX Rancho Bernardo office is at 16730 Bernardo Center Drive. Below are directions to the office from the north and from the south.
Directions to RE/MAX Rancho Bernardo from the
North:
Take I-5 south from the Los Angeles area. At Oceanside, turn
east on Highway 78 and follow it 15 miles to I-15, where you will turn south.
Exit I-15 at Rancho Bernardo Road (Not West Bernardo Drive, which is the previous
exit). Turn left (east) on Rancho Bernardo Road.
At the first light, turn right (south) on Bernardo Center Drive.
At the fourth traffic light (counting the one at the fire station), you will see RE/MAX Rancho Bernardo on your right. Turn into the parking lot and come to the back of the building, where the entrance is located.
Directions to RE/MAX Rancho Bernardo from the South:
Get on Highway 163 heading north.
Highway 163 merges into I-15 north.
Exit off I-15 at Bernardo Center Drive. Turn right on Bernardo Center Drive and get in the left lane.
At the second traffic light, you will see RE/MAX Rancho Bernardo on the left but a turn left is not allowed at this intersection.
At the light, make a U-turn and an immediate right on Avena Place, which is
a cul-de-sac. The first driveway to the right goes into the RE/MAX parking lot.
Top
Q: How can I sell a rental property
without paying capital gains taxes?
A: A 1031 Tax-Deferred Exchange allows an owner of a rental to sell and reinvest the proceeds in another investment property without triggering a taxable event. This allows you to get rid of a property which you have already depreciated and move into another property without paying capital gains at the time of sale.
Please note, the operative words are "tax-deferred". If you eventually liquidate your investment property holdings, taxes may be due at that time. Refer to your tax professional for additional advice.
The key to a successful 1031 exchange is choosing the right escrow company or accommodator. I have experience in this area so, if you are considering a tax-deferred exchange, call me toll-free at (877) 877-SOLD!
By the way, the tax rate
for capital gains has been reduced to 15%. So many investment property owners
are choosing to sell and pay the taxes due rather than exchanging for another
investment property.
Do you have a question I haven't answered? E-mail your question and I will answer it
Don King
RE/MAX
of Rancho Bernardo
16730 Bernardo Center Drive
San Diego California 92128
Toll Free: (877) 877-7653 (SOLD)
(858) 485-1700 (Pager)
(858) 487-2308 (Direct)
(858) 673-0167 (Fax)
E-mail: Don@DonKingHomes.com
Best Viewed With: |
Design By: | Equal Housing Opportunity |