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are incomplete and frequently out of date.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 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 the seller generally pays all broker commissions,
these services are free to the buyer.
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 if you plan to use Proposition 90.
Top Q: I've heard of something called
Mello-Roos. What is it?
A: In the 1980s, two California legislators named Henry Mello and Mike
Roos pushed through a law that allows public agencies to establish
Mello-Roos districts to attain money to support schools, roads, sewers,
and other infrasturcture.
The Poway Unified School District established a Mello-Roos district
in the late 80s. The effect is that homes constructed here since 1990
are subject to a 25 year Mello-Roos bond obligation to pay for schools.
The Mello-Roos bond payment is included in the owner's semiannual
property tax bill. The amount varies depending upon the size of the
property and subdivision or condo complex.
Note: Voters passed a Proposition U school bond in 2002 that covers homeowners not subject to Mello-Roos. The Prop U bond costs $55 per $100,000 of assessed value. Still, this is less expensive than Mello-Roos.
Bottom line: If you own a home in the Poway School District, you will
pay a school bond of some kind.
A: In many states, buyers and sellers hire attorneys to complete
a real estate transaction. In California, attorneys are not necessary. Instead
Escrow Companies, regulated by the California Department of Corporations, 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.
The Escrow Officer will 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.
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.
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: 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 history, employment, down payment, 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 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 home buyers right now.
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 late 2009.
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.
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 office is at 10413 Craftsman Way, in 4S Ranch on the west edge of Rancho Bernardo.
Below are directions to the office.
Directions to the RE/MAX Office from the
North:
From I-15, exit at Camino del Norte. Turn west on Camino del Norte
Go through four traffic lights.
Turn right at the fifth traffic light, which is 4S Ranch Parkway.
You will quickly come to a "T" intersection, which is Craftsman Way.
Turn left and the RE/MAX office is immediately on your left.
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 is currently 15%. The United States Congress has discussed the possibility of raising the capital gains rate.
So many investment property owners
are choosing to sell and pay the taxes due now rather than exchanging for another
investment property and potentially paying higher taxes later.
Do you have a question I haven't answered? E-mail your question and I will answer
it
