In Berkeley Does A Condo Conversion Make Sense?

Recently I was asked about condo conversions in Berkeley, CA and here is some information that may prove to be helpful.

The question that was posed to me is if a friend and I purchase a duplex together can we convert it to condos so we can have single ownership of our half?

In Berkeley there is a Condo Conversion Ordinance (CCO) that limits the number of condo conversions because by changing the nature of the real estate commodity to a separately owned condo it removes available rental units in the marketplace.

The City regulates condo conversion in Berkeley by:

Subdivision of rental housing is subject to specific conditions.

Controlling the rate at which the number of new condominium units may enter the housing market. The CCO presently limits conversion of rental housing to condominiums to 100 new units per year.

Requiring payment of an affordable housing mitigation fee at the time of initial sale for each newly converted unit, which accrues to the City of Berkeley Housing Trust Fund, a program administered by the Housing Department. this fund is used to invest in the creation of permanently affordable housing units in Berkeley.

Requiring owners wishing to convert rental units to provide sitting tenants with a right of first refusal to purchase their units.

Requiring subdivision map conditions that address seismic safety, overall local law compliance, and tenant notification of their right of first refusal to purchase their unit.

Providing significant protections and incentives to sitting tenants to remain in their units long-term.

Application for condo conversions are reviewed only twice a year, so depending on when you are looking to purchase a property, you may have to wait up to 6 months before you can even submit your application for condo conversion.

The process for condo conversion in Berkeley can be a complicated and lengthy process, so you will really need to sit down and evaluate if this is the best option for you. For all the details for applying for a condo conversion and all the requirements that must be met, you can visit Berkeley's Planning and Development site at Condominium Conversions in the City of Berkeley.

In this particular instance where two parties are looking to purchase a duplex together a Tenancy In Common (TIC) ownership may to a viable alternative to the condo conversion.

Any questions? You can contact me at Lisa@LisaCartolano.com or at 510.213.1139

Check me out on the web at www.LisaCartolano.com

Mortgage Cancellation Relief

For homeowners finding themselves in a situation where they must sell their house for less than they owe, there is some good news.

On October 4, 2007 - The House has agreed to legislation that would provide tax relief when lenders forgive some portion of a mortgage debt. The vote was 386 - 27. Under current law, forgiven mortgage debt is treated as taxable income and taxed at ordinary income rates. The legislation would provide a permanent rule that eliminates the requirement to pay tax on forgiven mortgage debt on a principal residence, up to $2 million. There is no income restriction on those who are eligible for the relief. The revenue estimate for the provision is $1.4 Billion over 10 years. A "pay-for" has been identified that will tighten, but not eliminate, a benefit of current law.

Have any questions? You can contact me at lcartolano@apr.com or at 510.213.1139

How Accurate is Zillow?

Zillow has become a popular site for seller and buyers to take a look at the value of a home. But how accurate is it?

A recent article in the Wall Street Journal had some interesting information regarding Zillow's accuracy:

The Wall Street Journal analysis of 1,000 homes on Zillow found that the "Zestimates" are often good, usually within a few percentage points to the actual price. But when Zillow is bad, it is really bad. Zestimates were off by 25% in 1 and 10 homes and in one case Zillow was off the mark by 2 million.

According to the Wall Street Journel, Zillow executives acknowledge that estimates can be way off in some cases. These estimates are a good "starting point" for people trying to figure out how much a home should cost. Amy Bohutinsky, a spokeswoman for the company states "We don't recommend it as the final word."

Zillow can be quite accurate in some markets but estimates are sometimes hit or miss. Zillow tends to work best for mid range homes in areas where there are a lot of comparable homes. It tends to be less accurate for low and high end homes were there is less data available from comparable sales.

Part of the problem with Zestimates is the data fed to Zillow does not take into account if the house has been remodeled, or if it is a foreclosure or a fixer. Reported prices sometimes are misleading as well because there are instances where family members who sell between themselves will often sell for a token price.

So if you are looking to buy or sell a home,Zillow can be a great place to begin the search to determine the ballpark range of homes in the area, but it is also a good idea to get more in depth data that takes into account variances that can affect the overall value of a home.

Any questions? Want a copy of the Wall Street Journal Article emailed to you? You can contact me at lcartolano@apr.com or at 510.213.1139

Re-Thinking The Buying Process

Most home buyers claim they're picky. And why not? You are buying a home. It not only provides a roof but also needs to satisfy emotional needs that aren't easily quantifiable.

Since the home-buying experience is also often an emotional pursuit as well, there is a psychological component to consider. For example, let's say you have been searching for the right home for months, maybe even coming up on years. There haven't been many properties that fit your ideal and you have maybe made one offer during that time frame and the house you really loved turned out to be more expensive than you can really afford.

You've come close to making an offer several times, but have backed away after reconsidering. Each property had defects in terms of your ideal wish list. You weren't willing to compromise.

Buyers who find they've been looking for the right house for more than six months should pause to consider whether their expectations are in line with reality. For example you want a turn of the century home, with all updated systems in a desirable neighborhood, but all the homes you have seen are way out of your price range. Home buying involves making compromises if you're serious about buying.

In order to decide how you will compromise, you need to research what is available to find out what is realistically possible. Do your homework. The perfect house won't just magically appear. To save time, use the Internet to whittle down the list of homes for sale until you find the ones that suit your needs. Then make a point of visiting these in person, either with a real estate agent or at an open house.

Buyers with pressing needs usually have less of a problem finding the right home to buy. Say you have children who are about to enter school and you want to live in a particular school district. As long as the home has the right number of bedrooms, baths an has a yard you will be willing to give up the old world charm that you would like to have to find what you and your family need.

You may be getting out and seeing the listings that might work for you and still aren't having success. You get close to making and offer but never carry through. You find your self not being able to make a decision even when you see the right house to buy.

Buying a home is a big commitment and it can be scary. You often times are spending a large sum of money and maybe to a lifestyle that you are not accustomed to. It can really help to talk with advisers when you find that you're getting nowhere. Talk to a trusted financial advisor to see if you're looking in the right price range. You may find scaling back on the purchase price helps. Talk to friends and family who have purchased a home to find out how they made their decision to buy a home and how has it affected them both financially and in terms of lifestyle changes.

After doing your homework you may want to reconsider your wish list based on what you have learned about your local market and what to expect. By realigning your your expectations and even readjusting your price range, you may find that the buying a home is within your reach.

Refacing Those Cabinets May Be As Easy As Painting

Your kitchen cabinets are looking a little, well, dingy and you don't really want to spring for new cabinets. What to do? Paint and hardware. These two things can make a huge difference. If any of you out there are an HGTV junkie like myself you will have seen this trick a thousand times.

With the proper materials, some time and some patience, you can make quite a difference in a fairly short time.

GETTING READY

Any successful paint job begins with proper preparation, and nowhere is this more true than when painting kitchen cabinets. Take your time here, and the rest of the job will go much smoother.

First, you need to decide exactly what you want to paint. Some older kitchens have cabinets that are painted both inside and out, and that may be what you wangt to do again. You may wish to paint only the outside of the cabinets and leave the insides alone, or you may be planning on replacing the doors and drawer fronts, and only need to paint the cabinet-face frames and side panels.

Although it represents a little more work up front, the job will much easier if you plan on completely emptying the cabinets. Box up what you won't need for the next several days, and what you will need can be set up on a temporary work space in another room. Remove all of the doors, hinges and knobs, and store the hardware in zipper-lock bags so nothing gets lost.

Next, all of the surfaces that will be painted need to be cleaned and prepped to receive the new paint. Cabinets, no matter how good a housekeeper you are, kitchen cabinets are abused on a daily baisis and are going to have a coating of grease on them, and that needs to be completely removed for the paint to stick well. Wash the cabinets inside and out with a solution of trisodium phosphate (TSP) and hot water. TSP is a great general cleaner and degreaser -- follow the mixing, usage and safety instructions on the package.

After cleaning, you need to lightly roughen the surface of the wood so that the new paint will adhere better. You may want to cover appliances with plastic at this point to avoid a layer of dust on them. Using 220-grit wet and dry sandpaper, moisten the paper with water and lightly sand in the direction of the grain. Wipe everything down with a clean soft rag to remove most of the surface dust, followed by a final wiping with a tack cloth. Tack clothes are simply rags that have been treated to make them slightly sticky, and they do a great job of removing the final traces of sanding dust without leaving any residue on the cabinets.

If you are painting the doors and drawer fronts, remember to clean and sand them as well. You may want to find a convenient spot in the garage to set them up for painting, or you can set them up in the kitchen as well. They are, however, easier to paint if they are not still on the cabinets.

You are now ready to start painting. Begin by recovering everything with plastic, paying close attention to protecting counters, appliances, floors, walls and other surfaces that will not be painted. If you are not painting the insides of the cabinets, use masking tape to create a clean line between the cabinet face frames and the interior. Mask where the cabinets meet the wall, using blue (lighter tack) masking tape to prevent damage to the wall surfaces when it's removed.

For best adhesion and best finished appearance, you should consider applying a primer coat before applying the finished color. Primers are designed to create an intermediate bond between the wood and the finished paint, and are a step well worth taking. Your paint store can help you select the proper primer for the type of finish paint you'll be using. Primers are typically white, so if the final color you intend to apply is dark, the paint store can also tint the primer to a color that's closer to the final paint color.

You now have to decide between applying the paint with a brush or with a sprayer. Brush painting is more convenient and requires a lot less masking, but spraying is faster and tends to apply the paint more evenly without having to worry about brush streaks. Your paint store can help you out with the proper type of brush for the paint you're using, and if you decide to spray, they can either rent you the proper spray equipment or direct you to someone who can.

Apply the primer coat, allow it to dry completely, then apply the top coat. Follow all of the manufacturer's instructions for application, drying, ventilation and other precautions. Allow the top coat to dry completely, remove the masking, then clean and add your new hardward and hindges.

All of the materials you need, along with expert advice, can be found at any well-equipped paint store. If you already know exactly what you need to buy, you can also visit your local home center.


Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139

Measure EE Rent Control Ordinance In Oakland

In 2002 voters of Oakland passed Measure EE- The Just Cause Eviction Law.

What does this law mean and how can if affect you?

Measure EE specifies when eviction may occur. Except in dwellings built since 1980, the owner cannot evict rent-paying tenants who abide by rental agreements unless the owner occupies at least a third of the building or intends to move into the unit or move family into the unit. The measure also states that landlords must abide by lease agreements unless tenants fail to pay rent, damage property or breach some other portion of a rental agreement.

If you are looking to purchase an investment property with rental units, or you decide to rent our your current home, you should make sure you are aware of these laws.

Also if you are considering selling your rental property be aware that these laws still pertain to you. As you might imagine selling an occupied unit can be a bit more complicated than if it is vacant. But be aware, you cannot evict tenants to sell the property.

The City of Oakland provides an outline for landlords at http://www.oaklandnet.com/government/hcd/rentboard/landlord.html

If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139

When It’s Time To Sell, Don’t Take It Personally

Selling a home can be a stressful process. There is a lot to get in order and there are a lot of details to consider.

You have the basics behind you. The house and lot are spotless and de-cluttered. Now it is time to enhance the home's features so that you can grab those potential buyers.

Your First Home Selling Step: separate yourself from the personal feelings you have about the house--it is not your home now, it is a commodity you intend to market.

Trust Your Instincts. Try to evaluate the house as if you are seeing it for the first time. If you were a home buyer, what would you think about the house? What changes would make immediate improvements? What are the house's best features and how can you show them off?

Pack It Up
Pack away most of your family photos. Buyers should be allowed to imagine their possessions in the home. Pack up your personal collections, too, so that buyers don't get so interested in looking at them that they forget to look at the house. When home buyers start deciding how their furniture will fit into your rooms, you're on your way to a contract.

Make It More Spacious
Remove excess furniture to make rooms more spacious. Clean and organize the closets. Store boxes in an out of the way location or rent a temporary storage unit so you can de-clutter every part of the house.

Expose Desirable Features
Remove rugs if they expose nice hardwood floors. Remove heavy drapes that keep out natural light, especially if there's a great view out the windows.

Add Some Life
Plants go hand-in-hand with nearly any decor--living plants, not artificial versions.

Freshen Up
How about fresh paint? Are walls in the house dingy? Are the colors dated? Should you clean curtains or other window coverings?

Essential Curb Appeal
Keep the lawn nicely trimmed, and try adding other garden elements to grab a buyer's attention before they walk in the door. Outdoor lighting does wonders in the evenings--when many home buyers do drive-bys of properties. Buy a good-looking doorknob set. Sweep the driveway; pressure wash the house or sidewalks if necessary.

Your goal is to make home buyers fall in love with the house as soon as they see it from the street. And that comes with a bonus—a great overall impression is often enough to make a buyer more lenient about minor repair issues.

Every house is different, and no one expects you to be a professional home stager--but taking the time to prepare the house to the best of your abilities may put extra dollars in your pocket, and in less than average time.

Have any questions? You can contact me at lcartolano@apr.com or at 510.213.1139