CA Water Crisis

If you are from California you are well aware of the water crisis that we are facing. This graphic below outlines exactly where the water is going in a typical three bedroom home in California. Don’t discount this though if you live in another state… it’s probably very similar if you are in another climate that is generally warm year round.

So what can you do to save money and water?

There are a few simple fixes that you can do inside your house:

1. Invest in a low flow toilet (like this one) for under $200.

2. Install a faucet aerator (they are only $2!)
3. Install a low flow shower head. 

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I found it surprising that so much water was used on landscaping. Instead of annually spending almost 60% of your water on your yard consider investing in drought resistant landscaping like these homes. Read some really helpful tips from  Better Homes and Gardens on creating this type of landscaping.

 

Photos via Better Homes and Gardens

First Quarter Market Update

Changes for Mortgages in 2014

Recently I had a chance to ask Jennifer Barth from Vitek Mortgage about the many changes to 2014 mortgage rules. I wanted her to fill you in on the most important things to keep in mind.  I'm so appreciative of her time and expertise. I definitely suggest visiting Jen's website to learn more about her!  

So how will the new mortgage rules affect you?

FHA loan limit decrease: Buyers who need to borrow more than $474,950 (loan limits are county specific) will be unable to use FHA financing and must apply for a jumbo loan. Typically, this means that instead of making a down payment of 3.5%, borrowers will be required to make a more significant down payment.

Ability-to-Repay/qualified-mortgage rule: Borrowers without a lot of debt won’t be affected by this new rule, but those who have a debt-to-income ratio above 43% will find it harder to qualify for a loan unless they can reduce their debt or boost their income. Self-employed borrowers will need to provide more documentation of their income, and all borrowers will be required to provide extensive paperwork to prove their income and assets.

Caps on loan origination fees: Lender fees will be limited to 3% of the loan amount, which means borrowers won’t be overpaying for their loans. However, the cap on fees may make lenders less likely to offer smaller loans.  Another area that could be problematic is if a buyer wants to buy down the interest rate.  Given that fees are limited to 3%, buying down an interest rate may not be possible.

Rising guarantee fees: Lenders are likely to pass on higher fees that they pay to consumers, which will add to the cost of borrowing. That is on top of rising interest rates, which many experts are forecasting will reach at least 5%  next year. While that’s not high in historical terms, rising borrowing costs mean that many people won’t be able to get as much house as they had hoped. Still, some experts see an upside: Higher rates may mean fewer loan applications in 2014. Tight competition between mortgage companies for a smaller pool of applicants could mean that lenders will loosen their standards a little and make it easier for some borrowers to qualify for a loan.

New mortgage servicing rules: Mortgage servicers will be required to provide each borrower with a monthly statement that clearly shows their interest rate, loan balance and escrow account balance and an explanation of how their payment is being credited. Lenders will be required to credit mortgage payments on the day they are received. “Dual tracking” will no longer be allowed, which means that no foreclosure proceedings can be started until a borrower is at least 120 days late and until borrowers have completed a loss mitigation application and it has been addressed by the lender.

Appraisal delivery rules under Reg B and Z:  This rule requires that all appraisals and valuations be provided to the applicant.  Delivery to the loan applicant must occur at least 3 days before closing escrow; this can potentially delay the closing date.  This rule does allow for waivers in certain circumstances.

Pottery Barn Giveaway

I'm excited to announce this giveaway to Pottery Barn. I've partnered with some great blogs to sponsor this, you'll have to visit them and get some inspiration for your home! Enter here via Rafflecopter (it will take you literally 30 seconds to sign up!).

  a Rafflecopter giveaway

Bad MLS Photography

We all know the importance of marketing a home on the internet with great photos... or do we?

The National Association of Realtors has surveyed home buyers and approximately 85% of home searches begin using the internet. With the syndication from the MLS to other real estate search portals, such as Realtor.com and Trulia.com, it is incredibly important to get these photos right, they are the first impression of the home!

I don't have the proper equipment or skills to get great photos so I hire, at my expense, a professional photographer for the majority of my listings. I realize some homes just do not photograph well but here are three of the worst MLS photos I found this week that could have been better... no matter what the agent's photography skill set or camera is:

Move back, Photographer! Are you selling hangers and mixed nuts?

Tip for a better photo: Shoot it from the bathroom so you get the washer and dryer as the main focus, or, consider just not including this area in the photo gallery.

I'm gathering dirty laundry hookups and cracked tile come with this home.

Tip for a better photo: Take a wide angle photo so that the potential buyer can see the entire laundry room... or, if it's as dirty as this photo don't include it!

This is just sad... the gurney has wheels, move it out of the photo and close the cabinet door!

Other tips for a better photo: Get rid of clutter. Open the blinds and shoot at a time when you have great daylight streaming in. The best times to shoot are about an hour or so after sunrise and an hour before sunset.

What are some of the worst MLS photos you've seen?

Farewell to Nestware

Many choose to live in Davis because of the “sense of place”. So many communities have lost their center of activity in favor of strip malls and chain stores, you know the story…but Davis feels unique particularly because of the great downtown filled with original stores and places to eat.

Photo courtesy of Nestware’s website

Davis shop owners Lynne and Rosalie have decided to close their gorgeous store, Nestware, after a 10 year run. I will dearly miss their carefully edited whimsical selection of gifts and home accessories. I will miss the artistic displays and wonderful colorful stories. Most of all I will miss the ability to walk in to Nestware and be greeted by two of the most interesting women I have met. While shopping we would often have great conversations, I would leave the store feeling better, wiser or knowing I just had the best giggle of the day.

Thank you, Lynne and Rosalie, for all of your hard work to make Davis’ downtown even stronger! Thank you for your countless hours spent on committees, your strong belief in local business and your friendship. I wish you the very best in all that comes next!

Tales of Remodeling a Tudor: It's All in the Details

I always love hearing about a former client's experiences in their new houses, especially when it involves making it their own through renovation and various improvements, and thought you might enjoy hearing the same about our home. We moved into a wonderful 1940s Tudor on a tree lined street about a year and half ago. Our home is in good shape and not a total fixer but lacked some details that truly make a home special.

In the first year we pulled up carpet to expose the original hardwood floors, which we refinished.

We added crown molding around the house, painted the living room a wonderful white and, because it's all in the details we added a tiny touch of wallpaper to make an impact.

We added cabinet hardware to the kitchen, tile in the front entry, and wainscoting to the dining room.

I am fortunate to know some amazing trades people (I am more than happy to pass along names!) and found that the work that was done added much needed character to the home. This year we hope to remodel the one full bathroom, details to come at a later date!

What did you find to be the most worthwhile improvement you made to your property?