Navigating the Rise of House Hacking: A Smart Solution for Home Affordability

In recent times, the challenge of affording a home has intensified, prompting a notable shift in living arrangements. A growing number of adults, both young and older, are finding themselves returning to their parental homes, a trend that is reshaping societal norms.

Historically, moving out of the family home post-graduation was a rite of passage. Staying with parents beyond a certain age was often viewed with a degree of skepticism. However, this perception is changing. As highlighted in a Yahoo Finance report, living with parents, or returning home after a period of independence, is now a common and less stigmatized practice.

This shift, while reducing the judgment on those staying with family for economic reasons, doesn't diminish the desire for personal homeownership. This is where the concept of "house hacking" gains relevance, especially among Millennials and Gen Z.

Understanding House Hacking and Its Growing Popularity

"House hacking," as reported by CNBC, is a strategy increasingly adopted by younger generations to achieve homeownership. It involves renting out part of their residence to offset costs, making homeownership more financially feasible.

This approach isn't limited to the younger demographic. A significant portion of recent homebuyers across various age groups view house hacking as a crucial strategy for affordable homeownership.

Key Considerations for Aspiring House Hackers

If you're contemplating house hacking, here are essential points to consider:

1. Mortgage Qualification Without Rental Income: To rent out part of your home, you first need to own it, typically through a mortgage. Lenders won't consider potential rental income in their mortgage qualification process, so ensure you can afford the mortgage independently.

2. Securing Tenants in Advance: While lenders may not account for future rental income, having a tenant lined up can provide financial reassurance.

3. Tenant Selection: It's crucial to be discerning about who you let into your home. If you don't know the tenant personally, conduct thorough background checks and ask for references.

4. Legal Agreements: Draft a clear lease agreement outlining usage rules and shared spaces. For legal robustness, consider consulting a lawyer.

5. Local Regulations and Zoning Laws: Before proceeding, ensure your local laws and any homeowners association rules permit renting out part of your residence.

The Alternative: Investing in Multifamily Properties

Another form of house hacking involves purchasing a multifamily property. Living in one unit while renting out the others can provide similar financial benefits. This approach often comes with fewer restrictions and can be more appealing to lenders.

Conclusion: House Hacking as a Path to Homeownership

With rising housing costs, house hacking offers a practical solution for many aspiring homeowners. It requires careful planning, from financial readiness without relying on rental income to legal and regulatory compliance. For those seeking both investment and a place to call home, multifamily properties present a viable alternative.

How to Survive Buying a House With Your Relationship Intact

Guest Blogger: Natalie Jones

Whether you’re married or not, buying a house together can feel like the biggest commitment of your relationship. After all, you’re financially enmeshing yourselves in a way that a shared checking account just doesn’t do. It’s exciting and scary all at once, but signing the mortgage isn’t the only intimidating part of buying a house. House hunting itself can strain even the best of relationships if you’re not careful.

When you’re buying a house as a couple, the first thing to do is get on the same page about finances. You can’t afford to have any financial secrets. If you have thousands of dollars in unpaid debt that your significant other doesn’t know about, it will come out during mortgage pre-approval and lead to an argument. If there are unpaid debts or accounts in collections on your credit histories, find out what you can do to improve your credit score.

Once you’ve qualified for a mortgage, it’s time to decide how much you want to spend. The amount that you qualified for isn’t necessarily what’s right for your budget. One study from LendingHome showed that half of all home buying disagreements among millennials and Gen Xers stem from differences regarding the right amount of debt to take on. That makes this a necessary conversation. Sit down with your significant other and make a household budget. Once you’ve accounted for all monthly expenses, debt payments, and savings goals, settle on a price range you’d be comfortable paying toward housing each month. Make sure you consider homeownership expenses beyond the mortgage; you’ll also need to factor in utility bills, property taxes, insurance, homeowners association fees, and an emergency fund to cover unexpected repairs. According to reporting from CNBC, these hidden costs of homeownership rack up to average $9,080 every year.

Before you start looking at homes, have a conversation about your wants and needs for a new home. Any home feature that isn’t cheap or easy to change, talk about it — from the kind of neighborhood you want to the type of cabinetry you prefer. The goal is to come up with one single list of agreed-upon wants and needs. If your visions differ, this is the time to come up with a compromise. If you head into house hunting with different dream homes in mind, all you’re going to find is frustration.

While it’s important to have a shared vision for your future home, be prepared to change course if the market demands it. Many first-time buyers overestimate how far their budget will take them. You may have to revisit the discussion if the homes within your budget don’t live up to your dreams.

You should also consider how much time you’re willing to commit to finding a home. Are you going to spend every evening and weekend viewing homes until you’ve found the right one, or do you want to schedule some downtime into your house hunt? Are you willing and able to take off work to jump on the perfect opportunity if competition is high? What’s your deadline for moving? These are all questions to answer before you start contacting selling agents.

Don’t forget to plan for the move: You’re going to have different convictions about the best way to pack boxes and load a moving truck and the right hand signals to use when backing up a box truck. Those minor disagreements are only going to be magnified amidst the stress of moving day, so make a moving plan in advance. Establish a timeline and make a checklist of everything that needs to be done between now and moving day. Assign each task to one person or mark it down as a shared duty to reduce the chances that an important to-do gets overlooked.

Finally, be kind to yourself and each other. Buying a home and moving are stressful tasks and it’s normal for emotions to run high when you’re making major life decisions. If you feel your patience wearing thin or your relationship suffering, step back from house hunting to unwind, spend quality time together, and remind yourselves why you’re on this journey in the first place.

Natalie Jones, together with her husband (Jason), created Homeownerbliss. Since they've bought their home, she has decided to try to help others learn from their experiences. That’s how Homeownerbliss.info was born! She is passionate about making the process of buying a home less scary for first-timers, as well as inspiring homeowners of all stages enjoy the perks of home ownership!

Image via Unsplash

Painting Your Own Home: Tips to Make the Process Painless

Painting Your Own Home: Tips to Make the Process Painless

While it’s might seem easier to hire professionals to paint the house, but with a little research you can find the job is not as intimidating as it seems. With a few free days set aside and some preparation, painting one room (or multiple) is easily doable for anyone. Here are a few things to consider before you start.

Apply a Primer Coat

Preparation entails most of the painting process. It’s easy to become frustrated during the preparation stage, because prepping to paint can take longer than the actual painting component of the project.

Interior walls aren’t always perfect, and painting the walls is a perfect opportunity to fix those imperfections. If you’re using a putty or a filler to patch holes, the paint will react differently to those substances than it will the wall itself. The solution here is to prime your walls, so the new paint color has a uniform surface to adhere to. It’s one simple step that doesn’t seem like much, but could end up saving you a whole lot of work at the end of the process.

Factor in taping time

Taping up the room is tedious work, but will be worth it when you don’t have to waste time being ultra-careful or nervous when getting close to edges. Instead of trying to take the tape off while the paint is still dry, wait at least 24 hours for the paint to dry, and use a knife to slice the tape off at the edge. If the paint is still even a little wet or gummy, don’t continue. Make sure the knife is sharp enough and pull the tape away at a 45-degree angle, making sure not to rip the paint.

Set up with clean-up in mind

To protect floors, a drop cloth is a necessity. In some cases, cotton or canvas drop clothes can work better than plastic. Plastic drop cloths can be slippery and don’t easily stay in place, especially when ladders are involved. Any splatters or drips of paint that fall onto a plastic drop cloth won’t dry or absorb right away and can be easily tracked throughout the rest of your house. A canvas or cotton drop cloth will be more stable and will protect the floors better. Tape the edges of the drop cloth to the tops of the trim to protect both the floor and the trims from any splattering or dripping paint.

Work top down

Not only does it prevent drips from ruining anything you’ve already painted, but it keeps the walls and baseboards free of any dust or debris from sticking to wet trim. Paint the ceiling first, move to the walls and possible crown moldings. Only then should you move to any trims around windows or doors and finish with the baseboards. Not only will this keep a system in place to ensure there’s no questioning what’s been painted and what hasn’t, but it’ll keep things clean.

Check thickness of previous paint layers

Cracks on an exterior paint job don’t reflect the owner’s best intentions and should be fixed before the damage is too much to fix. Too thick of a layer of paint means that the paint might just be too heavy to stay, and will start to crack and to peel off. It loses its grip and can’t attach to the other layers of paint. In older homes, it’s likely that some of those layers of paint have lead in them, in which case you’ll need to look into how to remove it safely. The EPA has guidelines here. This could be the one step that requires you to outsource, if the layer of paint is extremely thick, because removing it completely (and correctly) will ensure the next coat of paint will attach correctly. Hiring a home washing company can help you identify these cracks in exterior paint as well. If anything, have the exterior of your home professionally power washed, so the paint will have a clean surface to adhere to.

Using these tips, ideally the house-painting process will be doable for anyone. Prepare yourself to set aside time for set-up, knowing that it will help when you’re done painting and ready to clean up. Instead of hiring painting professionals, save some money for decorating and tackle the job yourself.

Curious to know how much your Southern California home is worth! Get an instant report now! www.CaliOnTheMove.com 

Bio: Matt Lawler is an Internet marketing specialist from Tempe, Arizona where he attended Arizona State University. Whenever he can step away from the computer, Matt enjoys playing sports, traveling and exploring the great outdoors. Follow him on Twitter.

Laura Key, REALTOR® Cal BRE 01908085 310-866-8422 Laura.A.Key@gmail.com www.KeyCaliforniaHomes.com

How To Find A Realtor (Buyer)

[youtube https://www.youtube.com/watch?v=Hf7vgVU_IGs&w=420&h=315] Did you know most people choose a Realtor by spinning the wheel of fortune? When you are buying a home, you really should take the time to interview agents to help your buying experience the most enjoyable as it can be.

Did you know not all agents work the same? Some don't work weekends, some don't want to work with buyers, some only work certain hours of the day, some are part time, etc.  But how will this benefit you when you are working hard to find the home of your dreams.

Interviewing agents is a extremely important part of successfully buying a home.

Enjoy the above Periscope broadcast to learn a few things when choosing a Realtor! (recorded March 19, 2016)

Please note I have a correction: If an agent tells you they will not let you out of a buyer's agency, please think long and hard before signing.

Follow me...

Snapchat: @realtygoddess Periscope & Twitter: @realtygoddess Instagram: realtygoddess1 Facebook: www.Facebook.com/RealtyGoddess Website: www.KeyCaliforniaHomes.com

The “KEY” to your real estate dreams!

Lots of Los Angeles Real Estate Agents want to be stars as big as the celebrities they cater to. Me? I just want to help people find the homes that make them happy and help them to create a sanctuary for future dreams and lasting memories.

Laura Key 310-866-8422 Laura.A.Key@gmail.com Cal BRE #01908085

Los Angeles FHA Loan Limits

Homeownership is not out of reach. FHA limits in California are one of the highest in the country.  I have great lenders that can help you reach your real estate goals! Call me to get started on your home ownership goals!!!  Laura Key 310.866.8422

Here are the current limits for Los Angeles (as of Nov 13, 2014) FHA allows 3.5% downpayment over a 15 to 30 year term!

Single Family             $625,500

Duplex                        $800,775

Tri-Plex                      $967,950

Four-Plex                   $1,202,925

Start your home search today!

www.KeyCaliforniaHomes.com

**Source: https://entp.hud.gov

Beautiful Patio Tile Work

I can just see myself sitting on the patio

with a nice cup of tea with a warm blanket!

www.KeyCaliforniaHomes.com

Tree Falls Over Property Line: Who Pays? Who Picks Up the Pieces?

Tree Falls Over Property Line: Who Pays? Who Picks Up the Pieces?

By: Ann Cochran

Published: March 23, 2011

If a neighbor’s tree falls over your property line, file an insurance claim for repairs and cleanup. No house damage? Check if chopping and hauling debris is covered.

When a neighbor’s tree falls over your property line, yell TIMBER, then call your insurance company. Home owners policies cover tree damage caused by perils like wind and winter storms. Most policies cover hauling away tree debris if the mess is associated with house damage; some will cover cleanup even if no structures were harmed.

When a Tree Falls

Your neighbor is responsible when a tree falls over your shared property line only if you can prove he was aware that his tree was a hazard and refused to remedy the problem. Regardless, your insurance company restores your property first, and later decides whether or not to pursue reimbursement from the neighbor or his insurer if the neighbor was negligent in maintaining the tree.

Before a Tree Falls

Write a letter to your neighbor before his dead, diseased or listing tree falls through your roof or over your property line.

The letter should include:

• Description of the problem

• Photographs

• Request for action

• Attorney letterhead--not necessary but indicates you mean business.

Trim Their Trees

If the limbs of a tree hang over your property line, you may trim the branches up to the property line, but not cut down the entire tree. If a tree dies after your little pruning, the neighbor can pursue a claim against you in civil or small claims court. Depending on the laws of your state, your neighbor may have to prove the damage was deliberate or caused by negligence, but may also be able to recover up to three times the value of the tree.

Before you cut, tell your neighbors what you intend to do to protect your property. They may offer to trim the whole tree instead of risking your half-oaked job.

Your Tree Falls

It’s always a good idea to take care of your big and beautiful trees, and keep receipts for trimmings and other care.

But if your tree falls over a neighbor’s property line, do nothing until their insurance company contacts you. You may not be liable unless you knew or should have known the tree was in a dangerous condition.  If you pruned a tree or shored up trunks to prevent problems, gather your receipts to prove your diligence.

Lots of Los Angeles Real Estate Agents want to be stars as big as the celebrities they cater to. Me? I just want to help people find the homes that make them happy and help them to create a sanctuary for future dreams and lasting memories. Contact me today!

How to Replace a Toilet Handle

How to Replace a Toilet Handle

By: Oliver Marks

Published: December 14, 2012

Replacing a toilet handle is one of the easiest — and most-common — DIY projects. Here’s what you need to know.

Is your toilet flush handle broken, rusted, pocked, or just plain and old-fashioned looking? Maybe it’s always loose, no matter how many times you tighten that nut on the inside of the tank?

Replacing it with a new flush handle updates the look of the toilet -- and therefore, the whole bathroom — and takes care of annoying wiggles.

It’s an affordable, easy, do-it-yourself job, says Mt Pleasant, S.C., handyman Tim Shaw, who specializes in low-cost bathroom makeovers.

1) Open the tank. Remove the tank lid and set it on a spread-out towel in an out-of-the-way spot (be careful — porcelain is brittle). Look for a model name or number printed inside the tank (as well as the brand name on the outside), and write that information down. It may come in handy when you buy a replacement handle.

2) Unhook the lift chain. You’ll see that the handle is attached to a long arm inside the tank, and that the arm is linked to a chain that lifts the flush valve. Note which hole the chain is hooked to (there are usually three or more holes on the arm) and then unhook the clasp that holds the chain to the arm.

3) Remove the old handle. Use a crescent wrench to remove the nut inside the tank that holds the handle in place. Be careful: For the vast majority of toilets, the nut has left-handed threads, which means they turn in the reverse direction of a normal nut. If you were to face the nut directly, you’d turn it clockwise to loosen it.

Don’t force it, because if you turn it hard the wrong way (or the wrench slips and slams into the tank wall), you could crack the porcelain. If the nut is rusted in place, give it a shot of lubricant, such as WD-40, and try again. Once you loosen the nut, remove it by hand, and slide the arm through the hole.

4) Purchase a replacement. The replacement part you need is called a “toilet trip lever” and it includes the handle and swing arm. They retail for under $20, but models for high-end toilets may cost $50 to $100. Though some trip levers are labeled as universal replacements, there really is no such thing. There are differences between the length and angles of the arms, the placement on the tank (left or right, front or side), and the style and finish of the handle.

Go to a plumbing supply or home center that sells your toilet brand, and ask your retailer for help choosing the right fit. Show them the model number and brand name of your toilet.

“Bring the old handle to the store with you to help select a matching new one,” advises Shaw. “That way you can compare the old piece to the new products being sold.”

5) Attach the new handle. Use a soapy scrub sponge to clean any mildew or rust stains off the porcelain around the handle hole. Remove the nut from the new handle, and insert the arm into the hole. Slide the nut back over the arm and hand-turn it onto the handle base — again, remembering that it’s likely a left-handed thread.

Use a crescent wrench to firm it up, but don’t over-tighten or you could crack the porcelain.

6) Attach the chain. Clip it to the same hole as on the old arm. Then do some test flushes. You want the flush mechanism to open and close fully. If the chain is too loose, the tank won’t drain fully. If too tight, the chain may prevent the flush valve from seating properly, causing it to leak continually.

Adjust by switching which hole the chain is clipped to, or by adjusting the chain up or down a link or two. Keep testing until the flush works just right. Once you’re satisfied, replace the tank lid and you’re done.

Find your next home with me! Text LKHOMES to 87778 or

visit http://87778.mobi/LKHOMES for your FREE search.

 

Laura Key, CalBRELic #0198085

www.KeyCaliforniaHomes.com

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15-Minute Home Makeovers

15-Minute Home Makeovers

By: Lisa Kaplan Gordon

Published: January 2, 2013

Here are 7 house pick-me-ups that take about as much time as brewing a pot of coffee and fit your schedule whenever you have a few extra minutes.

1. Switch the plates. Upgrade your drab, plastic switch plates with snazzy covers that match or accent your décor. Even the most expensive brass switch plates cost less than $20 each.

Or, spend a buck for a plastic plate and decorate it yourself. Use craft paint, or cover the plate with decorative paper.

You also can switch outlet covers, but don’t get too fancy. Outlet covers should blend with the wall.

2. Touch-up boo-boos. A bit of new paint gives any room a fresh face, which is why you should keep extra color-matched paint after you remodel. Touch up banged-up baseboards, door and window trim, and wall marks that won’t wash away. Even spot painting requires care; use a drop cloth to protect other surfaces.

3. Change out drawer and door hardware. Upgrade your kitchen or bathroom by installing new pulls and knobs. Be sure to measure drawer pulls so you won’t have to drill new holes. Check out these cute and economical ($4.95 for 8) zoo dresser drawer knobs on Esty. Home improvement centers have a large selection of inexpensive pulls and knobs.

4. Update your mailbox. Bump up curb appeal by spray-painting your old mailbox. You can freshen the same color, or go wild with bright hues. Don’t forget to scrub off dirt and rust before painting with rust-proof paint ($6-$12 for a 10-oz. can; lots of decorative textures and colors).

5. Play the numbers game. Decorative house numbers and plates give your home a custom and classy look. Some numbers are quick peel-and-stick affairs; others you’ll have to screw in. They’re made of wood, plastic, brass, stainless steel, and other materials; $6 to $30 each.

6. Embellish your throne. A new toilet seat gives you a regal bearing. Plastic and enameled seats ($12-$25) in a rainbow of colors add a dash of panache; a solid wood mahogany or walnut seat ($45-$60) makes an executive statement; cushioned seats ($15-$20) won’t make a lasting impression — and that’s a good thing.

7. Declutter. You’ll be amazed how a 15-minute daily declutter can make a room look like new. First, get rid of stuff from your fridge door: that large, blank canvas will immediately brighten your kitchen. Corral mail and papers in decorative boxes with tops that can close and hide the mess. Organize school supplies in caddies. Every day, tame a new spot.

Find your next home with me! Text LKHOMES to 87778 or visit http://87778.mobi/LKHOMES for your FREE search.

Laura Key, CalBRELic #0198085

www.KeyCaliforniaHomes.com

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As Home Prices Rebound, Lenders Rush to Unload REOs

DAILY REAL ESTATE NEWS | THURSDAY, DECEMBER 26, 2013

The recovery in home prices this year is prompting banks to sell off their REO inventory at a brisker pace. Sales of bank-owned homes made up 10 percent of residential sales in November, the third consecutive month for increases in REO sales, RealtyTrac reports. 

"Lenders are taking advantage of this environment to unload more of their bank-owned inventory and in-foreclosure inventory at the foreclosure auction," says RealtyTrac's Daren Blomquist. "But as the backlog of distressed inventory available dries up in many of the markets with the most efficient foreclosure processes — namely California, Arizona, and Nevada, with Georgia not far behind — overall sales volume is declining and will continue to do so until more nondistressed sellers enter the market."

Rick Sharga, executive vice president at Auction.com, says his company is “seeing more properties sold at trustee sales, and we are seeing more properties that are coming from servicers priced to sell at trustee sales.” 

Previously, mortgage servicers would put foreclosed homes up for sale at the full value of the loan, CNBC reports. However, those homes would often land back at the bank as investors sought larger discounts. “Ironically, as prices are rising, servicers are discounting the homes more,” CNBC reports. 

Start your home search out RIGHT! Access homes from a direct source! Text LKHOMES to 87778 today or go to http://87778.mobi/LKHOMES Available on iPad/Tablet/Smartphones

Source: “Sales of bank-owned homes surge,” CNBC (Dec. 20, 2013)

Tree Hugging REALTOR®

This weekend I had a wonderful time previewing homes in Hancock Park.  You would think that since I see so many homes with clients the last thing I would want to do on a rare off Sunday is go see more homes! Sometimes you find treasures worth more than gold.  Such is the finding of this fabulous tree.  This great maze of branches and leaves still lives behind a multi-million fixer upper.

The minute you see this fallen beauty you know it has stories to tell.  Children climbing it's branches, picnics under it's once upright limbs. You just don't see things like this everyday.  And even though this old tree has fallen, it will still have many stories to tell.  I do hope that the new owners leave it right where it is, so it can create future stories for all to wonder at.  

There is something so rare, so beautiful and so peaceful about standing beside it.  I could not fit the whole tree in a single photo.  Look at the first photo, you will see the base and some of it's exposed roots.

Now, look in your left hand corner at the person standing beside the tree.  You can clearly see just how majestic this beautiful tree actually is! In fact it reminds me of the trees that come to life in "Lord of the Rings" the ones who can hold you tight in their grasp while traveling great distances.

Memories, precious memories this tree holds! I feel all the more wiser just for seeing this classic beauty!

Ready to start making memories of your own?  Find your new home today! Text LKHOMES to 87778 for your FREE. Or call me today and let's get started on your personal journey! 310.866.8422

Hancock Park, Memories, California Homes, Holiday Joy, Childhood Dreams, Trees, Old Trees, Wisdom, Peace, Peaceful, Joy, Majestic, Realty Goddess, Realtor Goddess, Real Estate Agent, #1 Agent, Windsor Square, Mid-Wilshire

FHA Limits for Los Angeles Area

Homeownership is not out of reach. FHA limits in California are one of the highest in the country.  I have great lenders that can help you reach your real estate goals! Call me to get started on your homeownership goals!!!  Laura Key 310.866.8422

Here are the current limits for Los Angeles (as of August 23, 2013) FHA allows 3.5% downpayment over a 15 to 30 year term!

Single Family             $729,750

Duplex                        $934,200

Tri-Plex                      $1,129,250

Four-Plex                   $1,403,400

Source: FHA.com

More Renters Say They Want to Own, Survey Finds

Interested in purchasing a new home! I have a team that can help you reach your real estate goals!  Call me today! Laura Key 310.866.8422

The majority of renters say home ownership is one of their highest priorities for their future, and more renters are saying they want to buy soon, according to the 2013 National Housing Pulse Survey, conducted by the National Association of REALTORS®. Renters are showing stronger desires for home ownership compared to recent years, according to the survey. 

“Home ownership matters to Americans who consistently realize the many benefits it provides to communities, families, and the nation’s economy,” says NAR President Gary Thomas. “Due to high housing affordability and today’s interest rates it makes sense for people to consider home ownership over renting. In fact, in many parts of the country it’s cheaper to own a home than to rent one. Therefore, it’s no surprise that renters recognize that owning a home offers tremendous long-term benefits and is an investment in their future.”

Fifty one percent of renters say that eventually owning a home is one of their highest personal priorities, up from 42 percent in the 2011 survey.

The survey found that 80 percent of the 2,000 Americans surveyed say they believe buying a home is a good financial decision. Sixty-eight percent said now is a good time to buy a home, too. 

Their main motivations to home ownership: Building equity, wanting a stable and safe environment, and the freedom to choose where to live, the survey found. 

Meanwhile, the main obstacles to home ownership have remained the same over the years: saving for the down payment, closing costs, low wages, and student loan debt. 

“Student loan debt is a concern for many consumers in today’s market, especially first-time buyers,” Thomas says. “Buyers with student loan debt may find it difficult to access mortgage credit, as well as save for a down payment. Pending mortgage finance regulations requiring higher down payments could also contribute to the already tight lending environment. REALTORS® are working with regulators to address this issue and are committed to making sure those who are willing and able to own a home have the opportunity to pursue that dream.”

Source: National Association of REALTORS(R)

IRS Simplifies Home Office Deduction

Working from home can be beneficial! Hope these tips help! Need a home checkup? Call me Laura Key 310.866.8422

The number of home owners who work from home at least one day a week increased nearly 10 percent — from 9.5 million to 13.4 million — between 1999 and 2010, according to U.S. Census Bureau data. However, only 3.4 million home owners claimed deductions for business use of a home in 2010, according to the IRS. 

The IRS recently announced a new safe harbor provision for home office deductions for the 2013 tax year. 

“This allows at-home workers the option to simply take a deduction capped at $1,500 per year based on $5 a square foot for up to 300 square feet,” FOX Business reported. “The requirement that home office space be exclusively used for business and limitations on income earned from that business still applies, and direct business expenses unrelated to the home (advertising, supplies and wages paid to employees, etc.) are fully deductible.”

"The home office deduction is one of the most misunderstood and abused deductions out there," says Margaret Munro, a tax consultant, about the changes. "If you have a valid home office, you take the deduction because you shouldn't be paying tax on money that you're using for your business."

For more information on the deduction, visit the IRS Web site.

Source: “IRS' Simpler Home Tax Deduction Cuts Through the Clutter,” FOX Business (July 24, 2013)

Sellers Jack Up Price After Offer is Accepted

Until a contract is SIGNED it is not accepted!  Be very careful when "words" or a simple "handshake" is used! It might come back to haunt you!  Laura Key 310.866.8422

Some home sellers are accepting a buyer’s offer, even having a contract drawn up, only to ask for a higher price a few days later.

The move called “goalpost-shifting” is becoming more common in competitive markets with limited inventories of homes for sale, The New York Times reports. Some sellers keep the bidding on their homes going even after they’ve said they'll accept an offer from a buyer. 

The New York Times describes a recent incident where a buyer offered $912,000 for a condo that was originally listed for $800,000, which had attracted more than a dozen offers. The seller accepted the buyer’s offer and a contract was written. However, a few days later the seller notified the buyer that the price had increased to $995,000. The buyer refused to increase his offer, and lost out on the unit. The seller ended up selling to another buyer who offered $1.1 million. 

The practice is controversial, but The New York Times quotes brokers who note that buyers are learning a tough lesson: Until signatures are on a contract, a deal isn’t done. Also, they note the buyer is generally given the opportunity to increase their offer. However, other agents say it’s a greedy move on sellers’ part and that once sellers give their word, they should honor it. 

“It’s surprising how ugly it’s getting,” says Robert Frankel, a real estate lawyer who frequently handles closings. “If you don’t hear back about a contract in two days, there are usually some shenanigans going on.”

Source: DAILY REAL ESTATE NEWS | MONDAY, JULY 22, 2013

The Real Estate World is moving and shaking, make sure you have an expert to help you during these times.  Call Laura today! 310.866.8422

5 Home Inspection Red Flags

Inspection is always a good way to see the bones of your new home! Do not ever skimp on inspection!  Laura Key 310.866.8422

A home inspection is a buyer’s opportunity to see if any problems lurk that may prove expensive to fix later. Home inspections nearly always uncover something in a home to watch for or minor repairs needed. But what repairs should buyers especially be alarmed about that could possibly send them back to the negotiation table? Tom Kraeutler of The Money Pit, a nationally syndicated radio show on home improvement, points out some of the following home inspection red flags:

1. Termites and pests: The sooner termites are detected, and steps can be taken to get rid of them, the better.
2. Drainage issues: A home that has poor drainage can have wood rot and wet basements and crawlspaces, which can then lead to major mold growth.
3. Mold: Pervasive mold growth may indicate an issue with improper ventilation issues and can also cause health issues to those living in the home.
4. Faulty foundations: A cracked or crumbling foundation could be a very expensive repair.
5. Wiring issues: Outdated wiring or overloaded circuits can pose a fire hazard. 

Source: DAILY REAL ESTATE NEWS | MONDAY, JULY 22, 2013

Call me today! Let's get you started on making your home dreams come true! Laura Key 310.866.8422

Higher Home Prices Cool Buying Frenzy

Is all this frenzy creating a mini-housing bubble? What are your thoughts on this housing market?  Laura Key 310.866.8422

The recent rise in home prices has more investors concerned that it will be increasingly difficult to turn a profit from their rental investments. Nearly half of U.S. real estate investors say they expect to purchase fewer rental homes in the next year, according to a recent survey conducted by polling firm ORC International.

Just 10 months ago, the percentage of investors who said they intend to buy fewer homes stood at 30 percent—compared to 48 percent today. Only about 20 percent of the investors surveyed say they plan to buy more homes in the next year—a drop from the 39 percent who reported they intend to buy more homes last August.

More than half of the investors surveyed who own rental properties say they plan to hold them for at least five years or more, and 33 percent plan to hold them for 10 years or more. 

“Higher prices are reducing returns on investment and investors are responding by cutting back on their purchasing plans until conditions sort out,” says Chris Clothier, a partner in MemphisInvest.com and Premier Property Management Group. “Fewer foreclosures, rising property values, and competition from hedge funds are making it tough to find good ideals on distressed sales. On the other hand, investors are planning to hold onto their rental properties for at least eight to 10 years and realize the benefits of rising rents and low vacancy rates. Cash flow is much more important than appreciation.”

Source: ORC International

Laura Key, CBS News, Buyer's Agent, Selling Agent, 

Thinking of Selling? I have buyers who are pre-approved and ready!  They are looking in several areas of Los Angeles county!

New House - New Yard - Got Plans?

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Condominiums – Should You Consider Purchasing One

Condominiums tend fall into the love them or hate them position for buyers

Condominiums are all about communal living, which can be good or bad depending upon your personal views. This type of communal living doesn’t refer to the failed experiments of the sixties wherein hippies packed into a structure and shared everything. Instead, the modern condominium community is all about sharing common spaces as well as rules, rules and more rules.

Condominiums come in all shapes and forms. Condos can be found in a single high rise building in a downtown area or in an apartment complex type of layout in a planned community. The structure isn’t the determining point. Instead, the issue is how the properties are owned.

Unlike a stand alone home, the property lines on a condominium are the walls of the structure. Essentially, you own everything inside the condominium as your individual property. Everything outside the condominium is owned jointly with the people who own the other units. These areas are known as common areas and are subject to group rule.

Every condominium has a homeowners association in one form or another. The association has rules set out by the original developer regarding landscaping and so on. Members of the community are then elected to the board of the association, whereupon the immediately become a focal point of aggravation from individual owners and often wonder why they took the thankless job.

The problem with the association and condos in general is the issue of uniformity. If you desire to change the exterior of your condominium in some way, you must comply with the rules of the association. This means you cannot paint your property a different color, do landscaping and so on. For some people, this isn’t a problem, but others are frustrated they can’t express themselves.

When deciding whether a condominium is a good option for your next purchase, you need to carefully weigh the restrictions of a particular association. If you consider yourself an individual and want to show it, a condominium is probably a very poor choice for you.

Laura Key, BRE 01908085

310.866.8422

Laura.A.Key@gmail.com

www.KeyCaliforniaHomes.com

Budget for Closing Costs – Home Inspection and Title Fees

Buying a home means you also have to budget for additional expenses! Make sure you put some money aside for the extras.

Purchasing a home is a euphoric event. Once escrow begins, the euphoria can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate.

Closing costs simply refer to the fees associated with various things associated with the escrow process in a real estate transaction. In the excitement of having an offer accepted for your dream home, you can easily lose track of the fact you are going to need to have some serious cash on hand to pay them. Many people make the mistake of only assuming they need the down payment money, and have to rush around town trying to come up with money for the closing fees.

If you are buying a home, you need to get a professional home inspection. Doing so can reveal potential problems with the home that you wouldn’t otherwise notice. Problems can include things such as rot, termites, water leaks and a bevy of other issues. The time to do this is during escrow. Of course, that means you are also going to have to pay for the inspection. Depending on the size of the property, home inspections can run a few hundred dollars up to a few thousand. Make sure you have money set aside for the fees.

Title insurance is something you absolutely must purchase when you buy any real property, a home, building, land or whatever. Title insurance protects both you and your lender. Title insurance is just what it sounds like. A title company will research the title of the home and essentially guarantee that the title is good. This means the seller actually owns the title and has the right to sell it to you. The title company will also make sure there aren’t any liens on the homes or other things that will cause you problems. Depending on the price of the home, title insurance can run you a couple of hundred dollars or up into the thousands. Again, it is important to find out the cost and budget for it.

Title insurance and a home inspection are two things you should absolutely have when purchasing a home. Just make sure you budget for them.

Laura Key, BRE 01908085

310.866.8422

Laura.A.Key@gmail.com

www.KeyCaliforniaHomes.com