Do you think you can hide that roof leak by simply refinishing and painting the affected wall and ceiling?  Think again.  How about disguising the termite damage in the floor by covering it over with new carpet?  Not a chance.  What about failing to tell the buyer and your agent that sewage backflows into the bathroom after every heavy rain?  Don’t do it!  Will it make any difference if your buyer acquires your house on an “as is” basis?  In your dreams!  A common mistaken belief is that an “as is” provision in a contract for the sale of real estate relieves the seller and his or her broker from liability for defects in the property.  To the contrary, an “as is” clause merely means that the buyer accepts the property in the condition that is visible or observable by him or her.  Courts have consistently held that an “as is” clause, by itself, does not relieve a residential property seller or agent from liability for hidden material defects of which they knew or for which the seller or broker had a duty to inspect and discover.  Both the seller and seller’s agent have independent duties to disclose concealed material defects that are not observable by the buyer.  Thus, when the seller or the seller’s agent fails to disclose all known material facts regarding the condition of the property that are unknown to, or hidden from, the buyer, an “as is” provision is ineffective to relieve the seller from fraud liability arising from the nondisclosure. For example, in one case a contract provided that the “buyer agrees to waive termite clearance and to absolve seller of any warranty, accepting house as is.”  In fact, the house was termite ridden and decayed by dry rot, which the seller knew, but failed to tell the buyer.  The “as is” clause did not protect the seller from fraud.  In another case, the seller sold a home he knew was subject to a county order to correct violations of the municipal code.  He advertised and sold the property “as is,” as a “fixer upper” and disclaimed any warranties having to do with municipal regulations and conditions.  None of these problems were disclosed to the buyer prior to the sale.  Despite the “as is” clause, the seller later was found guilty of fraud. On the other hand, an “as is” provision may be effective in the face of a “patent” defect, that is, a condition of a property visible or observable to the buyer.  Thus, such a clause may be effective as to a dilapidated stairway, but not as to a missing structural member, a subterranean creek in the backyard, or an unexploded bomb buried in the basement — if such defects were known by the seller.  Even with a patent defect, however, there is still a risk of liability because what may be obviously visible or observable to one person may not be to another. The lesson here is that all defects materially affecting your home should always be disclosed to your agent and any prospective buyer.  Concealment of any of such defects will undoubtedly lead to legal claims or even a lawsuit against you all of which can be avoided by full disclosure.  If you have any questions about what disclosures should be made with respect to your property or any other questions about how best to market and sell your property, please call us.  As real estate professionals, we can assist you in determining what items should be disclosed and how best to market your property.

If you are considering downsizing or moving to a new area to be closer to family and friends, one factor to consider before you sell your old home and buy a new home is the property tax implications.  Often times when a homeowner sells a home that has been owned for a number of years and purchases a new home, the homeowner receives “sticker shock” in the form of substantially increased property taxes.  This might be true even where the purchase price of the newly purchased home is about the same as the sale price of the old home that was sold.  The reason for this is Proposition 13, which places a cap on property taxes by permitting property to be taxed at a maximum rate of 1% of its assessed value.  The assessed value may be increased by only 2% per year until the property is sold.  Thus, the old home’s assessed value and its property tax was kept artificially low, while the new home is taxed at the much higher reassessed value based on the market value or purchase price. The law does provide, however, certain exemptions from reassessment and, in certain instances, allows a taxpayer to transfer the base-year value of his or her old home to a newly purchased home without being reassessed.  One of these exemptions is given to taxpayers 55 years of age or older.  Under certain conditions, a taxpayer who is 55 years of age or older may transfer the Proposition 13 base-year assessment value of his or her principal residence to any replacement dwelling of equal or lesser value in the same county and, sometimes, in another county. This exemption is available for any dwelling owned and occupied by a taxpayer as his or her principal residence, unless the dwelling is receiving a different real property exemption.  The dwelling may be a single family home, a unit in a common interest development (such as a co-op, condo or townhouse) or a mobilehome.  The new replacement dwelling must have been purchased or constructed either two years before the sale of the original dwelling or two years after the sale of the original dwelling.  The key consideration is that the newly purchased home must be of equal or lesser value to the sold home. The savings could be substantial particularly where the old home was owned for a long time.  There may be other restrictions and qualifications not discussed in this article that may limit or restrict your ability to receive the exemption.  If you think you qualify for such a tax treatment, please consult with your tax professional or advisor.

You don’t need to travel to Beijing to have the best Peking Duck available!   You can eat this traditional Chinese dish right here in Glendale, California!

Harvest Inn Restaurant serves up a Peking Duck that is first presented to you at your table side, unsliced.   It is then whisked away and reappears on a large platter sliced in the most beautiful presentation imaginable.   The crispy skin has been sliced and layered on one side of the platter, with all traces of fat removed!   The lean and moist duck meat is served boneless and arranged on the other side of the platter.   You have a choice between steamed “pancakes” (rice flour tortillas) or steamed buns on which to layer your duck meat, duck skin, hoisin sauce and slivered green onions.   Either the pancakes or the buns are delicious, and everyone will want more than one serving!    Harvest Inn restaurant needs a minimum of 24 hours advanced notice if you want them to make you a Peking Duck, so make sure you call to place your order!   Harvest Inn is located at 550 N. Brand Blvd., in Glendale, CA  91203.   Their phone number is (818) 956-8268.   This restaurant is not your typical “greasy spoon” type of chinese restaurant.   There is a full bar with an extensive wine menu, white tablecloths, private rooms, and sparkling clean restrooms!    Chris, the manager, can help you order other fantastic dishes to suit your tastes and impress your guests.   Tell him that Pauline Ching sent you!!!

If you’re waiting for signs of a housing bottom, join the club. Nobody blows a whistle and say, “It’s time to buy!”

That’s why market timing is an art, not a science, but you can improve your odds of buying wisely.

First, stop paying attention to the national media. Fear has sidelined buyers even in good markets, and that’s exactly when you need to take advantage — before other buyers wise up.

Second, be ready to pounce when you see the home you want.

The time is right to buy when you see these signs in your marketplace:

• Inventories start to decline. That means that the best buys are leaving the market, and best doesn’t necessarily mean cheap. It means the homes with the highest likelihood of profitable resale. Desirable homes will leave the market first.
• Days on market reduce. Days on market refers to the period when a Realtor enters a home in the MLS for marketing to other brokers, until the home sells. When DOMs are shorter, that signals a coming seller’s market. A seller’s market has more buyers than homes, so prices go up and selection goes down.
• Mortgage applications increase. Interest rates recently turned back the clock, causing many homeowners to jump in and refinance. Purchase applications were also up. Either way, that means homes are about to leave the market, so less inventory means firmer prices. Sellers will stop dropping their prices.
• Sold homes go for closer to listing price. In 2007, home prices dipped for the first time in four decades. With a 1.9 percent decline, homes still sold within 97 percent of listing price. When they get to 98 percent, you’d better be ready.
• Prices remain firm or rise. Prices are a product of demand. To attract buyers, sellers reduce their prices and offer more incentives. If homes are selling reasonably well, prices won’t move downward — they’ll go up.
• Incentives disappear. When a market begins to favor sellers, they don’t have to do as much to sell homes. Watch new homes and see if builders are still giving away swimming pools and granite kitchens. If they aren’t, times have changed.

Any change in condition will change others, so again — be ready. Now’s the time to buy a better house while prices are low, interest rates are low and inventory is still high.

In this buyer’s market, anything you can do to make your home standout will put you ahead of your competitors.  In this regard, the number one recommendation is to make sure your home is clean and free of clutter.  As the old proverb states, “cleanliness is next to godliness!”  This means that you should completely clean your house and yard from the curb to the back fence.  A finicky buyer will be less likely to purchase your home if there is trash and debris in the yard, grease on the kitchen range, mold and mildew in the bathroom and in the grout, filthy carpeting, clothing and other things sitting on chairs, sofas and beds.  You get the picture!  Here is a link to an article that makes other suggestions on what one can do to make your home standout: http://realestate.msn.com/Selling/Article2.aspx?cp-documentid=5602256>1=10534. 

LCHS Ranked Among Nation’s Top Schools
by U.S. News & World Report

Reprinted from The Outlook

La Cañada High School has been ranked 95th out of more than 18,000 public high schools in the nation by U.S. News & World Report’s inaugural nationwide poll. The high school rankings were based on school students’ performance on state tests, disadvantaged students’ performance, and the school’s success in providing the college-level coursework. La Cañada was among the top 100 schools to receive a gold medal.

U.S. News & World Report stated: “What if you could take a snapshot of each (school) and capture, at a particular moment, what kinds of students were enrolled there and the caliber of the education provided them? If you were to collect these individual snapshots into one huge national yearbook, which high school would be chosen as ‘Most Likely to Succeed,’ meaning that it set the best example of how to prepare students to achieve their postgraduation goals?

In the magazine’s first-ever ranking of America’s Best High Schools, its staff used a formula produced in collaboration with School Evaluation Services, a K-12 data research and analysis business run by Standard & Poor’s. “We put high schools in 40 states through a three-step analysis,” U.S. News & World Report said. “First, we measured how each school’s students performed on state tests, adjusting for student circumstances. We next evaluated how well each school’s disadvantaged students did. Finally, we looked at whether the school was successful in providing college-level coursework.”

The 100 schools that did the best in this analysis earned gold medals, with the next 405 schools being awarded silver medals.

La Cañada High School scored 58.7 under the “college readiness” category and 3.5 on “exams per test taker.” By comparison, San Marino High School, which has previously been ranked No. 1 in the state on API exams, was 82nd nationally with scores of 60.4 (college readiness) and 3.3 (exams per test taker).

“I was really pleased,” said LCHS Principal Dr. Damon Dragos. “This report looks at a lot of the things we look at, including passage rate of A.P. exams and graduation rate. It gives an accurate picture. It’s nice to see that they are seeing the same things as we are.

“I would like to credit our kids. Without them, this would be impossible. They are energetic and enthusiastic. Also, their parents are incredibly supportive and I have a great staff.

“It’s not too shabby being ranked 95th out of 18,000,” said Dragos, who is in his third year as LCHS principal.

Thomas Jefferson High School in Alexandria, Virginia, was ranked No. 1 in the poll, with scores of 100 (college readiness) and 6.52 (exams per test taker). The top-ranked school in California, Pacific Collegiate Charter in Santa Cruz, scored 100 and 4.9, respectively.

It seems like no houses that are for sale in my area are selling?  Are you selling anything?