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Posts Tagged ‘sonali sethna’

Battle against secondhand smoke comes home…

Wednesday, April 3rd, 2013

California bill would ban smoking in multi-unit housing

Jill Sanders | Sacramento Bee | February 28, 2013 | link

Millions of Californians would not be able to smoke tobacco inside their own homes under new legislation that would raise the bar nationwide for fighting secondhand smoke.

No state ever has ventured into personal bedrooms and living rooms with its smoking restrictions, but California is going even further than that by targeting owner-occupied residences as well as rental units.

Specifically, the measure would prohibit lighting up a cigarette, cigar or pipe in condominiums, duplexes and apartment units.

The push would extend a lengthy list of places where smoking already is barred, including restaurants, workplaces, playgrounds, public buildings and cars containing young kids.

“Californians should be able to breathe clean air in their own homes,” said Assemblyman Marc Levine, a San Rafael Democrat who introduced the legislation, Assembly Bill 746.

Standalone homes would not be affected because Levine is taking aim at health hazards of secondhand smoke in residences that share walls, ceilings, floors or ventilation systems.

One-third of California’s residents live in multiunit housing, and secondhand smoke endangers everyone it touches, Levine said. “Whenever a neighbor lights up, everyone in the building smokes with them.”

Landlords already have authority to prohibit smoking in their rental units, through a law implemented last year, but Levine’s bill would impose a mandatory ban statewide.

The California Apartment Association has taken no position, but its officials question who would enforce AB 746, how, and what impact the bill would have on habitual smokers or people with disabilities.

“I’m not justifying the practice, but somebody in a wheelchair who smokes in the late evening, for example, is going to have to go in the dark to a place off-site,” spokeswoman Debra Carlton said.

Residents of a Sacramento public housing project, south of Broadway, have mixed feelings.

“You’re paying the rent, so you should be able to smoke a cigarette when you want to – have a coffee break, enjoy yourself,” said Palmer Beverly, a 27-year-old student.

“Are they going to knock on my door and say, ‘Are you smoking in here?’ ” he asked. “That would be awkward. That would be weird. I wouldn’t even open the door.”

But Debra Woldridge, 54, applauded the proposed smoking ban. Adults have the right to endanger their health if they want to, but “children shouldn’t have to suffer our consequences.”

Woldridge predicted that such a ban would be largely ignored. “People don’t abide by the rules they already have,” she said.

California has about 3.6 million smokers, whose habit can affect others by increasing risk of lung cancer, heart disease, stroke, chronic lung problems and other diseases, according to the California Department of Public Health.

Nationwide, cigarette smoking and exposure to secondhand smoke causes one of every five deaths, statistics by the Centers for Disease Control and Prevention show.

Levine’s goal is to eliminate secondhand smoke that can be harmful when drifting through windows, walls, crawl spaces, ventilation systems, light fixtures, plumbing, ductwork, baseboards and wiring gaps.

Violations would be an infraction, punishable by a fine of up to $100. Various cities and counties have passed similar measures.

AB 746 does not identify who would respond to complaints or write tickets.

“We hope this is self-enforcing, but it’s a code enforcement issue where it’s an infraction or a fine, (so) it’s really for local jurisdictions to figure out,” Levine said.

Brian Augusta, of the Western Center on Law and Poverty, said that targeting multifamily units disproportionately affects low-income people who can’t afford standalone homes.

“If smoking is an addiction, and it clearly is, are we telling people that they have to quit smoking – without support – or leave their homes?” he said.

But Kimberly Amazeen, of the American Lung Association in California, which is sponsoring AB 746, said that failure to pass the bill would have disproportionate impacts, too, on others with nowhere to turn.

“The real discrimination is against low-income families who can’t escape exposure to deadly secondhand smoke, and they can’t find another place to live because of their income or health,” she said.

Levine’s bill would permit outdoor smoking near apartments or condos, but only in a clearly marked area that is at least 20 feet from any housing unit and 100 feet from a playground, school or pool.

Landlords, property managers, building owners or homeowners associations would select the outdoor smoking area. Condominium neighbors collaboratively would choose a site.

“Neighbors usually work together to figure those things out,” Levine said.

The bill is specific to tobacco products and would not affect marijuana smoking.

Private property restrictions are nothing new: State law already bars homeowners from playing their radio loud enough to bother neighbors, for example, and logs can’t be lit in fireplaces on certain days, Levine said.

“There are many instances where we seek to protect public health and safety,” he said.

Staying steady…

Wednesday, March 27th, 2013

Freddie Says: Mortgage Rates Steady

RISMedia | March 12, 2013 | link

mortgage_rates_object_blocks [1]Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates largely holding steady from the previous week, remaining near their 65-year record lows, and continuing to provide support for the housing recovery.

Results showed that the 30-year fixed-rate mortgage (FRM) averaged 3.52 percent with an average 0.7 point for the week ending March 7, 2013, up from last week when it averaged 3.51 percent. Last year at this time, the 30-year FRM averaged 3.88 percent.

Additionally, the 15-year FRM this week averaged 2.76 percent with an average 0.7 point, the same as last week. A year ago at this time, the 15-year FRM averaged 3.13 percent.

The survey shows that the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.63 percent this week with an average 0.5 point, up from last week when it averaged 2.61 percent. A year ago, the 5-year ARM averaged 2.81 percent.

The 1-year Treasury-indexed ARM averaged 2.63 percent this week with an average 0.3 point, down from last week when it averaged 2.64 percent. At this time last year, the 1-year ARM averaged 2.73 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

“With gross domestic product growing only 0.1 percent in the fourth quarter of 2012, inflation remains at bay and consequently mortgage rates low,” says Frank Nothaft, vice president and chief economist, Freddie Mac. In fact, the price index of personal consumption expenditures rose only 0.1 percent in January which was below the market consensus forecast. Moreover, these low mortgage rates are helping to revive the housing market. For instance the CoreLogic® home price index rose 9.7 percent between January 2012 and 2013, marking the largest annual increase since April 2006.”

Keep an eye on your refi…

Friday, March 22nd, 2013

Avoid overcharges when refinancing

New tool aims to eliminate pricing gamesmanship when comparing loan options

Jack Guttentag | Inman News | Monday, March 4, 2013 | link

<a href="http://www.shutterstock.com/pic.mhtml?id=52945699" target="_blank">Percent symbol</a> image via Shutterstock.” width=”225″ /><a href=Percent symbol image via Shutterstock.

The process of deciding whether to refinance a mortgage in order to lower costs involves four steps:

  • Step one: Select the preferred type of new mortgage.
  • Step two: Find the best available price on that mortgage.
  • Step three: Determine whether the cost of the new mortgage will be lower than the cost of retaining the current mortgage.
  • Step four: Find a way to prevent being overcharged after committing to the transaction.

Because borrowers navigating these steps must access multiple sources of information, many of which are unreliable if not biased, it is hardly surprising that many bad decisions are made.

The most important of the bad decisions are those not to refinance by many who would profit from doing so. I have written about this several times, most recently in “4 refinance myths debunked.” Among those who do refinance, the most common mistakes are in selecting the wrong type of new mortgage and then overpaying for it.

Common approaches to step one: Borrowers usually select the type of new mortgage they prefer from among the multiple versions of fixed- and adjustable-rate products that are available, before the refinance process begins; for example, they decide they want to replace their current 30-year fixed-rate mortgage (FRM) with another 30-year FRM. This means that their selection ignores price relationships between the different mortgage types. Sometimes this approach makes sense, but all too often it doesn’t.

Common approaches to step two: Borrowers price the new mortgage in a variety of ways. Some use prices reported by the media, which are not adjusted for the specifics of individual transactions, and will therefore be correct only by accident. Others use quotes from loan officers or mortgage brokers, which may also be incomplete and in many cases have a downward bias designed to induce shoppers to become clients.

Borrowers who price their transaction online increase their chances of getting an accurate price, but not by much because few sites ask for the detailed information required to price accurately. (More shoppers complete short questionnaires than long ones.) The few sites that price accurately are multi-lender sites: See “How effectively can you shop at multi-lender websites?

Common approaches to step three: Comparing the cost of the current mortgage with that of the new mortgage is not difficult when the old mortgage rate is 6 percent and the new rate about 3 percent, but when the spread is much smaller, as it will be for those who have already refinanced at least once, the challenge is greater.

Some borrowers concoct their own schemes for answering this question, which (based on the ones I see) are almost certain to be wrong. Using an online calculator raises the probability of getting it right to roughly 50 percent. This is based on my recent investigation of the first 10 refinance calculators that came up on Google, five of which were seriously flawed. See “Best real estate refi calculators.”

Common approaches to step four: Few borrowers know how to protect themselves against overcharges after they have committed to the transaction. One common approach is to place oneself in the hands of a recommended loan officer or mortgage broker, in the hope of fair treatment. Sometimes this works, often it doesn’t.

Those more cynical try to protect themselves by price shopping among multiple loan providers. This works even less often, because no loan provider can be held to a price quote, and the one with the lowest quote is usually the biggest liar.

The borrowers who protect themselves the best shop the few multi-lender websites that post prices received directly from lenders, without intermediation by loan officers.

What has been conspicuously missing in the marketplace has been one reliable information source supporting all four steps in the refinance process, but that is no longer the case. Prospective refinance borrowers can now find this facility on my site. This is how it works:

Prospective borrowers input the information we need to calculate the costs of each type of new mortgage over the period they expect to have the mortgage. This allows them to select the type of new mortgage that will minimize their cost (step one).

The prices used in calculating the costs of each type of mortgage are the lowest of those we receive from the certified lenders who post their prices with us (step two).

Prospective borrowers also input the information we need to calculate the costs of retaining their existing mortgage. This allows borrowers to compare the costs of the different new mortgages with the cost of retaining the old one (step three).

Our lenders post their prices directly with us, without loan officer intermediation. This eliminates the potential for pricing gamesmanship by intermediaries after borrowers have committed themselves (step four).

In sum, borrowers effectively confront all four refinance steps at the same time and at the same place. To try it, go to Single Integrated Refinance Process

Time to overhaul?

Thursday, March 21st, 2013

Is it time to move or improve?

4 factors to consider before committing to a large renovation project

Dian Hymer | Inman News | Monday, March 4, 2013 | link

<a href="http://www.shutterstock.com/pic.mhtml?id=96631414" target="_blank">Dining room addition</a> image via Shutterstock.” width=”225″ /><a href=Dining room addition image via Shutterstock.

At some point, you may find that your home doesn’t work well for you anymore. You may need more space or a reconfiguration of the floor plan. The decision to remodel or move can be relatively easy in some cases and difficult in others.

In one example, homeowners in Berkeley, Calif., needed more space for their growing family. They looked at more expensive houses to buy instead of facing the hassle of renovating. They discovered that they couldn’t afford to buy a larger home in a prime location. But they could afford to add enough space to their home to make it work for them. Luckily, their home was already in their preferred location.

Since they owned one of the smaller homes in the neighborhood, they could afford to invest in an expansion without overimproving for the neighborhood. They intended to stay in the home indefinitely.

Another couple with children, living in an Oakland, Calif., neighborhood they liked, talked to an architect about redesigning the space in their home to make it more user-friendly for their family. The plan didn’t give them exactly what they wanted. However, it would be an improvement over the existing floor plan, but at great expense.

The plan didn’t include an expansion of the living space, so the owners would have ended up with a very expensive home for its size. It would have been overimproved for the neighborhood. They wouldn’t have recouped the investment when they sold unless the property appreciated enormously over a decade or so.

HOUSE HUNTING TIP: Before you make a commitment to a large renovation, take a look at homes for sale in areas where you’d like to live that offer the space and amenities you want or need. Depending on the projected cost of the renovation, it may be less expensive and easier in the long run to sell your current home and buy one that better suits your current lifestyle.

Given the limited amount of homes for sale in many areas around the country, this sort of a move may require an interim move to a rental. Offers made contingent on the sale of another home won’t fly in a high-demand, low-inventory neighborhood where you have to compete with other buyers.

An interim move would be no more inconvenient than staying in your house while it’s being renovated, although it would be less expensive. A huge renovation, like the one described above, would have required the family to more out for six to 12 months. This means paying the mortgage while you pay for the renovation and for the interim rental.

It’s not a sin to treat yourself to a costly renovation as long as you understand that what you’re paying for is a lifestyle you desire, and you may not be able to recoup the costs when you sell.

Smaller remodel projects to make your home more enjoyable, like a new master bathroom or eat-in kitchen, could be a lot less expensive and disruptive than moving. And it would make your home more marketable when you do move.

Just make sure to do tasteful upgrades that will have a broad-based appeal. Ask your real estate agent to give you input. You are doing the work for yourself, but you don’t want your home to be one that buyers wish you hadn’t touched. Bad renovations don’t increase the sale price.

Make sure that your contractor takes out building permits for work that requires it. Lenders’ appraisers often don’t give credit for an addition as livable square feet if the work was done without a permit.

THE CLOSING: Don’t do a complete bathroom or kitchen remodel if you’re planning to sell soon. You’ll improve the net proceeds from the sale if you restrict your fix-up work to cosmetic improvements.

To disclose or not to disclose…

Wednesday, March 20th, 2013

What do home sellers need to disclose?

Not all material defects are deal-breakers

Dian Hymer | Inman News | Monday, February 25, 2013 | link

<a href="http://www.shutterstock.com/pic.mhtml?id=77980582" target="_blank">Disclosure form</a> image via Shutterstock.” width=”225″ /><a href=Disclosure form image via Shutterstock.

Some sellers worry that if they disclose a defect in their property, buyers won’t want to buy it. This sometimes happens. But, in general, buyers value a seller’s upfront candor because it allows them to make an educated decision about an expensive transaction. Every house has defects, even new ones.

Disclosure laws that dictate what a seller needs to disclose vary from one state to the next. California was at the forefront of consumer protection regarding homebuying beginning in 1987 when sellers of one- to four-unit residential buildings were required to complete a real estate transfer disclosure form.

Some sellers are exempt from completing this form, like a trustee who never occupied the property and has limited or no information about the property’s condition. But all home sellers in California are required to disclose material facts, even if they are exempt from completing the mandated form.

A material fact is one that would affect a buyer’s decision to buy a property or the price buyers would be willing to pay for it. Before it became the seller’s duty to disclose known material facts, caveat emptor, or buyer beware, was the rule of the day.

Not all states have written seller disclosure requirements. However, more than 30 states followed course after California made seller disclosure law. Generally, the trend nationally is toward disclosure of material facts.

What is and isn’t a material fact is not always black and white. There can be an element of subjectivity. For instance, years ago, a seller of a home in the trendy Rockridge neighborhood of Oakland, Calif., asked if he needed to disclose that someone had been raped in the house when the previous owners owned it.

The current seller was an attorney, although not specializing in real estate. He was concerned that he would be held to a higher standard than someone who didn’t have legal expertise if he didn’t disclose the information and was later sued by the buyer.

There were multiple offers on the property. One buyer withdrew when she learned that a rape had occurred at the house. She would be living by herself and was already concerned that the house didn’t have an attached garage, and she would often return home from work late at night.

In this situation, the seller’s forthright disclosure of an unpleasant event that occurred at the house caused a buyer to decide against buying it. However, it didn’t keep the house from selling. Other buyers were not at all deterred by the disclosure, made an offer and the sale closed.

This is an example of a subjective material fact. It might not be material to all buyers, but it could be to some. In comparison, most buyers would find a roof that leaks like a sieve a material fact that would at least impact the price they’d be willing to pay.

HOUSE HUNTING TIP: Seek the advice of your real estate agent or attorney if you’re unsure about what you should or are required to disclose. Keep in mind that most real estate agents are not attorneys and can’t give legal advice. It’s worth the cost to get good legal advice about accurate disclosures. Intentionally withholding a material fact could get you into a legal action with the buyers after closing.

A general rule of thumb that might not apply to every situation is: If you’re asking yourself if you should disclose something, it’s probably material to someone, so disclose it.

THE CLOSING: Your goal in selling your home should be to do so as risk-free as possible. A post-closing lawsuit or mediation could be costly and time consuming.

Sonali’s Philosophy

I approach my real estate practice with a commitment to provide superior service. I have a passion for my chosen career and look forward to being your tenacious advocate for all your real estate needs.

Be assured that when you hire me, I will do an exceptional job for you. You can count on my honesty and trustworthiness, which for me is non-negotiable.

I look forward to working with you.

925-525-2569

sonali@sonalisells.com

Client Testimonials

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