Patty Manzi’s Tri-Valley Real Estate Blog

When you sell a home what stays and what goes?

I am asked this question quite often, and the answer on the surface is quite simple, however there are many exceptions. 

Real Property is anything that is permanently attached to the land or structure that you are purchasing; fence, structure, plants, trees, doors, anything built in and screwed or affixed to the walls like dishwasher, bookshelves, medicine cabinets, toilets, light fixtures, garage door opener, blinds, shutters, etc. 

Personal Property is anything that is not attached to the land or structure; furniture, lamps, washer/dryer, refrigerator, garden hoses, artwork, TV’s, stereos, etc.

However there are some grey areas and if the item in question falls into this category, it is best that the disposition of the item be determined in the listing agreement up front.  Refrigerators are personal property unless they are the sub-zero kind that are ‘built-in’ to the wall.  Microwaves are personal property if they are the kind that sit on the counter, if they are built into the cabinetry or above the stove, they are real property.  Technically drapery rods are real property because they are attached to the wall, but if the drapery itself is removable, it is personal property. Get the idea? 

The California Association of Realtors Residential Purchase Agreement (CAR form RPA) recently updated their contract and states specific items that are by default included and/or excluded from of the sale of a home.  If you see items on this list that you do not wish to include in your home sale, those items need to be part of the contract negotiation.  Once the contract is signed, it is too late to address the issue.  A good rule of thumb when listing your property for sale is to go around the home and mark items in question with tags that indicate whether an item is staying or not.  For example, if the antique crystal chandelier in the dining room is not part of the sale, hang a tag that says “DOES NOT STAY” or “NOT PART OF SALE”.  Make it clear upfront so the buyers know what to expect. 

Here’s what the CAR RPA form says:  

ITEMS INCLUDED IN SALE:  EXISITING electrical, mechanical, lighting, plumbing and heating fixtures, gas logs and grates, solar systems, built in appliances, window and door screens, awnings, shutters, window coverings, attached floor coverings, TV antennas, satellite dishes, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, mailbox, in-ground landscaping, trees/shrubs, water softeners, water purifiers, security systems/alarms, and (if checked) stove, refrigerators. 

ITEMS EXCLUDED FROM SALE: Unless otherwise indicated, audio and video componenets (such as flat screen TV’s and speakers) are exluded if any such items is not itself attached to the Proeprty, even if a bracket or other other mechanism attached to the compnent is attached to the Property.

As always, please consult with your favorite real estate professional for guidance.

There is now a new name for people who voluntarily default on their mortgages.  The ’selective defaulter’ is someone who has a stable income and can more than afford their mortgage payments & monthly expenses, but because their home has lost value and is worth less than is owed on the mortgage, the homeowner decides to default voluntarily and walk away from the home & mortgage. 

I can think of many other things in our lives that lose value and we as a society dont give it a second thought.  But when our home loses value we dump it and run?   This is very puzzling to me.

When we buy a new car it loses value the day we drive it off the lot because it is now a ‘used’ car, but we keep making our monthly payments and drive it until it falls apart.  We spend thousands of dollars on electronic equipment (computers, TV’s, PDA’s),  and rooms full of expensive furniture.  These things lose their value, but we dont stop paying for them and dump them on the local street corner because of it.  I have heard people complain that they couldn’t get $50 dollars for their coffee table at a garage sale so they kept it because it ‘was expensive’ when they first bought it, but they will turn around and walk away from their HOME because their equity has devalued.  Personal property almost never increases in value no matter how long we keep them, but our real property – our homes –  eventually do if we hold on to them long enough.  That’s why real estate is called an investment.  Just like the stock market, the prices go up and down.  If we stay in for the long-term, at some point we will see a return on our investment.

For some there is a belief the banks need to be responsible for the loss of value in their homes, and this is just not true.  Just like credit card companies and auto-loan companies are not responsible for the devaluation of our personal property and vehicles.  On the contrary, consumers have a responsibility to follow through on our financial commitments.

I do understand there are many people who are upside down on their mortgages that truly cannot afford their monthly payments due to a financial hardship like the loss of a job, or the death of a spouse.  In those cases walking away from one’s home and morgage is unavoidable and not really a choice.  For those people loan modification programs, HAMP programs, HAFA programs,  short selling the home, or ultimately foreclosure are all valid and viable choices.

Pleasanton Real Estate Update

 As of Today, July 3, 2010 there are 248 Active listings on the Multiple Listing Service (MLS) in Pleasanton.

 There are 166 Pending sales (61 of which are Pending Subject to Lender Approval as they are a Short Sale/Potential Short Sale). 

 From the period of June 1-June 30, there were 89 Sold transactions (escrow closed)) with an average time of 32 Days on Market (DOM) and an average sales price of $862,150 (lowest sold = $194,000 / highest sold = $2,800,000)

 The lowest priced home in Pleasanton is at 2419 Smoketree Common; it is a 1 Bedroom/1 Bathroom, approx. 648 sq.ft. Condo offered at $149,900 (DOM 142). 

 The highest priced home in Pleasanton is at 1515 Germano Way; it is a 6 Bedroom/6+ Bath, 6-car garage home, approx. 12,570 sq.ft., Single-Family residence offered at $7,499,999 (DOM 113).

 If you are looking for Pleasanton rental properties there are 10 rental properties on the MLS in Pleasanton. They range from a 680 sf, 1 bedroom, 1 bath near downtown for $969 month, to a 9,327 sq.ft, 6 bedroom, 6  bath home in Ruby Hill for $9,500 month.

 As a California licensed real estate Broker & Property Manager I am constantly researching the market and analyzing home prices so I can serve you with the latest and most accurate information. As always, I offer my services to you as your Home Research specialist.  For more information, contact me, or visit my website at:  www.PattyManzi.com

Bay Area bridge tolls are increasing today.  For most of the Bay Area bridges there is a $1 increase.  The exception to this rule is the Bay Bridge which has its own toll schedule.  Here are the changes:

Antioch, Dumbarton (Hwy84), Richmond-San Rafael, Hayward-San Mateo (Hwy 92), Carquinez, and Benecia bridge tolls are $5.00 at all times effective today.

The Bay Bridge will be $6.00 during the hours of 5am-10am & 3pm-7pm.  All other times on weekdays will remain at $4.00.  On weekends the toll will be $5.00 at all times of the day.

The most significant change is there is no more free carpooling across the bridge.  Tolls for anyone using the diamond/car pool lane on all bridges will be $2.50 and requires the use of a Fastrack Transponder. 

I’ve been hearing a lot lately about banks trying to evict tenants from a home after the bank has foreclosed on the property.  Offering them ‘cash for keys’ and REO agents using bullying tactics to force them out.  What we all need to remember is that Tenants do have rights and cannot be forced from the home. 

In May 2009, the federal government enacted the “Protecting Tenants at Foreclosure Act” giving tenants new protections, such as the right to stay in their homes for at least 90 days after receiving an eviction notice. While state and local laws also contain strong protections, unlawful evictions and harassment of tenants continue.

Tenants should know their rights under the law. These rights include:

- Tenants cannot be required to move out of their homes for at least 90 days following an eviction notice.
- Tenants can insist on staying until the end of their leases. The only exception occurs when the new owner of a single-family home wants to move in.
- Tenants can require banks and their agents to put all communication in writing.
- Tenants are not obligated to accept “cash for keys” money to move out sooner than the law prescribes.
- Harassment, such as improper entry into a person’s home, shutting off water and lights, or changing the locks without a court order is illegal.
- The above rights extend to tenants living in government-subsidized Section 8 housing, who may also have additional protections under state and local laws.
- If a city has a just cause for eviction law, a landlord must have a specific reason to evict a tenant, and foreclosure may not be recognized as a legitimate basis for eviction. Tenants should check local ordinances.

Sixteen cities in California have just cause for eviction ordinances: Berkeley, Beverly Hills, East Palo Alto, Glendale, Hayward, Los Angeles, Maywood, Oakland, Palm Springs, Richmond, Ridgecrest, San Diego, San Francisco, Santa Monica, Thousand Oaks, and West Hollywood.

For more information about fair housing laws in California, contact the Department of Fair Housing.