Bristol Restoration

Massive Heart Attack!

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Mon, 08 Aug 2011 00:43:32 -0700

A guy I knew from the mortgage industry died last night... from a massive heart attack. We got the news this morning via text message. Both my wife and I considered "Bob", (not his real name), a good friend. My wife had worked with both he and his wife at a major wholesale mortgage bank back when there was still mortgage banks, and had become close. In fact we just attended his wedding a few years back. July 7th, 2007. They chose to be married that day for the lucky numbers; "triple sevens", surely luck would be on his side, and on that day he married his beautiful wife. Today he not only leaves his bride, he leaves behind a three year old son.

Someone dying from a massive heart attack is nothing new, people across America die from them every day, so why blog about it now? Well for starters, he was only 45. The other reason? He's like me..and you, man or woman...it doesn't make a difference, in the real estate industry. It has made me think long and hard about what are the real important things in my life.

Like so many of us in the real estate industry, we are working two to three times as hard just to maintain the same financial pace we were on just a few years ago. "Bob" was no different. Today, it is not unusual for me to work from 5:00 AM till 8:00 PM six days per week. My wife Gigi does the same, and then pulls double duty raising our eleven year old daughter. She's our last and we're doing our best to provide her a balanced life as we both work our tails off to get ahead. No doubt, many of you reading this are doing exactly the same thing. Life is harder today. There was no bail-out for our industry. Work harder or fall victim to the economy like so many have done. Not me!

Ever since the "crash", most of us still making a full time living in the real estate industry are working longer hours and far harder than ever before to make ends meet. Twice as many hours as before, six, maybe seven days per week. We're taking less time off and fewer vacations. Even if we take a vacation at all, it's a working vacation. We spend as much time on our cell phones as we do enjoying the sights. We work weekends, work during dinner, work during soccer practice, and their games, Saturday nights out, and Sunday during the sermon or with the kids at the beach. We leave the office every night and spend another three to four hours in front of the computer returning emails or writing blogs in efforts to expand our coverage, in the efforts just to keep afloat. Sound familiar?

Well, that's what happened to "Bob". I know him well enough to know this. Yes he was a "type-A" personality, like so many of us in the "industry". Yes he had a propensity for heart disease......and yes, he was like many of us, slightly overweight or malnourished from the daily regiment we have become accustomed to, including working through lunch or eating who-knows-what on the fly. "No time for the gym, I gotta get to the office early and get a jump on the stuff I didn't have time to complete yesterday."

So...

a guy just like me, twenty pounds heavier than his college days fighting weight, working his tail off to provide a good life for his wife and child, has a massive heart attack...and dies, last night at 3:00 AM. He didn't even get the chance to say goodbye to his beautiful new bride. He didn't have a chance to hold his son in his arms and tell him he loves him one more time. He didn't have a chance to ask for a second chance, rethink his plan, start taking more walks, eat smarter, maybe spend a little more time at home with the people he was working so hard for. "Bob's" heart went into overdrive from stress and the life he had been living for the past four years and just quit without giving him the chance to do anything else... no more nothing's! Last night a friend of mine died. So tonight, I will hold my wife closely and tell her how much I love her. I will hug my daughter and tell her the same. Tomorrow, I will rethink my priorities, and spend a little more time with the ones I love. I will call my family and friends more often. I will take a walk, and continue to take a walk every day. I will bring my lunch to the office. It will be healthier than the ones I buy. I will drink more water and less coffee, yes, I'm a "type-A" too. I won't sit at my desk for twelve hours at a time working through the night. And...when soccer season starts for my daughter, I'll be there cheering and shouting from the sidelines every single game. (I'm still a" type-A", and this year she going to play club). That's another stress test waiting to come...

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

SCIENCE 101 FOR REALTORS- CLASS IS IN SESSION

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Wed, 22 Sep 2010 12:52:35 -0700

Today's lesson- Rust, or in the case of real estate, rusty pipes.

Rust is scientifically called oxidation, which occurs when oxygen comes in long-term contact with certain metals. Over time, the oxygen combines with the metal at an atomic level, forming a new compound called an oxide and weakening the bonds of the metal itself. If the base metal is iron or steel, the resulting rust is properly called iron oxide. Rusted aluminum would be called aluminum oxide, copper forms copper oxide and so on.

The main catalyst for the rusting process is dihydrogen oxide, (Formed from an extremely energetic chemical reaction between its constituent elements), but we know it better as water mixed with air or oxygen. Iron or steel structures and pipes may appear solid, but water molecules can easily penetrate the microscopic pits and cracks in any exposed metal. The hydrogen atoms present in water can combine with other elements to form acids, which will eventually cause more metal to be exposed. If sodium is present, as is the case with saltwater, corrosion will likely occur more quickly. Meanwhile, the oxygen atoms combine with metallic atoms to form the destructive oxide compound. As the atoms combine they weaken the metal, making the structure brittle and crumbly.

Galvanized pipes

Galvanized pipes are made of iron with a coating up of zinc. Galvanizing involves the application of molten zinc to pre-formed steel pipes to provide a corrosion resistant coating. However many galvanized pipes in old buildings were manufactured using Zinc that contained lead. Galvanized pipes are still common in older homes and many commercial buildings. Galvanized pipes will corrode over time, as indicated by the following corrosion symptoms:

High levels of zinc or iron in tap water

A "metallic" taste in the water

Poor water flow due to blockage from mineral buildup

Discolored water (brown, red or yellow water)

Slight discoloration of the exterior of the grey galvanized pipe

It was not until 1986 that the Wheatland Tube Company became the first galvanized pipe manufacturer to be certified to ANSI/NSF Standard 61 for its hot dip galvanized pipe. 100% of all residences built before 1986 have or had galvanized pipes installed from the curb throughout the structure. Over 70% of homes in Southern California were built with galvanized pipes up until 1995. Over 60% of homes that were "copper re-piped" still have a percentage of galvanized pipes left due to homeowner installations and shoddy contractors replacing only what the owner could see. This leaves a large percentage of the properties you will eventually sell with galvanized pipes in the home.

So now you know a little about rust. So what you say. Why do I need to know this as a Realtor? Listen Grasshopper and you will soon learn.

Today, there are many homes on the market that still have galvanized pipes. With luck, most will survive for a few more years. If the property is continually occupied, the signs of failure are quickly noticed and can be remedied before a major disaster. In today's foreclosure market, the utilities are turned off on most if not all bank owned properties usually by the former owner or tenant. That includes the water which you quickly determine as you drive by the now dead vegetation, the usual tell-tale sign of a distressed property. The water is generally off for a few months, sometimes as much as a year or more. This in itself is a recipe for a disaster. A science experiment in the making.

"GALVANIZED PIPE FOUND IN TYPICAL RESIDENTIAL PROPERTY- LOOKS OK ON THE OUTSIDE"

You have just learned how water mixed with oxygen creates oxidation or "rust" over time in galvanized pipes. There is a measurable amount of oxygen present in a pressurized residential water system, H₂O, meaning two parts hydrogen, one part oxygen, creating that slow process of oxidation or rusting of the interior of the pipes. This has been going on since the first amount of water was introduced through the pressurized water system of the property in question. Now, the water is turned off, effectively introducing one hundred times the oxygen molecules to an already rusting pipe interior. Water is still present for a few months until it finally evaporates and dries completely. Sometimes it never will, speeding up the oxidation (rusting) process tenfold. Science taking place before your very eyes, but you can't see it! The rust builds within the pipe and soon corrodes right through the side of the pipes creating "pinholes" and eventually the pressurized system fails completely. Still you know nothing. Why? So much oxidation has built up within the pipes that they have now coated as much as 60% of the pipe interior with a "sandstone like" consistency of iron oxide, common rust plugging the recently created pinholes.

"LOOKS CAN BE DECEIVING"

Disaster averted, right? Wrong young grasshopper! As soon as the water is turned on the system is pressurized and the oxidation begins anew. So what? Well the moment water is coursing through the pipes providing our daily dose of wet stuff, the iron oxide, "rust" wears off quickly, ( in as little as a few days, or over a month or two), and disaster strikes. The pinholes are no longer pinholes but nice pressurized exits for the water to leak into the walls and cause untold damage to your recent buyers "new" home....and where do you thing all that nice gritty rust goes? How about into the new water washing machine, and dishwasher, completely ruining them. The water heater? Well if you didn't have it replaced, it's lined with a steel tank. Empty the water and you have created the exact same scenario. It worked fine for a few days but will quickly begin to leak. Failure is generally within thirty days after the reintroduction of water pressure. If you replaced the unit due to a previous failure, guaranteed premature failure due to 10-20 pounds of iron oxide sediment filling the tank with in the first week.

Think this doesn't happen too much? Unfortunately you're quite wrong. Water system failures happen on eight out of ten foreclosure properties even when the fresh water pipes are copper, (the copper lines don't fail but the water heater always fails, sometimes catastrophically causing thousands in "liquid-dated" damages). If the property has any galvanized pipes, you can be assured of a disaster waiting to happen.

And that grasshoppers; is you science lesson for the day. Test on Friday. Now go out and prosper.

Next week: That pesky "discoloration" under the kitchen sinks otherwise known as mold.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Are galvanized pipes the new "Titanic" of the real estate industry?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 21 Sep 2010 19:21:07 -0700

The ticking time bomb of old rusty galvanized pipes is wrecking havoc on home-buyers and their agents. The fault may lay with neglected foreclosure and short-sale properties but the ramifications are far reaching for the new owners and the agents who specialize in these types of properties. With foreclosures and short-sales making up over 40% of the total market the problem may be widespread.

Bob and Susan, (not their real names), were two of the lucky ones. They managed to keep their jobs in this recent recession. Bob, a police officer and Susan an LVN, had also managed to stay clear of the financial meltdown and had now saved enough money to buy their first home. Kids were first on the list after the young couple moved in so buying a home within their means was high on the list. A place to park the boat was a bonus.

Bob and Susan had seen all the foreclosures and short-sale properties available and decided they could stretch their purchasing dollar further if they could "land" a good deal. After researching properties on line, Bob and Susan settled on a reliable Realtor they had found and began looking at properties that fit their needs. Four bedroom two bath Rancher, with room to add on in the future. A pool would be icing on the cake. Their Realtor had told them that multiple offers were being submitted on almost every good property left, so; "be prepared to act quickly or you could lose out on the home of your dreams. What you see on the market today may be gone tomorrow!"

They began looking at properties their Realtor had selected to fit within their "needs and wants list" after deciding on a price range they could afford. They had pre-qualified for an FHA loan with just enough money down and in reserve to cover closing costs and spruce up the place. Bob wanted as big as they could afford. Susan only wanted a clean kitchen and bathrooms with just enough room to raise two kids and a dog. With the "act quickly or lose out" fresh on their mind Bob and Susan quickly settled on a four bedroom, two bath with two stories and an RV parking space. The pool would have to wait, besides, per their Realtor, "this was a very good deal".

Escrow was the standard thirty days plus an additional "two" to allow the seller from the short-sale they had settled on, to move out on a weekend. During the approval process, it was noted by the appraiser that there were a few items that did not comply with FHA lending guidelines. The home inspector recommended by their Realtor found some additional items that needed to be repaired. With no money to pay for the repairs by the seller, Bob and Susan opted to pay for the minimal repairs to ensure their new house would pass and FHA approval. It did! They'd make the other repairs when they had some spare cash. One thing immediately repaired was the water heater. It had been leaking and showed signs of age. Hot showers were absolutely necessary, and the FHA loan required it to be working.

Bob took a week off his night shift to complete the move into their new home. He also spent a few days painting and cleaning while Susan unpacked boxes and shopped for all the necessities the house was missing.

Two months passed before bob noticed the "discoloration" under the bathroom sink getting worse. What was even more annoying was the new stain in the closet behind his uniforms. Everything was beginning to smell slightly musty and stink. Susan kindly reminded Bob to not hang up his pressed shirts for a second wearing, especially in the summer. She was kidding; she had seen the stain in the closet too.

BURIED IN THE WALL DIDN'T LOOK THAT BAD WHAT WE FOUND ON THE INSIDE

The previous owner had disclosed that he had just repaired the kitchen drain to "fix" the leak before he listed the property. Everything seemed fine and with a bit of stain hiding paint, everything looked fine to the home inspector as well as both Realtors. Nothing out of the "norm" was disclosed. Besides this was a short-sale and the previous owner was cash strapped and could not afford any repairs. The inspector "did" mention in his report that there was galvanized plumbing, but the system held pressure and there were no visible leaks.

When Bob and Susan finally discovered the stain in the closet, water had been leaking under the carpet and through the second floor master bedroom closet onto the ceiling in the family room, had leaked into the new ceiling fan Bob had paid top dollar for, and was even seeping into the wood of the bathroom cabinet and dissolving the glue in the particle board and wood veneer of the vanity. This was only the areas they actually discovered after Bob lifted the carpet to inspect the "discoloration" in the closet. The real damage would not be discovered until a few weeks later when the contractor they hired , (me), opened up a few walls and the ceiling to determine the cause of the leaks.

The Final Outcome:

Bob and Susan ended up forking out over $23,000 to completely copper re-pipe and repair the damage caused by water leaks. The re-pipe cost just over $5,000. The additional cost was for the mold and water damaged caused by a complete failure of the galvanized fresh water piping originally installed in the house. Their good deal turned out to be not so good. The two agents involved in the transaction; although not responsible in any way for the failure aren't getting favorable recommendations by a now very vocal and quite dissatisfied "former" client.

Conclusion:

Regardless of whose fault, if anyone at all, is not in question here. The reputation and potential loss of future business by two experienced Realtors have been compromised. In today's increasingly competitive real estate market to attract new clients, going above and beyond standard disclosure rules should be considered, especially when it comes to REO's and Short-sales. Buyers today won't be trading up or refinancing like the days of old. So, the house they buy today will most likely be the home they live in for quite a few years to come. That "good deal" as good as it seems sometimes can prove to be not in the best interest of your clients. The right deal on the other hand is a deal that has been scrutinized to ensure it is really a good deal. Anything you can provide to ensure your client is making the right decision should be considered. Your name is all over it! Scrutinize it as if you were buying the property for yourself. If you don't know about repairs or problems, get a professional to walk the property with you- ALONE, so you'll know the potential problems. From there, you decide how to present the outcome to your buyers. It's the least you can do for your clients. Providing simple "maintenance and repair schedules" and what to look for in the future, provided by your trusted "construction professional" is also a valuable asset to your success. At very least, pay for the first year home warranty for your clients, especially if there is some question to life expectancy of items needing expensive repairs, and when it's time to renew the warranty, you have a reason to call them and ask for some referrals. Fianlly, if you don't have a licensed and qualified construction professional on your team- get one.

...Or you could be like Bob and Susan's Realtor who spends his days doing damage control just to stay afloat.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

We The People...

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Fri, 17 Sep 2010 12:41:37 -0700

Today September 17th is Constitution day. The celebration of that little piece of paper we base our way of life on. Since most of us may have forgotten some of the more important amendments, I put them here so you might pause and reflect on the freedoms and liberties that allow us all to prosper and thrive in the industry we love or love to hate- The Real Estate market. God Bless America! Long live Capitalism!

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America".

First Amendment - Freedom of Religion, Press, Expression. Ratified 12/15/1791.

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Second Amendment - Right to Bear Arms. Ratified 12/15/1791.

"A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed".

Fourth Amendment - Search and Seizure. Ratified 12/15/1791.

"The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized".

Tenth Amendment - Powers of the States and People. Ratified 12/15/1791.

"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people".

Fourteenth Amendment - Citizenship Rights. Ratified 7/9/1868.

"All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws".

Fifteenth Amendment - Race No Bar to Vote. Ratified 2/3/1870.

" The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color, or previous condition of servitude."

Nineteenth Amendment - Women's Suffrage. Ratified 8/18/1920.

"The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of sex."

Twenty fourth Amendment - Poll Tax Barred. Ratified 1/23/1964.

"The right of citizens of the United States to vote in any primary or other election for President or Vice President, for electors for President or Vice President, or for Senator or Representative in Congress, shall not be denied or abridged by the United States or any State by reason of failure to pay any poll tax or other tax."

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Are FHA property guidelines as clear as mud in your town as they are in Los Angeles?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 17 Aug 2010 15:43:30 -0700

This house might need be worth the fight... 15 days into escrow and you found out the house does not meet FHA conditions. Sound familiar, well, it is in these neck our the woods of Southern California.

It seems more than ever we are getting agents and homeowners in the Los Angeles area coming to us with FHA compliance concerns over the houses they are listing and selling. The sellers have made all known "repairs" in the house, upgrades galore, and even had their "handyman" copper re-pipe. All good for FHA? Not quite. The buyers are qualified for FHA financing, but the homes they are writing offers are are not compliance to to FHA guidelines, often finding out well into escrow, despite what they "feel" will pass FHA. Of the 7,000 houses we serviced in the last 4 years, 60% do not meet FHA guidelines. Fortunately, 90% of the time the solution is an easy and a quick fix. The other 10% of the time, there is still a solution, but the cost and time in repair might not be worth the effort to bring the house into compliance.

The real problem is not that houses on the market do not meet FHA guidelines. They can be fixed, escrows can close, and everyone walks away happy with a closed transaction. Here is the real problem. Agents and homeowners do not know the solution when faced with the problem of houses not qualifying for FHA. The problem is "not knowing"; Not knowing what is considered non compliant with FHA property guidelines, not knowing the costs to repair, not knowing financing options for repairs such as 203K, 203K streamline, and Title-1 loans. Not knowing THE PRODUCT that is being sold and how to effectively market THE PRODUCT.

Unfortunately, it does not get any clearer when you are told that FHA comliance is at the discretion of the FHA inspector. Buyers want to know what is approved for them to buy, what is not, and what it is going to take get them approved for what they want without delays. FHA approved buyers do not want to find out 20 days into escrow if the house passes FHA or not.

Solution: Agents can become more educated about the product being sold and how to effectively market it for sale.

How would you answer these questions if you were at a house with a client....

Are appliances required for FHA financing?

What if the dishwasher does not work?

How many layers of roof can exist before we need an entire tear off?

We have cold water, but no hot water. Is that okay?

A/C runs perfect. No heater, but since we live in Los Angeles and really do not need one, is that okay?

We drained the pool for safety precautions. Is that okay?

Two cracked windows, none broken. Will this pass FHA?

Missing screens, are we okay with FHA guidelines?

We are fortunate enough to have some great agents that include us on their team. We tell them regarding FHA approval that it is always subject to the appraiser, BUT we train them to spot potential issues before the appraiser is ever called. They use this information to prepare their offers and negotiate throughout the transaction. Bottom line, they represent the best interest of their clients because they understand that the product they sell is a HOUSE and they have taken the time to understand how to market and sell the product relevant to the current conditions and needs of the clients.

If you have questions on FHA guidelines, here are some helpful links;

PassFHA.com- contact with immediate questions, repair requests.

HUD Property Guidelines- Detailed list straight from HUD

Are you in the Los Angeles area and want help with with minimum FHA compliance repairs. Call us 866.775.8169!

100% guarantee that if we do the repairs, it will pass FHA... for less than you might think!

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

OUCH! This new lead based paint law has some serious bite, but is there a way around it for Realtors?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 25 May 2010 16:07:20 -0700

There's a new law the real estate industry needs to be aware of, and it has a HUGE bite to it! $32,500 fines (and that's even for the first offense), licenses revoked and suspended, lawsuits, neighborhood watchdogs on the prowl, OUCH! We are not talking about slaps on the wrist. You think the EPA is serious when they passed the new law concerning renovations on pre-1978 properties which took effect on April 22, 2010? How does this affect the real estate industry including Realtors, buyers, sellers, investors, homeowners, contractors, etc.?

Well, in case you have not heard, the EPA is now enforcing a new law concerning the renovation, repair, and disturbance of properties with potential lead based paint (pre-1978 houses). There are specifics to the law you can find on the EPA site, but basically, the law requires that anyone compensated for repair or renovation on pre-1978 houses needs to be a certified lead based paint renovator. Bristol Restoration went through the certification courses earlier this month. We did not think twice about getting the certification. It's a $32,500 fine if we are hired to work on a pre-1978 house and are not certified. Not only do we avoid the fine, but in reality, the procedures now required to renovate lead based paint surfaces correctly are in the best interest of the public.

Why pass the law? Apparently, the EPA feels lead is extremely harmful and wants to assure public safety in this matter. You think $32,500 fine is a random number? The EPA spun the Price is Right wheel and it landed on $32,500? The EPA is serious about this one. The EPA backs up their concern in detail on their website about the health effects of lead. Read the rest of this article, then check out the links below if you want more background on lead.

Facts about lead

Health effects of lead

Where lead is found

Where lead is likely to be a hazard

How to check your family and home for lead

What you can do to protect your family

Are you planning to buy or rent a home built before 1978?

Renovating, repairing or painting a home, child care facility or school with lead-based paint

Other EPA pamphlets on lead

Real estate "professionals" are already finding ways around the law. I actually heard a Broker at a meeting tell her agents to inform their clients that they are free from liability if they are not "compensating" anyone for the work. In other words, "pay someone under the table" or "do it yourself" (head turned to the side). Ummm, excuse me. Really? Keep in mind, we are talking about renovation (windows, structural repairs, etc). What percentage of homeowners are qualified to do their own work? Also, the homeowner is STILL liable and responsible to prove that the house is free from lead with an acceptable test. How easy is it to pass if procedures are not followed precisely? Why would a licensed contractor, a fully qualified construction specialist, be mandated by law to attend classes and training on how to properly repair lead based paint surfaces, but a homeowner who's training consists of "move that truck" and "design on a dime" be trusted to provide a safe working environment and acceptable workmanship that meets all safety and code guidelines?

Why are people trying to find ways around the law? The same reason why people would hire an unlicensed handyman. Money. It costs more to renovate under the strict guidelines set forth by the EPA in regards to lead based paint. The lead area has to be contained under very specific procedures and materials have to be disposed of properly. It simply costs more, and there is really no way around that.... unless, you "hire" someone not certified to do the work and they do the repair not according to proper procedures.

Is there a legal way around the necessity in hiring a certified renovator? Yes, perform a test on your house and check levels of lead prior to the renovation. Areas where you will most likely find lead will be around windows and doors. If you don't have elevated levels, then that information can be disclosed to the buyers and might help in marketing the house. BUT, if the house does have elevated levels, full disclosure is still required and proper renovation procedures (if performed) must be adhered to.

We should all do our job by doing the right thing when having work performed on homes with lead based paint. There are serious ramifications for skirting the law, both ethically and legally.

Want more info: Here are some good videos for Realtors put together by the EPA.

If you have any questions about lead based paint renovations, call us directly at 866.755.8169 or visit our site at bristolrestoration.com. Will be happy to talk with you!

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

You might want to know about FHA Property Conditions before writing an offer or taking a listing.

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 25 May 2010 13:30:08 -0700

DON'T BE FOOLED. Just because your buyer is FHA qualified does not mean your house is. Just because the MLS states, "MAY qualify for FHA financing" does not mean the house actually will either! If you are a real estate professional, you would know "FHA qualified" does not just refer to the buyer but also the house on the market.

What is the significance in knowing FHA propertyconditions as a real estate professional? Well, imagine dragging your client around from listing to listing writing multiple offers. You finally get one accepted, but everything comes to a screeching halt when you find out the house does not qualify for FHA because the inspector found 3 layers of roof and repairs that totaled over $9,000 in order for the roof to be FHA compliant. The seller did not concede on repairs and your buyer could not close. So now your buyer asked you why you did not consider this when writing an offer. You respond with, "I am not inspector." True, your not an inspector, but you are a professional SALES agent that is selling a PRODUCT. Know the product, know the customer, know the business.

There are very basic FHA property conditions that a real estate professional should check BEFORE taking a listing AND SHOWING HOMES. These conditions determine how you market the home, what to fix in the house, how and if to write the offer, etc. You don't want to get your FHA buyer's hopes up on a house that will only qualify for FHA when pigs MAY grow wings, nor do you want to limit your sellers marketability with pending FHA conditions that could easily be corrected.

Here is a five minute walk through you can take on any property (This is not a comprehensive list, this is to give you a basic metal list of what to look for. PASS FHA GUIDELINES):

OUTSIDE

ROOF: Roof cert needed if missing shingles or looks worn. TIP: Check for 3 layers or more. Any repair done on 3 layers or more, expect to pay $$.

POOL: Make sure it is clean, full, and equipment working.

WINDOWS: No broken windows. Cracked OK.

PAINT: No chipping or barewood (watch out for pre-1978 houses; new law states you must use certified lead based pant renovator if hiring contractor. This means more $$ for repairs. Good videos on lead based paint and how it affects Realtors straight from the EPA site.

TRASH and DEBRIS: must be removed from premises, inlcuding hazardous waste (outside and inside)

WALLS: no holes in firewall (wall between garage and house).

INSIDE

PLUMBING: Adequate water flow; must have hot water.

ELECTRICAL: look for GFCI plugs (must be working, don't be fooled by just seeing GFCI switches). You should not see any exposed wiring.

WATER HEATER: Strapped properly, PRV valve installed correctly, proper ventilation.

SMOKE ALARMS: Look on ceilings in bedrooms and hallways near doorways.

UTILITIES: must be on and working (gas, electrical, water)

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

NEW TREND: Ugly Pics DO Sell Houses.

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 23 Mar 2010 16:32:50 -0700

Pool smells like a septic tank! Lawn is horrible! Bring all buyers!

Believe it or not, this type of marketing just might be the newest trend in marketing.

I am a member of 5 Realtors boards throughout the Los Angeles area from Lancaster to Hollywood. I listen to about 100-150 pitches at MLS meetings every week where Realtors stand up and describe their listings to other Realtors. "Beautiful"... "Gorgeous"... "Breathtaking Views" are the typical cut and paste remarks; however, I have noticed a trend taking place. I am starting to hear, "Ugly____"... "Needs a TON of Help"... and "Broken _____" used more and more. Realtors are starting to describe their listing by including the repair issues. At the Pasadena-Foothill Board of Realtors meeting this morning, a Realtor actually showed pictures of her repair issues and actually posted them on the MLS. That is not something you see too much of on the MLS, if at all!

Honestly, put yourself in the shoes of a buyer. Have you ever searched for items on ebay? Do want to see a stock photo of the item or actual pictures of the item... the good, bad, and ugly? Well, what about houses? As a Realtor sorting through properties to show clients, what would you like to see on the MLS listing? What about the homebuyer searching for homes online? The good, bad, and ugly? I actually believe people might want to see those ugly accurate pics. You think?

Maybe a trend is starting... we've seen transparent marketing across social networks, what about transparent marking of listings on the MLS? Any thoughts?

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

I NEED YOUR INPUT ACTIVE RAIN COMMUNITY ON A CLASS WE ARE TEACHING!

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Fri, 19 Mar 2010 19:01:28 -0700

This is a REACH OUT to the AR community. I NEED YOUR INPUT on a class we are teaching to our local board of Realtors!!!

We have been asked to teach a class at a few Realty board meetings and local brokerage offices within the next two months. We have TONS of topics and info to share, but we really want YOUR input to help be most effective in reaching our real estate community! Sometimes the most valuable input comes from the agents working beside us in the trenches everyday... and no better place to reach out than the ActiveRain community!

Please answer ONE question from the following OR if you are up to the challenge pick two or three! It will be used in our presentation to the boards we serve in the Los Angeles area. Thanks my fellow Active Rainers!!!

1. What is the first thing you look for in a house when viewing it with clients?

2. What is the most common property repair request given by buyers?

3. What is the most common repair issue that delays escrow?

4. How is "diligent" defined in agent inspections in terms of liabilities and client expectations?

5. FHA 203K streamline, Title-1, Energy Efficient Loans: Are they useful? Are most agents aware of them and how they work?

6. If agents made money on repairs and liabilities were not an issue when making note of them to the client, would agents be more active in pointing them out and offering solutions to get them fixed?

7. What is the biggest concern of buyers in the market today?

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

How to Hand an Inspection Report to a Buyer Blindfolded

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Fri, 19 Mar 2010 15:11:51 -0700

I was recently at a meeting with a large group of Realtors where the invited guest was an attorney. He spoke specifically about real estate agents and brokers responsibilities in conducting a reasonably competent and diligent visual inspection of a property. He spoke about the agent's professional duties in representing their clients and mentioned the importance of a physical inspection by a qualified home inspector.He covered the anxiety issues that agents have when inspectors come on the property and fears of agents' buyers walking away from potential sales. He said not to worry, once the report comes in, just hand the report hand over to the client and do not go over it with them; just send them a letter stating that if they have any questions contact the inspector or a contractor.

He then said, "Don't worry because zero people will actually call the inspector (holding up a zero)." In other words, don't mention any item on the inspection report, hand it over, tell them to contact a professional with concerns (don't worry, they never do), close that escrow and make some money! Ummm... if you were a buyer, is this the Realtor you want represeting you on your next purchase? I am just asking???

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

New Citigroup Program Gives Homeowners 6 Months Free Living

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Thu, 11 Feb 2010 19:04:49 -0800

I read today on WashingtonPost.com that Citigroup is preparing a deed in lieu of foreclosure program that could give homeowners an option to stay in their homes as long as 6 months for free in exchange for keeping up the home and handing over the keys with the property in good shape. The program also offers tax relief, HOA assistance, insurance, as well as cash to help relocate. The purpose of the program is to provide an alterantive for delinquent borrowers who don't qualify for or decline mortgage relief programs. Also, the program aims to avoid the problem banks have in spending thousands on foreclosed homes in order to get in condition to sell.

My concern is that the second the homeowner signs up for such a program there will be an immediate emotional detachment from the property and care and maintenance will likely take a backseat. Banks will take over properties in the same shape as short sale and cash for keys evictions. Realtors will likely be assigned as the responsible party for final inspections and will rush to get the homeowners out to take the listing. At the end of the day, has this really changed the market?

Also...What if the home is not in the shape that the bank expects? Will people care for a home that they are handing keys over to in 6 months? Will people actually hand keys over in 6 months?

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

The Realtor Blame Game... Who is Responsible in a Real Estate Transaction?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Thu, 11 Feb 2010 15:54:44 -0800

Let's play the blame game. It's simple. I will give you the scenario, you tell me who is to blame.

Phil is the selling agent on 123 Street.
Suzie is the listing agent on 123 Steet.
John is the buyer on 123 Street.
John(buyer) calls Phil a year later after buying the house and complains about a water leak.
Phil sends a licensed contractor to the house and finds that there is more than just a water leak issue.
It is apparant that the roof was patched improperly, in fact, it is clear that the roof should never have passed a roof certification when the house was bought.
Phil calls Suzie and asks Suzie who the contractor was who made the repairs at the time the house was sold.
Suzie recalls there was work performed on the house including the roof, but tells Phil she can not remember who performed the work.
Suzie reminds Phil that the house was inspected by the buyer's home inspector and Phil signed disclosures concerning property conditions.
Phil presses further and Suzie speaks to his sellers only to find the repairman is no longer in business.
In the meantime, John requests a quote to repair the damage which turns out to be a bit more than anyone anticipated.
John wants to know who is responsible to fix the roof.

Now, really, who is to blame the responsible party? Home inspector, appraiser, listing agent, selling agent, the seller, the buyer, the missing repairman... perhaps the butler did it?

"Don't blame me,"... "It's not my fault,"... "I don't want to hear about it,"..." It is not my responsibility,"..."Call your home warranty,"...

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

If the Toilet Paper Dispenser is in the Shower, You Might Need a Home Inspector.

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Sat, 23 Jan 2010 15:45:51 -0800

We get the question quite often, "Do I need to have the house inspected?" Well, dollars and cents say, "yes", but most importantly common sense says, "yes." Consider this disturbing picture of house with toilet paper roll dispenser built into the shower!!! (along with an electrical outlet, yipes!)

First, let me state that I am not a home inspector. I am not posting this to solicit home inspection business. I am in the real estate repair, restoration, and property preservation business as a general contractor. I want buyers and Realtors to be aware that the homes in this market are VERY different than anything we have every worked on. It's just the fact.

If you are even thinking about buying a home in this market and debating a home inspection PLEASE consider the following:

Nearly every home in this market is in need of repair regarding mechanical systems (plumbing, electrical, HVAC). Why? Deferred maintenance. When the economy bottomed out, regular system checks and maintenance issues were neglected. It's like not changing the oil to your car. As long as the engine starts, the damage goes unnoticed, but at some point the engine is going to need to be replaced. It's the same with house systems. Thousands of dollars are spent to correct what could have been avoided if something as simple as a dirty air filter or small leak was attended to.

Homes have been sabotaged by previous homeowners. Ingenious, creative, vindictive, and angry is the homeowner who bought his house with the promise of a great investment only to find himself thrown into a pit of negative equity and an unwilling bank to pull him out. What does he do? He sabotages the house in a last ditch effort to stick it to the bank. We have seen just downright ingenious contraptions to plumbing and electrical systems, small holes in the roofing, and other hidden gems that cause catastrophic damage.

Tenant occupied short sales are on the rise. The landlord/ owner did not have the money to pay the mortgage; you think he is going to be willing to repair the house? Often the tenant is left to just occupy the house rent free. The tenant has ZERO investment in the house. It is like a free rental car to him with all the insurance...Varoooom! Let's use the speed bump as a launching pad!

Short sale and REO vacant homes have a TON of issues just because of the fact they are vacant. Remember your science classes on how rust is formed. Water + Air + Metal = RUST. Water lines are not running, water is sitting in these lines forming pin hole rust spots. When the pressure is turned back on the pipes leak throughout the house. Happens all the time. I can not tell you how many water heaters we have replaced because of this. On top of that, the Realtors often do not check these things before turning the water on and before long there are hidden leaks and mold forming around the HVAC unit and sending mold spores throughout the house.

Just some things to consider if you are debating a home inspection by a qualified professional. In this market, it just makes cents sense.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Heavy Rains Put Realtors To Work in Southern California

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Fri, 22 Jan 2010 20:26:13 -0800

There is no sleeping in and sitting by the fire when it's raining and cold outside for Realtors in Southern California. Realtors are on top of their game making calls and arrangements making sure their listings are safe and secure without major water damage. We have had MANY calls keeping us busy with tarping, water extraction, damage assessment, floor and drywall drying, and repair as a result of the heavy rains in Southern California.

WARNING: if you are a Realtor in Southern California with a vacant listing...time to step it up and inspect your property!

DO NOT TAKE IT FOR GRANTED THAT YOUR LISTING DOES NOT HAVE WATER DAMAGE EVEN AS YOU READ THIS.

GO NOW AND DO A QUICK CHECK OF THE FOLLOWING:

Check window and door seals for visible water leaks. RUN HAND AROUND SEALS.
Touch the carpet around all exterior doors for wetness.
Walk around house and visually inspect ceilings (not just downstairs) for stains and water spots.
Be sensitive to smell in the house. Mold and water damage to drywall has a distinct smell. Any unusual odors should be noted as a potential problem due to water damage.
Use a flashlight to inspect the attic floor.
STAY OFF THE ROOF if you suspect a problem and call a professional.

Water damage happens VERY FAST. Preventive measures must be taken. Realtors... you are the FIRST line of defense... in fact, it's your job!

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Connecting and Engaging... The ActiveRain Gods are Speaking

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Thu, 07 Jan 2010 21:03:20 -0800

I think the ActiveRain gods might be trying to tell us something.

What, you are not believer? Well, I have deciphered their ways and have proof that the AR gods are hard at work and they have something to say!

I suppose an experience, encounter, article, blog, or random thought can all trigger ActiveRain posts. Recently, I was "triggered" to start writing a blog titled, "People are Not Line items" in regards to how we develop our leads and client relationships, inspired by Pour Your Heart Into it by Starbucks CEO Howard Schultz. So, I went to ActiveRain and before clicking "New Blog Entry" I glanced through the recent posts as well as checked on which articles moved the ActiveRain gods to make the featured articles section. I really can not figure out the formula or pattern as to what makes one article featured over another, but I did notice something of a pattern today in each article. As I read through the posts, certain words and phrases started to jump out at me. I noticed a theme being developed. Wow, were the ActiveRain gods speaking to me? Hmmm, maybe I should open my ears...

Here are some of ActiveRain posts that "by chance" ended up on the same featured page on January 7, 2010.

Listening With Purpose To Your Consumers by Jeremy Blanton

To build relationships with potential consumers and build a strong following...
To connect with consumers who may not already be aware of the business and increase revenue by reaching new clients

Finessing the Online Home Buyer- MY view from 12+ Years of Internet Lead Conversion by Jason Crouch

don't kid yourself into believing that automation can supplant the personal touch.
Engage, and they will be much more likely to remember you.

Real Estate is and Always Will be a 'People Business' by Brad Andersohn

At the end of the day, Real Estate is a people business and no amount of technology will replace old fashion networking and sharing, in person.
Come Join us on Tuesday, January 12th in New York City for RainCamp to learn and build cohesive, meaningful relationships with colleagues that will carry you into 2010 and beyond.

A Mellow Approach to Internet Lead Conversion by Dave Roberts

I admit that I let my potential clients down by not staying engaged with them.

The Next Big Marketing Thing -- FoureSquare?? by Clint Miller

you have not tried Foursquare yet... you should. It's fun. It's free. And, it's a great way to connect with people.

Will Somebody Help Me, I've Become an Active Rain GROUPaholic !!! by Michael J. Perry

I'm writing this because it's just in my nature to share great experiences with friends!

Build a group of invites and connect with them using GROUPS!

CONNECT, SHARE, ENGAGE, BUILD RELATIONSHIPS...I see a theme for the start of 2010 already. Oh, those crazy ActiveRain gods are up to something!

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Realtors Losing Deals to Low Appraisals

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Mon, 04 Jan 2010 20:29:08 -0800

Realtors are losing deals to low appraisals. That is a problem and a fair complaint in considering the argument. Perhaps we need to look more at the root of the problem to determine the solution.

Thanks to Active Rain member Diane Osowieki in her blog for directing me to USA Todays recent article Foreclosures Weigh on Home Appraisals.

The article states that The National Association of Realtors and The National Association of Home Builders agree that low appraisals are drastically "sinking" home sales. They argue that it is not fair to compare foreclosed homes to non-foreclosed homes because foreclosed properties sell for 30% LESS than non-foreclosed properties.

The statement that foreclosures are selling for 30% less supports a survey done by Trulia.com stating that consumers are now expecting a 30% reduction in price when dealing with a foreclosed property. It is also states that on average consumers are spending $30,000 to repair and rehab a foreclosed property. As a contractor dealing with hundreds of REO properties a month, I can attest to the accuracy of these numbers.

It boils down to the root of the problem: Property Condition. Should we have two separate markets based on property condition? Should a pre-inspection be required for all listings and used to determine a classification for the property? For example, what if there was an advisory category "this house is a category 2" based on system checks and pre-inspection reports. As category 2 you can expect to pay up to X amount to bring the property into a comparable category 1 listing in the same area. Appraisals would consider this in determining market value.

Have we come to the need to officially declare we have two markets when developing CMA's in respect to appraisals? Are we really comparing apples to apples?

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Lowered Expectations By Foreclosure Buyers. Why?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Mon, 04 Jan 2010 17:39:03 -0800

Lowered expectations. Don't take it as negative statement, that is the just reality of the movement by consumers in today's market. Trends show consumers expect less when purchasing a foreclosure and expect a discounted price to follow. According to a survey done by Trulia.com 65% homebuyers expect a 30% discount in the purchase price of a foreclosure, but are willing to pay on average $30,000 when purchasing a new home for things such as furniture, paint, hot water heaters, etc. Buyers are now understanding that the majority of the homes in this market are considered distressed properties, knowing now that they will likely need to put money into the homes to bring them to acceptable condition.

A recent article from Managing REO stated that the willingness to purchase a foreclosed home has actually decreased as supported by a survey Harris Interactive stating that in November 2009, 43% of adults age 18 or older said they would consider purchasing a foreclosed home in the future, compared to 55% who answered the survey in May 2009. Buyers cite hidden costs in repairs as a negative aspect in purchasing a foreclosure. Homebuyers are now forced to factor in hidden costs in determining a home's value when making an offer that makes sense.

One of the concerns over hidden issues has been unclear disclosures. Some states are now stepping up and requiring more disclosures on REO's. In California, mandatory disclosures have been revised for 2010 for the sale of bank owned properties. More responsibility is placed on the agents to conduct a reasonably competent and diligent visual inspection and to disclose to the buyer all facts materially affecting the value or desirability of the property that an investigation would reveal. This does not mean the real estate agent copies and pastes the inspectors report into their agent disclosures. The fact that the agents are to conduct the inspection leaves one to believe that agent's should be expected to have knowledge and competency in performing an inspection. What still needs to be defined is what "competent and diligent" is in light of an agent's inspection.

The are many unknowns in an unstable market. Lack of trust from consumers in regards to market instability can slow the market, lack of trust from the consumer in regards to product instability can compound the problem. If this market will do anything, it will give agents an opportunity to know the product they are selling and prove their competency, and I am not talking about competency in knowing the neighborhood facts and knowing which house has the better school system, I am talking about the actual brick and mortar of the product itself. The agents that educate themselves on property conditions will have the edge in marketing their properties for their sellers and negotiating properties for their buyers. Perhaps when the product becomes more stable and trusted, consumers will raise their expectations and expect more bang for their buck.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

NEW Required REO Disclosures in California Requires Agents to Step it Up

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Thu, 31 Dec 2009 19:24:32 -0800

We knew this was coming, and as it is likely to be just the beginning in response to the continued rise in bank owned properties. We have new disclosures now to be applied to REO properties in California and it will require more from the agents.

Bank owned properties (REO's) are usually a haven for major repair issues, structural damage, and code violations. Disclosures concerning property conditions have been considered loose, at best. Having serviced thousands of bank owned properties in the past 4 years for some of the top asset management companies, I can assure you we are only seeing the beginning of what is to come in addressing these concerns.

Here is a list of some of the NEW disclosures for REO properties in California as reported by the California Association of REALTORS®:

REQUIRED

Agency Disclosure Statement

A real estate agent must provide an agency disclosure statement for a transaction involving one-to-four residential units, except certain subdivision sales (Cal. Civ. Code § 2079.14). There is no exemption for an REO sale.

Agent's Duty to Visually Inspect and Disclose

For residential property with one-to-four units (except for certain subdivisions), a real estate agent is required to conduct a reasonably competent and diligent visual inspection and to disclose to the buyer all facts materially affecting the value or desirability of the property that an investigation would reveal (Cal. Civ. Code § 2079). There is no exemption from this requirement for REO sales. C.A.R. Form AVID is not a legally-mandated form, but an agent is strongly advised to use the form to document that he or she has performed the legally required visual inspection.

C.A.R.'s Combined Hazards Book

Part 2 is "Protect Your Family From Lead in Your Home," and required for most residential properties built before 1978 (see Lead-Based Paint Hazards below), including REO sales.

Condominium or Other Common Interest Development Documents

The seller of a condominium or other separate interest in a common interest development must provide the governing documents and other items to a prospective buyer (Cal. Civ. Code § 1368(a)). There is no exemption from this requirement for an REO sale.

Flood Insurance for Disaster Relief Assistance

If federal disaster relief assistance conditioned upon obtaining flood insurance has been provided for a property, the transferor must disclose the requirement of obtaining flood insurance to the buyer in writing (42 U.S.C. § 5154a). There is no exemption from this requirement for an REO sale.

Lead-Based Paint Hazards Disclosure

Under federal law, a seller of residential property built before 1978 must generally disclose lead-based paint hazards.

Material Facts

A seller is required to disclose any known material facts affecting the value or desirability of the property. Whether something is material or immaterial will ultimately be decided, if necessary, through the legal process by a judge, jury, or arbitrator, based on the facts and circumstances of the case. There is no exemption from this disclosure requirement for an REO sale.

Megan's Law Disclosure

A residential seller must generally disclose the availability of a database of registered sex offenders in at least 8-point type font (Cal. Civ. Code § 2079.10a). There is no exemption from this requirement for an REO sale.

Meth Lab Clean-Up Order

A seller must disclose in writing to a buyer a pending order issued by a local health officer prohibiting the use or occupancy of a property contaminated by meth lab activity. The seller must also give a copy of the pending order to the buyer to acknowledge receipt in writing.

Smoke Detectors

The seller of a single-family dwelling must deliver to the buyer a written statement of compliance with the smoke detector law (Cal. Health & Safety Code § 13113.8(b)). There is no exemption from this requirement for an REO sale.

Title Insurance Notice

If title insurance will not be issued to the buyer of an owner-occupied residential property with one-to-four units, a notice of the advisability of title insurance must be provided in a separate document to the buyer (Cal. Civ. Code § 1057.6). There is no exemption from this requirement for an REO sale.

Water Conserving Fixtures

Applies only to real property built on or before 1-1-94.

Water Heater Bracing

The seller of any real property containing a water heater must certify in writing to the buyer that the existing residential water heater is properly braced, anchored, or strapped (Cal. Heath & Safety Code § 19211). There is no exemption from this requirement for REO sales.

NOT REQUIRED

Airport in Vicinity

Industrial Use Zoning

Mello-Roos Tax and 1915 Bond Act Assessment Notice

Military Ordnance Location

Private Transfer Fee Notice

Supplemental Property Tax Notice

Transfer Disclosure Statement (TDS) : Still must present material facts that may affect the value or desirability of the property.

RECOMMENDED

C.A.R.'s Combined Hazards Book, Part 1- Residential Environmental Hazards booklet and Part 3-on earthquake safety.

Natural Hazard Disclosure Statement

REO Advisory

REO Advisory (Listing)

Seller's Affidavit of Nonforeign Status (under FIRPTA) and California Withholding Exemption

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

REALTOR® versus Agent with Just a Real Estate License.

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Thu, 31 Dec 2009 17:22:47 -0800

The showdown: REALTOR® versus real estate agent, you know, the guy with just a real estate license who has not joined the ranks of the ethical elite.

Which person is better equipped to represent buyers and sellers in a real estate transaction, the REALTOR® or the person with just a real estate license?

Consider this, both the REALTOR® and the person with "just a real estate license" have an ethical and legal code of conduct in business according state laws and both still have fiduciary responsibilities to their clients when conducting a real estate transaction. Being a REALTOR® means you have paid a fee to join the National Association of REALTORS®, a national organization that has developed a code of ethics containing 17 Articles of enforceable conduct by the organization. These codes are definitive and give real estate professionals a standard in conducting their own business and gives other agents, sellers, and buyers, an idea on how they can expect to be treated by the REALTOR®. That does not mean that a real estate agent that is not part of the organization does not, should not, and is IS NOT required to adhere to ethical standards, specially since many of of these ethical obligations are also in many state legal guidelines that apply to anyone with a real estate license conducting real estate business.

As a licensed contractor in the real estate industry, we deal with both REALTORS® and non-REALTORS®. We have seen incredibly dishonest and downright unethical acts by BOTH. We also have quite a few Dr. Phil moments listening to REALTORS® complain about other REALTORS®. I am not convinced that if every real estate agent joined the National Association of REALTORS® the problems would go away or diminish in any measurable way. As one REALTOR® told me, "The gloves have come off, and this market is revealing the worst in people."

This market has the opportunity to reveal the best in all agents and real estate professionals (agents, contractors, title, escrow, lenders, etc) . This can be an incredible time for our industry to show we have ethical standards that we actually believe and practice!

Whatever the issue between REALTORS® is, it nearly always falls under the category of ethics; with some of the greatest areas being exagerrating, misrepresenting, and concealing material facts, truth in adverstising, cooperating with the agents, and bad mouthing other agents.

Some past blogs on the following subjects involving conversations with REALTORS®:

Not Knowing Fiduciary Duties

Who is Responsible for Disclosures

Not Revealing Material Facts

Committing Moral and Ethical Fraud

With that said, I am a supporter of the National Association of REALTORS®. There should be a great sense of pride in joining an organization that represents the highest standards of ethics in an industry. BUT, being a REALTOR® does not automatically give an agent ethics or standards in the way they conduct business, and agents that are not REALTORS® does not disqualify them from having high ethical standards. Greed, selfishness, fear, pride, ego, and jealousy can all pollute the heart of REALTORS® and non-REALTORS® alike and influence day to day activities and decisions, including business. It really is a matter of the heart. A REALTOR® and "that person with just a license" are on a level playing field when this is considered. In fact, as a REALTOR®, if you don't hold true to the values of being a REALTOR®, maybe you are really "just the person with real estate license?"

When you became a REALTOR®, it should not have been about joining an organization out of pressure or because everyone else was doing it, but about joining because of principles, principles that you agree to and would conduct your business by whether you were a REALTOR® or the guy with just a real estate license.

To all REALTORS®, maybe it's time to renew your vows based on the 17 Code of Ethics for REALTORS® Go ahead, say them aloud, use them in developing your mission statement, your business plan... and keep them in your heart :)

#1) I shall put the interests of buyers and sellers ahead of my own and to treat all parties honestly.

#2) I shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.

#3) I shall cooperate with other brokers / agents when it is in the best interests of the client to do so.

#4) I shall disclose if I represent family members who own or are about to buy real estate, or if I myself am a principal in a real estate transaction, and that I am licensed to sell real estate.

#5) I shall not provide professional services in a transction where I have a present or contemplated interest without disclosing that interest.

#6) I shall not collect any commissions without the seller's knowledge nor accept fees from a third-party without the seller's express consent.

#7) I shall refuse fees from more than one party without all parties' informed consent.

#8) I shall not co-mingle client funds with their own.

#9) I shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

#10) I shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.

#11) I shall expect to be competent, to conform to standards of practice and refuse to provide services for which I am unqualified.

#12) I shall engage in truth in advertising.

#13) I shall not practice law unless I am a lawyer.

#14) I shall cooperate if charges are brought against me and present all evidence requested.

#15) I shall not bad mouth competition and agree not to file unfounded ethics complaints.

#16) I shall not solicit another REALTOR'S client nor interfere in a contractual relationship.

#17) I shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.

By the way: I think any one of these 17 items are great blogging material and ideas for our Active Rain community. Would love to hear stories and real life examples that illustrate the importance of why these are considered ethical standards; the good, bad, and ugly consequences of following and not following them in your real estate business.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

The Five Temptations of a Realtor

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 29 Dec 2009 19:42:54 -0800

Every one has temptations that we must contend with everyday, and I am not talking about the personal ones Tiger Woods succumbed to, there are already enough blogs on that. I am referring to temptations that every Realtor must face on their road to a successful real estate career.

Inspired by The Five Temptations of a CEO by Patrick Lencioni, here is my take on The Five Temptations of a Realtor.

TEMPTATION #1- Choosing Status Over Results

Park benches and grocery carts might love your mug shot, but that does not mean you are producing results. Many Realtors base their success on their perceived status in the real estate community. Thousands of dollars are spent on ego "branding" with very little thought into what is actually producing results. Take a look at a Realtor's website and when you see it is all about them, it is a good sign the Realtor has fallen into this temptation.

ActiveRain member Jeani Thomas Ritchie in her recent featured AR blog, "I got the job because it wasn't all about me!" gave a good example of results over status:

"I will be listing my property with you and I just want to tell you that the thing that impressed me most about you was that it wasn't "all about you" you really came in and answered my concerns, told me the truth and offered solutions to my problems."

Question: Would it bother you greatly if you exceeded your objectives in business, yet remained anonymous relative to your peers in the industry?

TEMPTATION #2- Choosing Popularity Over Accountability

Remember High School and the popularity contests? Well, things did not change much when you decided to join the real estate industry. Even Active Rain has the "in crowd", it's not a bad thing, it's just natural. BUT, we should still have a sense of accountability to provide helpful contributions to the AR community rather than just do "drive by" comments and post useless blogs.

Accountability over popularity also means sticking to your morals and ethics regardless of the situation and how much money is at stake and holding others you do business with to the our ethical obligations. This can be difficult in a community of Realtors where we rely on strong networks and friendships among our peers.

"The slightest reluctance to hold someone accountable for their behaviors and results can cause an avalanche of negative reaction from others..." The Five Temptations of a CEO

Question: Do you find yourself reluctant to question a Realtor you are doing business with on a seemingly obvious ethical violation?

TEMPTATION #3- Choosing Certainty Over Clarity

Realtors are having a hard time defining their vision in a changing a market because they are afraid to be wrong. You can not hold yourself accountable without have clarity in your mission statement and business plan, even if the future of the market is uncertain. Realtors slipped out of the market these past two years, mostly because of an unclear vision and business plan, not because of the market changing. The market shifted, but Realtors where not clear which way to go. Do you think Gary Keller's book Shift has become a best seller by accident? (Here is a good review of Shift by ActiveRain member Renee Burrows)

Realtors need clarity of vision in a market that is shifting and uncertain...even at the risk of being wrong.

"I'll take a well executing company over a visionary one any day." The Five Temptations of a CEO

Question: Do you prefer to wait for more information rather than making a decision without all the facts?

TEMPTATION #4- Choosing Harmony Over Productive Conflict

It would be nice if every real estate transaction was pleasant and enjoyable. They aren't. Some are just downright difficult where you face resolving difficult issues with difficult clients and Realtors.

People hate conflict. Since Realtors are people, despite what some would say, they generally despise conflict too. Why do you think Realtors not answering phone calls has become such a hot topic? It is not because they are too busy. Let's get real. It's because they do not want to be bothered with conflict and problems that today's market presents. By avoiding problems and procrastinating issues, deals will be lost along with the reputation and trust of the real estate community.

Conflict can also come in the form of disagreement such as disagreeing on contract terms, price, repairs requests, etc. Real estate professionals are in the business of conflict and must understand the importance of it in business.

"Even if we are not overly concerned about being liked by our people, we fail to hold them accountable because we don't feel it's fair to hold them accountable, which has something to do with Temptation #1." The Five Temptations of a CEO

Question: Do you avoid answering phone calls from difficult clients and Realtors involved in a difficult transaction?

TEMPTATION #5- Choosing Invulnerability Over Trust

Do you hate being wrong? Most people do. Being wrong shows you are weak. Many Realtors fear they will expose a weakness if they are wrong in pricing the house, showing the house, or negotiating a transaction. Truth is, maybe you did price the house wrong, or perhaps you should have negotiated differently. Maybe you don't have new business because you are a weak lead generator and have poor marketing skills? Instead of blaming the market and outside forces for your failure, own your weaknesses and trust others to help you strengthen them.

Wouldn't it be great of the AR community could embrace this and learn to trust one another with our failures and shortcomings?

"Sometimes it is even okay to be burned, because you realize it's not fatal." The Five Temptations of a CEO

Question: Do you fear being wrong will cost you future business?

Hope that helps! Here's to conquering your Temptations in 2010!

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Short Sale Experts...Wolves in Sheep's Clothing?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Mon, 28 Dec 2009 13:22:58 -0800

Short sale companies and Listing Agents marketing themselves as "Short Sale Experts" are on the rise. This niche in the real estate market was developed out of a real need for the homeowner, but, as in every industry, there are wolves in sheep's clothing, and the short sale industry is no different.

There are certain companies and agents among the real estate forces silently advertising themselves as short sale closing experts that we need to be cautious of. (emphases on the word "certain") The companies typically begin the short sale sale by having the home owner sign over title (not all do this). The company holds a copy of the signed transfer on file. The company then acts as the buyer's agent on THEIR OWN BEHALF and submits an offer to the bank FROM THEM, and negotiates the sale price of the property with the bank. After an accepted offer with the bank, the company attempt to hold off the sale, has a Realtor list the property with a price that will hopefully meet an appraised value based on market conditions and leave a margin large enough to make a profit.

For example, the company submits an offer to the bank and has it approved for $100,000. The house is listed for $130,000 by a Realtor. Once an offer is accepted by the new owner (the short sale company) the house enters into escrow between the short sale company as the seller and new buyer.

If the house does not sell, title is never transferred completely. Even though the short sale company was able to negotiate an accepted offer originally, if they can not get offers that will give them profit or the house will not appraise to their best interest, they will reject those offers and lead the Homeowners to believe that the bank will just not budge and a short sale is just not possible. Sorry, we did all we could and you are on your own. Meanwhile, the homeowners are often not paying mortgage thinking the house is going to be sold while the pre-foreclosure process is still moving ahead. Some homeowners are even suggested to abandon the house, making it easier for the short sale company to show the property for a quick sale.

Often the bank requires and updated BPO or appraisal from the first offer (the original one from the short sale company) and the whole short sale process is delayed. If the appraisal comes back different, then the price has to adjust accordingly. If the Listing Agent is holding a submitted offer from another agent and at the same time is waiting for the short sale company's offer to be accepted, the Buyer's Agent is led to believe that the bank is still considering their offer, when in fact, the bank has no clue of their offer (if they did they would accept it given that it is likely much higher than the offer the short sale company has submitted.)

What to do to avoid this type of practice:

Sellers and Buyers agents should question a Listing Agent and short sale company on how they negotiate short sales. If they use the word "Investor and Negotiator" you should be cautious. "I have an investor that will buy the house and we will negotiate with the bank."

Do not take your neighbor, friends, or other Realtor's advise on Realtor referrals just because it worked for them. Many of these companies have yet to be brought down and many Realtors are still lost in the confusion of Short Sales. Do your homework. This goes for the Buyer's Agents too! If you are entering a contract with a home that is being negotiated as such, there are things you need to know. Be aware of title seasoning issues. Your FHA Buyer might not even qualify. The Listing agent knows this, but will not reveal this until the Buyer is on the hook and is asked to seek different financing. Also, be cautious if the Listing agent seems to avoid phone calls and is hard to communicate with.

These companies are evolving and hiding behind the law as their practices are being revealed more and more to agents and homeowners. They can even use "big name" agents to sell their listings. Those agents begin to market themselves as "short sale" experts. They often refer to the banks as business partners, and say they know who to speak to in the short sale divisions to get deals to close fast. They will convince other Realtors to refer all their short sale listings to them because "short sales are impossible to negotiate if you do not understand the rocket science behind it."

To make matters worse, disclosures are lost in the process and the properties true conditions are often masked. The short sale company and the listing agent seldom step foot in the house. The original owners are asked to give their disclosures and that is what the Listing Agent typically goes off of. This opens up a wealth of legal and ethical concerns, and most importantly, concerns for the safety and welfare of the new homeowners in regards to improperly disclosed property conditions. Keep in mind, these are not bank owned properties and full disclosure is mandated.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Why are Water Leaks Common During the Holidays?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Sun, 27 Dec 2009 16:06:43 -0800

Water leaks can be commonly found during the holiday season for several reasons.

1. Families take a vacation and return to find a water stain in the ceiling, a faulity water heater, and toilet leaking. Did the house throw a party while you were gone? What happened? Well, why you were gone water sat in galvenized pipes. Now, it becomes just a middle school science lesson: Water + air + metal= rust. Pinhole leaks form as a result of extended periods of non-running water throughout the house. Over a string of vacations, the rust only gets worse and finally there is the straw that breaks the camel's back and water begins to leak out noticeably. PREVENT: Periodically running water through pipe lines that are rarely used prior to leaving on vacation. Check water lines carefully under sinks and exposed areas for small leaks that could turn into greater problems if left unaddressed.

2. Extended family and friends come in town and use bathtubs that are seldom used. Again, just like above, pinhole leaks can form as result of water sitting in lines over an extended period of time. The bathtub is only used when guests come over and as a result the pipe lines are vulnerable for rust to accumulate. When the bathtub water is turned are, water pressure is introduced in the rarely used lines and pinhole leaks are revealed through water leaks. Toilets not used over extended periods of time are also vulnerable to this. PREVENT: Periodically run water through pipe lines that are rarely used. Look for rust in the bathtub drain. If there is any red or brown areas around the metal, there is a great chance of greater damage underneath the tub.

3. Weather changes. This one is a little more obvious. In Southern California we enter our rainy season in the winter. Rains always reveal faulty roofs and areas in the house such as exterior doors and windows with poor caulking that allow water to enter the house. In some areas, snow can form on rooftops and when melting reveal the same type of issues. Freezing pipes are always an obvious concern in the winter months. Water in the lines, freeze, expand, and cracks the pips causing leaks when it thaws. PREVENT: Problems can be prevented with proper weatherizing if the house is left vacant over an extended period of time. Also, it is a good idea to keep running water through all pipe lines. Also, if leaving for an extended time, leave central heating on low.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Lead Generating or Stalking? (PLUS: Online Stalking Tip Using Twitter)

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Sun, 27 Dec 2009 14:56:05 -0800

You might be farming and lead generating, but is there such thing as a Realtor stalking people for business?

Stalking: to follow or observe a person out of obsession or derangement.

Farming: to cultivate or produce (generate) a crop.

(American Heritage Dictionary)

Here are 10 reasons why you might be Stalker.

1. You go to open houses of other Realtors and wait outside for people to go in with them. The Ambush Stalker.

2. You go to open houses of other Realtors and follow them home to hand them your card. The Creepy Stalker.

3. You pick up other Realtors flyers when you doorknock. The Kleptomaniac Stalker.

4. You call listings off the MLS and say if you had their listing it would have been sold by now. The Narcisstic Stalker.

5. You go to parties you were not invited to, pass out your cards and leave. The Party Crasher Stalker.

6. You spread rumors about how unethical and worthless other Realtors are in your community. The Desperate Housewife Stalker.

7. You continue to call an old client when they have a new Realtor they are working with. The Ex-Boyfriend Stalker.

8. You go through the trash of fellow Realtors looking for leads. The Junkie Stalker.

9. You have a restraining order against you by past clients. The Charlie Sheen Stalker.

10. You use the following twitter tools on the internet: The Tweepy Stalker (Actually, I am sure this could be used for true lead generation, but it sure gives a true stalker a great tool).

(HERE ARE YOUR FREE STALKING TOOLS)

Twitterel: attempts to find people you might be interested in following by doing keyword searches of tweets. The service can update you by email, direct message, or @reply when it finds new people it thinks you might be interested in following. It’s kind of like Google Alerts for Twitter follow recommendations.

I used it and typed in "house hunting" as the keyword and this is what I got:

So, how do you Stalk contact the Tweeters?

1. Click on the their profile and gather information. Google them and try to find a Myspace page, Facebook account, email, etc.

2. Follow them. Not physically, just through twitter :) They will be notified that you are following them.

3. If they decide to follow you, then you can message them and a relationship has been established.

Want to narrow your Stalking searching to your specific area, city, and zip code? Try LocalTweeps.com OR NearbyTweets.com

Here is what I got with NearbyTweets:

I know they are not perfect Stalker Tools Lead Generation Tools, but how many doors have you knocked on until you cultivate a new client? So many Realtors have given up door knocking because of the time it takes to develop leads. BUT, would you knock on a door if you knew that behind that door was a person searching for a house online? The game just changed... Happy Stalking Lead Generating.

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

An Unprecedented Assault on the Construction Industry Before Christmas.

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 22 Dec 2009 19:14:11 -0800

Senate Democrats have just targeted the construction industry by placing a last minute provision in a health care reform bill today that could have a devastating impact on the real estate industry.

The provision calls for mandating that construction industry firms provide health insurance if they employ 5 workers or more, the same mandate currently in place for big businesses. The construction industry is the only one being targeted. All other small business are exempt from providing mandatory health coverage if they employ 50 workers or less. This was a last minute provision thrown into a health care bill they are trying to pass before Christmas.

“This narrow provision is an unprecedented assault on the construction industry and unjustly targets an industry trying to keep its doors open during the worst housing downturn since the Great Depression,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “If this provision were to be enacted into law, it would prove to be catastrophic for the home building industry. In short, this is a true jobs killer. Thousands of small builder firms struggling to stay afloat could go under. We strongly urge the Senate to reconsider and pull this onerous provision that threatens the viability of small home builders across the nation.”

Imagine the impact of such a bill. The real estate industry will be crippled even more than it is. New construction will likely come to a stand still. Costs in repairing and rehabilitating the thousands of bank owned properties will rise, causing greater delays, less room for negotiating, and further dipping into depreciating home values. Illegal work, such non licensed contractors, will be on the rise. Unsafe home conditions in an industry already polluted with hidden dangers in neglected home conditions will continue at an unprecedented rate. Jobs will dry up even more and small businesses already standing on one leg would be kicked to the side.

Happy Holidays Construction Industry!

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355

Are Realtors an Overlooked Sales Force for Government Programs?

Jerry Bronstrup (Bristol Builders, Inc. Your FHA Expert 866-775-8169) — Tue, 22 Dec 2009 17:45:09 -0800

"Of course the house needs upgrades, and Uncle Sam has options to help you do this."

Perhaps Realtors could be the government's greatest and most overlooked sales force in implementing their newly proposed plans to boost our economy. This is nothing new, the government has an interest in the American homeowner and potential homebuyers and has always recognized the connection between the real estate market and economy. What is new is the sudden onslaught of proposed plans to use homeowners to boost our economy.

For example, The American Recovery and Reinvestment Act (ARRA) has a program designed to use homeowners to improve our economy through purchasing eco-efficient appliances and items for their homes.

Politics aside (NO Republicans in the House and only THREE Republican Senators voted for the ARRA bill), could this be used as a tool by Realtors to move houses? It's no secret that the majority of homes on the market need appliance upgrades and repairs. Could a tax credit be incentive enough to get some buyers off the fence in considering certain homes on the market?

Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010. It is currently being implemented, unlike Cash for Caulkers which has yet to be passed.

Each state has allocated funds to participate the rebate program. For example, California has been allocated $35.2 million in federal American Recovery and Reinvestment Act (ARRA) funds to participate in the State Energy Efficient Appliance Rebate Program (SEEARP).

According to the Energy Commission, the current rebate program will:

Save energy by replacing inefficient appliances with more efficient ones.
Make rebates for efficient appliances available to residential consumers.

THE MONEY IS THERE...

THE PLAN IS IN PLACE...

BUT HOW DOES THE GOVERNMENT PLAN TO EDUCATE HOMEOWNERS AND BUYERS ABOUT THEIR PROGRAMS?

Internet, press conferences, tv, newspaper (do those exist still?) OR word of mouth marketing through those in the housing trenches everyday with homeowners and buyers?

I asked two Realtors yesterday if they knew about any such program to help homeowners. One said that he had not heard about anything, the other said she had only heard of Cash for Caulkers (which got some publicity when Obama said he thinks insullation is sexy). Has government overlooked their greatest sales force in educating Realtors OR giving them incentives to push their programs?

There are other programs as well, such as the first time homebuyer tax credit, and there will likely be many more in the future. Are these programs designed to help the economy, the Realtor, the homeowners, or all the above?

I have heard some Realtors placing riders on their signs, "First Time Buyer Credit". They are essentially selling a government program, are they not? With over 1,132,903 National Association of Realtors members as of November 2009, can Realtors be the government's greatest sales force to present their programs to homeowners and buyers?

661.294.1812

25020 Avenue Stanford #110

Santa Clarita, CA 91355