Don King's Rancho Bernardo Blog

Home Buyer Tip - "Be Prepared For Competition"

Don King (RE/MAX Rancho Bernardo) — Mon, 07 Sep 2009 10:48:47 -0700

Not long ago, a prospective home buyer who had no property to sell and who was financially-qualified was in the driver's seat. They had numerous properties from which to choose and most sellers were highly motivated.

No longer. Now when a nice property comes on the market, especially if it is not a short sale or bank-owned, there are frequently multiple offers and it often sells above the asking price.

If you want to purchase a home, you need anticipate that other buyers may be interested in the same property that you are. So how can you compete?

First, you should get your ducks lined up so you can make as clean an offer as possible. If you need to sell your current property so you can make a non-contingent offer, then get you property at least into escrow before you start seriously house shopping.

Unless you are a cash buyer, you will need to get a mortgage to buy your new home. It is essential that you be preapproved for a loan in advance so you can prove to the seller at the time you make an offer that financing will not be a problem.

Then, when you find a property that you really want, you should make the strongest offer that you can. Everyone wants to feel they got a bargain on the house they buy. But, considering that we are still near the bottom of the real estate market, you are probably getting a very good deal even if you pay a little more than the list price.

And if you make your best offer and still don't get it, at least you can take comfort that the buyer paid more than you were willing to pay.

Finally, you need to be patient. You will need to look at everything that matches your criteria as soon as it hits the market. If you like it, get your offer in immediately. You may even have to make offers on multiple properties at the same time.

This feeding frenzy atmosphere may make you feel uncomfortable and therefore hesitant to jump into the market. However, I think what is happening is many buyers and investors recognize that the market has bottomed out and they are trying to make their purchases before prices go up substantially.

Just remember, right now there are more willing, qualified buyers out there than there are good properties. And not everybody is going to get one.

"Your Home Should Be A Good Investment"

Don King (RE/MAX Rancho Bernardo) — Sat, 08 Aug 2009 18:35:28 -0700

Everyone has their own idea of what they want in a home. You need to buy a place in which you and your family will be comfortable.

On the other hand, you probably won't be in the house or condo forever and, when the time comes to sell, it would be nice to learn you made a sound financial investment.

Here are some thoughts about purchasing a property that will likely appreciate in value over the years.

There are some really unique homes out there. Custom houses or tract houses that have been severely customized can be very dramatic and appealing. Just keep in mind that a home with mass appeal will generally increase in value more that a property that will attract only a few buyers.

If you are buying a detached home, you would be wise to select one with at least three bedrooms. Two bedroom houses have limited appeal unless they are in a senior area. Condos with two bedrooms are much more popular than one-bedroom units.

A detached home will generally appreciate in value faster than a condo. Even though a detached home is more expensive, most buyers appreciate the privacy and lower homeowner dues. The exception is a detached "manufactured home" which will not usually hold its value very well.

Remember the old adage of "Location, Location, Location". A desirable school district (such as Poway Unified) will attract more buyers and thus increase value. Also, being in a quiet, safe area is a fine idea.

Finally, according to the National Association of Home Builders, here are the top kitchen and bathroom features sought by home buyers.

Kitchen: 1) Walk-in pantry; 2) Kitchen island; 3) Built-in microwave; 4) Water filtration system: and 5) Storage area for appliances.

Bathroom: 1) Linen closet; 2) Exhaust fan; 3) Shower separate from a tub; 4) Water temperature controls; and 5) Whirlpool tub.

So, when you buy a home, choose one you love but just remember that you may want to sell it someday.

"After A House Flood"

Don King (RE/MAX Rancho Bernardo) — Sat, 08 Aug 2009 18:28:33 -0700

Floods in a home are more common than you might think. They can result from a leaky roof, broken water pipe, or malfunctioning dishwasher.

If you have a flood, it is imperative that you take immediate action. Just mopping up the water won't hack it.

Left unattended, water can result in mold and possibly ruined cabinetry. Professional flood abatement includes the use of heat and fans to thoroughly dry all areas.

As soon as you notice a flood, contact your homeowner insurance. In most cases your policy should cover the cost of repairs, less any deductible.

Beware that some insurance companies will pressure you to use their restoration contractor. This is a potential conflict of interest - you want to make sure the job is done right and the insurance company wants the issue resolved as cheaply as possible.

Know your rights. The California Fair Claims Settlement and Practices Regulations allow homeowners to hire the contractor of their choice rather than just settle for the once the insurance company pushes.

The bottom line is a flooded home is a serious situation and it is imperative that you take action to resolve the situation and avoid future problems.

Capital Gains Taxes

Don King (RE/MAX Rancho Bernardo) — Sun, 12 Apr 2009 12:23:32 -0700

I have recently spoken with several people who were not at all familiar with the current laws regarding capital gains taxes when you sell real estate.

So, even though the current laws have been in place for a number of years, I think it is worthwhile to review them.

First, let me emphasize that I am not a tax professional. I'm just telling you how I believe the tax system works from the standpoint of a real estate broker. Before you make any decision regarding buying or selling real estate, I recommend you talk with your tax attorney or CPA.

When you sell a house or condo, if you have lived in your property for two consecutive years out of the past five, you may exclude $250,000 in profit from capital gains as a single person or $500,000 as a married couple.

So, if the property has been your personal residence, you may not owe any capital gains taxes at all.

Many people were familiar with the previous tax laws, where you had to roll your gains into another property of equal or greater value. That no longer applies. You don't even have to purchase another home.

There also used to be a one-time capital gains tax exclusion of up to $125,000 for sellers over the age of 55. This law is also gone but, with the new law, you don't need it.

If you lived in the property for less than two years, you may still be able to exclude a prorated amount of profit from capital gains taxes, depending upon the reason for your move. If you are transferred to a job more than 50 miles away; have to move for health reasons; or have unexpected circumstances such as multiple child births, divorce, or death in the family, check with your tax professional.

If you are selling a property that was not your personal residence, you face a decision. You can sell and pay capital gains taxes (currently the rate is 15%) or you can execute a 1031 tax deferred exchange to roll the profit into another investment property.

If you plan to sell an investment property in the Rancho Bernardo area, I can hook you up with a very good escrow officer who has extensive 1031 exchange experience and can make the transaction go much smoother.

I hope this answers any questions you may have regarding capital gains taxes. If not, please call me at 858-487-2308.

"Buying New Builder Construction"

Don King (RE/MAX Rancho Bernardo) — Fri, 06 Feb 2009 10:50:21 -0800

So you want to buy a brand new home. Should you work with an agent or just walk into the builder's sales office and check out the model homes?

Builders are affected by this "buyer's market" just like other homeowners. So they are offering incentives to attract buyers.

One incentive is a commission to real estate agents who bring prospective buyers to the sales office. If an agent accompanies you on your first trip to visit the models, most builders will pay the agent and you can benefit from the agent's professional advice.

So, what can an agent do for you when you purchase new builder construction?

First you need to know that the agent's role will be less than if you bought a resale home. When you buy a resale, your agent will represent you throughout the entire purchase. The services an agent can provide for new construction are limited but still valuable.

A recent survey by J.D. Power and Associates revealed that builders will now give a buyer an average of $16,500 in incentives. These incentives can come as a reduction in the base price of the home or free upgrades. An experienced agent can help you get maximum incentives.

In addition, your agent can offer advice on your purchase such as insisting upon the right to a professional home inspection, a function most builders will insist you don't need.

If your are considering new construction in the Inland North County portion of San Diego, it would be my pleasure to help you and, assuming the builder is cooperating with brokers, my service will be free.

"What Is A Buyer's Market?"

Don King (RE/MAX Rancho Bernardo) — Wed, 07 Jan 2009 09:55:39 -0800

You have probably heard the terms "seller's market" and "buyer's market". But what do they mean?

Real estate values go up and down, depending upon supply and demand. Obviously, the quantity of homes for sale is the supply and ready, willing, and able buyers provide demand.

Simply put, a seller's market is when there are more willing and able buyers who wish to purchase a home than there are homeowners who are willing to sell. This puts the seller in the driver's seat - they can demand higher and higher prices and offer fewer terms. The result when demand exceeds supply is rising home prices.

Now we are in a buyer's market. There are more homes on the market than there are ready, willing, and able home buyers. This means not all homes on the market will sell and owners who really need to sell are motivated. Supply exceeding demand means lower prices.

So, if you were a potential buyer, would you rather purchase a home in a seller's market or a buyer's market? The obvious answer seems to be that buyers would rather purchase in a buyer's market. So why don't they?

A funny contradiction in real estate is that buyers tend to leap into the purchase process in a seller's market and not in a buyer's market. Why? The simple answer is they are motivated by greed or fear.

During a seller's market, greed kicks in. Buyers see home values rising quickly. They think they can buy a house and watch the value go up and up. This is the time buyers should be cautious because the market is nearing the top. But instead they charge into the market to get on the gravy train.

On the other hand, during a buyer's market, buyers see house prices declining. This should be the time they enter the market to take advantage of the large selection of homes, bargain prices, and motivated sellers.

However, they are afraid. If the market continues to decline, the property they buy might drop in value. So they sit on the sidelines until the market has already turned around and prices start rising rapidly in the next seller's market.

Buyers would be wise to buy during a buyer's market. In fact, when enough buyers jump into the market, that increased demand is what initiates the next seller's market.

In Southern California, we have been in the current buyer's market for three and a half years. If you are a prospective home buyer and hope to take advantage of the buyer's market, you should take action soon.

"Take Advantage Of Low Mortgage Interest Rates"

Don King (RE/MAX Rancho Bernardo) — Tue, 09 Dec 2008 11:18:13 -0800

If you are in the market for a home, boy is your timing great!

Right now there are tons of houses to choose from; prices are low; and many sellers are desperate to cut a deal.

But, perhaps even better for the prospective home buyer are the current interest rates.

Lenders are now offering 30-year fixed-rate mortgages at 5.1%. This is the lowest that interest rates have been since the 1960s!

And the Federal Government is trying to push rates even lower - perhaps as low as 4.5% -- in the next few months in an effort to nudge buyers who are on the fence to buy now and stimulate the housing market and the economy.

Some buyers are waiting in hope that house prices will drop further. I believe this is a mistake because the current interest rates will not be available for long.

Which is better for the buyer - a slightly lower purchase price later or extremely low interest rates now? Let's take an example.

Assume you could buy a home now for $500,000 with a mortgage at 5%. Or you could wait a year and maybe the house price would drop 10% (which I doubt) but interest rates would return to 7%, which is pretty much normal.

If you bought now and put down $100,000 (20%), you would have a monthly payment of $2,147.29 based upon a $400,000 loan at 5%.

If you bought in a year, you would have to put $90,000 down (20% of $450,000) but your monthly payments would be $2,395.09, based upon a $360,000 loan at 7%.

So, because of higher interest rates, your payments would be about $3,000 higher per year. Over 30 years, you would pay $91,000 more during the life of the loan.

When you consider that prices may not decline any further but interest rates will almost certainly climb, if I were a buyer, I would buy soon.

"Beware Of Buying Short Sales"

Don King (RE/MAX Rancho Bernardo) — Mon, 10 Nov 2008 11:17:37 -0800

If you are in the market to purchase a home, you will discover that many properties on the market these days are "short sales". This means the owners are upside-down. They owe more on the property than they will net if they sell the property.

Whenever an owner who is upside-down accepts a purchase offer, it will always be a contingent acceptance that is conditional upon the approval of the lender(s). This is because the banks must agree to accept less money than is owed to them.

The upside-down seller is often willing to accept any offer. After all, they will get no money out of the short sale. Their objective is to protect their credit to the extent possible.

In reality, the bank is the actual seller as they are the only ones that can make a final decision on a purchase offer.

You would think that a bank would be motivated to get a property sold, even if it means they get less than is owed to them, so they don't have to foreclose and take over the property.

However, most of the people in the "Work Out" department of banks are just bureaucrats who have no real motivation to make a deal happen. In fact, they lean toward driving a hard bargain to show the bank's investors that they are trying to get the most money possible for the bank.

In the event the owner has multiple loans on the property, the lenders who hold the second or third trust deeds may get no money at all from the sale. So you can see why they might balk at approving the sale.

Once a seller accepts a short sale offer, they forward it to the bank. Often, the bank will come back saying the offer must be higher. Or, in some cases, the bank will not even respond to the offer for several months.

Even if a bank agrees to the short sale and provides a letter to document that decision, they will still demand that the listing agent continue to market the property for sale. And, even you are just a few days from close of escrow, the bank may come to you and say they have a higher offer and, if you want the house, you will have to up your price to equal the other offer or else they will refuse to close.

Technically, you could sue a bank that does this for breach of contract but the truth is they have more money than you and they have attorneys on staff to fight lawsuits.

A short sale can be a good deal for the buyer. However, for the reasons above, I always warn my buyer clients that attempting to purchase a short sale property is filled with challenges. It often takes extra time and can be a frustrating experience.

"Get That Roof Tuned Up"

Don King (RE/MAX Rancho Bernardo) — Mon, 10 Nov 2008 11:00:56 -0800

I've heard several predictions that San Diego will have a wet winter this year. If so, lots of homeowners will be faced with leaking roofs.

As the old adage goes, "An ounce of prevention is worth a pound of cure." So, if your roof has not been serviced in recent years, you should consider having a professional roofer take a look to see if there are any obvious problems.

Some roofers do what is called a roof tune-up. They will inspect the roof and replace any cracked, broken, slipped, or missing tiles. Many leaks occur around the vent pipes for the furnace or water heater so they reseal around all vent pipes.

Assuming you have no major roof problems, this process is usually just a few hundred dollars and a roof tune-up often comes with a one-year guarantee against leaks.

If you need a roof tune-up in San Diego but don't know a good roofer, call me at 858-487-2308 and I'll give you some advice.

Rancho Bernardo Real Estate Market Update October 2008

Don King (RE/MAX Rancho Bernardo) — Wed, 08 Oct 2008 09:40:28 -0700

John Trucillo, former Chief Economist for the National Association of Realtors, is the smartest person I've ever met on the subject of the real estate market.

In the September-October edition of "The Real Estate Professional" magazine, John stated that "Most of the metropolitan areas in the United States have housing markets that have stopped declining and are stabilized, poised for the upside of the cycle."

I believe he is correct, at least as far as San Diego and Rancho Bernardo are concerned. We are at or near the bottom of the market now.

So, how bad has this down cycle been? I have tracked market trends in Rancho Bernardo every month for many years. The average sales price for a detached home in zip code 92128 topped out in mid-2005 at $671,272. In the past six months, the average sales price was $573,521.

This means home values in this area have dropped 14.6% from the peak. It may vary a little from neighborhood to neighborhood but RB has done well compared to other San Diego communities where prices have fallen 30% or more from their 2005 high mark.

And the inventory of homes on the market in Rancho Bernardo is fairly low. For example, in 1995 at the bottom of our previous down market, there were between 90 and 95 detached homes in Seven Oaks on the market at any one time. Today there are just 29 Seven Oaks homes on the market.

The bad news: Many homes now on the market are bank-owned foreclosures that are priced very low. When those homes sell, they will probably drive values down a little further. Of course, this is a golden opportunity for potential home buyers.

I predict that, once the bulk of bank-owned properties are sold, the market will rebound quickly. Hopefully, our RB home values will be on the rise a year from now.

Frequently Asked Questions About Home Inspections

Don King (RE/MAX Rancho Bernardo) — Tue, 02 Sep 2008 15:41:10 -0700

When buying a home, one of the first things that you need to do after your purchase offer is accepted is a home inspection. Here are answers to common questions regarding home inspections.

When Should The Inspection Be Done? In California, unless a different timeframe was negotiated, you have 17 days from offer acceptance to complete any and all inspections and to notify the seller in writing of any conditions with the property that you disapprove. Since you will need some time to negotiate repairs, you should schedule your inspection as early as possible.

What Inspections Should I Do? You should be any and all inspections you feel are necessary to satisfy yourself as to the suitability of the property. You will be given a Buyer's Inspection Advisory that lists many of the types of inspections you might want to consider. At a minimum, you should hire a licensed contractor to conduct a physical inspection of the property. A professional inspector will thoroughly check the basic parts of the property and will give you a written report on what they find. If they find any "red flag" areas, they may suggest you have that area inspected further by a specialist.

How Should I Choose An Inspector? I have attended hundreds of inspections and I've seen really good inspectors and some really bad ones. You will find a list of inspectors that my clients have found to be very good on the Rancho Bernardo Yellows Pages at my web site at www.DonKingHomes.com. I suggest you use an inspector who is a member of the Certified Real Estate Inspector's Association (CREIA).

How Much Do Inspections Cost? Costs vary from inspector to inspector. Most inspectors charge based upon the size, age, and style of the property. Many inspectors charge extra for pool and spa inspections and some will conduct mold inspections at an additional charge. The charge for a small condo is normally in the $175-250 range. A 2500 square foot house inspection costs more like $350.

Who Pays For Inspections? The seller normally pays for the Pest Control Inspection. Virtually all other inspections are at the option and expense of the buyer. Also, the inspectors like to be paid at the start of the inspection so bring your checkbook.

How Long Does An Inspection Take? I have seen very good inspections done in an hour. And I've seen inspectors take 4 hours and still miss basic flaws. On average, an inspection of a small condo will take around one and a half hours. A newer house can normally be inspected in two hours or so. Older properties may take longer.

Should I Be There During The Inspection? You want to at least be present at the end of the inspection. If you choose to attend the entire inspection, that is fine but it is best that you don't follow the inspector around. The inspection period is a good time for you to take measurements or photos if you desire so you may want to bring a measuring tape and camera to the inspection.

How Will I Learn What The Inspector Finds? At the end of the inspection, the inspector will take you around and point out the major items found. In addition, you will receive a written inspection report with all of the findings detailed. Some inspectors give out the written report at the end of the inspection. Others will mail, fax, or e-mail the report later. In addition, the inspector should point out where to find the emergency shut offs for gas, water, and electricity.

What Types Of Findings Will There Be? The inspector may point out anything and everything that they see. The main categories of items found are:

1. Deferred Maintenance. This is areas that need immediate attention such as a leaking roof or a dishwasher that doesn't work.

2. Code Compliance. Inspectors will identify any instances where the property does not conform to current building codes. Keep in mind that the seller has no obligation to bring the property up to current building codes. For example, if a house was built in the 70s, there would not have been a code requirement at that time to have ground fault interrupt (GFI) outlets in the kitchen. But the inspector may point out that this is a good idea and suggest that you upgrade to comply with current code in this area.

3. Safety Issues. Occasionally, the inspector will note items that are a hazard to safety. Examples include breaches of the firewall between the house and garage; improper electrical wiring; and garage doors that do not have safety features such as auto reverse.

4. Government Retrofit. Often, state, city, or local governments will pass laws requiring sellers to make certain changes in the property at the time of sale. The State of California requires that water heaters be strapped for earthquake safety. The City of San Diego has a Water Conservation Retrofit Ordinance that requires the seller to certify that toilets, faucets, and shower heads comply with low water usage standards.

5. Red Flags. The inspector may notice that the electrical system seems to be screwed up or that the roof was not installed properly. In cases like this, they will probably recommend further inspection of this area by a specialist.

6. Cosmetic Items. Inspectors may point out blemishes in the paint, stains on the carpet, etc. These items do not normally affect the livability of the property but the inspectors often point out everything they see.

How Will Repairs Be Negotiated? After both you and I have read the inspection report, you will identify any items that concern you which you feel the seller should correct. You should concentrate on items that are beyond normal wear and tear. I will then prepare a written repair request and deliver it to the seller. The seller may agree to make all of the repairs you request, some of the repairs, or none of them. If there are items that you disapprove that the seller is unable or unwilling to correct, you must decide whether or not to cancel the purchase contract.

"Keep Those Pests Away"

Don King (RE/MAX Rancho Bernardo) — Mon, 11 Aug 2008 11:49:52 -0700

When you sell a house or condo, the buyers will require a Structural Pest Control Clearance as a condition of getting their loan.

This means your property must be free of wood-destroying pests such as termites and dry rot, which is a wood-eating fungus.

Lately, there seems to be an epidemic of both termites and dry rot in Rancho Bernardo. I don't know if this is a function of the wet weather or what, but nearly every house is infested to some extent with either termites, dry rot, or both.

So, what can you do to protect your property?

Keep all exterior wooden surfaces well sealed with paint or stain. Dry rot most often occurs when water penetrates the wooden facia, exterior beams, or patio covers.

It is hard to keep termites away but you can save yourself a lot of money if you discover them early. I recommend you have a pest company inspect your property at least every 3-5 years. Some companies do free inspections, under the assumption that they will get the business if termites are found.

If termites are caught early, they can often be treated locally with insecticide. However, once they get inside interior walls and other inaccessible places, you often must have the house fumigated (tented) to eliminate the termites.

If you are thinking of selling, it is wise to have a pest inspection early so you know what, if any, expense you face in order to get a pest clearance for your buyers.

You can find a list of good pest extermination companies on the "Rancho Bernardo Yellow Pages" at my web site -- www.DonKingHomes.com. Click the Rancho Bernardo button, then RB Yellow Pages.

Cut Back On Water

Don King (RE/MAX Rancho Bernardo) — Tue, 10 Jun 2008 08:47:36 -0700

You have probably seen the TV ads begging San Diegans to reduce water usage. I don't know the politics of it, but water supplies from other areas to Southern California have been cut back.

So here are three ways you can save water (and save some money).

1. Go Dry. By changing your landscaping, you can dramatically reduce your outside water usage. Some plants require a little water to get established but, once mature, thrive without being watered. For information on Xeriscaping, or drought-tolerant landscaping, visit www.xeriscape.com.

2. Fake Grass. Remember when Astroturf first came out? It was bright green, ugly, and obviously plastic. I recently visited a house that had the latest artificial grass. I walked on the "lawn" and would have never known that it was fake grass had I not been told. Consider the following about artificial grass: No water. No mowing. No weeds. No fertilizer. And it always looks perfect.

3. Improved Irrigation. Have you seen a neighbor's sprinklers on with half of the water running down the street to the sewer? Well-designed sprinklers are good for grass. However, for most other plants, a drip system combined with an electronic control will provide adequate water to the roots and dramatically save water. They require a little adjustment from season to season but that's a lot better than running out of water.

Beware Foreclosure Scams

Don King (RE/MAX Rancho Bernardo) — Thu, 08 May 2008 15:42:24 -0700

Sadly, due to the slowing economy and dropping home values, many homeowners find themselves facing foreclosure.

I hope this doesn't apply to you but, if it does, you should be aware that there are scam artists out there trying to take advantage of you during this emotional period.

The latest "California Real Estate" magazine issued warnings about a variety of foreclosure-related scams that have popped up.

Most people have never found themselves in this situation before. Suddenly, they find themselves dealing with complicated legal and financial issues that are not easily understood. When faced with Notice of Default, foreclosure, short sales, and possibly bankruptcy, homeowners can be vulnerable.

Foreclosure-related scams commonly involve con artists who present themselves as short sale consultants or foreclosure specialists.

A short sale is a sale where the bank agrees to accept less proceeds than are owed to them. The approval and documentation process is lengthy and often complicated.

A scammer may approach the owner and offer to help them out of their woes by negotiating the short sale with the bank, forestalling a foreclosure sale, or funding a rescue loan. They may appear to be your savior but beware!

Some scammers collect exorbitant up-front fees for their services and then disappear. Others trick owners into deeding the property over to them under the false belief that they can stay in the property and buy it back once they get back on their feet financially.

California has strict rules for foreclosure consultants. However, scammers seldom do what the law requires. For example, by law, the consultant must provide a written agreement on exactly what services will be provided and the costs. Plus there must be a three day right to cancel in the agreement.

It is prohibited for the consultant to acquire an ownership interest in the property. Plus consultants may not accept compensation prior to providing the service.

Under California licensing laws, a real estate broker license is required for anyone who negotiates loans or performs services for a homeowner in connection to mortgage loans.

The bottom line is, if you find yourself in financial difficulties regarding your home, be careful who you choose to assist you.

Home Buyer Tip - "10 Questions To Ask Lenders"

Don King (RE/MAX Rancho Bernardo) — Tue, 08 Apr 2008 16:54:15 -0700

There are tons of home mortgage lenders out there - banks, savings & loans, home loan companies, and even Internet lenders. So, how do you choose which lender is best for you. Here are 10 questions that you should ask a lender that may help.

1. What are your most popular loans and why?

2. Which type of mortgage program would best suit my needs and why?

3. Are your interest rates, terms, fees, and closing costs negotiable? (Beware that some lenders claiming to have the lowest rates charge absolutely outrageous "junk" fees.)

4. Will I have to buy Private Mortgage Insurance and, if so, how much will it cost and how long will it be required?

5. Who will service the loan - your bank or some other company? (It is a real pain to have your loan sold to a different servicing company.)

6. What escrow requirements do you have? (For example, how many days prior to close of escrow must your down payment be deposited?)

7. How long is your lock-in period (the timeframe in which the quoted interest rate and terms will be honored) and will I get a lower rate if interest rates drop after I lock-in the loan?

8. How long will the loan approval process take? (Normally in California, you must remove your loan contingency 17 days after your purchase offer is accepted. This is one big reason you want to be preapproved for a loan before you get serious about buying a home.)

9. How soon will the loan fund after I sign the loan documents? (A company that has to ship the documents out of state for final approval can result in your escrow closing late.)

10. Are there any charges or penalties if I prepay the loan?

"Disposing Of Old Electronics Equipment"

Don King (RE/MAX Rancho Bernardo) — Wed, 05 Mar 2008 10:21:06 -0800

Are you aware that, in California, it is against the law to throw electronics equipment, including computers, in the trash or in a landfill?

So, what should you do with electronic equipment that you no longer need?

If it is still in working order, the preferred solution is to donate the equipment to someone who can get some use out of it. You could give it to a friend, relative, school child, or even charity.

Another option for operating equipment is to sell it on e-Bay. It is amazing what people will buy.

If the equipment is inoperable and of no value, then you should dispose of it properly.

Residents of the City of San Diego (which includes Rancho Bernardo) can use the S. D. Hazardous Waste Transfer Facility on Convoy just north of I-52. They accept household hazardous waste on Saturdays between 9-3. Note that you must make an appointment by calling 619-235-2111 during the previous week.

For other disposal options, visit http://www.earth911.com/, where you can search for recycling centers by state, city, or zip code.

Also you can arrange to ship your old computer for disposal by visiting http://www.pcdisposal.com/. They charge $9 plus shipping costs.

One last point. Before you get rid of an old computer, always make sure any personal information on the disk is removed. Otherwise, you will be at risk for identity theft. And just deleting the files won't hack it.

There is software specifically designed to securely wipe data from a computer disk. Consider QuickWiper (http://www.quickwiper.com/) or Total Wipe Pro (www.WebMasterFree.com).

Homeowner Tip - "Beware Air Duct Cleaning Scams"

Don King (RE/MAX Rancho Bernardo) — Tue, 05 Feb 2008 13:02:53 -0800

"Consumer Reports" magazine is a fountain of information for the homeowner, from which paint to use when repainting your house to which appliance or car to buy.

The March 2008 issue has an interesting article on air duct cleaning. They warn readers to be wary of a scam that goes like this. You receive a phone call or postcard or flyer offering to clean your home's air ducts for $99. Sounds like a good deal.

Once you let them in the door, they tell you that, from inspecting your air ducts, they found mold or some other situation that is hazardous to your health. And, of course, they can fix it for a price. They may also pressure you to allow them to clean your carpet or other unneeded tasks.

If you refuse to buy additional services, then they do a cursory duct cleaning, collect their $99, and move on to the next sucker.

What you should know is duct cleaning is unnecessary in the vast majority of situations. The Environmental Protection Agency says there is no proof that cleaning air ducts prevents health problems.

Before you hire someone to clean your air ducts, it is recommended that you remove a few registers and shine a flashlight inside. If you see evidence of visible mold build-up or an infestation of vermin, you may want to have the ducts cleaned.

You also may want to have your ducts cleaned if someone living in your home is suffers from unexplained allergies or illness.

By the way, a professional duct cleaning for a 2,000 square foot house takes two people 4-6 hours and costs between $400-$1,000. So, right off, you can tell that the $99 dollar offer is a rip-off.

One other thing to keep in mind is having your ducts cleaned by the $99 shysters can actually be counterproductive. Using the incorrect tools can cause serious damage to flexible ducts or ducts with internal insulation.

Homeowner Tip - The Value Of Remodeling

Don King (RE/MAX Rancho Bernardo) — Wed, 12 Dec 2007 18:09:46 -0800

Each year, Realtor Magazine conducts a survey on the cost of various remodeling projects around the country and how much they add to the value of the house.

In 2007, the value of remodeling nationwide trended down compared to 2006. The reasons are the rising cost of remodeling and a slight depreciation in home values.

However, in California, remodeling still results in a healthy increase in the value of a home. But some remodeling projects give better value than others.

For example, replacing old windows with new dual-pane vinyl windows costs an average of $15,743. However, this increases the value of the house by $15,855. This is a 100.7% return on investment, not to mention the energy savings you will experience.

Similarly, a major kitchen remodel is expensive ($61,122 average) but can increase the value of your house by 100% of the cost or more, assuming you choose materials that are widely popular. Remodeling a bathroom does almost as well, giving a 96.6% return on investment.

However, not all remodeling projects are good investments. For example, converting a bedroom into a home office is a great idea if it allow you to start a home business or telecommute to your company. However, a buyer with different space needs may not prefer a home office over the extra bedroom. Therefore, a home office remodel only increases home value by 68.9% of cost.

Bottom Line - If you are remodeling your house for your own enjoyment, go for it. But, if your goal is to increase the market value of your home, you need to be selective in the projects you implement.

Rancho Bernardo Wildfire Follow-Up

Don King (RE/MAX Rancho Bernardo) — Sat, 10 Nov 2007 14:14:01 -0800

Fire Impact On Rancho Bernardo

Since the wildfires roared through two and a half weeks ago, I've driven through the neighborhoods that were hardest hit. Along the northern edge of RB, it looks like some neighborhoods were bombed. Some streets are closed to all but residents.

The latest count says over 300 homes in Rancho Bernardo were completely destroyed and about another hundred suffered significant damage. Many residents had only a few minutes to evacuate so they lost everything. And sadly, many who lost their homes now find they were under-insured or even uninsured.

Just in my RE/MAX office, 4 agents lost their homes and 6 more had damage extensive enough that they will not be able to move back home any time soon.

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Rancho Bernardo In Recovery Mode

In just two weeks, Rancho Bernardo has shifted from disaster mode to recovery mode. Dozens of organizations and thousands of volunteers have stepped forward to help the fire victims. It won't be tomorrow, but I'm convinced that it won't be too long before Rancho Bernardo is better than ever.

The focal point for the recovery effort is the Fire Victim Assistance Center at the Rancho Bernardo Glassman Recreation Center at 18848 West Bernardo Drive. There are over 40 booths manned by representatives of the federal, state, and local government plus civilian organizations.

Assistance is available to help fire victims with almost any need to include lodging, clothing, food, financial aid, utilities, mail, driver's license replacement, free telephone and internet, emotional support, and medical services.

Free child care is available at the Assistance Center so victims can concentrate on getting the services they need.

The California Insurance Commissioner has set up a booth to assist victims with any problems they may have with claims. And most of the insurance companies have a representative on site to assist victims. There is also a toll free insurance hotline at 800-927-4357 (HELP).

Scripps Health has set up a medical clinic on-site to provide free medical services.

The Small Business Administration is giving very low-cost loans to fire victims. Loans of up to $200,000 are available to rebuild or repair homes. The interest rate is just 2.9% and no payments are needed for five months.

Numerous local and state political leaders frequent the Assistance Center. Of particular note is the outstanding support we have received from City Councilman Brian Maienschein.

FEMA has a booth and every resident who was mandatorily evacuated should register with FEMA, even if their house was not damaged by the fire. Those given a mandatory evacuation order may be eligible for reimbursement for expenses for up to two weeks of lodging, food, and clothing. In addition, should later you experience any health problems from the smoke and ash, you want to be registered with FEMA.

A donation center has been set up in the parking lot of Casa de las Campanas, across the street from the Fire Victim Assistance Center. Here you can drop off any items you would like to donate to fire victims. Items specifically needed are food, clothing, and cleaning supplies.

A number of civic organizations have banded together to coordinate their efforts. Within the next day or so, a web site will be active to detail activities to assist fire victims. Visit http://www.rebuildingrb.com/. Some of you have asked me how you can contribute to the fire victims. Information will be provided on the web site on how you can make donations with basically all of the money going to local fire victims.

The Westwood Club has been very active in helping fire victims. If you have furniture, appliances, or other large items you would like to give to a fire victim, they have a bulletin board to advertise what is available or what specific victims need. They are also running a project to collect holiday ornaments for those who lost all their Christmas and Hanukkah decorations in the fires. The number at the Westwood Club is 858-485-6300.

One really helpful booth at the Assistance Center is run by Project Phoenix. This is a volunteer organization from Scripps Ranch with members sharing their experiences after their homes in Scripps Ranch were devastated in the 2003 fires. The information they have provided to Rancho Bernardo fire victims on subjects like what to expect and how to deal with their insurance companies has been invaluable. Thanks Project Phoenix!

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Southern California Fire Photos

The Los Angeles Times has photos of the fires around Southern California on their web site. To see them, click on

http://www.latimes.com/la-ma-x28oct28-pg,0,7487742.photogallery?coll=la-home-center&42

Photo number 27 is Lancashire Way in the Montelena neighborhood. This is the street President Bush visited two weeks ago and will give you an idea of the destruction Rancho Bernardo suffered.

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Beware Of Scams

A disaster brings out both the best and worst in people. It is sad but many vultures are trying to prey on both fire victims and those who want to help them.

If your house was destroyed or damaged, be very careful who you hire to help you rebuild. There are con artists posing as contractors who will take your money and disappear. Before you hire a contractor, ask for their contractor license number and check them out with the San Diego Better Business Bureau at 858-496-2131. Also ask for a list of recent customers and call them for feedback on the contractor.

You should always get a written contract specifying exactly what the contractor will do and laying out the payment schedule. Never pay all of the cost up front.

There are also scam charities that have sprung up. Most citizens are very generous with donations to assist fire victims. However, it is important that you give your money to an organization that can be trusted to get it to those who need it.

My advice is do not respond to anyone who shows up at your door saying they are collecting money for fire victims. Likewise, you don't respond to anyone who solicits money by telephone. I believe you will be able to find reputable charities that will get your donations directly to the fire victims at http://www.rebuildingrb.com/.

San Diego Wildfires - Impact On Rancho Bernardo

Don King (RE/MAX Rancho Bernardo) — Thu, 25 Oct 2007 16:14:14 -0700

Fire Impact On Rancho Bernardo

The Witch Creek Fire, which originated between Ramona and Julian on Sunday, roared through San Pasqual Valley early Monday morning along the northern edge of RB. It was pushed by Santa Ana winds gusting up to 60 mph with the fire sometimes moving at 50 mph.

Residents in the areas of The Trails, Oaks North, Montelena, and The Greens were awakened between 3-6 am and told to evacuate immediately. Some had less than 5 minutes to get out.

I haven't seen a final list of addresses yet but I know that mre than 400 houses in RB were destroyed, including at least 64 in The Trails and at least 69 in Montelena being a total loss.

The fire passed under I-15 where the neighborhoods of Westwood and Westwood valley lost at least 143 houses. All of Rancho Bernardo west of I-15 was given a mandatory evacuation Monday.

Most RB evacuees still have not been allowed to return to their homes.

I haven't seen a final list of addresses yet but it is reported that 400-500 houses in RB were completely destroyed. In addition, the 400-unit La Terraza apartment complex in Westwood suffered extensive damage.

Many of our neighbors are really hurting at this point and their lives will be turned upside down for years. So help them in any way you can. Fortunately, there were no fatalities in RB.

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Proud Of San Diego

First, let me stipulate that I think the San Diego fires are in no way comparable to Hurricane Katrina. However, the press has already broadcast stories comparing how this disaster is being handled compared to New Orleans. I guess it was inevitable.

I realize that New Orleans has no power, water, or cell phones. And it was considerably colder there than here. Plus all of New Orleans and the Gulf Coast was affected whereas the fires only affected about 40% of San Diego County. So, tons of San Diego evacuees were able to move in with friends or relatives in other parts of the city.

However, let there be no doubt that this has been a major disaster and the largest evacuation of people in the history of California. And, having observed the proceedings very closely for three days, I have to say, I'm very proud of San Diego.

Over 500,000 people in San Diego County were forced to vacate their homes under mandatory evacuation orders. Many had as little as 5 minutes to get out. And another 200,000 complied with voluntary evacuation orders. As of now, only a handful of those people have been allowed back into their homes. The vast majority have no idea whether they even still have a home or not.

Evacuation shelters were set up all over the county at schools, churches, recreation centers, and the largest being at Qualcomm Stadium, where the Chargers play. There is no comparison between the shelters here and the Superdome in New Orleans during the Katrina disaster.

The shelters are clean. There is plenty of food and water. Temporary schools have been set up for the kids. Over 5,000 cots were brought in for evacuees to sleep on. There is entertainment. And thousands of residents who did not have to evacuate have came out to volunteer to help in any way possible.

Another notable difference between our fires and Katrina is the way our local government leaders jumped in, worked together, and solved problems. Normally, I'm skeptical of the ability of government but, at least in this case, the officials at all levels parked their egos, worked together, and got the job done. It was pretty impressive.

When it was decided during the middle of the night on Sunday that 130,000 homes had to be evacuated almost immediately, there was no way the police department could handle it all. Fortunately throughout San Diego, almost every neighborhood has a Neighborhood Watch organization. Many citizens awoke in the early hours of Monday with a member of their local Neighborhood Watch telling them they had to get out.

Also, a Reverse 911 system has been set up in San Diego. In conjunction with all of the telephone companies, local governments were able to have recorded phone calls to every home phone and cell phone in the evacuation areas. It worked very well. In addition, a special non-emergency 211 phone number was set up so anyone could call to get the latest on the fires, evacuation sites, and road closures - all run by volunteers.

I'd also like to point out that the local citizens did not sit around waiting for someone from the federal government to come save them. They took responsibility for their own safety and well-being. They protected their property where possible. There were tons of stories of neighbors helping each other. When ordered to evacuate, they did in a calm and responsible manner. And, those who had to go to a relocation facility made efforts to insure it was well-organized and fully-equipped.

I have not heard of a single incident of looting in the evacuated areas. There may have been an isolated case or two that I have not heard about but there absolutely was none of the anarchy displayed in New Orleans after Katrina.

This incident has made me proud to be a San Diegan!

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What Caused The Fires

In the western United States, there are wildfires every summer. And San Diego was hit with the huge Cedar Fire just as recently as 2003.

However, this fire event was different. In fact, they say a variety of circumstances occurred to make this the perfect firestorm.

First, we are in the sixth year of drought in San Diego County and the vegetation in the canyons was a dry as it has ever been.

Second, after the 2003 fires, grass has grown in the areas burned. This is like tender to a fire and helped the fires spread very fast.

Third, we have experienced a severe Santa Ana condition. For those of you who may not be familiar with Santa Anas, this is when a strong high pressure area passed to the north. The clockwise winds bring hot dry air off the deserts to the east rather than the normal relatively damp prevailing winds from the ocean.

The Santa Ana conditions began Sunday with winds gusting up to 60 mph or more. The relative humidity dropped to as low as 4% and air temperatures shot up into the 80s.

So the conditions were ripe for fire disaster. There were 14 separate fires raging across Southern California during the past four days. Some were caused by power lines downed by the Santa Ana winds. The authorities know that one was initiated by a house fire and one by a car fire. One was caused when fire authorities set a back fire to protect an area and the back fire got out of control. And, sadly, at least one fire was cause by arson.

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Wildfire Lessons Learned

After the 2003 fires, I published lessons learned in two editions of my newsletter. A little later, I will probably republish that information after updating it.

Meanwhile, here are some lessons learned from this fire disaster.

1. Destruction was spotty. You would think that, when a fire sweeps through an area, that all houses would be destroyed. But the fires tend to follow the canyons where there is dry brush, trees, grass, or other fuel. The houses at most risk were the ones backing to the canyons.

However, some houses well-away from canyons were also destroyed. Apparently this was caused by burning embers being carried by the winds. When a hot ember landed on a wooden portion of a house, that house was in trouble.

It is not unusual to find a house that burned to the ground. Then the next four or five houses on the same street are fine. And then another house will have burned.

2. Wood Shake Roofs. For about 20 years, it has been illegal to build a house with a wood shake roof. And when you replace a wood shake roof, you must use a fire-resistant material rather than wooden shakes. However, we still have a number of houses with old wood shake roofs - not a good idea.

3. Ash is everywhere. During the fires, the air was so thick with ashes that it almost seemed like night during the middle of the day. The air quality was so poor that anyone with breathing difficulties was urged to stay indoors. Now that the fires are settling down, there is a coating of black or grey ash on everything.

It is recommended that you use a brush to remove ash from vehicles. Shop vacuums often have the capability to act as a blower so you can blow ash from areas like garages. It is suggested to use a hose to wash down patios, patio furniture, etc. However, much of San Diego continued to have a burnt smell for months after the 2003 fires.

4. Reimbursement For Temporary Lodging. After the 2003 fires, the state of California passed a new law allowing those under mandatory evacuation orders to file a claim on their homeowner insurance policy to be reimbursed for expenses incurred to include lodging and meals. Check with your insurance company.

5. Insurance Claims. If your home was destroyed or damaged, you want to file a claim with your insurance company right away. Hopefully, this will work better than in 2003, when many insurance companies balked at paying legitimate claims. If you have to sue your insurance company, I believe you have only 12 months to file the suit.

6. Rental Properties. There is going to be a huge demand for properties to rent as people who lost their homes seek a place to live while they rebuild. If you have a property you can make available, I can put you in touch with a property manager to help you rent it.

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Evacuation Dos & Don'ts

Some San Diego homeowners have had to evacuate their homes due to wildfires twice now in the past four years. We live in a desert and Santa Anas are normal so we should all do some planning in case it ever happens again.

Here are some suggestions:

Do - Make a list of things you want to take with you in the event you have to evacuate. When you have only 15-30 minutes to get out, that is too late to try to decide what is important to take with you. In my next blog, I will give you a list of suggested items to take with you if you have time.

Do - Start packing up early. If you know there are Santa Ana conditions and if you know that there are one or more fires within 50 miles of your home, go ahead and start getting ready just in case you have to evacuate on short notice. I can tell you that fires can move fast. The Witch Creek fire spread from Ramona 12 miles away to Rancho Bernardo in just a few hours.

Do - Evacuate when told to do so. The only complaint I heard from the firefighters during this whole episode was some people who were ordered to evacuate refused. Then, when the fires arrived, firefighters had to be diverted from protecting properties to rescuing the lives of those who should have already been out of the area. The lives of you and your family are far more valuable than any personal possessions you stay behind to save.

Don't - Leave your house unlocked. One of the local TV stations put out guidance that you should leave your front door unlocked when you evacuate so the police or firefighters can gain easy access if necessary. This is bad advice. Believe me, if police or firefighters need to get into your home in an emergency, they can.

Do - Leave a note. Just before you evacuate, tape a note to the inside of a window near your front entrance with the following information: Name; Date/Time of Departure; Where you intend to go: and Cell Phone number or other way to reach you.

Don't - Go To Work. Unless your job is essential to public safety, kiss work off. Your family probably needs you more than your employer does. Plus, during an emergency, the less traffic on the roads, the better.

Don't - Use Cell Phones. During a crisis, cellular systems tend to get overloaded. First responders often have radios but more and more cell phones are the primary method of communication during an emergency. So take your teenagers' cell phones away from them for a few days.

Don't - Turn Off The Gas. At least one radio station put out the suggestion that, before you evacuate, you should turn off the gas to your house. However, firefighters have the ability to turn off the gas to entire neighborhoods or blocks if necessary. But sometimes they need the gas left on so they can burn off residual gas at properties that have been destroyed or damaged.

Don't - Use Water. Water pressure is essential to effective firefighting. So, do what you can to conserve water during wildfires. For example, turn off your sprinklers.

Do - Conserve Electricity. San Diego County is part of a vast multi-state electric grid. During wildfires, it is common for the electrical trunks coming to San Diego from other areas to be destroyed. So, everyone needs to reduce power usage during a crisis.

20 Point Marketing Plan To Get Your House Sold

Don King (RE/MAX Rancho Bernardo) — Thu, 18 Oct 2007 19:08:43 -0700

Selling a home in today's challenging real estate market requires more than just a sign in the yard and an ad in the newspaper. Sure, you may be able to sell a house that way but you won't get the highest possible price and you could waste a lot of time.

A technology-based marketing approach is needed to expose the home to the maximum number of qualified buyers. And, since over 85% of all qualified buyers work with a real estate agent, the property must also be marketed to brokers and agents.

Below are the 20 points of my marketing plan. I am so confident the seller will be happy that I always give the seller a written Guarantee of Service that says, if they are not completely satisfied with my efforts, they may cancel the listing at any time and at no cost!

My goal is the same as that of my seller clients -- to attain the highest price for their home in the shortest time and with the least inconvenience to them.

1. Preparing For The Market. To command a premium price, the property must be put in top condition prior to placing it on the market. I give my sellers specific guidance on how to prepare their home and how to stage it prior to showings so the home will help sell itself.

2. Digital Photography. I take between 30-50 digital photos of each property and the surrounding area. The best pictures will be computer-enhanced using photo imaging software and used with the Internet, virtual tours, e-mail, and with desktop publishing to create a variety of professional marketing materials for the home.

3. The Internet. * Out-of-town buyers account for many home sales in San Diego. I employ the Internet to promote my listings worldwide, 24 hours per day, 7 days per week. My clients' homes are featured on my award-winning web site, www.DonKingHomes.com, plus MSN House and Home, RBHomes.com, Realtor.com, Yahoo.com, Living.com, and CyberHomes.com.

4. Virtual Tours. * I design virtual computer tours to include still photos, panoramic photos, and even a floorplan of the home. I e-mail a hyperlink to the virtual tour to the seller, hundreds of buyer prospects, and all of the top local real estate brokers. Many buyers see the virtual tour before they ever come to the home.

5. Custom Color Brochure. * I will employ desktop publishing to create a custom brochure including multiple color photos to emphasize all of the best amenities of the home. The idea is to make the best possible impression so that, after seeing dozens of homes, buyers will remember this one!

6. Home Book. Not all buyer's agents will be knowledgeable about the home and the area. So I create a home book, customized for this specific listing, to answer buyer questions about the property, community facilities, schools, and the surrounding area. The objective is to provide buyers all of the information they need to make the decision to purchase this home.

7. Key Safe. The Supra electronic key safe provides state of the art security while ensuring the home is accessible for agents to bring their qualified clients. Statistically, you get 40% more showings by using a key safe.

8. Multiple Listing Service. * Believe it or not, not every agent uses the MLS. I immediately submit the details of my listings along with color photos to the Multiple Listing Service computer. Information is available 24 hours per day to over 11,000 agents in San Diego County.

9. Sign. * My bright red, white, & blue "For Sale" sign, with the distinctive RE/MAX balloon logo, creates more buyer interest than any other advertising medium. Because my office maintains a large inventory of homes, our signs generate many buyer calls.

10. Brochure Box. * A brochure box on the signpost in front of the home allows the drive-by buyer to get information that may excite them to call for a showing.

11. Hot Sheet. In San Diego, the most effective place to advertise new listings is on the "Hot On The Market" page of the San Diego Union Tribune newspaper, also known as the "Hot Sheet". This is where many homebuyers look each Sunday for new homes on the market. My listings are featured in the "Hot Sheet" for four weeks, the maximum time allowed.

12. Marketing To Agents. I hire a professional messenger service to deliver copies of my listing brochures to all local agents. For example, the brochure on a Rancho Bernardo home would be delivered to 720 brokers and agents in Rancho Bernardo, Carmel Mountain Ranch, Sabre Springs, Poway, 4S Ranch, Penasquitos, Scripps Ranch, and Mira Mesa. The odds are that one of these agents will produce the buyer for the home.

13. Broker Open House. Soon after I take a new listing, I hold it open for all agents. In addition to creating broker interest, this also reduces the number of agents who will straggle through the home to preview it later.

14. Broker Meetings. I personally brief hundreds of brokers and agents on the key features my listings and distribute house brochures at local broker meetings. I am a member of the Poway and San Diego Realtor associations and I run the Rancho Bernardo Real Estate Brokers Association.

15. Newspaper and Magazine Advertising. My listings appear every month in the RE/MAX Homes magazine. In addition, I advertise in the San Diego Union Tribune, Rancho Bernardo News-Journal, Poway Chieftain, and Corridor News.

16. Target Marketing. Typically, "move-up" buyers purchase a home that costs 50% more than their current home. I determine which neighborhoods would have owners that may be interested in the home so I can make sure they are aware of my listing.

17. Neighborhood Involvement. Surveys show that 8-10% of all homebuyers know someone who lives within two blocks of the house they buy. I make sure the neighbors know about my listings so they can tell their friends.

18. Open House. I hold the house open to the public to entice prospective buyers. I maximize attendance with classified advertising and lots of open house directional signs.

19. Status Reports. I give my sellers regular status reports to include actions taken, actions needed, current and upcoming advertising, showing feedback, and changes in market conditions. This way we can adjust the marketing strategy and pricing as necessary. My sellers can choose whether they prefer the reports to be via telephone, mail, or e-mail.

20. Other Strategies. When all else fails, I have several marketing tricks up my sleeve to generate interest in the home. I may use refreshments or cash drawings to entice agent showings. The bottom line is, 99% of my listings have sold since 1997 and I work hard to make it 100%. In addition, my listings sell for more money on average and faster.

* Indicates a feature that will market your property 24 hours per day, 7 days per week.

"Using A Virtual Tour To Sell Your House"

Don King (RE/MAX Rancho Bernardo) — Thu, 23 Aug 2007 09:50:26 -0700

The latest National Association of Realtor's Survey Of Home Buyers discovered that 77% of all home buyers start their home search on the Internet.

They also learned that buyers always prefer listings that have multiple photos or, even better, a virtual tour.

So, how can a virtual tour help you to get your house sold? Here is how I have made virtual tours a central part of my marketing plan.

First, I use VisualTour.com because it gives me total control over the tour. I can use up to 50 photos of the property, neighborhood, and community. I can use still photos or I can stitch together multiple photos to show panoramic shots of wide views, large rooms, etc. And I can change the photos whenever I want.

When I upload a tour to VisualTour.com, I'm given a hyperlink that can be used by anyone to quickly launch the tour for that property.

I use the virtual tour link in a variety of places. I place it on the Multiple Listing System so that whenever a buyer's agent e-mails one of my listings to a prospective buyer, that buyer can view the virtual tour.

I place the link on the listing at my own web site. Then I place a sign rider on the for sale sign at each listing that says, "See A Virtual Tour At http://www.donkinghomes.com/." This way a drive-by buyer can see the tour.

I hold a broker open house for real estate brokers and agents to see my new listings. Prior to the broker open, I e-mail an invitation to the top 400 agents in my area inviting them to the open house. Knowing that many of them will be unable to attend, I include the virtual tour link and ask them to review the tour. Plus I suggest they forward the e-mail to their buyer prospects who might be interested in that property.

Realtor.com is the world's largest real estate web site. I enhance all of my listings on Realtor.com to include the virtual tour link. On average, each of my listings is viewed over 5,000 times on Realtor.com. Many prospective buyers also view the virtual tour.

Whenever an agent or prospective buyer calls on one of my listings, I offer to e-mail them the virtual tour link.

I feature one of my listings in each of my e-mail newsletters to about 800 prospective buyers, always including the virtual tour link.

I believe virtual tours are a key tool that must be used extensively to get a house sold in this increasingly on-line real estate market. Proof: In our current real estate market, only 53% of new listings sell. I've gotten 97% of my listings sold in the past seven years.

Rancho Bernardo Information

Don King (RE/MAX Rancho Bernardo) — Wed, 01 Aug 2007 12:00:14 -0700

I recently had an out-of-town buyer comment that the information on my web site is invaluable to anyone considering moving to Rancho Bernardo.

It dawns on me that it is probably valuable to others too. Even if you already live in Rancho Bernardo, I suspect you will find information that you do not already know.

There are over 50 pages on my site and almost all of it is specifically about Rancho Bernardo. So here is a summary of what you can find at http://www.donkinghomes.com/.

Living In RB - What it is really like to live in a 52-week vacation environment.

Things To Do -

Eating Out - Favorite restaurants.

Shopping - Where can you shop till you drop?

Recreation - Golf anyone? How about gambling or taking a hike?

Community Centers - A description of each of RB's 11 community centers.

Fun For Kids - Everything from little leagues to fencing.

Calendar Of Events - What are the best recurring events in our area.

San Diego Links - News, Weather, Education, Entertainment, & Sports

Seniors In RB - Why RB is such a great place for seniors.

Neighborhoods - A neighborhood map of RB with a web page and virtual tour for each of the 14 RB neighborhoods.

Working In RB - For those still in the work force, where are the jobs?

Real Estate - Homes for sale and tips for buying or selling a home in RB plus information on the services I provide.

RB Yellow Pages - Listings of all kinds of local service providers from painters and handymen to fitness centers and hotels. All are recommended after personal use by me or my clients.

FAQ - Answers to the most frequently asked questions about Rancho Bernardo.

Poway Schools - Rancho Bernardo is blessed to be in one of the top public school districts in California. I provide information on the Poway Unified School District and links to the PUSD web site.

Homeowner Tip - "Keep Your Firewall Intact"

Don King (RE/MAX Rancho Bernardo) — Wed, 18 Jul 2007 18:44:53 -0700

Recently, one of my listings was inspected by a home inspector I had not met before. This guy is a highly-qualified licensed contractor and really knows his stuff.

We had an interesting conversation. He told me that, in addition to performing home inspections, he also works for insurance companies such as State Farm and All State. When a house has been destroyed by fire, they hire him to investigate and determine whether the property had defects that void the insurance coverage.

Building codes require that houses be built with a firewall between the garage and the living area of the house. Since many house fires begin in the garage, the firewall in engineered to inhibit a fire in the garage from spreading to the living area for two hours.

However, many homeowners breach the firewall, making it much less effective in slowing the spread of a fire.

Some owners install a pet door in the door leading from the house to the garage. This door is an integral part of the firewall and cutting a passageway to let pets out also allows fire in.

Also, the door to the garage must be equipped with an autoclosure device. This is to insure that the door is always closed. Obviously, if the door is open, it is easy for a garage fire to spread into the house. However, some owners remove or disable the autoclosure device so they can leave the door open.

Other owners install pull-down ladders to the attic portion of the garage. This can be a problem because the ceiling of the garage may be part of the firewall.

Bottom line: If an inspector discovers that the fire started in the garage and there was a breach in the firewall, the insurance company will not honor the claim! So keep your firewall intact.

What You Should Know About Home Staging

Don King (RE/MAX Rancho Bernardo) — Sun, 01 Jul 2007 09:31:58 -0700

"Staging" is the hot buzz word these days in the real estate world. Staging refers to actions you can take or hire to be done that will make your property more appealing to prospective buyers.

A whole new profession has popped up as people with interior design backgrounds become specialists in staging a home for the market.

In Northern California, home staging is far more prevalent than in San Diego. Many owners in the Bay Area spend between $5,000 and $10,000 with a professional home stager to prepare their home before it goes on the market.

If you decide you want to hire a professional to stage your Rancho Bernardo home, I can recommend some local homestaging experts. Items included in a professional home staging may involve installing new carpet, fresh paint, rearranging furniture, removing furniture, renting furniture for vacant properties, and using decorative accent pieces.

I find that most owners are hesitant to invest that amount of money before they put their home on the market. On the other hand, most homeowners are willing to expend some effort and a limited amount of money to "stage" their house themselves. So here are five basic staging actions you can take to get your house sold faster and for more money.

1. Clean and Declutter. A 2003 study by HomeGain documents that a home which was simply cleaned and decluttered before it was placed on the market sold for an average of $2,300 more that a home that was not. If you were selling a used car, you would probably have it detailed before you advertised it. So why not detail your house?

A dirty kitchen or bathroom is the absolute kiss of death if the buyer is a woman. Unless you are an outstanding housecleaner, it would be a good idea to hire a professional cleaning service to deep clean your home prior to placing it on the market. And having them come back every week or two while the home is on the market makes sense.

Regarding decluttering, a good rule of thumb is to remove any item that is smaller than a football. You are going to have to pack everything when you move anyway so go ahead and box up small items and put them in the garage or in a ministorage unit.

2. First Impressions Matter. The first thing a prospective buyer will see when they come to your home is the yard and front door. The front door should be clean and shiny. The yard should be well-maintained. Put a pot of colorful flowers outside the front door.

Also any room that is visible upon entering the front door must be ship-shape! If the buyer finds the home warm and inviting, you have a shot at a sale. If their first look turns them off, you can forget ever getting an offer from that buyer.

3. Depersonalize. I've seen very nice houses that did not sell because they were so personalized that buyers could not visualize themselves living there. When a buyer visits your property, they can easily be distracted by family photos, collections, or unusual items. You want the buyer to concentrate on the house and not the wall full of pictures of your kids or ancestors.

4. Light Is Important. There is no such thing as a house that is too bright. Maybe one buyer in a thousand is sensitive to bright light. Stage your home for the other 999 buyers. Turn on every light in the house. Don't worry about running up the electric bill. If there is a dark corner in your house, put a lamp there and turn it on.

If you have light bulbs that aren't working, replace them. If you have florescent bulbs in the kitchen or bathrooms, the plexiglass screens for the light fixtures need to be clean and clear. If they are yellowed or broken, replace them. They are cheap.

The other sources of light are windows, skylights, and Solatubes. Skylights need to be clean. Remove the lens on a Solatube and clean out the bugs. Regarding windows, they need to be clean and you should open all window treatments to maximize incoming light.

5. Rearrange Furniture. The way you live in a home and the way a home should look when it is on the market are different. Take a critical look at each room of your house and imagine how it looks to a buyer.

The most common problem I see is rooms that are overfurnished. Too much furniture makes rooms look smaller. Go to some model homes and see how they are furnished. Builders actually use a trick of decorating models with furniture that is slightly smaller than normal to make their homes look more spacious.

If you have too much furniture in a room, consider removing one or more pieces.

Also decide if the appearance of a room could be improved by rearranging the layout of the furniture. Guys, don't hesitate to get a woman's opinion.

So, that's about it. If you are thinking of putting your Rancho Bernardo house on the market, Susan and I would be glad to meet you and give you our specific recommendations you should consider to stage your house for a successful sale.