By Patrick McCarran

Mason-McDuffie Real Estate

The primary reason to buy now is that mortgage rates are still at historic lows. This is driven largely by the continuing market corrections after the Fed pulled back on their bond purchases and the stock market continues to stabilize. However unbelievable low rates will not last forever and can increase literally overnight. The Fed has made it clear that they plan to continue to raise the prime rate and while this does not directly effect mortgage rates it will effect the banks bottom line and almost definitely trigger an increase in interest rates.

We tend to make financial plans looking backward, learning the lessons of our past experiences but ignoring the future. That’s why we don’t buy stocks at the “bottom” but instead when they are “hot”.

East Contra Costa housing is still in my opinion undervalued and not a “Hot Market”, yet.

The why you should own is relatively easy. Rents will continue to rise and are unpredictable, when you own you know what the payments will be and it your home not the landlord to dictate rules. Mortgage interest is still the largest deduction for the middle class. Mortgage interest rates remain historically low and there is affair amount of inventory from which to choose. Long-term homeownership continues to be one of the best ways for the typical American to build wealth.

So what’s holding you back? Down Payment? Many people are intimidated by the widely publicized 20-percent down-payment requirement. They don’t realize that there are many federal programs designed to help homebuyers, and even those who have lost their homes to foreclosure.
For example, Freddie Mac and Fannie Mae have loans available to first-time buyers with as little as 3-percent down payment and the FHA has similar programs that require 3.5 percent down and payment. If you qualify there are a number of programs and grants that can help with the down payment. With a seller credit for closing costs I have gotten buyers into a home for as little as $1500 out of pocket. For veterans, the VA program has no-down-payment loans available for qualifying military members and veterans that can close with almost no out of pocket money.

Why wait? What’s the worst that could happen if you buy a home now? You’ve already seen it, the 2007 mortgage crisis. It will take generations, if ever, before the government lets the banking systems get that far out of hand again. It is far more likely that home prices will steadily climb as they have been. Americans are getting back to work and leading the global economy out of stagnation. So don’t be blinded to the future by your past experiences. The American population will continue to grow and build families of all types, creating more demand for housing. Don’t view your home as a trading vehicle or a one-way-up investment. Instead, look at the home-ownership benefits that are mostly forgotten by today’s potential homebuyers — the chance to build equity (instead of throwing rent down the drain) and the opportunity to customize your own environment.

That’s what has always motivated Americans to own their own home. And it isn’t going to change in the long run.

If you want to get started or have any questions give a call or send me an email and Debra Westlund (925) 783-2052 and Patrick McCarran will be happy to help you get started, set up an action plan for today or the future.  The time is now give us a call.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com.

© 2016 Mason-McDuffie Real Estate is an independently owned and operated franchise of Better Homes and Gardens Real Estate LLC. Equal Housing Opportunity.

By Patrick McCarran

Fall is here and with it cooler weather and shorter days. It’s also the perfect time to prepare your home for the winter months that lie ahead. The most common fall home improvement projects include fencing, interior and exterior painting, window maintenance, flooring, and roof repair, all of which are in preparation for El Nino and the winter weather that will soon follow. Performing regular maintenance of your home protects your home’s value and can prevent major repairs which in turn can save money and avoid stress that comes with emergency projects.

Roof and Gutters

Check for slipped tiles and debris which can impede water flow and cause leaks. Trim back all tree limbs and vegetation away from the roof and remove debris, such as leaves and sticks from your gutters and downspouts and ensure that all the drains spouts are working and directing the flow of water away from the house and into the ground or to the storm drain. Clogged gutters don’t allow water to drain away from the home which may lead to serious damage to a home’s roof, walls or foundation and overflow will cause dry rot of the eaves and fascia boards. Tree branches rub on the roof and can break loose tiles or wear shingle roofs.

Heating and Cooling System

If you have a forced warm-air heating system, first thing replace your intake filters. This helps to improve efficiency as well as prevent airborne dirt from circulating throughout your home this should be done at least quarterly. While you are doing this check the exhaust vent and air shutter openings for dirt and dust. Clean any lint and dirt from the motor and burner. Vacuum air passages and check and replace, if necessary, fan belts. Regular maintenance improves air quality and promotes better air circulation which reduces wear and tear on your furnace and saves you money.

Doors and Windows

To help control heating costs, repair or replace weather-stripping around door bottoms and jambs and window frames. Also check for cracks in the stucco or gaps in the siding and make sure that you caulk or repair them to prevent moisture or cool air from entering.

Fireplace

Before you light the logs and get ready to settle in front of a cozy fire, inspect your fireplace. Clean the chimney flue and if needed inspected and repaired. Check the seal on your flue, which is designed to keep out drafts. Replace the seal if it is loose or damaged.

In addition, before inspecting, cleaning or making any repairs refer to your owner’s manual for all equipment for proper instructions, which should be the final authority on any maintenance.

Painting

Inspect for peeling or chipped paint. Bare wood or metal should be cleaned and spot painted to protect it from any moisture penetration which leads to dry rot and mildew. Hammer in any popped nail heads and paint them. Stucco cracks should be patched with caulking and painted.

Inspect for gaps where trim boards come together end-to-end and where it meets siding or stucco. Use a good quality water resistant exterior caulk to seal all gaps to stop moisture intrusion and insects.

Landscaping

Now is a good time to trim back any overgrown shrubbery and ground cover, keeping away from the home and fences where it tends to trap moisture and promote the deterioration of the wood and exterior finish of the home.

I know what you are thinking, “Wow when do I have time for all of this?” The answer is to break it up into projects and do one each week, by starting early you should have plenty of time, and of course you can always call a service professional to have it done for you. Regular maintenance can help you keep your home in good shape and protect against major repairs maintaining value in your most valuable asset.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536 or www.CallPatrick.com.

Mason-McDuffie Real Estate is an independently owned and operated franchise of Better Homes and Gardens Real Estate LLC.. Equal Housing Opportunity.

By Patrick McCarran

Berkshire Hathaway HomeServices

Know your options! If you are struggling to make ends meet or have negative equity in your home it is important that you know what options are available to you. There are a number of different courses of action that may me made to help you get in control of your financial situation. These include bankruptcy, modification, short sale and foreclosure.

Most lenders are now offering modifications to homeowners in distress. These are often more of a temporary solution as the banks seldom offer principal reductions. Usually the bank will offer to lower you payment over a fixed period of time. The problem with these terms is that without a principle reduction you are not building equity. In today’s market where a homes value may be upside down or have a negative equity of over 70% current appreciation projections show it would take years just to break even on the balance of the loan. This makes your situation like a long term lease.

Foreclosure or simply walking away from the home is another option. There are of course pros and cons to this approach. The legal repercussions can vary depending on each individual’s situation. California is a non-recourse state and has what is called a one action rule which basically states that if your homes is foreclosed and sold by the trustee that is the only recourse for the lender. Which means, generally speaking you can walk away with little or no legal consequence. These rules can apply to primary homes and second or investment property.

However if you have a second loan it could very well be a recourse loan which means the lender can, and most likely will pursue other assets and wages. A short sale will prevent this. If you are considering a default I highly suggest you look into a short sale an option. Choosing a short sale will put you back in control of your life and when you need to move. Because a short sale is perceived as a proactive choice by the borrower the credit compiling agencies tend to score it higher than a foreclosure or a deed-in-lieu.

I would always advise my clients to seek advice from an attorney under bankruptcy protection a well. Many homeowners have incurred a substantial amount of debt in this economy and a bankruptcy may be a good option to help you afford to keep your home by eliminating burdensome debt. Although legally you may not need to pursue a short sale after the bankruptcy, in regard to credit building it is still a good option.

Let me be clear, I am not advocating to anyone to ignore their financial obligations. What I am saying is that you should look at your own situation and make the decision that is best for you and your family and not the bank. It is very important that you should be informed about your options and possible consequences.

Loan modification, Short Sale or Strategic Default Which one is right for you?

Take control of your situation and call Patrick today I am an experienced Short Sale agent and we can discuss and compare your options with no obligation.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536 or www.CallPatrick.com.

© 2015 Berkshire Hathaway HomeServices Drysdale Properties is an independently owned and operated franchisee of BHH Affiliates, LLC. Equal Housing Opportunity.

By Allen Payton

After waiting more than 10 years to build a new housing project, planned for the south side of Antioch, next to Dozier-Libbey Medical High School, Aviano Farms, LLC, a partnership of DeNova Homes and Mike Serpa, was successful in obtaining council approval on a 5-0 vote, at Tuesday night’s meeting.

The development agreement, the council approved, includes 533 homes and will provide the needed improvements to the sewer line that serves the adjacent high school. The council approved the Use Permit for the first phase of the project, which consists of 127 homes. The council also changed the designation of the project from Adult Community Planned Development to a regular housing development, in which anyone can purchase a home.

Serpa spoke at the August 25th council meeting about the Sand Creek Master plan, which includes ballparks, and how his project is “the major infrastructure provider.”

“Dozier-Libbey [Medical High School] was a result of this project,” he stated.

He pointed out that they have already spent $4 million for species and environmental mitigation, and will be spending $2.5 million to extend Sand Creek Road and Hillcrest Avenue, which will both serve the new development, as well as the new sewer line.

“We’re asking you to reapprove a project that is not substantially different,” Serpa added. “This project is a good one. It’s done its civic duties.”

Also at the August 25th meeting, Tim Forrester, Associate Superintendent for Business and Operations for the Antioch Unified School District, spoke about both the land Serpa had set aside for Dozier-Libbey, as well as the sewer line.

“We started working with Mike Serpa in 2004 on Dozier-Libbey and was able to open in 2008,” he stated. “It brings us back about $1 million to pay us back. The temporary sewer line is failing. It’s running on propane.”

“The economy downturn did not allow us to finish the infrastructure,” Forrester continued. “We’re very amicable in our agreement with Aviano Farms. It will benefit Kaiser, as well, giving us a second way into a hospital.”

The public hearing was closed at the August 25th meeting, but not before a few residents spoke in favor of the project.

“I’ve lived in Antioch for 26 years,” said Robert Laxner. “I like this project.”

He mentioned the project’s 350 offsite acres set aside for open space.

Aaron Hodess, the Business Manager of the Plumbers and Steamfitters union, Local 159, said “We look forward to finally work in our city. I”ve got every confidence this will be a quality project.”

He also spoke of “opportunities for our youth and careers through apprenticeship.”

Kevin Van Buskirk read his statement, saying he lived in Antioch for 30 years and was concerned about the impact on police services. But, now he supports the project.

No one spoke against the development.

But, there was disagreement over three issues at the August 25th meeting. So, the council voted to give city staff and the developer two weeks to work out agreements on the police fee, the owner-occupation issue and a city requested hold-harmless indemnity clause in the development agreement.

The council, in approving the development agreement at Tuesday’s meeting, imposed an annual police services fee of $445 per home, which is a new requirement, never before imposed on a development in Antioch. They also required the formation of a homeowners association.

While the City wanted to require that no more than 30 percent of the homes be available for rent at any time, according to the staff report “following more thorough research, City staff no longer endorses this as a function of the City, but encourages the applicant to pursue any reasonable and lawful means to encourage greater owner occupancy.”

During Tuesday night’s meeting, Interim City Attorney Derek Cole said “the time for public challenge has come and gone.”

However, public comments were allowed.

Antioch resident Terry Ramus was the only one from the public to speak on the item. He spoke about development agreements, and how in the past the city had forgotten some things.

“I had hoped we have learned from our history,” Ramus said. “The times have changed. So, on this police services agreement, is that tight?”

“Perfect is not really what I’m asking for you to do,” he continued. “I’m asking for you to look at it with a fine-tooth comb and if you’re not comfortable with it, don’t vote for it tonight.”

Mayor Wade Harper responded.

“After a couple years, now of fine tooth combing and everything else, the matter is now before council.”

Councilwoman Mary Rocha added her thoughts.

“It will bring employment, better service for our schools, it will improve the road system,” she said. “This one is bringing us some extra items that will benefit the schools and city.”

“I am very comfortable that all parties have come to an agreement,” said Councilman Tony Tiscareno.

He then asked about the police fee.

Cole explained that the developer agreed to a Community Services District that levies a special tax, which is a Mello-Roos tax for police.

“Development must be revenue neutral and provide the 1.2 to 1.5 officers per thousand,” he stated. “One way or the other, the standard of providing police protection will exist. This developer has done everything they can to work with us, to date.”

“I like the variety of sizes of homes,” said Mayor Pro Tem Lori Ogorchock. “There are 5,000 square foot lots up to 10,000 square foot lots. I just want to make sure the infrastructure goes in.”

“I wanted to make sure we have enough money to pay for police, going forward,” said Harper. “That was important to me. This will be a wonderful, clean and safe neighborhood. If I could I would give the Aviano folks credit for working so well with the school district. I’m glad you’re getting this project done and thanks for being in our city.”

Rocha mentioned a possible local hire.

Then the council voted unanimously to approve the development agreement which lasts through 2029. The developer will have three years to form the Community Services District to pay for more police.

By Patrick McCarran

Berkshire Hathaway HomeServices

The primary reason to buy now is that mortgage rates are still at historic lows. This is driven largely by the continuing market corrections after the Fed pulled back on their bond purchases and the stock market continues to stabilize. However unbelievable low rates will not last forever and can increase literally overnight. The Fed has made it clear that they plan to raise the prime rate and while this does not directly effect mortgage rates it will effect the banks bottom line and almost definitely trigger an increase in interest rates.

We tend to make financial plans looking backward, learning the lessons of our past experiences but ignoring the future. That’s why we don’t buy stocks at the “bottom” but instead when they are “hot”; In a similar scenario, that’s probably why people aren’t buying homes right now, despite still relatively low home prices and historically low finance rates.

The why you should own is relatively easy. Rents will continue to rise and are unpredictable, when you own you know what the payments will be and it your home not the landlord to dictate rules. The mortgage interest is still the largest deduction for the middle class. Mortgage interest rates remain historically low and there is affair amount of inventory from which to choose. Long-term homeownership continues to be one of the best ways for the typical American to build wealth.

So what’s holding you back? Down Payment? Many people are intimidated by the widely publicized 20-percent down-payment requirement. They don’t realize that there are many federal programs designed to help homebuyers, and even those who have lost their homes to foreclosure.
For example, Freddie Mac and Fannie Mae have loans available to first-time buyers with as little as 3-percent down payment and the FHA has similar programs that require 3.5 percent down and payment. If you qualify there are a number of programs and grants that can help with the down payment. With a seller credit for closing costs I have gotten buyers into a home for as little as $1500 out of pocket. For veterans, the VA program has no-down-payment loans available for qualifying military members and veterans that can close with almost no out of pocket money.

Why wait? What’s the worst that could happen if you buy a home now? You’ve already seen it, the 2007 mortgage crisis. It will take generations, if ever, before the government lets the banking systems get that far out of hand again. It is far more likely that home prices will steadily climb as they have been. Americans are getting back to work and leading the global economy out of stagnation. So don’t be blinded to the future by your past experiences. The American population will continue to grow and build families of all types, creating more demand for housing. Don’t view your home as a trading vehicle or a one-way-up investment. Instead, look at the home-ownership benefits that are mostly forgotten by today’s potential homebuyers — the chance to build equity (instead of throwing rent down the drain) and the opportunity to customize your own environment.

That’s what has always motivated Americans to own their own home. And it isn’t going to change in the long run.

If you want to get started or have any questions give a call or send me an email and Debra Westlund (925) 783-2052 and myself would be happy to help you get started and help you set up an action plan.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com.

©2015 Berkshire Hathaway HomeServices Drysdale Properties an independently owned and operated franchisee of BHHS Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire.

By Patrick McCarran

The primary reason to buy a home, now is mortgage rates are still at historic lows. This is driven largely by the continuing market corrections after the Fed pulled back on their bond purchases and the stock market continues to stabilize. However, unbelievable low rates will not last forever and can increase literally overnight. The Fed has made it clear that they plan to raise the Prime Rate and while this does not directly effect mortgage rates it will effect the banks’ bottom line and almost definitely trigger an increase in interest rates.

We tend to make financial plans looking backward, learning the lessons of our past experiences but ignoring the future. That’s why we don’t buy stocks at the “bottom” but instead when they are “hot”. In a similar scenario, that’s probably why people aren’t buying homes right now, despite still relatively low home prices and historically low finance rates.

Rents will continue to rise and are unpredictable, when you own you know what the payments will be and it your home not the landlord to dictate rules. Plus, mortgage interest is still the largest deduction for the middle class. Interest rates remain historically low and there is a fair amount of inventory from which to choose. Long-term home ownership continues to be one of the best ways for the typical American to build wealth.

So what’s holding you back? Down Payment? Many people are intimidated by the widely publicized 20% down payment requirement. They don’t realize that there are many federal programs designed to help homebuyers, and even those who have lost their homes to foreclosure.

For example, Freddie Mac and Fannie Mae have loans available to first-time buyers with as little as 3% down payment and the FHA has similar programs that require 3.5% down payment. If you qualify there are a number of programs and grants that can help with the down payment. With a seller credit for closing costs I’ve helped buyers into a home for as little as $1,500 out of pocket. For veterans, the VA program has no-down-payment loans available for qualifying military members and veterans that can close with almost no out of pocket money.

Why wait? What’s the worst that could happen if you buy a home, now? You’ve already seen it, the 2007 mortgage crisis. It will take generations, if ever, before the government lets the banking systems get that far out of hand again. It is far more likely that home prices will steadily climb as they have been. Americans are getting back to work and leading the global economy out of stagnation. So don’t be blinded to the future by your past experiences. The American population will continue to grow and build families of all types, creating more demand for housing. Don’t view your home as a trading vehicle or a one-way-up investment. Instead, look at the home-ownership benefits that are mostly forgotten by today’s potential homebuyers — the chance to build equity (instead of throwing rent down the drain) and the opportunity to customize your own environment.

That’s what has always motivated Americans to own their own home. It’s not going to change in the long run.

If you want to get started or have questions call me or Debra Westlund at (925) 783-2052 and we’ll help you get started with an action plan.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536, pmccarran@yahoo.com or at www.CallPatrick.com.

© 2015 Berkshire Hathaway HomeServices Drysdale Properties, an independently owned and operated franchisee of BHHS Affiliates, LLC. Equal Housing Opportunity

By Patrick McCarran

You may love your home, but that doesn’t mean that everyone coming through the door will feel the same way. Everyone has their own particular tastes and style. When selling a home the goal is to allow the buyer to see themselves in the homes and help give them a vision of what they can do to make it their Home.

1. Don’t be too personal: Home staging is meant to create a neutral canvas that will appeal to the majority of buyers. Staging is all about de-personalizing the space, and creating more of a look that will appeal to most everyone. This is not the time to bring in your unique style and create a look that appeals to just you.

2. Use neutral colors: If painting, you should choose nice neutral and warm beige tones. You’ll be amazed at the transformation a few coats of fresh paint will make on your home.

3. Take advantage of natural light: People love natural light, so don’t block any light with heavy curtains or furniture. Accentuate any attractive views. Anything dated in a home is a turn-off to a potential buyer and window treatments are one of them. Don’t be afraid to take down the curtains and just use the blind or just leave the valance.

4. Less is more: Scale down your furniture to be in balance with the scale of the room. Remember that the purpose of furniture when selling a home is to define the purpose of the room and to show what will fit where.

5. Take a look outside: People care about the outside space just as much as the inside, so add flowers, add bark or rocks, make sure the lawn is mowed, the yard is tidy and add a few backyard accessories.

6. Stage ALL rooms: People are quick to stage living rooms and kitchens and but don’t forget to spruce up the bedrooms, flex space and closets as well.

7. Don’t forget fixtures: When staging a home, it’s important to ensure all lights are burning with fresh bulbs, and that all fixtures are working.

Remember, staging a home means showcasing the property’s many features, not concealing its flaws. Make sure your house is in good condition and use staging to cast the home in the best light.

Patrick McCarran is a local Realtor/ Broker and can be reached at (925) 899-5536 or www.CallPatrick.com. Berkshire Hathaway HomeServices Drysdale Properties an independently owned and operated franchisee of BHHS Affiliates, LLC.. Equal Housing Opportunity.

By Patrick McCarran

With the recent upswing in homes values we have realized a growth in equity as well. This leaves many owners thinking that they may be stuck in an investment property? Whether you bought it as an investment or it was an owner occupied that went past you 3 year deferment period you have options. Maybe you would prefer an investment in a different city, region or even another state? Possibly you would like to combine many properties into few or few into many? The answer is a 1031 Tax Exchanges otherwise known as a Starker Exchange. This process allows real estate owners to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In general terms to roll their profit into another property and defer the tax and preserve equity and cash flow.

To accomplish this, sellers need to engage a Qualified 1031 Intermediary to document the sale as an exchange and to receive the funds from the sale. I cannot stress the importance of a third party for the exchange. This does not mean a title or escrow company. By definition you can not have any direct control over the funds, which is not just in your pocket but anywhere within your reach

Central to a 1031 Exchange is the interpretation of like-kind property. While the common assumption is that like-kind implies land for land or a condominium for a condominium swap, the definition of like kind has become far less literal. Today it defines like kind as meaning that both the replacement and the original property must be used as an investment. So land, condominiums, single-family homes and motels can all be exchanged for one another as long as they are used in the exchanger’s business or held as an investment.

1031 Exchanges do have specific IRS requirements and a set time frame for performing. This is why it is very important that you contact an experience agent such as myself and engage the Intermediary BEFORE you close and ideally before you place the property for sale.

There are other options for example you can opt for a Reverse Exchange where you buy the replacement property first then sell the current property. An Improvement Exchange, allows you to build investment properties from the ground up or improve existing properties.

If you want more information on 1031 Exchange or have any questions feel free to contact myself or a real estate professional you know. Make sure that he or she is familiar not only with the process but also with the specific documentation and time frame mandated by the IRS.

This article is intended to inform readers, but does not constitute any financial or legal advice.

Patrick McCarran is a local Realtor/Broker and can be reached at (925) 899-5536 or www.CallPatrick.com. Berkshire Hathaway HomeServices Drysdale Properties an independently owned and operated franchisee of BHHS Affiliates, LLC. Equal Housing Opportunity.