Take to the Skies! Where? In Van Nuys!

Posted at 5:36 PM, Mar. 7, 2007

Manufacturing and distribution industry has long been important to Van Nuys. Once the home of a major Chevrolet facility, Van Nuys is now home to an Anheuser-Busch Brewery, Home Depot, and other large employers. The San Fernando Valley Administration Center is also here providing municipal, county, state, and federal government services for the Valley population.

For almost a 80 years, the Van Nuys Airport (VNY) has been a center of activity. From a small field in the 1920's it has grown to be the world's busiest general aviation airport. There are no commercial airline flights here, yet private and chartered aircraft account for nearly a half million takeoffs and landings a year.  

In the early days, Van Nuys Airport served barnstormers and intrepid airmen – and women – who sought flying records. They included:

• A men’s solo endurance record of 37 hours, by Herbert Fahy, in 1929.
• A women’s endurance record of 42 hours, by Elinor Smith and Bobbi Trout, in 1929.
• A women’s speed record of 196 mph, by Florence “Pancho” Barnes, in 1930.

Just about 20 miles north of the Los Angeles Airport (LAX), the airport was a favorite of Hollywood stars like Gene Autry, Cecil B. DeMille, and Howard Hughes who flew here. The airport has become increasingly popular as it offers both convenience and a measure of anonymity for celebrities and politicians. And for those who do need to fly out of LAX, the Flyaway Bus Service offers non-stop service between the two airports.

Van Nuys has Airport a film-friendly policy that aims to keep film production at "home" in Lost Angeles. From Casablanca to the TV show 24, the airport has been part of many films and TV shows over the years. The 1980's action-espionage series Airwolf used the VNY hangars as the site of "Santini Air," the charter air service operated by Dominic Santini and played by Ernest Borgnine. Even during the war years of the 1940's when the airport was a defense-manufacturing center, Hollywood discovered a young woman there on an aircraft assembly line; her name would be Marilyn Monroe.

The airport is not only about movies, takeoffs, and landings; the 730 acres of VNY are home to 100 businesses plus a 27-hole golf course. Los Angeles police, fire, and water and power helicopters have hangars and maintenance facilities here. Future airframe and power plant  mechanics get their training in the aviation mechanics school run by the Lost Angeles schools.

In the1960's a guided tour program opened the airport to the local community for a journey through aviation past and present. VNY continues to offer tours, giving about 10,000 adults and children a close-up look at the airport each year. And for those who can't get enough of airplanes, a public observation area adjacent to the east side of the airfield features permanent displays, special children’s exhibits and a continuous live broadcast of air traffic controllers in the airport’s control tower.

We hope you've enjoyed this stop on our continuing San Fernando Valley tour. Happy landings!

Missions and Movies in the San Fernando Valley - On the Tarzana Tour

Posted at 7:57 PM, Mar. 1, 2007

Our continuing tour of the San Fernando Valley visits Tarzana today. And it's not much of a guess that the town has close ties to The King of the Jungle. But before the friend of chimps was a celebrity, this town already had a couple hundred years of history.

In the late 1700's, what is now Tarzana was part of the San Fernando Mission. Through the next 100-plus years, the land changed hands several times and became cattle ranches and farm land until 1911 when 550 acres were

purchased by General Gary Otis, the founder of the Los Angeles Times.

The author Edgar Rice Burroughs brought his family here in 1919 when he bought the Otis ranch, built his home on a hill, and called it Tarzana. In time Burroughs subdivided his land and sold off building lots, and the town of Runnymede grew up around and including Tarzana. By 1927, the 300 or so residents of Runnymede wanted their own post office. Only trouble was, there was already another Runnymede in California. So a local contest was held and the decision was clear: the town would be called Tarzana in honor of its most famous inhabitant and his heroic character.

Today, almost 30,000 people call Tarzana home. Most of them live in the foothills of the Santa Monica Mountains south of Ventura Blvd. According to Wikipedia, Tarzana is a multi-cultural town with many lands and languages represented. It is well known for its Persian (Iranian) restaurants and bookstores, as well as a thriving and long-established Jewish community and the first and only branch of the Hebrew language bookseller Steimatzky constructed outside of Israel. A number of popular delicatessens can be found in Tarzana, including the Tarzana Armenian Grocery and Mort's Deli.

Next time you need a conversation starter, here are some interesting tidbits about Tarzana:

·        Edgar Rice Burroughs also wrote "The Girl from Hollywood" which received bad reviews. Burroughs complained: "The critics have panned 'Girl from Hollywood.' They said that no ranch such as I described in the story ever existed. The joke of it was that I merely described my own ranch!" 

·        According to the Tarzana Chamber of Commerce, Tarzana was the site of the Valley's first swimming pool.

·        Wikipedia tells us that notable residents have included comedian Jeremy Hotz, actor Jamie Foxx, actor Chuck Norris, filmmaker John-Erik Jordan, Bon Jovi guitarist Richie Sambora, and frequent Star Trek guest star Hana Hatae (in both TNG and DS9 as Molly O'Brien – Miles' and Keiko's daughter.)

·        And do we really need to mention a certain celebrity's recent self-shearing in a Tarzana salon? No, probably not.  

Tarzana is just one of the fascinating destinations on our San Fernando Valley tour. Be sure to join us again when we visit…Woodland Hills.

Boutique or Big Box?

Posted at 12:49 PM, Feb. 22, 2007

When all you want is to buy a lot of something, you might go to a big box store. Take your basket, roll up and down the aisles looking for what you need, maybe even check yourself out, and trundle home with your purchases. If you're buying gallons of peanut butter or barrels of potato chips, it's a fine way to go.

But what if you're going to spend several thousand dollars on a new TV? Or perhaps you're shopping for a wedding dress?  These are not every day items, and you will certainly want some personal service and advice before you buy. For these you'll go someplace where you can talk to a professional, find advice about different options, and get exactly what you want.

That's a boutique: a "small, exclusive business offering customized service" (with thanks to Dictionary.com). This kind of customized, personalized service is what a boutique real estate broker is all about. The focus is on individual clients and not on a corporation's goals or guidelines. There are no cookie-cutter solutions here; your home is unlike any other, and it deserves a marketing plan that is tailored to its unique features.

As a seller, you want to work with a Realtor® who knows your area well, has significant experience, and who provides personalized service to fit your needs. As a buyer, you also want to deal with a professional who has in-depth knowledge about your new neighborhood.

The boutique Realtor® is independent and has significant experience in a specific market area. Most important, this professional takes the time to listen and understand your needs, and to look out for your interests always and unconditionally. And isn't that exactly what you want when buying or selling a home?

Real Estate Plateau Not a Matter for Worry - February Press Release

Posted at 10:34 AM, Feb. 21, 2007

A Tour of San Fernando Valley – Oaks and Old Movies in Encino

Posted at 8:22 PM, Feb. 16, 2007

This is the beginning of a series, not unlike the serials of the old movie theater double feature. Back in the day – like the early to mid-20^th century – when you went to the movies on Saturday, you saw a newsreel, cartoons, and two feature movies. There was also an ongoing adventure with a new chapter every week to keep you coming back.

There won't be any hoof-pounding Western adventures in this series, but there will be interesting history, intriguing facts, and fascinating trivia about the communities of the San Fernando Valley, Santa Clarita Valley, and the Westside of Los Angeles. Whether you are a native or newcomer, we hope you'll enjoy the journey. 

First on the tour is Encino. It is truly hard to go anywhere in the Los Angeles area without finding a connection to the movie industry. Homes of the stars and hangouts of the famous are everywhere. Even a well-known Realtor® chose Encino for his home base. Here in Encino, though, not only the people are stars; the district itself has played a role in film and literature.

Like much of this area, Encino was once mission land owned by the Spanish government. When the missions were abandoned in the early 1800's, about seven square miles was given to three Grabielino Indians and became known as Rancho Los Encinos (Ranch of the Oaks.) By the middle of the 19^th century the land had been a cattle ranch, grown wheat and barley, and had become a stop on the stage line between Los Angeles and San Francisco. According to the Encino Chamber of Commerce, some of the buildings from those days are still seen in the Los Encinos State Park.

Through all this, a massive California Live Oak tree stood on what became Ventura Boulevard, and watched over more than a thousand years of human history before falling during an El Niño storm in 1998.

Encino is now home to more than 40,000 people who live in the area bordered on the west by Tarzana, on the north by the Sepulveda Dam Recreation Area, on the east by Sherman Oaks, and on the south by the Encino Reservoir.

And now for the connections to film and literature we promised: (with thanks to Wikipedia)

 ·        In the glory days of filmmaking, Encino was also the site of RKO Studios "Encino Ranch" and the site of such iconic movies as It's a Wonderful Life and The Hunchback of Notre Dame.

·        It is the setting of the 1992 comedy, Encino Man.

·        Encino is mentioned in Frank Zappa's 1982 hit song, "Valley Girl."

·        "The Point" from Fast Times at Ridgemont High was located in Encino (Encino Little League Field).

·        Encino was where Ali's family lived (Elisabeth Shue) in the movie The Karate Kid. Their country club was Encino Oaks and they lived on Alonzo Avenue.

·        Encino is where specials on the popular cartoon SpongeBob SquarePants take place.

·        Encino is the setting of the first half of Chilean author Alberto Fuguet's novel "Las Películas de mi Vida (The Movies Of My Life)"

·        According to a recurring on-air gag of the 1970's show Match Game, panelist Brett Somers would take host Gene Rayburn to a nice hotel in Encino after the show if she were "feeling frisky."

·        Encino has been home to many of Hollywood's stars, including Rudolph Valentino, Clark Gable, John Wayne, Michael Landon, and Phil Hartman.

Rich in history, Encino is one of the San Fernando Valley's treasures. That's the end of today's tour. Please join us again next time for…Tarzana!

Video Overtakes Virtual Tours?

Posted at 3:10 PM, Feb. 8, 2007

It seems that every day there's a new technology tool for real estate. How long ago did we start putting listings on our web sites, then adding photos so buyers could see the home's features? Then virtual tours were the new thing, and with them our clients got an even better sense of the home. 

Now it's video tours like this one, complete with background music, professional voice-over, and a sense of walking through the house. Are the new videos an improvement? I believe so.

·        Virtual tours string together a selection of static photos, sometimes zoomed in or out, but each image is a single perspective.

·        Video tours add movement so that viewers feel as if they are actually walking through the house, moving from room to room. The camera sweeps around a room just as a person would look from side to side.

·        While virtual tours can include background music and printed captions, video tours include a human voice pointing out the features of a home, inside and out. Through choice of words, tone, and inflection, the voice adds an emotional component that is missing in the virtual tour. By coordinating the voice tone and speed with the background music and the style of the home, you can convey a more complete image.

Professional Realtors® have to be students of human nature and communication. We know that some people remember best what they see, others remember what they hear. Video home tours are memorable because they combine both senses.

Will video replace virtual tours? Not right away. We haven't stopped putting photos on our web sites or printing brochures, either. But video is certainly going to be a part of marketing in the future, and something that I think our clients will appreciate.

So here's the question:  Are you using – or do you plan to use – video house tours for your listings?

Is Your Property Ready for A Close Up?

Posted at 7:56 PM, Feb. 1, 2007

Pretend you've never seen the house before. Does the exterior – paint, siding, gutters – need attention? Are the bushes trimmed, flowerbeds weeded, walk ways swept? If you have a garage, is it clean and uncluttered? Your home should say "Welcome!" even before you reach the door. 

Step inside, close your eyes, and sniff. How does your house smell? Cigarette smoke, pet smells, greasy cooking odors are immediate turn-offs. A small pan with orange rind and cinnamon in water simmering on the stove will help your house smell like home.

Now walk through as if you were a buyer. Try every light switch, turn on every faucet, open cabinets and closet doors. Make a list as you go of anything that needs fixing.

·        Repair or replace leaky faucets. It's a minor expense that makes a major difference.

·        Tighten hinges, knobs and pulls on cabinet doors and drawers. While you're at it, clean out the cabinets to make them look more spacious.

·        Oil hinges to eliminate squeaky doors.

·        Are the windows clean, and do they open and close easily? Check for ill-fitting or torn screens, too. 

·        Look for scuffed paint on walls or bits of wallpaper that are coming loose and need re-gluing. Touch up or repaint as needed.

·        Replace burned out or dim light bulbs. Your Realtor will turn on all the lights before a showing so make sure they work.

·        Inspect the appliances. Make sure they are clean and in good working order. Clean the lint filter on the dryer, change the filters in the air conditioner, change the drip pans under the stove burners.

·        Look down. If your carpet is dirty, clean it. If it's stained beyond cleaning, replace it with a neutral color that will make the home look bigger. Clean and polish hardwood floors.

·        Spend money on a storage locker, and de-clutter ruthlessly. Aim to make your home look as big, open, and bright as possible. Just think of it as advance packing for when you sell the house and move to your new home.

If all this seems overwhelming, get some help. Most communities have local handyman- or handywoman-type businesses that will do small jobs for an hourly or flat fee. The investment you make to get your home ready for its close-up can pay off handsomely at the settlement table.

Is Your Home Ready For Its Close-up?

Posted at 7:26 PM, Jan. 18, 2007

When you make that exciting decision to sell your home, suddenly there are dozens of things on your  "To-Do" list. Your Realtor® will talk you through what to expect from listing to settlement, and one of the topics will surely be how to show your home to best advantage.

There are tips galore on getting your home ready to show and you probably know the logical and obvious ones:

·        Look at your home through the eyes of a buyer – inside and out

·        De-clutter and when you think you've done enough, de-clutter some more (think of it as packing sooner rather than later)

·        Make sure everything works – appliances, faucets, light switches, etc.

·        Make everything look fresh and clean – paint, replace carpet, clean the windows

·        Make your home welcoming when buyers are coming – soft music, scent of cinnamon

In recent years, "Staging" has become a popular means of getting your home ready for its close-up.  Staging includes all the things above, and more. A professional stager is able to look at your home from a fresh and unemotional perspective. Using a combination of your furniture and new or rented furniture and accessories, a stager can turn your house into a model home.

We know that first impressions count, and that potential buyers have formed an opinion about each house they see within seconds of approaching the door and going inside. Staging a home is like designing a movie set. You create an environment in which the buyers can visualize themselves living happily ever after. For this reason, staging is especially valuable if you have already moved and the house is empty.

Home staging has been shown to be a good investment - a staged home usually sells faster and at a higher price, regardless of the state of the real estate market in your area. Make the effort to stage, and your home will be ready for its close-up!

Three Resolutions You Can Actually Keep

Posted at 8:06 PM, Jan. 10, 2007

How are you doing so far with those resolutions you made a couple weeks ago?  You know, the ones about getting in shape and eating right and all the others we make every year. 

If it's not going so well, you're not alone. But there's no need to feel bad about it – simply replace those unattainable resolutions with a few that you really can accomplish.  Forget about giving up a favorite food. Think instead of these three resolutions that will help protect what you have and build for the future.

1.  Manage your mortgage. If you have an adjustable rate mortgage, look into converting it to a fixed rate.  30-year mortgage rates are still relatively low, and that ARM could soon start eating you up – if it hasn't already.  Even if you do have a fixed rate mortgage, if it's more than a few years old, look into whether you could save by refinancing at a lower rate.

2.  Improve your home and your tax bill.  If you're thinking about doing some home improvements, consider taking a home equity loan to cover the costs rather than financing them through a credit card or other loan.  Interest on this kind of loan can be deductible just as is mortgage interest when the funds are used for home improvements. Depending on the type of improvement, you may be able to recover most of the cost through the increased value of your home when you sell it someday. 

3. Keep Uncle Sam out of your pocket.  Do you usually get a tax refund because you pay in too much over the year, either through payroll deduction or by estimate payments?  Stop it!  Sure, that refund feels like found money, but all you've really found is money that you might as well have buried in the back yard.  Uncle Sam had your money for months and paid no interest – zip.  Work with your tax professional to adjust your withholding or estimated payments so you come out as close as possible to what you owe each year. The trick then is to not spend the extra you take home, but instead increase your savings either through an IRA, a 401(k) or similar plan, or a well-managed investment plan.

For all of these you'll want to have some expert advice from your tax and financial adviser.  Always consult your professional before making a decision about changing your mortgage, taking a home equity loan, or changing your withholding and/or estimated tax deposits.  It will be time well spent and give you peace of mind. 

And as for those other resolutions?  Well, there's always next year!

Selling Your Home? Know Your Comps!

Posted at 8:21 AM, Jan. 4, 2007

One of the things you'll need to know is the comps. Comparable sales of houses in the same area in recent months are one of the factors that your Realtor® will take into account as you work together to set your price. Notice I said "sales" not "houses for sale." The price of other listings only tells you what other owners hope to sell their houses for. Sales tell you where the prices ended up; they tell you what real buyers actually paid. 

Comps give you a starting point. Once you know what a house sold for you can look at the features of that house and compare it to yours. Then you make adjustments up and down to come to an approximate equivalent price. For instance, if another house has more square footage that might sell for more than yours, but a new kitchen or deck in your house will give it a higher market value. Again, this is where your Realtor's® experience will be invaluable in setting a price that reflects your home's condition and location.

Where do the comps come from? The data are collected from a variety of sources including the multiple listing service and public records of sales, by professionals who know the neighborhood and the specific market. One place they do not come from is an internet "estimating" site that is not based on solid, proven information. Several sites have sprung up over the last year that promise an estimate of the value of your home and every other one around. So far, they don't have a good record for accuracy or completeness. What they provide is nowhere near a true comp. Their computer data banks simply cannot make the considered judgments that only a human, in this case a Realtor®, can make to recognize the differences in details that lead to differences in pricing.  

Comps can be valuable to sellers in setting the price, and also to buyers in understanding the price range in a particular area. But whether buyer or seller, always work with your Realtor® to get the best value.

Comments are welcome.

Thank you.

Michael Trust, Realtor® and Broker

www.MichaelTrustRealty.com

Happy New Year from…Uncle Sam?

Posted at 12:15 PM, Dec. 28, 2006

That's right. Contrary to his usual habit of dipping into your pocket, Uncle Sam has a gift for you in 2007 if you buy or refinance a home. For the first time, mortgage insurance premiums will be tax deductible. This means that, for some people, getting mortgage insurance could be cheaper than using a piggyback loan to cover the downpayment.

According to an article on Seattlepi.com, "… lenders consider you a riskier borrower if you make a down payment of less than 20 percent." Historically, people have had the choice of paying for that risk by taking a piggyback loan or buying mortgage insurance.  Since mortgage insurance has been a non-deductible expense, most people took the loan. That got them into the house, but also burdened them with a higher total loan and less equity. 

As one of its last acts, the 109^th Congress passed the bill that creates the deduction for mortgage insurance, and the President signed the billed into law. This new legislation is welcomed by The Mortgage Insurance Companies of America (MICA), a trade association. MICA Executive Vice President Suzanne Hutchinson said, "We are pleased that policymakers have recognized mortgage insurance as a cost of finance just like mortgage interest. Mortgage insurance plays a crucial role in maintaining the stability and continued health of the mortgage finance system. In today’s climate of steadily rising interest rates and slowing home price appreciation, an insured loan is often the most borrower-friendly alternative."

 There are some restrictions, of course, but they won't block many homeowners from taking the deduction. The limits include:

·        You can only take the deduction for mortgages that are closed in 2007. This means that only new loans or loans refinanced in 2007   qualify.

 ·        There are income limits. You can get the full deduction if your adjusted gross income is $100,000 or less, and you must itemize to get the deduction.

 ·        This is for one year only. If Congress wants to extend the deduction beyond 2007, it will have to pass further legislation.

Of course, you should always talk to your tax/financial advisor before making a decision that affects your tax liability, including the choice of a piggyback loan vs. private mortgage insurance.

The bottom line, according to the Seattlepi.com article is this:  "Don't get a piggyback loan without taking a serious look at mortgage insurance, because mortgage insurance is likely to be cheaper in the long run, and it might even cost less in the short run."

 Cheaper in the long run and might cost less in the short run – now that's a Happy New Year, thanks to your good old Uncle Sam. 

Links:

http://seattlepi.nwsource.com/business/296168_real16.html

http://www.micanews.com/press/press_releases/pr.cfv?ID=106

Your 401(k) – What's New

Posted at 8:57 PM, Dec. 20, 2006

In 2006 some large companies put in place a new policy – each employee hired was automatically signed up for the company 401(k) plan with 3% of their pay being set aside in a 401(k) investment account.  Employees could opt-out, but if they did not take the time to say "No, thanks," they were in.

Uncle Sam took a look at the practice and said, "OK by me," or official IRS words to that effect.  As reported on the website of Cooley Godward Kronish LLP, "The IRS recently ruled that a 401(k) plan may require mandatory 401(k) contributions to be withheld from eligible employees' compensation, if the employer gives appropriate notice to its employees and the employees have an opportunity to 'elect out' of the mandatory contributions."

So now folks will have help saving for retirement in the most painless way possible…the money is deducted before taxes so they never see it, and, contributions grow tax free until withdrawal. When you consider that many companies have a policy of matching employee contributions, a 401(k) can be the best way to save for your future. 

And if that future – in the near future – includes buying a home?  A 401(k) can help there, too.  The IRS says, "… depending on the rules for your 401(k) plan, you may be able to borrow money from your 401(k) plan to purchase your first home. Your plan administrator should have written information about your particular plan that explains when you can borrow funds from your 401(k) plan…."  You will need to talk to the administrator to find out how your plan works. Generally, you pay interest on the loan but you pay it to yourself – the interest goes back into your account and replaces the earnings you might otherwise get on the investments.  Provided you pay back the loan, the money you borrow is not taxable. 

With automatic investment, and help buying that first home, a 401(k) account could be the best decision you don't make all year!

Now this is important:  Always talk to your tax/financial advisor before taking a loan from your 401(k), or before making any change in your retirement planning.  This article is not intended to give any legal, financial, or tax advice, and does not cover all possible restrictions or regulations related to 401(k) plans or other investments.  Always speak with your investment and/or tax advisor before making any decision based on information in this, or any other, source.

Joeann Fossland, Web Women Giving Circle Founder Interviews with Michael Trust on the Coachadelic Whistle-Stop Blog Tour

Posted at 12:01 AM, Dec. 19, 2006

Joeann Fossland, Web Women Giving Circle founder, stopped by today for an interview with me. Here's what Joeann had to say.

Michael: Hello, Joeann, thank you for stopping by today. I appreciate your time as I know you are on the Coachadelic Whistle-Stop Blog Tour and have other blogs to visit. Let me get started...

Michael:  We are out of time for today.  Thank you for stopping by and I look forward to being on the next tour.

Study Shows Women Are Targeted for Subprime Lending

Posted at 10:51 AM, Dec. 14, 2006

The full study is here: http://www.consumerfed.org/pdfs/WomenPrimeTargetsStudy120606.pdf

As professionals in the real estate industry, we know, home buyers without sufficient income, poor or no credit history must often resort to subprime loans. With the growing subprime loan market, which has matured from “…5 percent [of all loans issued] in 1994 to 20 percent in 2004”, mortgage applicants who do not qualify for prime rate loans, will often qualify for subprime rates as they are considered a risk. 

The Consumer Federation of America, study goes on to state that, “Women are more likely to receive subprime mortgages than men…”, however, “These gender disparities exist across mortgage product lines. Women with the highest incomes have the highest disparities relative to men with similar incomes than women at lower income levels.” 

One of many interesting observations of this study, and I encourage my readers to read this in greater detail, is that, “Although lenders attribute subprime lending to borrower credit risk, in general women and men have similar credit profiles. On average, women have slightly higher credit scores than men. Credit-rating company Experian reports that women have slightly higher credit scores than men (682 compared to 675) and have similar credit usage rates (about 24 percent each).”

In 2005, the study found that even though the prime mortgage rate averaged 5.87 percent, one third of women, in their quest for homeownership, signed mortgage papers with interest rates over 7.66 percent as compared with twenty-five percent of men.

Interestingly, 26 percent of all mortgages issued in 2005 were subprime loans.

The subprime gender gap has become is ever more important as women become more active in the mortgage market. A home buying explosion of single, career-minded women during the recent housing boom, prompted by marrying later, divorce, rising rent costs, being head of households and viewing homeownership as an investment in her future, has increased “…the share of single women home buyers [which] has doubled from about one in ten 15 years ago to about one in five homebuyers in 2003.  More than half (53 percent) of women headed households are homeowners up from just below half (48 percent) in the early 1980s.  The number of single women homeowners grew by four million between 1994 and 2002 from 13.9 million to 17.5 million.” 

Additionally, automated underwriting processes have helped women to obtain mortgages (subprime or otherwise) as these processes place them in a lesser non-discriminatory pool of applicants when previous mortgage applications might have been rejected by largely male loan officers.  These “…automated underwriting [methods] used more objective formulas that are less likely to take gender-related factors into account.”

The study goes onto say that, “Over the life of the mortgage, subprime borrowers can pay between $85,000 thousand to $186,000 more in interest than average borrowers. The prevalence of subprime loans among women borrowers diminishes their ability to fully utilize homeownership as a pathway to build wealth.”

Historically, many barriers for female homeownership have existed for decades.  “Women heads of households with one child have one-fifth the wealth ($10,320) of women-headed households.  Women with two children are worth about a tenth ($5,720) of all women, and women with three children earn even less ($3,150).”  Before 1968’s Fair Housing Act, single women were considered poor credit risks. “Until 1974, when the Equal Credit Opportunity Act became law, most women needed a co-signer to become mortgage borrowers, married women often could not obtain credit in their own names, single women couldn’t get loans because they were thought to be somehow less reliable than other applicants, and, divorced or widowed women found it extremely difficult to obtain credit because their previous credit history was obtained in their husbands’ names and was not taken into consideration when they sought credit in their own names.”  It has only been about 15 years since the Federal Housing Administration permitted women to use child support payments as income to qualify for a mortgage.  And still today, older women are often targeted by predatory mortgagors through home improvement scams, which can eat through home equity and life savings. 

The study also reveals interesting data regarding women borrowers within the Latino and African American communities.  For example, “African American women were 8.5 percent more likely to receive high-cost subprime loans than African American men; Latino women were 19.3 percent more likely to receive high cost subprime loans than Latino men; and white women were 30.8 percent more likely to receive high-cost subprime mortgages than white men. African American women were more than four and a half times as likely to receive high-cost subprime purchase mortgages as white men and Latino women were more than two and a half times as likely to receive high-cost subprime mortgages as white men.”

Conclusions:

“CFA’s HMDA (Federal Home Mortgage Disclosure Act) analysis suggests there is significant gender disparity in the pricing of mortgages between borrowers by gender, race and income. However, it should not be assumed that the gender disparities CFA found are solely attributable to higher risk factors. Freddie Mac found that one in five subprime borrowers could have qualified for a prime rate mortgage. Last year’s Federal Reserve analysis and the recent Center for Responsible Lending study provide strong indication that pricing in the subprime market is not simply a function of risk.”

“Unlawful discrimination, the prevalence of predatory lending and opportunistic pricing, differences in borrower knowledge, the existence of broad pricing discretion by loan brokers and loan officers, and the lack of consumer-friendly support systems may also account for at least some of the variation in pricing patterns.”

“There is general agreement among experts who follow homeownership trends that, over the years, HMDA reporting has helped to transform the home loan market. The new pricing data now reported under HMDA can help to make the pricing of subprime loans more transparent for consumers and increase these market efficiencies, which ultimately benefits all borrowers. Regulators, lenders, consumer and community advocates, the news media are encouraged to undertake their own research and analysis to examine local markets using HMDA data.”

This study shows why it’s important to have a Realtor® and mortgage broker who truly understands your individual needs, and who take the time to look out for your interests and not their own; and, who has the experience and knowledge to provide you with appropriate guidance when making such an important purchase and finance decision – possibly the most important one you will ever make.  At Michael Trust Realty, our hallmark is looking out for our clients’ best interests – always, all of the time, and unconditionally. We have no problem advising a client to walk away from a deal that doesn’t make sense. Perhaps that’s why our referral rate is so high. We’d be pleased to assist you with your buying or selling in the Los Angeles area and/or with referrals to trusted mortgage professionals.

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We're On Joeann Fossland's Coachadelic Whistle-Stop Tour December 19th! Join Us Here!

Posted at 8:54 AM, Dec. 14, 2006

Is Your Realtor® Tech Savvy?

Posted at 6:20 AM, Dec. 12, 2006

What's the first thing a lot of people do today? Go online, of course. Buyers can browse through hundreds of homes for sale on their Realtor's® web site, see photos and even video tours of home interiors, all without leaving the comfort of their own homes. Sellers can show their homes to more prospective buyers than they ever could have reached by the Sunday paper alone.

Top Realtors® know that using technology in many forms is key to giving customized, personal service in today's high-speed world. A good web site is a must, of course, where potential buyers can see what's available, and potential sellers can learn about the Realtor's® services. But the true value of using technology shows throughout the process. Want to see a home that's just come on the market? Your Realto®r can phone no matter where he is thanks to cell technology. Is your spouse away and you want to share a home you just saw?  Take a photo with that palm-sized digital camera, download the photo, and email your find anywhere in the world. Do you need to exchange paperwork? The offer, contract, inspection report, and many others can be emailed or faxed for next-minute delivery. 

The increasing use of technology in real estate is improving the speed and accuracy of many aspects of the business. But there remains one characteristic of a great Realtor® that technology will not change – the commitment to personal service. Computers and cell phones can simplify our lives and speed up transactions. So, yes, it's important for your Realtor® to be tech savvy. But it's even more important to always put extraordinary service first, because the human connection is still the most important part of any successful real estate experience.

It's Still True – You Get What You Pay For

Posted at 10:24 AM, Dec. 7, 2006

You go back to basics and common sense. If you buy a television and choose a no-name brand that's cheap, do you expect it to have a great picture and to last a long time? Or do you know that you are getting lesser quality? Most people recognize that you get what you pay for.

It's the same with choosing a professional Realtor® and a full-service commission. You want to sell your house quickly and for the best possible price. The more qualified buyers who see your house, the more likely you are to do just that. And finding those buyers – not just Sunday-afternoon-lookers – takes market knowledge, experience, and investment on the Realtor's® part.

A Realtor® does so much more than stick a sign in the ground and put your house on a web site. An experienced professional will help you prepare your house for sale, qualify buyers so you only have people in your house who can buy and who are seriously looking to buy, help you negotiate the best price, handle the reams of paperwork that today's real estate transactions require, make sure all the details are covered, and always be available to answer your questions and provide support throughout the process. Remember that you may sell or buy a home a few times in your life, but professional Realtors® do it many times a year. The right one can save you time, money, and a lot of headaches. 

One of the interesting things we're seeing in the current market is an increase in the number of people who choose a full-service Realtor after having gone the do-it-yourself or discount route. When there are no showings and no offers, it doesn't take long to recognize the value of an experienced professional. 

And the bottom line…when the money is in your pocket as you walk away from the settlement table is what you want and need, you know the commission is worth it.

Trust is More Than a Just a Word

Posted at 6:09 AM, Nov. 30, 2006

In a game show, trust isn't that important, and it only matters for about half an hour. But buying or selling a home is too important for games. You want a Realtor® you can trust, and someone who will be looking out for you all the way.

Where do you look for this person who will give you personal attention, who will answer your questions, and answer your phone calls?

You might look at a large real estate brokerage with dozens of agents. They certainly have impressive numbers that show they sell a lot of houses. They have standard procedures, forms, and policies that fit most needs. You may see their signs all over the area, and they do an acceptable job on average. They depend on volume to support a lot of advertising and overhead expense. The question you need to ask is, "Will a large company know me and my needs, or will I be just another 'deal' in their real estate machine?"

Now look at a smaller broker, one who places his name on the line with every transaction, and works with a small team of proven professionals. They know your name. They take the time to ask questions and really listen to your answers. They know the area they serve and all about the neighborhoods. They take your phone calls and return calls quickly. They look out for your interests, always, and unconditionally. And they depend on building lasting client relationships based on personalized service for their success. Individual attention and meeting the client's specific needs are their hallmarks. No games, just people you can trust.

Michael Trust and the Michael Trust Team – we work together to deliver what we promise.

·        Personalized service

·        Total client satisfaction

·        Trust

What's the Best Time of Year for Home Buyers?

Posted at 5:54 AM, Nov. 24, 2006

First, only serious sellers, who are strongly motivated to accept a reasonable offer, will be showing their homes during the holidays.  These weeks are traditionally the slowest of the year for real estate sales.  Most people are thinking about holiday travel and family feasts, so if they can wait to put their house on the market they will. Therefore, homeowners who are having showings are serious about making a sale.

Second, most potential buyers are also concentrating on celebrations and the season – they've put their house hunting on hold for a few weeks.  That means there is less competition from other buyers, and that's an advantage in what is becoming a buyer's market. 

And I've saved the best for last…money in your pocket courtesy of Uncle Sam. There's still time to buy a home and settle before the end of the year, and that could mean a substantial tax deduction from your 2006 income. Of course, you'll want to consult your tax preparer about your specific situation. But mortgage rates are still low, and I can recommend lenders, inspectors, and attorneys who can shepherd deals through to closing quickly. 

Then when the clock strikes midnight on New Year's Eve, you'll really have something to celebrate. Call me today and let's get started.

Searching for a Home in Los Angeles - as featured in my-local-real-estate.com

Posted at 9:58 AM, Nov. 20, 2006

Los Angeles is a highly diverse community - diverse in culture, languages, ethnicity, neighborhoods, and in architecture.  In many Los Angeles communities, one will hear 15-20 languages spoken and in some areas, English is not spoken at all.

The temperate climate and vast cultural and recreational opportunities make Los Angeles an idea place to live (well, except for the traffic!).  Within a two hour drive, one can surf at the beach in the morning and then head to a seasonal resort for an afternoon of skiing.  In between, one may stop at a Laker’s or a Clipper’s game, a USC or UCLA game, or a Dodger's or an Angel's game. From Los Angeles, one can also head south two hours to sunny San Diego or north eight hours to reach infamous San Francisco.

One of the first decisions for someone looking to purchase a home in the Los Angeles area is finding a Realtor who is knowledgeable about the local market and then finding the right neighborhood and the compatible/desirous amenities that one is seeking. Commute time to work or school is also a priority.  Mass transit exists in Los Angeles, but it is not always fluid or easy.  As a result, most people commute to work, school, events, etc., instead of using mass transit.

Within Los Angeles, there are a multitude of "areas" or "specific neighborhoods", each with their own unique characteristics.  Prices tend to rise the further from the downtown "core" and from the Westside one goes. South of Mulholland Highway is the "City" and north of Mulholland Highway is the "Valley". The Valley is the suburbs and the City side is more of the "traditional" city.  Prices in the Los Angeles market, have, for the most part, remained relatively stable even in a slowing market; Los Angeles is still a great draw and an exciting place to be.

Properties can be searched on www.MichaelTrustRealty.com under "Property Search" for a great selection of what is available on the market now. This search feature is updated daily and shows all currently available properties listed in the Multiple Listing Service.  In addition, there is a wealth of community information about Los Angeles and the surrounding areas available on this site. At Michael Trust Realty, we are committed to total client satisfaction and we treat each client as our only client. We would be pleased to answer any questions you may have.

Thanks for reading.

About the author: MICHAEL TRUST, REALTOR, AND BROKER/OWNER, Michael Trust Realty, MichaelTrust@MichaelTrustRealty.com or (818) 342-3470 or Toll Free (877) 755-7755 x709.

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About Michael Trust Realty

Posted at 4:28 PM, Jun. 8, 2006