New $6500 Tax Credit for Repeat Home Buyers

Happy New Year!  I just posted the South Bay and Palos Verdes Peninsula sales charts for 2009 on my Facebook.  The stats are from November 2008 through November 2009 and the trends are quite obvious.  We are heading back into market momentum.  With interest rates still at an all time low and destined to begin a steep increase this year, this is really the right time for first time buyers and move-up buyers to secure a great home at a great price with long term 30 year fixed rate financing.  It just won't get any better than this!  Here are some "Good News" Facts:

Q: Who can claim the $6,500 tax credit?

Qualified move-up or repeat home buyers purchasing any kind of home intended as his/her primary residence are eligible to claim this credit. The tax credit does NOT apply to second homes, vacation homes, or investment property.

Q: What is the definition of a move-up or repeat home buyer?

The law defines a tax credit qualified move-up home buyer (long-time resident) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.

Q: When does the credit take effect, and how long will it last?

Transition buyers are eligible for all contracted purchases dated Nov. 7th, 2009 through April 30, 2010, with closing occurring on or before June 30, 2010.

Q: How is the amount of the tax credit determined?

The tax credit is equal to 10 % of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.

Q: Are there any income limits for claiming the tax credit?

Yes. The income limit for single taxpayers is $125,000; & $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts. (NOTE: I suggest you consult your CPA or accountant regarding your MAGI questions.  There are several complications that are best defined by a professional.)

Q: If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $6,500 are available for some taxpayers whose MAGI exceeds the phaseout limits.

Q: How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?

The previous tax credits applied only to first-time home buyers and were for different amounts of money.

Q: How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?

You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns.
No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and repeat home buyer tests. Note that you cannot claim the credit on IRS Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to IRS Form 5405 as proof of the completed home purchase.

Q: What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences per the IRS.

It is important to note that you cannot purchase a home from — among other family members — your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.

Q: I've heard that I could be required to repay the credit if I do not occupy the new home for at least 36 months from the purchase date. Is this true?

Yes. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at that time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit.

Q: Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. However, for the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been purchased on the date the owner first occupies the house, not when the lot was purchased or construction began on the property. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).

Q: I am not a U.S. citizen. Can I claim the tax credit?

Perhaps. Anyone who is not a nonresident alien (as defined by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. The IRS provides a definition of nonresident alien in IRS Publication 519.

Q: Is a tax credit the same as a tax deduction?

No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives an $6,500 tax credit would owe nothing to the IRS.

Q: Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Q: HUD allows monetization of the tax credit. What does that mean?

It means that (in theory) HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund, provided the FHA lender offers the option of purchasing the tax credit in advance.
Q: For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?

Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount. (Again, your CPA or accountant should be consulted on this.)

Q: Where should I get the most reliable and up-to-date information from regarding the $6500 repeat home buyer credit?

From your tax advisor or the IRS directly. While the credit is specific to the purchase of qualified real property, it is still a tax issue, and not a real estate or mortgage matter. As such, it falls under the taxation and revenue codes of the IRS. Your tax professional or an advisor at the Internal Revenue Service is best equipped to provide you current information about this new credit.

Looking forward to working with you this year.  Please feel free to call with any questions.  I don't have all the answers but I generally know someone who does.  And, I am NEVER too busy for any of your referrals! 

LOVE THY NEIGHBOR ...

Being a Christian, I love the Christmas season.  It brings hope and laughter and love, even in economic recessions.  It reminds us to be kind, faithful, patient.  After all, Jesus is the reason for the season! 

We think about our neighbors more during the Christmas season.  We reflect on their choice of decorations (indoor and outdoor.)  We listen more intently to their declarations (in church and out .)  We have expectations of their kindness and consideration.  We are reminded of bible verses and hymns. Unfortunately, we are also sometimes reminded of the old addage, "keep your friends close and your enemies closer."  This, my friends, is a "high profile" season.  Whether you're a shopkeeper, neighbor, relative, teacher, fellow student, employee, sports fan, politico or zealot of one sort or another, this season shines a light on you in so many, many ways. 

I recently wrote about my experience with a local business owner in my Facebook...how I felt wronged by his less than stellar business policy and questionable ethics...how I felt cheated by his treatment, not just financially but emotionally as well.  I pledged a vendetta of negative marketing as my revenge.  I had all the tools at my disposal.  I devised a plan to bring him to justice.  Then I realized how much energy it takes to wage such a war or to even envision it.  I began to rethink my plan.  How much better might it be to try to help people avoid being ripped off by simply educating them about the problem.  How short lived my vendetta would have been versus how long lasting and far reaching my informational tips could be.  I reflected on various ways to help others avoid being ripped off both during the Holiday Season and throughout the year instead. I relected on a quote by Isaac Bashevis Singer...

Life is God's Novel, Let him write it! 

In that decision was my clarity.  How we move forward in life is a statement of who we are and how we love.  In checking our own perspective, we can influence others as well.  As the cat in the photo teaches us, there's a lot more going on than we'll ever really understand individually.  With the help of our friends and neighbors and relatives and yes, even those who disparage us or rip us off, comes life's lessons to be learned and shared for their worth and value - as opposed to their pain and suffering.  In this season, as in all seasons, We Are Not Alone.  

God Bless Us Everyone and

 Merry Christmas!!

Oh, and by the way, if you want my recommendations for businesses and service people in the South Bay, please visit my Online Business Directory

and I'm NEVER too busy for your referrals!

Charlie and Team South Bay

Wish you a safe and joyous Holiday

 and a Prosperous and Engaging 2010!

First Time Homebuyer Tax Credit Extended Into 2010!

Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?

The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.


Higher Income Caps in Effect

The amount of income someone can earn and qualify for the full amount of the credit has also been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sales price of $800,000.


Frequently Asked Questions...

What is a tax credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

How do I claim the credit?

For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf

Can I claim the tax credit in advance of purchasing a property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

 Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?

Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

You do not use the home as your principal residence.

You sell your home before the end of the year.

You are a nonresident alien.

You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?

Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?

Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?

No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any additional questions about the First Time Home Buyers Credit or any other real estate related questions please call me anytime.  If your question needs to be answered by a CPA or tax preparer and you do not currently have one, I'll be glad t refer to you in my network. 

And of course, I am NEVER too busy for your business or referrals.  Please let me know how I may be of service to you with any of your South Bay or Southern California Real Estate Needs.  I also have a great network of brokers outside our area ready to handle your business as well. 

California Association of Realtors 2010 Market Forecast

Here's a summary of the 2009-2010 Market Analysis and Forecast by the California Association of Realtors Chief Economist Leslie Appleton Young.  I have the 100 page document in PDF for all areas of California.  If you would like information for any particular area or market, let me know and I'll send it to you. 



By Leslie Appleton Young

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to C.A.R.’s "2010 California Housing Market Forecast," presented today at CALIFORNIA REALTOR® EXPO 2009 in San Jose. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.


“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”


“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”


“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000. The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government.”

(The photo at the top is for my new listing at 12 Avenida De Camelia in Rancho Palos Verdes.  You can view all the additional pics and information at http://www.12avenidadecamelia.com/ or call me for your private preview today!) 

Firestorms 2009 Legal Issues from C.A.R.

The following information is brought to you courtesy of

The California Association of Realtors.

Many of us have experienced a loss this season or have friends or loved ones who have been impacted by the firestorms. I hope this information will be helpful in answering some questions regarding real estate transactions and the impact of the Firestorms on real estate contracts and personal obligations. This is not intended as legal advice or tax advice.

The seasonal firestorms we experience in California raise several legal questions for REALTORS® and their clients. The following questions and answers may be helpful for property owners and residents who have suffered a loss, or for buyers who are in escrow to purchase property involved in the disaster.

Q 1. What are the general rules concerning who bears the risk of loss in a real estate transaction where an "Act of God" or other disaster, such as fire, affects the property?
A If the purchase contract between the parties does not specify who is to bear the risk of damage or loss to the premises during the time between the execution of the contract and the transfer of title, the liability of the parties is governed by the California Uniform Vendor and Purchaser Risk Act (Cal. Civ. Code § 1662). Under the provisions of this statute (assuming no fault on the part of the buyer), the risk of loss or damage to the premises is carried by the seller until the buyer receives either title or possession. If all or a material part of the premises are damaged before title or possession is given to the buyer, the buyer can cancel the contract and recover any portion of the purchase price paid. It is not clear whetherthe buyer can alternatively elect to enforce the contract with a reduction in the purchase price equal to the loss of value or cost of repair. (Cal. Civ. Code § 1662.) After the buyer has taken possession or has received title,the buyer bears the risk of loss or damage to the premises (assuming no fault on the part of the seller). Therefore, if the premises are damaged, the buyer must still complete the contract and pay the balance of the purchase price. (Cal. Civ. Code § 1662.) If the purchase contract does contain a risk of loss provision, that provision will govern to the extent it is different from or more specific than the Uniform Vendor and Purchaser Risk Act (Uniform Act) (Cal. Civ. Code § 1662).
Q 2. May a buyer get out of a purchase contract under the Uniform Act if the damage or loss caused by fires to the property is minor?
A Probably not. The Uniform Act implies that the seller may still enforce the contract if the damage is not material. However, a purchase agreement may require the seller to repair such damage. For example, Paragraph 7A of C.A.R.'s Residential Purchase Agreement requires the property to be maintained in substantially the same condition it was in on the date of acceptance. Under this language, a seller could be obligated to repair fire-related damage to his or her property.
Q 3. May a buyer get out of a purchase contract under the Uniform Act if the damage or loss caused by fires to the property is major?
A Yes. To repeat, if (1) neither legal title nor possession has transferred from the seller to the buyer, and all or a material part of the real property is destroyed by fire, and (2) no express contract provision to the contrary exists, then, under the Uniform Act the seller cannot enforce the purchase contract and the buyer may cancel and recover any portion of the purchase price already paid. (Cal. Civ. Code § 1662.)
Q 4. If the damage is not severe, does the timing of the fires (whether they occur before or after an inspection) affect the right to cancel?
A Yes. If the damage occurs before the buyer has removed an inspection contingency in his or her purchase contract, the buyer can, of course, exercise any inspection, disapproval, and cancellation rights provided by the contract.
If the damage occurs after the buyer has removed his or her inspection contingency, the buyer generally does not have an automatic right to reinspect the property and approve or disapprove of its condition under most purchase contracts (including C.A.R.'s Residential Purchase Agreement). However, the seller may be obligated to repair the property. A purchase agreement may, however, require a seller to disclose fire-related information, which in turn may give a buyer a right to cancel a transaction, even if he or she has already removed contingencies. For example, Paragraphs 5A(3) and (4) of C.A.R.'s Residential Purchase Agreement provide that if,prior to the close of escrow, the seller becomes aware of adverse conditions materially affecting the property, the seller must provide a subsequent or amended disclosure or notice, which then gives the buyer a right to cancel the agreement.
Q 5. Must a seller disclose major fire damage that has not been repaired when attempting to sell the property?
A Yes. For sales of residential one-to-four unit properties, the Real Estate Transfer Disclosure Statement (TDS), Section II (Seller's Information), paragraph C.9, asks:
"C. Are you (Seller) aware of any of the following: . . . 9. Major damage to the property or any of the structures from fire, earthquake, floods, or landslides.______ Yes ______ No." (Cal. Civ. Code § 1102.6 (emphasis added).)
In addition, for both residential one-to-four unit and other properties, the seller is required to inform a buyer whether the property is located in a "very high fire hazard severity zone" (which has certain maintenance requirements) or a "state responsibility area" (which may contain substantial forest fire risks and for which the state has primary financial responsibility for fire prevention and suppression). (Cal. Civ. Code §§ 1103.2 et seq.) The disclosure of these and other natural hazard zones is discussed more fully in C.A.R.'s legal article, Natural Hazard Disclosure Statement.
For all types of property, the general requirement of disclosing known material facts affecting the value or desirability of property applies.
Q 6. Must a seller disclose the fact of a fire when there was no major damage to the property?
A Yes, if it is a material fact affecting the value or desirability of the property to the buyer. Even though the property may not have suffered major fire damage, the seller may be aware of other factsrelated to the fire that the buyer might not be aware of. Of course, a buyer must also exercise reasonable care to protect himself or herself in a real estate transaction, and is not excused from discovering problems that are within his or her diligent attention and observation.
Q 7. Must a seller disclose the fact of a fire when there was major damage to the property but it has been repaired?
A California law does not clearly answer whether a seller must disclose past property defects and repairs. At the present time, the law does not appear to require disclosure of past defects and repairs unless the problems may be persistent. In other words, a defect which has been fully repaired and no longer threatens the value or desirability of the property probably need not be disclosed. On the other hand, defects which are difficult to remedy and which may continue to plague the property may have to be disclosed. Given some uncertainty in this area of the law, many sellers may prefer to resolve doubts infavor of disclosure to minimize the risk.

Q 8. What are the tax effects of destruction of a property?
A Federal income tax law provides for the deduction of "casualty losses," which include destruction of property by "Acts of God" including fire, theft, and certain other types of losses. (See 26 U.S.C. §165.)
The following is a brief summary of the rules:
(1) For business property, the casualty loss is fully deductible. (26 U.S.C. §165(a).)
(2) For non-business property of individuals, losses from "casualties," including floods, earthquake, fire, storm, or other natural occurrences, are generally deductible only to the extent that the total of such losses exceeds 10 percent of the taxpayer's adjusted gross income for the year of loss. Any loss is deductibleonly by a taxpayer who itemizes deductions. Each loss is subject to a $100 floor. The amount of a casualty loss is the lesser of, (a) the difference between the value of the property immediately before and after the loss, or (b) the adjusted basis of the property immediately before the loss. (26 U.S.C. §165(c)(3) and (h).)
(3) If the loss results from a disaster that the President determines to be eligible for federal assistance, the taxpayer has the choice of deducting the disaster losses on his or her return either, (a) for the year in which the loss occurred, or (b) for the preceding tax year. (26 U.S.C. §165(i).)
See the Internal Revenue Service's website for more information. For a copy of the IRC code, go to U.S. Code Online and enter 26 for the title and 165 for the section and click on search.
Please contact an accountant or tax attorney for further details about the tax effects of fire losses on a particular transaction.
Q 9. Can a landlord or tenant terminate a lease or a rental agreement if all or parts of the premises are destroyed by fire?
A Yes. Under California Civil Code Section 1933(4), the agreement is terminated automatically if the entire premises are destroyed, unless the parties have agreed to something different. In the event the premises are only partially destroyed, the tenant can terminate the lease by notice to the landlord if the landlord had reason to believe at commencement of the lease or rental agreement that the portion destroyed was a "material inducement" to the tenant to enter into the lease (Cal. Civ. Code §1932(2)).Again, any contrary agreement between the parties will govern.
Q 10. Can a landlord collect further rent after the lease or rental agreement is terminated due to destruction of the premises?
A No. The obligation to pay future rent is extinguished when the rental agreement is terminated. However, a tenant may still owe back rent.

The information contained herein is believed accurate as of September 2, 2009. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney.

Please call me with any questions ... if I don't have the answers, I'll get them for you! Let us know how we may be of service!

IT'S RAINING INSIDE MY MASTER BATH!

The weather has finally begun to show signs of summer. June gloom is edging away and the sunny Southern California sun has finally begun her tour across the South Bay. The air in the mornings is crisp and clean. As I walk with my dogs through the tall Pine trees, everything smells fresh and sweet at 6:00 a.m. with temperatures in the low 60's. Lomita Pines Photos

Now it's about Noon ... the sun begins to beat down ... and beat down... and beat down... and temperatures rise and my dogs find shelter on the cool stone floors, begging not to be put outdoors. I begin to remember those hot summer days I used to frolic through when I was 10. Now they create rivulets of sweat coarsing down my back but I digress...It is definately summer. 90 degrees+ Not normal!


Here in the South Bay we enjoy very mild weather patterns. We are actually quite spoiled by the weather. The cool breezes off the ocean or the harbor (depending on which side of the Peninsula your home is attached) keep us quite comfortable. We rarely use air conditioning. We pride ourselves on our conservative use of electricity in the summer.


At 5:00 I did it! I turned on the air conditioning. I just wanted to cool things down a tad before getting prepared for an evening event. Just a few hours of air conditioning usually do the trick. About 7:00 I headed for the master bedroom to get ready to go out. I walked into the master bath and there was a new "water feature" not unlike the one in my patio, but upside down so to speak. Water was not dripping but pouring from the light fixture in my bathroom. My brain went into shock as I tried to figure out what would cause such a thing to happen. The dogs and I watched for a few seconds and then it hit me. It had to be the air conditioner. The furnace is poised right above the bath. I pulled open the attic door and sure enough, water was pouring from the condensation tubing which should have been entering the drain provided for it's collection. I rushed to shut down the air conditioner and gathered up a mop and towels and started cleaning up the new lake in my bathroom.


Since this is the beginning of the summer season for many of you, my story is meant as a reminder. Many of us have not used our air conditioner for six months or more. Many things can occur in that period of time. The drains get clogged, The tubing escapes from the fittings. Mold has formed in the tube or drain. Remember to remind your clients (and friends and husbands or wives) that summertime is a good time for a air conditioning "dust and clean." We change the filters and vacuum the vents but we don't think about the fragile mechanical parts until something like this happens. It's not a bad idea to have the air conditioning people take a peek and make sure you're ready for the season! Flooding does not help to cool the house in the summer ...

By the way, if you need a few recommendations for help around the house, check my Business Referral Directory and let them know that Charlie sent you - they'll take good care of you!




Good luck and God Bless. Let me know if you have any helpful hints for homeowners preparing for the summer season.


Charlie


Team South Bay Realty

JUNE GLOOM IN THE SOUTH BAY

June and everyone is getting ready for beach weather but here at the beach it's June Gloom time. Hard to figure out sometimes why the beach weather is always best around October. I lived on the beach for 15+ years and my toes never touched the water until late August. Hearty souls racing through the surf without wetsuits in June amuse me! Any surfer knows the coast will not be kind for 30+ days.

But I digress...this year the gloom is on the market! Albeit June, but not the same kind of gloom. Just as we begin to dip our toes in the icy waters of real estate this frightful year, hearing hopeful words from our courageous leaders about fabulous first time buyer programs, lowest interest rates in history, markets trending upwards, here come the clouds (or as Judy Collins used to sing..."bring in the clowns.") Of course as the summer season begins to heat up, Bernanke starts to cool down. I find myself screaming at the newsbusters - FOCUS, FOCUS, FOCUS! (Too bad Mervyns closed down, I loved those OpenOpenOpen commercials)

And so, as our fearless leader races around the globe trying to solve world problems and make nice and our governator beseeches us to be flexible with our tax dollars, I ponder...is it my imagination that 70% of the listings are "short sales" and now they are raising the interest rate?

If June Gloom happens in the forest and nobody sees it does it really exist?

As Judy Collins sings ... Isn't it bliss...don't you approve...one who keeps tearing around...one who can't move...where are the clowns?...send in the clowns...don't bother they're here!