When it comes to purchasing a home in Santa Cruz many home buyers may be apprehensive when it comes to two words: down payment. The down payment on a home is an out-of-pocket amount of money that the buyer puts into the purchase of the home. It is like a qualifying deposit for your home mortgage loan to help communicate to your mortgage lender that you are putting your money where your mouth is. That you are taking the purchase seriously and not just asking for money you do not plan to be responsible with and pay back over time.

The traditional talked about number for a down payment to qualify for a loan has been 20% of the total home purchase price. While this is still a good number that can help homebuyers to secure the best mortgage loan terms it is a misconception that it is a requirement. Some homeowners have been led to believe that unless they have 20% of a home price in cash ready to go when they purchase a home, they will be unable to purchase one.

Looking into current statistics from recent purchases

There is good news for anyone in Santa Cruz considering purchasing a home in the near future that may not have the full 20% to make for a down payment. Looking into the actual numbers of real home purchases across the country recent homebuyers put far less down on their home purchase than the traditional 20%.

There are more options available to homebuyers that do not require the 20% down payment. When looking at the averages of what recent...

What is Escrow?

If you have ever dealt with buying or selling real estate you have probably heard the term escrow before. If you have never purchased a home this term may have you asking, "What is Escrow?"

Where real estate is concerned escrow is an account used as a secure holding place for important items like the earnest money check and all applicable contracts. These items are kept by an escrow company and the company stores each property's details in a separate account until the purchase deal has officially closed and finalized. 

Escrow also refers to the contractual agreement to have a third party keep all escrow documents safe through the oversight of an escrow officer. 

How Does Escrow Work?

An escrow agent, which is a third-party assigned agent usually from a closing company, is assigned to the transaction and is there to oversee the steps of the closing process to make sure things are in order and running smoothly. This can include the transfer of money and documents as well as holding assets like money and payments safely in the escrow account until they are due to be released for payment.

When all of the conditions of the purchase contract have been met and the mortgage has been fully approved, the closing costs have been paid, money has been transferred to pay off the current mortgage, and a check is written for profit to the sellers, the escrow officer will clear all records like the titles and make sure the new buyer is the new legal owner of the home.

How Much Will Escrow Cost?

The cost of escrow varies depending upon...

Many of the Monterey Bay cities have started addressing groundwater contamination. As a Monterey Real Estate broker, we have to get these inspections done as part of a sale in most cases. These inspections and repairs are often required as a condition of sale for single family homes and sometimes townhomes. Condominiums are often exempt for individual owners. If there's a leak or break in the pipes, those will need to be repaired, typically by the seller. The main sewer lines in question are between the home and the sewer main in the street. Oftentimes the yard has to be dug up, or if the connection at the main is faulty, the street. This can be expensive due to traffic mitigation and the depths sometimes of these connections. 

These leaking sewer pipe issues can be from the old clay or transite pipes that were used and having joint separations, to plastic lines that tree roots have invaded the couplings. Some plumbing companies pull in completely new single piece polyethylene that is then put in the line of the old faulty line. This "trenchless" style is the least disruptive of landscaping and walkways. A single line with no joints to separate or for trees to get their roots in is probably the best long term solution in my estimation. 

Typically these inspections are up to $350 to do with the camera, though some are free. That video file is sent to the appropriate jurisdiction and the public works personnel then directs what they think needs to be done to bring the pipe into compliance. It had been my belief the offending issues were more fecal matter contamination, but as you can see, quite a few drugs are causing potentially a much greater and more disruptive issue in the ecosystem. Fecal matter has always been a part of nature but these drugs have not.

The 2021 infrastructure bill may not address...

Seabreeze Tavern in Rio Del Mar is coming down. The storied tavern is finally meeting it's demise. A suspicious fire likely caused by the former owner who was being foreclosed on doomed this old institution. Structurally weakened and riddled with damage and asbestos and lead paint, the structure wasn't salvageable. It's likely incarnation is to be a restaurant and apartments atop. That would be a nice addition to the neighborhood and give some life back to a place that had a colorful past.

Is your home hard to insure?

Don’t fret! Your home is not uninsurable.

The California Fair Access to Insurance Requirements (FAIR) plan is your insurer of last resort. You have to exhaust all efforts to benefit from this.

The California Fair Access to Insurance Requirements (FAIR) plan is an insurance pool established to guarantee the availability of basic property insurance to those who have been unable to obtain insurance through the voluntary insurance market.

Homeowners in wildfire-prone regions may need to turn to the FAIR Plan if they cannot find insurance elsewhere.  You should exhaust all other avenues before going with a FAIR Plan policy, which should only be considered a last resort.

A FAIR Plan policy is pretty bar bones: it will cover losses due to fire and smoke and it will satisfy a mortgage company’s requirement that a home be insured, but it will not cover damages from earthquake, theft, vandalism or personal liability.  As of April 1, 2020, the FAIR plan’s combined dwelling coverage limit is $3 million, up from $1.5 million.  For more information visit cfpnet.com

Common Interest Developments:
Requires common interest developments (CIDs) to allow at least 25% of owners to rent or lease out their units starting January 1, 2021, regardless of whether the HOA has formally amended their governing documents.

This law:

1) Authorizes a CID to impose reasonable rental restrictions that have the effect of limiting the total number of rentals to 25% or higher of the individual dwelling units in the CID. Provides that ADUs and junior accessory dwelling units (JADUs) must not be counted toward this cap. Provides that such a cap must not change the right of an individual owner who was renting their unit out prior to the effective date of this law, to continue renting out their unit.

2) Requires CIDs to follow the requirements of this law on January 1, 2021 and requires amendments of governing documents to be completed by CIDs by December 31, 2021. Requires CIDs to comply with this law regardless of whether the governing documents have been amended.

3) Provides that a CID that violates the provisions of this law must be liable for a civil penalty of up to $1,000.

Assembly Bill 3182 is codified as Civil Code Sections 4740 and 4741, and Government Code Sections 65852.2.

Effective January 1, 2021.

Young Writers Program Gala

Dance Benefit Portuguese Hall

Friday, Feb. 21, 2020
6:00pm - 9:30pm
Portuguese Hall, Harvey West Park

Help fund the 2020-2021 writing publications and support Branciforte Middle School

Music by the Joint Chiefs, Silent Auction, Delicious Appetizers, Photo Booth, Poetry Readings, B40 Band, and Kids Corner.

If you are in the market for a new home, you have probably wondered whether it would be better to choose an existing home or invest in a newly constructed home. Both options have advantages and disadvantages, so to decide which is right for you, it is important to focus on needs and desires. Here are some pros and cons of buying a new construction. 

Pro: Brand New Home 
Buying a new construction means you will be the first to occupy it. Everything is pristine, no one has ever used the oven or the blinds, and there are no hidden surprises. Some people prefer the “lived in” feeling of an existing home, but if you enjoy things that are clean and shiny and new, you will probably enjoy a new construction.

Con: Some Builders Are Not Great
If a home has existed for some time, it is likely that any building problems were fixed long ago. With a new construction, your home’s quality is only as good as its builder. A builder who cuts corners could leave you with a substandard home that has problems from the outset. Guard against this by looking beyond the builder’s website. Check with homeowners who used that builder to find out if they are happy, and search public records for significant complaints. 

Pro: Customization
Exactly how much you get to customize your new home depends on the nature of the construction. You have the most options if you hire an architect, a designer, and a general contractor to start from scratch, and the fewest options if you buy into a new development with a handful of floor plans.

Either way, you will get more choices than you would when buying an existing home, especially if you are interested in things like extra windows or underfloor heating that would be difficult to retrofit. If you enjoy the design process or are particular about everything from trim colors...

The average person moves more than 11 times in his or her life, but it can be tough to know for sure if now is the right time. If you find yourself browsing property ads, are you really ready to buy a new house, or do you simply have wanderlust? Fortunately, you can look for these signs that it is definitely time to make a move. 

Your House Is Too Small 
If you’re in a starter home, it might have seemed huge compared to the apartment where you used to live. Eventually, though, a starter home can start to feel like a cage. If your family is growing or you simply want more space, it might be time to start looking for a bigger house.

Your House Is Too Big 
At the other end of the spectrum, you might be tired of cleaning and maintaining a sprawling home. If your kids have moved out and you are ready to start getting rid of “stuff,” downsizing can feel like a blessing. Start shopping for a smaller home. 

Your Neighborhood Is Unsafe
Neighborhoods tend to change over time. Unfortunately, sometimes they go downhill. If you’re afraid to walk around after dark or are starting to hear frequent police sirens, it might be better to move to a safer neighborhood.

Your Commute Is Unreal
Unfortunately, traffic is getting worse and worse across the country, making many people’s commute longer than ever before. If you’re tired of spending hours in the car twice a day, it may be time to look for a house closer to your office. 

The Stairs Aren’t Fun
For some people, aging takes its toll. Others develop chronic health conditions, often after an injury or illness. Regardless of the reason,...

Most people realize that in some areas of the world the levels of outdoor air pollution are very high. What many people don't realize is that the air inside of their homes may be more dangerous than the air outside. There are a number of hazards inside the average family home...

Why is that?

Unless you are  sleeping in a bed of $$$, a negative credit score can keep you from borrowing money to buy these charming homes in Carmel.

Improve your credit history to get better loan rates.  Check your credit score for FREE at www.annualcreditreport.com - the only source for free credit reports - Authorized by Federal Law.

"Have you checked your credit score recently? Millions of potential homebuyers could now have easier access to mortgages, following a change to the way the three largest U.S. credit reporting firms handle negative credit events.

That change is the National Consumer Assistance Plan (NCAP). Launched by Equifax, Experian and TransUnion, the plan sets forth the goal of making credit reports more accurate for consumers and makes it easier for them to correct any errors they may find on their...

In today's world, millions of people are searching for health strategies that can empower them to lead more productive, peaceful lives. If this is the case for you, it's important to know that yoga may be an exercise modality that you can use to realize your objective. Learn more about yoga now by reviewing the information provided in this quick reference guide:

Yoga: A Brief Overview

The Sanskrit word "yoga" translates to the term "yoke" in English. The term yoke is connected to the concept of attaching or joining. As many yogis know, the practice is designed to promote multiple types of union. First, yoga links the individual's mind and body. Yoga can also be utilized as a spiritual enterprise that promotes union between the human spirit and its divine source. Finally, sharing space with other people as one practices yoga can promote a sense of connection and community between individuals.

Different Types Of Yoga

There are multiple forms of yoga that an individual can practice. Some of the more popular forms include:

Hatha Yoga

Hatha Yoga is a relatively simple yoga style that has become immensely popular in America. Deemed the foundation for all yoga modalities, the...

Monterey County Median Price Trends 2002-2017 (by quarter)

Pest-Termite Tenting Burglary Alert

I work in the Monterey Bay real estate market. I have become aware from a victim of a new type of burglary. When a home is tented for termites one has to vacate, poisonous gas is set off in the house and a big tent is draped over the house for several days.

I've learned that burglars are now attacking homes when they are most vulnerable. When the tent is on, the burglars have been cutting through the tenting or unclamping the seams and entering the house and ransacking it. It appears they would be wearing gas masks and using flashlights. As this tent is on for several days, it might be that the burglars are long gone before you get there and find your life and house has been turned upside down.

What can you do to prevent your home from being burglarized?

When a home is fumigated, it is done by licensed pest control operators. They have the utility company turn off the gas to the house, then tent it. After the home is sealed, they set up cannisters that release the gas. When the allotted time 2-3 days often is up, they take the tent off ,then test for residual gas. If there is any, they open windows to allow the fumes to evacuate.

So during this time you can set your alarm after they have...