Category Archives: Real Estate

Real Estate

Attorney General Bonta Announces $15.5 Million Judgment Against Rent-A-Center

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Attorney General Rob Bonta

Attorney General Bonta

OAKLAND – California Attorney General Rob Bonta today announced a $15.5 million settlement against Rent-A-Center, one of the nation’s largest rent-to-own companies, for violations of state consumer protection laws relating to unlawful leasing practices and deceptive marketing. An investigation into Rent-A-Center’s “kiosk” business that operates out of traditional retail stores found that the company used an inflated “cash price” for products that was 15% higher than the retail price, potentially costing consumers hundreds of extra dollars, among other violations. As part of the stipulated judgment resolving the Attorney General’s investigation, Rent-A-Center will be required to comply with significant injunctive terms to deter future misconduct, pay $13.5 million in restitution to California consumers, and pay $2 million in civil penalties

Today’s judgment will substantially reform Rent-A-Center’s Preferred Lease business model and deter future misconduct with extensive injunctive terms, including:

  • Cash Price Markup: Rent-A-Center is prohibited from charging a cash-price markup. The cash price must match the price advertised to the customer by the retailer;
  • Returns: Rent-A-Center is prohibited from preventing or limiting customer returns in any way;
  • Marketing: Rent-A-Center must clearly and conspicuously disclose that its Preferred Lease program is a rental-purchase transaction. Rent-A-Center must also provide each customer with a “Know Your Rights” document informing consumers about various key terms of their rental-purchase agreement;
  • Employee Training: Rent-A-Center must train employees regarding the Karnette Act generally as well as the specific injunctive terms in the settlement;
  • Monitoring and Reporting: Rent-A-Center will be required to prepare annual reports for the Attorney General describing its efforts to comply with the settlement for three years; and
  • $15.5 Million Payment: Rent-A-Center must provide $13.5 million in restitution to the tens of thousands of Californians who entered into contracts containing the 15% upcharge. Rent-A-Center must also pay $2 million in civil penalties. 

Customers who rented merchandise from Rent-A-Center through its “kiosk” business located inside traditional retailers are eligible for restitution. Eligible individuals will receive a notice at their last known mailing address

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Real Estate

Buildable land in the most desirable areas is in short supply

The sky may be infinite, and the oceans are vast. But land is finite, and there is a shortage of it to build homes on, accord to a recent NAHB/Wells Fargo Housing Market Index report.

The survey asked a panel of single-family builders to categorize the supply of lots in their market areas as “very high,” “high,” “normal,” “low,” or “very low,” as well as giving them an option to say they didn’t know or were not sure. NAHB’s Paul Emrath says, “In response, 58 percent of builders said the supply of lots was low (40 percent) or very low (18 percent). This is down somewhat from the all-time peak of 65 percent in September of 2018, but higher than it had been at any time before 2013 (NAHB has been asking the same lot supply questions on its HMI survey periodically since 1997).”

Housing starts, after averaging 1.5 million from 1960-2007 and hitting a peak of 2 million in 2005, has recovered only to about 1.2 million a year. If you compare the boom period in August of 2005, the share of builders characterizing lot supply as low or very low was 53 percent — 5 percentage points below the latest number.

According to Emrath’s article, in September of 2019, the lot shortages tended to be especially acute in the most desirable locations — not a surprise. That shortage tends to increase lot prices and reduce lot sizes. Visit any new subdivision in a desirable area, and the most affordable homes are increasingly on smaller lots. Census data show that the median size of new home lots remains near a record low, while the median price of new home lots is at a record high. All of this is a huge reason for the lack of affordable housing. And no one we know is creating more buildable land.

Source TWS Group

Real Estate

Sellers Market May Be Changing To Buyers Market

Scotts Flat Lake taken from my deck John J ODell

The real estate tide is turning, according to Fortune Magazine’s Chris Morris. What was once a seller’s market, complete with frenzied offers and multiple bidding, is beginning to smooth a bit, becoming what Realtors refer to as a “balanced market” where homes stay on the market a tad longer, and buyers actually have a chance to negotiate.

The National Association of Realtors says existing home sales in January dropped to their lowest level in three years, with existing home sales down 1.2% to an adjusted annual rate of 4.94 million units last month. That’s below analyst expectations and an 8.5% drop from a year ago. According to their stats, only the Northeast saw a rise in sales activity.

And while home prices are still showing increases, they’re nowhere close to the rise we saw in recent years. The median price of an existing house climbed 2.8% in January to $247,500, the smallest increase since February 2012. According to the article, prices have increased for 83 consecutive months, but experts are now saying that trend could be ending. All that means is that buyers now have a chance to participate in the American Dream.

“The number of homes on the market is starting to rise, too, meaning buyers have a wider selection to choose from,” says Morris. “In January, there were 1.59 million previously owned homes on the market, compared to 1.53 million in December. The average home stayed on the market 49 days, a week longer than January 2018.” Forbes real estate also predicts the wave of first-time home buyer demand will be met by somewhat higher inventory levels than in 2018, according to a year-end article by Aly Yale.

Morris goes on to cite the NAR’s chief economist, Lawrence Yun: “Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.” 

So if you’ve got a house on the market, patience is a virtue, along with pricing it to sell. And if you’re in the market to buy, prepare to have more to choose from.

Source: Fortune, Forbes, NAR, TBWS

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    Real Estate

    Aging in Place’ helps to fuel housing shortage


    Source Galaxy Clipart copyright free

    As the baby boomer generation has aged, it has also stayed put. And for all the innovations builders and product manufacturers have come up with to help seniors “age in place.” they may have also made it difficult for would-be homebuyers, causing a lack of housing inventory.

    According to a new report from Freddie Mac, 2019 will see a significant shortage of available homes here in the U.S., failing to meet needs by 2.5 million units. It doesn’t help that at the same time millennials are buying fewer homes at this point in their lives compared with previous generations at similar periods.

    As seniors continue to prefer to stay where they are as the optimal way to live out their remaining years, housing inventory has tightened nationally. According to the report, for people between the ages of 67 and 87, homeownership rates dropped by 11.6 percent for previous generations but only 3.6 percent for the current (leading edge) generation of seniors, identified as having been born between 1931 and 1941.

    New advances in information technology may be the culprit, as well as accessibility to better healthcare and education, with the report crediting those advancements as “boosting and extending” housing demand among seniors. The result? The current senior generation has become much slower in transitioning out of homeownership than prior generations.

    The U.S. Census Bureau says lost units will need to be replenished at a rate of 350,000 homes per year in order to bring the market to a “well-functioning” status. “Vacant homes increase liquidity in the market, enable prospective buyers to find a match, and give prospective sellers confidence to list their home for sale,” the Freddie Mac report states. “Vacancy rates are an important indicator of housing market vitality. Too high a vacancy rate reflects a moribund market, while too low of a rate reduces the efficiency of the marketplace.”

    While this does not bode well for home shoppers, it will boost spending on renovations, according to Chief Economist Sam Kater. “We believe the additional demand for homeownership from seniors aging in place will increase the relative price of owning versus renting, making renting more attractive to younger generations.” If that is true, however, those in a position to purchase the limited number of homes available may well see their property values increase more quickly than anticipated.

    Source: thetbwsgroup

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      Real Estate

      Cats Have Their Own Apartment

      Why Do Cats Meow
      Photo Courtesy of Women’s World

      Two cats in Silicon Valley are the pampered renters and sole occupiers of a $1,500 per month studio.

      The landlord says the cats haven’t made much fuss, keep to themselves, lounge around in a cat tree most of the day, and always pay their rent on time—the prrrrfect tenants, you might say.

      “It’s quirky isn’t it?” landlord David Callisch told CBS San Francisco (KPIX). “People love their pets, they’re part of their family.”

      The father of Victoria Amith, a freshman at Azusa Pacific University in Southern California is paying for his daughter’s cats to have their own pad because she couldn’t take the cats, Louise and Tina, to her dorm with her when she started school. The man’s fiancé’s dog and the cats weren’t getting along at his home in the Bay Area, so he approached Callisch and offered to rent the studio, located behind a single-family home in Willow Glen, Calif., for the pets.

      Studios in Willow Glen typically rent for just under $2,000 per month, KPIX reports, so the cats are getting a bargain at $1,500. Callisch feeds the cats every day. Amith visits them on breaks from school.

      Amith emphasizes that the cats are using space in someone’s backyard and that the arrangement is temporary “There’s obviously a huge housing issue in the area, and I don’t want people to be like, ‘Oh, this is taking away the housing,’” Amith told KPIX.

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        Real Estate

        DRE Consumer Alert Regarding Wire Fraud in Real Estate Transactions

        Real estate transactions in today’s world often involve the wiring or electronic funds transfer (EFT) of money to complete a deal. Previous consumer alerts have referenced or covered wire fraud in timeshare transactions and fraud against seniors.

        Wire transfers and EFT’s in real estate purchase transactions have become the targets of criminals who interject themselves into a real estate transaction by posing as a party in the transaction. In these cases, the criminal often takes on the identity of a title or escrow company or real estate agent in the transaction and provides legitimate-looking instructions directing the buyer where to wire or transfer funds. These instructions result in the wiring or transfer of funds to the criminal’s bank account, often overseas, and the immediate loss of thousands, or hundreds of thousands, of dollars to the victim.

        These are sophisticated, professional-looking attacks on your real estate transactions, and you need to be on the lookout. Cyber criminals may convincingly take on the identity of legitimate parties to your transaction, using authentic-looking logos and personal details in communications, in order to make you or your clients feel comfortable. It is best to be safe in how you respond, and to assume that your transaction is being targeted.
        What can you and your clients do to avoid such criminal activity?

        1. Whenever possible, use alternatives to wire transfers or EFT’s, such as cashier’s checks, and get a receipt. For smaller transactions, make the payment in person by check or credit card and get a receipt, as these payment sources provide you with proof of payment.

        2. Obtain phone numbers and account numbers of real estate agents and escrow-holders at the beginning of the real estate transaction, and use those numbers throughout the transaction.

        3. Even if it looks or sounds legitimate, do not act on a change of wiring or EFT instructions that you receive electronically (via e-mail) or via phone call. If your real estate transaction will utilize wiring or EFT of funds, and you (or your client) receive an instruction change about wiring or EFT of funds, call the real estate agent or escrow officer by phone at the known number you obtained at the start of the transaction and verify new instructions before sending money. Better yet, if there is a wiring or EFT instruction change, instead make payment in person using cashier’s check!

        4. Do not send personal information (bank account numbers, credit card numbers, social security numbers, and financial details) by personal e-mail or text. Take steps to use a secure, encrypted site to send personal information, or provide this information in person.

        If you (or your clients) are victimized, it is critical that you or your client contact your depository institution and the Federal Bureau of Investigations (FBI) immediately in order to have a chance at halting the criminal transfer. File a report with the FBI by calling a local FBI office or reporting online at FBI Internet Crime Complaint Center.  Their web site is: bec.ic3.gov

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          Grass Valley, nevada county fair, Nevada County Information, Real Estate

          Nevada County Fairgrounds Country Christmas Faire Results

          Last weekend’s 34th Annual Country Christmas Faire at the Nevada County Fairgroundswelcomed more than 8,000 visitors and 115 vendors, featured 45 gingerbread houses and 75 coloring entries, and hosted a canned food drive.

          The 16 th Annual Gingerbread House Competition featured 45 entries. Of those entries, Best of Show ribbons and gift baskets donated by Tess’ Kitchen Store were awarded to Leeam Eaton, Owen Strolle, Johanna Pease, and Avery Lawson/Joanne Perilman. The People’s Choice/Best of Show Winner was Kathy Kinney, who received a gift basket from Tess’ and a cash prize.

          First place winners in the Gingerbread House Competition include Charlie McCollum, Breck Lumbard, Emelina Lumbard, Christian Augustine, Lilah Black, Evie Black, Hazel Duran, Annabelle Husak, and Deacon McCollum (age 5 & under); Leeam Eaton (age 6-8); Finn Beckin (age 9 – 12); Jessa Jaskier (Kits); Owen Strolle (age 13-17); Kathy Kinney (age 18 -64);

          Johanna Pease (Special Needs); S.S.J. Stalcup and Ramey Cousins (group – children); Avery Lawson/Joanne Perilman, and Margo Murphy (family); and Christie Harris (group – adult). At Sunday’s canned food drive, Interfaith Food Ministry collected more than 578 pounds of food for families in need.

          In addition, the Clear Creek School Errand Elves raised funds for science camp; and Big Horse Works, who provided carriage rides at the Faire, donated more than $300 to those impacted by the Camp Fire.

          The names of all the Gingerbread House Competition winners can be found on the Fairgrounds’ website at NevadaCountyFair.com

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            Real Estate

            Would You Buy A Haunted House?

            Halloween, Fantasy, Tale, Dark, Night, Creepy, Darkness

            Picture courtesy of Pixabay

            October 31, 2018

            Home buyers may be so anxious to find a home that they aren’t even spooked if it’s rumored to be haunted. A new survey says one in three consumers say they’re willing to take a chance on a haunted home, but there needs to be something to sweeten the deal for them, according to realtor.com®’s annual Haunted Real Estate Report, based on responses from more than 1,000 Americans. However, 18 percent said a home that is haunted wouldn’t affect their purchase decision at all.

            “In a competitive market, it’s harder for prospective buyers to be extremely selective,” says Danielle Hale, realtor.com®’s chief economist. “If a house is commensurately priced, or has desirable features, the fact that it may be haunted seems to matter less. This report shows that, for those looking for a good deal, a lower price, better neighborhood, or larger kitchen can balance out a few spooky happenings.”

            To Buy or Not?

            Realtor.com® researchers asked respondents to decide between purchasing a haunted or non-haunted home. Responses fell within these three categories:

            • I’ll buy, but sweeten the deal: A third of respondents said they needed an incentive to buy a haunted house. They could be enticed by a lower sales price, larger kitchen, or better neighborhood.
            • I’ll buy, nothing else required: Eighteen percent of respondents said they’d buy a home believed to be haunted without any additional enticements. Nearly a quarter of consumers between the ages of 35 to 54 said they aren’t spooked by a haunted home.
            • No way am I buying: Forty-nine percent said there is no price low enough, no kitchen large enough to make them want to buy a haunted house. Older generations appear to be the most reluctant to move into a haunted house, according to the survey. Sixty-one percent of consumers over the age of 55 said they would never buy a haunted house compared to 41 percent of millennials or Gen Xers who said they wouldn’t.

            Haunted homes are not uncommon in real estate. Nearly two in five consumers surveyed say they have lived in a haunted—or possibly haunted—house. Forty-four percent of respondents say they either suspected it or were fully aware it was haunted before moving in. What makes a home haunted house? Respondents said hearing strange noises (54%), odd feelings in certain rooms (45%), and erratic pet behavior (34%).

            Source: Realtor.com®

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              Real Estate

              Wildfire Risks Are Not Deterring Buyers

              Image result for images of forest fires

               

              The risk of wildfires isn’t deterring some home buyers from purchasing in an area, even if the area has been struck by blazes in recent years. Real estate prices in wildfire-prone areas are in line with homes in low-risk areas, even immediately after fires, according to a new study.

              Americans may watch media coverage of out-of-control blazes, mass evacuations, and even deaths from recent wildfires out west, but that isn’t deterring them from making these areas their home, notes Shawn McCoy, a research economist from the University of Nevada, Las Vegas.

              Residential growth in forested areas across the U.S. has significantly risen in recent years, increasing from an estimate 30.8 million housing units in 1990 to 43.4 million by 2010. More people living in such areas puts a greater risk for large-scale natural disasters, researchers note.

              Any impact to an area’s housing sales following a wildfire tends to rebound in one to two years after the blazes, researchers note. McCoy expects the same will occur in the recent California wildfires.

              “Despite an initial drop in real estate prices in risk-prone areas, the results of our study suggest that homebuyers’ initial fears about fire risk will fade, and development in risk areas may continue to increase,” McCoy says. “This is a problem: A lot of recent work shows that wildfires are not just a result of changes in global climates, but also rapid housing development into forested lands.”

              For the study, McCoy and co-author Randy P. Walsh of the University of Pittsburgh examined real estate transaction data from nearly 360,000 properties across eight Colorado counties, which had been affected by 18 severe wildfires between 2000 and 2012. The study has been accepted for publication in the Journal of Environmental Economics and Management.

              Source: “Wildfire Risk Doesn’t Douse Housing Demand,” University of Nevada, Las Vegas (Aug. 27, 2018)

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                Real Estate

                Four Things You Don’t Want To Put In Your Garage

                You’ve got lots of stuff, and the garage is a super-convenient place to put it. But putting these items out there could be hazardous—for them, or for you

                Source Realtor.com

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