Chic vs. Geek: Responding to Buyer Love Letters

We’ve talked about the pros and cons of sending “love” letters to sellers to highlight all the reasons you’re the perfect buyer for their home. But what are the do’s and don'ts for a seller who receives one?

CHIC (PEARL)

While they may seem harmless, buyer “love” letters can get a seller in trouble because they often include personal information that could reveal characteristics of the buyer like race, religion, or familial status. Why is that a problem? That information could create a conscious or unconscious bias in the seller’s decision to accept or reject an offer, which would violate fair housing laws.

GEEK (KEVIN)

At the end of the day, your decision to accept or reject an offer has to be based on objective standards, like the offer amount or the ability to pay in cash. We always let sellers know up front that we will never deliver buyer love letters, and we advise them to document the basic facts of every offer they receive and their objective reasons for saying yes or no to every prospective buyer.

Chic vs. Geek: The Benefits of Paying Taxes

Buying your first home can be a daunting commitment when you add up a monthly mortgage, property tax increases, and potential renovations. But there’s a silver lining to these expenses.

CHIC (PEARL)

It may seem like a long, uphill climb now, but I guarantee that nobody who bought their first home 10 years ago regrets the decision, no matter what they had to pay. That’s mainly due to the appreciation of the home’s value, but it’s also about the tax benefits. For one thing, you’re living in the home rent-free, and you’re not being taxed on income from renting the property. You can also deduct mortgage interest and property tax payments, as well as certain other expenses from your federal taxable income, as long as you take the time to itemize your deductions. Additionally, you can exclude capital gains you get from the eventual sale of the home – up to a limit, of course!

GEEK (KEVIN)

True, the benefits of homeownership outweigh any of the negatives, but it’s important to note that homeowner tax deductions and exclusions are worth more for folks in higher tax brackets than to those in lower brackets. For example, according to the Tax Policy Center, deducting $2,000 for paid property taxes saves someone in the top tax bracket about $740, but it only saves a taxpayer in the standard bracket $440. And despite representing only 26% percent of all taxpayers, folks with incomes of $100,000 or more get 90% percent of the tax benefits from the mortgage interest deduction. That’s because they’re likely paying more and itemizing their returns.

Chic vs. Geek: New Laws for 2022

A number of new regulations took effect in California as of January 1 that will impact the real estate industry.

CHIC (PEARL)

AB 1466 ensures that any discriminatory and/or racist language will be removed from all real estate covenants, as our industry continues to lead the way in building a more inclusive and respectful world.

Speaking of inclusion, SB 263 will require all real estate agents to complete implicit bias training as part of the license renewal process to help us recognize and take actions to address our unconscious prejudices. 

AB 44 allows real estate agents to use former legal surnames for their business. This is especially important for agents who get married after building their own brand.

GEEK (KEVIN)

You may have heard about SB 9, which streamlines the approval process for property owners to subdivide and create up to four housing units on a single family lot. What you’re not hearing is that the costs are fairly prohibitive for the average owner.

AB 948 requires every real estate contract to include a notice to buyers that the appraisal of their new home was unbiased and directs buyers to file complaints with the state Dept. of Real Estate (aka, DRE).

And AB 633 will prevent the abuse of partition actions in cases of related parties inheriting a property that one of them wants to sell.

Thanks to California Real Estate magazine for the assist with this breakdown. Read the original article here.

Chic vs. Geek: What to avoid after you sign

So you’ve applied for a home mortgage loan. Want to know what to do – and what not to do – next? We’ve got a few tips to share.

CHIC (PEARL)

Consistency is the name of the game. Be sure to discuss any changes in income, assets, or credit with your lender so you don’t jeopardize your application. Don’t change your bank account, don’t apply for a new credit card or close any credit accounts, and definitely don’t co-sign any loans.

GEEK (KEVIN)

The banks are always watching because money never sleeps. So the best plan is full transparency. Avoid making any large purchases like a car or a major appliance. And if you receive a cash windfall, don’t deposit it into your bank account before contacting your bank or lender.

Did you receive this water notice?

If you live in Mountain View, you’ve probably received a notice like this one. It’s hard to make sacrifices when it comes to basic comforts like water, but we all need to do our part. I just hope we don’t have to give up hot water showers and our jacuzzi!

Please share any similar notices you’ve received in your neighborhood.