What! The seller did not obtain a permit?!!!

Whom you use to buy your home is VERY important.

An acquaintance whose children just closed on their home just told me (unfortunately using another agent) that their “new roof” sprung a leak this last week. In doing research they found out that the seller did not obtain a permit for the new roof and they were given no contractor or warranty information from the seller.

So they called their agent asking for them to step in and help them and they said, “Our contractual partnership is over, I do not need to do any more work for you.” That agent “earned” (and I use that term very loosely) over a $10k commission but now cannot be bothered to help undue the damage that they actually caused by their negligence by not looking out for their buyer.

Sellers that are upgrading and renovating their properties without obtaining the proper permits is increasing and Buyers agents are not doing their fiduciary duty to protect their buyers.

Always demand a permit report!! I provide them free for every one of my buyers! If your agent doesn’t use permit reports have them ask the sellers to provide proof of permits and all warranties BEFORE you close escrow!

And listing agents, you need to start telling your sellers, If you do not obtain permits you will not receive full value for the upgrade.  asking a buyer to accept a big ticket item like a roof without any assurance that it was done properly is not a boon to the buyer but a huge risk now that roofs cost upwards of $15,000!

Craig J Townsend

Realtor

 

CA Legislators and Their Idiotic Love of Rent Control

It is a given that CA legislators are economically illiterate, but it is also a given that they have a severe animus against landlords and their property rights.  After all to a socialist a landlord is public enemy #1. But all of their steps toward destroying landlords property rights have disastrous unintended consequences that actually fuel the rental housing shortage. Let us take the recent move to pass a rent control initiative, a measure that was luckily voted down by the people. Just in the shadow of this disastrous measure and its possible passing the following happened.

  1. Landlords that hadn’t raised the rents in years all raised their rents. Why, they were facing a draconian process of having to ask for a rent increase from an unelected rent control board and then the increase would be tied to the CPI and limited to 2% a year. So if the rent on your property was $1,200 a month, you could only raise it $12, or a whopping $144 a year! Given the real inflation rate adding in all such items as energy and construction materials and the ever rising bevy of taxes, water,  sewer and garbage costs and you have the recipe for disaster. Anyone remember the Slumlord phenomena?
  2.  Many landlord only own one or two rental homes. Facing the possibility of more stringent  over regulation they decided to throw in the towel last year. Many of these investors sold their rental properties to first time home buyers, taking them off the rental market for good.  If the legislature continues on the road to seizing landlords property by patently fascist measures, this trickle will turn into a flood.
  3. Then there were the rent control radicals who wanted a $6,000 move out stipend that would have to be given to all tenants asked to leave by the landlord.  This of course can wipe out several years of any profits for them.

I fully expect that the Economic simpletons will wade confidently forward on Leviathan legs to misappropriate more  landlords property rights, so expect a tidal wave of landlords selling their homes in the near future.  If Realtors think that this will be a heyday for them, it won’t be for the homeowner.  One of my largest investors owns over 150 houses in one area of Sacramento. Imagine if he decided to sell all of his rentals at once? He would single handedly suppress housing prices in that area. Now imagine all of the other large and small investors joining him in getting rid of their rental properties before the illegal taking of it by the legislature goes into effect?

One can imagine what the homeless problem will be when the supply of rental housing drops by another 50% or more in CA. This is what is on the horizon and the idiots driving the short bus  to this devastation is the more left leaning Democrats in the CA legislature.  It is time for any remaining Blue Dog Democrats to stand up and fight for sanity and economic reality in CA.

This is probably why the legislature also put forward a measure recently that would allow tenants to take in homeless people for up to 12 months and landlords wouldn’t have any say about it. It doesn’t matter that this violates the rental/lease agreement, landlords would be forced by CA law to accept this untenable situation. It seems to be that the legislature is actually preparing for a dramatic increase in homelessness doesn’t it?

The only way to stop the rental housing shortage is to fast track building and the only way to do that is to significantly drop the price of  the  permit and connection fees that have doubled or even tripled over the last 10 years. I personally know many owners of vacant lots in Sacramento who would love to build single family and multi-family residences and they all tell me, “Craig, the permit and connection fees to build have become so high that I cannot build on my lot.”  Add on to these burgeoning costs the ever growing pile of requirements that all new builds must have and the cost to build new homes skyrocket. If you want to know why housing prices and thus rents in CA are so high, one needs only to look at the CA  legislature and Governor, better known as the inflationists and chief.

If Gruesome Newsom cant seem to find a mirror to see who is responsible for the high price of gas in CA, do not expect him to ever realize who is ultimately to blame for the high housing prices and the rental shortage and with a shortage of anything one always gets higher prices.

Shame on you AHS!!!

American Home Shield showed today that they do no understand the meaning of either taking responsibility or customer service.

My client had them send an air conditioning guy out to look at her unit and clean and inspect it. The unit was working fine, she just was worried about the summer hot temps coming up and it’s an older unit. The Tech told her it only needed to be cleaned especially the blower motor. After Cleaning the parts and putting them back he broke it. The next day they replaced that part and found out that the controller unit was broken as well, the tech “might have spilled water on it.” Because it is a very old unit they can’t find a replacement part.

Did AHS step up as they were the ones who hired the service provider and sent them out? Did they stand behind them? No, not in the least. They came back wanting my client to pay a little over $2,000 to fix a unit that was running perfectly fine before the ham handed service provider broke it. Here was their response;

“AHS is not responsible or liable for secondary, incidental, and/or consequential loss or damage resulting from the malfunction of any covered item, or a Service Contractor’s neglect or delay in providing, or failure to provide, repair or replacement of such item, including, but not limited to, food spoilage, loss of income, utility bills, additional living expenses, personal and/or property damage.”

And the rub of it is, is that if the unit had malfunctioned and gone caput on its own it would have been covered.

So AHS hides behind their contract and dodges their responsibilities all to save a buck.

Luckily the HVAC service provider stepped up and will replace the entire unit at no cost to my client. So I have to give Kuddos to South Placer Heating and Air. They do know the meaning of both taking responsibility and customer service!

When it comes time to help my clients choose a home warranty in the future, you know which one I will not be advising them to choose.

I suggest that all my fellow Realtors and brokers think twice as well.

Customer Service is King in real Estate, if you cannot or will not provide it, then there are a lot of other providers that will.

Single Story For Sale in Cordova Gardens, Rancho Cordova

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Cordova Gardens Charmer

•  1008 sqft , 1 bath , 3 bdrm single story FOR SALE  USD315,000 . Remodeled!
MLS® 19030633

Cordova Garden’s Charmer. This 3 Bedroom, 1 Bath home with a 2 car garage and RV pad has it all. Nice sized corner lot with large backyard. 1008 sq feet of remodeled luxury, New comp roof & dual pane windows, newly remodeled bathroom, newer kitchen with all new cabinets & granite counter top. Oven, fridge washer & dryer are part of sale. New laminate wood style floors, new interior paint throughout most of the interior. Across the street from Cordova Gardens Elementary, 4 minute walk to Hagan Community Park which has the great 4th of July Festival. Watch the fireworks from the backyard! There is just too much to mention about this home and the great area, you have to come and see it for yourself! (interior photos coming soon)

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