Buyer Desperation a Major Factor in Current Real Estate Market

buying-home-selling-your-houseI recently asked a Bay Area real estate agent about trends she’s observing in the current market. The first thing out of her mouth was the new need for her to understand buyer psychology as they learn the consequences of low housing inventory (fewer homes on the market than interested buyers).

No longer is it a simple matter of buyers figuring out how much money they have saved up and how much house they can thereby afford, doing a bit of shopping, and then closing on a home. Buyers must now often go through stages, an evolution driven by desperation as the weeks or months of shopping go on, and by experiencing flat-out “No” answers in response to their purchase offers.

The prospective homebuyer may start out telling the real estate agent, “I want a two-bedroom in this neighborhood and won’t pay a penny more than $X,” move on to saying, “Hmm, maybe we’d better bid higher given all the competition for this one-bedroom in a marginal neighborhood,” and end up at “Never mind the home inspection! Let’s double the asking price! We can’t wait any longer, we have to have that (tiny) house!”

This isn’t just a Bay Area phenomenon, either. The December projection from the National Association of Realtors says it all “Alas, Inventory Shortages Likely to Stay in 2016.” Relief isn’t reportedly in sight until the end of 2017, when Capital Economics researchers predict an inventory rise of around 50%.

According to economists at Zillow, this is even having an impact on the best time to sell a home. Zillow recently found that, nationally, homes that are put on the market in late spring (May 1 through May 15), sell around 18.5 days faster and for 1% more than the average listing. The explanation?

“The housing market today is heavily influenced by low inventory,” says Zillow chief economist Dr. Svenja Gudell. “Faced with increasingly competitive markets, many buyers are forced to consider several homes and make multiple offers, elongating the home shopping experience.”

That’s good news if you are a home seller just starting to think about putting your home on the market for this spring! Not only has time not yet run out, but you might be just in time to pick up on the desperate buyers who’ve been out there for weeks and who just want a home, at any price.

Kansas Supreme Court: Law Making It a Crime to Refuse DUI Chemical Testing Is Unconstitutional

By John McCurley

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Like all other states, Kansas has an “implied consent” law for drivers suspected of DUI (driving under the influence). These laws generally require that drivers arrested for driving under the influence submit to chemical testing for the purpose of determining whether and how much alcohol or drugs are in their bodies. (These tests typically involve the analysis of blood, breath, or urine.)

In most states, the consequences of refusing a chemical test are administrative—the driver’s license will often be suspended for a period of time and the driver might need to pay a fine or install an ignition interlock device. These administrative penalties for refusing testing are often in addition to any punishment for driving drunk, which is its own crime.

Kansas, however, is one of a handful of states that make it a separate crime–under at least some circumstances—to refuse a chemical test. So, until quite recently, some drivers in Kansas who drove drunk and refused testing could be convicted of both a DUI and test refusal.

Refusal Statute Struck Down

Generally, Kansas law makes refusing a chemical test a crime if the driver has at least one prior DUI conviction or instance of refusing a chemical test. A conviction carries mandatory jail time and can be a felony. (Kan. Stat. Ann. § 8-1025 (2015).)

But on February 26, 2016, in State v. Ryce, the Kansas Supreme Court decided that the law making it a crime to refuse a chemical test violates federal constitutional rights of drivers. The court explained that, under the Fourth Amendment’s prohibition against unreasonable searches and seizures, drivers have a right to refuse chemical testing. The law making refusal a crime violated that right, according to the court.

The decision means that Kansas drivers who refuse to submit to chemical testing can no longer be convicted of refusal as its own offense. (Refusal will, however, still likely lead to administrative consequences such as a suspended license.) It’s unclear how the decision will affect drivers already convicted of refusing a chemical test. (State v. Ryce, No. 111, 698, slip opinion.)

DUI Testing After Ryce

The Ryce decision has important implications for law enforcement. The case naturally led to another decision that was issued by the Kansas Supreme Court on the same day it decided Ryce. In the second case, the court found that an officer violated a DUI suspect’s Fourth Amendment rights by coercing him into submitting to a chemical test.

In the second case, the officer told the suspect that if he refused to take a chemical test, he would face criminal penalties equal to or worse than those resulting from a DUI conviction. The suspect consented to the testing, but later argued that it constituted an illegal search and seizure on the theory that he consented only after being threatened with criminal penalties. The court agreed that the suspect’s consent wasn’t freely given because the officer’s advisement to the suspect—that criminal penalties could be imposed—wasn’t true. (See State v. Nece, No. 111, 401, slip opinion.)

Now, in Kansas, refusing to submit to a chemical test isn’t a crime. Not only that, but officers can’t threaten criminal prosecution to get drivers to agree to testing. It remains to be seen whether other states that have laws criminalizing chemical test refusals will follow the Kansas Supreme Court’s lead.

New Home Sales Down as 2016 Begins; Could Word Be Getting Out About Risks of Poor Construction?

According to data gathered by Trading Economics, January of 2016 was a lousy month for sales of new single-family homes in the United States. Purchases were down 9.2% from December; the lowest figure in three months and well below predictions.

Meanwhile, Nolo just wrapped up an online survey of viewers, asking about their satisfaction with their newly purchased homes. Among those who responded, 74% had bought from a developer, and 25% had hired their own contractor.

But only 22% were satisfied with the quality of the construction. An overwhelming number–91%–have found home defects since buying, and 96% are contemplating legal action.

Uh oh. Now, it should be said that this was a small survey (fewer than 100 respondents), and anyone searching for information on Nolo is likely to have an existing reason for doing so, perhaps dissatisfaction with their home and questions about filing a lawsuit.

But it does fit a long-observed pattern within the real estate industry. “New” does not equal “risk-free” when it comes to a structure as complex as a home. In fact, with shortages of skilled labor, new homes can come with major defects.

To find out how to protect yourself as a buyer, see Newly Built Houses: Pros and Cons of Buying. And if you’ve already bought and are encountering defects, you’ll want to check out Nolo’s series of articles on Suing Your Home Builder: Legal Rights in Selected States.

Is There Time to Become a U.S. Citizen Before the November, 2016 Election?

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While on the road today, I caught a snippet of a radio interview in which U.S. immigrants (presumably green card holders) discussed their eagerness to apply for naturalized U.S. citizenship as soon as possible, in order to be able to vote in the upcoming presidential election.

That made me wonder: Is there time? Anything to do with the U.S. immigration bureaucracy tends to take weeks and months longer than it should. But let’s take the best-case scenario for an applicant who decides today, February 19, 2016, that he or she wants to apply. Let’s also assume that that person meets the basic citizenship criteria.

The first step would be to fill out the paperwork; no small task, because it not only involves filling out a form, but figuring out the dates of all one’s absences from the U.S. over the last several years, making a copy of one’s green card, having two passport-style photos taken, rustling up a $680 fee, and including any other relevant documentation (for example, proof of marriage to a U.S. citizen if applying after three years rather than usual five on that basis, or a medical report if claiming an exemption from the English or civics exam based on a disability).

And then the person would need to make a complete copy of the application and send it via a secure method, to protect against the all-too-real possibility that U.S. Citizenship and Immigration Services (USCIS) will lose it.

Let’s assume that all of the above could be done in one week. The person would then need to mail the applications to a USCIS “lockbox,” which facility would then need to review and transfer the application to a local field office. That’s bound to take a few days right there.

Next, it becomes a matter of how quickly one’s local USCIS field office is moving. Applicants can check this on the “USCIS Processing Time Information” page, by choosing the appropriate office from the”Field Office” dropdown, then scrolling down to where it lists “N-400.”

Most offices are processing applications they received in July 2015, meaning it’s taking them seven months to interview the applicants. Los Angeles advertises only a five months’ wait. But it’s an eight months’ wait in Houston and Baltimore, and I didn’t check every field office, and the waiting periods can change depending on how many people apply at any given time.

Now let’s say the person attends the required in-person naturalization interview at a USCIS office, passes all the exams, and is approved for U.S. citizenship. That’s great, but it’s not the end of the process. First off, USCIS may not yet have received the results of the person’s fingerprint checks from the FBI and other sources, which can add weeks or months to process.

And no one becomes a U.S. citizen without attending the swearing-in ceremony. This, too, might be scheduled weeks or months after the person’s approval; though same-day swearing in is possible in some locations.

Oh, and let’s not forget actually registering to vote!

So, putting it altogether, and assuming that all goes smoothly, I’d guesstimate it would take approximately 8 1/2 months from today to successfully becoming a U.S. citizen. That’s almost exactly the amount of time left between now and the November presidential election.

If you’re hoping to apply, get moving on the process today!

EEOC Proposes to Add Pay Data to EEO-1 Reporting Form

As part of itsgavel over money istock role enforcing antidiscrimination laws, the Equal Employment Opportunity Commission (EEOC) gathers information about workplace demographics in the United States. Employers with 100 or more employees are required to submit an annual report, called the EEO-1 report, providing information about the race, ethnicity, and gender of the company’s employees in certain job categories. At the end of last month, the EEOC announced a proposal to add pay data to the EEO-1 report, in an effort to enforce equal pay laws.

Although wage discrimination based on gender, ethnicity, and race has been outlawed for several decades, the United States still has a significant pay gap. Women continue to make around three-fourths or less of what men make in the same position. The pay gap is even wider for female employees of African American or Latino descent.

Enforcing equal pay has presented somewhat of a challenge because it’s easy for this type of discrimination to go unnoticed. Employees typically aren’t privy to what their coworkers are earning, and up until now, employers haven’t been required to report that data to any state agencies. The EEOC expects that requiring regular reporting of pay data will help regulate employers and enforce antidiscrimination laws. And, it will provide employers with an opportunity to monitor their pay practices and correct any discrepancies.

If the EEOC’s proposed change is approved, employers that are required to submit an EEO-1 report will need to include information on employees’ wages and work hours. The EEOC will be accepting comments on the proposed rule until April 1, 2016. If the rule passes, employers will need to comply with the new reporting requirement beginning in 2017.