About: Ilona Bray

Ilona Bray is a former attorney and the author of several Nolo immigration books. Her working background includes both solo immigration practice and working or volunteering as an immigration attorney with nonprofit organizations in Seattle and California.

Recent Posts by Ilona Bray

Check Out Redfin’s Creepy Virtual Halloween Tour!

pumpkinHere’s as good a way as any to practice using Redfin’s 3-D “Walkthrough” technology (which it plans to start featuring on all its home listings): Tour a home filled with creepy characters and decor, as shown on the Inman site.

As someone who doesn’t virtually tour homes every day, I’m as good a guinea pig as any for the walkthrough. I found it mostly cool, if sometimes confusing.

I got it that clicking on a circle takes you right to the spot, and the arrows help navigate in all directions.

But there were a couple of doors that remained closed no matter how hard I bumped the arrows into them. Is that just because they didn’t have enough ghouls to go around, or would that be normal on a regular home tour? I hope the former.

The dollhouse and floorplan features are worth a look, and help reduce dizziness and disorientation if one goes a little too wild with all the 360-degree navigation.

Oh, and don’t miss what’s written on the bulletin board next to the refrigerator.

Competing With “Investors” Has a Whole New Meaning Now

IMG_4403For people wanting to buy homes in which to live, “investors” have long been the bogeymen — the professionals with lots of cash in their pockets who sweep in, buy up properties, and either turn them into rentals or flip them for a profit.

They’re still in the picture, making buying a home difficult for ordinary buyers, especially in hot markets.

But percentage-wise, it’s looking like fewer and fewer of these investors may be professionals. This is alluded to by Bernice Ross in her article for Inman called “Ultra high net worth individuals want to work with real estate agents of their own caliber.” She describes a recent event called Luxury Connect, in which agents representing UHNWIs came together to discuss their specialized corner of the market. (Okay, I confess, I had no idea what UHNWIs means — it’s “ultra high net worth individuals.”)

At the event, Zillow’s Greg Schwartz said that, based upon a Zillow survey, 72% of high net worth individuals said they prefer real estate to the stock market as a “safe haven” for their investment. This is a reported 30% increase from five years ago. They may not be buying up scads of homes, but rather a second home for vacation or retirement — but they’re still adding to your competition as a home buyer.

Oh, and if you were picturing U.S.-based investors, that image needs revising, too. Many foreign-born investors are parking their cash in U.S. real estate, particularly in New York, Los Angeles, Miami, and San Francisco.

What else can I say, except that this seems like a good time to refer back to our earlier blog, “Don’t Let an Investor Buy the Home You Wanted!“?

Court Decision Reminds Home Buyers to Read Seller Disclosures Carefully

wet floorIn most U.S. states, including California, home sellers must provide buyers with a written set of disclosures indicating what the seller knows about the property’s features, defects, history, and environment. A seller who hides a material defect can be sued later, when the buyer finds out about the problem (probably the hard way, for example when a piece of the ceiling falls on their head due to a leaky pipe).

Seller disclosures provide valuable information to buyers, and should be read carefully and followed up on with questions. Yet many buyers are so eager to close the sale and start planning for furniture and curtains rather than ongoing repair needs that they skim it, or leave it to their agent to look at. That may be what Joanna Peake did in buying a California home from the Underwoods in 2008.

The Underwoods’ agent, John Ferrell, provided Ms. Peake with, according to the court, “photographs and reports disclosing problems with the residence’s subflooring,” She went ahead and bought the house regardless.

Later, Peake says that she “became aware of the extent of the [water-intrusion] damage when her son’s foot . . . went through a bathroom floor.” Peake proceeded to sue the seller as well as the seller’s agent. In fact, she pressed forward with the lawsuit even after the agent’s attorney repeatedly sent her said reports and other evidence that Ferrell hadn’t breached any duties under California law, and asked her to withdraw the case.

The California appeals court not only dismissed Peake’s claim against the real estate agent, Ferrell, but ordered Peake to pay sanctions for having brought a frivolous lawsuit. Oops. (See Peake v. Underwood,Fourth Appellate District, June 25, 2014).

This case is, of course, drawing lots of attention from the real estate community, as agents heave a sigh of relief that they don’t have to become automatic deep pockets for disgruntled buyers.

It should also serve as a reminder to buyers that the disclosure information that they’re provided pre-sale isn’t just another form to review: It has important legal consequences. Once a home buyer is on notice regarding problems with the property, and doesn’t follow up with further questions or negotiations, it becomes a lot harder to sue over them later.

Few Young People at Your Open House? There’s a Reason

Debt_collectors (2)Real estate agents have told me personally that that they’re seeing fewer young people than usual among the herds of interested home buyers, but now it’s official: A study by John Burns Real Estate Consulting found that the burden of student debt will reduce by 8% the number of homes expected to transact in 2014. (See the L.A. Times report, “Student loan debt curbs housing market by $83 billion, study says.”)

The basic problem is that, to put it semi-mathematically, a whole lot of young people owe at least $250 each month in student loans. With every $250 of debt reducing their home borrowing and purchasing power by $44,000, you can see why this swiftly puts many of them out of the running.

If you are in the process of selling your home, this doesn’t mean that no one will be out there to buy it. The real estate market is turning into a “seller’s market” (lots of interested buyers) in many parts of the United States, and some prospective buyers may have already been waiting for years to finally pay off their loans and buy their first home.

But this may necessitate a revision in selling strategy for some sellers, especially those selling “starter” homes. When preparing advertising material and deciding how to “stage” your home, the image of the young couple about to have children may have to be scrapped. Perhaps a retired couple looking to use a spare bedroom as an office is actually your most likely buyer.

Friday’s Real Estate Fantasy: Buy a Scottish Castle!

With Scotland all over the news lately, my thoughts naturally turn to what fun it would be to own a Scottish castle. (As yours do, too, I’m sure.) A really auld one, preferably.

castleSure, we’ve got properties that pass  for castles here in the U.S. — like this $45 million one just advertised by Coldwell Banker in Woodstock Valley, Connecticut, called Chrismark Castle. But it was built in 2003. It just doesn’t have that shivery, “People walked here hundreds of years ago, and there might be ghosts” feeling to it. (Unless they’re the ghosts of whoever had to put the tiles on those turrets.)

A little hint if you are tempted to buy this Connecticut place: I’ll bet it doesn’t come with the furniture, so be prepared to bargain separately for that Egyptian sarcophagus, or anything else you might have your heart set on. The only things that sellers normally leave behind in a home are “fixtures,” described in Nolo’s FAQ, “If I buy a house, will the seller leave behind things like the curtains and the refrigerator?

Meanwhile, miraculously, people actually sell real castles in Scotland. Or at least very, very, very large houses. Savills always has some nice offerings, as does Knight Frank.

There’s just one problem. Well, okay, there’s the money issue, but there’s one more problem: Last I heard, us Yankees can’t get any residency rights in the U.K. by buying property. (And as of the recent vote, Scotland is indeed still part of the U.K.) See for yourself, on the “Visas and Immigration” page of the U.K. government website.

But wait: It says you can get a visa if you’re married to a U.K. citizen. A Scottish laird, perhaps? With his own castle?

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