January 2016 Real Estate Update

Your REALTOR
Copyright 2016 Realty Times

All Rights Reserved.
January 2016
May all your Summer dreams come true"
Steven Aslanian
818-879-0800
www.aslanian-team.com
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January Real Estate Update
Important Clauses In Your Real Estate Contract
Important Clauses In Your Real Estate Contract
How To Keep Your Home Clean And Refreshed 24-7
How To Keep Your Home Clean And Refreshed 24-7
What Kinds of Mortgages are Available?
Dealing With Powers Of Attorney
6 Tips For Selling Your Home In Winter 2016
6 Tips For Selling Your Home In Winter 2016
Home Sellers: How Your REALTOR Does It Better
Home Sellers: How Your REALTOR Does It Better
Understanding Smart Home Technology So You Can
Understanding Smart Home Technology So You Can
Explain It to Buyers
Explain It to Buyers
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Steven Aslanian
RE/MAX Olson & Associates
818-879-0800
info@aslanian-team.com
http://www.aslanian-team.com
818-879-0800
30699 Russell Ranch Rd.
Westlake Village, CA 91362

January 2016
Your REALTOR
818-879-0800
Steven Aslanian
Rates: Little Changed
Mortgage Rates
Source: Realty Times
n Freddie Mac's results of its
Primary Mortgage Market Survey the

30-year fixed-rate mortgage averaged
3.96% for the week ending December
24, 2015.
A year ago at this time, the 30-year
FRM averaged 3.83 percent.
Treasury yields dropped slightly as the
holidays approach. Mortgage rates
remain largely unchanged, with the
30-year mortgage rate ticking down a
basis point to 3.96 percent. While we
expect the 30-year mortgage rate to
hile change
U.S. averages as of December 24, 2015:
30 yr. fixed: 3.96%

15 yr. fixed: 3.22%
1 yr. adj:
2.68%
be above 4 percent in early 2016, we
anticipate rates will gradually increase,
averaging 4.4 percent for the year.
3 Trends Sellers Should

Know in 2016
How to Improve The

Odds of an Offer
here are three
dominant trends that sellers should be

aware of going into the new year:
1. A seller's market dominates.
Home prices have been climbing. The
greater a region's economic future
appears to be, the easier you can expect
to sell a home.
2. Mortgages will get pricier. Low
mortgage rates have been the standard
in the last few years, but that will soon
change. The Federal Reserve is
gradually beginning to raise rates, which
will move mortgage rates higher and
dampen affordability.
3. Tax benefits still abound. The
largest tax break remains the exclusion
on capital gains for the sale of personal
residences. Single taxpayers are able to
exclude a maximum of $250,000 in gains
from the sale of a home. Joint filers get
double that: $500,000.
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Housing Outlook for

2016: Expect Change
ay attention to
the following important

details for the best offer on your home:
Price it right. Set a price at the lower
end of your property's realistic price
range.
Prepare for visitors. Get your house
market ready at least two weeks before
you begin showing it.
Be flexible about showings. It's often
disruptive to have a house ready to show
at the spur of the moment. But the more
amenable you can be about letting
people see your home, the better.
Anticipate the offers. Decide in
advance what price and terms you'll find
acceptable.
Don't refuse to drop the price. If your
home has been on the market for more
than 30 days without an offer, you should
at least consider lowering your asking
price.
is coming to the mortgage market,

Freddie Mac says in its 2016 housing
forecast that it's too soon to tell whether
marketplace lending is the next Uber or
just another flash in the pan.
The new year will undoubtedly bring
changes. New startups will look for ways
to improve upon current marketplace
lending business models.
Large bank lenders may incorporate
the most successful of the marketplace
lending innovations. It's difficult to say
where all this will lead, but one prediction
is indisputable.
Expect change.
Here are five more predictions for
2016 from the mortgage giant:
1. The 30-year fixed-rate mortgage will
likely average below 4.5 percent for 2016
on an annualized basis.
2. Mortgage rates will gradually move
higher posing an affordability challenge.
But expect a strengthening labor market
and pent-up demand to carry momentum
into 2016.
3. Home prices will likely moderate
slightly to 4.4 percent in 2016, driven in
part by the reduction in home buyer
affordability and reduced demand as a
result of Fed tightening.
4. But industry activity will grow in
2016 despite monetary tightening.
Expect total housing starts to increase 16
percent year-over-year and total home
sales to increase 3 percent.
5. While home purchases will increase
next year, higher interest rates will
reduce the refinance volume pushing
overall mortgage originations lower in
2016 than in 2015.
Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
818-879-0800
Important Clauses In Your

Real Estate Contract
By Benny L. Kass
You have just found your dream house, and would like to
buy it. What to do now?
When dealing with real estate matters, the law is clear:
everything has to be in writing. Thus, you will need a sales
contract, which will spell out all of the terms, conditions and
special requirements you may (or will) need in order to conclude
the transaction and go to closing (settlement) on the house.
If there is no real estate agent involved, your attorney
should be able to assist you in preparing the contract offer. If
there is a real estate agent, you can get a form sales contract
from the agent. In fact, the agent should be able to assist you in
preparing the document for presentation to the seller, although
your attorney should review it before you sign. Typically, the
buyer makes a written offer to the seller. The seller has three
alternatives:
1. The contract can be accepted; 2. The contract can be
rejected in its entirety, or 3. The contract offer will be countered,
with different terms.
It is rare that the seller will opt for alternatives one or two; in
most cases, the potential buyer will receive a counter-offer.
Then, the buyer has the same three alternatives.
There are certain things which must be included in any
sales contract.
The property must be clearly identified, preferably by street
address.
The contract must be contingent upon your obtaining
financing. You should allow yourself some time -- usually 30-45
days -- in which to make application from a mortgage lender
and get a written commitment that you have been approved for
the loan. Under the new Consumer Financial Protection Bureau
(CFPB), it will take more time, so you may want to give yourself
up to 60 days in which to finalize the deal.
Unless you are an experienced contractor, it is advisable that
you make the contract contingent on your obtaining a
satisfactory home inspection. You should give yourself 5-7 days
after the contract is signed to have the property inspected. If
you are not satisfied for any reason after you receive a written
report from the inspector, you should have the right to terminate
the contract, and get back your earnest money deposit.
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How much earnest money should you put up when you sign
the sales contract? There is no magic formula and no law
dictating a certain percentage of the purchase price. When you
sign a contract, in order to make it a valid, legal document, the
buyer should put up some money as a good faith earnest
money deposit. These funds will be held by the real estate
broker or the settlement attorney until settlement takes or until
either the buyer is entitled to a return of the deposit (because
the contingencies cannot be met) or the buyer is in breach of
the contract, in which case the moneys would go to the seller.
Real estate agents and brokers usually ask that the buyer
put up 10 percent of the purchase price as this earnest money
deposit. However, buyers can put up more or less, so long as
the seller agrees with the amount. Indeed, in many real estate
contracts, the earnest money deposit consists only of a
promissory note signed by the buyer, to be redeemed at the
settlement itself.
Buyers should understand that although everything in real
estate is negotiable, the earnest money should be large enough
to convince the seller you are seriously interested in going
forward with the purchase. I usually recommend this deposit be
approximately five percent of the purchase price.
Finally, the contract should be contingent upon the buyer
obtaining -- no later than the date of settlement -- a "termite"
letter. This is a report from a licensed pest inspection company
indicating that the house is free and clear of termites and other
wood-boring infestation. Some contracts require the seller to
obtain and pay for this report; other contracts put the burden on
the purchaser. Either way, this is a critical report which all
buyers should receive -- and carefully review -- before
settlement is completed. Obviously, in a high-rise condo, such a
termite letter would not be required.
Many of these contingencies are time-sensitive. You -- as
buyer -- have so many days in which to get financing and so
many days in which to complete the home inspection. Mark
your calendar with these due dates, and make sure you act on
these contingencies before the time has expired. Otherwise, it
will be too late and you will be legally bound to comply with the
terms of the contract, and proceed to settlement.
Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
818-879-0800
How To Keep Your Home

Clean And Refreshed 24-7
By Andrea Davis
Keeping your home spic and span can sometimes feel like
too tough a challenge. No matter how often you clean, the
house seems to get dirty again before the floors have even
dried. For those who don't have hours to spend cleaning, worry
not! There are simple, effective ways to keep your home clean
on a daily basis. Here are some tips to consider:
prevent dirt and debris from entering your home -- just bugs,
really. Unless you have small children, it's better to remove
them; removing the screens will keep your windows cleaner.
Keep storage handy. Storage boxes are always good to

have on hand. Keep some broken down in your closet or under
the bed for easy access. You can also build shelves for a
Invest in doormats. Placing doormats at your back and front relatively inexpensive cost.
doors helps cut the amount of dirt and debris trailing into your
Organize the coffee table. Coffee tables get cluttered
home. Placing additional mats outside can help cut even more.
quickly. Make sure you keep only the bare essentials on the
Groom pets daily. Pet hair -- especially cat and short-haired table -- and clean the table's surface often.
dog hair -- can invade your home in an instant. Brushing your
Make sure your floor is showing. If you have kids or pets,
pets every day -- and giving your dogs a bath every now and
there's a good chance that your floor is littered with toys. You
again -- can do a lot to help.
can teach kids how to pick up after themselves, depending on
Keep ducts and fans clean. Air vents and ceiling fans build their age. But with pets, you may need to keep another storage
box handy.
up dust over time. When they're turned on, that dust is then
transferred to your floors and furniture. Cleaning them regularly
Dust! You shouldn't have to spend hours dusting your home
will reduce the amount of dirt flowing throughout your home. If
on the weekends. Take a moment or two to wipe off surfaces
you need professional help, you can generally get your ducts
once a week. This keeps the dirt down and makes your house
and vents cleaned for about $330 (the national cost average).
look a bit shinier.
Replace air filters. If the air feels stale or musty, there's a
Create a place for every item. You should have a
chance you need to replace your air filter. Do so frequently to
designated place for every item you use. Racks, shelving -avoid too much debris entering into the air. You can also hire a
whatever you need to keep everything organized. That way,
pro to do this for you.
items don't end up piled on your dining room table or in the
No more window screens. Window screens don't really
living room.
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Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
818-879-0800

By Benny L. Kass
Once you have signed a contract for the purchase of your

new home (or condominium or cooperative apartment), and
assuming that you do not have all of the cash in your bank
account, you will need to obtain a mortgage loan.
There are many different loans on the market - and many
different loan programs from which to choose. You should
contact at least three different lenders, and ask them to give you
a list of the loans which they can offer you. Take careful notes,
and remember one important thing: do not give any lender any
money until you are absolutely certain that this is the lender and this is the loan - you want to obtain.
This is not a complex issue, and all lenders are now

required to provide you with a written explanation of the way
their particular ARM works. Read it carefully and seek
assistance from your financial and legal advisors if you have
any questions
2. VA Loans: This type of loan is generally available from
mortgage brokers, It is called a VA loan, since only military
veterans can obtain such loans. They are guaranteed by the
Veterans Administration. There are certain conditions which you
must meet if you want a VA loan, and you should make sure
that your potential lender provides you with all the details, up
front.
Under the new mortgage lender rules issued by the

Consumer Financial Protection Bureau CFPB), it is actually very
3. FHA loans: This loan is insured by the Federal Housing
easy to shop and compare. Oversimplied, the three basic loan
Administration. FHA will guarantee the lender against a default
programs are as follows:
by the borrower, but the borrower will have to pay an insurance
premium for this coverage. Once again, there are conditions
1. Conventional: this type of loan in generally available
which must be met before such loans can be obtained, and you
from a bank, a mortgage broker, or a credit union. Within the
should discuss all these terms with the potential lender.
category of conventional loans, there are various options
available, such as a fixed 30 year loan, or an adjustable rate
It is not possible in a short article to fully discuss all the
loan (called an ARM).
various mortgage loans on the market. Furthermore, creative
lenders are always coming up with new programs in an effort to
ARMs adjust on a periodic basis, although in most cases
be competitive. However, not all these loans are in your best
they will run for a period of thirty (30) years. Generally speaking, interest.
the shorter the term of the adjustment (such as a one year
ARM) the lower the initial interest rate will be. However, when
You should shop around, and don't accept the first loan that
the adjustment period comes around, the interest rate for the
is offered. While the real estate agent and often the seller may
next adjustment will either go up or down, depending on the
give you loan information - and the name of potential lenders economy at the time of the adjustment. When interest rates are only you can make the final decision as to what is best for you.
falling, an ARM seems like a good deal. However, when interest After all, remember that the life of the loan may be as long as
rates are rising (as it appears they will be increasing as early as 30 years - and that's a long time to be stuck with an
the end of this year), the consumer who obtains a one-year
uncomfortable loan. For more information, go to
ARM is almost guaranteed to see the interest rate hike as high
consumerfinance.gov, and search "Know before you Owe".
as 2 percentage points at the end of the first year.
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Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
818-879-0800

By Benny L. Kass
You and your spouse own your home and you would like to
sell it. However, your spouse is currently unable to sign the
sales contract. This is because he is either out of the country in
some exotic far-away-place where fax and overnight delivery is
unavailable, or because he is physically and mentally unable to
make decisions or sign legal documents.
What to do?
There is a document called a "power of attorney", whereby
your spouse signs a legal document authorizing you to act on
his/her behalf. The giver of the power of attorney is called the
Principal. The receiver is generally called the "attorney in fact".
The latter is given the right to act on behalf of the principal, for
the purposes and functions spelled out in the legal document.
There are two types of Powers of Attorney:
1. General -- here, the principal authorizes the attorney in
fact to take any and all actions as if the principal was taking
them himself. This is also known as a Durable Power of
Attorney. Keep in mind that your own State law may have
specific requirements in order to sell real property by way of a
Power of Attorney. Some states will not permit real estate to be
conveyed by a General power of attorney.
2. Specific -- here, the principal gives specific information
and instructions to the attorney in fact. For example, sell my
house located at 123 ABC Street; or write a $1,000 check to my
insurance company from my bank account. The specific
instructions are contained in the legal document, and the
attorney in fact has no authority to exceed those instructions.
If you plan to sell your house, and find yourself in the
situation where one party in title will not be available to sign
contracts, deeds or other legal documents pertaining to the
sale, it is best to have your attorney draw up a Power of
Attorney that meets your needs, as well as the legal
requirements in the State where your property is located.
The principal may want to put a time limitation on the Power
-- for example one or two months. However, with a durable
power of attorney, the principal normally does not place any
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such limitations. The purpose of a durable Power is to assure

that in the event the Principal becomes incapacitated, his
attorney in fact will be able to step in without having to go to
Court.
Let's go back to our example. If your spouse knows in
advance that he/she will be out of the country when you want to
sell your house, have the Power of Attorney executed before
the trip starts -- and give a long lead time before the Power
expires.
However, if you do not have a Power of Attorney and your
spouse suddenly has a stroke -- or is otherwise unable to
comprehend and sign legal documents, then you will have to go
to your local Court and seek permission to become the
Conservator of the Estate of your spouse. This is a relatively
easy (but potentially time consuming and expensive) process.
The Courts, however, want to make absolutely sure that you
are sincere in your efforts to represent your spouse and that
your spouse is, in fact, not able to sign any legal documents.
There is a lot of fraud involved, such as situations where
children try to use the conservatorship route to take away
property from their parents; accordingly, the Court will also look
carefully at all of the facts, and if possible, will even interview
the person to whom the conservator will be appointed. I once
attended an interview where the Judge went to the hospital to
make sure that no one was taking advantage of the sick person.
Preventive law is the key; consider obtaining a durable
power of attorney now, while you both are in good health. Each
spouse should sign a separate document, making the other
spouse the attorney in fact. However, an alternative attorney in
fact should also be designated, just in case both of you become
incapacitated at the same time.
Your local attorney should be consulted to make sure you
are using the proper forms and that you fully understand the
consequences of your actions. A Power of Attorney gives
someone else the right to sell your house, and you want to
make sure that you are not giving away the store.
Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
818-879-0800
6 Tips For Selling Your

Home In Winter 2016
By Andrea Davis
Winter can be a harsh, unappealing time of year to sell your
home. With 2016 about to rev up, it's especially important to
make your home stand out if you want to sell in the New Year.
Here are some essential tips for making your house #1 on the
market as the year begins:
#1 Warmth is top priority: Your home should always be
warm when a realtor conducts a walkthrough with buyers. Set a
timer on your thermostat so it's warm when they arrive. Also
make sure to check there are no leaks or problems with your
ducts and vents, as this could make rooms cold during a
walkthrough.
#2 Keep the house bright: It's also important to ensure
that your home is adequately lit in each room. You want buyers
to feel welcome and impressed with the kitchen, bathroom and
bedrooms of your home. If a room has dim lighting or a
burned-out bulb, it could take away from the overall appeal of
the room. You should also consider spending a little extra
money to upgrade your lighting fixtures -- installing recessed
lighting in certain rooms will give your home a little extra "pop."
Standing lamps are also a fantastic, affordable alternative to
lighting additions
#3 Try to make your landscape appealing: Although your
yard will be mostly winterized during this time of year, there are
several ways to spruce up your cold weather landscaping. Start
by clearing your yard of any broken branches or large patches
of fallen leaves. It's also important to ensure that any ice or
snow on or near your home's walkway is removed. If needed,
you can hire a weekly snow removal service to keep your home
safe for buyer walkthroughs.
#4 Make the interior cozy: In addition to keeping your
house well-lit and warm, there are other ways to make your
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home cozy and welcoming to buyers. This includes: classical

music (at a low volume), homemade treats (candy, cookies),
holiday decorations (tinsel on the mantle, for example). You
want buyers to feel as though they already live in your home
when they walk through the door. When you offer them a cozy
setting, they will want to spend more time in your home and
admire its features.
#5 Keep the fireplace lit: While you should have the heat
on during a walkthrough, another warm and cozy feature is the
fireplace. If you've got a wood-burning model, this means you'll
need to have coal or wood handy. You don't want to have
multiple showings a day and a fireplace that roars for only half
the visitors. This is especially important if the fireplace is close
to the entrance (all of that cold air gets in!).
#6 Prepare for any storms: Make sure there's an
emergency kit on hand in your home in case your home suffers
an outage during a winter storm. This should include items like:
Extra candles
Matches
Blankets
Car charger
Canned food
Flashlight
Water
While your REALTOR will be prepared for inclement
weather, it's important that you be prepared to keep everyone
safe should the worst happen during a showing. And don't
forget to keep a secondary travel emergency kit to take when
you're leaving for showings as well.
Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
818-879-0800
Home Sellers: How Your

REALTOR Does It Better
By Blanche Evans
As you think about selling your home, it may have crossed

your mind that you should just sell it yourself. In 2015,
approximately 89% of home sellers hired a REALTOR. What
do they know that you don't?
To sell your home yourself, you'll be competing against
experts who have more tools and connections than you do. In
addition to multiple listing services, broker Websites, real estate
Websites, personal Websites, and professional-grade videos
and photos, real estate professionals network with each other to
sell many homes before they are introduced to the marketplace.
Serious buyers are vetted through their real estate agents

and bankers so only buyers who are qualified to buy your home
can be allowed to see it. Do you know how to put a buyer
through instant credit checks so you'll know whether or not
they're suitable before you let them in your home?
Real estate transactions are rife with opportunities to make
legal mistakes. Do you know what you have to disclose to the
buyer to be compliant with state laws? If you did add-ons
yourself and didn't get a building permit, you might be in
violation of city codes that could come back to bite the buyer
and you.
You'll have to perform all the jobs a professional would do

for you, along with adopting a professionalism you haven't been
trained for, all while holding down your own job. When will you
have time to study the market, create a marketing plan, buy
advertising, show your home, and negotiate with buyers?
Closing in a garage doesn't mean you can add square

footage to your home without subtracting market value for no
longer having a garage. Your local taxing authority should
reassess your home so that the size and amenities match the
marketing materials and disclosures you've provided about your
It's no problem for a Realtor when a buyer wants to see your home.
home at any time, but will your boss let you take off in the
Once you have a contract, you have to get to closing and
middle of the day to show your home? Will she allow you to use
many contracts don't make it that far. The buyer can decline to
the company's graphics and editorial team to whip out a top
buy for a number of reasons, including FHA or VA requirements
quality listing presentation for you? Will you have the long-term
that your home might not meet. An agent can help negotiate
price trends to defend your price to buyers?
problems and make sure every entity in the pipeline is doing
You won't know whom you're allowing to see your home.
their jobs in a timely fashion so there are no bad surprises.
Even if you could arrange a time to show your home to buyers,
Those are only a few of the many reasons sellers hire real
how do you know they aren't coming into your home to steal
estate professionals.
your prescriptions or worse?
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Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
818-879-0800
Understanding Smart Home Technology

So You Can Explain It to Buyers
By Realty Times Staff
The Internet of Things is quickly becoming a reality, and
there's no place where this is more obvious than in our homes.
According to predictions from market researcher
MarketsandMarkets, the global smart home market will grow to
about $58.7 billion by 2020, fueling a 17 percent compound
annual growth rate and creating a significant consumer market
for smart homes. Buyers know the benefits that come with these
systems, and they want them in their homes do you know
how to sell it to them?
Here are a few of the more common smart home features
real estate agents should be familiar with:
Smart Thermostats
Smart thermostats are one of the quickest and cheapest
ways to upgrade a home. A smart thermostat like Nest learns
from the homeowner's habits and preferences and adjusts its
settings accordingly. It can also pull the weather forecast from
the Internet to set the optimal temperature and create monthly
reports, all of which help the home be energy-efficient and save
the homeowner money.
Homeowners who use a smart thermometer can save
between 10 and 12 percent on heating and 15 percent on
cooling bills, according to the company website. Show potential
buyers an example of the monthly report that Nest generates to
demonstrate how much money they can save with this smart
device. If you're showing a house that already has a smart
thermostat installed, show the potential buyer how he or she will
reap the savings benefit without having to invest in the upfront
cost of the device.
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Smart Lighting
Being able to control your lights with your mobile device is a
wonderful smart home feature. Philips Hue is probably the most
popular example of this type of smart lighting. Homeowners can
use a smartphone app to turn the lights on and off as well as
change the colors and brightness of the lights. If you have a
potential buyer with young children, you could light up one of
the bedrooms with a bright pink light to make it feel fun and
youthful. If you're trying to show off a home theater experience
in the living room, put LED light strips behind the TV and sync
them to music or a video for an immersive experience. This is
especially great for highlighting a movie or entertainment room
or showing a client that the space is great for entertaining.
If your buyer isn't interested in the aesthetics, explain the
more practical features of smart lighting. For example, they can
set schedules or set up sensors, so the lights automatically turn
on when they get home.
Smart Appliances
While getting a new appliance is a good way to increase the
value of a home, going one step further with smart appliances
makes it a selling point. Whirlpool has developed washers,
dryers and kitchen appliances that monitor energy costs and
delay or start their cycles when it is most energy-efficient time.
Users control these appliances with an app, which enables
alerts and remote commands from anywhere there is a data
connection. You should point out any smart appliances to
potential buyers because they will save them money in energy
costs and add value to the home.
Steven Aslanian
818-879-0800
818-879-0800
Your REALTOR

January 2016
Steven Aslanian
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818-879-0800
Steven Aslanian
818-879-0800
818-879-0800

Rates: Little Changed
Mortgage Rates
Source: Realty Times
n Freddie Mac's results of its
Primary Mortgage Market Survey the

30-year fixed-rate mortgage averaged
3.96% for the week ending December
24, 2015.
A year ago at this time, the 30-year
FRM averaged 3.83 percent.
Treasury yields dropped slightly as the
holidays approach. Mortgage rates
remain largely unchanged, with the
30-year mortgage rate ticking down a
basis point to 3.96 percent. While we
expect the 30-year mortgage rate to
hile change
U.S. averages as of December 24, 2015:
30 yr. fixed: 3.96%

15 yr. fixed: 3.22%
1 yr. adj:
2.68%
be above 4 percent in early 2016, we
anticipate rates will gradually increase,
averaging 4.4 percent for the year.
3 Trends Sellers Should

Know in 2016
How to Improve The

Odds of an Offer
here are three
dominant trends that sellers should be

aware of going into the new year:
1. A seller's market dominates.
Home prices have been climbing. The
greater a region's economic future
appears to be, the easier you can expect
to sell a home.
2. Mortgages will get pricier. Low
mortgage rates have been the standard
in the last few years, but that will soon
change. The Federal Reserve is
gradually beginning to raise rates, which
will move mortgage rates higher and
dampen affordability.
3. Tax benefits still abound. The
largest tax break remains the exclusion
on capital gains for the sale of personal
residences. Single taxpayers are able to
exclude a maximum of $250,000 in gains
from the sale of a home. Joint filers get
double that: $500,000.
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Housing Outlook for

2016: Expect Change
ay attention to
the following important

details for the best offer on your home:
Price it right. Set a price at the lower
end of your property's realistic price
range.
Prepare for visitors. Get your house
market ready at least two weeks before
you begin showing it.
Be flexible about showings. It's often
disruptive to have a house ready to show
at the spur of the moment. But the more
amenable you can be about letting
people see your home, the better.
Anticipate the offers. Decide in
advance what price and terms you'll find
acceptable.
Don't refuse to drop the price. If your
home has been on the market for more
than 30 days without an offer, you should
at least consider lowering your asking
price.
is coming to the mortgage market,

Freddie Mac says in its 2016 housing
forecast that it's too soon to tell whether
marketplace lending is the next Uber or
just another flash in the pan.
The new year will undoubtedly bring
changes. New startups will look for ways
to improve upon current marketplace
lending business models.
Large bank lenders may incorporate
the most successful of the marketplace
lending innovations. It's difficult to say
where all this will lead, but one prediction
is indisputable.
Expect change.
Here are five more predictions for
2016 from the mortgage giant:
1. The 30-year fixed-rate mortgage will
likely average below 4.5 percent for 2016
on an annualized basis.
2. Mortgage rates will gradually move
higher posing an affordability challenge.
But expect a strengthening labor market
and pent-up demand to carry momentum
into 2016.
3. Home prices will likely moderate
slightly to 4.4 percent in 2016, driven in
part by the reduction in home buyer
affordability and reduced demand as a
result of Fed tightening.
4. But industry activity will grow in
2016 despite monetary tightening.
Expect total housing starts to increase 16
percent year-over-year and total home
sales to increase 3 percent.
5. While home purchases will increase
next year, higher interest rates will
reduce the refinance volume pushing
overall mortgage originations lower in
2016 than in 2015.
Steven Aslanian
818-879-0800
818-879-0800
January 2016 Real Estate Update

Copyright 2016 Realty Times. All Rights Reserved.
Important Clauses In Your

Real Estate Contract
By Benny L. Kass
You have just found your dream house, and would like to
buy it. What to do now?
When dealing with real estate matters, the law is clear:
everything has to be in writing. Thus, you will need a sales
contract, which will spell out all of the terms, conditions and
special requirements you may (or will) need in order to conclude
the transaction and go to closing (settlement) on the house.
If there is no real estate agent involved, your attorney
should be able to assist you in preparing the contract offer. If
there is a real estate agent, you can get a form sales contract
from the agent. In fact, the agent should be able to assist you in
preparing the document for presentation to the seller, although
your attorney should review it before you sign. Typically, the
buyer makes a written offer to the seller. The seller has three
alternatives:
1. The contract can be accepted; 2. The contract can be
rejected in its entirety, or 3. The contract offer will be countered,
with different terms.
It is rare that the seller will opt for alternatives one or two; in
most cases, the potential buyer will receive a counter-offer.
Then, the buyer has the same three alternatives.
There are certain things which must be included in any
sales contract.
The property must be clearly identified, preferably by street
address.
The contract must be contingent upon your obtaining
financing. You should allow yourself some time -- usually 30-45
days -- in which to make application from a mortgage lender
and get a written commitment that you have been approved for
the loan. Under the new Consumer Financial Protection Bureau
(CFPB), it will take more time, so you may want to give yourself
up to 60 days in which to finalize the deal.
Unless you are an experienced contractor, it is advisable that
you make the contract contingent on your obtaining a
satisfactory home inspection. You should give yourself 5-7 days
after the contract is signed to have the property inspected. If
you are not satisfied for any reason after you receive a written
report from the inspector, you should have the right to terminate
the contract, and get back your earnest money deposit.
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How much earnest money should you put up when you sign
the sales contract? There is no magic formula and no law
dictating a certain percentage of the purchase price. When you
sign a contract, in order to make it a valid, legal document, the
buyer should put up some money as a good faith earnest
money deposit. These funds will be held by the real estate
broker or the settlement attorney until settlement takes or until
either the buyer is entitled to a return of the deposit (because
the contingencies cannot be met) or the buyer is in breach of
the contract, in which case the moneys would go to the seller.
Real estate agents and brokers usually ask that the buyer
put up 10 percent of the purchase price as this earnest money
deposit. However, buyers can put up more or less, so long as
the seller agrees with the amount. Indeed, in many real estate
contracts, the earnest money deposit consists only of a
promissory note signed by the buyer, to be redeemed at the
settlement itself.
Buyers should understand that although everything in real
estate is negotiable, the earnest money should be large enough
to convince the seller you are seriously interested in going
forward with the purchase. I usually recommend this deposit be
approximately five percent of the purchase price.
Finally, the contract should be contingent upon the buyer
obtaining -- no later than the date of settlement -- a "termite"
letter. This is a report from a licensed pest inspection company
indicating that the house is free and clear of termites and other
wood-boring infestation. Some contracts require the seller to
obtain and pay for this report; other contracts put the burden on
the purchaser. Either way, this is a critical report which all
buyers should receive -- and carefully review -- before
settlement is completed. Obviously, in a high-rise condo, such a
termite letter would not be required.
Many of these contingencies are time-sensitive. You -- as
buyer -- have so many days in which to get financing and so
many days in which to complete the home inspection. Mark
your calendar with these due dates, and make sure you act on
these contingencies before the time has expired. Otherwise, it
will be too late and you will be legally bound to comply with the
terms of the contract, and proceed to settlement.
Steven Aslanian
818-879-0800
818-879-0800

How To Keep Your Home

Clean And Refreshed 24-7
By Andrea Davis
Keeping your home spic and span can sometimes feel like
too tough a challenge. No matter how often you clean, the
house seems to get dirty again before the floors have even
dried. For those who don't have hours to spend cleaning, worry
not! There are simple, effective ways to keep your home clean
on a daily basis. Here are some tips to consider:
prevent dirt and debris from entering your home -- just bugs,
really. Unless you have small children, it's better to remove
them; removing the screens will keep your windows cleaner.
Keep storage handy. Storage boxes are always good to

have on hand. Keep some broken down in your closet or under
the bed for easy access. You can also build shelves for a
Invest in doormats. Placing doormats at your back and front relatively inexpensive cost.
doors helps cut the amount of dirt and debris trailing into your
Organize the coffee table. Coffee tables get cluttered
home. Placing additional mats outside can help cut even more.
quickly. Make sure you keep only the bare essentials on the
Groom pets daily. Pet hair -- especially cat and short-haired table -- and clean the table's surface often.
dog hair -- can invade your home in an instant. Brushing your
Make sure your floor is showing. If you have kids or pets,
pets every day -- and giving your dogs a bath every now and
there's a good chance that your floor is littered with toys. You
again -- can do a lot to help.
can teach kids how to pick up after themselves, depending on
Keep ducts and fans clean. Air vents and ceiling fans build their age. But with pets, you may need to keep another storage
box handy.
up dust over time. When they're turned on, that dust is then
transferred to your floors and furniture. Cleaning them regularly
Dust! You shouldn't have to spend hours dusting your home
will reduce the amount of dirt flowing throughout your home. If
on the weekends. Take a moment or two to wipe off surfaces
you need professional help, you can generally get your ducts
once a week. This keeps the dirt down and makes your house
and vents cleaned for about $330 (the national cost average).
look a bit shinier.
Replace air filters. If the air feels stale or musty, there's a
Create a place for every item. You should have a
chance you need to replace your air filter. Do so frequently to
designated place for every item you use. Racks, shelving -avoid too much debris entering into the air. You can also hire a
whatever you need to keep everything organized. That way,
pro to do this for you.
items don't end up piled on your dining room table or in the
No more window screens. Window screens don't really
living room.
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Opportunity
Steven Aslanian
818-879-0800
818-879-0800

What Kinds of Mortgages

Are Available?
By Benny L. Kass
Once you have signed a contract for the purchase of your

new home (or condominium or cooperative apartment), and
assuming that you do not have all of the cash in your bank
account, you will need to obtain a mortgage loan.
There are many different loans on the market - and many
different loan programs from which to choose. You should
contact at least three different lenders, and ask them to give you
a list of the loans which they can offer you. Take careful notes,
and remember one important thing: do not give any lender any
money until you are absolutely certain that this is the lender and this is the loan - you want to obtain.
This is not a complex issue, and all lenders are now

required to provide you with a written explanation of the way
their particular ARM works. Read it carefully and seek
assistance from your financial and legal advisors if you have
any questions
2. VA Loans: This type of loan is generally available from
mortgage brokers, It is called a VA loan, since only military
veterans can obtain such loans. They are guaranteed by the
Veterans Administration. There are certain conditions which you
must meet if you want a VA loan, and you should make sure
that your potential lender provides you with all the details, up
front.
Under the new mortgage lender rules issued by the

Consumer Financial Protection Bureau CFPB), it is actually very
3. FHA loans: This loan is insured by the Federal Housing
easy to shop and compare. Oversimplied, the three basic loan
Administration. FHA will guarantee the lender against a default
programs are as follows:
by the borrower, but the borrower will have to pay an insurance
premium for this coverage. Once again, there are conditions
1. Conventional: this type of loan in generally available
which must be met before such loans can be obtained, and you
from a bank, a mortgage broker, or a credit union. Within the
should discuss all these terms with the potential lender.
category of conventional loans, there are various options
available, such as a fixed 30 year loan, or an adjustable rate
It is not possible in a short article to fully discuss all the
loan (called an ARM).
various mortgage loans on the market. Furthermore, creative
lenders are always coming up with new programs in an effort to
ARMs adjust on a periodic basis, although in most cases
be competitive. However, not all these loans are in your best
they will run for a period of thirty (30) years. Generally speaking, interest.
the shorter the term of the adjustment (such as a one year
ARM) the lower the initial interest rate will be. However, when
You should shop around, and don't accept the first loan that
the adjustment period comes around, the interest rate for the
is offered. While the real estate agent and often the seller may
next adjustment will either go up or down, depending on the
give you loan information - and the name of potential lenders economy at the time of the adjustment. When interest rates are only you can make the final decision as to what is best for you.
falling, an ARM seems like a good deal. However, when interest After all, remember that the life of the loan may be as long as
rates are rising (as it appears they will be increasing as early as 30 years - and that's a long time to be stuck with an
the end of this year), the consumer who obtains a one-year
uncomfortable loan. For more information, go to
ARM is almost guaranteed to see the interest rate hike as high
consumerfinance.gov, and search "Know before you Owe".
as 2 percentage points at the end of the first year.
Equal Housing
Opportunity
Steven Aslanian
818-879-0800
818-879-0800


By Benny L. Kass
You and your spouse own your home and you would like to
sell it. However, your spouse is currently unable to sign the
sales contract. This is because he is either out of the country in
some exotic far-away-place where fax and overnight delivery is
unavailable, or because he is physically and mentally unable to
make decisions or sign legal documents.
What to do?
There is a document called a "power of attorney", whereby
your spouse signs a legal document authorizing you to act on
his/her behalf. The giver of the power of attorney is called the
Principal. The receiver is generally called the "attorney in fact".
The latter is given the right to act on behalf of the principal, for
the purposes and functions spelled out in the legal document.
There are two types of Powers of Attorney:
1. General -- here, the principal authorizes the attorney in
fact to take any and all actions as if the principal was taking
them himself. This is also known as a Durable Power of
Attorney. Keep in mind that your own State law may have
specific requirements in order to sell real property by way of a
Power of Attorney. Some states will not permit real estate to be
conveyed by a General power of attorney.
2. Specific -- here, the principal gives specific information
and instructions to the attorney in fact. For example, sell my
house located at 123 ABC Street; or write a $1,000 check to my
insurance company from my bank account. The specific
instructions are contained in the legal document, and the
attorney in fact has no authority to exceed those instructions.
If you plan to sell your house, and find yourself in the
situation where one party in title will not be available to sign
contracts, deeds or other legal documents pertaining to the
sale, it is best to have your attorney draw up a Power of
Attorney that meets your needs, as well as the legal
requirements in the State where your property is located.
The principal may want to put a time limitation on the Power
-- for example one or two months. However, with a durable
power of attorney, the principal normally does not place any
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such limitations. The purpose of a durable Power is to assure

that in the event the Principal becomes incapacitated, his
attorney in fact will be able to step in without having to go to
Court.
Let's go back to our example. If your spouse knows in
advance that he/she will be out of the country when you want to
sell your house, have the Power of Attorney executed before
the trip starts -- and give a long lead time before the Power
expires.
However, if you do not have a Power of Attorney and your
spouse suddenly has a stroke -- or is otherwise unable to
comprehend and sign legal documents, then you will have to go
to your local Court and seek permission to become the
Conservator of the Estate of your spouse. This is a relatively
easy (but potentially time consuming and expensive) process.
The Courts, however, want to make absolutely sure that you
are sincere in your efforts to represent your spouse and that
your spouse is, in fact, not able to sign any legal documents.
There is a lot of fraud involved, such as situations where
children try to use the conservatorship route to take away
property from their parents; accordingly, the Court will also look
carefully at all of the facts, and if possible, will even interview
the person to whom the conservator will be appointed. I once
attended an interview where the Judge went to the hospital to
make sure that no one was taking advantage of the sick person.
Preventive law is the key; consider obtaining a durable
power of attorney now, while you both are in good health. Each
spouse should sign a separate document, making the other
spouse the attorney in fact. However, an alternative attorney in
fact should also be designated, just in case both of you become
incapacitated at the same time.
Your local attorney should be consulted to make sure you
are using the proper forms and that you fully understand the
consequences of your actions. A Power of Attorney gives
someone else the right to sell your house, and you want to
make sure that you are not giving away the store.
Steven Aslanian
818-879-0800
818-879-0800

6 Tips For Selling Your

Home In Winter 2016
By Andrea Davis
Winter can be a harsh, unappealing time of year to sell your

home. With 2016 about to rev up, it's especially important to
make your home stand out if you want to sell in the New Year.
Here are some essential tips for making your house #1 on the
market as the year begins:
#1 Warmth is top priority: Your home should always be
warm when a realtor conducts a walkthrough with buyers. Set a
timer on your thermostat so it's warm when they arrive. Also
make sure to check there are no leaks or problems with your
ducts and vents, as this could make rooms cold during a
walkthrough.
#2 Keep the house bright: It's also important to ensure
that your home is adequately lit in each room. You want buyers
to feel welcome and impressed with the kitchen, bathroom and
bedrooms of your home. If a room has dim lighting or a
burned-out bulb, it could take away from the overall appeal of
the room. You should also consider spending a little extra
money to upgrade your lighting fixtures -- installing recessed
lighting in certain rooms will give your home a little extra "pop."
Standing lamps are also a fantastic, affordable alternative to
lighting additions
#3 Try to make your landscape appealing: Although your
yard will be mostly winterized during this time of year, there are
several ways to spruce up your cold weather landscaping. Start
by clearing your yard of any broken branches or large patches
of fallen leaves. It's also important to ensure that any ice or
snow on or near your home's walkway is removed. If needed,
you can hire a weekly snow removal service to keep your home
safe for buyer walkthroughs.
#4 Make the interior cozy: In addition to keeping your
house well-lit and warm, there are other ways to make your
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home cozy and welcoming to buyers. This includes: classical

music (at a low volume), homemade treats (candy, cookies),
holiday decorations (tinsel on the mantle, for example). You
want buyers to feel as though they already live in your home
when they walk through the door. When you offer them a cozy
setting, they will want to spend more time in your home and
admire its features.
#5 Keep the fireplace lit: While you should have the heat
on during a walkthrough, another warm and cozy feature is the
fireplace. If you've got a wood-burning model, this means you'll
need to have coal or wood handy. You don't want to have
multiple showings a day and a fireplace that roars for only half
the visitors. This is especially important if the fireplace is close
to the entrance (all of that cold air gets in!).
#6 Prepare for any storms: Make sure there's an
emergency kit on hand in your home in case your home suffers
an outage during a winter storm. This should include items like:
Extra candles
Matches
Blankets
Car charger
Canned food
Flashlight
Water
While your REALTOR will be prepared for inclement
weather, it's important that you be prepared to keep everyone
safe should the worst happen during a showing. And don't
forget to keep a secondary travel emergency kit to take when
you're leaving for showings as well.
Steven Aslanian
818-879-0800
818-879-0800

Home Sellers: How Your

REALTOR Does It Better
By Blanche Evans
As you think about selling your home, it may have crossed

your mind that you should just sell it yourself. In 2015,
approximately 89% of home sellers hired a REALTOR. What
do they know that you don't?
To sell your home yourself, you'll be competing against
experts who have more tools and connections than you do. In
addition to multiple listing services, broker Websites, real estate
Websites, personal Websites, and professional-grade videos
and photos, real estate professionals network with each other to
sell many homes before they are introduced to the marketplace.
Serious buyers are vetted through their real estate agents

and bankers so only buyers who are qualified to buy your home
can be allowed to see it. Do you know how to put a buyer
through instant credit checks so you'll know whether or not
they're suitable before you let them in your home?
Real estate transactions are rife with opportunities to make
legal mistakes. Do you know what you have to disclose to the
buyer to be compliant with state laws? If you did add-ons
yourself and didn't get a building permit, you might be in
violation of city codes that could come back to bite the buyer
and you.
You'll have to perform all the jobs a professional would do

for you, along with adopting a professionalism you haven't been
trained for, all while holding down your own job. When will you
have time to study the market, create a marketing plan, buy
advertising, show your home, and negotiate with buyers?
Closing in a garage doesn't mean you can add square

footage to your home without subtracting market value for no
longer having a garage. Your local taxing authority should
reassess your home so that the size and amenities match the
marketing materials and disclosures you've provided about your
It's no problem for a Realtor when a buyer wants to see your home.
home at any time, but will your boss let you take off in the
Once you have a contract, you have to get to closing and
middle of the day to show your home? Will she allow you to use
many contracts don't make it that far. The buyer can decline to
the company's graphics and editorial team to whip out a top
buy for a number of reasons, including FHA or VA requirements
quality listing presentation for you? Will you have the long-term
that your home might not meet. An agent can help negotiate
price trends to defend your price to buyers?
problems and make sure every entity in the pipeline is doing
You won't know whom you're allowing to see your home.
their jobs in a timely fashion so there are no bad surprises.
Even if you could arrange a time to show your home to buyers,
Those are only a few of the many reasons sellers hire real
how do you know they aren't coming into your home to steal
estate professionals.
your prescriptions or worse?
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Opportunity
Steven Aslanian
818-879-0800
818-879-0800

Understanding Smart Home Technology

So You Can Explain It to Buyers
By Blanche Evans
The Internet of Things is quickly becoming a reality, and

there's no place where this is more obvious than in our homes.
According to predictions from market researcher
MarketsandMarkets, the global smart home market will grow to
about $58.7 billion by 2020, fueling a 17 percent compound
annual growth rate and creating a significant consumer market
for smart homes. Buyers know the benefits that come with these
systems, and they want them in their homes do you know
how to sell it to them?
Here are a few of the more common smart home features
real estate agents should be familiar with:
Smart Thermostats
Smart thermostats are one of the quickest and cheapest
ways to upgrade a home. A smart thermostat like Nest learns
from the homeowner's habits and preferences and adjusts its
settings accordingly. It can also pull the weather forecast from
the Internet to set the optimal temperature and create monthly
reports, all of which help the home be energy-efficient and save
the homeowner money.
Homeowners who use a smart thermometer can save
between 10 and 12 percent on heating and 15 percent on
cooling bills, according to the company website. Show potential
buyers an example of the monthly report that Nest generates to
demonstrate how much money they can save with this smart
device. If you're showing a house that already has a smart
thermostat installed, show the potential buyer how he or she will
reap the savings benefit without having to invest in the upfront
cost of the device.
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Smart Lighting
Being able to control your lights with your mobile device is a
wonderful smart home feature. Philips Hue is probably the most
popular example of this type of smart lighting. Homeowners can
use a smartphone app to turn the lights on and off as well as
change the colors and brightness of the lights. If you have a
potential buyer with young children, you could light up one of
the bedrooms with a bright pink light to make it feel fun and
youthful. If you're trying to show off a home theater experience
in the living room, put LED light strips behind the TV and sync
them to music or a video for an immersive experience. This is
especially great for highlighting a movie or entertainment room
or showing a client that the space is great for entertaining.
If your buyer isn't interested in the aesthetics, explain the
more practical features of smart lighting. For example, they can
set schedules or set up sensors, so the lights automatically turn
on when they get home.
Smart Appliances
While getting a new appliance is a good way to increase the
value of a home, going one step further with smart appliances
makes it a selling point. Whirlpool has developed washers,
dryers and kitchen appliances that monitor energy costs and
delay or start their cycles when it is most energy-efficient time.
Users control these appliances with an app, which enables
alerts and remote commands from anywhere there is a data
connection. You should point out any smart appliances to
potential buyers because they will save them money in energy
costs and add value to the home.
Steven Aslanian
818-879-0800
818-879-0800

Equal Housing
Opportunity
Steven Aslanian
818-879-0800
818-879-0800


January 2016 Real Estate Update

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Copyright 2016 Realty Times

May all your Summer dreams come true"

Pages with full header

Pages with footer only

January Real Estate Update

January Real Estate Update

Important Clauses In Your Real Estate Contract

Important Clauses In Your Real Estate Contract

How To Keep Your Home Clean And Refreshed 24-7

How To Keep Your Home Clean And Refreshed 24-7

What Kinds of Mortgages are Available?

What Kinds of Mortgages are Available?

Dealing With Powers Of Attorney

Dealing With Powers Of Attorney

6 Tips For Selling Your Home In Winter 2016

6 Tips For Selling Your Home In Winter 2016

Home Sellers: How Your REALTOR Does It Better

Home Sellers: How Your REALTOR Does It Better

Understanding Smart Home Technology So You Can

Understanding Smart Home Technology So You Can

RE/MAX Olson & Associates

Copyright 2016 Realty Times

May all your Summer dreams come true"

Rates: Little Changed

n Freddie Mac's results of its

Primary Mortgage Market Survey the

U.S. averages as of December 24, 2015:

30 yr. fixed: 3.96%

3 Trends Sellers Should

How to Improve The

here are three

dominant trends that sellers should be

Housing Outlook for

the following important

is coming to the mortgage market,

RE/MAX Olson & Associates

Copyright 2016 Realty Times

May all your Summer dreams come true"

Important Clauses In Your

RE/MAX Olson & Associates

Copyright 2016 Realty Times

May all your Summer dreams come true"

How To Keep Your Home

Keep storage handy. Storage boxes are always good to

RE/MAX Olson & Associates

Copyright 2016 Realty Times

May all your Summer dreams come true"

What Kinds of Mortgages are Available?

Once you have signed a contract for the purchase of your

This is not a complex issue, and all lenders are now

Under the new mortgage lender rules issued by the

RE/MAX Olson & Associates

Copyright 2016 Realty Times

May all your Summer dreams come true"

Dealing With Powers Of Attorney

such limitations. The purpose of a durable Power is to assure

RE/MAX Olson & Associates

Copyright 2016 Realty Times

May all your Summer dreams come true"

6 Tips For Selling Your

home cozy and welcoming to buyers. This includes: classical

RE/MAX Olson & Associates

Copyright 2016 Realty Times