Effective immediately the National Association of REALTORS ® ( NAR ) adopted a national no pocket listing policy . A “ pocket ” (or off-market) listing is when a Seller does not want a property listed in the Multiple Listing Service ( MLS ) with or without a Broker listing agreement, but allows an agent to promote the property to fellow agents and sell to prospective Buyers. Most often, pockets are serviced without a written agreement, which causes issues and confusion. Excluding from the MLS means lack of public/Buyer knowledge and lack of widespread agent awareness of the property, and therein lies the issue .

NAR’s rationale deems that REALTORS ® who join a local MLS agree to cooperate with other member agents, and that wide distribution of listing information is pro-competitive and pro-consum-er. The MLS creates an efficient marketplace, and public access to a listing indicates cooperation with all its members while servicing the Seller’s best interest.

Exception: Office Exclusive

Sellers who are concerned about privacy and wide exposure of their property (i.e. divorce situations or celebrity clients) can opt for an “O ffice Exclusive ” listing. This allows the listing Brokerage to promote the property only to its affiliated licensees ( Coldwell Banker has the most with 2,100 area agents ). Disallowed are public ads or displays of the listing because once the listing becomes public knowledge it must be submitted to the MLS within 24 hours . Therefore, no yard signs, no digital marketing on websites, no e-mail blasts, etc. Also, no sharing the listing with agents in a multi-Brokerage network. And, Sellers can no longer share an off-market listing with agents from different Brokerages.

CA real estate is a business where everything must be in writing to be legally binding. Pocket listings, used mostly in high-end markets like CA, have been long-known to cause a variety of riffs without a formal agreement. Furthermore, a serious Seller is well-advised to submit their property to the open market via the MLS for worldwide Buyer consideration and for obtaining the highest sale price possible.

The local MLS member commun-ity will maintain a watchful eye on fellow agents. When a REALTOR ® loses a sale because a Seller's agent did not abide by the new rules, well...agent beware.

High-end Blast

This year starts with 24% more estate sales over $5M than in 2019. Americans still lead the buying market for sales of $20M+.

Here are two scenarios of would-be landlords:

1. A longtime homeowner who wants to move, but selling and paying high capital gains tax is not desired.

2. Someone who inherited a home under Prop 58 with low property tax and wants to turn the property into a long-term income producer.

Before renting, start with an overall home inspection (including a termite exam) by a licensed contractor to determine repairs, replacements or deferred maintenance that need to be addressed. Applicable CA law requires smoke detectors, a gas shut-off valve, hot water heater strapping, carbon monoxide detector and, if listed by a REALTOR ®, owner disclosures submitted to the tenant. Other pre-leasing expenses may include: new carpeting, polishing wood floors, interior or exterior painting, replacing window coverings and pool resurfacing.

If you hire a leasing agent this is not a property manager, unless hired in a separate agreement. After the tenant moves in, the landlord takes full responsibility. The on-going expense of a property manager may not be necessary for a single-family home if the lease is properly negotiated. Monthly rents can be sent to the owner by direct deposit payments; a home warranty policy can be purchased to handle repairs, and who pays for pool maintenance, gardener and utilities can be determined.

Note: Proof of renter’s insurance, paid by the tenant, is a must prior to move-in.

 A property owner is required to purchase a business license since renting is a taxable activity based on gross receipts. When deciding if renting a home makes sense, both would-be landlord scenarios must be weighed thoroughly since there are different long-term tax ramifications for property owners. There are also a lot of other decisions to consider before renting a home and becoming a landlord. Consult your tax adviser.

Short-term RENTALS ( click area) to read about the changes:

West Hollywood , Santa Monica

Beverly Hills or Los Angeles

W atchdogs

If you think no one is watching your rental property for violations, your neighbors are watching !!! They are the watchdogs of the street who will quickly complain if owners or tenants are out-of-line.

In fact, after a house is sold, it's the neighbors who spill the beans to the new owners. All the issues you have discussed over the years and may not have disclosed.

Not everyone is meant to be a property owner. When moving from a long-term residence, the decision to rent instead of buying a replacement home depends on several factors. Consider these:

- Finances: Consult a financial planner who projects how much you need to live for the duration. Did the sale proceeds and other income give you ample funds for living expenses and future medical emergencies or assistance?

- Stage of life: Depending on your age, think about how many more times you'll want move. A Boomer may want to rent a home or apartment while deciding where to live. An older Senior may want to make one more move into an assisted-living residence.

- Responsibility: Renting leaves the home maintenance, repairs and upkeep to the property owner. That is the joy of being a tenant.

- Security: Consider the safety precautions when living alone. A gated community or a full-service building provides added safety. The rental price will be higher, but the security is invaluable.

What, where and how long to rent becomes the challenge. The initial lease usually requires a written agreement, which states the months or years of tenancy. After that lease expires, an extension is signed or a month-to-month obligation takes effect. The latter allows a tenant to move with 30-days' notice; the prior requires a commitment until the renewed time frame ends. Either way, a rent increase is usually the norm.

Caution: When renting a condo or a home, an owner has the right to sell the property. The new owner has to adhere to the terms of a signed lease, but otherwise may give notice to vacate within 60-90 days when no lease is in effect. If you plan to stay put, consider renewing with a multi-year lease and ask for a six-month notice if the owner plans to sell.

Try to add a clause that allows the tenant to break the lease with 60-90 days' notice, in case a move to a medical care facility is required or should the tenant pass away (consult an attorney).

Centeniarians

A combined age of 211 years, click here to read about this Texas husband and wife. Or, here to learn about a 109-year-old Los Feliz resident and others.

Private RECORD BREAKER

Jeff Bezos bought the Warner Estate on Angelo Dr. in BH from David Geffen for $165,000,000. Zillow estimated value... $55M!



A private deal made between two moguls without REALTORS ®.

Here is an aerial view of the estate, which includes a nine hole golf course on-site.

There is no better exercise than swimming or water aerobics, especially as we age. This no-impact exercise offers total body strengthening, including the core; is gentle on joints and muscles, improves flexibility, is great for a cardio workout and the warm water feels soothing, too.

Many CA homeowners have an in-ground pool just steps away but it's unused, possibly for decades. Heating a pool is costly with a gas or electric pool heater, but what about solar heating?

According to the Department of Energy, solar pool heaters cost between $3,000 to $4,000 installed. Most homeowners investing in solar pool heaters will break even on their investment in less than seven years. Less costly solar options for pool heat include:

If you're planning to stay in your home, make use of that unused, expensive accessory in your yard. Physical therapy deluxe.

Check out Tesla's solar roof!

Tidbits of News!

- Paul Williams, the fascinating and famous LA Architect to the Stars is featured in this new PBS documentary, click here to view.

- Void and unenforceable are CC&Rs that restrict or prohibit the construction, use or rental of an ADU (see article) on an adequate lot zoned for single-family residential use.

- A federal appeals court upheld, unanimously, Santa Monica's ban on vacation rentals of fewer than 30-days; the strictest in the nation.

- LA Assessor says you have 150 days to notify his office if the property owner dies to complete a change of ownership form, or some consequences may apply.

- CA drivers spent $1.5B more for gas in 2018 than any other State.

- Solar is now required installation in newly constructed homes.

- SM and BH may require extra on-site parking spaces when building an ADU.

What impact COVID-19 will have on the local real estate market is yet another addition to the growing “ unknown” list. We do know: there is extreme volatility in the markets, mortgage rates are crazy low and the Fed’s fund rate dropped to .25% (lowest since the 2008 financial crash).

Demand for homes is still very high while supply remains low. But, are Buyers actively looking? Are Sellers pulling back? Will a recession bring home prices down? All indicators still point to a great time to sell and buy real estate. This may be a once in a lifetime opportunity, happening now. Stay tuned.

Leaving CA

Between 2007 and 2016 CA lost 1M residents who moved elsewhere in the U.S., about 2.5% of the State's population. The last four years of data found that CA professionals, aged 55-64, are most likely to move to Phoenix, Seattle, Las Vegas, New York City or Portland.

There has been a rush of retirees or near-retirees making a move to local low-tax states such as AZ and NV after the recent tax reform and the SALT exemption repeal, which increases the tax bill for homeowners. Older Seniors, formerly from CA, have opted for TX. The main outbound movers are the middle class, and the top reason remains: lack of afford-able housing.

Would You ADU?

Would you consider building a standalone unit on your property, or converting your garage, attic or basement space into a fully equipped living area to help combat the CA housing short-age ? New ADU ( Accessory Dwelling Unit ) laws make it easier to build a granny flat, casita or guest unit creating up to three homes on a parcel zoned as a single-family residence ( SFR ). Click here to search your area regulations for building an ADU.

How would you use an ADU; for personal or rental use? Let me know , send an e-mail to: Cynthia@RealtorRadom.com

What happens when a property for sale contains an add-on or another major improvement that was not permitted? It depends.

The whole purpose of a permit is to ensure that the work is done to code, according to State and local laws. The type of work (electrical, plumbing, structural) determines how the contractor will proceed. Once the work is completed, a City inspector will exam, and, when approved will issue a Certificate of Occupancy and sign the permit indicating all is to code.

All too often homeowners hire unlicensed workers or by-pass the permit stage to save time and money. But, when a Seller fills out disclosure forms, there are various questions about improvements (permitted or not), which must be answered.

Yet, the onus is on the Buyer to search for permits during the inspection period. If no permits are found, or do not contain final approval, a Buyer will decide to proceed or to re-open negotiations since they become liable after the close of escrow. A Buyer may:

If the work was completed years ago, you can bet it is not up to today's standards. What happens, depends on the Buyer.

Waiting List

University Village in Thousand Oaks is one of SoCal's most sought-after Senior residential communities. Here are some other properties developed by Continuing Life that may not have a one-year waiting list. Click the link below:

Land was recently purchased at Warner Center, corner of Canoga and Burbank in Woodland Hills, where they will build another top-of-the-line home for Seniors.

NEW! One Coast Palisades, live by the sea, Click here for info.