Homeowners often state they want to sell their property "as is", but what does that mean? Most people don't have a clue, so here is a Q&A that will help to explain.

The term as is means: the property will be delivered to the Buyer in its "present physical condition" without warranty or guarantees that any part of the home, inside or outside, will work after the close of escrow. Should the oven not heat or the plumbing spring a leak or the roof start to cave, the Buyer is on their own to repair or replace.

Every property in CA is sold as is because the CA purchase contract states so in paragraph 7B-1. But:

Q. Is the Seller off the hook totally?

No. The Seller is still obligated to maintain the property in its present condition as of the date of acceptance. If the property is damaged during escrow, at no fault of the Buyer, then the Seller will likely have to make good.

Q. Is the Seller required to adhere to retrofitting requirements?

Maybe. While the Seller is responsible for local and state retrofitting laws, this can be shifted to the Buyer to comply after the close of escrow.

Q. Is the Seller still obligated to make disclosures under as is?

Yes. All known material defects and facts are to be disclosed. While a Successor Trustee is exempt from most disclosures, any known material fact needs to be disclosed.

Q. Does the Buyer waive their right to property inspections?

No. The Buyer can still investigate and subsequently ask for repairs or a credit on discovered issues.

Q. What is the most common mistake when using an "as is" provision?

When a Request for Repair is issued to the Seller and their reply states: "the property is sold as is".

The correct response is to explicitly counter out the repair or respond to each request directly.

It never hurts to ask! A Buyer always has the right to ask for anything. The Seller always has the right to comply in-part or in-full or to decline. It is then up to the Buyer if they want to proceed with the "as is" purchase.

Record-breaking year in 2021 for Estate sales ($5M+); most expensive CA sale ever was in Malibu for $177,000,000.

Take your pick: climate change, water shortage, mega-droughts, water use restrictions and wildfires are just some of the reasons more CA homeowners are considering synthetic lawns. In 2015, Gov. Brown signed a bill into law preventing CA cities and counties from banning drought-tolerant landscaping and artificial lawns.

Here are five things to know about fake lawns taken from an article in the Washington Post.

1. Residential artificial grass is different from sports turf: Artificial turf, used frequently for sports fields, is shorter and has a primary safety concern of shock absorbency using rubber fill for high-impact body collisions. Artificial grass is designed to look and feel like natural grass, subtler shades of green and more fiber with longer, fuller blades. The result is a denser, plusher look containing far less infill and a more pleasing texture to walk barefoot.

2. Complex installation: Artificial grass is an involved installation, which requires excavating and compacting topsoil then adding a sub-base of crushed rock for a water-permeable layer.

3. Virtually maintenance-free: Leaf raking and removing debris, when needed, keeps artificial grass looking lush and inviting all year round. (The article did not mention the cleaning process for dog residue.)

4. Environmental benefits: Reduces landfill needs (grass clippings are the third largest component); a primary source for water conservation (1,000 sft. of artificial grass saves tens of thousands of gallons of water annually) and removes the need for toxic chemicals harmful to animals and humans.

5. Long lifespan: A 10-year warranty comes with most installations and the life expectancy of 20-25 years.

LA area Estate sales ($5M+ properties) totaled 1,037 homes as of early December 2021; a 62% increase over 2020 with another 128 high-end properties in escrow.

CA Hustle: Cities across the State are scrambling to blunt the new SB9 law, effective 1/1/2022, that allows homeowners and investors to build 2-4 units on most single-family residential lots,

implementing requirements for parking, height, size and rental to only mid-to-low income tenants. Local ordinances cannot block SB9 in its entirety.

REALTORS® have been advising homeowners forever that Zillow property estimates are not based on reality. Online Zillow valua-tions, dubbed Zestimates, are based on statistical algorithms, i.e. home and property size, bed and bath count and sale prices of so-called "comparable" homes. A Zillow value is forecast purely on numerical and historical computerized data. But, to advise a Seller that their home is worth a fraction of what Zillow estimates remains challenging.

Zillow Group, Inc.'s CEO, wanted to shake-up and change the way homes are sold by forming an iBuying business. Zillow began to purchase, fix and flip homes, working directly with homeowners. An all-cash offer would be made, based on unrealistic Zestimates, usually much higher than market value. In addition, Zillow then had to hire contractors in a time of workforce and material shortages and rising costs. Today's real estate market is too volatile and not ideal for any flipping concern. Speculators often pay too much and underestimate the time and cost to ready a home to sell.

Zillow's recent decision to close its home iBuying business and layoff 25% of its staff is based on the “unpredictability in forecasting home prices” that was more than anticipated. Zillow lost millions of dollars finally recognizing that its online home valuations are unreliable, costing the company $350 to $500 million.

A detailed market valuation by a REALTOR® or an appraiser takes into account visual aspects of a property such as: improvements or deferred maintenance, lot location (flat v. hillside) in addition to desirability, environmental factors surrounding a property and add-ons.

Homeowners, when you want to know the value of your property, call a REALTOR®. Beware of what you read online, just like WebMD.

Foreign visitors returning to the U.S. will once again compete in the CA home buying market.

Homeowners who are strapped for money believe a reverse mortgage is a pot of gold. But, this is a high-cost loan that is paid-off when the home is sold. There is an alternative.

A reverse mortgage is normally obtained by longtime homeowners who don't want to move, but need money for upkeep on a war-torn property. They obtain this loan to replace broken appliances, make deferred home repairs and pay bills but use little to nothing toward improving the property value. Often overlooked is money they may need for future medical bills, care assistance or emergencies.

The real pot of gold is the equity a Senior has generated during decades of home ownership. What makes financial sense is to take advantage of this record-breaking Seller's market and turn that equity into a pot of cash. By selling, not only will money be readily available to take care of all personal needs, or to invest, but funds will no longer be wasted on a possible teardown. Heirs will also benefit by receiving money instead of paying-off debt on an expensive reverse mortgage.

When a REALTOR® takes a listing on a property sale the commission fee is an agreement between the Seller and the Broker (the agent's company). The split paid to the Buyer and Seller agents is also determined at that time. Only the percentage offered to the Buyer's agent is stated in the MLS. NOTE: within each split, a portion is paid to the agent and the balance is retained by their Broker. No one gets the full percentage.

When a Seller's agent also represents the Buyer, the REALTOR® takes on a dual role and twice the responsibility. Not less work, but more, to ensure an equal fiduciary representation. Whatever portion, or split, of the total commission a Seller offers to a Buyer's agent, that percentage should never be reduced in a dual agency role.

- Seller Reminder: Remove, hide or lock up valuables, medications, personal bills, cash and whatever small items you don't want possibly stolen during an open house or private showing.

- High Fire Area: When buying a home in the hills, make sure to research the cost of homeowner's insurance as soon as the offer is accepted. Beware of sticker shock!!!

- Speaking of: When was the last time you reviewed your home insurance policy? Are you covered enough if displaced because of a fire or flood? Take a look, today!

- Investor purchases: Builders or other investors are not subject to the same liquidated damages cap of 3% as owner-users are should they default on a real estate purchase. Any amount over 3%, that is deemed a deposit, has a potential of forfeiture.

- *Condo transfer: Double check that the parking and storage numbers you use are the same ones stated in the condo Deed of Trust.

- Air conditioner: Winter is the time to schedule maintenance.

- Rental Forecast: Bev Hills to the Ocean, 2022 residential rentals expected to be in slight decline.

When buying or selling a condo there are specific factors that enter into an asking price and/or a purchase price. Not all condos are alike within the same building or community. And, the homeowners association (HOA) does not offer the same amenities or services.

Here is a list of considerations when determining a condo price for sale or for purchase:

- Location: Lower or higher floor; front, side or back of the building

- Common walls: End unit with one common wall or middle with neighbors on each side

- View: Ocean, mountain, city lights or neighboring building

- HOA solvency: How much money is in the emergency fund and available for repairs and reno-vations; percentage of annual dues increase; upcoming assessments

- Condition: Upgrades or needed improvements to the unit

- HOA dues: Monthly dues are tied-in with amenities; how much and what is included (earthquake insurance, electric vehicle charge)

- Rentals: What is the policy and the ratio of owners v. tenants

- Pets: Weight and number limits

- Co-op v. Condo: There is a major difference between the two

- Levels: One-story or multiple levels like a townhouse

- Financing: Co-ops have fewer mortgage opportunities, limited lenders or require all-cash

- Bedrooms: Do bedroom walls abut or are they separated on opposite sides of the unit?

NOTE: see Tidbits of News*

Determining a listing or purchase price is about comparisons. Look at the comps, only in the same building or complex, then add or subtract for different factors.

In this competitive real estate market, Buyers are looking for creative ways to get their offer accepted over the masses. One way is to remove contingencies. However, Buyer beware!

There are three main contingen-cies for a Buyer to approve or to get approval when buying real estate. All contingencies have a (negotiable) default deadline for due diligence on the offer form:

1. Loan Contingency: 17 days to obtain loan approval from the lender. This contingency can be removed when paying all cash with substantiated proof of funds. Or, if a Buyer has an underwriter's approval and is confident that a loan can be obtained.

2. Appraisal Contingency: Within the 17 days for loan approval, a lender will require an appraisal, sometimes two for larger loans. Even if all cash is used, a Buyer may want to get an appraisal for justification of the purchase price. Issues arise if the appraisal is lower than the loan amount and especially if the Buyer has removed this contingency.

3. Inspection Contingency: 17 days to inspect. When buying a teardown, a Buyer should perform land and building-oriented investigations. Often a geological or a topographical report is done during this time period. When keeping the structure, a roof to sewer line inspection is a must, unless the Buyer is cash rich.

FYI - CA now has a newly revised purchase agreement - 16 pages!!

An onsite lockbox stores a property key for access by a Buyer's agent when a listing agent does not personally show the property. Only agents can obtain access with a special lockbox card and code. The container's technol-ogy records the agent's name, date and time of entry and exiting the property. In the LA area, lockboxes are standard use by Valley agents, but not so much by Westside REALTORS®.

Personally, as a listing agent, the use of a lockbox does not allow me to fulfill my obligation to the Seller, the principal who pays the commission. Whether the property is vacant or furnished, the listing agent has a job to do:

- SECURITY: REALTORS® are not responsible if something is stolen from the property. But, as a listing agent, we are responsible for securing the property when leaving.

- EAVESDROPPING: While socially unacceptable, listening to comments made by agents and prospects during a showing is imperative. They discuss the pros and cons of the property and offer insight into a Buyer's situation, i.e. a need to sell before buying, or financing concerns.Whatever is overheard, the information is extremely useful for negotiations, and for Seller feedback when a price reduction is warranted.

Using a lockbox allows an agent to take simultaneous listings. This benefits the REALTOR®. But, does the use of a lockbox benefit the Seller...the client?

Dean Sharp, the House Whisperer on KFI 640-AM radio, shares this information:

If you suspect a water leak or LADWP has sent a letter stating your water usage is abnormally high, finding the leak source is foremost:

- First, look for a wet spot on your walls, ceiling or floor throughout the home: inside the bathroom and kitchen cabinets, near the water heater and washing machine, etc.

- Second, turn on the sprinkler system and check for geysers, where a sprinkler cap may have fallen off and water is wasting.

- Third, turn-off all running water and check the water meter odometer usage dial, which indicates if any water is running. The meter is usually located in the parkway and a cap opens to expose the dial. If there is an indication of water movement on the dial, then it is time to call a professional to find the source of the leak.

What a tankless water heater is not, is an instantaneous source for hot water. The major benefits of a tankless unit include:

- Provides an unlimited supply of hot water; no tank fill limits

- Less space to install: inside or outside the home

- Saves energy: Uses gas only when there is a demand for hot water. However, when there is an instant need, the tankless will use more gas during that period.

- Average life span: 20 years

Interest Rate Hikes: first hike of .25% is expected in the Spring and the same percentage each quarter in 2022.