Random thoughts on art, technology, stuff, and occasionally Real Estate: August 2009

ESCROW SURVIVAL GUIDE - For Homebuyers In Northeast Los Angeles - Part TWO:  Making an Offer

Before you can open escrow, you must find a home you want to buy, make an offer on that home, and the seller must accept the offer.

So, let's start by looking at the process of making an offer. 

Purchasing a home is an ongoing negotiation from beginning to end.  The home's price is just one factor in the negotiation.  Length of the escrow period, length of contingency periods, seller credits or concessions, necessary repairs and warranties are just a few of the items that may be negotiated as part of your purchase contract.

Should you offer the asking price?  Or a lower price? Or should you offer a price above the seller's asking price?

In today's market, some bank owned homes are being listed with below-market asking prices, to encourage multiple offers and competitive bidding.   

To help you determine your initial offering price, together we will review comparable sales; that is, nearby homes of similar size with similar features that have recently sold.  We will also review other nearby properties that are currently on the market; or were previously on the market and did not sell.

As your agents, we will prepare the written purchase offer.  The forms we use are a standard set of documents approved by the California Association of Realtors, written by attorneys, to protect all parties involved in a real estate transaction.

The entire set of purchase offer documents will consist of the purchase offer, plus some advisories, disclosures, and addendums.

The offer must also be accompanied by your mortgage preapproval documents.  The corporate sellers of bank owned homes will often ask that you also obtain a preapproval from their preferred lender before considering your offer. 

If you are paying all cash for the home, we will need to present bank or investment account statements showing you have the necessary funds available to make the purchase.

As your agents, we will prepare a purchase offer that constitutes your offer to buy and, once accepted by the seller, becomes a valid, legally binding contract. 

As we write offer, you should be prepared to write a check for an earnest money deposit on the property.  A common practice to set the earnest money at 3% of the purchase price.  The earnest money deposit is evidence of your serious intent to complete the purchase.

The offer can be accepted, rejected, or the seller has the option to make you a counter offer. In a competitive bidding situation, the seller may call for the top bidders to resubmit offers at their "highest and best price".

This back-and-forth, step-by-step contract procedure is standard for most home purchases.  At Bob Taylor Properties, we will stand by you every step of the way, and consult with you about responding to each counter offer.  

You can contact Bob Taylor Properties, Inc. at 323.257.1080; 5526 North Figueroa Street, Highland Park, CA 90042

As promised, I have started an occasional photo collection of some the Highland Park's Alleys and Parking Lots. 

Many of our Alleys and Parking lots are home to some remarkable examples of graffiti art.

This parking lot is on the South side of North Figueroa, in between Avenue 57 and Avenue 58,

The local MLS does not allow the words "Short Sale", "REO", or "Bank Owned"  in the Marketing Remarks.

I suppose, if asked, they would respond that those statement indicate the property is probably vacant, and that they do not want the liability of vandalism or break-in by announcing to the world that any particular property is vacant.

Although I also suppose that if the would-be vandal took the time to drive over to a particular property, they could discover whether or not it was vacant easily enough.  Ya think?

On the other hand, there are serious buyers searching for properties online, and knowing whether or not a particular property is bank owned, or is a short sale, would be useful information for that buyer.

Just my humble opinion.

Organzing your Facebook friends into "Lists' will make Facebook much more useful for you, and may, in fact, save your sanity.

From the Facebook home page, you create "Lists" and put different people on different lists.  Then drag your "A-List" to the top, so by default those are the only folks you see when you first open Facebook...

On your Facebook home page, look at the left column ...Right below the list of icons in that column, you'll see a link that says "More"... Click on "More".

At the bottom of the expanded list, click "Create New List"  (If you don't have a lot of stuff in the left column, you'll see "Create New List" without having to use the "More" button.)

After you click "Create a New List" a box will pop up displaying all your friends.  Create a name for the list, then work thru all your friends, selecting just the ones you want to appear in your new list of update feeds.

When you've finished selecting friends to this list, click "Create List"

That new list will now appear at the bottom of the icons in your left sidebar column.  Click on "More" again to expand the list.

Once the list is expanded, you can drag the icons to different positions in the list.  If the list you just created is your "A-List", drag it to the top of the left column sidebar.  The list that is at the top is the one that will display by default when you open Facebook.

To read what's in the other lists, just click on the list title.

Using this technique, you can make separate lists for special friends, family, business friends, Active Rain friends, people in a particular club or group, church friends, people working on a particular project.  etc., etc., etc....

ESCROW SURVIVAL GUIDE -For Homebuyers in Northeast Los Angeles - PART ONE:  What is Escrow? 

Many eastern states use a settlement/closing process to effect a purchase of real estate.  California and several other western states use a process known as "escrow".

It's bad enough that the word "escrow" itself can be used is so many different ways.

"Escrow" can be a verb:  As in "We will escrow the money".

"Escrow" can be a company name:  As in "Arroyo Village Escrow".

"Escrow" can be a generic noun, a word for the process itself:  "We are in escrow".

And "escrow" as a process is not limited to real estate transactions.  You can escrow items you buy and sell on eBay.  eBay's one approved escrow service provider is escrow.com.

Escrow.com describes the eBay escrow process this way (I am paraphrasing here):

1.  Buyer and Seller agree to terms

2.  Buyer submits money to escrow.com

3.  Escrow.com confirms receipt of money

4.  Seller ships item

5.  Buyer confirms receipt of item

6.  Escrow.com forwards the money to the seller.

Substitute the idea of shipping the item with the idea of recording the transfer deed, add a few layers of complexity, a few additional steps, and a few zeros to the price of the item, and you will understand the process as it applies to a real estate transaction.

An escrow company is a neutral third party.  Buyers and sellers deposit documents and money with this neutral third party.  The neutral third party holds the money and the documents, until whatever conditions agreed upon by both buyer and seller are met, then the third party distributes the documents and the money.

In a California real estate transaction, the neutral third party (the escrow company) has some requirements to of their own to complete before the transaction can close.

So while the buyer is busy obtaining inspections and completing paperwork for final loan approval, and while the seller is busy making agreed upon repairs and making moving arrangements, the escrow company will: 

1,  Receive buyer's initial deposit and prepare escrow instructions. Obtain all signatures.

2,  Order a title search and receive the preliminary title report.

3.  Distribute copies of the preliminary title report to all parties and obtain approval.

4.  Request "demands" (that is, pay-off statements) from the seller's existing lenders.

5.  Obtain seller's signature on grant deed. Hold grant deed until all terms are meet, and all money is deposited.

6.  Calculate prorations on property taxes, rents, insurance, or other expenses as required.

7.  Coordinate with buyer's lender. Order and process buyer's loan documents.

8.  Receive buyer's down payment funds and request funds from buyer's lender.

9.  Order recording of grant deed to buyer and distribute all funds: Pay-off existing loans; pay required costs, such as termite completion; release net proceeds to seller.

Don't worry!  If you are working with one of the experienced real estate agents at Bob Taylor Properties, Inc., in Highland Park,  we will constantly monitor your escrow to make sure that all participants are performing their tasks correctly and on time; so that your escrow proceeds smoothly and closes successfully.

After many years in the planning José Saavedra joins forces with Grammy nominated Puerto Rican songwriter and producer Walter Morciglio to present Conversos, a collection of contemporary Puerto Rican Poetry put into song. As Saavedra's previous works, Conversos explores the territory of Latin American acoustic guitar music this time to blend them with Morciglios territory of electronica and pop, creating a blend hard to attach to a specific genre.

Conversos (Converts/Together with Verse), as the Spanish title suggests is an exploration of words in their poetic form. It is also a journey where two songwriters are converted to an imaginary religion or faith where the path towards illumination is the process of discovering the power of poems by converting them into songs.

Avenue 50 Studio is supported, in part, by the Los Angeles County Board of Supervisors through the Los Angeles County Arts Commission, in addition to the California Community Foundation and the City of Los Angeles Department of Cultural Affairs.

Where:  Avenue 50 Studio, 131 North Avenue 50, Highland Park, Ca 90042

When:  Sunday, August 16, 7:00PM

Cover:  $10.00

A brief history of Bob Taylor Properties, Inc. in Highland Park, CA.

Bob Taylor entered the real estate business in 1980.  His previous career often required cross-country or international travel, and Bob wanted to spend more time with his young family.

Real Estate proved to be a good fit.  As Bob's business grew, he formed a partnership with Cheryl Johnson, a new real estate agent, in 1982.

Cheryl's detail oriented technical abilities complimented Bob's strong sales skills.  Cheryl urged early adoption of the Internet.  Who-is records show the domain name bob-taylor.com registered on March 13, 1996.  That original web site created by Cheryl Johnson. still receives thousand of visitors every week.

Bob Taylor was highly successful while working under a local brokerage, but after several years, he knew it was time to open his own shop.

Bob purchased a vacant building on North Figueroa street, in the heart of Highland Park, filed articles of incorporation, and in March of 2000, Bob Taylor and Cheryl Johnson opened up the doors to Bob Taylor Properties, Inc.

In September, 2008, Dan Jordinelli, of Jordinelli and Associates approached Bob Taylor  with a proposal to join the two brokerages.  Jordinelli and Associates is a well known and respected founded by Dan Jordinelli in 1986, located in Eagle Rock.

It is a match up that is working well.  There are friendships between the agents and principals from both firms that span decades.  Each individuals unique skill set adds to the dynamic synergy to create a powerhouse independent brokerage in Northeast Los Angeles, in this new era of real estate. 

Bob Taylor Properties, Inc.

5526 North Figueroa Street, Los Angeles, CA 90042  323.257.1080

When Ghetto Grounds, a coffee shop on the parkgrounds of Tierre de la Culebra, opened a few months ago, Highland Park locals voiced some concern over the word "Ghetto".  After all, that word does carry some baggage.

Tierra de la Culebra youth worker, Kimberly asked the concerns best in this comment she made on the York Blvd. blog:

"I feel if you would come down and visit Ghetto Grounds you would see a new meaning in ghetto.The vibe in the shop is really chill it feels like coming into your home making a cup of coffee and chilling with your friends.People would see It like a "ghetto" version of a ‘real' coffee shop.We have bulliton boards were we pin our ‘qoutes' of the week, couches with fun pillows on them, and books on a table.Coffee shops now and days has been made a place where you rush in and out, and on the contrary everyone loves to enjoy there cup of coffee.Thats why we've made it a place where you share laughs, have great conversations, escape from reality for a while and just enjoy your cup of joe or organic tea =)"

Tierra de la Culebra is located at 240 South Avenue 57 in Highland Park.  The park was originally an unwanted vacant parcel of land, located on a block inbetween North Figueroa and the 110 Freeway.

Art Corps LA created a stone serpent on the grounds --La Culebra--to represent fertility and growth in the diverse cultures of Highland Park.  Art Corps LA offers youth arts programming, cultural festivals, art classes and building projects.

Do pay Ghetto Grounds in Highland Park a visit.  Word on the street is that the coffee is excellent.

More info here.

It's Tuesday! Come on over to the Old L.A. Farmers Market in Highland Park, from 3 to 7 pm, on Avenue 58 and Marmion Way.

And this week is a special treat!  Music at the Market!  Music at the Market! Sizzling Summer Music Nights!

Bands scheduled to play on August 11 are:
Crosby Tylor 4pm
Artichoke 5pm
The Seasons 6pm

Come for the entertainment and stay for the fresh produce, hot and prepared foods and arts and crafts.

The Old LA Farmers Market is every Tuesday from 3-8pm. Corner of North Figueroa and Ave. 58. Lots of free parking at Ave. 57. Adjacent to the Highland Park Metro Goldline.

Come to the Square today and enjoy the rhythms of Salsa & Rumba = "SalSumba", a group of multitalented musicians from all parts of the world.

The combined talents of these musical artists creates a contagious energy that is sure to bring your audience to their feet & on the dance floor with their Afro/Caribbean rhythms of Salsa, Rumba, & Latin Jazz. 

Where:  Heritage Square Museum, 3800 Homer Street, Los Angeles, California 90031
Tel. 323-225-2700

When:  Doors open at 4:00PM, Music at 5:00PM