“Mr. Rogers Had It Right”

By: Lori Einhorn

With the recession in mind, it seems easy to pinpoint a prospective buyer’s most important factor in purchasing a home – price. But in fact, this is not the case. In the 2012 Home Buyers Survey taken by the California Association of Realtors, buyers actually identify “neighborhood” as the must have variable when choosing a new home. “Good price” was chosen by only 29% of respondents, not the overwhelming majority as many may have anticipated. Why? Well, there are a few factors.

1. Walk scores: An interesting new dimension of real estate has come into play over the past few years. Sites like www.walkscore.com, calculate the “walkability” or ability to walk to amenities on a 1-100 basis. A home’s walk score has become more important to buyers for health and community benefits. More importantly, walkability has an impact on a home’s price. According to a study conducted by CEOs for Cities, one walk point can increase a home’s value anywhere from $700-$3,000.

2. Schools: Both realtors and potential buyers have always understood the importance that schools can play in a purchasing decision. In the past, many buyers have only focused on elementary and maybe even middle schools but this mentality has changed. Buyers now look at high schools for their children in tandem with all other primary education. Families want to establish themselves and a neighborhood and school system; they plan on staying around for the long haul. Beyond establishment, money is also a factor in this new mentality. Brett Bocook, buyer in Palo Alto stated, “‘Yes, the house costs more in a neighborhood with amazing schools, but does it really? If you rund the numbers on private school for two kids, you very quickly realize that you can afford a larger monthly mortgage payment in exchange for a good school district.’”

3. New vs. Old: Each potential buyer has different circumstances which affects his or her taste in a particular neighborhood. The age of a neighborhood has become important to buyers based on the type of lifestyle they lead. For some, a newer neighborhood is more desirable because of the community aspect including pools or clubs. For others, the idea of living in a new neighborhood with HOA fees and strict rules is unappealing.

With all of these factors in mind, it is easy to understand how neighborhoods have become so important to buyers. Moreover, realtors need to remind their buyers that, “you buy the neighborhood  not the home. You can’t change the location but you can change the house.”

Lori Einhorn

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How Much is Your Tree House Worth?

By: Lori Einhorn

There’s not much worse than bad blood between neighbors. The best way to escalate an already negative situation? Take it to court. In the following cases neighbors go into legal battles over….a tree? A road? Yes. As absurd as it may be, a seemingly simplistic situation between neighbors turned sour post litigation. Try judging these court cases for yourself. See if you can guess the final judgment after hearing the case. You may be surprised by the answers.

Case 1: Gatchett Lane

35 years ago, the Gatchetts and their neighbors agreed to a 60-foot-wide private road and public utility easement between their properties. This land was called Gatchett Lane.  Years later, the lots in the area were divided and sold. In 2002, a piece of the land was sold to Seth Barlow and he included in the Gatchett lane easement. One of Seth’s neighbors, a developer added three other roads to the neighborhood making Gatchett lane unnecessary for transportation purposes. The developer proposed building out the 5 lots left around Gatchett lane. Twenty-two neighbors agreed to give up their easement rights but Seth refused. Even after a $30,000 offer to abandon his easement, Seth stood his ground.

The developer decided to sue Seth in order to “quiet title to terminante Seth’s easement, or, in the alternative, to reduce its width from 60 feet to 15 feet.” The court ruled in favor of the developer stating that “Seth’s reasonable use requirements, both presently and in the future , did not encompass the full size and scope of Gatchett Lane, whereas reducing the strip of land would allow the developer to proceed with appropriate use of his property.” Seth proceeded to appeal the decision. If you were the appellate judge, what would you decide?

Settlement:

The decision was overturned and Seth won. Why? “Courts have no authority to partially or fully extinguish an otherwise valid easement.” The developer had argued that changed circumstances can terminate a granted easement. The court though, disagreed based on the premise that no other California case supports the concept. He also stated that it was in the public’s best use to turn the land into another part of the development. While true, the court pointed out that the developer put this upon himself with a poor design. He should have used Gatchett lane as a main road in the development and the entirety of the case could have been avoided.

Case 2: The Very Giving Tree

Between the yards of the Soneses and the Kallises was a shared 70-foot Aleppo pine tree. As the tree continued to grow, the Soneses feared that it would topple over so they cut it down. At that time, they believed that they owned the entire tree but after closer inspection the tree belonged to both families. The Kalises sued the Soneses for removing the tree. During the trial, the Kalises provided images of the tree shading their home and their children playing in the treehouse. They brought in an expert witness that stated, “the value of the tree using a ‘trunk formula method’ was $42,678, plus $11,080 for installation and aftercare costs. He also testified that to locate, transport, and install an identical tre would cost about a million dollars.”

The Kallises won the trial and were awarded a judgement of $107,256. This was calculated by estimating two times the tree’s value and costs asserted by the expert witness. In California, the law allows for monetary costs to be doubled in the case of injuring a tree. The Soneses appealed the court’s decision, stating that only half the tree was on the Kallises’ property. Because of this, they believed that the monetary judgement should be reduced based on the percentage of tree that was actually located on the lot. Do you think that the Kallises’ should receive a smaller financial compensation because only a portion of the tree was on their property?

Settlement:

The court decided against the Soneses’ appeal. They stated that “monetary damages awarded for tortious injury to property is generally ‘the amount which will compensate for all the detriment proximately caused thereby’.” Moreover, the emotional ties to the tree allowed for the court to increase the monetary award to the Kallises.

Lori Einhorn

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California Buyers Speak Out

By: Lori Einhorn

The California Association of Realtors covered the findings of their 2012 Home Buyer Survey in their most recent magazine issue. An article, titled “Please Just Text Me” is full fo quippy yet savvy observations of recent home buyers in California. I took their most prominent findings and created a list of “must reads” for all realtors. Take a break from your busy schedule to look over them; it’s worth your time.

• The number of buyers using Internet during a purchase is 96%
• On average, buyers consider a purchase three months before contacting an agent
• In regards to online activities, previewing a home is the most important to buyers; rated 8.9 on a scale of 1-10
• More than half of all buyers found their home on Realtor.com or Zillow
• 90% of buyers indicate they are receptive to receiving information about the home buying process directly from their agent via social media
• When it comes to selecting an agent, response time is important to buyers, along with being aggressive and able to negotiate
• 59% more buyers now Google their agents than in 2007, when only 2% did
• Buyers were most satisfied with agents who found the best home, worked hard and responded quickly

Do what you do so well that they will want to see it again and bring their friends. – Walt Disney

Lori Einhorn

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“Be a rainbow in someone else’s world” – Maya Angelou

By: Roger Ewing

A few weekends ago I had the pleasure of seeing renowned ukelele player, Jake Shimabukuro perform in Agoura Hills. I’ve always had a passion for music and recently took up guitar which made my appreciation for Shimbukuro’s talent all the much greater.

Shimbukuro has been a huge supporter of ChildFund International, an organization dedicated to helping both children and their family’s around the world. On his ukelele tour, ChildFund International has followed Shimbukuro around the US to promote awareness. While at his performance, I visited their booth and couldn’t help but feel compelled to help the cause. I decided to sign up as a sponsor for a child in need. By signing up, I received a small package describing the child I would be supporting. The young girl that I have the fortune of helping, is currently living in Cambodia wit hher grandparents because her parents work too far from home. There is more to her story, just as there is more to the story of many other children that need our help. For a very minimal amount per month, I am able to make the different a someone’s life who was not given the same opportunities that many in the US are afforded.

I strongly suggest looking into the ChildFund International organization. The organization states that “the well-being of the world’s children leads to the well-being of the world”. As globalization continues, it is incredibly important to maintain a global mindset. By helping a child in need, we are helping the world grow as a whole.

Roger Ewing

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Alkaline Water 

By: Lauren Rauschenberg

When you go into a market and enter the aisle that sells water you can become overwhelmed and confused. Such a simple thing as water, is so complicated with the vast variety and promises. I have recognized the latest craze is alkaline water. There is bottled water readily available in grocery stores as well as home “ionizers” that can sell from anywhere between $1000-$6000.  Considering the price tag, is there really a benefit or just more “watered down” promises?

Advocates of alkaline water argue that its health benefits range from disease prevention to slowing the aging process. How? Alkaline, or “alkali” is a substance with a pH greater than 7, meaning that it is considered chemically basic. In contrast, your average drinking water has a pH of 7 or chemically neutral, similar to the human body’s pH. Companies selling alkaline water state that the water has the ability to counteract acidic foods because of its basic properties. Drinking the water after eating acidic products will allegedly bring your body back to its normal pH. This in turn, prevents your body from leaching important minerals to naturally create a neutral pH.

Cycle back to the main question at hand, does the water really provide these benefits? Or is this just another corporate ploy? According to an article in the Wall Street Journal, companies have conducted little to no scientific research regarding the health benefits of alkaline water. Sure, companies assure consumers that drinking alkaline water will have major health benefits, but this may not be the case. John Petrini, gastroenterologist and past president of the American Society for Gastrointestinal Endoscopy claims that there are no health benefits at all. “After it is digested, food and water goes into the stomach and—no matter what pH it was when it entered—ends up leaving the stomach at a pH of about 6.8. And no matter what you eat, your body has effective mechanisms to keep your blood in a narrow range between 7.35 and 7.45″.

In a culture obsessed with youth and easy-fix health solutions, it’s easy to see why alkaline water has risen in popularity. I’m sure everyone can say they’ve bought into a marketing scheme at what point or another and this time is no different. It’s always important to take the time to research the latest health fads for any merit. Fortunately, enough background research has been done on the companies boasting the benefits of alkaline water to realize that the supposed benefits are not worth the hefty price.

Lauren Rauschenberg

Lauren Rauschenberg, Estate Broker at Ewing and Associates Sotheby's International Realty, is a practicing civil litigator and emerging Realtor. With nearly 10 years of experience in real estate law and as a title company manager, Lauren discovered a broader demand for her estate expertise.

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Providing Shelter for Neglected, Abused and Abandoned Animals

By: Lori Einhorn

Animals taken in by Hooves & Paws Animal Rescue have had no other place to go. They were unwanted animals that may have been abused, neglected or set out to meet a certain death. At Hooves & Paws, these animals are given a second chance at life.

This non-profit organization began in order to save animals of all types, hence the name “Hooves & Paws”. They define their mission as an ”animal rescue organization and sanctuary dedicated to widening the circle of compassion to include all animals.” The organization is entirely made up of volunteers and is maintained by the support of  their members.

Currently, they are home to 80 animals including dogs, horses, potbellied pigs, goats, sheep, farm pigs, cattle, chickens, turkeys and ducks. While at their sanctuary, animals are rehabilitated with “ nutritious food, soft bedding, excellent veterinary treatment and round the clock loving care”. Once healthy, the animals are available for adoption to carefully screened adopters. If an animal is not adopted, it is still granted a safe haven within the rescue shelter for life.

Learn more about how Hooves & Paws is changing animals lives by contacting them at (661) 944-3740 or info@hoovesandpaws.org

Lori Einhorn

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Despite Inventory Shortage, Pending Sales in January Rose

By: Lori Einhorn

The shortage in inventory has not stopped a rise in pending sales during the month of January. Over the course of the past 21 months, pending sales have stayed above year-ago levels, a testament to the slowly recovering market. In order for this growth to continue, Lawrence Yun, Chief Economist from the National Association of Realtors states that “inventory is key”. Because the economy throughout the country has improved, job growth and affordability has also improved which in turn creates more home buyers.  This shift in supply and demand has created a seller’s market and is “why we’re experiencing the strongest price growth in more than seven years”.

With the housing inventory shortage in mind, it is logical that home sales will be lower in the coming year than in 2012 but home prices will see an uptick. According to Yun, we should see approximately 5.0 million home sales this year and a 7% gain in home prices due to the inventory shortage. Previously, the NAR had predicted the sale of 5.1 million homes in 2013 but only a 5.5 to 6.0% increase in home prices. While the sale of homes over the course of the next year will stay consistent with proposed numbers, the uptick in prices will be contingent upon housing inventory.

Lori Einhorn

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