1.  See your new home through your little one’s eyes: what would looks interesting to a baby? what can be reached from their height? It will help if you get down on your hands and knees and check for anything your baby can choke on (i.e. small decorative items, candles, toys etc) or pull on (i.e. electrical cords, cords from blinds/wallcoverings etc).

2.  To prevent electrical shocks, cover easy to reach outlets with a child-resistant cover available at baby stores and hardware stores.

3.  Place barriers around heat sources like radiators and fireplaces.

4.  Install safety gates (hardware mounted is best) at the top and bottom of stairs that have >2 steps. Pressure-mounted models are available but may not be good enough to hold.

5.  Pad sharp edges of furniture such as coffee tables Avoid heavy furniture tipping over by anchoring them to the wall.

6.  To prevent baby from falling out of open windows, have window guards on all windows.

7.  Keep all emergency numbers (poison control, Dr, hospital) near phones or on autodial on your cell.

My initial impression of the homes:  they looked like detached townhomes– with little distance between your home and the neighbors.  They have a relatively small footprint and lot sizes vary from 3,500 sq ft with an average lot size of around 4,100 sq ft.  So bottom line is these are a cross between a detached townhome and a detached home with some of the benefits and disadvantages of both.

The first model I looked at was Plan 1A.  This plan is a 3BR/3.5 Bath, approximately 1,989 sq ft, with three levels.   I was surprised with the efficient use of space and the modern floorplan.  After my 2nd flight of stairs I realized what made this floorplan and the SolTerra concept unique: The 3rd floor was the 3rd bedroom or an optional loft.  It was a perfect setup for those of that work from home and typically use a 3rd bedroom for a home office or work area.  If you can tolerate the two flights of stairs this could be a great option for you.  This floorplan and the other two floorplans have 3 elevations or exterior designs: Spanish  A, Tuscan B, or Monterey Ranch  C.  Prices on the list as of this blog for this floorplan started at $594,990.

Plan 2CR had a similar feel to 1A–although it felt more spacious with a larger master bath, and a laundry room instead of a laundry closet.  This floorplan is around 2.105 sq ft and includes a spacious  loft on the 3rd level, that can be split to include an optional 4th bedroom. 

Plan 3BX is the largest of the floorplans and doesn’t have a third floor.  It seems more like a modern, conventional detached home with less of the townhome feel. Plan 3BX is around 2,196 sq ft, and has 4BR’s/3BA’s.   One of the great features  is a 4th bedroom on the entry level.

SolTerra is part of the La Costa Greens subdivision and so with the HOA fees you also receive full access to the Presidio, their private club with a well equipped  clubhouse, swimming pool, tennis courts and hiking trails nearby. 

Acceptance:  the date when both parties, seller and buyer, have agreed to and completed signing and/or initialing the contract.

Adjustable Rate Mortgage:  a mortgage that permits the lender to adjust the mortgage’s interest rate periodically on the basis of changes in a specified index. Interest rates may move up or down, as market conditions change.

Amortized Loan:  a loan that is paid in equal installments during its term.

Appraisal:  an estimate of real estate value, usually issued to standards of FHA, VA and FHMA.  Recent comparable sales in the neighborhood is the most important factor in determining value.

Appreciation:  an increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

Assumable Mortgage:  purchaser takes ownership to real estate encumbered by an existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the mortgage.

Bill of Sale:  document used to transfer title (ownership) of PERSONAL property.

Cloud on Title:  any condition that affects the clear title to real property.

Comparable Market Analyses:  process that is typically done by a real estate agent to determine a fair market value for your home by finding similar properties that have sold within a reasonable time period.

Consideration:  anything of value to induce another to enter into a contract, i.e., money, services, a promise.

Contingent/Contingencies:   is a provision in a real estate contract that specifies the contract would cease to exist upon the occurrence of a certain event.

Contingent Status:  A property is in contingent status if any one of the following takes place 1)  Offer accepted contingent on court approval 2) Offer(s) accepted pending lender approval of Short Sale 3) Offer(s) submitted awaiting bank approval 4) Offer accepted with first right of refusal.

Deed:  a written instrument, which when properly executed and delivered, conveys title to real property.

Discount Points:  a loan fee charged by a lender of FHA, VA or conventional loans to increase the yield on the investment.  One point = 1% of the loan amount.

Easement:  the right to use the land of another.

Encumbrance:  anything that burdens (limits) the title to property, such as a lien, easement, or restriction of any kind.

Equity:  the value of real estate over and above the liens against it.  It is obtained by subtracting the total liens from the value.

Escrow Payment:  that portion of a mortgagor’s monthly payment held in trust by the lender to pay for taxes, hazard insurance and other items as they become due.

Fannie Mae:  nickname for Federal National Mortgage Corporation (FNMA), a tax-paying corporation created by congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional loans.

Federal Housing Administration (FHA):  an agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

FHA Insured Mortgage:  a mortgage under which the Federal Housing Administration insures loans made, according to its regulations.

Fixed Rate Mortgage:  a loan that fixes the interest rate at a prescribed rate for the duration of the loan.

Foreclosure:  procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default.

Freddie Mac:  nickname for Federal Home Loan Mortgage Corporation (FHLMC), a federally controlled and operated corporation to support the secondary mortgage market.  It purchases and sells residential conventional home mortgages.

Graduated Payment Mortgage:  any loan where the borrower pays a portion of the interest due each month during the first few years of the loan.  The payment increases gradually during the first few years to the amount necessary to fully amortize the loan during its life.

Lease Purchase Agreement:  buyer makes a deposit for future purchases of a property with the right to lease property in the interim.

Lease with Option:  a contract, which gives one the right to lease property at a certain sum with the option to purchase at a future date.

Real Estate Glossary (continued)

Loan to Value Ratio (LTV):  the ratio of the mortgage loan principal (amount borrowed) to the property’s appraised value (selling price).  Example – on a $100,000 home, with a mortgage loan principal of $80,000 the loan to value ratio is 80%.

Mortgage:  a legal document that pledges a property to the lender as security for payment of a debt.

Mortgage Insurance Premium (MIP):  the amount paid by a mortgagor for mortgage insurance.  This insurance protects the investor from possible loss in the event of a borrower’s default on a loan.

Note:  a written promise to pay a certain amount of money.

Origination Fee:  a fee paid to a lender for services provided when granting a loan, usually a percentage of the face amount of the loan.

Pending Status:  Listings with accepted offers that have not closed escrow yet.

Private Mortgage Insurance (PMI):  see Mortgage Insurance Premium.

Second Mortgage / Second Deed of Trust / Junior Mortgage / Junior Lien:  an additional loan imposed on a property with a first mortgage.  Generally, a higher interest rate and shorter term than a “first” mortgage.

Settlement Statement (HUD-1):  a financial statement rendered to the buyer and seller at the time of transfer of ownership, giving an account of all funds received or expended.

Severalty Ownership:  ownership by one person only.  Sole ownership.

Tenancy In Common:  ownership by two or more persons who hold an undivided interest without right of survivorship.  (In event of the death of one owner, his/her share will pass to his/her heirs.

Title Insurance:  an insurance policy that protects the insured (buyer or lender) against loss arising from defects in the title.

40 Actives (including short sales)
53 Pending
47 Contingent (Properties with an accepted offer from the seller that are awaiting lender approval or bank owned that still have paperwork that needs to be completed.)

Now this is for under $400k in 92056 Oceanside.  The numbers get scarier when I go to $250k.

What does this mean to a person who is in the market for a home is San Diego?  It means don’t focus on what the media is saying about San Diego County.  Focus on your micro market.  Work with a buyer’s agent that can supply you with data that is relevant to the city or even subdivision that is of interest to you.  You may find out that it may be worth making certain sacrifices to be in a location that can endure and withstand our current market, and rise above the rest when the tides turn.

As many “lemon” cars are out there, there are “lemon” homes out there too.  One of the most important tenets of caveat emptor (buyer beware) is to have an expert on your side and in real estate, that expert would be a home inspector. 

Not any home inspector will do however– you need a superstar home inspector.

What makes a superstar home inspector?

Make sure that the inspector you select is a full time inspector that performs at least 250 inspections a year.  Your inspector should also have a professional background beyond just inspecting homes.  Some of the best inspectors have previous training as general contractors, engineers or in architecture.  This additional knowledge and continuing education on the various systems of a home is what contributes to them being a home inspection superstar.  Ask them what they actively do to keep up to date with their industry.  Certifications (ex California Real Estate Inspection Association) will require the inspector to take ongoing courses to hone their skills so they are in the forefront of their industry. 

How to find a superstar home inspector?

The best way to find a great home inspector is to ask your real estate agent which inspector their clients have had the best experience with.  Personally call the inspector and start asking some of the questions listed in this article.  Communication is equally important as a good inspection.  They must have the ability to explain their report in layman’s terms so you understand what requires immediate action and what may not.  There may be issues that sound like deal breakers which can easily be repaired or negotiated to have the seller repair.  There is a misconception by buyers that there is a pass or fail on an inspection.  In actuality, the inspector’s job is to convey their findings–  not to give a recommendation on whether to make the purchase.   Rarely are there items that can’t be remedied by requesting repairs.  The most important factor is that you have excellent representation that can negotiate the requests for repairs that are required to make you comfortable about your home purchase.  The price you pay for a home usually dictates the amount of negotiating you can do to bring your home to showroom condition.  If you pay fair market value for a home, you can expect the seller to be more cooperative than a bank owned foreclosure that is priced to be sold as is.

When should you hire a superstar inspector?

The answer is on any real estate purchase you make.  Regardless of the age of the home or if the home is new construction, you should always get a home inspection.  One of the first steps of the escrow process is to get the inspector out there as soon as possible.  The bottom line is that the home inspection is the smallest monetary investments you will make in ensuring you have peace of mind in the quality of your home.  In addition to finding what problems the home may have, you will also find out the positive aspects as well.  A great inspector will educate you in how to properly use your home.  They will show you how to shut off your water, how your electrical panel works, where your meters are located, and preventative measures you can make to keep your new investment in tip top condition.

One of the initial decisions you will need to make is how you will be moving. Would it make more sense to rent a truck and move yourself or find a company to do it for you? Moving companies are well known for taking advantage of consumers, so do a lot of research before employing one. Be very careful, this is one of the most crucial steps of your move and one of the easiest ways to be taken advantage of. Beware of moving companies that you have never heard of that contact you through the Internet. Instead talk to your friends and colleagues about whom they have had a good move with on a previous move. For additional info on what you need to know about moving companies and common scams go to www.movingscam.com.

You may want to shop around in advance for the best rates and specials if you’ve decided to move on your own. There is a possibility you can save some money if you have your own packing supplies and moving equipment. A lot of the truck rental companies may have low rates for their trucks, but high rates for moving and packing supplies. It would be a good idea to have at least a hand truck or dolly, furniture blankets and rope or straps you can lock down. Look over the truck to make sure it is in good condition before making your move.

One of the best times to consolidate your belongings is during a move. You may find you have one vacuum cleaner too many or an extra Betamax machine. Contact a charity to arrange for a pick up or a drop off of these items. Make sure to file the receipts of the donations for tax time. The other fun family alternative is to have a garage sale.

Keep the list of addresses and phone numbers you will need for your move close by and not packed away. It is a good idea to get in touch with your utility companies to transfer or turn off services, your home insurance provider, and the post office to forward old mail at this time.

It’s time to leave! Moving day is usually spent at home. You will need to oversee the work of the moving company, so don’t leave while they’re present. When they have done their job they are required to present you with a bill of lading. The drivers should have a means of contacting you, so leave them a phone number. Before you leave for the last time, make sure all of the widows are closed and doors are locked. Wave to all of your neighbors and give them any unwanted unpacked items as a parting gift. Relax and think about the end of the journey.

You could be a doctor, a CFO or even a rock legend, but the most important title you hold may be the title of your home.  A lot of buyers and sellers consider title insurance a necessary evil in purchasing property, but in addition to your health, auto, life, pet, dental, vision, boat, cell phone and motorcycle insurance, it is another policy that you must have.  A title insurance policy protects a home owner or property owner from liability due to problems with the owner’s title.  These may include liens, encumbrances or validity of the related search.  It is also required anytime there is a loan on a property.  The lender will not fund without the assurance of clear title.

I sat down with Mark Boeh of Fidelity National Title Company to ask him a few questions about the title insurance business.  Mark has been working in the title insurance business since 1984, and he has seen a lot of changes recently that are directly correlated with the current state of the market.  “This market is a lot more challenging than it has been in the past, mostly due to the amount of distressed property that we are seeing.  With distressed property there is an inordinate amount of liens and defaults than we would see from a conventional purchase,” said Boeh.  Distressed properties (like bank owned foreclosures and short sales) comprise a significant portion of transactions in this market. This presents a larger risk to the home buyer because previous sellers may have been delinquent in paying property taxes, and other bills which may impose liens on the property.  Mark continued by saying,” The primary job of your title insurer is not necessarily just putting together an adequate policy for you, it is disclosure.  Before you purchase a home a title insurance company will present you with their research from their title search.  A title search includes investigating public records from the County Recorder, Federal and State Agencies, and local County and City offices.  From this information we derive a Preliminary Report, which is given to the home buyer to review before purchase.” 

Being a North County and Carlsbad real estate agent , I’ve experienced Mark’s expertise first hand. He has assisted many of my buyers in reviewing and interpreting these documents.  The PR (Preliminary Report) is essential for the home buyer to review, so they know 1) just what they are buying, 2) they obtain assurance that they will hold clear title if they move forward with the transaction, and 3) if there are any issues that must be remedied before the property closes.

As a home buyer in a transaction you need to be aware of who your title insurance company will be.  It is your right as a home buyer to negotiate who will be providing you with this service.  I asked Mark what are some of the things to look for when selecting a title insurance company.  He stated, “You want to look at the company’s track record, and financial strength.  Also you want to make sure they have a local presence and have experience working with your type of transaction.”

There also have been legislative changes in title insurance with the implementation of Senate Bill 133 (aka SB 133) which took effect January 1, 2009.  Last year, if I was having lunch with Mark like I’m today, he would probably be “footing the bill”.  Today I will have to pay for my $9 lunch without his assistance.  The reason is SB 133 regulates the title insurance business by not allowing representatives to “buy their business”, which was intended to create a level playing field in title insurance sales.  The title insurance business now requires a license, and is governed by the California department of insurance.

As you can see, title insurance is not something that should be overlooked.  It is probably one of the most critical aspects of the real estate transaction.  Remember to use your title company as a resource to ensure that you have peace of mind when buying a property.

You may be a first time home buyer or you could have bought and sold many homes throughout your lifetime.  Regardless of your experience as a homebuyer, you need to be aware of the top 10 essential tips when you’re buying a property.

1.    Buyer’s Agent – Find an agent that is experienced in working with buyers like you.  If you’re a first time home buyer there are loan programs and tax incentives that the agent can introduce to you.  Also you may not understand the nuances of buying a home and will require additional explanation of the process and “hand holding”.  Investors will need a buyer’s agent that is familiar with real estate trends and income potential.

2.    Lender – Find a loan officer and lender you are comfortable with and you can trust.  Be aware that if it sounds too good to be true than read the fine print.  If you are comfortable working with a lender but you find a better rate elsewhere, give the lender the opportunity to match the best terms and rate.  Make sure your lender gives you a good faith estimate or GFE that includes factors such as property taxes, local area assessments, home owner association fees and community fees if they apply.  If a rate is substantially lower than the competition, the lender is most likely charging you points or additional fees to lower the rate. 

3.    Location – You can change a home but you can’t change it’s location.  First time home buyers are often enticed to buy a larger nicer home in a less desirable location.  Take into consideration your lifestyle and the benefits of being close to amenities.  An hour commute may not be worth it to have a granite countertop. 

4.    Trust your gut – If you walk into a home and it doesn’t feel right there’s a reason, it’s not the right home for you.  Make sure your house or condo feels like home.

5.    Disclosures – You must read all of the disclosures that are provided by the seller.  If you don’t understand something or it’s ambiguous, than get an explanation.  Disclosures are not be taken lightly, they are the number one reason for real estate related law suites.

6.    Understand your market – Like any big purchase you need to do your research.  Knowledge is power in real estate, and each local market can be very different.  If you’re relocating in to a different market than have an understanding what your purchasing power is.  Your dollar will go a lot further in purchasing a home in Fort Knox, Kentucky than in San Francisco, California.

7.    Due diligence – This simply means you must investigate every aspect of the property that is of importance to you now and down the road.  A seller is obligated to disclose everything that they know, but what about the issues they aren’t aware of.  For example, if the crime rate is important to you than contact local law enforcement to get crime stats.  If you’re concerned about the schools, than research the specific schools in the neighborhoods you’re interested in.  Use your buyer’s agent to help facilitate this process.  You may want to also check with your insurance agency to make sure your prospective home is insurable before you close.  There are reports you can order called CLUE reports (Comprehensive Loss Underwriting Exchange) at a minimal cost that will show all insurance claims over a specified period of time.

8.    Negotiate intelligently – When you understand your market it helps you significantly in the negotiation process.  Ask your agent for comparable sales in the area so you have a reference point for what a good deal is.  If you get 10 percent off a home that is 20 percent over priced it’s not a very good deal, but if you pay list on a home that is priced 10% under market value than you’ve done well.

9.    Home inspection – Always get a home inspection by a reputable professional.  No exceptions!  It doesn’t matter if it’s a bank owned home, short sale, new construction or resale.  Get a home inspection.  Once you have had an inspection than evaluate whether you are willing to do the repairs, you want the seller to do the repairs or if it is beyond repair and you need to look for a new home.

10.                     Home warranty – People tend to associate home warranties with new homes.  You can get a home warranty for practically any home.  They are well worth the small investment and you may be able to negotiate this item in your offer so you can have the seller to pay for it.  There’s nothing like having peace of mind when you move into a new home.

Most importantly you want to make sure that you are working with services that have your best interest in mind.  That way your agent, your loan officer, your title officer, your inspector, and escrow officer (depending on your state) are all working for you to make sure you make a sound purchase that you are happy with.  Buying a home needs to be an exciting and positive experience so make sure you have the right team working for you  so you can minimize the headaches.

Let’s start off our day with a stroll on the beach.  Carlsbad state beach’s main attraction to the locals is that they’re usually isn’t the hustle and bustle you experience at a lot of the beaches in San Diego County.  It’s common to find free parking and plenty of room to relax in the sun.  Another great feature is a convenient walkway that makes for a great jog or walk along the coast while enjoying the fantastic ocean view and refreshing ocean breezes.  Regardless of whether you’re there for the surf, the sun or exercise, there is no better way to start your day with the sound of the crashing waves and the occasional sighting of a dolphin’s dorsal fin making a majestic pinwheel in the Pacific blue.

Walking on the beach can work up a thirst and an appetite.  Carlsbad has a lot of choices when it comes to dining, from great sushi to pizza.  There aren’t many restaurants in Carlsbad that represent the city better than Pizza Port on Carlsbad Village Drive.  If you’re just there for the handmade California style pizza, that’s okay, but there is something equally as special about this establishment…the beer.  Carlsbad Pizza Port was awarded the best large brewpub and large brewpub brewer of the year for 2009.  The award wasn’t for San Diego or California, it was for all of North America!  So enjoy a slice and if you’re 21 or older try a craft Port beer.

Now it’s time for the kids to have fun.  Tucked away in the city of Carlsbad is Legoland, a great place to spend the day with the family.  It’s the only Legoland outside of Europe and it hosts a variety of rides and Lego exhibits.  Where else can you visit Miniland USA with over 40 million Lego pieces making up dioramas of the Eiffel Tower, the Las Vegas Strip, and the White House.  With the new addition of the Sea Life Aquarium it’s sure to be a hit for the family and the adults as well.

It’s time to unwind with a stroll on the nature trail of the Batiquitos Lagoon.  With multiple access locations in the Aviara area it is easy to find parking and take a stroll, a jog or a run on this well maintained 2 mile nature trail.  This is one of my favorite places to see the vibrant colors of the Carlsbad sunset and witness the birds, plants and wildlife that the city has to offer.  A glimpse to the north will reveal the opulent grounds of the Aviara Four Seasons Resort and Spa, the Aviara Golf Club and some amazing ocean view Carlsbad homes.

The city of Carlsbad has the best of both worlds.  Easy access to the city of San Diego and Los Angeles to experience the action the city has to offer and a laid back beach town that is a great place to relax and enjoy the Southern California vibe.  With 40% of its land set aside for open space, Carlsbad should remain over time one of the sought after locations to visit and to live in coastal California.