Lela Hankins, CDPE, CRS, e-PRO, GRI

I never fail to learn something when I attend my local Toastmasters meeting. We had two great speakers today at our meeting in San Marcos, California. The first had us practice our laughing skills in various forms. I didn't know there were so many defined types of laughter -- such as the belly laugh, the courtesy laugh, the hyena laugh, the snorting laugh, and many others all demonstrated by our speaker. Sue did a fabulous job of warming us up for our next speaker. Sue completed her tenth speech today qualifying her as a "Competent Communicator" in the Toastmaster realm.

Debra enlightened us about the "Cool Communities Shade Trees Program." She emphasized how much trees can save us in energy costs per year -- either by providing shade from the warm summer sun or a barrier to chilling winds in the winter. By planting trees, you can save money! Debra gave a conservative estimate of $120 per year in energy savings alone. Better yet, you if you live or work in San Diego or Orange County, you may be able to get the trees for free! The California Center for Sustainable Energy is behind this project in conjunction with San Diego Gas and Electric. For more information, click here. We all know that tree lined streets have more curb appeal to a buyer than a treeless street. So the value may be much more than the energy savings.

A few years ago, I was lucky enough to spend some time in Nebraska and had time to venture out to the Arbor Day Farm just outside of Nebraska City. It was a delightful experience to walk among tall, beautiful trees. I still remember the peace and serenity that walk gave me. I feel lucky that I live in the community of San Marcos, California that has set aside lands for recreation that will always have trees available for me and for future generations to enjoy!

Feel free to contact me about Toastmasters or life in San Diego County!

Yesterday, I attended a home inspection with my buyer. I have always felt it was important to be with my buyer through the entire home buying process. Usuallly home inspections are hum-drum, and this one certainly strarted out that way. The inspector, California Real Estate Inspection Association (CREIA) member, (and a MASTER CREIA inspector at that), said the house was turning out be be much better than I had led him to believe. I had already warned the inspector to be careful walking up the wooden front steps (they are rotten and in desperate need of replacement) and to be mindful of the roach infestation. The house is bank owned and vacant. There are lots of cosmetic issues that we already knew about. The termite fumigation and repair will take care of the dilapidated steps and the roaches.

Everything seemed to be going well until....... the inspector went in the attic. Much to everyone's surprise, the furnace flue vented into the attic! What does that mean? The products of combustion, including the toxic carbon monoxide, were being vented right to the attic space. Where should they go? The vent from the furnace should be vented outside. In this case, no hole was ever cut in the roof for the furnace flue vent to penetrate to extend the customary three feet above the roof! This house has been like this for several years! Although, it hasn't been 10 years yet, so builder defect laws may apply.

How lucky the previous families in this house never had a fire.... or as far as we know, carbon monoxide poisoning! How lucky this buyer is that he had a good inspector. My buyer has a precious family with a new baby on the way. I'm glad he had an inspector savvy enough and detailed enough to catch this. I have seen some buyers who choose the cheapest inspector and who receive, in my opinion, only a cursory home inspection. In one transaction where I represented the seller, I was aghast when the buyer's inspector told them, "Oh, I don't need to go in the attic, I can see everything I need to see in the rest of house." Thank goodness, that's not the inspector we had yesterday.

Buyer's agents, don't let your buyer skip an inspection or use an inspector who is in a hurry to get to the other three inspections he has scheduled that day. If you are a buyer, never skip having a well qualified home inspection. In this case, it was worth it's weight in gold!

Q: How are you? A: (given by a resident in a senior park)...... Super! And getting better all the time!

I stopped into the office of a senior mobile home park in San Marcos in search of answers proposed by a prospective buyer. When the staff person inquired as to the health of one of the residents who walked in, his answer was "SUPER!" He went on to explain to us that he learned long ago that however you answered that question was a self-fullfilling prophecy. How right he is! What a great answer to have up your sleeve anytime we're asked, "How are you?"

I was previewing this home for one of my buyers. It is a bank owned property in San Diego County. It seems well priced for the area and the preliminary views on the MLS didn't seem too bad. However, once we stepped onto the lot, we started to see "issues." Here are just a few we saw in just a casual walk through.

These second story French doors are right at the edge of the lower roof. If you've had too much to drink one night, you might find it is a very loooooong step down!

This closet ceiling is colorful, smelly and fuzzy. Hmmmm, I wonder if what it looks like behind the ceiling? Perhaps a grown-up science project? Perhaps a major remediation project? Definitely not a home to buy sight unseen!

Notice the phone jack just below the water heater strapping. Great place to take those calls from clients don't you think?

You did say that you wanted see-through walls didn't you? This shot from the inside of the garage allows you to enjoy glimpses of daylight between the studs. Why have a watertight building when you can have a nice view instead? By the way, the exterior of the garage is a simple plywood design.

Notice the fine, gray gravel to enhance the color of the stucco. A few multicolored paver stones are thrown in for that perfect welcoming feel into your new home!

With this casual style interior wall, you can feel comfortably at home. With wrinkles already included from the organic forces of weather, you will be insprired to throw that old iron away! Notice, too, that the wrinkles in the wall are right above the electrical switch plate. If we get a tremendous rain storm, this could certainly electrify things!

Patio covers - so what if the roofing material is, shall we say, "blowin' in the wind?"

No, that's not where I wanted the door. Patch it up and move it over there!

Just in case I can't get the doors open (yes, these are the same doors that open onto the very narrow roof), please leave me a space above the doors, so I can get some ventilation.

When considering purchasing bank owned properties, it is very important to do your homework. Especially if you are buying a home at an auction where sales are FINAL! Buying a home through regular resale channels gives you the opportunity to carefully view a home prior to making an offer, and taking time to have a professional home inspection done! Here in California, most buyers have 17 days from the time their offer is accepted to have a property fully inspected by qualified professionals. Don't skip on having an inspection on any property --- the few dollars spent up front may save you thousands down the road. Of course, never buy a property seeing it yourself first! Who knows what evil lurks behind those walls and fuzzy ceilings!

Although this property is far from stellar, I have seen some bank owned properties that appeared to be in very good condition. Still, in my humble opinion, an inspection by a qualified inspector is always warranted.

Recently, I had some out-of-area friends call me and want me to accompany them to a local real estate auction. They wanted to buy some investment real estate in our beautiful San Diego locale. I've attended auctions with clients in the past, and have a good idea what to expect.

My friends promised to send me a list of the properties that they were interested in and planned to come down the weekend before the auction to preview the homes. Can you get good deals at an auction? Absolutely! Are there steps you should take before going to the auction? Without question!

The type of auction they were considering is one where hundreds of homes are auctioned off in a day. The event takes several hours. The rooms is usually crowded with lots of people -- some are first time attendees and some are seasoned bidders.

What should a prospective bidder know before they sign up to attend an auction?

1. The atarting bid is usually NOT what a home sells for.

2. The bidder should have been inside the property they are bidding on. Ideally, you should have the property inspected by a credentialed home inspector before you start bidding. Plus, you should have a good handle on the safety of the neighborhood. Is it a neighborhood in decline? Is it one that is improving or stable? Is it one where you or your tenants will feel SAFE? If you plan to lease out the property, how easy is that area to rent? What would you expect to pay for property management?

3. A bidder must be pre-approved by an auction approved lender in advance of the auction.

4. In many auctions, the bidder pays a 5% premium above the agreed upon bid price.

5. The buyer usually has to have a cashiers check in hand for a minimum amount (sometimes $5,000) when they register onsite at the auction.

6. The buyer should know the fair market value of the property based on the condition the property is in.

7. A buyer should know that, at an auction, there is generally a slim to no right to withdraw from the sale if you find out something is wrong with the property after you have purchased it. Very few disclosures are required in an auction situation.

8. Mass auctions, like the one my friends planned to attend, should have the caveat, "BUYER BEWARE" emblazoned on all their print materials!

I've seen a lot of issues with bank owned properties, and I'll follow up with that in another blog post. Somethings to consider are what you can't see in an auction brochure photo --- what is the integrity of the roof? Have their been any hidden plumbing issues? If the landscaping hasn't been watered for 6 months, how much will it cost me to revive the yard? Is the copper piping still there? Does the air conditioner still work? What about the furnace? If there is a pool, is the equipment still usable? Have there been any insurarce claims against the property? Has there been work done without permits? Are there termites? Rats? Roaches? Dry rot on the wood?

If you have purchased a home at an auction, or had a client who has, what have been your experiences?