Escrows

Most people are not involved in real estate transactions very often.  So, most people do not understand all the procedures involved in buying and selling real estate.  The term “escrow” is used routinely when discussing almost any real estate transaction.  Escrow is generally defined as an independent third party holding money on behalf of transacting parties.  In real estate transactions escrow involves much more.

When you find a home that you wish to purchase your Realtor will prepare a written offer to present to the seller.  When the offer is accepted, or ratified, you have a contract and an escrow is opened.  In our area this function is performed routinely by title companies.  Your deposit(s) will be held in escrow for the duration of the escrow period and the escrow officer will begin to interact with Realtors, your lender, your insurance company and governmental agencies.  They will order a title report and verify that the seller has clear title to the property that can be conveyed to you at the closing.

During the escrow period the terms of your contract will be followed as escrow instructions. These instructions always involve the division of financial responsibilities between the buyer and seller.  Escrow will calculate the dollar amounts that each party is responsible for and account for them on a closing statement.  There are usually expenses that have to be pro-rated for buyers and sellers.  Property taxes, interest payments and rents usually require prorations.  Other expenses such as title insurance fees, escrow fees, recording fees, home warranties and transfer taxes are charged to the appropriate party and recorded on the estimated closing statement.

Becoming familiar with a closing statement in advance can help relieve some of the anxiety and stress related to your real estate transaction.  Your Realtor can prepare one with you so that you are able to know in advance what all of your financial responsibilities will be.

The escrow period will continue until the day of closing when your purchase is recorded with the County Recorder, at which time the escrow will close.  At this point the escrow will provide your funds to the seller and you will receive the deed to the property.  

This article was published in the San Francisco Examiner.

Articles are written by Eric Ruxton and Larry Aikins, owners of Terrace Realty, Inc. and Terrace Associates, Inc. in Redwood City. Terrace has been in business more than 55 years and in addition to being an independent Brokerage Company, also owns and operates rental properties.

First Impressions

First impressions are everything. When preparing to sell your home, good curb appeal is invaluable. Everybody has heard the term "curb appeal," but what exactly does it mean?

When you drive down any residential street, take the time to quickly analyze the appearance of the homes. There will always be some that stand out, appearing much more attractive than others, and often there will be one or two that really look inferior. Usually the exterior appearance of a home provides a good indicator of what you will find on the inside.

Most people unconsciously make quick judgements. usually you are either attracted to a property, or you think to yourself, "Gosh, who would wan to live there?" Prospective buyers usually try to envision themselves living in the home they are viewing. Working on your home's curb appeal can greatly increase your home's desirability and value.

Homeowner associations within a Common Investment Development routinely work on improving the appearance of their whole neighbourhood. Not only does this provide the owners with satisfaction, but it can greatly improve the value of each home.  

There is no question that a fresh coat of paint probably does the most to enhance a property for the least amount of money. The colors you choose can be very important. Drive through nice neighborhoods and see which homes really stand out. These homes can provide you with color combination ideas. You might consider using three separate colors to accent certain details; for example, think about using an overall beige color for the home, paint window ledges  and trim a white color, and finally use a third darker color to bring out the front door and shutters.  Many paint companies provide brochures with recommended color combinations. 

You should also take a hard look at your landscaping. Well maintained lawns, shrubs, and flower beds can make a huge difference. Improving your landscaping by cutting back bushes and planting attractive flowers can do wonders. Having a clean, well-kept year is crucial. 

You might also consider updating doors and windows. There is nothing like a beautiful front door with designer glass insets to set a home apart. New dual-pane windows are excellent energy savers and can provide an updated look to your home. Shutters can often add charm and appeal to the outside appearance of certain styles of homes. Pay attention to detail. Look carefully at homes that really stand out. Then select ideas for your home from the mast attractive examples you find. 

Why wait until your thinking of selling your home to make these improvements? Do it now and enjoy them for yourself. You never get a second chance at making a good first impression.

This article was published on Sunday, March 29th of 2015 in the San Francisco Examiner.

Articles are written by Eric Ruxton and Larry Aikins, owners of Terrace Realty, Inc. and Terrace Associates, Inc. in Redwood City. Terrace has been in business more than 55 years and in addition to being an independent Brokerage Company, also owns and operates rental properties.

Income-Earning Real Estate

       Throughout history, real estate investments have been reserved for the wealthy, since it has always been considered that successful real estate investment involves great sums of money. Certainly we are talking about large sums of money in the asset value of any real estate investment. However, like the family home, it does not require huge sums of equity money to buy. All financial institutions, as well as private sources, are readily prepared to assist with financing. Lending institutions will lend more money on real estate than any other commodity. Other people's money is always available to use when we want to buy real estate.

          Over the years, there has been talk of real estate booms and recessions. We are in a boom market now on the Peninsula. Income-producing real estate, like all forms of investments, has its ups and downs. However, if you look at the long term, real estate just keeps increasing over the years. More in some areas than others. Many investors say they do not know if they prefer booms or recession markets in real estate because there is money to be made in both. It is always a good time to invest. In recessions, prices are down and financing can sometimes be easier to obtain with excellent terms because of reduced demand. In boom times, the investor cannot lose because of fast-rising appreciation.

          Inflation is one of the primary reasons real estate prices increase, but there are many reasons why property values grow. In our opinion, four essential factors need to be considered when looking for an investment for its future capital appreciation. One simple adage is that there are only three factors; location, location, location. This is true, but it is also an oversimplification. The four essential factors are; scarcity, inflation, improvement, and higher use.

           On the Peninsula we are going through a period of strong rental demand and a limited supply of available rentals. The result is dramatically increased rental rates and, consequently, increased property values.

           In addition, the very limited supply of available investment properties has resulted in very strong upward pressure on prices. And it appears that this trend will continue for the foreseeable future. 

           When are you going to start to build personal wealth and financial security? Everyone has to start somewhere. The personal home comes first, then income-producing property. With the proper guidance and negotiating skills of a real estate professional, you should start now or add to your existing real estate investment portfolio.   

This article was published on Sunday, May 10th of 2015 in the San Francisco Examiner.

Articles are written by Eric Ruxton and Larry Aikins, owners of Terrace Realty, Inc. and Terrace Associates, Inc. in Redwood City. Terrace has been in business more than 55 years and in addition to being an independent Brokerage Company, also owns and operates rental properties.