Tony Cannon

Does Google have a monopoly on search engines? I think RealtyTrac may be the best known and possibly provide the information in a better format than others. - Thu Jul 3 2008, 22:08

Hi Jose,

If there is a loan, normally two title insurances are present when purchasing a property: one paid by the seller, sometimes called a "homeowner's policy", and the second is a lenders policy paid for by the buyer. Who pays for the title insurance is a negotiable item in the purchase contract.

While I have never encountered a title insurance claim, here's a description of title insurance:

For the property owner, it is a guarantee that they own the property free and clear of any liens other than the
ones they agreed to when they purchased the property. The most important aspect is that the party who sold the property did, in fact, own all the interest and no one else can claim that they have an interest. This protection, or promise, lasts as long as the insured party owns the property.
For the lender, it is a guarantee that it has a valid and enforceable lien (loan or deed of trust) secured by the property, that no one else other than those listed on the policy has a prior claim (or loan, etc.) and that the party to who they are making the loan does own the property being used as security for the loan. This protection remains in effect as long as the loan remains unpaid.
The existence of a lenders title policy encourages lenders such as banks, savings and loan associations, commercial banks, life insurance companies, etc., to loan money. Because they are lending other people’s money (savings or policy holder’s funds) they must be concerned with safety should the borrower not make their payments.
The title company insures that the title to the property is marketable in the event of foreclosure and the
guarantee is backed by the integrity and solvency of the title company. Of course, this benefits everyone—from the single family homeowner to the owner of a high rise building.
Before issuing a policy of title insurance, the title company must review the numerous public records concerning the property being sold or financed. This information is available to anyone who has the time and patience to spend at the county recorder’s office going through the hundreds of thousands of recorded documents. This review, or title search, will determine who owns the property, if any property taxes need to be paid, how many outstanding loans were taken out on the property, what utility companies, if any, have a right to use a portion of the property for phone, gas, electrical or water lines (known as easements), what a homeowner is and is not allowed to do with their property by reason of certain Conditions, Covenants and Restrictions (CC & R’s), and if anyone else has a possible interest in the property.
The purpose of this title search is to clear up all problems before the new owner takes title or the lender
loans money. This is known as RISK ELIMINATION versus RISK ASSUMPTION (taking on liability based on what happens in the future). Examples of the latter are car, health and life insurance. Each of these types of insurance charge on-going fees for coverage and base their coverage on what may happen in the future. Title insurance, on the other hand, takes on coverage based on what has already happened and charges a one-time fee at the time the property is purchased or refinanced. While some may feel this is just another “garbage fee”, it is pretty reasonable considering one’s policy could last a lifetime. Once a policy of title insurance is issued, the title company will pay for the costs and legal expenses associated with any valid claim presented to the company. Without the policy, the homeowner or lender or builder—whoever would have benefited by having a policy of title insurance—would have to cover all costs on their own.
Title insurance isn’t just for a homeowner. Subdividers need it when they are planning a new tract of homes or a commercial strip center. Attorneys use it for clients who are investing in shopping centers, hotels, high rise office structures, hospitals, and countless other projects. Builders need it in order to obtain construction loans from their lender. Everyone wants to have peace of mind when making a large investment of their hard earned money. Title insurance companies help protect this important investment, no matter how large or small, with its own reputation and financial strength. - Wed Jul 2 2008, 10:37

Of course if you are a novice buyer, you should consider getting a buyer's agent to help you with accurate valuations of a property as well as all the other details that go into buying a home. A buyer's agent doesn't cost you anything, so there's really no reason not to have one!

Without knowing a bit more about the home and actually seeing it, giving the fair price based on your data will be somewhat inaccurate. For example,

1. Is there a view?
2. Is it a corner lot or backing up to a busy street?
3. If the home is now 30 years old, how many updates have been done, or what is in need of repair
4. Is the lot level or sloped?
5. Is it a short sale, REO, or non-distressed seller? This may determine whether it is an as-is sale and whether you may be expected to pay some of the typical seller closing costs.

However, I think I know the home you are referring to. While there were no other recent similar sales right in that neighborhood, there were some sales further south of comparabel homes. In general, those homes closer to Encinitas will have a premium because of the better school district. Please click the following link for a rough market analysis.

http://tempo5.sandicor.com/Pub/EmailView.asp?r=67560811&s=SN…

And to help you out with more than just a CMA, please give me a call.

Sincerely,
Tony - Mon Jun 23 2008, 13:41

As a first time home buyer, the process of buying an home can seem overwhelming, or it could be very simple depending on the experience and personality of your agent and other parties involved in the home you end up buying. No matter what, expect a lot of paperwork and a few key decisions to make.

As Maria said, each agent works differently based on their personality and business style. As a buyer, you should interview your agent to see if you are a good fit, and so expectations of each other can be set appropriately. Good questions to ask are:

1. How long have you been selling real estate?
2. Do you work with buyers, sellers, or both?
3. Are you a full time agent?
4. Are you a Realtor?
5. How many homes do you sell a year?
6. Are you independent or part of a team? If you are part of a team, who will I be dealing with throughout the home buying experience?
7. How many homes have you sold in the area I am considering buying?
8. Do you charge me any fees for your service?
9. How do you prefer to communicate: phone, email, or in person?
10. Do you have any past clients I can ask about your services?

I'm sure there's lots more you can ask, but if you start with these, you will have done more than most buyers do in choosing someone to help them in one of the most important purchases in their life.

Sincerely,
Tony - Wed Jun 18 2008, 11:31

Hi Cali,

At La Costa Ridge, the KB Homes have not been selling well, but the Davidson has. I think it is more about meeting the needs of the consumer, and Davidson may have done a better job. Since La Costa Ridge is not old enough to have many resales yet, the builders there are mostly competing against other new home communities. With many incentives being offered that don't show up in the sales price, it is hard to say what the net change in pricing is. My guess is net prices may be going down a little, but not much...maybe 5% over a year.

La Costa Greens still has some homes being built, as well as some resales. And some of those resales are short sales, or maybe even a few foreclosures. So pricing there may drop more than La Costa Ridge, but I wouldn't expect more than 10% over the next year. Plus the homes with big lots, view lots, or golf course proximity will probably hold their value better than others.

La Costa Oaks and Bressi Ranch seem to be in more trouble than the other two due to people buying a few years ago at the height of the market and with aggressive loan types. Plus most of the homes are very large with small lots, a mix which seems to be losing favor these days. - Sat Jun 14 2008, 10:19