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Info For Sellers

What are the New Changes to Real Estate in California?

The real estate landscape has recently undergone significant changes, especially regarding the way agent compensation is handled and how listings are presented in the MLS (Multiple Listing Service). These adjustments, which took effect on August 6th, 2024, aim to bring more transparency to the real estate process but have also introduced some complexities that both sellers and buyers need to be aware of. Here's a breakdown of what these changes mean for you:

FOR SELLERS

  1. Agent Compensation:
    • Traditionally, the seller's listing included an offer to compensate the buyer's agent, which was clearly stated in the MLS. With the new rules, this compensation cannot be listed in the MLS, at least for now. However, this does not mean you, as a seller, are no longer participating in the buyer’s agent compensation. You can still choose to offer compensation, but it won’t be explicitly mentioned in the MLS.
    • In many other areas of California, the MLS now has a box indicating whether the seller is participating in the buyer's agent compensation. This allows buyers to decide whether to view properties based on the seller's participation in agent fees. Our local MLS is being urged to adopt this practice, but changes are still pending.
  2. Advertising Restrictions:
    • Another change is the restriction on advertising your willingness to compensate the buyer's agent on websites linked to the MLS. However, you can still mention this in social media posts that are not directly connected to any MLS listing.
  3. Increased Paperwork:
    • With these changes, sellers will need to sign additional forms when listing their properties. The goal is to ensure transparency, but the process has become more complex and may cause some confusion.

FOR BUYERS

  1. New Mandatory Form – BRBC:
    • As a buyer, you will now need to sign a new form called the Buyer Representation and Broker Compensation (BRBC) before you can be shown any property. This replaces the older BRE form that outlined the duties between you and your agent.
    • The BRBC form includes a section where you agree on the amount of compensation you are willing to pay your buyer’s agent. In most cases, this may be a non-issue as sellers are still likely to offer compensation.
  2. Buyer’s Agent Compensation Reference:
    • When submitting an offer, your buyer’s agent will now include a form that references the fees they expect the seller to contribute towards their compensation. This is a new requirement that has been introduced with the changes.
  3. Consultations and Clarity:
    • Given the complexities of these changes, it’s more important than ever to have a thorough consultation with your buyer’s agent. Ensure that you understand all the forms, fees, and the overall process to avoid any confusion.

WORK IN PROGRESS

As these changes are just being implemented, expect some growing pains as the industry adjusts. It’s a significant shift from how real estate transactions have traditionally been conducted, and many people, including agents, are still getting up to speed.

Our team is committed to staying informed and up-to-date with the latest developments. We’re here to help you navigate these changes smoothly and answer any questions you may have. We appreciate your patience as we all adapt to this new way of conducting real estate transactions.

If you have any concerns or need further clarification, don’t hesitate to reach out. We’re here to ensure you’re well-informed and comfortable with every step of your real estate journey.

 

From Sheri Dettman
In Buying - Info For Buyers, Buying – Info For Canadian Buyers, Info For Buyers, Info For Sellers, Info For Sellers, Real Estate Market Updates, Selling - Info For Sellers, Sheri's Palm Springs Area Blog, Uncategorized

Proposition 13 & 19 – Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire & Natural Disasters Initiative

California Proposition 13, passed by California voters in 1978, was a groundbreaking law that helped to keep property taxes under control for homeowners. The property tax caps offered by Proposition 13 affect everyone who owns real estate in California. Proposition 19 marked a significant change to Proposition 13, changing tax benefits for families, seniors, severely disabled persons, and victims of natural disasters in California.

Proposition 19 amends the California Constitution by expanding qualifications for the transfer of a property's taxable value. These changes may affect your next escrow and title transaction if eligibility requirements are met. Additional documents may be required by escrow if you plan to transfer the current taxable value of the property.

How does Proposition 19 affect property tax base transfers:

Starting April 1, 2020, Proposition 19 allows an owner of a primary residence who is over 55 years of age, severely disabled, or a victim of a wildfire or natural disaster to transfer the taxable value of the primary residence to a replacement primary residence:

  • anywhere in California;
  • purchased or newly constructed within 2 years;
  • of any value with an upward adjustment for a more expensive replacement; and
  • the property tax base can be transferred up to three times for persons over 55 years old or with severe disabilities and once for wildfire or disaster victims.

How does Proposition 19 affect inherited properties?

Starting February 16, 2021, Proposition 19 narrows the rules for parent-to-child or grandparent-to-grandchild exemption for inherited properties. The child or grandchild can transfer the taxable value of the inherited property if:

  • the property is the principal residence of the child or grandchild or is the family farm;
  • the homeowner's or disabled veteran's exemption is claimed within one year of the transfer to the child or grandchild; the property is used as the principal residence and has a market value above $1 million, in this case an upward adjustment in assessed value would occur.
Source: https://www.boe.ca.gov/prop19/ and https://assessor.lacounty.gov/about-prop-19/

Contact Sheri Dettman & Associates for more information on Proposition 19

From Sheri Dettman
In Info For Buyers, Info For Sellers, Info For Sellers, Real Estate Market Updates, Sheri's Palm Springs Area Blog

Navigating the Housing Market: Answers to Your Top 3 Questions

Clarity is crucial in the ever-evolving landscape of the housing market, especially when conflicting information abounds. Addressing the top three questions on everyone's mind, we turn to expert insights for a comprehensive understanding of the current scenario.

  1. What's Next for Mortgage Rates?
    • Mortgage rates have recently surged, prompting concerns for potential homebuyers. Historically, there's a correlation between mortgage rates and inflation. With inflation easing, the Federal Reserve has paused rate hikes, leading experts to anticipate a gradual decline in mortgage rates in 2024.
    • Aziz Sunderji, a Strategist at Home Economics, suggests, "Interest rates are likely to be lower—perhaps even lower than many optimists think—in the weeks and months to come."
  2. Where Are Home Prices Headed?
    • Contrary to fears of a market crash, data indicates a steady rise in home prices across the nation, albeit at a more sustainable pace. The Home Price Expectation Survey from Pulsenomics, involving over 100 experts, underscores confidence in continued appreciation in the coming years.
    • The consensus among experts is that home prices will keep climbing, presenting a positive outlook for the housing market.
  3. Is a Recession Around the Corner?
    • Recession concerns have been prevalent, but recent indicators provide a more optimistic perspective. The Wall Street Journal's regular polls of experts reveal a shift in sentiment, with a decreasing likelihood of a recession.
    • Over 52% of experts now believe we are not headed for another recession, marking a significant departure from earlier projections.

Conclusion:

  • The housing market, despite its dynamic nature, appears resilient. The convergence of factors such as easing inflation, sustained home price appreciation, and diminishing recession concerns paints a hopeful picture.
  • It's essential to stay informed and connected. Contact us to discuss any housing market questions or concerns and gain a clearer perspective on your real estate decisions.
From Sheri Dettman
In Info For Buyers, Info For Sellers, Info For Sellers, Real Estate Market Updates, Sheri's Palm Springs Area Blog
Palm Springs Area Homebuyers & Sellers Love Video

Palm Springs Area Homebuyers & Sellers Love Video

12,000 Video Views This Year From Around The Globe

So far this year we’ve had over 12,000 views of our exclusive Sheri Dettman & Associates real estate videos. We’ve always known that people interested in buying Palm Springs area real estate love video tours, and these recent stats seem to back that up.

After all, the desert home buying process is about much more than real estate, it’s about finding just the right Palm Springs area community and property for your lifestyle. And what better way to check out the homes and amenities available in our desert communities than HD video tours.

Video Benefits Our Homebuyers & Sellers

Sheri Dettman Narrating A Video In Our Studios

Videos benefit our buyer clients by helping them get to know our Palm Springs area golf and country clubs, and popular non-golf communities as well through our exclusive video tours. Narrated video tours of our Sheri Dettman & Associates Featured Properties for sale are a great way to tour each property from anywhere in the world.

Our Sheri Dettman & Associates home seller clients benefit by having their properties seen by more potential buyers. A top-notch Palm Springs real estate video tour should succeed in getting potential buyers excited about your home and motivate them to request a showing. If you’re considering selling your Palm Springs area property, here’s more information about Sheri Dettman & Associates video marketing.

Worldwide Real Estate Exposure

Looking at our recent video stats shows the international interest in Palm Springs area real estate. The USA leads our viewership stats followed by Canada, Taiwan, The UK, Mexico, Australia, Israel, Switzerland, Italy, Singapore, France and an amazing sixty-two other countries. Now that’s a wide audience!

Videos Handmade Fresh In-House

My husband Bill Dettman heads up our in-house video production team. We invested in production gear including a video studio with green screen, LED lighting, teleprompter, professional cameras and all the associated gear (sorry, tours of our studios are not being scheduled at this time).

Video shoots of our seller clients homes listed for sale involve a crew of three to four team members. And if you spot some refreshing ice tea or lemonade by the pool in our videos, you might be interested to know those are some of the movie props we utilize on many of our video shoots.

From Sheri Dettman
In Buying - Info For Buyers, Buying – Info For Canadian Buyers, Info For Sellers, Sheri's Palm Springs Area Blog
Palm Springs Real Estate Market Update – April 2014

Palm Springs Real Estate Market Update – April 2014

Shift In Palm Springs Area Real Estate Luxury Market

Beginning in January of 2013, we started to see another sign of a shift in our Palm Springs area real estate market. Sales of homes and luxury condos that sold for $700,000 and higher increased substantially from month to month right into the first quarter of 2014.

Record Net Worth Pushes Valley Luxury Sales Up 50%!

A record household net worth ($80 trillion) helped push luxury home sales in the Palm Springs real estate market up by 50%, while the lower end of the market seems to be held back by wage stagnation.

Let’s take a look at average selling prices in Palm Springs area golf communities where the average selling price over the last six months is above $700,000. For the larger golf communities, these stats include single-family homes only.

Golf Community / Average Sale Price / High Sale Price (last 6 months)

  • Madison Club, La Quinta: $5,266,667 / $7,100,000
  • Vintage Club, Indian Wells: $3,655,625 / $10,450,000
  • Bighorn, Palm Desert: $2,692,969 / $6,600,000
  • Hideaway, La Quinta: $2,555,411 / $4,650,000
  • Tradition, La Quinta: $2,487,708 / $3,900,000
  • Toscana, Indian Wells: $1,748,644 / $2,695,000
  • Reserve, Indian Wells: $1,715,525 / $2,480,000
  • Monte Sereno, Palm Springs: $1,355,083 / $1,447,360
  • Andalusia, La Quinta: $1,190,751 / $1,750,000
  • The Palms, La Quinta: $1,076,250 / $1,287,500
  • Mission Hills, Rancho Mirage: $946,675 / $2,250,000
  • Indian Wells Country Club: $825,000 / $933,810
  • Citrus, La Quinta: $877,969 / $1,680,000
  • Rancho La Quinta: $870,266 / $1,550,000
  • PGA West, La Quinta $840,090 / $1,625,000
  • Indian Ridge, Palm Desert: $820,625 / $1,950,000
  • Mountain View, La Quinta: $787,808 / $1,525,000

Data Source: April 22, 2014 Market Watch Real Estate seminar and Desert Area MLS.

From Sheri Dettman
In Buying - Info For Buyers, Golf Communities, Info For Sellers, Sheri's Palm Springs Area Blog
“Match.com” For Real Estate. Or How Not To Find A Realtor

“Match.com” For Real Estate. Or How Not To Find A Realtor

Waterfront Homes At Palmilla, La Quinta

Our local Palm Springs area paper today ran a story about a new Internet real estate startup. Seems Jon the founder was bummed that he didn’t have much in common to discuss while driving around with his real estate agent. Jon is into mountain biking and the agent he was working with wasn’t. Bummer!

Now I have no idea who Jon’s non-mountain biking agent was, but was Jon missing the point? Was Jon looking for someone to hang with or did he really want to find the best-qualified person to help him with what would likely be one of the largest financial transactions in his lifetime?

Palm Springs Real Estate Can Be Fun!

Now don’t get me wrong. Spending time with a boring realtor who’s not really a people person would not be enjoyable. My team and I are all people persons (as any really successful agent is), but we are also successful at combining our service and professionalism with making the buying or selling process a little fun.

So I ask this question. Should people be looking to work with a realtor base their choice upon what Jon says are mutual likes, preferences and areas of interest? Or should homebuyers and sellers look for the best-qualified agent(s) that they also enjoy working with?

Busy, Successful & Experienced Works For Me

My recommendation is to choose a Palm Springs area real estate agent that is busy, successful and experienced. Personally I choose my tax adviser, doctor and dentist the same way. And for me, our common interests include me getting the best advice, care and results possible. What do you think?

Photo: Waterfront homes at Palmilla, La Quinta

From Sheri Dettman
In Buying - Info For Buyers, Info For Sellers, Sheri's Palm Springs Area Blog
A Little Advice Before You Hire Any Agent (Including Me)

A Little Advice Before You Hire Any Agent (Including Me)

If you plan on buying or selling real estate in the future, not just here in the Palm Springs area but almost anywhere, this information could very well benefit you. First some background.

Last month I was interviewed during a one-hour segment on the local Bloomberg financial news radio outlet. The host, Ron Siegel and I talked about our local real estate market and the fact that my team and I are busy enough that we don’t have to depend on the next transaction in order to make ends meet.

Looking Out For Your Best Interests

“If a real estate agent, or any financial professional for that matter, is not busy and successful they just might need to convince a client to buy or sell with them when in fact they should really be telling you to wait.” Ron said.

Now let me say right now that I believe that most agents are looking out for the better good of their clients. But what Ron said on the show made sense; “What if an agent’s mortgage payment is coming due and they haven’t sold a property in a while? What if they really need your sale to make ends meet this month?” Ron said.

This got me to thinking about all the times that I’ve been able to advise clients not to buy or sell a property at a particular time because it really wasn’t in their best interest to act then. And I’m certainly blessed to be able to do that.

Here's How You Can Benefit

So here’s the information that I promised to share earlier that could benefit you in buying or selling your next home. It’s quite simple really. Be sure to check out each prospective agent’s references and their recent sales transactions. Ask them for a list of their sales transaction over the last twelve months.

Here in the desert, 24% of local agents did not complete a single sales transaction last year. And in the U.S., the average agent completes just seven sales transactions per year. In my opinion, it’s hard to stay on top of the Palm Springs area real estate market if you only work at it part-time. You wouldn’t be as familiar with as many communities and properties, and you certainly wouldn’t have much experience negotiating transactions on behalf of your clients.

So before you walk into that open house and buy a home from the nice agent sitting behind the desk, or list your home with an agent who is a friend of a friend, please consider doing your homework. Past results don’t guarantee future success, but what else do you have to go on?

From Sheri Dettman
In Buying - Info For Buyers, Buying – Info For Canadian Buyers, Info For Sellers, Sheri's Palm Springs Area Blog
Palm Springs Home Buyers & Sellers: Don’t Take It Personally!

Palm Springs Home Buyers & Sellers: Don’t Take It Personally!

Golf Homes At Andalusia, La Quinta

Here's a little advice for Palm Springs area homebuyers and sellers. Never take purchase negotiations personally. No property is ever sold unless there's a willing buyer and a willing seller. And getting to that point can be a dance, and sometimes it can be a little tougher. But please don't take it personally.

I do this almost everyday, and every transaction can be a bit different. Every buyer and seller has a unique personality. Some people buy and sell homes as often as cars, while others might buy or sell just a few times in their lifetime. People's situations and their reasons for buying or selling here in the Palm Springs area can also be varied.

Your Palm Springs Realtor's Job: Part Guide, Part Negotiator

Part of an agent's job is to guide their buyers or sellers through the negotiations while keeping their sanity and their cool. It's counterproductive to take anything personally. Yes, there can be some stress involved, but an agent's job is to keep their clients stress level to a minimum and to do any heavy lifting for them.

A seller receiving a low-ball offer simply needs to submit a counter offer. We're here to help guide you with that. If a buyer gets no response to their submitted offer, their agent can find out why and go from there. But if there is no offer on the table because on side or the other took it personally, then negotiations cease and both sides can lose.

Don't Hit The Panic Button Unless I Tell You To! 

After completing hundreds of client transactions, the one thing in common that I share with our clients is 'don't panic until I tell you to!'  That little 'fire' during negotiations today, or during escrow tomorrow might seem like a big deal now, but it will likely be water in the swimming pool in just a day or two!

Most Palm Springs area real estate transactions actually flow pretty smoothly. The ones that don't are a bit more work but that's my job, and my team's job, to put forth what ever is needed on our client's behalf.

Know that I work with and therefore get to know a lot of the local real estate professionals, and as such I usually know in advance which transactions will be more work than others. That's when our team rolls up our sleeves up so you don't have to. You can get ready to move, and don't forget the sunscreen!

And during negotiations, like I said, please don't take anything personally, unless I tell you to!

From Sheri Dettman
In Buying - Info For Buyers, Buying – Info For Canadian Buyers, Info For Sellers, Sheri's Palm Springs Area Blog
Qualifying Your Real Estate Agent Upfront

Qualifying Your Real Estate Agent Upfront

Working with a busy and experienced real estate agent can benefit both buyers and sellers. Top agents have the distinct advantage of having experience negotiating hundreds of transactions for clients from around the world. Top agents also visit more properties, in more communities on a regular basis thereby knowing the market and the latest market trends.

Top agents generally complete 50 or more transactions per year. But did you know that the average real estate agent completes only 12 transactions per year? And here in the Palm Springs area about 24% of agents did not complete a single transaction last year?

Show Me The Transactions

Before choosing a Palm Springs area real estate agent to represent you, consider asking them to print out a list of their transactions from the MLS for the last 12 months. You'll want to look at home many transactions the agent completed, how much those homes sold for, and where they were located. Some agents provide this information on their websites under "recent transactions."

By doing your homework before agreeing to work with an agent, you can be assured that someone billed as a 'top producer' really has the track record and experience to back the claim.

About The Author

Sheri Dettman is the principle Realtor at Sheri Dettman & Associates and is affiliated with Luxury Homes by Keller Williams International in La Quinta, California. Sheri and her team serve the Palm Springs Real Estate Market including the cities of La Quinta, Palm Desert, Indian Wells, Rancho Mirage, Indio and Palm Springs.

From Sheri Dettman
In Buying - Info For Buyers, Buying – Info For Canadian Buyers, Info For Sellers, Sheri's Palm Springs Area Blog
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