by arlene on July 27, 2017
Dear Neighbors and Friends,
It’s easy to forget that in fact every year, even during very active markets, real estate experiences seasonality. There is a significant difference in behavior between the early spring with its characteristic very low inventory, and the summer, when generally buyers have more choices, and more fatigue. You would think that as agents we would become immune to these shifts in behavior. But no, as we experience our annual summer slow-down, some amount of worrying sets in. Could this be the beginning of a real market change? Did we hit the top of the market and are beginning some decline? Probably not; I wrote about almost the same topic last year in this newsletter, and probably have for many summers. What we know is this: the basic economic factors of limited supply and high demand are still in play. And unless there’s a significant and long-term negative economic event, the wiggling we experience in the summer months is probably normal.
Make no mistake: it’s still unnerving, especially for sellers! Last month I had a lovely, updated condo in the hottest location possible: Rockridge. A combination of Fathers’ Day, a heat wave, and the Warriors’ Parade converged, and during the time that terrific condo was on the market it felt like a shift was occurring. Open houses were mostly sparsely attended, and I was hearing about the same situation at other properties. I did extra advertising, and fretted. I’m pleased to say that we received three offers, and the result was excellent and my seller is delighted. Listed at $705,000, it just closed at $803,000. Will I, and other agents, remember next year at this time that some summer sluggishness is normal? Check-in next year!
by arlene on January 11, 2017
California now leads the nation with standards that could save over 10 billion gallons of water in the first year and eventually over 100 billion gallons of water per year according to the California Energy Commission.
Effective January 1, 2017, new water conservation regulations 
took effect for interior water fixtures in almost all single family residential properties. Here’s what you need to know:
Background: In 1992, the California Legislature passed SB–1224. This senate bill imposed water conservation standards on all toilets and urinals installed in all single family residential homes, multi–family residential properties, and commercial properties. Subsequently in 2009, with California’s on–going drought, the Legislature passed SB–407, extending the toilet and urinal standards to all properties and further added shower and faucet standards. Those standards are:
- Toilets – no more than 1.6 gal/flush
- Urinals – no more than 1.0 gal/flush
- Showers – no more than 2.5 gal/min
- Internal Faucets – no more than 2.2 gal/min
Compliance Deadlines: The lawmakers appreciated that complying with these standards could cause some economic hardship if retrofit was immediately required, so a schedule of compliance was established:
- By January 1, 2017, all single family residences must be in compliance; and
- By January 1, 2019, all multi–family and commercial properties must be in compliance.
In addition, if any such properties were being substantially improved or refinanced prior to the compliance deadline, compliance must occur at the time of improvement or refinance.
Disclosure Obligations: The law requires that any Seller must disclose to any Buyer whether or not the property is compliant with the water conservation law. This is, in part, already referenced in a key disclosure form, the California Real Estate Transfer Disclosure Statement (“TDS”) and non–compliance would have to be disclosed on the Seller Property Questionnaire (“SPQ”). While the law does not impose this disclosure obligation on real estate agents, the prudent agent should inquire whether or not a property is in compliance since it is possible that a Seller might not be aware of the law.
Non–Compliance Penalties: Currently, there are no state–wide monetary sanctions set forth in the law for non–compliance. However, local governments and water agencies have the authority to impose additional regulations which could include non–compliance penalties. Further, non–disclosing Sellers would reasonably be liable to Buyers for the costs of compliance. It will be interesting to see whether effective means of compliance will emerge.
