Archive for September, 2008
DON’T MOVE A MUSSEL
LOCAL GOVERNMENT, REDDING RECREATION, SHASTA COUNTY
I was approached by a game warden while launching my boat at Whiskeytown Lake recently. He was very
serious and wanted to know where my boat had been. I told him my boat has only plied the waters of Whiskeytown Lake and Shasta Lake. He seemed relieved. He gave me a decal to affix to my boat indicating it had been checked for Quagga or zebra mussels.
Just as land in California is under attack by invasive plants, our lakes and waterways are fighting a battle of their own. These aquatic hitchhikers could result in environmental and economic disaster. The Redding area is a popular tourist destination for houseboaters, anglers and water sports enthusiasts. Many travel hundreds of miles to get here and could be bringing with them these unwanted stowaways in their boats and water toys. Here’s what these little guys can do if they get a foothold:
- Cause a shift or extinction of native species
- clog water pipes
- ruin boat motors
To prevent spreading these critters, California Dept. of Fish and Game recommend:
- Inspect all exposed surfaces of your hull-they feel like sandpaper
- Wash the hull thoroughly
- Remove all plants and animal material
- Drain and dry all areas inside the boat
- Drain and dry the lower outboard unit
- Clean and dry all live-wells
- Empty and dry any buckets
- Dispose of all bait in the trash
- Wait 5 days and keep watercraft dry between launches into different fresh water bodies
San Fransisco Bay and the Sacramento River Delta have a big problem with non-native species due to cargo ships emptying ballast and bringing hitchhikers into the bay and delta. Being aware of the problem is the first step in turning this potential disaster around.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
REALTORS HAVE MORE THAN 100 TOOLS IN THEIR TOOLBOX
REAL ESTATE PRACTICE, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS, TIPS FOR SENIORS
Whether listing or selling property, some of the key tools in an agents toolbox are carefully designed and
legally accurate real estate forms. California Realtors, as a benefit for membership, are provided access to more than 100 real estate forms that cover virtually every need for listing, selling and/or leasing homes, land, mobile homes, commercial property and businesses. Many of the most commonly used forms, after listing and purchase agreements, are disclosure forms for the buyer and seller. This library is under constant revision using input from agents, attorneys and as a result of legislation signed into law.
One of my favorite meetings at the California Association of Realtors (CAR) business conference is the Forum on Forms. This large committee, seated at a long head table, introduces new forms being released, drafts under development, revisions of existing forms, then my favorite part: input from the directors in the audience.
Several dozen agents/directors line up at the microphone for the opportunity to discuss real life problems they are having in day-to-day practice using specific forms and offer suggestions for changes or new forms. Wordsmithing of draft forms is offered by attendees and the committee members take all comments under advisement. They then meet in closed session to hammer out the final language and decide what, if anything, will be done with the verbal and written comments submitted from directors.
Neil Kalin, a sharp staff attorney with CAR, frequently enlightens audience members of the legal premise for wording of specific forms being debated. I find it fascinating to listen to the reasons for the genesis of these various forms and clauses. Many evolve out of the numerous bills signed into law every year that affect real estate practice and others are a direct result of a lawsuit filed against a buyer, seller or agent.
Many real agents wish there were not so many forms. Consolidation of a few forms has happened recently. Local areas develop a standard of practice dictating which disclosure forms are in common usage. Fortunately, for the Shasta County/Greater Redding area, local agents strive to use most of the optional disclosure forms in addition to those required by law. These extra forms allow a seller to disclose material facts in a more structured and detailed format. This ultimately heads off lawsuits since 80 % of litigation centers on a seller’s failure to disclose items that affect value or desirability.
Some of the forms put into usage in this area recently include:
- Seller Property Questionnaire
- Vacant Land Questionnaire
- Agent Visual Inspection Disclosure
- Statewide Buyer and Seller Advisory
- Affadavit of Non-Foreign Status
Since these forms are distilled from input from agents in the field, they have been refined to precisely address most terms and conditions buyers and sellers desire in a contract. These forms are not available at your local office supply or bookstore. Licensed real estate agents can buy them and Realtors are provided all forms at no charge.
Today these forms are typically accessed via the Internet or in desktop versions. The days of handwritten paper originals are virtually gone. For agents like myself, I no longer have to worry about reading (deciphering) my terrible penmanship! My contracts today are as neat as can be! Just one more reason to use a real estate professional.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
CREDIT LINES EVAPORATING
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS, TIPS FOR SENIORS
Agents and clients have commented recently that lines of credit dried up virtually overnight in response 
to the failure of Congress to pass a rescue package. Home equity lines of credit are not being granted by some banks and credit card 
limits are being frozen. Banks are responding to liquidity issues they see on the horizon. This is a direct response to failure to pass a bailout plan yesterday.
The consensus among my peers and customers is taxpayers should not shoulder the burden of banks making bad decisions. Our elected officials, IMO, need to come up with a plan to rescue the financial markets without handing the bill to taxpayers.
Amazing how deep this housing crisis has impacted the entire economy. First, it was just those directly involved in real estate: agents, mortgage brokers, title and escrow companies. Then it rippled into construction, building suppliers and appliance sales. Then it snowballed into auto sales, restaurants, and retail. Now it is spreading to small businesses, medical services and even government jobs.
It would appear that the housing industry has its tentacles into every sector of our economy. When the housing market catches the flu, the other sectors catch colds. What will happen if the flu bug turns into pneumonia? We all better hold on for a wild ride!
Restoring consumer confidence is key to solving this economic crisis. With low self esteem comes paralysis of our entire country. Who wants to think about buying homes, cars, boats RV’s when you don’t know what tomorrow holds. Basic needs trump idle pleasures. Putting food on the table tops the list of priorities. Making the rent or mortgage and utility payments are next. Paying taxes and insurance take a back seat to these basic necessities of life.
Regardless of what the final bailout strategy is, Americans will have to believe deep down that things will get better. Otherwise, all of us, myself included, will stop discretionary spending and shift into survival mode. This is not good for our country, state, city or neighborhood. It would be analogous to throwing blankets on a patient that is suffering from a 105 fever.
I will wait and see what happens before I feed this fever. Another depression is in the realm of possibilities if great thinkers can’t devise a logical plan of action to stave off a financial collapse. Stay alert, make a mental note, this is history in the making!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
SHASTA COUNTY RESTAURANTS SHOULD BE GRADED
LOCAL GOVERNMENT, SHASTA COUNTY
A local reporter blogged recently about how disgusting the health department report was for one of his favorite Redding restaurants. I blogged about a solution that would cost little or nothing for the county to implement. I believe Shasta County residents and visitors alike would benefit from this simple program already in place in many other counties across California. Here’s my September 2008 post:
As a director for the California Association of Realtors, I attend meetings three times a year in cities
across the state. This is my 10th year traveling for the Shasta Association of Realtors, and one healthy practice I’ve noticed elsewhere but lacking locally, is a restaurant grading system.
How does it work? The Shasta County Environmental Health Department sets up a system of conducting a health inspection of all restaurants in the county (yes, they already do this) and issues a grade based on the inspection results (no, they don’t do this). If a restaurant achieves a 90% or better compliance (for example) with health laws regarding food handling, food safety and cleanliness, they are issued a large letter “A” on a piece of paper which they can prominently display in the window or door of the eating establishment, for all to see.
Guess what? All restaurants want to display that big letter “A” in their window. They make an extra effort to keep their place of business in order, otherwise they will loose their badge of honor. Such a simple concept, yet our local health officer has not implemented such a program. A couple of phone calls to other counties that have a program in place, by a local health department employee, would get the ball rolling for Shasta County. Is that too much to ask?
Travelers, like me, familiar with the program seek out dining establishments that passed their health inspections with flying colors. Shasta County maintains a website, as other counties do, that list the results of the most recent health inspections of area restaurants. I don’t have the time to check and re-check the website for my favorite haunts so establishing a grading system seems like a no-brainer.
Our health department head is one of the highest paid public employees at the county, earning nearly $200,000/year plus benefits. Isn’t it time to develop a simple way for all of us to know before we walk in the door of our favorite eating place how they did on their last health inspection? What do you think?
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
CHECK YOUR AGENTS LICENSE BEFORE SIGNING ON THE DOTTED LINE!
TIPS FOR BUYERS, TIPS FOR SELLERS, TIPS FOR SENIORS
We have all heard it is prudent for consumers to check the license status of a building contractor 
before signing on the dotted line. The same applies with a real estate agent. The California Department of Real Estate oversees licensing and disciplinary actions regarding real estate agents, mortgage brokers and appraisers. They have a website, where you can do a quick license check if you are so inclined.
Go to http://www2.dre.ca.gov/PublicASP/pplinfo.asp and plug in the agents name and city. If you don’t know the agent’s exact name, try using just the last name and city where his or her office is located. The data retrieved will include the date they were first licensed, details of any disciplinary actions and the current status of the individuals license. In my case, I was first issued a Sales License in 1982 and then a Broker’s License in 1987.
Jeff Davi, a third generation Realtor from Monterey, was appointed real estate commissioner when Arnold the Governator took office. He is a young man in his 30’s and has done a great job bringing the DRE into the 21st century. He was instrumental in developing a website for individuals to apply, renew and update their license information.
During his tenure, there has never been so many individuals seeking a real estate license. In fact, just 
recently, the number of real estate licensees in California peaked at more than 545,000. The number is starting to decline, but as Jeff said at a recent forum I attended, that means 1 out of every 56 adults in California has a real estate license. He went on to say “if I could just get the other 55 to get a license, I would not have to worry about enforcing real estate laws!”
I would recommend you take the time to review the license history and status of any agent you are considering before you make a written commitment to utilize their services.
Here’s my license status:
http://www2.dre.ca.gov/PublicASP/pplinfo.asp?License_id=00858451
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
HAWES RANCH:GROWING SPOOKY FUN FOR ALL THIS FALL!
REDDING LIFESTYLES, REDDING RECREATION, SHASTA COUNTY
Since 1863, the Hawes Family has tilled the rich, deep loam soil 
deposited over the years by Cow Creek and the Sacramento River. Greg and Lori Hawes, 6th genation descendants of the original homesteaders, have turned the farm and ranch supply business into “agri-tainment“! This includes an elaborate corn maze designed this year as a tribute to firefighters that battled seemingly endless wildfires this summer.
Other fun activities for kids and adults alike include the Pumpkin 
Blaster, cow trains, corn cannon, The Dread Shed, The Haunted Barn, Buried Alive and even a mini-corn maze for kids to age 10. General admission is $4/person, $7.50 if you want to try your skill at the big corn maze. 
Tokens are available for train rides, pumpkin/corn blasters, canoe ride, gemstone mining, Barnyard Jump and the new railroad ride.
The Hawes’ hired a professional from SoCal to revamp their haunted house to make it scarier than ever. I have known Greg and Lori for several years now, and can say they put their heart and soul into this exciting venture.
Sounds like a whole lotta fun! I know my grand kids will love it…see you there!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
THE GOLDEN RULES OF BUSINESS BLOGGING
REAL ESTATE PRACTICE, REDDING LIFESTYLES, SHASTA COUNTY
I’ve only been blogging for business for a couple months, but I have heard there are certain unwritten 
rules bloggers should follow. Call it etiquette if you like. Google “blog rules” and you will find many results for this new way of social marketing.
My goal is to write items of interest about real estate, why I like living here in Redding/Shasta County and community events that might be of interest to readers. My focus is content. Unlike traditional news sources, I can add my 2 cents worth whenever I feel like it. Journalists are (supposedly) hamstrung by rules that require them to be neutral, impartial, objective and fair to both sides of a given topic. Bloggers, on the other hand, are not constrained by an editor that parses, strikes out, rewrites and otherwise polishes the final content.
After some basic research, it appears suggested rules for blogging are under development. By who? Bloggers, of course. Bloggers are blogging about blog rules and perhaps someone will distill the top suggestions into The Top 10 Golden Rules for Blogging. I can toss out my Top Ten List for all to chew on:
- No cut and paste. Blogging should be seen as a unique opportunity to write about something of interest through your eyes, mind and keyboard. Exception granted for clip art or pictures. Linking to a website/page with additional information should be allowed, but your material should, well, be your material! A variation of this is reblogging, cutting and pasting someone elses post. Tacky, tacky,tacky!
- No plagarism. Like cutting and pasting, if you are skilled enough with your mouse and know how to get the most out of your software, you can look like someone you aren’t. You will be found out, sooner or later, and if you are not getting comments, you will now (unless you have comments turned off). Hope you have thick skin!
- Avoid talking about how you feel, tell us what you think and why. Touchy-feely may boost your ego, but you will only succeed in putting your audience to sleep.
- Make sure the content has value, not just a bunch of words strung together. Failure to do this will cause readers to click away from your post, your site, your company and they may never return. Write to inform, entertain and hopefully engage your readers and subscribers.
- Try to make your content so rich that fellow bloggers forward or recommend your blog to the greater blogging community. I have learned much by reading other peoples blogs, and I hope they will learn a thing or two from my hunting and pecking!
- The headline should describe the content-Bloggers want to use their limited time efficiently and effectively so make sure that they can get an idea, with a glance, if this post is going to be of interest to them.
- Try to evoke a response from you readers. It’s OK to get personal, ruffle someone’s feathers, that sparks dialogue amongst bloggers and allows a sharing of opinions and reasons for those positions, even if your audience may never agree with you. At a minimum, you have given someone food for thought! Only 1-2% of readers comment anyway, so don’t get your hopes up!
- Consider having a blogging buddy that reviews your blog before it is published. It’s easy to fall in love with your own writing only to have a peer say “Are you sure you want to publish that?” You must keep your cool and not publish something you regret.
- Decide if you will or will not allow comments. If you do, be prepared for some nasty remarks and, of course, becoming a spam magnet. Censorship runs against the grain of allowing free thought, but annonymity has a downside, some bloggers have ulterior motives such as undermining your best efforts, just to get your goad. Delete those comments, even if it annoys the commenter.
- Business bloggers represent the company they work for. Business owners should monitor content and be proactive if it is casting a negative light on the company. Remember, you, as an owner, are liable for what they write. I’ve seen internet postings printed out and used time and time again as evidence in court cases alleging slander and/or libel. Lawyers love the Internet!
Let me know what you think should be added or subtracted, I won’t take it personally. After all, I am new to this, and some of you longtime bloggers probably have some suggestions I have completely overlooked. Let’s hear them!
Happy blogging!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
NEED TO REFINANCE OUT OF A BAD LOAN? READ ON..
FHA LOANS, HOME LOANS, INDUSTRY NEWS, REAL ESTATE LEGISLATION, SHASTA COUNTY, SHORT SALES, TIPS FOR BUYERS, TIPS FOR SELLERS
One of the first elements of the housing recovery bill signed by President Bush (HR 3221) takes effect 
next week. If you, or someone you know, needs to refinance out of an ARM or other risky type loan, Wednesday, October 1st is the first day applications will be accepted for government-backed FHA loan refinances. This is a 30-year fixed rate loan, that will be based on a percentage of current market value. A borrower can expect to have lower fixed rate payments and some relief from the loss of value, the home may have experienced, during the recent housing market meltdown.
In exchange for this bailout, the borrower agrees to an equity sharing arrangement whereby the government will participate in appreciation, if any, at the time you sell the property. This is very similar to the way most of the down payment assistance programs operate.
The bottom line is borrowers in trouble may have another option than losing their home to foreclosure. This program will not work if you do not have verifiable income or your credit is horrible. However, I would suggest anyone in this predicament contact a mortgage banker up to speed with the HR 3221 bill provisions and see if this would work for you.
If you need a referral to a reputable lender qualified to take applicaions under this program, contact me:
530-224-6767 or 530-941-7492
Brad Garbutt
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
MY PROPERTY IS BURDENED WITH C,C,&R’S- WHAT SHOULD I DO?
REAL ESTATE PRACTICE, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS, TIPS FOR SENIORS
Covenants, Conditions and Restrictions are commonly attached to property title that limit property rights for the buyer. These restrictions are common in subdivisions in the city and less common in rural country locations. The C,C,&R’s in theory, are to
protect property values within the subdivision in which they apply.
Common items covered include size, design and location of any structures erected on the parcel. They can limit uses, building heights and parking of RV’s. Way back in time there were even race restrictions that have since become unenforceable.
Most of the restrictions are designed to prevent one property from becoming a blight on the rest of the area. Putting cars up on blocks for extended periods of time in the front yard, parking massive wilderness assault vehicles (motor homes) in view of the street, painting your house purple, paving over the front yard, growing trees that block views, raising chickens in the backyard and burning trash are all examples of items that are commonly regulated by C,C,&R’s
Enforcing them is another matter. Initially this responsibility is handled by the developer, who has a vested interest in seeing the neighborhood maintained in an orderly fashion to facilitate sales. Once the developer builds out the tract, enforcement usually falls to residents or the homeowner’s association, if one exists. Sometime a single resident may hire an attorney to force compliance with a neighbor that is violating a covenant.
In the real world, most residents abide by the C,C,&R’s voluntarily and some need nothing more than a reminder of the provisions along with a copy of the rule being violated. Litigation ensues as a last resort when someone flagrantly violates the restrictions. The property owners bringing the action may be able to recover attorney fees if they prevail in court. In some cases the C,C,&R’s can be voided by a majority vote of property owners.
Reviewing the title, including any restrictions, is a standard contingency in most purchase agreements. It is important to review C,C,&R’s carefully and make sure the way you live will not be hampered if you buy a particular property. So before you buy a home with such restrictions, make sure there is room to legally park your boat, motor home and ATV’s before you sign on the dotted line. Failure to do so could make you an unwelcome addition to the neighborhood!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
SHORT SALES NOT SO SHORT
REAL ESTATE PRACTICE, SHORT SALES, TIPS FOR BUYERS
A past client called the other day because she and her husband are considering helping their youngest son buy his first home. In discussing the market and the types of properties for sale and what to expect at different price points, I mentioned the fact that many homes listed for sale today are short sales.
She heard the term before so I asked what she thought that meant. She asked “Is that a property that needs a really fast escrow?” I laughed, she laughed, then I went on to explain that a short sale has nothing to do with how long the escrow is. In fact, most short sales require some of the longest escrow periods in today’s market assuming you are lucky enough to be among the small percentage of sales that actually make it to the closing table.
I went on to explain the process and reasons for a short payoff (short sale). When the housing bubble burst, and buyers used no or low down payment loans, their value dropped below the principal balance of their loan. The homeowners found themselves “upside down“. In other words, there is no equity to cover the costs to sell unless the seller digs into their pocket to make up the shortage.
The solution for a small number of sellers in this predicament, is to complete a hardship package provided by the lienholder to see if the mortgage holder will consider forgiving a portion of the loan. The theory here is it might be better for a lender to agree to a short payoff than foreclose and sell the property at a later date for potentially even less money after factoring in foreclosure, holding and repair costs. Unfortunately, most lenders don’t see the light and follow through with the foreclosure action only to end up netting tens of thousands of dollars less when it is all said and done.
No wonder these hardheaded bankers and investors in mortgage-backed securities are going bankrupt left and right. A large number of these loans should never have been made in the first place and they should have heeded the advice of real estate professionals that tried to help them minimize their losses by utilizing the short sale option. Perhaps it’s easier to turn to the taxpayers and ask for a bailout when things go sour than implement sound underwriting strategies to prevent such a fiasco.
After explaining what a short sale really is and the process to try to buy such a listing, my client decided against getting involved in pursuing any short sale listings. Why torment yourself when so many well-priced homes in top condition are available for sale that do not have all of the obstacles common to distress sale listings.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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