Somehow I got on email list of this Bay Area appraiser – and he has good tips:
Debunking the Bedroom Closet Myth
There’s a widespread belief that a room must have a closet to be called a bedroom. Let me clear that up: in 99% of cases, that’s simply not true. So, let’s break down what really qualifies a room as a bedroom according to the International Residential Code (IRC).
What Makes a Room a Bedroom?
Under the IRC, a room needs to meet these key criteria:
Two exits for emergencies (e.g., a door and a window)
At least 70 square feet of floor space, with no wall shorter than 7 feet
Heating or ventilation (HVAC or another system)
Two or more electrical outlets
Access from a hallway or common area, not through another bedroom
Ceiling height: At least 50% of the room must be 7 feet tall, with no section lower than 5 feet
Do Bedrooms Need Closets?
Nope! The IRC doesn’t mention closets at all. While some places, like San Bruno, CA, might have local rules requiring a closet, most areas don’t. It’s a common myth, but not the reality.
Common Exceptions to Keep in Mind
Rural Areas – Some places with septic systems may impose additional requirements for bedrooms.
Special City Rules – Always check with your local building department, as certain cities may have unique criteria like closet inclusion.
Neighborhood Trends – In 55+ communities, if most homes are two-bedrooms with a den, your “third bedroom” might just be playing dress-up. Even if you’re calling it a bedroom, the rest of the neighborhood is sticking to the two-bedroom theme. So, congratulations! You’re part of the “den club,” whether you like it or not!
This is the third garage fire I’ve seen that was started by lithium batteries!
Why are lithium-ion batteries flammable?
Lithium-ion batteries store a lot of energy in a small amount of space. When that energy is released in an uncontrolled manner, it generates heat, which can turn certain internal battery components into flammable and toxic gases.
How do fires from lithium-ion batteries start?
Lithium-ion battery fires happen for a variety of reasons, such as physical damage (e.g., the battery is penetrated or crushed or exposed to water), electrical damage (e.g., overcharging or using charging equipment not designed for the battery), exposure to extreme temperatures, and product defects.
What are some unique dangers of lithium-ion battery fires?
Heat, smoke, the release of toxic gases, and the potential for explosions are the dangers associated with lithium-ion battery fires.
What are some safety tips for buying, charging, storing, and using lithium-ion batteries in devices like laptops, phones, tools, and more?
Purchase batteries that are only listed by a nationally recognized testing laboratory and labeled accordingly.
Stop charging a battery once it is full.
Use charging equipment that is only compatible with your device. To be safe, use only the charging equipment that is supplied with your device.
Stop using your device if the battery shows signs of damage, such as an unusual odor, excessive heat, popping sounds, swelling, or change in color.
Have all repairs performed by a qualified professional.
Where is the safest place to charge batteries in e-bikes and electric vehicles?
When it comes to e-bikes, e-scooters, and electric vehicles, the safest place to charge these devices is outdoors away from any structure or enclosure and not in direct sunlight. Do not charge a battery when either the charger or the battery is damaged. Do notstore batteries in extremely hot or cold locations or in an area that blocks the only exit out of to a room. And do not attempt to modify the battery or charger.
It’s going to be tough on the newer agents going forward.
The commission lawsuit stuff isn’t the big concern. Sales are likely to keep dropping, and at the same time the better agents are picking up market share. There aren’t enough sales to go around for every realtor to pick up an occasional sale, let alone make a living.
If you’re an agent and you find yourself saying to prospects, “Let me know if you have any questions”, then there are things you can do to up your game.
The best thing you can do is immerse yourself in the Dale Carnegie Sales Course. I completed it early on, and it made all the difference.
Embrace your only job, which is to say the right things, the right way, at the right time.
It never fails when I’m doing open house, and I’m talking it up with attendees.
When I ask them, “Would you like to buy it”, it gets a chuckle every time because they have never heard that before at an open house. We are supposed to be professional sales people, yet consumers have never heard an agent ask them if they want to take action.
If you catch yourself wanting to say, “Let me know if you have any questions”, just know you need to be more creative. Try out my two favorite open-house questions, and use them early on, not once they have seen the house and are heading for the door:
Have you been looking around much lately?
Have you seen anything you liked?
Their answers to those questions will send you down a natural path of other questions that reveal where they are in the process.
If they say, “Oh, we’re just neighbors”, that’s fine.
Resist the urge to hit them with, “Are you thinking of selling?”
A consultant would say, “Have you thought about moving?
Every homeowner has thought about selling, and getting their hands on the money they have tied up in the home’s equity. But when they think about moving, it thrusts them into the Big Three: Going through all the stuff, fixing up the house, and where to go.
Listen carefully to their response, and then say, “If you could get assistance with all three of those things, would it be helpful?”
Did you know there are more households with pets than children? These beloved pets are a driver of a major facet of economic activity: home buying. About one-fifth of recent home buyers considered their pet in their neighborhood choice—a share that increases among unmarried couples and single women buyers. Let’s dive in!
According to the U.S. Census, the share of families with children under the age of 18 living in their homes has continued to decline. That share, in 2023, stands at 39%, down from 52% in 1950. This is likely due to two factors: birthrates overall have been declining, and there is a large share of Baby Boomer households whose children may have already left the nest.
This trend is mirrored among home buyers. In 1985, 58% of home buyers had children under the age of 18 in their home. In 2023, just 30% of home buyers had a child under the age of 18 in their home—an all-time record low.
While the number of children in U.S. households has declined in the last twenty years, pet ownership has risen. According to the American Pet Products Association, 66% of American households own a pet, up from 56% in 1988.
These are great tips – curb appeal and staging make the best visual impression AND they send the message that the sellers care.
While the process of trying to sell your home can feel daunting, there are some simple yet highly effective hacks that can reel in buyers quickly.
Every seller wants to increase their chances of an offer to avoid having their home on the market for longer than expected, and while making big upgrades can improve your home’s appeal, these can be costly and time-consuming. Fortunately, small details can make a significant difference. The key is to appeal to potential buyers when finding ways to sell a house fast.
We asked property experts what were the simple tricks that they have found make houses sell much quicker. These are the seven techniques and tweaks you can make to ensure selling your home is a smooth and speedy process.
‘When someone looks at your property online you have only eight seconds to capture their attention before they move on to the next one. A well-staged home will make for incredible photos and show in its best possible light.’
If you are spending $2,000,000+ for a home, you deserve a built-in refrigerator! Check its age though, because they are expensive to replace. Sub-Zero and Thermador refrigerators will last for 20 years and are made in America. GE fridges are American-made too, but they don’t carry the same swagger. If you’re selling your home and don’t want to spend the money, then at least buy a counter-depth fridge that will partially disguise your thriftiness.
Here are thoughts on evaluating the kitchen:
Kirsten Jordan knows to look out for signs that a home is priced too high based on the current state of the kitchen — even if it looks brand new.
“When a home has a brand new, on-trend kitchen and is priced at the top of the market, I make sure to read that kitchen closely,” she said. “Did they renovate to sell? You can tell by the quality of the materials and construction. Maybe it’s because of social media but Americans have become too focused on what’s trendy. Quality should be your first priority. Quality retains value.”
One area to pay close attention to is the cabinets.
“Look at the kitchen cabinet’s quality,” Jordan said. “Is there dovetailing? Are the drawers soft-close? Is there a maker’s mark? If not, they’re probably builder’s grade — that means particle board construction and wood veneer cabinet faces, which don’t wear well. The kitchen might look great today, but in four years you’ll need upgrades and if it’s not your aesthetic there’s no way to refinish — you’ll need to rip it all out. That kitchen could cost you thousands more in the not-so-distant future.”
Another thing to take into account is the appliances.
“You can tell a lot about a seller from the quality of appliances they’ve selected,” Jordan said.
She recommends using AI to determine the quality of the kitchen appliances.
“Your phone now has a visual look-up feature where you can snap a photo and search it using AI,” Jordan said. “Use this tool to look up the appliance, quickly find reviews and see if there’s a Reddit thread about issues with the components. If you want to go really deep, search in Google News for information about any recalls. You can also buy a $30 subscription to Consumer Reports. Their expert team tests all the appliance brands for you and then provides unbiased reviews.”
Sometimes the kitchen upgrades needed are relatively minor, so it’s still worth buying the home with a negotiated sales price. Other times, it’s better to just walk away.
There used to be a belief that any defects that had been fixed, or things that happened to previous owners weren’t required disclosure items for today’s home sellers. But it’s gotten very specific now – and beginning July 1st, AB-968 takes effect. If the home is being sold within 18 months of purchase, all the contractors and their contact information need to be disclosed too on any repair over $500:
Did You Know ~ All About Historical Disclosures:
Past defects, even if repaired by the seller or others, are to be disclosed. Not only that; the seller should provide all relevant information regarding the repairs to any prospective buyer. They must also disclose any improvements or modifications made to property with or without the benefit of permit.
The disclosure would include, but not be limited to, the person(s) who performed the repairs (i) the property owner (ii) a licensed contractor or (iii) an unlicensed tradesperson. The documentation would also include all related documentation for all repairs /improvements/modifications to the property.
The authority here may be found in the Seller Property Questionnaire (“SPQ”), Question Number 5. This paragraph specifically prompts the seller to provide whatever material documents they have in their possession. Questions 7A/8A of the SPQ also address the importance of full disclosure. The Disclosure Information Advisory (“DIA”) is an excellent tutorial for sellers and should be reviewed with the homeowner before the disclosures are completed.
Let’s think about it; if a seller and/or their agent fail to disclose past defects and/or repairs, the buyer will not have the information they need to make an informed decision. For example, if a past roof leak, flooding, or other water intrusion issues/repairs are not disclosed the buyer may not choose to inspect for other damage that could have occurred as a result, such as environmental hazards or wood / drywall damage that may not be visible. The informed buyer may wish to verify that the repairs were done correctly by a licensed professional, and/or ask for more details on the repairs themselves or the tradespersons or contractor that performed the repairs. It doesn’t matter how long ago the information was obtained; if you’ve got it produce it and by all means document delivery with a Receipt for Reports or similar documents.
The fact that a neighborhood or property specific defect exists, even if “well known” by the local residents and real estate community, disclosure is still required. The buyer may be from out of the area or simply unaware of the issue.
Full and accurate disclosure is always the best practice and remember Gladys Kravitz is lurking and just ready to pounce on the buyer and share all that she knows. You can count on Gladys to be the town crier.
When it comes to improvements and modifications to the property the same logic applies. Some homeowners take great care to ensure that all modifications and improvements and even repairs are made with the benefit of permit, comply with code, and are performed by licensed contractors, many others do not.
The key is disclosure! The buyer needs to know what they will be dealing with once they become the property owners. In order to make an informed decision, the buyer needs to have sufficient information to do so.
Neither agents nor sellers should “cherry pick” or “decide” what documents are relevant, no matter how well intended. All disclosures, investigatory reports, and inspections, estimates, invoices and receipts, environmental analysis, invoices, estimates, surveys or maintenance records that are in the possession of the listing agent and/or seller are to be provided to the buyer in their totality. Regardless of when they were obtained and whether the disclosure packet is delivered prior to an offer being written or after the sale is ratified.
Last note on this subject for now; disclosures should be thorough and accurate and ought never be minimized or glossed over. Explanations should be clearly stated for the buyer’s review.
My blog post on avoiding the capital-gains tax by minimizing your annual income was wrong – the IRS includes your gains as income too (thanks WC!). It leaves home improvements as the best way to reduce the taxable gain – hang onto your receipts:
While I’m on errors and omissions……a while back I said that the Homes.com agent account costs $1,500 per month. I checked it out more closely and found that they don’t have a standard cost of service – it is based on the agent’s production. The $1,500 was for my 104 sales in the last four years (I didn’t sign up – for that kind of money, I could be driving a brand new Cadillac!).
This is getting to be a real problem, and there doesn’t appear to be a Plan B. Hat tip to Richard!
As home insurers flee California, the state’s last-resort insurance plan is warning that it’s being pushed toward insolvency, forced to cover a rapidly growing number of properties that have lost traditional coverage and unable to collect enough in premiums to cover potential losses.
The number of homes and commercial properties in high-risk wildfire areas covered by the California FAIR Plan has more than doubled, from 154,000 in 2019 to 375,000, and liability exposure has ballooned from $50 billion in 2018 to $336 billion in February, its president told lawmakers at an insurance committee hearing last week.
“These are huge numbers,” California FAIR Plan President Victoria Roach told the committee. “And they continue to grow. … As those numbers climb, our financial stability comes more into question.”
Roach added that one bad wildfire or even a series of smaller fires could overwhelm the plan’s resources, forcing it to bill all the state’s insurers for liabilities it cannot cover, which they in turn would pass on to all their insured home and business customers as higher premiums.
“It’s a gamble,” Roach said. “We are one event away from a large assessment, there’s no other way to say it, because we don’t have a lot of money on hand, and we have a lot of exposure out there.”
Roach said the FAIR Plan has cash on hand “somewhere in the neighborhood of $700 million.”
The FAIR Plan’s financial instability has emerged as collateral damage from the state’s insurance market meltdown. Major carriers have discontinued or restricted coverage in recent years following a series of costly wildfires — 14 of California’s 20 most destructive wildfires burned the state in the last 10 years. That’s forced property owners who’ve lost coverage onto the FAIR Plan in rapidly growing numbers — with 1,000 applications now every work day.
Elected Insurance Commissioner Ricardo Lara last fall announced plans for a major overhaul of the state’s home insurance regulations and already has rolled out proposed new rules to speed approval of rate increases and allow computer catastrophe modeling to factor into them. Those changes are on track by the end of the year, Lara said.
But it isn’t coming fast enough for both consumers and insurers. State Farm, the state’s largest insurer, last year rocked the market by declaring it wouldn’t issue new policies in California. The company dropped another bomb when it announced this week it will begin shedding coverage of 72,000 California homes and apartment buildings over the next year. Those customers are expected to end up on the FAIR Plan as well.
The state created the California FAIR Plan in the 1960s in response to insurers refusing to cover inner-city businesses following riots in Los Angeles’ Watts neighborhood. It’s a nonprofit association of all the state’s authorized property insurance providers, chartered to provide temporary basic insurance for properties deemed so high risk that companies refused coverage.
The FAIR plan isn’t tax supported, and its bare-bones coverage — just fire and smoke damage — is paid from policy premiums that can be much more expensive than regular insurance because the risk pool is much higher.
The plan also isn’t subject to the insurance regulation under Proposition 103, the check on rates voters approved in 1988. But it is regulated by the state legislature and its rates approved by the elected insurance commissioner, though not under the review of consumer groups, which can intervene on regular policies.
Roach said that the FAIR Plan has encountered the same problems as regular insurance providers in getting policy rate increases approved to provide enough revenue to cover its risk exposure. Approvals take too long and don’t allow the plan to include the cost of reinsurance — which helps insurers absorb losses — or to factor in catastrophe risk models.
“Our rates are never actuarially sound because not all of our expenses are included in that ratemaking,” Roach told lawmakers. The plan must file for rate adjustments every two years, and she said its last increase requested in 2021 should have been “around 70%” but the plan asked for 48.8%. The insurance department approved only a 15.7% increase, she testified.
At the same time, the huge increase in properties needing last-resort coverage has greatly inflated the plan’s risk liability.
