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BUSINESS NEWS & TRENDS
Mountain Views-News Saturday, December 13, 2014
FAMILY MATTERS By Marc Garlett
HARDER THAN IT LOOKS
With markets so rapidly changing, it's easy to imagine how property appraisers might sit in a darkened
room, waving their hands over a crystal ball, and producing the mysterious and all-powerful
document of a home's value. Let's dispel the notion of magical figures and look more carefully at the
process.
When comparing against similar properties, it's not just the final price that counts. Appraisers also
factor in any "incentives" offered, such as sellers who pay closing costs or remodeling allowances.
Perhaps the most important factor that lenders review in an appraisal is the closing dates of the "comparables"
(other homes by which yours is measured). Unfortunately, with today’s stricter lending requirements,
most "comps" must have sold within the last 60 or even 45 days to carry weight. Markets
change so quickly that any sale price over two months old may be completely irrelevant.
Now a few words about how foreclosures in a neighborhood affect determination of value. Technically,
appraisers shouldn't consider them, because they don't fit the Appraisal Institute's definition of
"a property reasonably exposed in a competitive market." However, if several area homes have been
abandoned, we know the negative effect that can have on a home's “perceived” value.
If you're planning to sell, express your concerns about the appraisal process to your representative,
who will offer explanations and suggestions for improving your report’s results.
“HOW SHOULD I TAKE TITLE TO MY HOME?”
As an estate planning attorney, I get that question all the
time. And it’s a great question. You definitely want to
make sure you hold title to your home correctly. Why?
If titled incorrectly:
- The home owner cannot control what happens to the
property after s/he dies.
- The home owner’s heirs can lose the property to
creditors, the government, or even an ex-spouse.
- The home owner’s heirs will have to pay capital gains
tax on the sale of the property.
- The home (and the heirs) will have to endure the
public, time-consuming, and very expensive probate
process.
Common Ways to Hold Title
- Joint Tenancy (JT): Under JT, the owner who dies
first cannot control what happens to the property after
his or her death. JT ensures there will be a probate
upon the death of the second joint tenant. Finally, the
surviving joint tenant will pay capital gains taxes on
one-half of the property after the death of the first joint
tenant.
- Tenants in Common (TIC): A TIC does not provide
any survivorship rights among the co-owners. When
one tenant in common dies, that tenant’s interest in the
property does not automatically pass to the surviving
tenants in common. And each tenant’s interest does
have to pass through probate upon each of their deaths.
In California, a tenancy in common is presumed unless
title is specifically taken in some other way.
- Community Property (CP): Possibly the most
common way for married couples to own property, CP
causes half of the property to be probated upon the first
death, and the whole property to be probated upon the
second death.
- Community Property with Right of Survivorship
(CPw/ROS): Like joint tenancy, CPw/ROS is he-who-
dies-last-wins situation, because only the surviving
owner controls the disposition of the property upon
death.
What eliminates all these potential problems? A Living
Trust
The best way to own your property is in a living trust.
- Owning property in a properly drafted and funded
living trust avoids probate upon the death of both the
initial and surviving spouses.
- Property received by heirs can be sold free of
any capital gains tax and often avoids property tax
reassessment.
- The trust will ensure the right people receive the
property after the death of the owners.
- The property can be protected from creditors,
predators, and even any future ex-spouses of the heirs.
Be one of the first five callers to mention this article
and I’ll research and review the title of your primary
residence free of charge. You’ll learn exactly how your
title it is currently held, what that means to you and
your loved ones, and how you can change the way you
hold title if you’re not happy with the results.
To you family’s health, wealth, and happiness,
A local attorney, father, and CASA volunteer (Court
Appointed Special Advocate for Children), Marc Garlett
is on a mission to help parents protect what they love
most. His office is located at 49 S. Baldwin Ave., Ste. G,
Sierra Madre, CA 91024. Call 626.355.4000 to schedule
an appointment to sit down and talk about ensuring a
legacy of love and financial security for your family or
visit www.GarlettLaw.com for more information.
HOW DO PEOPLE FEEL ABOUT YOUR BRAND?
Part of a good marketing strategy is about finding the right people you can persuade that your
product or service is worth spending their money on.
People buy a product or service for four reasons: they need it, have time for it, can afford it, they like
it or they like the person providing the service.
Social media can only influence one of those four areas. You can’t force someone to need your
product if they don’t, and you can’t control how much money someone has. The only area you really
can influence is whether they like you or not. And sometimes, that’s hard to do too!
Maya Angelou said…
“I’ve learned that people will forget what you said, people will forget what you did, but people will
never forget how you made them feel.”
Take a look at your social media presence and see if you are creating a brand that is likeable. Are
you adding in human touches? Are you sharing interesting information? Are you listening and
commenting on other people’s social media posts?
Making your audience feel good is good for your business.
About MJ: MJ and her brother David own HUTdogs, a creative services business that specializes in
Internet Marketing strategies and Social Media. They offer social media management services and
help their clients build a strong on-line presence. “Like” them on Facebook for trending news in
social media, internet marketing and other helpful tips, www.facebook.com/hutdogs.
Sign up for their upcoming classes and presentations at: www.hutdogs.com/workshops/schedule
Mountain Views News 80 W Sierra Madre Blvd. No. 327 Sierra Madre, Ca. 91024 Office: 626.355.2737 Fax: 626.609.3285 Email: editor@mtnviewsnews.com Website: www.mtnviewsnews.com
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