Mary Cummins, Real Estate Appraiser, Real Estate Appraisal, Los Angeles, California, Mary Cummins.

Mary Cummins is a real estate appraiser in Los Angeles, California with 38+ years of experience. Cummins provides real estate appraisals for banks, lenders, mortgage brokers, Appraisal Management Companies (AMCs), lawyers, Courts, factors and private parties for lending, lawsuits, probate, estate planning, divorce and all types of litigation. Cummins provides 1004, 1073, 1025 and other form reports, narrative reports and historical appraisals besides real estate research and appraisal advice.

Showing posts with label real estate. Show all posts

Friday, December 6, 2024

Taking a Listing in Probate and Trust webinar by Paul Horn Attorney, notes by Mary Cummins Real Estate Appraiser

I attended a webinar given by California probate estate attorney Paul Horn. It was very informative and entertaining. Paul Horn Esq definitely knows wills, trusts, probate and real estate. He gave some great advice which I've actually heard from other estate attorneys.

It's important to order a date of death historical appraisal to determine market value at time of death. Paul Horn stated it's well worth the $500 cost. One person asked if they must sell the property for the appraisal value. He said "of course not." Sell it for what you believe is the highest current market value.

In order to sell a home in probate you will need three main things i.e., Order for Probate, Letters, Notice of Proposed Action. These are all legal forms which can be found at lacourt.org He posted samples but they had names so I won't repost them. A real estate agent would get these items from the attorney handling the probate, estate. The real estate agent does not fill them out. The attorney does.

This is the California Probate Process.

The best thing is to avoid probate altogether. It will save you time, money and headaches. Get a will and a trust. Put the property in the trust. Make sure not to put the name of your heirs on the deed. Put the name of the trust only. This image shows the benefits of a trust versus a will. If you only have a will, you have to go through probate.

These are the essentials of good estate planning.

A married couple should take ownership as community property to avoid extra taxes.

Here is one of Paul Horn's videos on the probate process.

https://www.youtube.com/watch?v=IZtMW7hlH-c

You should have an attorney handle your will and trust. This is not legal advice. I am not an attorney. I would recommend Paul Horn to handle trusts, wills and probate. He knows what he's talking about. I've been doing historical date of death appraisals for over 40 years. I've had to deal with estates and probates so I've dealt with many estate and planning attorneys.

@paulhornesq https://www.paulhornlawfirm.com/

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.

Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin

DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Mary Cummins

Mary Cummins of Cummins Real Estate Services has been in real estate since 1983, over 35 years. She is licensed by the Bureau of Real Estate Appraisers. Mary Cummins was an agent and broker licensed with the California Department of Real Estate selling residential income, commercial buildings, raw land and homes for Merrill Lynch Realty in Beverly Hills and Westside Properties in Los Angeles before concentrating on appraisals. Mary Cummins currently provides real estate appraisals, expert witness testimony, historical research, legal real estate research for mortgage brokers, banks, lawyers, factors, insurance companies, financial consultants and private individuals. Mary Cummins was born and raised in Southern California. Cummins attended Beverly Hills Good Shepherd Catholic School and Beverly Hills High School. Besides being on the Dean's list, Mary Cummins was a top ten national swimmer and competed on the men's water polo team. Mary Cummins began college at the age of 15 attending the University of Southern California on scholarship, majoring in Psychology/Sociology. http://www.animaladvocates.us http://www.facebook.com/AnimalAdvocatesUSA

Thursday, November 21, 2024

UCLA States Los Angeles City Rezoning Plan Falls Far Short of Housing Needs by Mary Cummins Real Estate Appraiser

UCLA report chiping in: evaluation the effects of LA's citywide housing incentive program on neighborhood development potential, mary cummins, real estate appraiser, los angeles, california, zoning, housing crisis, homelessness, homeless, rezoning, city wide housing incentive program CHIP

The UCLA report "CHIPing In: Evaluating the effects of LA’s Citywide Housing Incentive Program on neighborhood development potential" states Los Angeles City rezoning plan will not provide enough housing. While the city deals with the aftermath of insufficient housing, i.e. homelessness, they are not dealing with the root cause which is an insufficient number of housing units. This reminds me of LA City's homeless pets problem. As a rescuer we say we can't adopt our way out of the problem. We need to shut off the supply of homeless pets at the source. We need the same with homeless humans. We can't just keep putting homeless in short term expensive city paid housing. We need to stop the cause of most people becoming homeless which is lack of sufficient housing. Below is the summary.

"At any given moment, thousands of people in L .A. County experience homelessness, but many thousands more teeter on its brink, living precariously in the region’s unforgiving housing market. Despite considerable public investments in supportive housing and homeless services, the county has thus far failed to reduce homelessness. This lack of progress can partly be attributed to inattention to the upstream determinants of homelessness. A combination of local, state, and federal efforts have helped a growing number of unhoused people return to stable housing, but we have made little headway combatting the conditions that put people at higher risk of homelessness in the first place. We have successfully increased the outflow from homelessness, but we have failed — so far — to reduce the inflow into homelessness."

Back in 2022 Los Angeles City approved a plan to rezone to accommodate more housing. It included rezoning some single family residential R1 zones for multifamily use i.e. two plus units.

"CHIP differs significantly from the rezoning plan proposed in the city’s certified housing element, adopted by the Los Angeles City Council in 2022. In its housing element, the city outlined strategies for allowing up to 1.3 million newunits across 15 programs, including some that would rezone properties currently zoned only for single-family detached housing. As part of CHIP, the city substantially revised these original rezone programs and removed proposed changes to single-family zones, which account for 74% of residentially zoned land in LA (Menendian et al., 2022). This departure from the adopted housing element has important implications for the city’s ability to meet itshousing production goals and to affirmatively further fair housing (AFFH) —as mandated by state and federal law —by increasing housing options in well-resourced, opportunity-rich neighborhoods."

The UCLA report states that the current CHIP approved plan will not produce enough housing to meet the city's goals or needs. The main reason is because rezoning is one thing but developers actually building more housing units in those areas is another thing. It doesn't make economic sense to build in the areas the city with these mandatory requirements. CHIP offers bonuses if developers deed restrict some units for low income. This forces developers to pay to build and subsidize housing for poor people on their privately owned land. They lose money doing this so it doesn't make economic sense. It's like telling developers they must build housing with both hands tied behind their back. The issue is NIMBYs telling the city they don't want more housing in their areas because they fear traffic, lack of parking, yadda yadda... Lower income people tell the city not to allow more housing unless they get free or almost free housing. UCLA believes in order to meet the housing needs of the city the city must go back to just allowing more housing with fewer restrictions in single family and other zones.

I totally agree with this and have been saying this for years. Part of homelessness is lack of sufficient number of housing units. Had the city allowed more housing years ago, we'd have enough affordable housing today. Yet they continue to not allow enough housing to be built. This just makes housing even more expensive and scarce. Then when housing is too expensive they enact more rent control which makes the problem ten times worse. Rent control helps a very few people short term at the cost of loss of more housing for everyone in the future. Rent control ends up hurting everyone including tenants, cities, property owners and developers.

Below is the actual UCLA study.

https://escholarship.org/uc/item/7xf2b3j0

DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Mary Cummins

Friday, November 1, 2024

Assessor Jeff Prang Speaks at Appraisal Institute Women's Initiative Committee November 1, 2024 by Mary Cummins Real Estate Appraiser

jeff prang, los angeles county, assessor, property, real estate, mary cummins, california, appraisal institute, boe, board equalization, brea, real estate appraiser, appraisal

Speaker: Los Angeles County Assessor Jeff Prang

Date: November 1, 2024 via ZOOM

Great presentation by Jeff Prang the head of the Los Angeles County Assessor's Office. The slides below show his presentation. There were some good questions after his presentation.

Questions (These aren't complete.)

1. How are property tax assessment appeals processed?

He explained the process which is outlined in the assessor website. He said their backlog was 40,000 cases when he took over the department. It's down to 20,000. One issue is there are appeal agent who contact new home buyers and state they paid too much for the property. They offer to appeal the tax basis to reduce property taxes for a % of the reduction. These appraisers, attorneys file 50% of the cases a year or about 5,000 cases. They don't proceed with most cases filed. There is now a $47 application fee to reduce these frivolous appeals.

2. What is the cause of appraiser attrition in your office?

Retirement, Covid and high cost of living in Los Angeles.

3. Are the assessor appraisers licensed by BREA?

No, they are approved by BOE, Board of Equalization.

4. How do you know the current size of properties?

Building and Safety sends over the permits for additions.

5. What do you need to be an assessor appraiser?

Four year college degree but it can be waived if you pass the test.

6. How did Prop 19 affect your office?

We were not given instructions, tools or a program to follow. We had to create the program on our own from scratch. We are processing the requests which cover many counties.

7. Why aren't guest houses, pool houses in the assessor records?

They are but they're not public or online. You have to go to the office to see them. You can look at the pictometry view in the assessor site to see the outline of buildings. We have records for patios, balconies, guest houses, pool houses.

My comment: In my experience they generally only show the first building on a property. Generally second units are added later and they're not in the records. I do see them sometimes by MLS sources that include size of all buildings on the site but not always. Maybe that was in the past when they sold the data. Maybe some services saved the data they bought. This is so important especially for 2-4 units or SFR with ADU. Many have assumed the buildings weren't permitted or legal for this reason. This means AVMs are extremely inaccurate for these properties with one building in front and say extra units, ADU, guest house in rear. You may only see 1/3 or 1/4 of the true size.

"The Southern California Chapter of the Appraisal Institute is proud to announce the launch of its Women's Initiative Committee (WIN).

The purpose and objective of this newly formed committee is to promote the advancement of women within the appraisal profession. In monthly Zoom meetings, we will host discussions of relevant topics, invite special guest speakers, network, and assess the unique challenges and opportunities we face. All are welcome to attend. Appraisal Institute membership is not required, and the Zoom meetings are free of charge."

Ariana Arredondo, MAI

Linda Whittlesey, SRA

Jennifer Hsu, MAI

DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Mary Cummins

Tuesday, October 29, 2024

FHFA Allows Alternative Valuations with Higher LTV Ratios by Mary Cummins Real Estate Appraiser Los Angeles California

mary cummins, real estate appraiser, los angeles, california, real estate appraisal, fhfa, ltv, avm, appraisal, real estate,low income, poc, great recession, foreclosure

The Federal Housing Finance Agency FHFA has expanded the eligibility for alternative appraisal methods on purchase loans by increasing the allowable maximum loan-to-value (LTV) requirements. The maximum LTV ratios will increase from 80% to 90% for appraisal waivers and from 80% to 97% for inspection-based appraisal waivers.

“To be clear, the expanded eligibility of appraisal waivers does not constitute an expansion of a credit box, but rather it will allow more first-time home buyers, and particularly low- and moderate-income first-time homebuyers, to recognize the benefits associated with appraisal waivers,” Naa Awaa Tagoe, deputy director of the division of housing mission and goals at the FHFA, said on stage."

More purchase loans will not utilize a regular inspection appraisal by a licensed real estate appraiser. They will be using non-licensed non-appraiser property inspectors and AVMs Automated Valuation Methods similar to Zillow. This means lenders can use their AVMs, in house approval departments to get higher values so they can approve more loans so they can make more money. These loans will be riskier to new buyers, investors and the government. The housing industry players have been directly lobbying the government to do this for years now under the guise of helping lower income "save money" and fighting nonexistent "appraiser bias."

Never forget the Great Recession. Real estate prices were booming and fewer lower to mid-income, first time buyers could afford to buy a home. The people complained it was discrimination against lower income and POC. There is a correlation between lower income and POC. The correlation is based on socioeconomic factors and not race. There are also plenty of lower income non POC.

The government stepped in to "help" by lowering credit and loan requirements. More lower income first time buyers were then able to buy a home at the peak of the market for almost no money down. They had very little to no savings and were spending most of their income on home expenses. They were set up for failure by the government while lenders made lots of money. Lenders support relaxing requirements so more will qualify so they can make more money. Lenders lobby the government to reduce requirements while saying they just want to help poor people. This actually helps wealthy people at the expense of poor people just like payday loans.

The real estate bubble of course burst and those people ended up underwater. Low teaser rate loans adjusted, some had financial emergencies and they couldn't pay their sky high mortgage, insurance, property taxes and property maintenance. It was cheaper to rent than own. The real estate market collapsed and people lost their homes in foreclosure. They lost more than just the cost of the home due to associated costs and fees. The psychological effect on the families was devastating. Oddly enough the people and government blamed appraisers even though it was the fault of the government and the bubble bust real estate market driven by buyer demand. Appraisers just report the market. We don't set it.

Today we're in a similar though slightly different situation. We're in another real estate upswing caused by previous lower interest rates and severely restricted supply due to rate lock. Everyone wants to buy a home that will appreciate 50% like they have in the last few years. They are again complaining to the government that it's discrimination against lower income and POC because they can't afford to buy a home today.

People are blaming the government for the wealth gap which they say is mainly caused by the home ownership gap. The wealth gap is mainly caused by the income gap. Owning a home alone is not the cause of the wealth gap. You need to be able to first afford to buy and own a home by having higher income, more savings and good credit. Higher income, savings, good credit must come first otherwise you just saddle yourself with debt and higher monthly costs you can't afford. You'll lose your home if you have one financial emergency.

Government did the same thing with student loans. "If you get a college degree, you'll make more money. Here are loans so you can afford to go to college." You'll also end up with $100,000 high interest debt which make it impossible to pay bills, have children, start a business or save to own a home. The correlation between having a degree and higher income is related to first being able to afford to pay for and go to college. It's not the degree itself as many people have realized. Same with owning a home.

The government again responds by lowering loan requirements. Now you can put almost nothing down and get stuck with hefty mortgage payments, rising insurance costs, high property maintenance costs and rising property taxes at the top of the market. Property taxes, insurance increase as property value increases. Insurance costs are through the roof today due to natural disasters exacerbated by climate change. The appraisal waivers and use of value acceptance, AVMs make the loans even riskier for buyers and investors. It's even riskier today as we are at the peak of the market. Two to five years ago and it would have made a little sense. The government always reduces regulations at the peak of the market because of lack of affordability and politics.

AVMs will over value lower priced properties which are generally in inferior condition, inferior locations, smaller than average, have deferred maintenance, include buyer concessions for repairs/costs... These are the properties lower income people are buying because they can afford them because they cost less. The government is again setting these people up for failure. They always do this at the peak of the market.

I was screaming from the rooftops about this issue before the Great Recession. I'm now screaming from the mountain tops. Nothing will change. The government is hurting the people they claim they want to help.The election year campaign promises to get votes is making it worse. You know they will again blame real estate appraisers for a downswing even though we didn't appraise the properties that are most likely to be foreclosed. It's déjà vu all over again.

https://www.fhfa.gov/news/news-release/fhfa-announces-updates-to-enterprise-policies-on-appraisals-loan-repurchase-alternatives-and-pricing-notifications

November 1 Jeremy Bagott just wrote a good piece on this.

https://mailchi.mp/257006d81c5f/days-from-election-agencies-make-good-on-final-sop-to-housing-lobby-10896727

https://www.housingwire.com/articles/fhfa-to-allow-alternative-appraisal-methods-on-purchases-up-to-97-ltv/

DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Mary Cummins

Monday, October 28, 2024

Appraising Homes with Solar Power Systems Class AjO by Mary Cummins

I just took the Solar PV: Technology and Valuation class offered for free by AjO Classes and sponsored by CA IOUs (California's Electric Investor Owned Utilities). It was very interesting and I learned a lot. They of course explained everything we should know about inspecting and appraising the value of a solar power systems. Then they went into using the three different approaches to value, i.e. sales comparison, cost and income.

You need a bit of data in order to determine the value. That data isn't always readily available for the comp properties. You can use cost or income approach if there's isn't enough market data in your area. If you give most weight to sales comparison approach, cost and income data are only supportive so ...

In order to calculate the value of a solar power system (not solar thermal for heating water) you need to know if it's owned versus leased, power of the system size in kWh and age. Assume 25 year life. Leased systems add no value. You'll need to collect data such as contract with power size, original price, current price of similar new system and maybe power rates. There are free online calculators available.

I'm pretty sure the solar people got together to try to help educate the agents and appraisers about the value of solar systems in home values. Most don't mention it or include data or value. This upsets sellers and solar companies. They want people to see the value in the systems. I was always taught to do regression analysis to see if there is a market reaction. Issue again is sufficient data.

A few takeaways. You need a bit of data to appraise the value of a solar system. You need to know power, age of solar system of comps. As rates continue to rise the value of solar systems will increase. The cost of new solar systems has come down dramatically. If you depreciate an older system, it will probably be higher than buying new. Use the lower of the two values. People buy homes with solar systems for more than just energy cost savings. I highly recommend the class.

"Appraisers and Realtors will advance their credibility and competency to better serve their clients with solar-powered homes.

Newly constructed homes have been required to have solar as of 2020 and existing home installations remain on an ongoing upward trend.

How much value does solar add?

What is the most essential number we need related to valuation?

While saving money is the primary motive for homeowners to invest in solar, CA building codes and energy policies are key market drivers as goals prioritize decarbonization; all-electric buildings powered by solar.

Attendees will be better equipped to represent solar assets accurately in sales, competently determine value, and be credible guides for buyers and sellers.

Course Highlights

The first question to ask about solar systems

The most important number to obtain related to valuation

How to determine value of solar PV: 3 appraisal approaches

Key points to include in listings and appraisal reports

How utility rates impact purchasing decisions and value

Components of solar systems and what to look for during inspections

Context: CA energy policy

Resilience: Solar plus storage to leverage TOU rates and power through extreme events

Future influencers: Evolving challenges in managing our power grid

Access to free online tools to inform and improve professionalism

Learning Objectives

Answer essential questions regarding the valuation of a solar system

Indentify components of solar systems

Be aware of variations in utility rates and their impact on value

Understand motives and market influencers of homeowner decisions

Determine the value of solar PV systems: 3 appraisal approaches

Accurately represent solar in listings including vital points to inform value

Stakeholder’s shared pool of knowledge to support fair valuations

Target Audience:

Real estate appraisers

Agents

Lenders

Related associates

Learning Level: Intermediate

*Course is designed for those familiar with valuation principles

Continuing Education Credits: 3 hours continuing ed. BREA, DRE, BOE "

DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Mary Cummins

Wednesday, October 2, 2024

Chicago Urban League, Chicago Association of Realtors, Preparing for An Appraisal, Comments by Mary Cummins, Real Estate Appraiser

I attended Chicago Urban League, Chicago Association of Realtors Zoom webinar today on Preparing for an Appraisal. Good questions and answers. Below is the summary. My notes, comments below that. I'll post link to video if, when they release it.

"Preparing for An Appraisal.On October 2nd from 7:00-9:00 PM, join the Chicago Urban League's House and Wealth Committee for part one of a three-part virtual series. During the event, you will gain valuable insights into the appraisal process and learn how to advocate for fair valuations.

Learn from top experts in the real estate field on how to prepare for an appraisal and advocate for your property’s value. Whether you’re a Realtor, Realist, or a homeowner, this virtual event is packed with valuable insights.

Moderated by the Chicago Association of Realtors President Elect and Chair of the Chicago Urban League’s Housing and Wealth Committee, Lutalo McGee, our esteemed panelists include,

President Sanina Jones of the Dearborn Realtist Board (DRB),

President Erika Villegas of the Chicago Association of Realtors (CAR) and

Tiffany Jimenez of the National Association of Hispanic Real Estate Professionals (NAHREP) Chicago

Tom Schurer of Real Valuation Services

This 3 part series represents a joint effort of the CUL, CAR, DRB, NAHREP, NHS, RAINBOW PUSH AND NAACP- South Side to empower real estate professionals and consumers about the appraisal process and how best to advocate for home buyers and sellers to ensure they receive a fair valuation based on industry best practices."

Mary Cummins notes and comments on the meeting.

Question: Can I advocate for my value, for what I think it's worth?

Answer: Panelists said yes. Some said you can offer comps, contract. Appraiser said "Nobody knows a home better than the homeowner. It's a matter of pride."

Question: Why do consumers think they can't talk to the appraiser?

The panelists said you can and should talk to the appraiser about your value and what you think it's worth.

I sent in this comment: "Borrower can give comps, contract, list of improvements ....but can't try to influence the value. "1090.5. (a) No person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan."

My comment: It's a crime and you will be denied your loan if the appraiser feels you tried to influence their value. Don't say "I need $xxx,000 to get the loan," "the house is easily worth $xxx,000." Feel free to give list of similar homes of the same size, condition which have recently sold in the same area. Don't state a dollar value for fear appraiser may think you are trying to influence.

Question: Can I ask appraiser if they know the area, are competent?

Answer: Yes, but be nice and polite.

Question: Should I communicate with the appraiser in writing or on the phone?

Answer: Put things in writing so it will be included in the work file. Send it to them before the inspection. (My comment. Be polite and factual. Don't try to influence the dollar value).

Roberto Interiano, Lender, then read my comment and others agreed.

Question: Can I order my own appraisal if it doesn't have to do with a loan?

Yes, if you just want to know the value. The bank has to order their own appraiser for their appraisal for a loan.

Question: What should I have ready for the appraisal?

If you are selling, make sure your house is in show ready condition. Have any documents ready for inspection such as the survey, list of improvements.

Question: Should I remove photos from my home?

Answer: Erika Villegas: Yes, remove religious and political items. Remove personal photos because the listing photos could end up on the internet. Remove photos of people because there have been media articles which show some didn't get the "proper value" because of photos of some people.

My comment: All real estate agents tell all sellers to remove personal items, clutter and make sure home is clean and presentable. This is especially important for listing photos, showings. There are a lot of media articles out there about people white/black washing their homes to remove any trace that the owner may be black, Latino... Some articles say the value went up because of, after white/black washing. That is probably not the cause of the value change. It's a false narrative caused by the media, politicians and others.

Lutalo McGee: What about removing personal photos?

Sanina Ellisa Jones: An appraisal is subjective. It's problematic and why appraisals come in lower in our (POC) economy, community. It's because of racism, redlining, discrimination from early 1900's. The maps said risk is equal to blacks. African Americans were marked red, hazardous. It's no longer legal but still subjectivity exists from that practice. Take down religious, political items. I shouldn't have to remove my face because the value could be lower. Homes are devalued based on who lives there. We shouldn't have to do it but we should do it for the value. Values shouldn't be based on photos.

My comment: Appraisers value the home and not the occupants. Home appraisal is a math formula. AVMs use the same formula but appraisers have all the data needed to ascertain value. We generally don't even know race, color of owner, borrower or of the comp homes that sold, are listed. It's a false narrative. That said I agree that you should remove personal items, photos, religious, political items for the listing photos, showings. Buyers want to imagine themselves in the home and not you. They want a blank slate. Homes look bigger without clutter. There are many articles about this online. Appraisers blur all photos that include people, religious items, political items, things such as gun collections, "personal" items... Even if you don't remove your photos, items, we will blur them.

Her definition of redlining is also incorrect. 70% property in HOLC map area D or red were owned by white people. While blacks, Latinos ... lived there whites owned most of the property. Whites were the main ones who had to pay higher interest rates to get the loans. Race wasn't included in all maps. Race was one of many, many factors included in the maps. We use all those same factors today except race. The factors i.e. property age, condition, value, predicted depreciation, income of residents, location near hazardous sites, freeways...are still used today. If you removed race from those maps, they were still just as accurate for risk. Race had NOTHING TO DO with the value or risk. 1935 HOLC program brought lots of money to those areas. Before this there were no loans or they were small and super expensive. Most areas in D zones are now totally refurbished and many are affluent areas. The HOLC program money actually helped. There is a lot of research which proves this but everyone likes to repeat the false stories. I remember when I first heard about redlining around 1983. I also believed that false shit until I did some research and educated myself. Here's an article I wrote about redlining citing the research.
https://mary--cummins.blogspot.com/2021/05/redlining-in-home-loan-financing-mary.html

Lutalo: Should people put an appraisal pkg together?

Sanina: The listing agent advocates for the home value. Have a CMA, floor plan, survey, size, neighborhood details, upgrades, remodel, energy features to show appraiser how listing agent determined the list price.

My comment: The listing agent should already have a property package. Appraisers are open to receiving data. A list of similar sold, listed comparables is good. List of improvements, floor plan if available, survey, energy features... A list of maintenance items is fine but appraisers assume properties are maintained. Maintaining your property doesn't give you extra value.

Appraiser Tom Schurer: Tell the appraiser if there are multiple offers. Let the appraiser know what's happening in the community, developments.

Lutalo McGee: What about new rehabs in area where there aren't any new rehabs sold.

Schurer: You make time adjustments on closed sales, use pending sales.

Lutalo: What do appraisers look at when determining value? What should homeowners do to their homes to prepare?

Schurer: Paint it. It gives a good clean feel. Kitchen, baths drive home values, school district, neighborhood. Nice curb appeal.

My comment: If your home desperately needs a paint job, do it. Just don't expect 100% return on investment. Appraisers look mainly at location, size, bed/bath count, kitchen/bath condition in that order. Don't add a new kitchen/bath for an appraisal. You won't get 100% return on investment in terms of value. It's good to do it anyway if most homes have renovated kitchens, baths and you can enjoy it while you live there.

Question: What if appraiser asks for Tidewater?

Answer: Schurer: It means the appraiser needs help. They can't get value needed. They ask agent for help. Reconsideration Of Value ROV process. The new program looks good. Should be done by end of October and we can talk about it.

My comment: Tidewater: If the VA appraiser believes that the actual home value will be lower than the listing price, they will invoke tidewater. This is simply a heads up that gives the listing agent 48 hours to support the listing price. The agent will then provide similar sold comparables which support the list or contract price. I've found most of the time someone enlists Tidewater, contract/list price was over market value.

Question: How do we navigate AI.

Answer: Schurer: AI will change our world and real estate. RE is a people business. We laughed at early AVM like Zillow. It's real good these days. My future will be reconciling data sets, not giving opinion of value. I will just say why a dataset is wrong for the value of a home (how would he know if he didn't appraise it?) We will still need our smart human brains. Play along. Don't be afraid.

My comment: AI, AVMs are only as good as the data they have. GIGO, Garbage In Garbage Out. AVMs only work with newer, median size, median priced homes in average to good C3 condition. They don't work on older custom homes in fair/vastly improved condition with no view/views on irregular lots... We will still need appraisers for those types of homes.

CEO Urban League Karen Freeman Wilson: We need to know historical context, how the past affects the present. We need to know how to eliminate barriers to home ownership.

My comment: Totally agree.

The next webinar in the series will be with appraiser Chris Posey. Posey will teach us how to read an appraisal report and spot red flags. My coment: Chris Posey is very experienced and knowledgeable. He'll be giving great advice.

Saturday, September 28, 2024

Racist Los Angeles Planning Report - "Historical Housing and Land Use Study" written by Architectural Resources Group, comments by Mary Cummins Real Estate Appraiser

mary cummins, real estate appraiser, real estate appraisal, los angeles, california, planning, zoning, architectural resources group, katie horak, elysha paluszek, morgan quirk, racist, racism, historical housing land use study

I just started reading the land use report "City of Los Angeles Historical Housing and Land Use Study" written by Architectural Resources Group, Inc., Katie E. Horak, Elysha Paluszek and Morgan Quirk which was paid for by the Los Angeles City Planning. This "report" is not only racist but it makes clear the authors don't understand real estate and basic economics. Yes, racism exists. Yes, the world, US and LA have a racist past and still deal with racism today. That doesn't mean income and wealth disparities today in LA are caused by and can be fixed by the current actions of Los Angeles City Planning and Zoning Dept. I now see why the city was reluctant to share this ridiculous report linked below. I also see why it took so long for ARG which is controlled by a 100% white leadership corporation to finish and release the report. Even they knew the report written by lower level writers was too extreme. They should have stuck to the facts instead of adding the slanted racist commentary.

https://planning.lacity.gov/odocument/3eaaa5ce-d96c-4325-a1b8-557218bbd0f5/Historic_Housing_and_Land_Use_Study.pdf

This was the alleged goal of the report. "Architectural Resources Group (ARG) was retained by the City of Los Angeles to prepare this Study as part of the update to the 2021-2029 Housing Element of the General Plan (The Plan to House LA)." "The Study aims to provide an understanding of the twentieth century policies that have contributed to Los Angeles’ housing shortage and affordability crisis, as well as those which have contributed to unequal access to housing and economic opportunity. In providing a context for the current housing landscape, the Study will help inform future efforts by the City as it seeks to provide housing for Los Angeles’ diverse and varied population."

It looks like ARG made this report starting around 2022 after George Floyd's 2020 murder during the height of the more extreme BLM, DEI actions. I support BLM, DEI but the initial reaction after Floyd's murder was an extreme pendulum swing. It corrected and now there's a backlash in the opposite direction which is also wrong but expected. This misguided "report" blames current racial income and wealth inequality on the current allegedly "racist" Los Angeles City Planning and Zoning Department. Let me provide some much needed facts.

Whites make more money than blacks, Latinos. People who make more money have more money. People who have more money can afford to buy and own more expensive homes, apartments in more expensive areas. They also have more expensive cars. This is the reason why whites tend to live in more expensive areas and their homes are worth more. It's the income gap, stupid! Low income whites live in the same area as low income blacks, Latinos. AEI research has proven time and time again that the correlation is socioeconomic factors and not race. It's money. No Planning Department can fix the income gap. It's not their jurisdiction. No one today is preventing blacks, Latinos from living in more expensive areas of LA. Economics is preventing them from being able to afford to live in those areas. Fix the income gap!

This report blames LA City Planning and Zoning department for blacks, Latinos not being able to own and live in more expensive homes in more expensive areas today. "This analysis shows that past planning and housing policies have too often prioritized the concerns of the White middle class over the marginalized, denying communities of color access to resources and excluding them from wealth-building opportunities. Exclusionary policies of the past persist today, perpetuating patterns of segregation, displacement, inequity, and exclusion." Today the cause is income inequality which isn't caused by the Planning Dept. Anyone can now buy any house, rent any apartmentn they can afford. This would be like blaming the Department of Motor Vehicles DMV because whites own more expensive cars than blacks, Latinos. The report writers would call the DMV racist.

Reading through this report I see that it's riddled with illogical reasoning. The report says that people who live in nice homes in nice areas are more successful than those who don't and it's not fair to POC. They think if low income POC could just live in those areas, they'd automatically be successful. Wrong. You have to be successful in order to make enough money to afford to live in those areas! It says this is the fault of the Planning Dept. It's economics! It affects all lower income people equally, white, black, green. You need to complain to the labor dept not Planning. This is not a peer reviewed report. It is not published research. It would never be published with all these statistical mistakes and misinterpretations.

The real reason for the Housing Crisis today is lack of a sufficient number of housing units in Los Angeles and most US cities. Another reason is of course all incomes lagging behind home values. Lack of supply drives up demand and prices. The price of homes is up 46% in last five years alone for this reason. The problem is more people living in an area which is predominantly zoned single family. It's also caused by more expensive California building requirements, increased construction costs, more development red tape, higher interest rates and NIMBYs (Not In My Back Yard). Higher housing costs also increases land costs which increases building costs.

I know that if the city of Los Angeles would allow light touch density, i.e. allow 1-4 units in SFR zones, the housing issue would be much closer to being solved. There would be more housing units which would cost less. As it is you have two to four families living in SFRs, duplexes in lower income areas illegally against zoning, Building & Safety laws. They cut up the buildings, convert garages, add additions without permits. NIMBYs are the reason we don't have light touch density. If you want to blame someone for blacks, Latinos, lower income people of all races, colors not being able to afford housing, blame NIMBYs and the income gap. It'd make more sense than blaming the LA Planning and Zoning Department. The report of course says the only goal of Zoning Dept was, is to help only white people and segregate black people into poor areas. This is false. There was never a black, Latino...zone. There were some private CC&Rs which restricted where blacks and some others could live in certain neighborhoods pre 1945. Those were made by the property owners and not the Planning Dept. In 1945 in LA the Adams Heights, Sugar Hill case outlawed those restrictions. The 1963 California Rumford Act also outlawed any restrictions. The Federal Fair Housing Act of 1968 made it national. People today live in different areas based on finances alone.

I read the intro, beginning, findings, conclusion and will read the rest later. I'm sure these people misconstrued redlining and other issues. Check back for the full report after I read it all. This report was a waste of city funds. It will just incite racism, hatred and division. AI, Google will now pick it up and repeat this bullshit as fact further stoking racism and hatred. No one should ever hire this group if they can't make sure their lower level employees can complete an assignment in a fair, unbiased, unracist manner.

Just looked at the "definition" of "redlining" in the report. "Redlining: a discriminatory practice that puts services (financial services, i.e. loans, or otherwise) out of reach for residents of certain areas based on race or ethnicity. The term “redlining” originated in the 1930s, when a government-sponsored corporation (the Home Owners’ Loan Corporation, or HOLC) assessed and categorized neighborhoods occupied by ethnic groups and people of color as “declining” or “hazardous” and therefore viewed them as investment risks; the policy discouraged investment in these neighborhoods, the legacy of which is felt to this day."

This is incorrect besides totally racist. This is what "redling" actually was. HOLC made maps of a few cities in the US in 1935 to determine loan risk so the government could loan the property owners money to improve the areas. They made maps for 239 cities out of 108,000 cities or .2%. Most of those maps never mentioned race. They mentioned % tenants, income of occupants, age of properties, values of properties, condition of properties, value forecasts...all risks factors we still use today. Some maps mentioned race. It varied based on who was doing the survey. Some high risk "red" zones had POC and some were all white occupants. The real correlation was income, condition/value of properties and not color, race. Again, lower income people live in areas that cost less because they are more likely to be older and in fairer condition near freeways, industrial property... Race was removed from the map surveys. It didn't change the risk rating at all. All the other factors are still used today.

Map areas were rated A, B, C, D with D being the riskiest for loan repayment. Some called the D zone the "red zone" because loans cost more because they were riskier because assets were worth less and were depreciating. We still charge people more for riskier loans today. Loans were given to the property owners and not the occupants or residents. Some D zones had more blacks, Latino residents because they were lower income and these areas are cheaper to rent, own. 80% of the D zone property was owned by white people. White people were the ones who got loans with higher interest rates in the "red" zones not POC. They still got loans, more loans than before the program. It was never "black residents = red zone = no loans for black people." The government programs actually brought a lot of money to all of the areas so they could improve their property or buy more property. There were no affordable loans prior to this. You mainly had to pay cash. Many old red zones are extremely affluent areas today like San Francisco, New York and Los Angeles. Research has proven it did not have a long term negative affect on those areas today. The entire report is riddled with this type of misinformation and lack of understanding. It's like the authors asked AI for summary of redlining but asked AI to make sure it was racist.

FTR I'm a Latina born and raised in Los Angeles and speak Spanish, English. I see racism every day in LA. I've been in real estate over 40 years. I specialize in single and multifamily properties in lower income areas of Los Angeles. I've appraised Section 8, low income housing projects, property in high risk areas. I'm 100% for fair housing and against racism. I know a thing or two about this issue. I'm the first to call out and fight true racism. There is so much real racism that it's ridiculous to waste time, energy and money stoking nonexistent racism against the Planning Dept and City. They should be working on the income gap. Huge waste of city funds to pay for this report.

I just sent an email to the leaders of the Planning Department.

I'm a Latina real estate appraiser, broker in Los Angeles. I've appraised real estate in LA in lower income areas for over 40 years. I've written about LA real estate for decades. I'm also involved in LA politics being nominated to the Prop F Committee by Mayor Garcetti.

I just read most of the LA Historical Housing and Land Use Study. I was upset by this inaccurate report so I wrote an article about it linked below. The authors of the "study" clearly don't understand the basics of economics or income inequality. This should have been peer reviewed before being published. People will now assume this is a true research study because the city paid for and sanctioned it.

The authors don't even understand the full history or implications of "redlining." There has been lots of peer reviewed and published research about the implications and long term effects of redlining. The authors presented a one sided view of the HOLC maps and loan program.

The worst part of this report is that it basically calls the current LA City Zoning and Planning Department racist. The authors believe that the Planning Dept can solve income and wealth inequality when the causes are under the jurisdiction of the labor department. It's as ridiculous as blaming the DMV because most white people can afford to own more expensive cars than most POC, Latinos. It's basic economics. The government needs to work on the income gap. FTR I'm Latina.

Yes, we do have racism and a housing crisis but it's not caused by past redlining. Light touch zoning, easing development red tape, reducing some building overregulation and overruling NIMBYs would make a big difference.

https://mary--cummins.blogspot.com/2024/09/racist-los-angeles-planning-report.html

DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Mary Cummins

Friday, September 20, 2024

Squatters, Graffiti at 7571 Mulholland Drive in Los Angeles, California by Mary Cummins Real Estate Appraiser

squatters, graffiti, vandalism, 7571 mulholland, los angeles, california, taggers, mary cummins, real estate appraiser,real estate appraisal, real estate, bel air, hollywood,

Home at 7571 Mulholland Dr in Los Angeles, California has now been covered in graffiti by the same vandals that vandalized Oceanwide Plaza. You see their tag namesi.e. AKER. Arrest them and make them work graffiti clean up in prison. #graffiti #vandalism #losangeles #california #marycummins #realestateappraiser #realestateappraisal #7571Mulholland

5725 sf home on 18960 sf lot 4 bed 4 bath built 2003. 2018 listed for about $5,000,000. Listed for lease 2020 for $49,000/month. Currently in foreclosure as of August 28, 2024. John Middleton is the owner. He owes $4.75M and home might be worth less than that in its current condition.