What is an Estate Plan?

By Allison Harvey, Attorney, A. L. Harvey Law, PLC

The biggest misconception is that estate planning is only for the wealthy. Everyone has an estate. If you own a home, car, other real estate property, bank accounts, investments, life insurance, furniture, personal belongings you have an “estate” and need a plan when you’re not able to make decisions. To ensure that your estate is protected and that your wishes are carried out, you need to provide instructions stating who you want to receive your properties, what you want them to receive, and when they are to receive it.
The following tools are some of those that make up an estate plan. You may want all in your plan or just one. Read along to better understand each tool.
A revocable trust is an agreement between the person who creates the trust (you) and the person who manages the trust assets (generally you while you are alive). The trust agreement will dictate who will manage your assets when you no longer can, where your assets will go upon your death and how your beneficiaries will receive the assets. The trust can also designate when you want your children to receive the property held in trust so they don’t receive it all at age 18. A properly drafted revocable trust should avoid the costly and lengthy probate process and allows your beneficiaries to receive assets much quicker. Generally speaking, a trust of this nature allows for changes during your lifetime.

A will is a document that designates who will receive your assets upon your death. It also can designate the guardian of your children. This does not allow you to avoid probate. A pour over will is a tool that is used in conjunction with your revocable trust. It is different than a standard will. A pour over will designates that all property not held in trust will pour into your trust upon your death. This type of will helps to show that you intended your property to be held in trust and can assist in avoiding probate.
An advanced healthcare directive provides your doctors with instruction about what type of health decisions you would want made if you are incapacitated and unable to do it yourself. It also provides authorization to another individual to make decisions on your behalf in accordance with the instructions in

The 5 Biggest Turn-Offs for Homebuyers

Written by Blanche Evans - Provided by Fred Eichenhofer, Sierra Pacific Real Estate

“Your agent can't get you the price you want unless your home is in pristine move-in condition.  That means no sticking drawers in the kitchen.  No leaning fences.  No rust-stained plumbing fixtures.  We could go on, but maybe we need to make it clear.  If you have even one of the following “turn-offs,” your home won't sell”.  (Fred's comment; every home will sell, but it may not be at the highest price possible because of the condition of the home, and the location.) Buyer's can get instantly turned off.  Here are their five biggest turn-offs:

1 - Over pricing your home

Overpricing your home is like trying to crash the country club without a membership.  You'll be found out and escorted out.
If you ignored your agent's advice and listed at a higher price than recommended, you're going to get some negative feedback, of course, is silence.  That could include no showings and no offers.
The problem with overpricing your home is that the buyers who are qualified to buy your home won't see it because they're shopping in a lower price range.  The buyers who do it will quickly realize that there are other homes in the same price range that offer more value.

2 - Smells

Smells can come from a number of sources-pets, lack of cleanliness, stale air, water damage, and much more.  You may not even notice it, but your real estate agent may have hinted to you that something needs to be done.
There's not a buyer in the world that will buy a home that smells unless they're investors looking for a bargain.  Even so, they'll get a forensic inspection to find out the source of the smells.  If they find anything like undisclosed water damage, or pet urine under the “new” carpet, then they will either severely discount their offer or walk away.

3 - Clutter

If your tables are full to the edges with photos, figurines, mail, and drinking glasses, buyers' attention is going to more focused on running the gauntlet of your living room without breaking any Hummel's than in considering your home for purchase.
Too much furniture confuses the eye-it makes it real difficult for buyers to see the proportions of rooms.  If they can't see what they need to know, they move on to the next home.

4 - Deferred Maintenance

Deferred maintenance is a polite euphemism for letting your home fall apart.  Just like people age due to the effects of the sun wind and gravity, so do structures like your home.  Things wear out, break and weather, and it's your job as a homeowner to keep your home repaired.
Your buyers really want a home that's been well-maintained. They don't want to wonder what needs to be fixed next or how much it will cost.

5 - Dated Décor

The reason people are looking at your home instead of buying brand new is because of cost and location.  They want your neighborhood, but that doesn't mean they want a dated-looking home.  Just like they want a home in good repair, they want a home that looks updated, even if it's from a different era.
Harvest gold and avocado green from the seventies; soft blues and mauves from the eighties, jewel tones from the nineties, and onyx and pewter from the oughts are all colorways that can date your home.  Textures like popcorn ceilings, shag or berber carpet, and flocked wallpaper can also date your home. When you're behind the times, buyers don't want to join you.  They want to be perceived as a savvy and cool.

In conclusion, the market is a brutal mirror.  If you're guilty of not putting money into your home because you believe it's an investment that others should pay you to profit, you're in for a rude awakening.  You'll be stuck with an asset that isn't selling. (Fred's comment; all homes will sell, the sales price will be dependent on the condition of the home, and location.  The less the buyer has to do to update the home and a good location, a seller should receive a higher sale price everything else being equal.)

Distressed Housing Market Shrinks Dramatically

Provided by Fred Eichenhofer, Sierra Pacific Real Estate

Vastly improved home prices over the past five years have changed the landscape of California’s distressed housing market, which is now just a fraction of what it was during the Great Recession, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.
In January 2009, 69.5 percent of all homes sold in California were distressed, which includes short sales and real estate-owned (REOs) properties. Five years later, that figure has shrunk to 15.6 percent.  More specifically, REOs comprised 60 percent of all sales in January 2009, while short sales made up 9.1 percent of all sales but rose to as high as 25.6 percent in January 2012. Short sales currently make up 9.2 percent of all sales.
During the same time period, California’s median home price has soared more than 64 percent from $249,960 in January 2009 to $410,990 in January 2014.
“The dramatic drop in the share of distressed sales throughout the state reflects a market that is fully transitioning from the housing downturn,” said C.A.R. President Kevin Brown.  “Significant home price appreciation over the past five years has lifted the market value of many underwater homes, and as a result, many homeowners have gained significant equity in their homes, resulting in fewer short sales and foreclosures.”
The statewide share of equity sales hit a high of 86.4 percent in November 2013 and has been above 80 percent for the past seven months.
In some of the hardest hit California counties, the distressed market in January 2009 was 93.6 percent in Stanislaus County, 93 percent in San Joaquin County, 89.5 percent in San Benito County, 86.1 percent in Kern County, 85.6 percent in Sacramento County, 84.2 percent in Fresno County, and 83.6 percent in Monterey County.  The distressed market now has shrunk to 24.8 percent in Stanislaus,  25.1 percent in San Joaquin, 17.5 percent in San Benito, 18.4 percent in Kern, 19.9 percent in Sacramento, 26.3 percent in Fresno, and 16.9 percent in Monterey counties.
Of the reporting counties, San Luis Obispo, Orange, Santa Clara, and San Mateo counties held the lowest share of distressed sales in January 2014 at 10.2 percent, 9.5 percent, 7.7 percent, and 6.8 percent, respectively.
Find this article at: http://www.car.org/newsreleases/2014releases/distressedmarket  California Association Realtors Web Site.

Home Selling Insight

By Fred Eichenhofer, Sierra Pacific Real Estate

Why do some homes sell in days when others take months or don’t sell at all?
 When sellers or their real estate agent overlook any of the important ingredients of a successful sale, a home can linger on the market. Here are 3 reasons why a home doesn't sell quickly:

1. Asking Price is Too High.  When a home first comes on the market, the list price should be at or near the market value so buyers see it as a good value and put in an offer. The first 30 days are crucial! Pricing a house is very important even with low inventory. When buyers do not see the value in the home at the current listing price, or it’s priced far above a reasonable price range for the current market, buyers usually will not look at the house or write an offer.

2. Poor Marketing. Most real estate agents will do nothing more than put the house in the MLS (Listing system). You want an agent that will be aggressive with their marketing especially within the first 30 days. It is amazing how many agents will place a house on our listing system with no photos for days, thereby missing potential buyers that have already viewed the listing (without a photo), drastically losing potential buyers interest.

3. Home is not staged properly. A buyer wants to buy a home they can imagine living in with their family. Get the facts on how to stage your home properly. When buyers walk in the home, they should be able to envision themselves in the house as their new home.
 It is important to hire a Realtor you feel comfortable with, and a Realtor experienced to deal with all of the intricacies of a real estate transaction.
 Many times we see sellers select an agent that said their house would sell at a far higher price than the market would bear, only to sell months later at a price lower than other agents suggested. Be careful not to base your decision solely on an agent that gives you a price range higher than others, or one who will instantly cut their commission…keep in mind the old saying “You get what you pay for”.  There are a lot of expenses a listing agent incurs in order to market your home properly, other agents may not do because of the expense involved.  Lack of marketing to the public is a disadvantage for a seller, as well as initial pricing of a home. Marketing and pricing are very important aspects for a successful sale of a home.

Oktoberfest 2012 in Meadow Vista

2011 Meadow Vista Community Service Award Recipient

Submitted by Meadow Vista MAC

Each year, the Meadow Vista MAC recognizes one of the community's special individuals with a Community Service Award.

Fred Eichenhofer has been selected as the 2011 Meadow Vista Community Services Award Recipient. 
 Fred's service to the community has been diversified.   Since 2005 Fred has sponsored Oktoberfest, a large community event. He pays for everything that isn't donated and puts in his own time and labor to make sure the event is successful.  Fred chose the Meadow Vista Community Center to be the recipient of this successful fundraiser.

Fred joined the Community Center board several years ago and has recently filled the position of co-chairman of the board.   He devotes many hours to this organization.
 Fred is also a member of the Meadow Vista Merchants Association and the Meadow Vista Lions.  He attends meetings of both groups and helps out with their projects.
 During the summer months, “Movie Night Under the Stars” produces funds that go directly to the MV Pool project.  Fred purchased a projector, speakers and concession stand materials to facilitate the events.   Funds from a Gingerbread Decorating Event and previous movie nights at The Beda Place went to the MV Pool Project also. 
 Fred built the stage in the lot next to our post office and lets other community groups use it free of charge.  He installed water and electrical to the empty field to help facilitate functions, all at his own cost.  Fred also donates all of his notary fees, free of charge asking the client if they would like to make a tax deductible donation to the community center in the amount of their choice.
 It is certain the community will continue to benefit from his efforts and generous financial donations for many years to come.

At the Meadow Vista MAC Meeting, June 1, at 6 PM, Placer Hills School, the award will be presented by Placer County Supervisor, Jennifer Montgomery.  A tree will be planted in Fred's honor in Meadow Vista Park.  Fred and recipients of the award in previous years will be invited to ride in the Pioneer Parade.