Dear Michael: What does Median price of a home in an area actually mean?
Answer: The median house price is the midway point of all the houses sold at market price (or sold amount) over a set period (usually year-to-date) in a given area. If there were 100 houses sold during the year, the median house price would be the average house price in the middle at the 50 mark. The reason the median price is used is because it is an accurate calculation of the median market. The median price is only one factor that sellers and buyers should consider. All properties are different so it is important to talk to your real estate agent and search comparable sales in your area to evaluate if your home is higher or lower than the median price.
Dear Michael: What is probate and why is everyone telling me it should be avoided?
Answer: Probate happens when an heir dies intestate (without a will). It is the statutory process required to distribute assets to a deceased person’s heirs, It is done through the Probate Division of the Superior Court of California, When one’s assets go through probate, the entire process is a public record. The estate of the deceased also racks up attorney fees that are required by statute, in addition to court costs, and fees awarded to the executor of the estate, based on the overall value of that estate. Depending on how much estate planning the deceased person engaged in, there may be other costs involved in appraising the assets in the estate, and even to simply locate them. This is bad for at least two reasons: (1) there’s a lot of more time involved for the executor; and (2) there’s money required to be paid, which ultimately is taken out of the estate, making the property distribution less to the beneficiaries than what it could have been with proper planning. One of the best ways to avoid probate is by creating a living trust. Please consult with a trust attorney.
Dear Michael: We are getting ready to close escrow on our new home. At closing does the seller or buyer pay the property taxes?
Answer: Property taxes are pro-rated from the date of closing. The seller pays the days he/she owned the house until closing, and the buyer pays any remaining days left for the current tax bill as well as any supplemental bill that is due within 60 days of the closing. Your property tax bill runs from July 1 until June 31. Property taxes may be negotiated as part of the purchase agreement – if the seller’s agreement to pay the upcoming tax bill is enough to make a price agreeable to both parties, there is nothing stopping the parties from making this agreement before a purchase contract is executed, but this rarely happens.
Michael Kayem is a Realtor with Re/max /Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
