I own some investment properties that have done very well. In January one property had a pipe break in and sustained significant water damage; in March another part of that same property was completely destroyed by arson.  Fortunately no one was hurt. Had I not been properly insured, I would have been financially devastated.

From these two incidents, I have learned a great deal about filing insurance claims and seeing the recovery process through to completion. The first, and probably the most important, thing you need to do right away is making sure your home and investment properties are properly insured. You must have the “endorsements” or “riders” appropriate for your needs. A generic policy may be an acceptable start, but pay special attention to what makes your circumstances and properties different:

• Do you use your home for a home-based business?
• Do you operate daycare from your home?
• Do you have unusually valuable items stored on the property?

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Those of us who have lived in the Tri-Valley for a long time have seen many changes. As a Realtor I find that many home buyers jump into the home buying process without fully considering all of the opportunities and challenges here in the Tri-Valley.

1. Look to the future.

Which areas will best meet the needs for your family 5 years from now? Where will you work? Buying a home close to your current job may seem like a good idea. The shorter commute and more time with family make a lot of sense. The problem is that the job market is very unpredictable, and people frequently get moved around by their employers. When I was a kid, scientists, engineers, and computer experts moved from all over the country to Livermore for a career at Lawrence Livermore National Lab (back then we called it the “Rad Lab“). A career at the Lab was a safe choice, because many people like my father worked there for 30+ years until retirement. Those days are over.

One of my recent clients has a good job at Safeway corporate headquarters in Pleasanton. Over the years, Safeway moved him from Pleasanton to Concord and then back to Pleasanton. To choose the perfect location for his family, we reviewed traffic patterns along 580 and 680. We also looked at other Bay Area companies in his current field. We ultimately focused on a location that optimized the various factors under consideration and that gives him the most flexibility going forward.

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What does OPPORTUNITY sound like? Will you know it when it presents it’s self? In the current phase of the Tri-Valley real estate market the sound of opportunity is an annoying “Chirp…Chirp…Chirp…”

Walk the streets, drive slow, and listen for the annoying sound of chirping smoke detectors. Bank owned homes are sitting vacant, lawns are sprouting weeds, and smoke detector batteries are running low.

Notices posted on doors are a sign of the times.

For Buyers, this has been a time to become a neighborhood expert. If you really know values, it’s becoming possible to catch some really good deals. Be careful not to fall for the idea of “it last sold for $700,000 so $500,000 must be a good deal.” Work with your Realtor to establish the proper current price but also be realistic about the future.

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Short sales in real estate are becoming more common here in Dublin, CA, and the entire East Bay. Of the 255 Dublin homes listed as active or pending as of February 8, 2010, 133 are short sales. Basically, if you bought a home between the years 2003 and 2008, you very likely owe more on your loans than the home is currently worth. Being “upside down” on the loan alone will not have a substantive impact on you credit rating, if you continue to live in the home and keep paying your mortgage.

The situation can get a little sticky, if you want to sell. When the current market value of your home is less than the total of your loan balance and the expenses incurred during a sale, you can avoid damage to your credit rating by paying off the difference yourself. In reality most sellers do not have a large pile of cash just sitting around for such an occasion. If you have to sell, you may need to do a short sale.

Before we continue, let’s go back to when you first tried to buy the home you are now attempting to sell. Your lender loaned you the money to buy the home, and you promised the lender to pay the loan back. If you stop paying your mortgage for any reason, your lender has the right to take your home by initiating the foreclosure process. Four to five a months later, the foreclosed home will be put up for sale at a courthouse auction. If no one buys the home at the auction, the title of the home goes to the lender and the property becomes an REO, or Real Estate Owned by the bank. The REO home will be listed on the MLS by a Realtor working for the bank and sold to a new buyer. A foreclosure is devastating to your credit rating and does not always relieve you of the obligation to pay the lender back.

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Traffic engineers and planners like those who work for the City of Dublin, CA, call it “traffic calming,” but most of us call them speed bumps. Actually there are differences amongst the bumps, lumps, humps, and dips we see on city streets everyday.

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This home in a nice, older area of Tulsa, Oklahoma suddenly increased in value when the tree accidentally crashed into it.

Not due to excessive insurance, but something much more interesting. Can you think of why?

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I like Pergo (laminate floors), I have used it in my home, some of my best friends use Pergo, but…

I look at 15-30 homes per week, and I am getting sick of seeing Pergo. Sure, it has it’s place, but when a buyer is paying over a million dollars for a home they shouldn’t have to settle for “simulated” wood floors.

The newer laminates look surprisingly good, and at first glance might seem like the real thing. At least until you walk on it. The tell-tale hollow sound and spongy feel always gives it away.

As a Realtor my other concern is that laminates are really good at hiding all sorts of otherwise scary stuff. Cracks, critters, and our old friend mold. Frank Lloyd Wright said he was jealous of Doctors because they could bury their mistakes, but all Architects can do is suggest their Clients plant ivy. Pergo is the modern equivalent of ivy.

If you ask someone if the floor is real solid wood you need to be very precise. Many of the new snap-together floors are made with a man-made sub-straight and a thin veneer of real hardwood. The surface is real hardwood, but too thin to sand and refinish more than once. I find that many Realtors give incorrect information because they really don’t know the difference.

The picture below is the real wood floor at a listing I had in Concord.

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