How to resolve dispute with contractor

A significant portion of these renovations are carried out without problems. A contractor is paid to perform your renovations, they do the work, and you’re happy with your new and improved kitchen, bathroom, or great room. It is, however, well known that not all renovations end with a better home. Almost all of us know someone who has — or we have, ourselves — dealt with a contractor who did not perform the work as promised — or even worse, failed to perform the work at all.

For those who discover themselves in a quarrel with a contractor, finding recourse is far from simple. As is often the case, there are options for legal action. Depending on the amount of damages being claimed, Small Claims or Superior Court would be an avenue to pursue to receive compensation. The California Department of Consumer Affairs’ Contractors State License Board is another resource, where you can file a complaint that can be resolved either in or out of court, with mediation being an option.

When dealing with a contractor dispute, it can help to assume there is a way for the contractor to repair work that was not up to par, or redo modifications that did not come out as planned. While it is easy to assume that a substandard result was due to negligence or lack of quality, it could have been an unintended consequence of a design flaw or bad materials. Taking a response-based approach utilizing positive assumptions can open the door for your contractor to right the wrong and put the dispute behind you.

Assuming that there is a way for your contractor to make things right before pursuing a punitive action can save you time and money in the long run. Just as negative assumptions can impede your path toward finding a solution, positive assumptions can be the difference between an expensive legal battle and an end to your renovation woes.

read more: https://www.sandiegouniontribune.com/news/mediate-this/story/2019-07-18/a-contractor-dispute-how-to-respond-rather-than-react

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San Diego annual home price gains dip below 1%

Annual home price gains in the San Diego metropolitan area were below 1 percent for the first time since 2012, said the S&P CoreLogic Case-Shiller Indices released Tuesday.

San Diego metro home prices were up 0.8 percent in a year — a major change from one year ago when the market had seen a 7.8 percent annual increase.

April’s numbers reflect slowing price appreciation across the nation, which experts generally attribute to affordability issues after years of home costs outpacing wages. Nationally, home prices were up 3.5 percent with low-cost markets showing the biggest gains.

San Diego had the lowest price gain of the 20-city index, but Seattle had no price gain. Other slowed markets were Los Angeles, up 1.5 percent in a year, and San Francisco, up 1.8 percent in a year.

read more at: https://www.msn.com/en-us/finance/realestate/san-diego-annual-home-price-gains-dip-below-1-percent/ar-AADpy0V

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Home flipping trend weakens

Wall Street giants and individual retirees alike have pumped billions into financing home flips in recent years. Now, a slowdown in the flipping business threatens to rain on the party.

So-called “hard money,” which comes from sources other than banks and which carries higher interest rates, is hard to track because it’s fragmented and littered with thousands of small players doing one or two deals a year. However, a for-profit trade group called the American Association of Private Lenders estimates the number of hard money lenders and related “private money” lenders at 8,300, or up almost 40% since 2016.

Most of that money is bound for real estate investors. The volume of loans to people who are buying homes to renovate and resell rose to about $20 billion last year, according to real estate tracker Attom Data Solutions. That’s up 37% from 2016 and almost double the figure from five years ago. Attom can’t be sure how much of that comes from hard money sources versus banks, but industry players believe they make up a majority of such loans.

“There’s a lot of activity. Every time I turn around there’s new entrants,” said Glen Weinberg of Fairview Commercial Lending in Evergreen, Colorado. While he will only loan up to 60% of a property’s value, some of the newer lenders will go up to 90%, Weinberg said.

Big institutions like Blackstone Group LP and Goldman Sachs Group Inc. have gotten into the business, attracted by interest rates of 8% to 12%, as well as two or three percentage points tacked on for the lender. Today, private equity firm KKR & Co. Inc. said it would boost its commitment to Toorak Capital Partners to $500 million from its earlier $250 million investment. Toorak buys short-term home flip loans, sometimes known as bridge loans, from originators. Crowdfunding companies like Atlanta’s Groundfloor Finance Inc. have poured in, too. That company gathers up capital from thousands of small investors and is loaning about $12 million a month, primarily to real estate investors, said co-founder Brian Dally.

read more at: https://www.bloomberg.com/news/articles/2019-06-12/high-interest-lenders-up-40-even-as-home-flipping-trend-weakens