You Can’t Sell It If You Can’t See It

Marketing a home can be extremely difficult if there are too many restrictions on the showings of the property.  I believe it is a good idea to have a plan that will enable the most showings of your property, which will probably bring the best price.  I am presently working with a buyer and plan to show properties that fit his needs during a three hour window.  Every home that I want show has instructions to meet the agent to show.  One property requires 48-hour notice to show.  The difficulty that arises is how to time the showings to allow the buyer to fully view the homes and try to calculate driving time from house to house.  I really do not want to have to say, “I know you like this house, but we have to go now so we won’t be late for our next appointment.”  If we are running ahead of time and reach the next house before the other agent gets there, I really do not want to sit in the car and wait.

When you list your property, it is wise to install a lock box.  The lock boxes we use today are electronic and our openers are updated daily.  In addition, the listing agent is e-mailed after the showing with the buyer’s agent’s name, contact information and showing time.  If you decide you really do not want to use a lock box, it might be a good idea to set apart certain times each day that an agent can call first and then just go to show your home.

Open houses for brokers are another effective way to show your home and these should be held throughout the listing period for maximum exposure.  I had a listing that I held open every week.  The last one brought only one agent, but she sold the house!  Public open houses should be held on Sundays, when you plan to be away for the afternoon anyway.  I always hold public open houses with my real estate partner so we can properly represent the property to multiple groups.  We require that each person log in to our guest book.

I know it is still difficult to have people streaming through your home.  Keep your home as clean as possible and then have a set regimen for what to do when you get an agent calling to show your home.  Clean the kitchen counters; make sure there are no dirty dishes in the sink; wipe down the bathroom sinks and toilets; make sure everything is put away.  One of my clients had five young children.  When an agent would call to show her house she would take a big garbage bag and throw any toys laying around and even half-eaten peanut and jelly sandwiches into it and toss the bag in the garage and off she would go.  The agents were able to show the house with little notice and it sold quickly.  Even if your home is not as perfect as you think it should be when shown, it is probably better to let the agent show it.  One listing I had was shown when the owner was not expecting anybody; she was very upset that there were toys strewn everywhere.  Well, that person bought her home for full asking price.  The important thing to remember is, “You can’t sell it if you can’t see it.”

 

Easy Steps for Removing That Musty Smell from Your Home

Because many of our Palos Verdes homes are on a hillside, lower stories are often below the grade and often there is mold growing in the rooms of the lower level.  This musty smell is repugnant to prospective buyers.  A few years ago, I learned from a home inspector that mold prefers natural materials on which to grow.  First, check inside the downstairs closets to see if there is mold on old leather jackets, boots, purses, shoes and remove them from the premises.  Next, visit your local Home Depot or Lowes and purchase bags containing a desiccant and hang them in the closets.  You will see shortly the amount of moisture there is in those spaces.  These bags will need to be replaced every month or so.  Open windows to get fresh air circulating throughout the lower level.  To add a very pleasant and not overwhelming scent, I recommend infusers that can be purchased at most department stores.  The plug-in varieties of deodorizers are obnoxiously strong and I would not recommend your using them.

Boost Your Home’s Value: 4 Projects with the Greatest “Bang for Your Buck”

No matter if the housing market is up or down, you always want to ensure home remodeling projects are wise investments.  According to Remodeling Magazine’s Cost vs. Value Report 2011-2012, there are several home improvement projects that will provide significant enjoyment to you now and could recoup a majority of your dollars whenever you decide to sell.

Beautiful bathrooms:  According to the report, a mid-range bathroom remodel ($16,000) can recoup up to 62% of the investment when it is time to sell…and in the meantime, add significant enjoyment with a new, relaxing retreat.  To start determine which updates matter most and how much assistance you will need for each.

Complex projects, such as structural, electrical or plumbing changes or installing countertops or flooring, may be best left to the professionals.  However, there are many updates you can tackle yourself.  Painting is an easy and ideal do-it-yourself task that can make a large impact with minimal cost.  Similarly, installing new faucets, accessories and showerheads can be simple, even for a novice. 

Classy kitchen:  Once you have updated your bathrooms, the kitchen is a rewarding home renovation that when done moderately can recoup up to 72% of your investment.  Based on your budget, you will need to determine whether to update with a lower-cost laminate or a higher-priced option, such as granite or marble, that can offer an upscale look, added durability and functionality.

Lighting, while functional, also adds a significant style element to a kitchen.  Replacing fluorescent fixtures with recessed cans or pendants will add ambiance and luxury to your room.  Update your old appliances.  Add a splash of paint to the walls and trim for a polished look.  Finish off the counter area with a new high-end kitchen faucet.

Envious entry:  It is the first thing your guests and future home buyers see when they approach your home, so if your front door is not appealing or does not have significant features, it is time for an upgrade.  A new entry door adds instant curb appeal for a minimal price and can recoup up to 60% of your investment.

When choosing a new door, fiberglass options are an ideal choice.  The material resists denting and scratching, is easy to maintain and can make your home more energy efficient.

Wonderful windows:  Similar to the front door, replacing your existing windows with new vinyl windows will give your whole home a new look and feel, both inside and out, and payback of up to 68% of your investment.  As a larger-scale project, this is likely a project left for the professionals.

Look to your local window distributor to refer you to a reputable contractor to ensure your new windows are installed properly.  When it comes to selecting windows, vinyl is an all-around excellent choice.  Unlike wood, vinyl windows resist rotting and do not require repainting.  Unlike aluminum, vinyl windows will never pit or flake.  Plus, you can enjoy a pay off immediately with increased comfort and lower utility bills, while potentially adding significant resale value to your home in the future.

 

Lack of Homes for Sale Boosts Sales Prices

Tight housing inventory hurts September home sales

A continued shortage of available homes for sale lowered California home sales in September, while the median price reached the highest level in more than four years, C.A.R. reported this week.  Sales in September were down 5.2 percent compared with August and down 1.2 percent compared with September 2011.  The statewide median price of an existing single-family detached home inched up 0.3 percent from August’s $343,820 median price to $345,000 in September.  The September figure was up 19.5 from a revised $288,700 recorded in September 2011, marking the seventh consecutive month of both month-to-month and year-to-year price
increases.  September’s median price was the highest since August 2008, when the median price was $352,730.  The year-to-year increase was the largest since May 2010.
“For the state, at 3.7 months of supply, unsold inventory is still less than half what it would be in a normal market,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “As a result of the constrained supply at the moderate and lower end of the market, sales of homes priced under $200,000 dropped nearly 28 percent, and homes priced $200,000-$300,000 fell more than 15 percent in September.  By contrast, in the upper price range, where inventory isn’t as much of an issue, sales of homes priced $400,000-$500,000 rose more than 14 percent, and those priced above $500,000 increased more than 15 percent.”

Go Ahead; Make the Offer

The inventory of homes on the market in the Palos Verdes  is only 40% of the inventory last year; therefore, some homes are getting multiple offers at present. If you find a home you like, make an offer.  My listing partner and I recently put a very desirable home on the market and held it open to the public the Sunday after we took the listing.  We did not advertise in the newspapers, but we put out ten lead-in signs.  We opened at 1PM and planned to close at 5PM.  We had so many people viewing the home that we did not close until 6:30 PM; definitely one of the best open houses ever.  One couple came through and said they wanted to submit an offer through their agent.  They said the house was over priced and asked me what they should offer.  I told them to talk to their agent, as I represent the seller.  Their agent called me and said they might make a low offer or simply wait until the price came down.  I told the agent, “That won’t happen with this property.  It will be sold by the end of the week.”  Another couple came through who really liked the home.  The wife is an agent and I told her not to wait and to make the best offer they could because there were other people interested in the house.  They wrote a good offer and the house sold for near the asking price.  The couple who were waiting for the price to come down were very disappointed and their agent called me urging me to let him know if anything went awry with the accepted offer.  Again, if you find a home you love, make the offer.

I had another listing recently where a prospective buyer asked me to find out what the sellers’ bottom line was because he did not want to go back and forth with offers and counter offers.  I got the sellers’ bottom line and relayed it to the buyer, but he continued to dally.  Another offer came in and I called the dallier.  The bottom line is that he ended up paying a hefty sum more for the home than he would have had he made the offer before another offer came in.

I know that there is still a lot of fear about paying too much for a home in today’s market, but remember that a home is more than just an investment.   Your home is where you will live and not just any home will do. When you find the home that you love, make an offer.

 

Understanding Short Sales

A short sale is a sale of a home that is worth less than the mortgage owed.   Because these properties are often listed at a price lower than their values, you may be able to get a good deal, if you have a tremendous amount of patience.   The problem is that the only motivated people in the transaction are the agents and the buyer.  If you decide to make an offer on a short sale, it will generally be submitted by your agent to the seller for acceptance, subject to the short sale lender’s approval.  This can take months, so I tell the buyers, “This will take a lot of time, so don’t call me up, whining about it.”  There really is nothing you can do to speed up their decision.

It is very important to structure the purchase contract such that it gives the buyer an out of the contract if an acceptance is not obtained within a certain time-frame.  Also, it is best to have the different time-frames for inspections, putting the deposit into escrow, obtaining the loan, and so on begin at lender approval of the deal rather than at seller’s acceptance.  We have a very good short sale addendum that is required for every short sale transaction.

It is very important to have a short-sale property inspected by a professional home inspector.  Many times the upside-down seller has not maintained the property.  Very rarely will the short-sale lender agree to pay for any repairs, so it is a good idea to get a contractor’s bid to repair the items so you will know if  the cost is unaffordable.

The short-sale lender will come after the buyer and the agent for money.  One of my buyers said, “Tell them to go pound sand!”  The lender stopped asking him, but then they came after me for some the commission.  If there is more than one lender, the sale is even more tedious.  Unless the lender in first position comes out with what is expected, they will try to cut down on proceeds going to the junior lien holders.

Someone purchasing a short-sale property should just be prepared and patient and don’t get mad (they don’t care!) and a good agent comes in handy, too.