How to Price Your Home to Sell

Getting the price right is the most important factor when you are putting your house on the market.  Here are some hints for setting the price just right:

1.  Look for information about similar homes that have sold and closed escrow, those that are in escrow, and those that are presently on the market.  The location, condition, amenities should be close to those of your house.  We are in an area where many homes are custom and have unique floor plans.  Even the best comparable homes are not just like your home.  Only in a tract or condo development will the homes have identical floor plans.  I usually look at homes of similar square footage, using a range based on the size of my client’s home.  If the subject property is 2500 square feet, I would probably search in sizes ranging from 2100 to 2900 square feet.  Some of the homes found will have additional bedrooms and bathrooms and I will make adjustments to the price based on statistics obtained from the Multiple Listing Service.  The presence of an ample backyard is a big factor.  A swimming pool, I have found, is a feature that usually does not add value or subtract value for most buyers.

2. Time on the market is an important factor.  In a normal market homes should sell within thirty days if they are priced correctly.

3.  When pricing your home, try not the be at the top of the price range for similar competing homes; this is a factor often overlooked by homeowners and agents.

4.  If you put your home on the market and you are having a lot of viewings, but no sale, your price is probably too high.  If you are getting very few showings, there may be something wrong with the property itself.

5.  If your home is not in escrow within the first thirty days on the market, I recommend cancelling the listing and re-listing it, rather than simply lowering the price.  Homes that are new on the market, or appear to be new on the market, always get more attention and are many times e-mailed out to prospects put into the system by their respective agents.

6.  Look at the situation often, as new houses come on the market and hopefully many are selling, as well.

Contact me for a complimentary market evaluation of your home!

Homebuyer Do’s and Don’ts When Getting a Loan

  • DO continue to make payments on time for current mortgages, cars, credit cards, etc..
  • DO paper trail, document, and explain any large or unusual deposits or withdrawals into accounts such as checking, savings, stock, etc.
  • DO keep pay stubs, bank statements, tax forms, etc., in case the lender needs to update the documentation prior to closing.
  • DO ask questions if something is unclear about the loan program, fees, and/or loan conditions.
  • DO let the loan officer or mortgage broker know if anything changes, for example, your employment, income, assets, credit history, etc.
  • DO document that the earnest money deposit has cleared your account; obtain a copy of the cancelled check and/or statement that reflects the funds have cleared.
  • DO lock-in the interest rate.  These are ordinarily thirty to sixty days and definitely worth it if rates are trending upward.
  • DO have homeowner’s insurance agent information available and provide updated documentation (pay stubs, bank statements, etc.) in a timely manner so as not to delay the closing.
  • DO NOT increase credit card balances and/or loan balances.
  • DO NOT apply for additional or new credit or put balances on a paid credit card.
  • DO NOT ignore late payment and/or collection notices that are received during the loan process.
  • DO NOT purchase anything that is “same as cash”, as it will show on the credit report as a new debt.
  • DO NOT buy furniture, a new car or appliances on credit until after closing.  This is the most common “don’t” action that has occurred during my sales.
  • DO NOT lend money to family members or friends if the money is needed for closing.
  • DO NOT store money at home; place it in a bank account so it can be documented as savings throughout the loan process and can qualify as assets on hand.
  • DO NOT have overdrafts on a checking account.
  • DO NOT quit or change jobs during the loan process.

 

 

De-clutter Your Home

Consider this list of creative ways to de-clutter your home:

1. Give yourself 5 solid minutes: Put at least twenty-five items away in five minutes.  If the item does not have a home, or is no longer needed, place it in a donation box.  2. Give away one item each day. This is manageable de-cluttering, simply done one item at a time.  3.  Fill one trash bag: This is an easy way to process excess papers and packaging that is no longer necessary.  When the bag is full, you are done with that task.   4.  Try the Closet Hanger Experiment: To identify wardrobe pieces to clear out, hang all your clothes with the hangers in the reverse direction.  After you wear an item, return it to the closet with the hanger facing the correct direction.  After six months, you will have a clear picture of which clothes you can easily discard.   5.  Take the 12-12-12 Challenge: A simple task of locating twelve items to throw away, twelve items to donate, and twelve items to be returned to their proper home can be a really fun and exciting way to quickly organize thirty-six things in your house. You can select a smaller number for children to process.  6. The Four-Box Method: As you set out to de-clutter an area, set up four boxes:  trash, give away, keep, and relocate.  Each item in every room is placed into one of the four categories.  No item is passed over; each is considered individually.  Some projects may take an hour and others may take days or weeks but the technique and principles remain the same.  No matter what you choose to help you get started – whether it be one of these six or one of countless others – the goal is to take your first step with excitement behind it.  There is a beautiful world of freedom hiding behind that clutter.

Interesting 90275 ZIP Code Facts

The 90275 zip code is the City of Rancho Palos Verdes.  There are 15,633 households of which 76% are owner occupied; 66% are married; 39% have children.   The median home sales price is $845,000.  The median age of the inhabitants of this zip code is 32.37 years; 33% have bachelor degrees and 23% have graduate degrees.  82% are white collar workers, mostly in service industries and most commute by car thirty-one minutes to their places of work.

This information was obtained from the Realist tax portion of our Multiple Listing Service and though believed to be accurate, is not guaranteed.

 

How the Real Estate Business Works

I was recently working with a prospect who was looking for a lease property and that experience is what has prompted me to write this post.  I met this person and showed her some homes.  I had mentioned to her that the homes she was finding on other web sites came from our Multiple Listing Service and I would be able to show those properties.  She notified me about homes she found on one of the sites but when I looked them up, they were not listed.  I told her she would have to contact the owner or agent direct and I was kicking myself because I did not explain to her how our business works.

The Multiple Listing Service is not just a list of homes on the market.  When a property is listed for sale or lease, that listing agent is offering compensation to the cooperating agent.  If the commission is 6% the compensation to the cooperating agent is usually 3%.  If a property is not listed we cooperating agents are not entitled to a commission; therefore, we may be working for nothing, which, of course, agents cannot afford to do.

We have the capability of putting prospects on an auto-e-mail program that will notify them when new listings come on the market.  A person’s finding just the right property, I believe, is contingent upon working with an agent he trusts to keep him apprised of new or price-changed listings and to be there to show him the property.  That buyer’s agent will be working just for that buyer.  Look for an agent who is not only responsive, but also a good negotiator who is up on the latest legal requirements for real estate transactions cialis 20mg en ligne.  Ask the agent for recommendations from other satisfied buyers.  A listing agent who represents you as a buyer may have a conflict of interest, as he is also representing the seller.  Be sure to ask how he will handle the situation.  He will have to ask himself over and over, “Is this in the seller’s best interest; is this fair to the buyer?”

Good luck with your real estate purchase. and be sure to contact me if you need assistance.

Proposed Tax Code Reforms Could Harm Real Estate Recovery

According to the California Association of Realtors, in late June, the U. S. Senate announced plans to adopt a “blank slate” approach to reform the tax code.  A blank slate approach would eliminate all tax expenditures (including tax deductions such as the mortgage interest deduction, tax exemptions such as the capital gains exemptions on the sale of a personal residence, and the deduction of state property taxes).  Senators will have to request tax expenditures be added to the reform legislation, which would raise tax rates.  This approach allows the Senate Finance Committee to highlight just how much tax rates could be reduced by eliminating all the tax expenditures.  Senators have until July 26th to request that real estate expenditures be added to the reform legislation before the Finance Committee begins drafting a tax reform package.  What can you (we) do?  It is imperative that we have our voices heard and encourage Congress to “do no harm” to real estate.  Contact your representatives today.