San Diego Short Sale and Foreclosed Homes

 
 
This may seem a bit harsh but it is just plain speaking honest commentary regarding my experience as a buyer's agent.  The statements below are taken directly from the comments and behaviors of buyers viewing homes for sale.  It not meant to be negative but rather is meant to give sellers a bit of a look into the buyer's head.  A chance to see things from the buyer's perspective without the candy coating we agents typically put on things.

10) Leave your "friendly" dog roaming free inside the house when you know we are coming to see it.

Not all buyers are dog people.
Many whether they are dog people or not will actually be scared of your dog.
I have had clients refuse to go into homes because the dog was out.  Or they go in but don't stay long because the dog is either scared of them or overly friendly.  It's hard to pay attention to a home when your nether regions are being inspected by Fido. 
If the buyers are true dog people they are going to focus on the dog not on the house.
Trust me I have seen it happen.  
One way or the other your pet has effectively distracted the buyer from looking at your home.

9) Leave something aromatic cooking in the crock pot for your dinner that night

Not all buyers are going to be fans of your food choices.  In fact if it is particularly aromatic and something the buyer's don't care for, they are likely to ask me if I think the smell will come out or leave quickly because they don't like the smell.  
They were so focused on your food choice they didn't look at your house.

8) Keep photos of your family up throughout the house

Guess what, buyers are going to look at your family photos to try to figure out who you are, do they know you, how many kids do you have?

Guess what they are not doing?  Looking at your house.

7) Keep all your nick knacks out

I know they are precious to you but honestly they are distracting to the buyer.  Instead of looking at the fabulous mantle the buyer will be looking at all the items on the mantel.  As with family photos, buyers will often comment on these items trying to form opinions on who you, the sellers, are rather than focusing on the home.

Pack them up in boxes so you have one less thing to do later on moving day.

6) Make it difficult for me to show your house

I know selling your home is a pain, that you have a life and the appointment time I'm suggesting might not fit into your schedule.   
But, hey I have a buyer that wants to look at your house.  
You want to sell your house right?  
Know what happens when you can't make that appointment time work?  The buyer goes and looks at other houses that are available to see at that time.  Do buyers reschedule to see your house at a later date?  Often times not.  Many buyers find another home that they like or are just not interested in going back to see one they couldn't see right away.  I am not saying that you have to turn your life completely upside down and backwards.  I am just saying that if our appointment time does not work for you don't be surprised when we don't reschedule.  The buyer is likely to have moved on.

5) To continue on the pet theme, leave your cat roaming free throughout the house with a note by the front door stating "Please do not let the cat out".

You are setting up a stressful rather than relaxing situation for the potential buyer and for me the buyers agent.  Buyers are forced to dash in and out of doors rather than wander freely throughout the home and property.  They miss out on the opportunity to call back into the house to their spouse or partner that "they have got to come see this garden, bbq area, hot tub etc" because they had to shut the door so the cat didn't get out.  If they do get wrapped up in looking at the house and forget to shut doors I have to remind them instead of pointing out the features and benefits of your property.  You just made me the nagging hall monitor instead of the helpful agent.  When your pet does manage a jail break, as I swear 99% of them do, I am forced to give chase to Houdini the Wonder Kitty.  Meanwhile my buyers are cooling their heals either irritated that we are off schedule or more likely worried that you are going to be mad if we don't catch your pet and get them back inside your home.

Again the focus has been shifted away from your home.

4) Don't replace burned out light bulbs or use low wattage bulbs.

Yes I know it's only the laundry room, a closet or the spare bedroom you never use but guess what? The buyer wants to see these spaces and when the buyer can't see it they can't form an opinion.  Use a good high watt bulb that appropriatley lights the space.  While the lower wattage bulb will save on your electric bill it will also make for a dark space.  Dark spaces do not impress buyers.  I will typically bring a flash light to help out when a bulb is out but it is still not the same as having a working bulb with the appropriate wattage to light the room to the best benefit.  Buyers will focus on the burned out bulb instead of the space.  Is it just the bulb?  Is there something wrong with the fixture?  If the bulb is dim buyers will focus on how dark the space is instead of how useful it might be.

Don't give them a chance to wonder and worry just replace the bulb and show off the assests of your home in the "best light".

3) Close all the curtains and turn off all the lights

When we walk into the house instead of immediately noticing the great things about the house we are going to be fumbling around looking for light switches.  It is likely that either I or one of the buyers may stub a toe on a hall table trying to find the switch.  Buyers are hesitant to enter dark areas.  In a home that is dark the buyers tend to follow me around as I turn lights on instead of lingering in various rooms to focus on what they might like about a room.  They feel more like they are intruding and less like they are welcome.  Instead of paying attention to the homes benefits they worry about whether they remembered to turn a light off as they left a room.   They also don't get as much of my attention because instead of being able to answer their questions about whether or not the fridge is included or what the square footage of the lot is I am running around opening and shutting drapes and turning light switches on and off.

I know it may not be practical to leave all the drapes open and all the lights on all the time.  At least leave the drapes open on the windows with the best views and leave a few lights on so we can find our way around the house.  If it was on when we got there I will leave it on when we depart.  If it was off I will turn it off.  Please at least leave the porch light on.  I do carry a flashlight but it is just not the same as pulling up to a home with a welcoming porch light on.

2) Turn the heat down

I know especially if you have already moved out that you would like to save on that energy bill but if it is colder in your house than it is outside buyers don't want to linger.  They don't get a warm cozy feeling from your home.  They just feel cold and that feeling transfers to an emotional opinion of your home.  If you can't keep the heat all the way up at least keep it at 55 so we are comfortable in our coats and for heaven sake if you are going to turn the heat down don't expect us to take our shoes off, leave some shoe covers.

One of the quickest ways to drive a potential buyer out of your house is to make them view a cold house in stocking feet.  It is hard to admire the spacious kitchen when your feet are being flash frozen by the cold tile floors.

1) Stay in your home while we are showing it

This is the BEST most SURE FIRE way to make a large majority of buyers uncomfortable.  Buyers don't even come close to paying attention to the features and benefits of a home if you are there.  They are so nervous about offending you and so uncomfortable looking at your home while you sit in your living room or worse follow them around that they rush through. They will tell you thanks for letting them look and dash out. Upon leaving they can't begin to tell me if they noticed what colors the wall were, if there was carpet in the living room or if they liked the kitchen or not. 

What they do tell me is "That was uncomfortable", "I don't like looking at homes when the seller is there" and "Can you make sure the seller will be gone at the next one, if they are there I don't want to see it"

Leave, even if you go sit in your car, take a walk around the block or dash over to your neighbors, just leave.  The buyer will stay longer and pay more attention to your home then if you are there.  If they are interested in your home and have questions I will call your agent and ask.  Think about it.  Would you feel comfortable wandering through someone's master bedroom and checking out the closet space while they were sitting in the living room?

If the buyers fall in love with you home and decide to make an offer there will likely come a time where they will want to meet you and discuss your home at length and in detail with you. Typically buyer's and seller's agents are more than happy to set up this meeting.  It is just not the first time the buyers are viewing your home.

Again, Please keep in mind these statements are meant to be helpful to sellers and give them a chance to look at things from the buyer's perspective.  These are just some of the things that may not typically be thought of as a big deal but do in fact distract buyers focus. 

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Here's how it happens:

Step 1: A seller lists their property in San Diego with a Realtor. Realtor does a Comparative Market Analysis (CMA), and determines the home is worth $250,000, and the seller decides to list the home for $275,000. 

Step 2: House fails to sell. Meanwhile, the home down the street sells for $250,000. After 6 months, the seller decides the agent hasn't done their job and fires them. 

Step 3: Seller hires a new agent, and lists the house for $250,000. The current CMA shows the home is now only worth $225,000. Once again the home is overpriced because the market value is declining. The house sits on the market for another 6 months without a single offer.

Step 4: The agent can't sell the overpriced house, so the seller fires them, and hires someone else. The home has been on the market for a year now, with 3 different agents. This time, the seller lists the home at $225,000. Again, the market has declined and the home is only worth $200,000. 

Step 5: I think you get the idea here....

The problem is not with a bad agent who listed the house, nor is it because the market is bad. The problem is a bad seller. Had the home been listed for $250,000 from the start, it would have sold. Every month the property sits on the market is another month that the home is losing value, and as time goes by less and less people even bother to view the property. The other thing to bear in mind is appraisers look at the same comparable sales that we as Realtors look at. If the market analysis can't support a listing price of $275,000, odds are good that the appraiser won't be able to support the price either.

The Solution:
As a Realtor, my solution is simple. If the seller is determined to list the home for a price that I feel is unrealistic, I don't have to take the listing. It doesn't make sense for agents to take 'dead on arrival' listings like that because we don't get paid for our services on homes that don't sell. For a seller, if you think your Realtor's analysis of your home is inaccurate, it might be a good idea to have a formal appraisal done on the property. It's extremely rare for someone to be able to sell a home for more than the appraised value because lenders will not write a loan for more than a home is worth. There are lots of appraisal companies in San Diego, and the cost is generally a couple hundred dollars. It's a small price to pay in order to be able to sell your home for $250,000 now rather than waiting months or years to find out the home has lost $100,000 in value. At the end of the day it just doesn't make sense for sellers or agents to list properties for more than they are actually worth. I understand wanting to make sure you don't get as much as possible for your home, but listening to the expert opinion of your Realtor can make the difference between a sale and a foreclosure.
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A new analysis by the Center for Neighborhood Technology (CNT) shows that only two in five American communities—or 39%—are affordable for typical households when their transportation costs are considered along with housing costs.

The Housing + Transportation (H+T) Affordability Index examines 337 metro areas across the country—encompassing 161,000 neighborhoods and 80% of the U.S. population—and provides the only comprehensive snapshot of neighborhood affordability by accounting for combined housing and transportation costs associated with a community. The H+T Index and its accompanying report, Penny Wise, Pound Fuelish, illustrate the direct link between household transportation costs and the location and design of neighborhoods and transit options.

Under the traditional definition of housing affordability (30% or less of household income spent on housing), seven out of ten U.S. communities are considered “affordable” to the typical household. But in almost all metro regions of the country, when the definition of affordability includes both housing and transportation costs—at 45% of income—the number of communities affordable to households earning the area median income decreases significantly. Nationally, the number of affordable communities declines to 39%, resulting in a net loss of 48,000 neighborhoods with combined housing and transportation costs that stress the average family’s budget.

“Across the nation, families are dealing with the economic crisis and looking at their bottom lines to determine how they can save money and plan for the future,” said Congressman Earl Blumenauer (D-OR). “The H+T Index provides valuable information about the two biggest household expenses, housing and transportation. This index will help policymakers level the playing field to improve location efficiency, and it will help lenders educate consumers about the trade-offs and costs associated with their housing choices.”

For most families, transportation is the second largest household expense. The new analysis shows that for many families in “drive ‘til you qualify” zones, savings realized from lower cost housing are eliminated by unexpectedly high transportation costs. Yet it is difficult for consumers and policymakers to estimate the full costs of a location, including the cost of both housing and of transportation. This lack of information can lead families to unknowingly make housing decisions that cause them to live beyond their means as gas prices rise and commutes grow longer. A community’s average transportation costs can range from 12% of household income in efficient neighborhoods with walkable streets, access to transit, and a wide variety of stores and services to 32% in locations where driving long distances is the only way to reach essential services.

“The Rockefeller Foundation is proud to have funded the H+T Index as part of our initiative to promote equitable and sustainable transportation,” said Nick Turner, Managing Director at The Rockefeller Foundation. “This unique tool will give consumers the opportunity to make more informed decisions about where they can afford to live, and help provide policy makers with data to develop new policies and targeted investments that can reduce transportation costs. Transportation costs are often the second highest expense for working Americans–and the Rockefeller Foundation’s initiative is committed to helping Americans re-think our transportation future as a critical way to expand economic opportunity.”

The failure to provide Americans with affordable transportation and compact neighborhoods that support pedestrians and cyclists as well as drivers, increases the financial pressure on families, resulting in unstable household budgets, lack of savings, and even foreclosure, and places communities across the country, particularly those with inadequate transportation options, at greater risk.

“In recent years we have seen foreclosures increasing faster in outer suburbs than in central cities. When gas prices peaked in 2008, families in many regions saw their transportation costs soar by $3,000 per year or more. When communities have few transportation options and require driving long distances for basic necessities, already stressed household budgets are very vulnerable to spikes in gas prices and rising transportation costs,” said Scott Bernstein, president and founder of CNT. “The H+T Index gives a reliable estimate of each neighborhood’s average household transportation costs, a strong move toward a ‘no surprises, no sticker shock’ home buying or renting experience.”

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RISMEDIA, March 19, 2010—(MCT)—Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.

“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.

But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”

Rinomato offered the following tips for staging a home:

1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.

2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.

3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.

4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.

5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.

6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.

7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.

8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.

9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.

10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.

(c) 2010, The Orlando Sentinel (Fla.).

Distributed by McClatchy-Tribune Information Services.

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RISMEDIA, March 2, 2010—Home sales decreased 10.6% in January 2010 in California compared with the same period a year ago, while the median price of an existing home rose 15%, the California Association of Realtors® (C.A.R.) recently reported.

“Many sales that closed escrow in January were on homes with offers accepted during the holiday season- a time when many house hunters are first-time buyers,” said C.A.R. President Steve Goddard. “First-time buyers typically purchase homes priced below an area’s median home price. Reflecting this, the percentage of homes priced under $500,000 increased to 77% of all sales in January, compared with 75% in December. “Despite the year-to-year decline, sales remained above the 500,000 unit threshold for the 17th consecutive month, holding steady at pre-peak levels from early in the last decade,” said Goddard.

Closed escrow sales of existing, single-family detached homes in California totaled 539,040 in January at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local Realtor associations statewide. Statewide home resale activity decreased 10.6% from the revised 602,660 sales pace recorded in January 2009. Sales in January 2010 decreased 3% compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2010 would be if sales maintained the January pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales. The median price of an existing, single-family detached home in California during January 2010 was $287,440, a 15% increase from the revised $249,960 median for January 2009, C.A.R. reported. The January 2010 median price decreased 6.3% compared with December’s $306,820 median price.

“The story for the median price in January was mixed. In year-over-year terms, California’s median home price saw the greatest percentage increase since December 2005,” said Leslie Appleton-Young, C.A.R. vice president and chief economist. “However, the median fell by 6.3% from the December 2009 median price. Although the monthly decline was large, it was less than the declines for the same time period in both 2008 and 2009 when the median price fell by more than 11%.

“The median price still is 17.2% ahead of the trough in this cycle,” added Appleton-Young. “However, the expiration of the federal tax credit for home buyers and the impact of the Federal Reserve’s withdrawal from the mortgage market continue to be the wild cards as we move through the year.”

Highlights of C.A.R.’s resale housing figures for January 2010:

-C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in January 2010 was 5.8 months, compared with 7.3 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

-Thirty-year fixed-mortgage interest rates averaged 5.03% during January 2010, compared with 5.05% in January 2009, according to Freddie Mac. Adjustable-mortgage interest rates averaged 4.33% in January 2010, compared with 4.92% in January 2009.

-The median number of days it took to sell a single-family home was 33.8 days in January 2010, compared with 50 days (revised) for the same period a year ago.

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RISMEDIA, February 12, 2010—Just over 40% of available homes for sale had reduced prices in January 2010, compared with 44% in December 2009, according to a monthly survey of home listings in 27 markets conducted by the national real estate brokerage ZipRealty.

With fewer reduced price homes available in January, sellers were able to ask for their original list prices, rather than cut them to attract buyers.

“Sellers are taking a realistic look at current market conditions before listing their homes,” said ZipRealty CEO Pat Lashinsky. “We have a lot fewer homes for sale right now than we did last year, and we are seeing more sellers sticking to their original list prices, rather than cutting them to try to attract buyers.”

Highlights of ZipRealty’s monthly survey include:

-January was the fifth consecutive month of fewer priced reduced homes on the market, with sellers reducing list prices by $21,925 on average across 27 markets
-Homeowners in San Diego reduced prices by the highest dollar amount, cutting an average of $44,901
-Homeowners in Houston reduced prices by the lowest dollar amount, cutting an average of $10,000
-Markets with the lowest percentage of price-reduced MLS-listed homes were Los Angeles and San Diego (both at 32.6%), San Francisco (31.9%), and Denver (29.5%)
-One out of every two home listings in Jacksonville (49.9%) and Phoenix (48.8%) had cut their list prices, the highest percentage in the survey

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RISMEDIA, February 11, 2010—Last year home staging skyrocketed to the top of the list of the fastest growing careers in America. In the decade ahead it is promising to be a rapidly evolving industry and looks to be one of the key solutions to solving the housing crisis.

“Sellers get the most they can for their property and buyers benefit from a move-in ready property.”

Showhomes, a nationally franchised home staging company with offices in 60 markets, polled 500 Realtors and brokers from all over the country at the National Association of Realtors Expo recently in San Diego. The survey uncovered some startling Realtor feedback about the value of home staging in today’s market:

-96% believed buyers react better to fully-stage homes than vacant ones
-94% believed vacant homes take longer to sell than fully-stage homes
-94% believed vacant homes sell for less money than fully-stage homes
-The majority of Realtors surveyed agreed that vacant homes take twice as long to sell and sell for at least 15% less than a fully-staged home.

“Home staging has become a necessity,” said Thomas Scott, VP of operations for Showhomes. “These numbers say it loud and clear. The home staging industry is at a tipping point. If you want sell a home quickly and for top dollar, there’s no other reasonable choice. In today’s market, if a home is not staged, it does not sell.”

Shell Brodnax, president and CEO of Real Estate Staging Association (RESA), said she’s not surprised by Showhomes’ findings. “Home staging provides economic stability to real estate by leveraging a property’s appeal to buyers,” Brodnax said. “Sellers get the most they can for their property and buyers benefit from a move-in ready property. Home stagers are doing a great job at getting the word out about the effectiveness of staging,” Brodnax added. “The home staging industry will continue to add to the recovery of the real estate industry.”

Statistics provided by RESA show staged properties consistently spend 78% less time on the market. “The decade ahead is a new era for home staging,” Scott said. “If your Realtor doesn’t educate you on how much you stand to lose by not staging your house, then they are doing you a disservice.”

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