2. Limiting Marketing Exposure

Often made by inexperienced real estate agents or FSBO (for sale by owner) sellers, this is a mistake that can be very costly. Newspaper ads, open houses and flyers on your front lawn are nice amenities when selling a home in today’s market but are ineffective in attracting qualified buyers. The truth is that your neighbors will be the first people to take a flyer, the open house will invite mostly unqualified buyers and the newspaper ads are ignored by the real buyers who are looking online or getting emails from their agents.

Seasoned realtors know that there isn’t a silver bullet to attract buyers but will instead cast a wider net utilizing several marketing strategies. The multiple listing service is the first step for all agents and only those that subscribe to this service can list homes for sale. Other online websites such as Craigslist or Realtor.com offer some additional exposure as does websites from the larger brokerages but again you need to be aware of who you are attracting to your home. The bottom line is that serious, qualified buyers know they need a real estate agent to access the best homes for sale and contact one as soon as they are ready to go shopping to buy.

Compromise in marketing yields a ” you get what you paid for” result so why take the risk? The average FSBO will list his home in the newspaper for a month before giving up with dismal results. Some agents make limited marketing sound attractive because they appeal to the uniqueness of their home and everyone wants to think of themselves as unique. Unfortunately it results in limiting exposure and you lose precious time. Social networking is a huge draw today but again it’s hard to sell a home without actually walking through it so my preference has always been face to face networking which is something I spend a lot of time focusing on.

I hope you gained some knowledge from this post, especially if you are considering putting your home up for sale. If so, I would love to chat with you regarding how I might help so don’t hesitate to give me a call or send an email.

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According to the National Association of Realtors  (NAR) now is the time to buy. Looking at the latest Rent vs Own chart on Trulia you can see why.  Foreclosure Radar, a leading website that tracks foreclosure activity shows the price decline in our market as much as 46% from the recent bubble. It’s obvious why buyers previously  unable to afford a home are feverishly submitting offers on our very limited inventory…especially since prices have increased this past Feburary!

Additionally the lending rates have been historically low but don’t expect that to last. According to Foreclosure Truth we should expect to see prices rise as the government implements more programs to make housing more affordable “Every single significant increase in home prices in the last 100 years was immediately preceded by government intervention. The evidence is irrefutable. Every time the government works to make housing more affordable, prices rise”.

So if that makes you want to get out there and shop then give me a call…I specialize in the Folsom Lake area and have been representing buyers and sellers since 1999.  Email me at Beth@FolsomLakeHomes.com or give me a call (916)947-3993 and I’ll help you get started.

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According to this article on the Loss Mitigation Network blog Warren Buffett says NOW is the best time to purchase a home. In fact he told his secretary of 37 years that it would be the best opportunity of a lifetime. Recently on NBC’s financial program Squawk Box  he said he’d buy thousands of single family homes simply because the pricing and loan rates are at an unprecendented low in recent history.

So are you trying to find a home to purchase in our area and getting beat out by multiple offers? If so, you need to step up and realize that our market has done a 180 and competition will continue to be tough until the bank start releasing those unknown numbers of foreclosures. I’ve talked w/numberous bank officers and they don’t have a clue when or how many, for that matter, so there are no clear indications of when the inventory will increase. Until then be prepared and have your loan pre-approved or better yet approved  to compete in the market place for your humble abode.

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Since California is still rated at the #3 spot in the nation for foreclosure activity you would think the buyers have an advantage and can hold out to find the perfect house right? WRONG!!!

If you’re a buyer in the Sacramento valley and your price range is under $300,000 then you better get moving because you’ll soon experience the same lock out that fueled the last crazy market.

I’ve been shopping hard to find a home for a few buyers in that price range only to meet with multiple offer situations and over-bidding. Of course we’ll see how those over priced offers fare once the appraisal is ordered but buyers beware…it’s getting competitive out there!

Stumbling upon great information and sharing is what networking is all about and in real estate can prove quite valuable so I thought I’d share this gem of information for those of you who are considering a purchase.

Greg Rand writes a real estate blog for investors in addition to his radio show and I’ve found that not only does he push the envelope in terms of challenging people to re-think their opinion regarding real estate in America he does so with positive enthusiam. Check out his article on researching investment properties http://www.ownamerica.com/reading-the-real-estate-tea-leaves/ and see if you don’t agree that now is the time to buy in the Sacramento valley.

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If a man’s home is his castle then when your castle is being remodeled, it can feel like your kingdom is under siege. It’s frustrating when you come home with groceries and find your kitchen counters gone; the contractor calls and says he won’t show up for another week and this is the 3^rd delay; the painter says the designer colors are no longer available but you could pay extra for custom matches. Pitching a fit or firing the entire crew is not the best solution.

Home remodeling taxes your emotions so here are some tips to help handle the psychological stress. When you remodel your home, you can feel you’ve lost your sanctuary, the one place you can totally relax, decompress, be yourself. I encourage you to take breaks by physically leaving the house during the remodel phase. Call some friends for a long coffee break, work out or take a yoga class, this is the time to explore those areas you’ve left undiscovered. Now would be the time for a mini-vacation or a weekend get away.

When you feel you’ve lost control of your domicile with workers coming and going, it’s hard to enjoy your daily routine. This is where you might question the wisdom of what you’ve done. When you realize the project will take three times as long and cost twice as much your best defense is taking positive, decisive actions. This is where some pre-planning will make all the difference.

Before you first sit down with your contractor be certain to do your due diligence and check out his credentials, call his references and above all confirm his license is valid and up to date. Tell your contractor you reserve the right to question or challenge any decision made. Add contingencies to your contract, such as: the contractor gets less pay if the job goes overtime, more if it takes less time. It’s standard in the industry to pay a portion after each phase is completed so be sure to understand his or her process and what the expectations are at each point.

You can also benefit by setting goals to accomplish one task at a time. Break every phase of the project into small, manageable “to do” lists. This will help you to psychologically gear up for the next stretch and give a sense of accomplishment which puts is little wind in the sails to get you through the next segment to be done. It also prevents you from jumping the gun and clearing out the dining room prematurely and then getting angry when it sits empty for two weeks until they get to that phase of construction.

It’s easy to fantasize about the picture-perfect home, the magazine ideal, but the reality is always more costly and sometimes impractical. A gourmet kitchen with top-of-the-line appliances looks fantastic but if your home is in an average neighborhood be sure you’re not over-improving because if you should need or want to move you’ll never recover those costs. Stay flexible and consider lots of options and have a “plan B” in place at every turn…it will keep you sane.

This past week I just listed a newer home in Coventry which is a small subdivision located less than a block away from Sheldon Park in the Natoma Station area. The beauty of this property is it’s proximity to shopping, transportation, schools and parks.

Some people think that just because you’re located close to those services that it must be a noisy neighborhood but this is a mistaken assumption. This particular property was recently re-sided with a 50 year cement siding that virtually makes the house soundproof. The house faces the court behind so there are no neighbors yards backing up to this and all you hear is the usual street sounds of a cul-de-sac.

One of the outstanding features of this home is the layout. The main floor utilizes the space well and the upstairs has three bedrooms with one designed for an office. The backyard has enough patio to entertain and is low maintenance. It’s hard to believe but this house is a fair market sale, no short sale, no bank foreclosure…just a regular listing.  So if you’re interested please view the video and give me a call to take a tour.

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The tax code (Section 25C) states that the credit is available for 30% or up to $1500.00 for a lifetime limit. If you’re in the process of building this is not something you can apply towards your building costs as it is specifically intended for existing principle homes. One thing to beware of is that not all Energy-Star rated products qualify for the tax credit, so check their website before you buy. Also, it prohibits most installation costs so keep that in mind when shopping.

 Among the items included that don’t ordinarily come to mind are skylights, smart vents or whole house fans and wood burning stoves and fireplace inserts. I know what you’re thinking…wood burning stoves? In this valley? Yes, Martha, the manufacturers have vastly improved them to the point that some meet the federal requirements for efficiency and most importantly the tax credit. This is also an exception where the installation can be included so long as it is a requirement from the manufacturer to ensure safe functioning.

 So how does all this relate to short sales? Well, if you’re in the process of purchasing a short sale it might not be a bad idea to keep energy efficiency in mind when doing your inspections. For example, if you find that the home you are considering needs new windows and your budget doesn’t allow for that after closing there are loans structured specifically for that need. Rolling the costs into the loan keeps cash in your pocket and the tax credit will help at the end of the year. Lenders who specialize in home improvement loans can walk you through the process.

 One last thing to remember is to ask for the manufacturer’s certification that the item qualifies for the tax credit. The items installed must also meet the requirement that they remain in use for at least five years. For more information go to NAHB’s website at www.nahb.org/remodel

Top on the list is foundations. Talk to any concrete expert and you will learn a lot about curing times and it’s relationship to the strength of a home foundation. Living in this valley has taught me many things and one of them is that you don’t pour a foundation in the middle of July and expect it to dry property without a lot of babysitting…with a hose. Concrete needs to cure slowly so when I purchased my last house I was ecstatic that the foundation was being poured in February. Cracks in foundations are allowed to a certain degree (hairline) but when the gap gets to 1/8 inch then you start to have issues with moisture and pests. One trick is to look closely at the garage floor for separation because this is your clue into the rest of the structure.

Roofs are at the opposite end and can cause major damage to the structure if not installed correctly. A few years ago I listed a home for a client and we found that the entire parameter of the roof needed to be replaced due to incorrect installation of the original flashing. The builder had flipped the flashing upside down so instead of the rain running off the edge, it was held there and wicked back up the roof. The homeowner didn’t have a clue since she had purchased the home when it was relatively new. Roof inspectors will check for those and other issues at the time of purchase. Don’t assume because a home is new that the roofing is installed correctly or is not damaged.

Water is the most intrusive element known to man and poor drainage can cause numerous problems from mold and mildew to undermining a foundation. Homes that have a down slope are more prone to water problems but equally important are runoff and standing water issues. I once looked at a home in the bay area and had my soils engineer out to take a look. His assessment was that the foundation was sound and that the fireplace cracks were nothing to be concerned about. It was only after the fireplace had fallen off was it found out that there was an underground spring running under the home. Needless to say I was very happy to not have purchased that home.

Pest reports reveal intrusion from pests, dry rot or any other critters known to destroy real property. In certain parts of the country it is expected to have a home treated for termites, or as is customary in our area, to deal with dry rot. When my seller’s get a pest report back that has a repair bill around $1000, they might wince but that’s considered average for this area. When purchasing a home with obvious deferred maintenance it’s not a bad idea to ask to be present when the pest inspector comes. Seeing  the damage can educate you to the causes so you can do preventative maintenance.

Finally inadequate systems, such as wiring, plumbing, or HVAC can empty you pocket fast. When purchasing a home that has been retrofitted or remodeled find out if these systems have been updated along with the new cabinets. Permits for this type of work is required but sometimes “Tim the tool-man” decides he can do the work for less. Recently a buyer client purchased a home and as part of the negotiations demanded that the repair work be done by a certified professional and not the homeowner. Unfortunately the home inspector revealed the seller’s skill level  and it was apparent he liked Lowe’s and wasn’t so much concerned with accuracy.  Keep these tips in mind when shopping and you will prevent additional cost and much frustrations.

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Buyers already need the patience of Job to close a short sale which currently represents anywhere from 45-65% of all home purchases in our area. The statistics show that they take an average of 120 days to get to the negotiation stage in our area with an average closing another 30 days. Additionally, over 38% of recent home purchases were funded by FHA, which typically adds 15-30 days to close the transaction. What this adds up to is more frustration for anyone involved in the real estate market today.

For clarity, a short sale is subject to the lender approving the sale. MLS rules require that when the seller has accepted a short sale offer the listing has to be changed to a contingent status. Most real estate agents will not show contingent listings because once the seller has sent it to the bank for consideration it is essentially off the market to other buyers. The dirty little secret is that banks don’t really want to see more than one offer because they are overwhelmed with work, so agents oblige them by taking highest and best and keeping others in back up.

Adding more frustration for buyers are the new FHA requirements. News of increased down payments and higher mortgage insurance premiums doesn’t bode well for those using this type of financing.The beauty of an FHA loan is its “relaxed” standards for qualifying. The rates are typically a bit higher than a conventional loan but the credit score required is lower, making it easier for buyers to secure a loan. Since it is backed by the Federal government should the buyer default, it’s no wonder these loans soar in hard times. Recent news of FHA’s reserves nearing bottom has increased the conditions lenders are putting on buyers making it harder to secure these loans. Now is the time to strategize and take advantage of this program before congress increases the minimum down payment and interest rates.

One glimmer of hope I have experienced is the increase in Broker Price Opinion (BPO) requests from the banks and asset management companies. These opinions are used by the banks to gauge the value of a property in a given area. Once the bank determines the value of its asset, the property is then released for sale. The increase in BPO requests tells me that there are new REO’s (Real Estate Owned)  coming online within the next couple of months. This is good news for those buyers ready to purchase and even better news for brokers working hard to survive this market.