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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As a real estate professional I work with many buyers and sellers every year and often hear stories about the seemingly small mistakes of past real estate transactions that ended up costing aggravation and more importantly money. In the spirit of prevention I offer this special report to those of you who are not my client yet and hope you will find it informative and help you to see that I am concerned that your transaction goes as smoothly as possible.

1. The Wrong Price

A surefire way to get less than the fair market value for your home is to overprice it in the beginning. It sounds contradictory, but it is true. There are several reasons for this. First, if you home is more expensive than the similar homes in the neighborhood, fewer buyers will choose to even look at it. Why would they waste their time? And the buyers that do decide to look at your home will likely use it for comparison to justify their decision to purchase a different home.  “See? A similar home but a lot more expensive. We should get the one we saw yesterday – it’ a bargain compared to this one.”  Additionally, the longer your homes remains unsold, the less interest it will generate among buyers. Eventually, when it’s been on the market longer than the other similar homes, buyers will start to think that there is something wrong with it.  You are then forced to face the real possibility of being forced to sell it for less than its real value. So the lesson is to be sure your home is priced correctly from the beginning saving time, aggravation and money.

Overpricing is not the only pitfall that sellers fall into, some even underprice their homes. How do you know your home’s real value…by getting a professional Comparative Market Analysis (CMA). A CMA will show you what similar homes in your area are selling for and how long it takes to sell them. You will be able to see the range of values that your home falls into and then determine an accurate asking price. I offer CMAs for homeowners free of charge. Just give me a call or send a request via email and I’ll prepare it for you at no cost or obligation.

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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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If you want to sell your home because your property value has decreased to less
than what you owe then read on to find out if you qualify.

Have you been denied for a loan modification and want to try something else to
avoid foreclosure… then a short sale might be your solution.

Afraid your home value has decreased and you won’t be able to sell…perhaps a short sale is your solution.

If any of these sound familiar, discover more about the
process and potential benefits of a short sale. Not quite sure how a short sale
works…then keep reading and I’ll do my best to answer your questions along the way.

What’ exactly is a short sale?

A short sale is just that—the sale of your home for a price that falls
short of the amount you owe on your mortgage. What’s the benefit to you? You get
to settle your mortgage debt and avoid foreclosure, even if property values have
declined in your area.

So, how does it work?

1. Your Realtor will help you to estimate the value of your home’s sale price.

The next step is to secure a buyer for your home. (The
buyer will sign a purchase contract and provide proof of financing, such as a
pre-approval letter for a new home loan.)

2. Submit your completed short sale
application package to your mortgage lender or servicer which includes:

• Application
• Last 2 months recent bank statements
• Proof of income: paystubs, tax return, etc.
• Listing history
• Executed purchase contract
• Purchaser eligibility certification
• Proof of buyer financing
• Estimated settlement statement from your title/excrow company.

3. Your Realtor will submit your package along with the necessary estimates from the title company to your lender/servicer.

Why is a short sale better than foreclosure?

Now that you know the basics of applying for a short sale, you might be
asking… how is this option better than foreclosure?

When foreclosure occurs, a homeowner is forced to vacate the property
and may encounter legal issues and costly fees involved with the foreclosure
process. This is undesirable for both the homeowner and the lender.

In a short sale, a homeowner enters into a mutual agreement with the
lender to end the mortgage. This is reflected on your credit report as
“negotiated settlement of debt,” which may be less damaging to your credit than
foreclosure.

For more information on the credit or tax implications of pursing a
short sale to avoid foreclosure, please speak with your tax advisor or a real estate attorney.

I want to apply for a short sale. How do I start?

First it’s important to keep in mind that when
you apply is very important. Once you’ve decided that you want to pursue a short sale, apply as soon
as possible. If foreclosure proceedings have already begun on your home, please
note that most banks want your short sale  APPROVED at least 15 days prior to the
foreclosure sale date so time is of the essence.

For more information regarding short sales see:http://folsomlakehomes.com/2010/02/26/short-sales-know-your-options/

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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.

Some interesting news is starting to surface regarding the housing market in Folsom Ca and surrounding areas. It’s well accepted that we are now bumping along the bottom of the market looking for a floor and it appears that we might have found it! According to a snapshot of statistics from the local MLS it appears prices are starting to go up! Oops! Wasn’t there supposed to be someone at the bottom ringing a bell or something?

As you can see  this chart of  home sales from Sept. 2005 to Sept. 2010 shows that the bottom of the market was somewhere around Janurary 2010!  That doesn’t mean that you’ve completely missed the bottom. If you are waiting for an approval on a short sale then you’re probably one of the lucky few who got your offer in at the right time.

Overall, Folsom has held onto the higher priced status in comparison to other communities but it still dropped significantly along with most of California. Tom Sullivan, who has since moved his show to the big apple, was right on the money when he said our values increased to 40% which means that we had to come down at least 37% to achieve a normal market. According to current statistics Folsom is down 37% from Sept. 2005! So are we there yet?

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You’ve heard the expression “timing is everything” well, truer words were never spoken when it comes to selling your home. The number one reason homes don’t sell is due to overpricing. I often hear sellers say: We can always come down later- right?  Well…there might not be a chance to do that if you overprice to begin with. Historically when your house goes on the market the greatest potential for buyer traffic is in the first 2 weeks. By pricing it high with the intention of dropping the price later you are completely bypassing your best candidates for purchase.

 The standard purchase contract requires that agents have an obligation to do what is best for their clients. Clearly, showing overpriced listings does not fall into that criterion. With inventory high, agents will undoubtedly choose the homes prices within their buyer’s price range that meet the current Fair market Value. If your home doesn’t fall into that category it’s obvioulsy not going to be shown.

Your neighbors will love you because you help them sell their home. It’s simply the benefit of competition. When a home is overpriced, it not only sits on the market but acts as a selling point for homes that are at market. Buyers are looking for value so if they think I can get the same house for Less…down the block…then that’s where they will shop.

Some real estate agents use this desire against the seller. I know agents who will agree to list your home too high in order to get your listing…plain and simple. The issue becomes very clear once an offer has been presented…from the lenders point of view. Today’s lenders are extraordinarily cautious now and base their loans on accurate appraisals. Appraisers must base their price on comparable properties that have sold. If your home is not able to appraise then it’s usually the seller who has to reduce their price…why risk losing your buyer?

 The first two questions that buyers ask are: What’s the price and how long has it been on the market?  The reality is that overpriced homes will simply sit on the market. Unfortunately, extended time on the market forces the question in a buyer’s mind of  possible bigger problems looming with the walls of the property. That’s a risky way to sell a home because it will create an atmosphere of distrust.

Statistically homes that start their listing life overpriced almost always sell for less than market.  With fewer buyers to choose from , zero leverage because of time on the market, too high an asking price and carrying costs to maintain the property, most sellers find themselves getting the least from their investment rather than the most. It doesn’t make sense to follow the ball down the hill…you want to be in front and use the marketing time wisely.

As a real estate professional committed to happy clients who are eager to get the most from their investment, sharing this must know information with potential sellers in on the top of my to-do list. If you are considering selling your home please contact me for your free market analysis. I can be reached at Beth@FolsomLakeHomes.com

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