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| Summer time! ... great buys abound! Very low inventory helps sellers too! |
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$365K Arcadia Townhome w/ pool Move-in condition! 2/3, Just painted, new carpeting & flooring. Large townhome w/ Arcadia schools! http://www.RayWells.com |
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$599K Move-in cond Traditional 3BR/ 2BA, remod. kitchen & baths, light & bright! Near Coolidge Elm. CA/FA,hdwd flrs,FPL,character! http://www.visualtour.com/shownp.asp?T=758283 |
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SOLD! $675K San Gabriel home SOLD! San Gabriel pool home w/ 3BR, 2BA, FDR,Family Rm,HDWD Flrs & lots of detail! http://8341SantaYnez.com |
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SOLD! $378K Pasadena Condo Sold: Move-in cond. top flr 2/2 + loft, views, FPL, laundry in unit, inc. appliances!5 offers! http://www.126Catalina.com |
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$579K large Arcadia Townhome Views! End unit built 2007, 3BR,2.5ba,FR,move-in cond. 2,000sqft. bamboo Flrs. Like new! http://www.gonzalezandwells.com/listnow/listings.html |
Articles and Advice |
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| Price it right when selling in today's market By Dian Hymer We're in the midst of a challenging home-sale market in many areas. However, soft markets can provide opportunities for some home sellers. The trick is to price your home right for today's market. The most difficult reality for most sellers to face is that prices in their neighborhood may have dropped during the last year or two. Some sellers will find that it may not make sense to sell if the probable sale price is too low. If you have the luxury of waiting for a better market, stay put for now. Be sure to check with a knowledgeable real estate agent before you make a decision to move forward -- one who knows the local market well. HOUSE HUNTING TIP: It is an advantageous time for move-up buyers, who may have to sell for less than they would have a few years ago. But, they may also pay a lot less for the home they buy. A seller usually has an advantage selling when there isn't much competition from other listings. Even though the listing inventory was low in some areas at the end of 2007 and the beginning of 2008, anticipate that there will be more listings coming on the market in April and May -- the traditional home-selling season. Today's home buyers are extremely price-conscious. If there is a lot to choose from, price will certainly be a big factor. A price that's too high for the market won't bring the desired result. Homes don't necessarily lose value at the same rate in a soft market. In the current environment, buyers are more cautious about what they buy because they know that the property they buy might drop in value before it starts appreciating. They buy for the long term and are less prone to make compromises. The homes that have what most buyers want tend to hold their value better in a down market than do homes that have an incurable defect. Here a few examples of defects that can't be cured: an awkward floor plan that can't be fixed, a location next to a noisy freeway or a house that is either up or down a lot of stairs. Homes with defects that can't be corrected are easier to sell if there's low inventory, and it's a seller's market. We are now in a buyer's market. This doesn't mean you can't sell your home if it has an incurable defect. However, you will need to account for the deficiency in the price. Keep this in mind when you compare your home with one that sold recently that had level-in access, a livable floor plan, and wasn't on a busy street or next to a freeway. The condition of your property will also be scrutinized more carefully in the current market than it would have been a few years ago. You can sell a property that has deferred maintenance. But, you will sell it more quickly and for a better price if you can repair defects and have the property looking great when it hits the market. If this is not possible, take this into consideration in your list price. It's difficult to hit the market price for a property if there haven't been many recent sales in the neighborhood. If you miss the target and find that you're home is priced too high, lower it as soon as possible. A price reduction is no longer a stigma in this market. THE CLOSING: Letting a listing sit on the market too long at a high price sends the wrong message to buyers and could result in a lower sale price if market prices in your area continue to decline. |
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| Rate-lock dos and don'ts By Dian Hymer Interest rates dropped at the end of last year after creeping up over the summer, with 30-year fixed-rate mortgages with interest rates below 5 percent readily available. Mortgage interest rates change as often as two to three times in one day. Securing the lowest rate possible is every borrower's goal. However, it's impossible to time the finance market, just as it's impossible to predict exactly when the housing market will peak or slide. In this low-interest-rate environment, many buyers are locking in a rate, either when they submit their loan application and purchase contract, or some time before closing. A lock-in is a commitment from the lender to hold an interest rate for a period of time. Points (the lenders original fees) can also be locked. The length of the rate lock varies from seven days to 60 days and possibly longer. However, it's more expensive for a longer lock -- about 1/8 percent to 1/4 percent in rate or points for each additional 15 days. Today, it's wise to lock in your rate for 45 days if you lock when you submit your package. With delays due to appraisal issues and lenders asking for additional documentation, it can take this long to close the loan. There are advantages and disadvantages to locking in a rate. If rates fall after you lock, the lender probably won't give you the lower rate. If rates rise after you lock, the lender should honor the locked rate as long as you close on time. Some lenders offer a "float down." This would come into play if interest rates were to drop between the lock data and the date your loan documents are drawn. The lender probably won't let your locked rate float down to market rate, but to something in between. A float down is a one-time-only option. HOUSE HUNTING TIP: Because rate locks have an expiration date, it's essential to provide as much financial documentation needed to qualify you for the mortgage as soon as possible. This will speed up the approval process. Lenders require much more personal financial information than they did several years ago. Ask your loan agent or mortgage broker at the time you submit your loan application what personal financial data the lender will require -- like pay stubs and information supporting your cash downpayment and cash reserves (in bank accounts, IRAs and 401(k)s. If you're self-employed, you'll need to provide tax returns for the last two years. After your loan package is submitted to underwriting for approval, there could be other conditions that must be met. If you drag your feet producing additional documentation, this could delay approval and jeopardize your rate lock. Extensions of rate locks are sometimes granted, but don't count on it. If the delay is due to a slowdown in the lender's processing, the lender might agree to an extension, especially if interest rates haven't changed much. But, if the delay is due to your failure to provide the materials necessary to qualify you for the loan, don't expect a sympathetic ear. Try to get the lender's rate-lock commitment in writing. Some lenders will do so, but many give only verbal agreements, which are hard to enforce. Lenders often give processing priority to purchase loans over refinances. If you're refinancing and rates are low but threatening to rise, lock in for 45-60 days. Now is a great time to refinance not only because interest rates are low, but because there will be fewer home sales during the winter months and less competition to worry about in terms of getting the loan closed on time. THE CLOSING: Get a copy of the Federal Reserve Board's "A Consumer's Guide to Mortgage Lock-Ins" at http://www.federalreserve.gov/pubs/lockins/default.htm. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
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| How buyers, sellers are closing deals in today's market By Dian Hymer Negotiation is back in style, and is likely to remain a necessary part of buying or selling a home in today's beleaguered residential housing market. Other key elements to a satisfactory closing are flexibility, perseverance, creativity and diligence. Needless to say, you need to work with the best real estate professionals you can find in your area. In most cases, it takes a team effort to put a home-sale transaction together and see it through to fruition. HOUSE HUNTING TIP: Successful negotiations usually require give and take by both parties. It has been said that the sign of a successful negotiation is one where both parties walk away feeling they have won. It has also been said that the key to a mutually acceptable agreement is that both sides feel a little wounded. A must in this market is a commitment to exhaust all possible ways to put and keep a deal together before calling it quits. Recently, it looked like a purchase contract was about to fall apart. The buyers had originally offered a price that seemed insultingly low to the seller. The seller set his personal feelings about the price aside and countered the buyers' offer at a price he felt was reasonable. The buyers accepted. As it turned out, the price was one that was halfway between the seller's list price and the price the buyers offered. Splitting the difference is often a winning strategy. The house in question had been well inspected before the buyers entered into contract to buy it. However, when it came time for the buyers to remove their inspection contingency, they requested a large monetary credit from the seller. Not only did the buyers discover a few health and safety issues that weren't covered in the previous reports, they also developed a serious case of cold feet. These buyers were able to find jumbo financing at a good interest rate. However, to obtain this financing, they had to make a larger cash down payment than anticipated. This left them feeling cash-strapped. The seller refused to credit the buyers the amount of money they requested. However, he was willing to credit some money. Or, he would carry a second mortgage for the buyers so that they didn't have to put so much cash down. Flexibility gives the parties to a negotiation a way to explore options for making a deal or for keeping one moving forward. In order for the buyers in this case to feel comfortable closing the sale, they needed a concession from the seller in order to ease their financial strain. By offering to carry a second mortgage against the property, the seller found a way to free up more cash for the buyer. As it turned out, the buyers elected not to take the seller-financing offer and accepted a monetary credit at closing. Credits at closing require approval by the buyers' lender. Most lenders have limits on how much money a seller can credit a buyer at closing. It is often equal to 3 percent of the purchase price, but cannot exceed the actual amount of the buyers' nonrecurring closing costs. These are costs paid for the buyers on a one-time-only basis at closing, such as title insurance or a transfer tax. A seller carry-back would also need lender approval. The lender in first position would want to ensure that the terms of the second mortgage were reasonable and would not be likely to put the buyers in financial jeopardy. THE CLOSING: Sellers should carefully consider whether it makes good financial sense to carry financing for a buyer who is making a relatively small cash down payment. |
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| 2010: year of the turnaround? By Dian Hymer A spurt in home sales in 2009, aided by low interest rates and the first-time homebuyer tax credit, has led some economists to forecast a turnaround in the housing market this year. Other forecasters feel this is too optimistic a projection. Among those who see improvement in the 2010 market is Lawrence Yun, chief economist for the NATIONAL ASSOCIATION OF REALTORS® (NAR). Yun hopes that the extension of the first-time homebuyer tax credit will provide a new pool of buyers to absorb the additional foreclosures that will hit the market this year. He expects existing-home sales to rise 13.6 percent in 2010; home prices should go up 3 to 5 percent, with wide geographic differences. The average rate on 30-year fixed mortgages will range from 5.3 percent in the first quarter to 5.8 percent by year end. This forecast assumes there will be no major economic surprises. The weak job market remains a concern. The Mortgage Bankers Association (MBA) has a slightly different take on the 2010 housing market. MBA predicts existing-home sales will increase approximately 11.2 percent. Interest rates should be about 5.6 percent by the end of 2010. The unemployment rate is expected to peak at 10.2 percent and gradually decline in 2011. National average home prices should stop sliding during the first part of the year and stabilize, depending on area and price range. The November 2009 Economic and Housing Market Outlook from Freddie Mac expects there will be an increase in foreclosures and short sales this year, even though foreclosures declined significantly in some of the worst foreclosure markets (like Las Vegas) at the end of last year. RealtyTrac reported that foreclosures nationwide decreased 8 percent in November 2009. Zillow.com, an online real estate marketplace, reported in December 2009 that stabilization and increased home prices were found in 48 of the 154 markets tracked. However, Zillow forecasts a decline in demand as interest rates rise. Foreclosures are expected to stay high and could challenge recent stabilization. Some economists think prices will continue to decline in some areas through this year. Others feel that at best, the economic and housing recovery will be a bumpy ride. And, we could bounce along the bottom for some time. Few expect home prices to rebound quickly. HOUSE HUNTING TIP: There will be significant variation from one market to the next. Areas that have a good diversified economic base and limited inventory of homes for sale could stabilize in 2010 and see an improvement in home prices. Areas that are bloated with foreclosure and short-sale inventory and have a weak local economy probably won't see a turnaround this year. Credit tightening would put a damper on the market. On Dec. 12, 2009, Fannie Mae took steps to make mortgage qualification more difficult. A significant change is that the maximum allowable debt-to-income ratio is being lowered to 45 percent from up to 64 percent. This means that the housing cost plus all other debt can't exceed 45 percent of the borrower's income. Buyers with strong credit and assets have a chance of approval with a debt-to-income ratio of 50 percent. 2010 is not expected to be a banner year for housing. But it could be a year of improvement for some niche markets and some price ranges. Expect to see more purchase offers made contingent on the sale of the buyers' home. Credit tightening has made it impossible for most buyers to qualify to own two homes at once. There will likely be an increase in short-sale listings. Buyers have shied away from these listings in the past because they took so long to process, and were often denied by the lender. Lenders are now more open to approving short sales than they were a year ago. THE CLOSING: Hopefully, they'll improve their performance in 2010. Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author. |
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| Green Your Home Six ways to make your existing home greener in our environmentally-consciou By Bridget McCrea There’s a movement underway to lessen the impact that homes have on the environment, and both new and existing homeowners alike are doing their part by taking simple steps in the right direction. If you’re not sure how to join in, here are six ways to make your own home a little greener right now: Switch to CFLs Go through your home and find all of the light bulbs that you picked up at the grocery store and replace them with compact fluorescent light bulbs (CFLs), which not only last longer, but also reduce the amount of greenhouse gas emissions coming out of your home and into the environment. A CFL bulb uses 75 percent less energy than a standard incandescent bulb, generates 450 fewer pounds of greenhouse gases from power plants and lasts 10 times longer than its incandescent cousin. Learn more about CFL usage online at: http://www.energystar.gov/index.cfm?c=cfls.pr_cfls Use ENERGY STAR® When it comes time to replace or upgrade that refrigerator or washer, select only ENERGY STAR® qualified products, which cost 10 to 30 percent less in operating costs to run. Using energy efficient products and practices, the ENERGY STAR® program saved enough energy last year to avoid greenhouse gas emissions equivalent to those from 25 million cars — all while saving $14 billion on utility bills. More than 50 types of products can earn the ENERGY STAR®, including appliances, lighting, home electronics and home office equipment. Find out which appliances qualify at www.energystar.gov. Avoid VOC-Based Paints Volatile Organic Compounds or “VOCs” have been a key component of the composition of oil-based paint, and can also be found in traditional latex based paints. Exposure to VOC's in paint can trigger asthma attacks, eye irritation and respiratory problems, nausea and dizziness, among other symptoms. Prolonged exposure has been linked to kidney and liver disease and even cancer. The good news is that alternatives are available, and are endorsed by the “Green Seal®” certification (based on VOC content, the absence of chemicals, durability and performance among other criteria). These alternatives include low-odor or low-VOC paint, zero-VOC paint and non-toxic or natural paint. Find out more about your healthier options at: http://eartheasy.com/live_nontoxic_paints.htm Harvest Rainwater Did you know that every inch of rain translates into nearly 600 gallons of water for every 1,000 square feet of roof? Environmentally-conscious homeowners are tapping this natural resource and reducing reliance on other water sources by using rainwater harvesting systems that are installed on a home’s roof, which serves as the catchment area. Gutters act as the conveyance system, while cisterns hold the water and are complemented by a pump-based delivery system and a filter- and/or purifier-based treatment setup. Such systems can be added to existing roofs, or installed on new homes, and used to minimize the 100 to 250 gallons of water that the typical American pulls from their municipal systems or private wells. Check out the Rainwater Harvesting Community for more information: http://www.harvesth2o.com/ Be Water Efficient Kitchens, bathrooms and laundry rooms are all hotbeds for excessive water usage. Cut the waste by installing low-flow showerheads and faucet aerators, both of which help save resources without sacrificing water pressure. Use front-end loading washing machines, which not only save water but also treat your clothing better because they lack a middle “spinner” that thrashes the garments around. Finally, consider installing dual-flush commodes, which use a variable amount of water, depending on how much is needed. See the U.S. Environmental Protection Agency’s Web site for more information on water efficiency: http://epa.gov/watersense/ Tune up Your Home Lessen your home’s impact on the environment by tuning it up in a few key areas: the HVAC system, windows and doors, and insulation. A professional HVAC checkup costs about $100 and can save you 5 to 10 percent on heating and cooling bills, while also cutting down on the carbon dioxide emissions coming out of your home. Don’t forget to clean or replace your filters monthly. Upgrade your windows and doors with energy-efficient models, improve their efficiency by replacing old weatherstripping, and make sure your home’s walls and attic are well insulated. If they are not, enlist a contractor who will use a “blown-in” insulation technique to fill in any voids that may be causing hot or cool air to escape. The California Energy Center provides more great ideas for homeowners at www.consumerenergycenter.org. |
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| Mortgage approval is no easy task By Dian Hymer It wasn't too long ago that home buyers made offers without financing contingencies and closed the deal in as short as 14 days following acceptance. Quick closes are virtually impossible today if you're buying a home with the aid of a mortgage. And, it's highly recommended to include loan and appraisal contingencies in your offer. Following the credit crisis of August 2007, many mortgage lenders closed down. Those that are left have cut their staff due to low demand for mortgages. Also, it's now necessary to actually qualify financially for a home mortgage. This adds time to the loan approval and funding process. For most mortgages, home buyers are now required to have good credit. They need to provide verification of employment (W-2s or tax returns), verification of the funds needed to close (down payment and closing costs) and verification of reserve funds. If the funds haven't been sitting in your bank account for a few months, some lenders require proof of where the money came from. Be prepared to provide brokerage statements, and any other supporting documentation that will validate you as a bona fide borrower. Buyers who own other real estate will need to provide even more documentation. HOUSE HUNTING TIP: It's a good idea to start pulling together all of your financial documents as soon as you're serious about buying a home. Ideally, the paperwork required by the lender should be forwarded to your loan agent or mortgage broker within a couple of days of contract acceptance. You can't wait until the last minute to provide the lenders what they need and expect to close on time. Before you write an offer, check with your mortgage person to find out how long it will take to process and fund the mortgage. Some lenders are taking 35 to 40 days from acceptance. So, you wouldn't want to commit to a 30-day closing, if this is the case. Make sure that you allow sufficient time in your contract for the appraisal and formal lender underwriting approval. This could take two to three weeks, depending on the lender and on how diligent you are about supplying the documentation. Your lender or mortgage broker will order the appraisal of the home you're buying. It should be ordered as soon as possible. If you end up not buying the house, you might owe an appraisal fee. However, waiting to order the appraisal could cost you time. Many lenders require a review appraisal, which is a second appraisal to confirm that the first one is accurate in terms of market value. Ideally, this should be done before you remove your appraisal contingency. If it can't be done within that time frame, ask the seller for an extension. Before August 2007, it was common practice for lenders to prepare the mortgage documents for the buyers to sign even though all underwriting conditions had not been met. For instance, the lender might have needed proof that you paid a charge-card account down to a zero balance. Today, many lenders won't issue the mortgage documents until all of the pre-funding conditions have been met. So, you need to be prepared to provide additional documentation that the lender might request, even if it's at the last minute. Work with a good loan agent or mortgage broker who will help keep you on track throughout the process. And, as outrageous as the lender's requests might seem, don't let it get to you. Lenders have a lot of due diligence work to do to restore their credibility with investors. The housing market is dependent on investors buying mortgages so that buyers can buy homes. THE CLOSING: Properly qualifying buyers for mortgages is long overdue. |
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| The art of counteroffers By Dian Hymer Negotiation is back in style. It's not uncommon for buyers and sellers to have many rounds of counteroffering back and forth before they arrive at a contract that is completely agreeable to all involved. When this is accomplished, the contract is ratified. However, there is another important element involved in ratifying a contract. Until a residential purchase contract is completely signed, and the final signed documents are delivered back to the other party or that party's agent, the listing is not sold. Let's say you decide to offer the sellers less than their asking price. They don't accept your offer, but issue a counteroffer. Before you respond to the seller's counteroffer, another buyer makes an offer. If you haven't signed the sellers' final counteroffer and delivered it back to them, they can withdraw their counter and sell the house to someone else. Or they could decide to withdraw the counteroffer to you and issue a new one. This time it could be a multiple counteroffer if the sellers also decide to counter the other buyer's offer. You end up in a multiple-offer competition, which often means paying more or not getting the house at all. You can't rely on verbal negotiations when you're buying or selling real estate. To be binding on the parties involved, real estate contracts and the addenda to them must be written. HOUSE HUNTING TIP: Timing is critical. If the seller issues you a counteroffer you can live with and you want the house, sign the document as soon as possible, even if the seller gives you several days to think about it. During that time, another buyer could make an offer and your counteroffer could be withdrawn. After you sign the counteroffer, make sure that your agent delivers it to the sellers or their agent immediately. Whoever receives the document should sign to acknowledge receipt of the document so that there's no question that the contract is ratified. Then if another buyer wants to make an offer, you won't have to compete or risk losing the house altogether. Once you have a ratified contract in place, the sellers can negotiate with other buyers, but only for backup position subject to the collapse of your contract. Don't let yourself be lulled into thinking that because the housing market is generally slow there's no chance you'll end up in competition. The best listings -- ones in good condition and priced right for the market -- can sell quickly, particularly in areas where the inventory is low. Many buyers have busy work or travel schedules. Often you find the right house to buy at the least opportune time in terms of what else might be going on in your life. Make sure that your home purchase contract states that faxed signatures are binding. This could save you hours of driving in traffic to sign a critical document in time. Sometimes faxes aren't the answer. If you'll be available only by phone or e-mail, consider giving power of attorney -- one specific to buying a house in a certain area -- to someone whom you trust completely. This person should not be your real estate agent. It should be someone who will be available on short notice. Electronic signatures are becoming more popular. But, they haven't become standard in the home-sale business. If a seller who has had no experience with electronic signatures is considering a couple of offers -- one with electronic signatures and one that was signed in person -- he would probably feel more comfortable accepting the latter. THE CLOSING: That is, unless the price on the electronically signed offer is a lot higher. |
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| Curb appeal tips that pay off By Dian Hymer Imagine going on a job interview looking shabby, or trying to sell your car for a good price when it's filthy and loaded with stuff. In a competitive market, you wouldn't do well. The same can be said about selling your home. If it looks neglected and in need of work, some buyers won't even take a look. This is particularly the case in today's market where, in many parts of the country, there are far more homeowners anxious to sell than there are buyers interested in buying. In a business where emotions and pride of ownership play a big role, first impressions can have a lasting effect. Most buyers lack the ability to imagine what a house might look like with a different exterior paint color or a landscaped yard. When there is a lot of inventory on the market, you may have only one chance to catch a buyer's attention. Make sure it's not lost before he or she walks through the front door. One of the first items on a home seller's agenda should be a critical evaluation of how the home and yard look from the street. It's a good idea to ask your real estate agent to help with this. Sellers often have strong emotional attachments to their homes and have difficulty seeing it objectively. Your goal is to identify cost-effective changes you can make to your house and yard that will make it more appealing to buyers. This could be as simple as cleaning up the yard, adding colorful plants, mulching, power washing the entry walk, and washing dirt off the exterior of the house. However, if the paint is peeling, shutters are deteriorating, the fence is leaning and the yard is a mess, you have a bigger project on your hands. You can sell a house in this condition. But, it will appeal to a limited number of buyers who are willing to tackle a fixer-upper in order to get a bargain price. HOUSE HUNTING TIP: Your home will appeal to a larger audience and will sell more quickly and for a better price if you put the time and money into improving its curb appeal. Curb appeal refers to how your house appears from the street. Even if you're selling a fixer-upper, it's a good idea to do some cleanup so that buyers can perceive the potential. You don't need to spend a fortune to get the work done. Your goal is to have good, not superb, work done at a reasonable price. It's wise to get bids from several contractors. For instance, exterior paint estimates can vary widely. Your real estate agent or neighbors ought to be able to provide references. By the way, if you are going to paint the exterior of your house before selling, this could be a prime opportunity to improve curb appeal. Consult with a color expert to pick colors that are currently in fashion for the house, trim and front door. One seller had the exterior of his house repainted before consulting with his agent or a color expert. It was painted the same drab color it had been for decades. Most of the buyers who seriously considered the house mentioned that they thought the house needed an exterior paint job because the color was so unappealing. It usually doesn't make financial sense to completely re-landscape a front yard that is shot. Salvage what you can, bring in new plants to replace dead ones and roll out new sod, if necessary. THE CLOSING: Mulch does wonders to freshen up a garden, particularly one that is sparsely planted. |
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| Staging tips that sell By Dian Hymer Home prices have fallen and many homeowners are mortgaged to the hilt. This makes it difficult for some sellers to justify spending a penny to get their home ready for the market. However, the home-sale market also is very competitive in areas that are still bloated with inventory of unsold homes. When buyers have a choice, they pick the best. They want a home at a good price, in a good location, and one that they can move right into without having to do any work. Investor buyers are snapping up foreclosures at an increased pace. These homes are usually not in good condition. And, in some cases they are selling for half of what they sold for four or five years ago. If you're a seller who's selling in a market where there is competition from distressed-sale foreclosures or from other sellers who are offering their homes in top condition, you will be at a disadvantage if you don't fix up your home before selling. It will take longer for you to sell and you could sell for a lot less than if you had invested time and money in properly preparing your home for sale. There is a lot you can do to get your home ready that doesn't cost much money -- it just takes time and hard work. For instance, most people have too many personal possessions in their homes, particularly if they have lived there for years. Decluttering benefits you in a couple of ways. You won't pay to move things you no longer want or need. More importantly, buyers will be better able to see what your home has to offer instead of focusing on your things. HOUSE HUNTING TIP: It's worthwhile to consider hiring a home staging decorator. Some sellers only need a consultation of one to two hours. Ask the stager what you should keep and what should be moved out before you start showing the house. Also, get recommendations for furniture and artwork arrangement. The way you live in your house is not necessarily the best way to show it off to prospective buyers. For example, many homeowners place their sofa across from the fireplace, which can mean that a buyer is greeted by the back of the sofa when they walk into the room. It stops them in their tracks. If the sofa is moved to one side and two chairs are placed opposite the sofa, the room will appear more open and the traffic flow won't be obstructed. Sometimes the scale of your furniture isn't right for showing your home to its best advantage. Recently, buyers who had been looking for more than a year for the right house saw one that they thought could be it. However, they were concerned that the bedrooms were too small. They had the good sense to go home and get a tape measure. They came back to the house and measured the rooms they were concerned about. It turns out they were larger than they appeared. The house was furnished with beautiful pieces, but they were large and made some rooms appear smaller than they actually were. Today's buyers have a lot to think about when they buy a home. Are they buying at the right price and time? Will the house work for the long term? Can they qualify for and afford the financing they need? It helps the process along if you can create an ambiance that enables a buyer to fall in love on the first visit. THE CLOSING: You need to create the wow factor so that when buyers walk in they say, "I better act quickly. This house won't be on the market for long." |
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| Top ways to boost curb appeal By Pau Bianchina You've no doubt heard the term "curb appeal," which is the first impression that your home makes when a visitor arrives. Whether you have your home up for sale or just want things to look a little nicer when you or someone else pulls up out in front, the best place to start is by giving the front of your home a critical examination. Driveway: A driveway, by necessity, tends to be a fairly dominant feature, and it is often one of the first things that a person sees when they arrive at your home. If you have a concrete driveway that is oil-stained, check with your local home center for cleaners that can spruce it up. While you're there, get a crack repair compound and take care of smaller cracks before they become larger. For asphalt driveways, a seal-coat can often make a big difference in appearance and help prolong the asphalt as well. For concrete or asphalt that is badly damaged, it's time to be thinking about replacement. You can replace the driveway with the same material as before, or consider an updated look by using paving stones instead -- they hold up well in all types of weather, and can even be a very satisfying do-it-yourself project. Walkways: When someone arrives, is there a clear and safe path to your front door? You may not mind walking across your front lawn, but guests and prospective buyers would definitely prefer a walkway. There are lots of options for creating a new front walkway or replacing an existing one, so check out your home center or some landscaping magazines for ideas. Landscaping: Speaking of landscaping, do you actually have any? Is it well maintained? Few things look worse out front than an overgrown or neglected yard, and you can often remedy things with a little hard work and some minimal expense. Cut back or remove trees and bushes that have gotten out of control. Feed the lawn to get it to green up again, or consider removing all or part of it and replacing it with low-maintenance materials. If you have planter beds, be sure they're weeded and have fresh bark in them. Plan your landscaping to create a visual appeal by not having all the same type of plant. Intersperse some plants that provide spots of color at different times of the year, and mix plants for different heights as well. Shade Trees: Consider adding a couple of new shade trees in front. Trees are good for the environment in general; they help a home look more established and appealing; and they can help lower your summer cooling costs as well. Trees look best planted in odd numbers -- a grouping of three or five, for example -- and the folks at your local nursery can help you with proper spacing. Exterior Paint: There is probably nothing that will help or hurt the outside of your home as much as how your paint job looks. A fresh coat of paint in up-to-date colors works wonders, while old, peeling paint in a color scheme that went out of style when Eisenhower was president can really ruin a first impression. If the paint is in generally good condition and just has a few bad spots, spend a couple of hours with a paint scraper and a can of exterior primer to get things ready for touch up, then have your local paint store match you up a gallon of paint and touch up the primed areas so they blend in. You might also want to consider repainting the eaves or window trim in a fresh new color to liven things up a little. A New Entrance: Your front door is one spot that every visitor has to pass though, and it can make a lasting impression. A fresh coat of paint or stain can sometimes do the trick, but if your door is badly beat up you should consider replacing it. Check with a local company that specializes in doors (not a home center) and see about having a new door matched to your existing frame. The door company will cut the door, mortise the hinges, and drill for the locks using your old door as a pattern, so you can slip the new door right into place without expensive frame alterations or extensive carpentry. Whether you're getting a new door or working with your old one, make sure that there are no squeaks or groans when it opens, and that it fits well in the frame without binding. Check the operation of the door handle and deadbolt; check the condition of the weatherstripping; and don't forget the operation of any screen and storm doors. Cleaning: Last but far from least, clean things up a little. Pick up any trash that's accumulated, including dead leaves, cigarette butts and other small debris. Wash the siding to remove dirt, dust and cobwebs, and wash the windows. Hose off the walkways periodically, and make sure that all exterior lighting is operational. Finally, clean off the front porch -- including porch furniture and knick-knacks -- so that that area is clean and inviting as well. |
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| VERY FUNNY ARTICLE FROM 1984 "The Day LA's Bubble Burst" By Ben Stein - Published: December 8, 1984 VERY FUNNY ARTICLE FROM 1984 "The Day LA's Bubble Burst" By Ben Stein Ben Stein wrote this about LA in 1984. It offers wonderful perspective… THE DAY LOS ANGELES'S BUBBLE BURST By BENJAMIN STEIN ; BENJAMIN STEIN'S LATEST BOOK IS ''FINANCIAL PASSAGES.'' Published: December 8, 1984 My pal Jerry P. just bought a condominium in Century City, in Beverly Hills, for 60 percent of what it sold for in 1980. Down the street from me here in the Hollywood hills, four houses have been on the market since 1981. The asking prices now are about one-third less than they were three years ago. Up and down Sunset Boulevard in West Hollywood, apartment houses that were converted to condos lie empty, boarded up, not one unit sold, in bankruptcy, with banks holding title. New Yorkers do not like to believe they could learn anything from California, but perhaps in this one case they might try. The Southern California residential real estate boom began in about 1974. It was not just a boom. It was a superboom, with miserable bungalows in Santa Monica running up from $40,000 in 1974 to $400,000 by 1980. Two-story colonials in Beverly Hills went from $200,000 to $800,000 and then over a million. One-bedroom condos in Hollywood were built and sold for $100,000 - what a house in Beverly Hills had been five years before. Every day, home buyers would look at the prices and say, ''It can't go on.'' But every day, for five years, it did go on. Middle-class families were priced out of the market, and the brokers said, ''But the rich will always be able to buy.'' Ordinary rich people were squeezed out of the market in some areas, but the brokers said, ''Never mind, the music business people will buy anything.'' The music business fell into a depression in 1979, and the brokers said, ''The foreigners are buying. Compared with Paris or Teheran, real estate in Holmby Hills is a bargain.'' Everyone wanted to get in to the game, get the down payment on a house, somehow struggle with the payments for a year, then sell out and get rich quick. Inflation pushed housing prices into the stratosphere. But even when inflation stopped, brokers said, ''The prices have nothing to do with inflation. Everyone on earth wants to live in L.A. The price will go up forever here, no matter what else happens in the rest of the country.'' Then the music stopped, some afternoon in 1980. As if a spell had fallen over the city, suddenly things began to stay on the market for three months, six months, a year, two years. Buyers disappeared. Asking prices stayed high, but nothing sold. The great Southern California real estate boom was over. Prices had gotten so high that they could no longer be justified by inflationary expectations, or the influx of foreigners, or the climate, or for any other reason. Now, four years later, those brokers who are still in the game tell sellers to expect that their houses will be on the market for two years. Other brokers have sold their BMW's and are now working as ''financial planners'' or public-relations people, dreaming of the days when they worked for 6 percent of infinity. Not long ago, I was in New York City looking at co-ops, talking with recent buyers, would-be buyers, brokers. The conversation is eerily familiar. Listen to the buyers: ''Of course, we'll take two extra jobs and avoid having kids to buy this studio apartment facing an airshaft for $150,000. Next year, it'll be $250,000.'' And the brokers: ''Of course, there aren't many Americans who can afford to buy here any longer. But there will always be rich foreigners. New York is the most exciting city in the world. New York is unique, and two bedrooms on the West Side should cost half a million dollars.'' Do not believe it. Trees do not grow to the sky, and the great New York co- op boom will eventually go the way of the great L.A. bubble. Yes, New York apartments were underpriced for years. Yes, New York is an exciting place. Yes, there are a lot of rich people who like New York. Yes and yes and yes. But no real estate bubble ever goes on forever, and the day when everyone agrees that it will go on forever is usually the day it ends. Maybe this boom will go on a little longer. Maybe, as some of my banker friends tell me, it has already started to totter. Who knows, exactly? But when buyers consider tying themselves in knots to get onto the housing merry-go-round, in the certain belief that they have a sure thing by the tail, they might remember the housing boom in L.A. and the shuttered condos in West Hollywood. The only thing certain about housing bubbles is that they never last. B |
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| How, What, Where, When: the 411 on Electronics Recycling By Michelle D. Alderson As conscious as consumers are becoming about recycling, every once in awhile it is easy to slip up. Maybe you didn't know where to recycle that AA battery, so you tossed it in the trash when nobody was looking. This is understandable. How much can one little battery hurt? According to the U.S. Environmental Protection Agency, each person in the United States discards eight dry-cell batteries per year. With a population of more than 305 million people, that adds up to a lot of batteries. And that's just the beginning. Think about all of the used cell phones, computers, CPUs, and other electronics languishing and leaching hazardous materials in landfills all over the country. At one time, the only option for recycling common household products was driving to a local Goodwill Store and hoping your used goods were salvageable. But what do you do with those used batteries or electronics that aren't? How do you ensure they don't end up in landfills? To find out where you can recycle these used goods in your neighborhood, we've put together a list of locations that offer recycling programs: AT&T Wireless (http://www.wireless.att.com): In addition to recycling used cell phones, PDAs, accessories, and batteries (regardless of manufacturer or carrier), AT&T Wireless has partnered with the charity Cell Phones for Soldiers (http://www.cellphonesforsoldiers.com/). Cell Phones for Soldiers collects and recycles wireless phones and uses the proceeds to buy free phone cards for United States military personnel and their families. Goodwill Industries (http://www.goodwill.org): In 2007, Goodwill Industries received more than 200,000 computers. Many are refurbished, but some are not. In response to the overwhelming number of electronics the organization receives each year, Goodwill Industries has created an E-Waste Initiative (http://www.goodwill.org/page/guest/about/howweoperate/recycling) to "seek economically and environmentally sound ways to recycle and reuse donated electronic equipment." Sprint PCS (http://www.sprint.com): The Sprint Project Connect (http://www.sprint.com/citizenship/communities_across/project_connect.html) program accepts used wireless phones, batteries, accessories, and connection cards, regardless of make, model, or service provider. All net proceeds go to benefit Internet safety for kids. United States Post Office (USPS) (http://www.usps.com): The USPS launched a new initiative in March to aid in recycling. Through its "Mail Back" (http://www.usps.com/communications/newsroom/2008/pr08_028.htm) program, customers can use free envelopes found in 1,500 post offices to return at no cost inkjet cartridges, PDAs, Blackberries, digital cameras, iPods, and MP3 players. Best Buy (http://www.bestbuy.com) recycles cell phones, ink cartridges, and rechargeable batteries. FedEx Kinko's (http://www.fedexkinkos.com) recycles inkjet and toner cartridges. Office Depot (http://www.officedepot.com) recycles used computers, monitors, digital cameras, fax machines, cell phones, and other electronics. OfficeMax (http://www.officemax.com) recycles inkjet and toner cartridges. Radio Shack (http://www.radioshack.com) recycles cell phones, NiCad batteries, and rechargeable batteries. Staples (http://www.staples.com) recycles used computer monitors, cell phones, PDAs, inkjet, and toner cartridges. T-Mobile (http://www.t-mobile.com): T-Mobile's recycling program accepts any make and model of wireless phones, batteries, PDAs, and accessories. In addition, 100 percent of refurbished product’s net proceeds go to charity. Verizon Wireless (http://www.verizonwireless.com): Verizon Wireless' HopeLine (http://aboutus.vzw.com/communityservice/hopeLineRecycling.html) phone recycling program donates cell phones, air time, and money received from refurbished cell phones to assist victims of domestic violence. The company also recycles used cell phones and equipment from all service providers. Walgreens (http://www.walgreens.com) recycles used dry-cell batteries, NiCad batteries, rechargeable batteries, and inkjet cartridges. If all else fails, a quick check on the earth911.org (http://www.earth911.org) Web site can help you find other recycling locations in your neighborhood. The Web site is very easy to use. Simply type in a ZIP code and the material/product you want to recycle, and find a list of local centers. |
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| Making an attractive home-purchase offer By Dian Hymer It's easy to assume that negotiating is adversarial. You, the buyer, are on one side -- the side that wants to buy a property for the lowest price possible. The opposition on the other side is the seller who wants to sell for the highest price possible. You're locked in a tug of war to see which side will win. It's more productive to look at a negotiation as a problem-solving process. You and the seller may have different ideas about what price the property should sell for. However, you're united in a common goal of consummating a deal. The challenge is to resolve your differences through a process of give and take until you either reach your common goal, or decide to go your separate ways. Of course, you have to arrive at a mutually agreeable selling price for a sale to go through. Sometimes this will happen quickly; sometimes it's a drawn-out process that can last over days or even weeks. HOUSE HUNTING TIP: Patience can be your ally. Sometimes rushing the process can quicken its demise. In fact, you may be better off waiting before starting the process if you think that the asking price is too high. For the first time in years, we are in a market where some home sellers -- typically those who bought recently -- won't be able to sell their home for a profit. But, they may need to test the market to be sure. If this is the case, the best negotiating strategy may be to offer nothing until the sellers are close to reducing their asking price. There can be a benefit to making an offer just before a price reduction is made. If you wait until the price is lowered, you could end up paying a higher price if other buyers suddenly become interested. In order to make sure you know that the sellers are contemplating reducing the price, ask your real estate agent to talk to the sellers' agent and make sure that the sellers are made aware of your interest. Don't be bashful about the fact that you are interested, but not at the current price. This way, you may receive a call when the sellers decide they'd like to see an offer from you. When you make an offer and there's no competition from other buyers, your initial offer price should leave you room to move up in price. But, it should not be so low that it's insulting to the seller. Otherwise he or she might not respond at all. An offer that's much lower than the market would give the seller the impression that you can't afford more, so there's no point in issuing a counteroffer. Buyers often think that if they start too high initially, they'll end up paying too much. Your initial offer price should be good enough to entice the seller into a dialogue. It's a price to get the ball rolling. From there, you can move up in small increments, if necessary. Don't get so caught up in negotiating the price that you overlook other opportunities for consensus building. Most good negotiations have a sense of fairness about them. During the process of your negotiation, you and your agent should brainstorm all the possible ways that you can accommodate the sellers. Do they need a quick close? If so, they might be willing to give more on price for a speedy close. However, you might want to hold up offering this information at the beginning of the dialogue. That way, you have something more of value that you can offer the sellers in exchange for a further price concession. THE CLOSING: When you get close on price, offering to split the difference can put a seal on the deal. |
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| Hot Links |
| Ray Wells' Web Site w/ Great info! http://www.RayWells.com Recent Virtual Tour Inventory http://www.visualtour.com/inventory.asp?u=34471 www.GonzalezandWells.com Home Page http://www.GonzalezandWells.com Ray & May's R.E. Blog - San Gabriel Valley http://SanGabrielValleyRE.Blogspot.com/ Sotheby's International Realty http://www.siroffices.com/brokerages/pasadena/home.asp |
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