Just Sold!

5 Traps To Avoid When Selling Your Home

Do you ever find yourself completely overwhelmed by real estate advice from every direction on how to stage, market, negotiate, and ultimately sell your home?  With all the information we see on a daily basis, it’s easy to overlook to most important details.

Avoid these traps to get the best offer with the highest value, and take the stress out of selling your home.

1. Online-only Marketing.

Don’t drown in the world wide sea of online data!  With the overload of information that is force fed to us every day, it’s important that everyone sees your home everywhere.  Advertising your home in print makes you stand out locally.  At The Real Estate Book, our magazines even use QR and text codes that instantly connect home shoppers to your home listing on their mobile phones.  You’ll reach home buyers where they live, shop, work and play.  Ask your agent about advertising opportunities with The Real Estate Book in your area!

2. Poor Pricing.

No matter what they’re buying, it is not a surprise that consumers want the most bang for their buck.  Home buyers tend to stay away from overly high prices and are drawn to the homes that are priced competitively.  However, if the price is too low, buyers will wonder if there is something wrong with the property.  Make sure you research your competition and consult with your real estate agent before deciding on a price.

3. Hovering.

Although you may want to stick around during a showing, it may not be the best idea.  There is definitely an emotional aspect when selling your home, so hovering while a potential buyer is touring your home may make it difficult for them to envision the home as theirs, and may feel uncomfortable or that they’re intruding on your space.  Take a breather and go run some errands while your real estate agent does the work.

4. Clutter Inside & Out.

First impressions are everything, and the first thing that buyers will see is your home’s exterior.  Have a well-kept yard, clean driveway and overall curb appeal, which will increase the likelihood that buyers will want to see more.  Now for the interior . . . Make sure your home is absolutely free of all clutter – it should be clean and sparkling!  Help buyers imagine their own things in your home by stashing personal items, including photos and mementos.

5. Lack of Appealing Photos.

Before a buyer even thinks about contacting a real estate agent or coming to see a house to buy, they “pre-shop” online.  Be sure to provide photographs that frame your house and its amenities to sell. Capture full rooms that are well lit and don’t even think about including pictures of cluttered messy spaces!  Home buyers want to see what your home has to offer, and be able to visualize themselves living there.

As you go through the home selling process, avoid these traps to get the best offer quickly.  Remember that your real estate agent is more than happy to answer any of your questions and provide the most valuable help possible.  Be sure to always take advantage of all your resources.

When Should You Put Your Home on the Market?

Question: When is a good time to put your house up for sale before you want to move?

Answer: Only a crystal ball can completely solve the conundrum of how to plan a moving date when you’re dependent on finding a buyer for your home. Like many aspects of the real estate world, determining when you should list your home for sale is both an art and a science.

The art comes in when you work with an experienced Realtor who has a strong feel for the local market, knows your neighborhood and understands the ebb and flow of home sales.

The science part of your decision is easier, because your local Realtor’s association tracks the data on how long it takes for homes to sell on a monthly basis.

According to the National Association of Realtors, the median time on market for all homes was 93 days in September 2013, little changed from 92 days in August, but 10.58 percent faster than homes were selling in September 2012.

You can see updated data on the realtor.com Monthly Real Estate Trends Report that tell you what the median age is for listings in your area and whether homes are selling faster or slower than in the previous month and during the same month in the previous year. You can also ask a Realtor what the average time is for a home to sell once it’s listed in your community. Remember, though, that statistics only look at the broad picture and won’t be exact in predicting how long it will take to sell your particular home.

There are several points to take into consideration about timing your list date. You should consult with your Realtor about these points:

Condition and Price

Remember that in order to sell your home as quickly as possible it needs to be in the best possible condition and priced correctly the day it goes on the market. If you want to move in three months or six months or even in one month, start working on your home now. You’ be competing with buyers? expectations of a move-in ready home, which means your home needs to be as squeaky-clean as possible, neutralized in terms of your décor and as clutter-free as you can make it. How long it takes to get your home ready for sale depends on whether you tip the scale toward being a hoarder or a clutter-phobe and whether you’ve kept up with regular maintenance.

On the pricing side, an experienced Realtor can share with you a comparative market analysis of homes that  recently sold in your area, your current competition, and homes that have been taken off the market. Keep in mind that if you overprice your home at first, it will likely take longer to sell and even at a lower price should buyers view it as having been on the market for too long.

Think About the Season

Traditionally (as realtor.com has informed buyers in other articles), the spring market is the most robust for home sales, which then slow down a bit in the summer, pick up again in the fall, and slow down again around the winter holidays. This doesn’t mean you should only sell in the spring, but you should think about the fact that fewer buyers will be looking for homes between Thanksgiving and New Year’s. On the other hand, you may have less competition from other sellers.

Negotiate

You can negotiate with your buyer to establish a settlement date that’s convenient for you, or to rent back your home after the settlement for up to 60 days if you need to delay your move.

Regardless of when you put your home on the market, you should always have back-up plans for how you’ll handle the situation if your home lingers on the market or, better yet, sells quickly for a high price.

 

Where do renters plan on buying a home?

Why Use a Realtor When Selling Your Home

Selling a house can be a complex process. A Realtor can help you at every stage, from setting a price to marketing the property to closing the sale.

Setting the Price
The selling process generally begins with a determination of a reasonable asking price. Your real estate agent or Realtor can give you up-to-date information on what is happening in your local marketplace, as well as the price, financing, terms and condition of competing properties. These are key factors in marketing your home and selling it at the best price. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property.

Marketing
The next step is a marketing plan. Marketing exposes your property to the public as well as to other real estate agents through a Multiple Listing Service, other cooperative marketing networks, open houses for agents, and so on. In many markets, a substantial portion of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. The Realtor Code of Ethics requires Realtors to use these cooperative relationships when they benefit clients.

An agent will also know when, where and how to advertise — which medium, format and frequency will work best for your home and your market. Though advertising can be valuable, the notion that advertising sells real estate is a misconception. National Association of Realtors studies show that 82 percent of real estate sales are the result of agent contacts from previous clients, referrals, friends, family and personal contacts.

Providing Security
When a property is marketed with an agent’s help, you do not have to allow strangers into your home. Agents will generally prescreen and accompany qualified prospects through your property.

Negotiating
Your agent can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

Monitoring, Renegotiating and Closing
Between the initial sales agreement and the closing (or settlement), questions may arise. For example, there are unexpected repairs that require the buyer to obtain financing, or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing.

Getting the Realtor Guarantee
All real estate licensees are not the same. Only real estate agents who are members of the National Association of Realtors are called Realtors. They proudly display the Realtor logo on their business card, website, and marketing. Realtors subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. Realtors are committed to treating all parties to a transaction honestly. An independent survey reports that almost 85 percent of home buyers would use the same Realtor again.

Getting Expert Assistance
Finally, consider the scale of your transaction. Selling your home is one of the biggest financial decisions you’ll make. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to solve it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the relatively small cost of hiring a Realtor and the large potential risk of not hiring one, it’s smart to find a professional to sell your home.

Go Green with Solar Energy for Your Home

    Global warming has become a hot topic and is often the driving force behind the need to find alternative sources of energy. Even people who are not overly concerned about environmental issues look to alternative energy as a way to fuel their homes more efficiently. Solar energy has become one of the popular ways to accomplish that goal.

Solar panels that produce this form of energy can be found on professional establishments and in residential areas with increasing frequency. Homeowners who are interested in solar energy should educate themselves to fully understand their usefulness.

Solar Energy Basics

Solar panels are one of the most common ways to harness the power of the sun and create energy. They do this by using technology known as photovoltaic (PV) cells or solar cells, which directly convert sunlight into solar energy.

When an assembly of these cells is connected, they form modules or panels. Originally, solar panels were extremely expensive, placing them outside of the financial reach of most homeowners. Over the years, however, the cost of solar panels has decreased significantly, making solar energy more affordable.

Solar Energy Benefits

There are many benefits of solar panels and the solar energy they produce.

Often, these benefits are the first thing that attract most homeowners. Although the actual installation of solar panels comes at a cost, the power produced is free. While there may still be some continued cost for traditional electricity, solar panels reduce the amount of electricity the household uses.

This reduces the dependency on the power grid and helps homeowners to significantly reduce their energy bill. Because solar panels typically do not rely on the power grid, people who have them installed are not affected as much during brownouts or power failures.

People who live in areas with limited access to traditional power sources benefit greatly from the installation of solar panels, as solar energy provides them with the power they would normally not be able to obtain.

In addition, when selling a home after the installation of solar panels, homeowners can often expect an increase in the value of their home by a minimum of 20%.

Environmental Benefits of Solar Energy

The environmental benefits associated with solar panels also play a large role in the growing interest in and use of solar energy. Clean air and the preservation of natural resources are at the top of that list.

The solar energy created from the use of these panels comes from a renewable energy source (the sun). This means that beyond the resources used to create the panels, when people use solar power, it does not come at the cost of nonrenewable resources—or the burning of fossil fuels.

According to the Environmental Protection Agency, greenhouse gas emissions are a major contributor to global warming. The EPA also notes the production of electricity is one of the largest sources of these emissions, creating roughly 33% of the total emissions in 2011, according to their most recent report on the subject.

The production of solar power using installed solar panels, however, does not produce any greenhouse gases and reduces the carbon footprint. It does not release any gas, smoke or other chemical to pollute the atmosphere and does not contribute to acid rain or smog.

It further reduces the release of greenhouse gases by eliminating the need for trucks to move and deliver coal, oil or gasoline.

3 Emotional Mistakes Home Buyers Make

Finding your first home is an emotional experience. Owning a home has long been a mark of success and comfort—a space to make truly your own. It’s no wonder home buyers fall so in love with the idea of owning a home that sometimes they overlook important areas that will impact their bottom line.

Buying a home is, after all, an investment, too. Make sure you consider your purchase with a clear head before signing on the dotted line.

 

1. Home Buyers Don’t Remove the Rose-Colored Glasses

When purchasing stocks and bonds, it is rare for someone to fall in love with their portfolios. It’s an investment, right? The only important thing is the rate of return on your money.

When people look for their first home, they often romanticize it. They look for their “dream” home through rose-colored glasses. Oh sure, there’s some structural damage, but the kitchen has everything you always wanted. The price busts your budget, but the library alcove is heavenly!

Although this house will become your family home, you must treat it as you would any investment. Take the emotion out of the equation. Don’t ignore those, “Sure, there’s a problem, but … “, ideas.

They may not be dealbreakers, but you might be better off if you can muster the strength to walk away.

 

2. Home Buyers Lose Control

There may be a number of well-intentioned people working with you to purchase your first home. Real estate agents, mortgage brokers, parents and friends will all have advice. It can be confusing, especially if you are a first-time home buyer.

Each person advising you has their own point of view and experience. Remember your parents’ real estate needs aren’t the same as yours. A fast-changing housing market could put your accountant’s advice in the dustbin. The mortgage broker might be biased.

Weigh all their advice accordingly. Just don’t let it stop you from making the decisions you know are correct for you and your family as home buyers.

3. Home Buyers Aren’t Decisive

You will need to make a lot of decisions throughout the home-buying process. If you’re uncertain about major parts of home purchasing to begin with, don’t go down this path any further.

Make sure you can afford the mortgage payments over the long term. Make sure you can live in an area for years—selling a home isn’t always easy, and you’ll maximize your investment return if you can stay a while.

When you are sure you’re ready, make a list of all the things that are important to you:

- Do you need to move by a certain date?

- Desire a certain school district?

- Have space requirements?

Also, make sure you’ve got a reasonable sense of what you must have, and what you can—if pushed—live without. Kitchen island with a built-in second sink, we’re looking at you.

Once you know what you absolutely need in a home, don’t budge from that list. It might be tempting to waver if you find a home that meets other needs. The best thing is to tell your REALTOR® to only show you homes that meet your basic needs. Stick with what you know you need.

For instance, if you know you can only afford a home which is $150,000 or less, don’t ever step foot in a home listed at $175,000. And if you know you need at least two bathrooms, don’t view a home with only one.

If you are decisive, you’ll save a lot of time. And in the end you’ll wind up with a house that you can call a home—and a good investment—for the long term.

New Homeowners and Remodeling Projects

 

 

Should You Buy Someone Else’s Customized Home?

Buying a previously-owned customized home can open up some attractive and unusual options for a homebuyer.

You may love everything the former owner incorporated into the house and appreciate the extra amenities. If the features aren’t to your liking, however, you’ll need to factor in the additional cost and inconvenience of remodeling the home.

Here are the four factors to consider when buying a previously-owned customized home.

1. Indoor Customizations

Many typical indoor features are innocuous and often add value to the customized home:

§  custom and unusual floor tiles or coverings

§  wallpaper

§  chair rails and ceiling moldings

§  skylights

§  special light fixtures

§  built-in architectural shelves

§  work areas

§  movie rooms

§  mudrooms

§  children’s playrooms

Even if you don’t have kids who will use a playroom, it may be easy to modify the space and fixtures to fit your need for a home office. Repainting the walls, removing wallpaper and replacing carpet with something better fitting your taste are things you’d probably do in any previously-owned home, custom or not.

On the other hand, other features might take more time and expense to modify or maintain:

§  home gyms

§  special electronics, like built-in A/V systems

§  central home vacuuming system

§  unusual bathrooms

§  saunas

§  indoor pools
 

2. Outdoor Customizations

Customizations extend to the outdoors, too. These can include the following:

§  special exterior home trim features such as moldings and cornices

§  customized gardens and walkways

§  gazebos

§  workshops

§  greenhouses

§  guesthouses

§  unusual plantings

§  swimming pool area

§  statues

§  outdoor cooking and entertaining areas

These options can be wonderful if put to good use, but you don’t want to wind up perplexed as what to do with the spaces. While it may be easy to replace and plant new greenery in the garden, it may be costly to modify custom outbuildings, a pool or entertainment area for other purposes.

3. Buyer Pre-Approval

Keep in mind that customizations to a home can affect financing. When applying for a loan, you may need to create a list of the customizations for the lender. Some banks may not want to loan you the entire amount of the home’s value with the customizations.

Or, you may be required to put down a higher down payment. An appraiser will need to physically visit the property and assign a market value to the home and its customized features.

4. Do You Like the Home?

As with any potential home purchase, envision yourself living in the home. Don’t buy a previously customized home just because it is unique. You have to live there and be comfortable long after you have moved in.

If you don’t like the customizations and want to change them, get remodeling estimates before you buy so you are aware of all the expenses involved. After you have all of the information, put it down on paper and decide if it is worth the extra expense to make changes on top of the selling price.

A previously-owned customized home may just be the house of your dreams—and well worth the cost.
 

Title Terms: CC&Rs - What does it mean?

As part of the disclosure process, once a prospective buyer has an accepted offer on California real estate they will need to review the CC&Rs (if there are any) that exist for the home being purchased.

CC&Rs stands for Covenants, Conditions and Restrictions 
Sounds complicated, but it’s not really...although they can be VERY lengthy with LOTS of legal terms.  You will find them most commonly in subdivisions/housing tracts and they are generally recorded documents.
Simply put, CC&Rs are a description of things a homeowner can and cannot do with their property on the area in which the property resides.

Covenants are promises to do or not do certain things.
The homeowner might be prohibited from parking an RV on the street or in the driveway (a separate area would normally be provided).

Conditions are pretty much the same as covenants, except that it refers to either the monetary penalty, court injunction or action taken against the homeowner for violating a covenant.  A condition can also specify an action that a homeowner must take in order to correct a covenant violation.

Restrictions limit the activities of homeowners
(e.g., You can’t turn your property into a farm) to assure that the property use is consistent with the land use in the general area.

If there is a Home Owner’s Association (HOA) they have the authority to enforce these rules.  Please Note: CC&Rs DO NOT report on the status or solvency of their governing HOA.

SoCal home prices up 21%; February sales volume hits 6-year high

The six-county Southland saw the median home price rise nearly 21% over the year, while remaining essentially flat compared with January, real estate information provider DataQuick said Wednesday.
A total of 15,945 new and resale homes and condos sold in February — the highest volume for a February in six years. Buyers in Southern California paid a median of $320,000 last month as fewer homes sold in lower-cost Riverside and San Bernardino counties that have become a haven for investors looking to flip or rent out houses.

“Most every gauge shows prices are up significantly over the past year, even after adjusting for changes in the types of homes selling,” DataQuick President John Walsh said in a statement.
Still, last month's median price was still well off the 2007 peak of $505,000, Walsh noted.
The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general rise or fall in values.
Home prices have been on the rise as inventory has tightened significantly and interest rates have remained low. Investors have scooped up many low-priced and bank-owned properties to rent or flip and foreclosures have made up a declining share of homes sold.
Foreclosed homes were 15.8% of the resale market last month, down from 32.6% a year earlier.
Absentee buyers — chiefly investors, along with some second-home buyers — accounted for 31.4% of home sales in February, the highest figure since DataQuick began tracking the figure in 2000. Buyers paying with cash purchased a near-record 35.6% of homes.
Data from the previous two months shows investors playing a major role, Walsh said. But that may be influenced some by the holiday house-hunting season, which tends to skew the buyer pool more toward investors.
“March and April will offer a better view of how broader market trends are shaping up this year,” Walsh said. ”One of the real wild cards will be how many more homes go up for sale. More people who've long been thinking of selling will be tempted to list their homes at today's higher prices.”
As prices rise, more homeowners will escape their negative equity positions, allowing them to sell their homes and potentially loosening supply. “A meaningful rise in the supply of homes on the market should at least tame price appreciation,” Walsh said.
All counties — Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura — saw significant price increases.
Orange County saw the most dramatic price gains as the county’s median sales price rose 22.3% to $477,000.  In Los Angeles County, the median sales price rose 17.1% — a sizable jump, but the smallest of the region. Buyers there shelled out a median of $350,000.

Why For-Sale-by-Owner Sales Fail

Homeowners obviously know their homes better than anyone, but that doesn’t mean they’re the best salespersons for their properties.

Some sellers are tempted to try a For Sale by Owner (FSBO) transaction because their local community is in the midst of a sellers’ market and they think they can sell easily without help. Others try the FSBO route because they want to maximize their profits and avoid paying a commission to a Realtor.

However, statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket. According to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000, a difference of $40,100.

Why to Sell With a Realtor

Choosing to sell with a professional rather than on your own makes sense for a variety of reasons:

◾A Realtor has access to market data about recent sales and other homes on the market that can be used to price your home appropriately. Studies show that homes priced right when they’re first listed sell more quickly and for a higher price than those that linger on the market.

◾A Realtor can show your home when you aren’t available, can respond to inquiries from potential buyers and their agents, and can get valuable feedback from visitors – all things that save you time.

◾A Realtor can look at your home objectively and suggest ways to improve its appearance – by staging and minor repairs - so it appeals to more buyers.

◾Buyers typically prefer to look at a home without the seller present so they can feel more comfortable exploring the rooms and visualizing themselves in the property. At an FSBO sale, the seller must be present.

◾A Realtor can screen visitors to your home, which provides a measure of safety that FSBO sellers don’t have. In addition, by checking to see if the buyers are legitimate and can afford to purchase your home, a Realtor can help you avoid wasting time showing your home to unrealistic buyers.

◾Realtors have professional marketing expertise, contacts with other Realtors who work with buyers, and the support of a brokerage that can market your home more widely than you can as an individual.

◾A Realtor can help you negotiate a contract that not only garners you an appropriate price for your home, but that meets your needs for a settlement date and perhaps includes a period when you rent back your home from your buyer. In addition, a Realtor can make sure your contract is in compliance with all local regulations.

FSBO Dangers

Most buyers today work with a buyers’ agent to represent their interests. If you choose to sell your home on your own, you’ll be negotiating with a professional and relying on your own skill to finalize a contract. Not only could you end up selling your home for less money, you could leave yourself open to potential legal problems unless you have the contract vetted by an experienced real estate attorney.

FSBO transactions can be successful, of course, but 90 percent of homeowners prefer to work with a professional rather than risk an unsatisfactory home selling experience.