5 Home Projects to Avoid

Five home improvement projects that won't increase the resale value of your home.

Home Seller: Why Isn't My Home Selling?

Have you gone thru more than one price reduction?  Don't understand why your neighbor's home is already in escrow while your home is still on the MLS showing "Active"?

The majority of the time, price is the reason why the home isn't selling.  Buyers will think the value of your house is less than the list price you have.

Market Value is the worth of what a buyer is willing to pay and a seller willing to accept.  Arriving to the magic price to enter escrow and close is a difficult negotiation.  By hiring a real estate agent and listen to their professional opinions you can market your home and sell fast.  It's not wise to go with an agent because they say they can get you more than what the other agents think the house will sell for.

Here is a list of most common mistakes sellers make when setting a price:

1) Price Based on Need:
What you want to make from the sell of your home will certainly fail because buyer will not take your needs into a factor.  Base the price on current market value that will sell your home fast and save you money in the long run.

2) Price Based on Ego:
Let say that your neighbor home sold for $200,000 last year and you want to $250,000 because you "know" your house is better regardless that the market increased five percent since your neighbor sold.  Unfortunately for sellers,  buyers enter the market being educated about the fair market value which weights on their decision to consider looking at your home and placing on offer.

3) Price Based on Greed: 
Even if you "test the waters" and price your home higher than a market value because "you never know, someone could come along who just has to have it.  Besides we can always lower the price later."  The issue is that buyers realize the price is unrealistic and discourages them from taking a second look.  If there is a price reduction but not enough to current market value, the home will sit even longer and pretty soon you have a listing that has been on the market so long buyers decide there is something wrong and steer clear from the home.

To price your home right, real estate agents can give your Competitive Market Analysis (CMA) which breaks down the sales price of homes that are similar to yours in location, size, age and condition.

The market is always changing and your agent should be updating your CMA whenever anything comparable to your property sells.  

4) Put on a Good Show:
Second biggest reason a home isn't selling is your home is clutter and is unorganized.  Buyers are looking to feel a "connection" to the home.  They want to be able to imagine their daily routine and future in the home they want to purchase.

5) Can't buy what they can't see:
Allow Appointment-Only showings or a lockbox to allow buyers to view the home before placing an offer.  When you make it difficult for people to see your property, then the chances of a sale at the price you want could drop considerably.

6) Out of Your Hands:
It's not always the seller's fault that a house isn't selling.  The market changes with in time and buyers tend to disappear.  Perhaps new construction homes are opening up nearby and taking all the attention your home could have gotten.

Selling your home takes necessary adjustments to make buyers place an offer on your home in today's market.

For a FREE Competitive Market Analysis in your neighborhood, click here to fill out the your request. A report will be given within minutes. Or give me a call at (818) 384-5928.


Source: Realtor.com

Moderation Is Key

It's a seller's market for homes that are priced right and guess what? Not all those properties are updated homes. Yup.... certain updates will help your home re-sell better in your local market.

So before you go all renovation crazy on your property, give me a call to help you determine which upgrades may help your property sell in less time.

Call me today at (818) 384-5928 or (818) 380-5227. 

Homes are Selling Faster than Last Year

Low Appraisals are Complicating Selling and Refinancing Homes

by Yvette Betancourt 

The appraisal process has become a challenge, especially for homeowners who are looking to secure historically low interest rates.  Let's not forget the challenges of a low appraisal for home buyers purchasing with a loan. 

N.A.R. (National Association of Realtors) conducted a national survey to real estate agents  and found that a low appraisal has caned a contract to be canceled (11%), contract was delayed (9%), and a contact renegotiated to a lower sale price because of a low appraisal valuation (15%).  

But Why?

Some appraisals are being conducted by large appraisal management companies who may not be experience in the neighborhood.  In Los Angeles, a one-mile radius in Valley Village, CA will include homes from affluent Studio City and up-and-coming North Hollywood which has drastic home values.  

What can be done if you are caught in a low appraisal fiasco?

If your property has multiple offers, ask the appraiser to note the number of bids in the report to show that the market is appreciating and the amount of interest in the property.  This may or may not work but it's worth a shot.

Remember that an opinion of the appraiser doesn't always determine the sale price.  It's the data.  

If you are a home buyer and a home you are in escrow in has a low appraisal, the lender will cap the loan and the difference (if you are to continue with the purchase) is on you, the home buyer. 

In the end, the appraiser isn't the bad villain in these situations.  For the most part, they are trying to do the best work they can.  Its the location and it's current local market that makes the difference.  If you have a high number of foreclosures and REOs in your area, this will cause problems, especially there aren't homes similar to your property.

Source: latimes.com/business/realesate

Open House in Sherman Oaks this weekend

Flipper lists Rihanna's former home

I'm not much of a celebrity real estate follower. But i do love a good design and a great remodel of any home! 

The investor bought this house last year for about $3.3 million.  The home was a short sale with major issues, according to the LA.Curbed.com article.  Rihanna lost $2 million when she sold her home last year. The investors added lots of upgrades and the home is on the market for $9.95 Million with Valerie Fitzgerald Group.  

The 8,520-square-foot Beverly Crest contemporary sits on about three-quarters of an acre with unobstructed canyon and city views. Amazing remodel of the home!

To view pictures of the remodeled home:
http://tinyurl.com/9jfeafj

What every Seller wants to know!

Here are some great questions to ask during a listing presentation.

1) How much is my home worth?

Get an idea in price range of the value of your home.  This is the first determining factor of deciding to sell and list with an agent. 

2) How much will you list my house for? What is the estimated sale price?

Listing the home at the right price is important! Real Estate is a price driven industry. Choose an agent that understands your local and city real estate market data.  The sale price should be a number that is median range in your area and is competitive.  

3) What will you do to get the property sold?

Marketing is everything in selling real estate.  In today's techie world, buyers are finding homes on the internet first before stepping through the front door.  Choose an agent with a great online presence for your home and great marketing strategies.  First impressions are everything.

4) How long will it take to sell?

Remember, any sale price number an agent gives you is based on current real estate data.  In the end, the aggressive the price is in the market, the fast it will sell.  A high sale price, the listing will stay longer on the market. 

5) How much will I walk with at the close of the sale?

Ask for a net sheet! It's important to know what your estimated seller's cost could be.  

For any tips, real estate information, or a comparative market analysis, contact me.