Deb Espinoza's Real Estate BLOG: California

Prepping Your Home for Resale? Get Ready to Take the Stage

It may seem counterintuitive to put decorator touches on a home you've decided to sell, but "staging" your home-fixing it up and decorating it so it will appeal to the broadest range of potential buyers-pays real dividends. According to the Concord, California-based International Association of Home Staging Professionals (IAHSP), even in the 2007 market slowdown the average professionally staged home sold within 32 days, compared to 160 days for comparable non-staged homes. In fact, 93 percent sold within one month. And the best part? On average, they sold for an increase of 3 to 10 percent.

Hiring a professional stager can cost from a few hundred to thousands of dollars depending on the amount of work in question, but will save you a lot of legwork and elbow grease. I am a member of the International Association of Home Staging Professionals and a Real Estate Professional. Stage Presence Homes is a full service Agency doing all we can for our clients.

Here on some tips on things you can even do yourself:

INDOORS


Staging allows potential buyers to visualize their lifestyle within your home. Your goal is to showcase your home at its cleanest, roomiest and brightest-while avoiding adding too much of your own personality. Here are some proven winners:
    •    Paint


Freshen walls by painting them in a neutral hue.
    •    Upgrade lighting


Replace out-of-date fixtures and use 100-watt bulbs to brighten the home for showings.
    •    Renovate the kitchen and/or baths


Replace stained countertops, old faucets, unfashionable lighting and damaged floors with neutral choices. Cabinetry in an outdated finish can be inexpensively re-faced. In the kitchen, even entry-level stainless-steel appliances will give your kitchen a high-end look.
    •    Cut clutter


Don't overstuff your rooms. Pack away your knickknacks and limit furniture to the basics, storing side tables, loveseats, small bookcases and oversized toys out of sight.
    •    Upgrade flooring


Use a steam cleaner on carpets, or, if you have hardwood underneath, consider ripping broadloom out altogether. Refinish hardwood if needed, as it's a strong selling point.
 
OUTDOORS


Knowing that many potential buyers do "drive-bys" before committing to an open house or showing, exterior staging should maximize your home's curb appeal and make visitors want to come inside.

    •    Repaint


If your porch, front door or siding needs painting, take care of it ASAP.
    •    Re-roof


While it can be a big-ticket item, if you're due for re-roofing, it's better for you to have it done now than expect potential buyers to take on the hassle-many will simply pass on your house instead.
    •    Cut clutter


Get rid of any outdoor knickknacks like leftover holiday decorations, novelty yard ornaments or signs. The only outdoor accessory your front yard needs is tidy landscaping and landscape lighting.
    •    Clean the driveway and sidewalk


Use a pressure washer to clean your sidewalk and driveway.
    •    Freshen the porch


Replace an out-of-date mailbox, street number and porch light. Flank the front steps or front door with a pair of large urns with seasonal plants, for a pretty look.


For more information on getting your home ready to sell visit my website at StagePresenceHomes.com or contact me at DebSDRealEstatePro@gmail.com

For Sellers who want to get a good offer quickly on their home there are 5 things that will stand out to buyers that you will want to address BEFORE you list your home:

1. Garage door- Unfortunately builders have not figured out that this isn't the most attractive part of a home and they continue to put the garage in the center stage spot of a home. For this reason the garage door can make or break your curb appeal. If its an old wood one, or a twisted smashed in metal one, replace it. If it's just dirty then you may want to replace the top panel with the window panels and put a coat of paint on it. There are some new "faux' painters out there that can make your garage door look amazing for a few hundred bucks. Also clean the grease stains of the driveway and if there is severe cracking you may want to resurface or replace the driveway as well.
2. Windows- Most buyers want a well insulated home and this includes new vinyl windows. For less than $300 each you can put retrofit vinyl windows in, they also look much better from the exterior than the old aluminum frame windows.
3. Flooring- Carpets should be clean and stretched properly, without any lumping. Tiles and grout can be professionally cleaned by your local carpet guy with a special machine that makes the floor look brand new. After it's cleaned put a coat of sealer on to keep the grout in top condition. Buyers DO NOT want a flooring allowance, and your idea of an allowance won't be theirs. Put the new carpet in before you list your home. It will also be a benefit to replace baseboards with a new, wider style. The little details can make a difference.
4. Exterior paint- The exterior of your home should be clean and fresh. If painting or a new stucco 'fog coat' isn't affordable then get a good power wash and at least freshen up the trim with a fresh coat of paint. A new coat of paint on your front door along with new door handles and locks and porch light shows as a welcome site when prospective buyers walk up.
5. Bathrooms and kitchen- These are very important rooms to buyers. If you can't afford a full rehab to bring them up to date then give them a good, professional cleaning and replace fixtures. You may also want to replace lighting if your bathrooms have the 'hollywood' style strip of round ball lights above or around your mirrors or if your fixtures are the old gold brassy look.

If you are looking to list your San Diego home, call Deb at Stage Presence Homes to come out and give you some ideas on how to make your house stand out and sell quickly for the highest price. You only get one chance to make a first impression! Stage Presence Homes Real Estate

Pre-foreclosure Period

Court foreclosures only occur if a lender desires a deficiency judgment. This process gives a borrower up to one year to redeem the property after the foreclosure sale.

In almost all cases, foreclosures are handled out of court. The process begins when a lender file a notice of default with the county recorder identifying the default amount and the date the borrower must pay off the default. The notice is mailed to the borrower and other affected parties.

Up to five business days before the trustee sale, the borrower may pay off the default plus any applicable costs of foreclosure and stop the foreclosure process. Three months after the notice of default is filed, the lender can schedule a trustee's sale of the property.

Notice Of Sale/Auction

At least 20 days before the trustee's sale, the notice of sale must be posted on the property and in one local public location. The notice is also published once a week for three weeks in a local newspaper, starting at least 20 days before the sale date. The notice is mailed to the borrower at least 20 days before the sale and to anyone who requests the notice. The notice must contain the date, time, and location of the sale, the property address, and the trustee's contact information. In addition, the notice of sale must be recorded with the county recorder at least 14 days before the sale.

The trustee's sale is a public auction and the property is sold to the winning bidder. The trustee may require bidders to pay the full bid amount in cash or cashier's check. Anyone may bid at the sale, including the lender and any junior lien holders. A trustee's sale may be postponed by announcement at the sale. If a sale is postponed more than three times, a new notice of sale must be issued.

After the sale is complete, the trustee transfers ownership to the winning bidder. The borrower does not have the right to redeem the property after the sale.

Contact me at Stage Presence Homes for a list of homes in forclosure in your area.

Click here to see statistics on California forclosures.

California housing affordability improves in Q3
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 52 percent in the third quarter of 2011, up from 51 percent in second-quarter 2011 and was up from 46 percent in the third quarter of 2010, according to C.A.R.’s Traditional Housing Affordability Index (HAI). 

Home buyers needed to earn a minimum annual income of $61,530 to qualify for the purchase of a $292,120 statewide median-priced, existing single-family home in the third quarter of 2011.  The monthly payment, including taxes and insurance, would be $1,540, assuming a 20 percent down payment and an effective composite interest rate of 4.63 percent.  The effective composite interest rate in second-quarter 2011 was 4.85 percent and 4.78 percent in the third quarter of 2010.

From California Association of Realtors Newsline

Kitchen Remodeling on a Budget: Tips & Ideas

Invest in the most popular room of your home - the kitchen. Whether you’re selling or simply want to upgrade, here are some simple tips and ideas to get you started without breaking the bank:

1. Set a budget! Know what upgrades will give you the most value for your money and do your best to stick with your budget.
2. Plan ahead. Find patterns, colors and textures that you like from magazines, home improvement stores and the Internet. Put them in a folder for quick reference.
3. Tackle one project at a time to insure you don’t get overwhelmed or over-your-head.

Step-by-Step Guide on Kitchen Remodeling on a Budget:

Cabinets
One of the easiest on most cost effective ways to upgrade is to paint or stain your cabinet doors and add new hardware. This will make one of the biggest impacts since cabinets usually compose the greatest surface area of a kitchen.  Take a door into your local home improvement store and ask for professional advice if you aren’t comfortable making the choice on your own.

Kitchen Counter Tops
Granite isn’t always the best investment for every home, not to mention it can be expensive. You can opt for concrete or granite overlay. Do your research to find what suits your budget, best style, and greatest return on investment.

Kitchen Floor
Bring home samples of flooring based on your style and budget before making a final decision. Keep in mind that many real estate professionals agree that a kitchen remodel splurge should be saved for the countertops and not the floors. You want to make sure you get great value from any upgrades you do.

Saving Money on Kitchen Appliances
Big box stores have great deals on appliances that are gently scratched or dented. Only buy if the appliances aren’t working correctly or completely throw off the other upgrades. If your appliances are in good working order and match in color and style, save your budget for more beneficial upgrades. You can also give your appliances a new, fresh look with paint. Look into having it done professionally or purchase appliance paint at your local home improvement store.

Kitchen Lighting
Lighting can be a simple and cost effective way to completely upgrade the kitchen. With most kitchens wired for overhead lighting, a new chandelier can make a big difference. There are options for less than $150! To make an even bigger impact, be sure to install a dimmer switch. You’ll be surprised what a difference a little “mood lighting” can make.

The options are endless for remodeling your kitchen on a budget. The hardest part is deciding which upgrades will make the biggest difference on the smallest budget. Just be sure to do your research and to set realistic goals. When its all done, step back, and enjoy your style and budget savvy results!

San Diego experienced a year to date decline in price per square foot compared to last year; average price per square foot was at $253. The median home price was also down to $310,000, a decline of 3.7%. This was based on 4,279 home sales from July 2011 through September 2011.

For our local market of Ramona, CA zip code 92065 the median sales price was $287,000. This was based on 158 sales from July 2100 to Spetember 2011. This is a decrease of 3.8% over last years prices. Average price per square foot was $150 which is an 11.2% decline year over year. Currently there are 349 resale and new homes listed in Ramona,CA 92065; of which 222 homes are either in pre-foreclosure, auction, or bank owned status. Today's real estate market and economy makes it all the more important to have your home in tip-top condition and priced correctly in order to compete with distress sale properties if you plan to put your home on the market and want it to have any chance of selling for a good price. For a free consultation to prepare your home for sale and professional insider information on your local market in Ramona or San Diego County, contact Deb Espinoza at Stage Presence Homes. 619-913-7783 or DebSDRealEstatePro@gmail.com. We also have available FREE Reports on getting your home ready for sale.

What’s my house worth? Market Value is a constantly moving target. The ups, and mostly downs, of the economy make setting the right asking price for your home an almost elusive art form. However, there is hope.

If there are not many comparable homes near yours that have sold in the past six month then it may make finding the right price for your home difficult. Comparable items commonly used to price a home are things like; location, square footage, amenities, and condition. That being said, you won't have much chance of getting a premium price on a cookie-cutter condo if identical units have sold for less.

There are reasons not to set your asking price too high. Here are three:

• Time management. Real-estate agents — yours and the buyers' — might not want to waste time with a home that's unlikely to sell. Though a higher price means a bigger commission, agents might figure they can move two or three homes in the time it would take to sell yours.
• Buyers beware. Buyers who like your house but pass on your property because of the price might find something else and close a deal before you drop your asking price to a level they'd accept.
• Money matters. Even if you get your full asking price, the time it takes to get it may cause you to miss out on the house you want to buy. You might have to settle for something that's not as suitable or end up spending more than you had planned.

Here’s how to avoid the over pricing mistake:

• Shop for an agent who is familiar with your community and comes with good references. Do your research - check out their sites, look for testimonials, ask about their credentials.
• Drive around to look at the comparable homes used to set your asking price, and look for others if necessary. Make sure the house's curb appeal matches yours. Keep in mind that a computer that shows comparable sales isn't likely to know that your home has a new kitchen and the others don't.
• Know your numbers.  A good agent will have a sense of how many buyers are looking. If you’re not getting your share, it's a sign you are reaching on the asking price. If dropping your price is inevitable, it's better to do it sooner rather than later.

National Association of Realtors (NAR)  has just confirmed that short sales are still anything but 'short', stating an average time frame for a short sale taking 16.6 weeks!  This fact on top of the startling statistic that less than 3 of 5 short sale transactions are ever coming to completion makes it crystal clear why most buyers and buyer agents steer clear of short sales.

Another thing that buyers need to take into account when making an offer on a short sale is that a large percentage of sellers do not cooperate and have an attitude in which they think they've lost everything anyway and why should they care?? Many times the seller won't provide documentation that the lender wants in a 'timely manner' thus stalling the short sale process, and then there is also the possibility that the seller decides to work on a last ditch effort to get a few more free months in their house by filing bankruptcy. When the seller files a BK, the entire short sale is void and all the work and wait is for nothing.

I currently have a short sale that was approved by the lender and upon walking my buyer back through after receiving the approval letter we discovered a few disturbing things. The seller had starting removing items that he apparently felt were his to take. The entire designer custom fireplace mantle and surround were ripped from the wall, the vanities were removed from the bathrooms and the water lines capped, and the surround speakers were removed from each room and plastic wrap taped over the gapping holes in the ceilings. The pool that was so beautifully maintained a month ago now looks like a green swamp- Never mind the fact that before we viewed the property in the first place the seller had already removed the entire kitchen!

So, now what do you do? The listing agent was informed and she called the seller to tell them to stop trashing the house and removing items that are not theirs to take, but they told her that they will not return the missing items. Never mind the fact that my buyer LOVED the fireplace, that now isn't so pretty, and the pool will take time and money to clean up, the holes in the ceilings will have to be repaired and new vanities will need to be purchased and installed.

So now as a buyer representive I realize that I must include another item in with an offer on a short sale. An addendum that explains that the buyer expects the house to be in the same condition as when the offer was made and that photos have been taken and that 'built-in' items will NOT be removed by the seller because they are considered part of the property. All this because you can't expect that the listing agent informed the seller of what their duties are as a cooperating seller in a short sale.

So my advice to buyers will still be to steer away from short sales unless you have the patience of Job, and are prepared to have the deal fall apart after 4 or more months of waiting, or prepared to find a shell of the house you thought you had made an offer on.  The possibility of getting a 'good deal' on a distress sale, short sale, just may not be worth it to many buyers.

I guess I can start this post with the age old question: I've got good news and bad news, which do you want first??

In California,effective immediately, lenders cannot pursue deficiency against the borrower in a short sale of one to four units, whether or not it is a senior or jonior lienholder. Senate Bill 458 was signed by the Governor and from this day forward no senior or junior lienholder can require a borrower to pay or owe any deficiency resulting from a short sale.

The law does not apply to corporations, LLCs or partnerships. The law does allow for the lender to negotiate for a contribution from someone other than the borrower, such as agents, lenders or relatives. The law also does not prohibit the borrower from 'offering' to pay any additional compensation to the lender 'in hopes of obtaining a short sale'.

So, on the one hand California is protecting homeowners who must short sale from being pursued for deficiency after a short sale; on the other hand the law still gives lenders the right to hold hostage other parties or the seller by requesting contribution from agent commissions or accepting the seller's generous 'gift' of additional monies to sweet talk the lender in cooperating in allowing for the short sale in the first place.

What WAS I thinking? That a law would actually be drawn just to protect a homeowner in distress without a gimme to lenders and investors who had a huge hand in creating this fiasco in the first place? Quelle suprise...