To Sell or not to Sell?

That is the question for many homeowners in California. While many people have chosen to leave the stage due to the cost of living, others are holding tight believing that their investment, particularly in beach front properties, still offers hope. Not only could the value improve, but there’s ways the option of retiring to the Golden State for those proverbial Golden Years.

If you visit California, there’s no question that housing away from the ocean is suffering terribly in the current market. People with ocean real estate, however, aren’t seeing the hammer fall. Yes, there might be some compromises since it’s currently a buyer’s market, but generally speaking the waves and sand seem to cast a spell on many people, and also insure value in a home.

Just this week, the median home price in Southern California went up over 22 percent. That's the fastest rate increase people have seen in over five years. There’s a good reason for this. There are state incentives available right now. And where were most of the homes selling? You guessed it – the beach. The second area of sales were in markets like San Diego with upscale properties.

Home owner credits in CA started on May 1. A buyer can get state tax credit if they’re buying for the first time for up to $10,000 spread out over three years. That’s a lot of umbrella drinks and beach side barbecues!

So if you currently own a home on the water in California, don’t be too quick to jump on the sales band wagon. You have a treasure there. If you don’t own a waterfront property – what are you waiting for? The timing couldn’t be better.

When a real estate market becomes soft, short sales become very popular. The short sale market is designed specifically for homeowners who have homes that are not worth the amount of their loan. Short sales work cooperatively with the mortgage company, who commits to accept the sale proceeds as “paid in full” on the house even though the debt will be more than the buying price.

Sellers obviously do not turn a profit from a short sale, but they do get out from a burdensome debt without having to foreclose. The lender’s advantage here is the chance to sell a property quickly, which saves money.

The major beneficiaries from a short sale are the buying agents and listing agents who get commissions. Title companies, appraisers, and insurers also get a cut from a short sale because a new title policy, appraisal, and homeowner’s coverage must be written for the buyer. Should the seller get legal consult, that real estate lawyer will see apiece of this pie too, as might tax consultants. Of course I should add that buyers get something too – more house for their money and a lower mortgage payment.

Short Sales & Credit Ratings

Normally a short sale isn’t even a consideration unless you’re behind on your mortgage payments. Those late payments directly impact your credit rating. Being just 30 days late drops your rating an average of 80 points, while a foreclosure or short sale drops it around 120 points.

While that sounds terrible, there is an upside here. If you’d foreclosed on your property you could end up waiting as long 5 years to be considered for another mortgage (at least one with a reasonable interest rate). When you complete a short sale, by comparison, you can look to buy again in about two years.  If you were current in your payments and moved into a short sale, the FHA and Fannie Mae says you can try to qualify before that time. The question then becomes finding an amenable loan institution.

Deciding on the Short Sale

If you’re not certain whether a short sale is right for you, there’s a lot to think about. Financial advisors disagree somewhat as to what’s worse – short sales or foreclosures. The scales seem tipped toward foreclosures having a worse credit impact. Then too, if you know you will eventually want to own another home and don’t’ want to wait too long, the short sale is a much better option.

Just bear in mind that it can take several months to obtain short sale approval from a lender, and the documentation that goes with the sale can be incredibly complex and cumbersome. Make sure that you work with professionals who understand the ins and outs of this process for the best possible outcome.

The real estate market has its ups and downs. When it’s down it becomes a little more difficult to sell your home for the amount desired. There are, however, things you can do to give your home an advantage over other houses potential buyers may see.

Home Repairs – Inside and Out

First off, take care of all those little things that you’ve been putting off. Put a new light switch cover in the bathroom, clean the dust off the chair rails and baseboards, put a new light bulb in the closet, trim the hedges, weed the garden, and tighten a stairway railing. You’re used to those things, but a buyer is looking at every detail. The more effort you put into the details, the more your house will shine. 

Keep it Clean

Speaking of shine, cleanliness and neatness counts. If you have children, let them know toys have to be put away. Shoes should be orderly, coats hung up, etc. Now, I know in a work-a-day world it’s not always easy keeping all the dishes done and other chores on task. However, if you do a little bit every night, you’ll find you have much less fussing come “open house” day. You also won’t panic when you get a call from your broker for a walk-through.

Home Staging and Pets

In terms of how your house impacts the buyer, some people hire a professional home stager. This person acts like an interior designer who specializes in making your house even more appealing to potential buyers. If you really can’t afford that try to look at your space critically. Get rid of clutter and put away highly personalized items. You want your buyer to be able to see their family living in your space. By the way, personal items include your pets. With strangers coming into the home, keep the cats and dogs in a safe spot where they won’t run out the door or nip at a house-seeker. Make sure pet beds and cat pans are immaculate. Pet odor is not a “selling tool.”

Sometimes it helps to be out of the house when it’s being shown. Your presence can make people uncomfortable. Additionally, listening to buyers nit pick your home can be emotionally frustrating. Talk to your agent about the possibilities.

Curb Appeal

The value of curb appeal shouldn’t ever be underestimated. Look at all sides of your home, tidy up the yard, and make your front door area very welcoming. Sometimes all it takes is a few well-placed flower pots!

Finicky Buyers

Buyers know they have it good, so they’ll be more critical now than ever. The kitchen and bathrooms are by far the most important rooms into which you should put spruce up efforts. If you’re dishwasher is old and your cupboards look yucky, focus on the cupboards first. You don’t want to over-invest and not recoup that value.

Listing Companies

Call several recommended listing companies in your area and interview them. Ask them how they would market your home and what kind of turn around you could expect. Choose a company that’s working for YOU, not just for a commission.

Home Inspections

In a buyer’s market it’s not unusual for a seller to pay for a home inspection. An inspector will find the kind of problems that a potential buyer is also watching out for. If you can show buyers you’ve had the inspection and already done that work, it’s a huge advantage to both them and you.

Offers

When it comes to receiving offers, remember that your flexibility matters. You might, for example, find someone willing to pay a better price if you’re willing to move out early, or if you’re willing to pay some of the buyer’s points or make space for some of the buyer’s belongings in the garage before moving day. 

If the offers feel low, remember to look at what values have been like throughout your neighborhood. Remember the offer isn’t something personal; it’s a judgment call based on the buyer’s outlook.  Instead of turning down these offers outright, consider making a reasonable counteroffer. This shows you’re willing to work with buyers and find a happy medium.

Discovering mold in your house is not pleasant. While molds are perfectly normal and even have a role to play in the life cycle of organic matter, mold has numerous spores that can irritate allergies, asthma and even make people or pets ill. Mold spores stick to damp areas, and they cannot live in a dry environment.

A mold allergy typically evidences itself with cold-like symptoms and sometime with a skin rash. Being around mold may produce itching eyes, sneezing or coughing and a runny nose. Besides this nuisance, mold often causes damage to your home as it grows.

Having mold present when you’re trying to sell your house is a huge issue. Not only does it devalue your home, but it’s also something that most states require be disclosed to potential buyers. So if you’re planning to put your house on the market, take a good hard look now and make sure you’ve gotten rid of the mold before you list the house.

Controlling Mold:

Because mold moves through the air you will probably always have some spores in your house. However, if you’re diligent about keeping your home dry it will reduce the risk of the spores actually landing and growing greatly. Any leaks, any damp spots, etc. must be fixed. If you don’t, mold will come right back and start growing again.

Cleaning up the Mess

According to the EPA, if you’re dealing with a small are of under 10 square feet, you can probably clean up the mold yourself. Anything larger than that should be handled by a professional. Also if your air ducts may be affected, that’s also a situation for a contractor who knows how to handle mold (note: don’t run air/heat until remediated if practicable). 

Step one in your clean up is to dry the area as completely as possible. Remove any porous material from the area that’s affected (it’s really best just to replace those items). Wash all surfaces with soap and water, followed by some type of cleanser like bleach. Dry thoroughly. To safeguard your self from potentially harmful exposure it’s a good idea to wear eye and hand protection while cleaning. When your done there should be no visible signs of mold in the area, and the air should smell fresh. Continue to watch this spot to make sure the situation does not recur (as mold is often NOT just a superficial issue).

Note: if you do use a biocide cleanser, make sure the area in which you’re working is properly ventilated. Do not mix such cleansers with anything else as hazardous gases can result. You want to kill the mold, not put yourself in the hospital.

Keeping it Dry:

I mentioned previously that a moist environment invites mold. That means keeping things dry becomes the key element to protecting your home from mold and mildew. When you have a leak, condensation or dampness, the faster you clean it up the less likely it becomes that mold will develop. Experts say that if you get this work done in under 48 hours, you shouldn’t have any problems.

Along with fast cleanup, proactive maintenance of your home is vital Watch your gutters and roof for issues. Check downspouts making sure they’re pointing away from your house. Get a dehumidifier for known damp rooms (note a house that has humidity below 50% is ideal). Remember to use any ventilation fans you have in bathrooms and the kitchen (particularly when taking a shower or doing dishes).

Unseen Dangers

Mold all too often hides behind paneling, dry wall and wallpaper. It may also grow in insulation and the backside of carpets. Figuring out if you have a mold problem in these locations can get expensive as you have to get underneath and behind things that are usually firmly in place. Before you start tearing off bits of wall or wallpaper consider getting professional input. Some of these regions house a colony of mold spores that you could accidentally release into your environment making matters all the worse. There are test that can be run, checking for mold and a variety of professional companies that are trained specifically in the removal of this environmental hazard.

One night at dinner mom or dad (or both) suddenly announce they want to sell the family home. Once children reach a certain age and begin moving out many family homes become too much for the aging parents. There’s a very empty home with a lot of upkeep and no extra hands.

Now comes the kicker – they want your help! Many people face this moment feeling a wide variety of emotions. The word “home” means something. The memories of dancing to the Beetles, finger painting on the walls, and getting cooled down by the garden hose in summer still linger in your mind. The impact of effectively packing up those memories with little ceremony seems distasteful.   

Going thru the Attic:

First off, realize that this situation is nothing new particularly in our very mobile society. You need to pace this endeavor in such a way that works for everyone. After all you have decades of “stuff” that has to be sorted. That alone isn’t a fast or easy task, and needs to be handled with sensitivity. Some items will be sold (as your parents are likely scaling back to a much smaller residence). Some might be gifted to you, other siblings, extended family members and friends. Others still might go out for a yard sale, or be gifted to charity. Where everything ends up is up to your folks (with likely some input from you), but try to really listen. This is one of the most difficult aspects of selling the family home. Note that if there are some items that prove difficult to decide about, you can always consider a small storage facility until you (or your parents) are ready to figure out what best to do with Aunt May’s sideboard (for example).

The New Living Space

Once the sorting process is completed the next best step psychologically is to begin moving your folks into their new space. You can transport the tried-n-true familiar items so that the new house feels welcoming (yes, even that beat up chair.. in fact that may be one of the most important items to move right away!).

Beyond getting mom and dad settled and comfortable, moving them out before the family house sells has another advantage. They (and you) will not be subjected to strangers tramping through the house and criticizing every nook and cranny. From the potential buyer’s perspective this also gives them a more “open” house that doesn’t have other people’s personal items everywhere. This allows the buyer to really picture themselves in the home and may move your family house along nicely.

Children and Selling a Family Home

Even when children are grown and in college some may have a very negative reaction to the idea of selling the family home. When they come back to visit, it’s no longer “home” to their mind. In this case it’s very important that everyone involved sit down and talk things through (even by telephone, but in person is better). Understanding the reasons for the move is vital emotionally. Also if the child has personal belongings still in the family home, they should have a say in what happens to those items.

If mom and dad are moving out of the area the scenario gets even more difficult. Now not only are children coming to a completely strange home, but also a town where there’s no other friends or family. It leaves them out of sorts and with a sense of abandonment that can impair relationships if not handled delicately. The comfort zone is gone.

Use Your Words

Overall psychologically good communication seems to be the key to making the process of selling a family home go more smoothly. Recognize from the outset that there are going to be uncomfortable moments throughout the ordeal. Be ready to laugh, cry, feel anxious or frustrated, and generally get a bit stressed out. This is perfectly normal. Find a coping mechanism (exercise helps) and just keep those lines of communication open.

Family Home Sales due to Death

A death in the family can make selling the family home even more of an emotional whirlwind. Did you know that if a person dies at home you may have to disclose this information to potential buyers? Check the laws in your area.

Because the house is likely to be unattended for a while as legal issues work themselves out, you will want to get new locks on the family home and forward the mail to you or the estate executor. This helps safeguard the home from thieves who watch for mail to pile up as a sign that there’s easy entry.

When you’re cleaning out the home, take care to set aside important documentation like insurance declarations, bank statements, and bills. You’ll need all of this to properly wrap up the estate’s holdings. Also keep anything that has personal information on it that could be used for identity theft (yes, this even happens after death). Once you’re certain you have all of these types of documents, then you can move forward and prepare the house for sale as you might any other home.

Get a Realtor

When everyone is on the same page, and knows what’s coming then you can start looking for a real estate agent who has experience in this type of sale. There are real estate companies and lawyers who specialize in estates, and they’re well worth a look. Having such a person gives you a little more emotional distance from the sense of loss that often accompanies every family house showing. You’ll also know that the ins-and-outs of all the associated family paperwork will be handled correctly by experienced hands.

Best wishes, and look toward the future knowing your mom and/or dad will be situation in a home that far better suits their needs well into their elder years, and that you've handled your family's home with loving care.

You’ve fixed up the curb appeal, you’ve redecorated the interior – what else can you do to sell your home more quickly. How about a little Feng Shui?

Feng Shui has been around for thousands of years. Initially this “art of placement” was used in the Far East as a means of determining the most propitious locations for important buildings and even for determining where a town might be settled. It continues to be utilized today, predominantly inside homes and offices as a means of keeping positive “vibes” (called Chi) flowing. Sounds good? Better still, it’s not difficult to give your home a Chi face lift.

Begin at the front door. If you can have something red near to your entryway, this attracts prosperity. You can use a potted plant if red paint isn’t quite a trim you can use with the remaining backdrop. Make sure your door LOOKS nice. This is where you welcome potential buyers and a clean, hospitable front door becomes a letter of invitation. Also if you put a small wind chime on the left of the door, this will also “ring in” good energies.

Once you’re through the doorway of the home – look around. What is your first impression of the overall “openness” of the home? Clutter blocks energy flow and it’s also a huge deterrent to making house sales. Make sure walkways and rooms have “white space.” Sprinkle the space with a few other living plants, particularly the kitchen as this is one of the most important parts of the home in terms of value and sales appeal. Bathrooms and bedrooms are also key features.

These may seem like very simple ideas, but effective methods do not have to be complex to work. The impact of feng shui in real estate is subtle, rather like soft background music. You want to create an environment that encourages potential buyers to take their time and really envision themselves in that space. You also want an overall presentation that’s uplifting, not heavy or stuffy. That means having plenty of natural light (mirrors can help with this if your windows are small).

Feng Shui has become a common interior decorating component for a reason. There’s a lot of common sense to it, and when utilized correctly it creates a healthy environment that reflects your goals – in this case, selling that house!

Nearly everyone talks about curb appeal for selling a home, but you don’t hear so much about interior design tips that can likewise move your house faster. Before spending a fortune on making changes to a house you won’t be living in much longer, it’s important to have a good feel for the potential buyers of your home. Think about what they want. Most buyers just want a house that meets their needs size wise, and one that’s move-in ready. That means that your best interior investment will be a clean coat of paint (or minimally touching up what’s currently on the walls so it looks fresh).

Note that if you’re considering re-painting don’t use white. Really how many people do you know have all white walls (other than ones wearing little white jackets)? That’s a very sterile look that does little in terms of improving the value of the home to onlookers.

Another decorating tip that’s cost effective is using shear curtains. Light is welcoming. It makes a space feel happier. By taking down heavy curtains, you let more light into rooms and potential buyers can see the space clearly. The down side of this, of course, is the need for everything to be dusted and tidy. Note: this is not your version of tidy - it's "mom's" version of tidy.

Third on the list of interior design tips for selling your home is using furniture effectively. The way you space your furniture and what items you leave in place varies by season. During winter you want the look and feel of common areas to be cozy and warm, where as in spring and summer those spaces should feel cool and breezy. This approach creates a harmonic emotional response in potential buyers without you having to say one word. Think of this step like background music to your sales presentation.

Pack away furniture and nick knacks that you don’t need until you move. Clutter is not a house-seller’s friend. Also don’t leave out too many personal items. Remember that your potential buyer is trying to see him self or her self in that space. The more of you/your family they encounter, the less they can visualize of themselves. This is house selling psychology 101.  Besides, this protects your belongings from potential breakage when people are doing a walk-through.

Note that a few well placed decorations can help a lot too. Living plants and fresh flowers in particular give spaces texture and improved visual impact. Have some near the front door as a way of greeting the potential buyers immediately. Other plants might be placed near windows to draw more attention to natural lighting.

Besides these basics take a look around for those little repairs you’ve put off forever. They weren’t that essential to YOU, but to a buyer they have a tremendous impact. Put a fresh faucet or fixture in your kitchen and bath, for example.
 

As you can see, interior design tips for selling your home need not be expensive. Just mull over the things you looked at when you were searching for a home, then apply those concepts to your space. So doing can help set your house apart from others, and move along that sale more quickly.

Senses are very important in home selling – particularly vision. Believe it or not, many potential home buyers make a choice whether or not to view a house just by taking a drive-by. So if your home lacks that coveted “curb appeal” it’s time to get out of the comfortable chair and start looking at how you can improve your prospects.

See through a Buyer’s Eyes

Step one is to go out to the street. Try to look at your house critically. Try not to think of this as “your” home at this very moment – but look at it as you might if you were a BUYER. Is there any paint chipping? Has the yard been raked and cleaned of debris? What’s your first impression of the roof and entryway?

Walk a little ways down the block – look again while you’re returning home. Drive by your house a few times and keep asking yourself the tough questions. As you find faults – make a list then see what you can do to rectify them without blowing your budget. Some of the issues for which to watch include messy weeds, dirty driveway / deck / sidewalk, broken tree limbs hanging down, filled gutters, and signs of mold.

Curb Appeal from the Back

It’s easy to get so caught up in prettying up the front of a house that many apes forget that curb appeal can apply to the back yard too. If a buyer goes down another street or into a neighbor’s driveway, they’ll trying to get a peek at your back view, so make sure the back yard looks as good as the front.

Lighten up to Speed Sales:

One incredible advantage to showing a house off is having doorway, sidewalk and driveway lights so that even at night people can see what you’re offering. As a landscaping item, border lights aren’t terribly expensive. If the light fixtures adjacent to your front door look old or worn, now’s a good time to replace them.

Flowers, Trees, Features:

Next on your list is pondering how flowers, trees and other landscape features are currently impacting your house’s curb appeal. No matter how much you may love nature, that big old tree might need to be cut back so people can really SEE your house, for example. By comparison, a few tastefully placed flower pots with hues that compliment the house paint can work wonders for the way your house feels.  

Touch it Up:

While buyer apes may not see it immediately, replacing old hardware and putting up a handsome mailbox can really change the impression you make. Put some swag on the front door that symbolically says, “welcome” and make sure the trim around your door doesn’t look old and blah. Remember that even if your curb appeal entices people to view the home, your door is akin to a letter of invitation to buy. The home-buying experience begins once through that threshold and first impressions matter.

One part of selling a house that some people overlook in terms of importance is real estate photography. If you look at a lot of the pictures of houses in ads, you’ll see graininess, blurring, reflections, etc. This really decreases the speed with which you can sell your house. Graininess or blurring, for example, might be interpreted by potential buyers as trying to obscure something that decreases curb appeal. Reflections make it hard to get a good look at the basics.  

The truth is that it may be well worth the money to hire a photographer who also knows how to be a sales ape. Real Estate photography has some specific technical aspects, and even creativity to it that you may not expect. No, your house isn’t going to “pose” per se. But an effective real estate photographer knows how to position your house and put it in the best possible frame for advertising. Their images have to be able to “sell it.”

Composition:

Most real estate photographers use digital cameras because they can process the images quickly and see what works and what doesn’t. There are some methods they use that you can learn from if you have to take pictures of your own home for whatever reason. These helps and hints include

• Using a wide angle zoom lens: What this does is give potential buyers more scenery – it effectively sets the stage for your home (curtains up!). You’ll also be able to take a much closer shot, meaning all those little objects in the foreground that just clutter up the image go neatly away. If you do not have a wide angle lens, make sure you move anything distracting items out of your frame (garbage cans being a good example).

• Using an external flash: This is if you plan to take interior images of the house. An external flash helps you direct light where you want it and avoid shadows. Note: make sure the spaces are tidy! Pick up toys, dishes etc.

• Just like taking pictures of people, focus on the house’s best features for your pictures.

• Try a variety of shots from different angles, then pick the one that really makes your house pop

• When shooting outdoors keep the sun behind you. The best type of day is one where there’s a bright blue sky and a few clouds. Wait till a cloud diffuses the sunlight – then click!

Last but not least you need a steady hand: It’s easy to ruin a shot because your hand shakes or moves. Look around for a flat surface on which to put your camera for stability.

By following these hints, you’ll find your real estate photography comes out looking far more professional, and more importantly helps sell your home.