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O.C. homes for sale double in 6 months

October 2, 2013 By Roy Hernandez Leave a Comment

Homes for sale in Orange County have nearly doubled in six months, rising to 6,298 listings as of Thursday, Steve Thomas of ReportsOnHousing.com said in his latest report.

Listings in the Realtor-run multiple listing service were up 98 percent since mid-March, a low in almost nine years of data.

“Orange County housing is moving away from a sizzling hot seller’s market with rapid appreciation to a cost conscious cooler market with restrained appreciation,” Thomas wrote in his latest report.

As listings increased, the number of contracts signings began dropping, falling 25 percent since mid-June, he said.

“The market was starting to cool as values began to dramatically recover from their recession lows a few years ago,” he added. “What looked like a total deal and had attracted a wave of investors had lost a bit of its allure and luster. Investors started looking elsewhere. Homes began receiving fewer offers and buyers shied away from grossly overpriced homes.”

Last year at this time there were 4,416 homes on the market, 1,882 fewer than on Thursday, Thomas reported.

Thomas’ report shows further:

The biggest increase in listings occurred in the $250,000-to-$750,000 price range. Listings in that price bracket jumped 144 percent to 3,386 homes for sale. That category accounted for just over half off all listings.
The next biggest increase was in the $750,000-to-$1.5 million price range, which was up 97 percent to 1,536 listings. That group accounted for a fourth of all homes for sale.
Listings for $1.5 million and above — accounting for 17 percent of the market — increased 39 percent to 1,054 homes.

“Demand continues to drop as we make our way through the autumn market,” Thomas said. “This is cyclically a slower time of the year. … But the downshift is a bit more pronounced this year.”

Article compliments of Johnathan Lansner and Jeff Collins, OC Register.

8 Top Home-Selling Mistakes People Often Make

September 9, 2013 By Roy Hernandez Leave a Comment

It’s a challenging market for home sellers right now. Buyers have a lot of options—and they don’t have to buy what you’re selling. Your house is likely just one located in a sea of for-sale signs, so you can’t be sloppy about putting it on the market.

Luckily, we’ve rounded up the dos and dont’s that will help you collect thousands (if not hundreds of thousands!) for your place.

1. Don’t … ask for too much money.

Yes, you know what you paid for the house. But that doesn’t mean that it’s still worth that amount—or that it’s appreciated in value since you bought it. “Your house is only worth what the market is willing to pay you,” says certified financial planner Ellen Derrick of LearnVest Planning Services, who has bought and sold at least eight homes, including investment properties. “It doesn’t matter what’s in it. And it doesn’t matter what your mortgage is.” Your realtor has an eye on the market and knows what kind of prices homes—just like yours—are garnering now. Pricing your home too high will discourage interested parties from making an offer, and your property could sit for months, which isn’t your goal.

What to do: Have a few realtors give you a price on the home (or get a comparative market analysis), and—this is key—don’t ignore them. Keep in mind that even if you’ve made pricey improvements to the home (granite countertops, stainless steel appliances), you may not get your money back if you’re the only home on the block with such upgrades. If comparable kitchens in the neighborhood don’t have similar upgrades, buyers aren’t expecting fancy perks in yours, and may not be willing to pony up for the difference.

2. Don’t … skip the marketing.

You may think that all you have to do is take one photo of the house, stick a “For Sale” sign in your yard and buyers will come pouring in the door. Au contraire. “The only way to guarantee that you’re going to get the highest price for the house is to use all of the marketing options available to you,” says Holly Mellstrom, a realtor in Pelham, NY. “This means Internet advertising, 30 pictures of your house, public open houses and even postcards.” The more people who see your house, the better your chances are of selling it. In an age when buyers start their searches online, counting on drive-bys and word of mouth isn’t enough anymore.

What to do: Don’t wait until the last minute to notify a realtor that your house is for sale. If you can, give her at least a month of lead time, so she can research comparable homes and set a good price. “Give them time to book their favorite professional photographer,” Mellstrom says. “And give them time to photograph your house on a day the sun is out.” In fact, if you live in a seasonal area, and you know that you’re going to put the house on the market in February, have photos taken in September, when the grass is still green and the trees have leaves.

3. Don’t … go it alone, unless you know what you’re doing.

If you’ve bought and sold half a dozen homes of your own or you live in a sought-after neighborhood where they sell in two days, you might be able to pull off a For Sale By Owner. If you aren’t a seasoned pro, however, let a professional take the reins. “Some people don’t buy and sell houses more than once or twice in a lifetime, and there’s a lot of money at stake,” Mellstrom says. “And there are so many disclosure laws now. Depending on the laws in your state, you’re really accepting some liability by trying to sell it yourself, unless you have a friend or an attorney who can guide you through the process.” A realtor also knows what’s selling around you, and for what price. She can tell you whether an offer is reasonable, and help you negotiate smartly. Plus, you may not save as much as you think in the end. “People who buy For Sale By Owner houses automatically discount the price they’re willing to offer because there is no realtor involved,” Mellstrom says.

What to do: If you can, get a realtor recommendation from a friend or colleague. Check references, conduct interviews and go with someone with a proven track record.

4. Don’t … neglect to fix things that are broken.

If sellers walk through your house and spot a handful of items that need immediate repair, they’re going to wonder how well you’ve maintained the things they can’t see. The entry way is a big tip-off. Got a loose hand rail on the steps, sagging screen door or jiggly door knob? Fix them. Clear your gutters, patch holes in your walls and address dripping faucets.

What to do: Do a walk-through of your own home, pretending that you’re seeing it for the first time. What things have you always meant to fix? Now is the time. Spend a few weekends dealing with all of those niggling projects to get your home in show-worthy shape.

5. Don’t … get emotionally involved.

Yes, it’s your house. Yes, you sweated blood and tears to get it just the way you wanted it. But, no, that does not make it someone else’s “perfect,” particularly when you’ve made some unique decorating decisions. You want the space to look as neutral as possible, so buyers can envision themselves in the space. So even if those teal walls in the bedroom look knock-out great with your duvet, they probably won’t match anyone else’s things. Let go of the features you love, and make it a house most people could love—and that might mean painting all of the walls a soft, neutral color. “My office at home is a robin’s egg blue,” Derrick says. “But if we get ready to sell that house, you can bet I’m repainting it.”

What to do: Have a realtor walk through your home, and when she tells you what you’ll need to change to make it marketable, listen to her. Start thinking about your house as a commodity, not an extension of your identity. If buyers don’t love it, it’s not a personal insult. It’s simply a deal that didn’t work out.

6. Don’t … leave your stuff everywhere.

You want buyers to feel like they could move into your house tomorrow—with their things. And your collectible tchotchkes, photos and utility bills make the space feel a little too personal. “That first impression is really important, and if they’re greeted with a huge photograph of you on your wedding day 25 years ago over the fireplace, that’s really distracting,” Mellstrom says. “It sends the message to the buyer that ‘This is my house, not your house.’”

What to do: Before you put the home on the market, get a few boxes and grab every extraneous thing you see: photos, knick-knacks, books. If it helps, take a few pictures of each room, and try to view them through a buyer’s eyes. What could you remove from each room to make the space feel bigger? “You want it to look like a hotel room,” Derrick says. “Hotel rooms look comfortable, but they don’t look like they’re somebody else’s comfortable.” Also? Don’t hang out at showings. While you may want to tell prospective buyers about all of the things you’ve done to the house, it’s best to leave them be. If there’s some information you think is important for them to know, leave a flyer on the kitchen counter.

7. Don’t … get offended by a lowball offer.

Just because someone came in with a really low bid is no reason to walk off in a huff. Now’s your chance to negotiate. “Buyers are trying to buy your house for the lowest price possible,” Mellstrom says. “Don’t blow them off. They might love your house. You can’t blame them for trying.” In other words, it’s not personal, and it’s not a slam on your housekeeping. It’s a business transaction.

What to do: Come back with a counteroffer. Typically, most buyers will come back with a second offer, which is a better indication of what they’re really willing to pay.

8. Don’t … lose a sale over something stupid.

It’s possible to get 99% of the way through a home sale, only to stall out at the end over a minor detail. Don’t be that seller. “I’ve seen people throw away getting a $450,000 house sold over somebody wanting to take the mantle instead of leaving the mantle over the fireplace,” Derrick says.

What to do: Unless it’s an heirloom that’s been in your family for generations, remember that you can probably find another one—but you may not find another buyer at that price. To be safe, if there are things you’re feeling like you can’t live without, such as the curtains you found at a crazy flea market or the light fixture you discovered at an antiques store, replace them with something else before you show the house.

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5 Tips to Sell Your Home for Top Dollar

September 5, 2013 By Roy Hernandez Leave a Comment

Despite the recent slowing market conditions, homes are still selling and some homeowners have been able to successfully
beat the odds and sell for top dollar. To model the success of these savvy homeowners, let’s take a look at five
tips to sell your home for top

1. Price your home aggressively
Setting the right price for your home is the single most
important decision you will make when you decide to sell.
Go too high and you risk turning off every buyer in the
marketplace, go too low and you leave money on the table.
One simple but powerful technique for pricing your home
aggressively is to spend the day looking at your competitors’
homes. By doing so you will be seeing the world through
the buyers’ eyes. Be tough and honest with yourself.
Compared to the competition what would be a price that
would position your home as the best value proposition for
buyers in your marketplace?

2. Hire an aggressive listing agent
Not all listing agents are created equal. To find an
aggressive full time agent, take the time to research
the market, talk to friends, neighbors, and colleagues about
who they recommend, and interview multiple agents before
making a hiring decision. Don’t hire an agent just because
they tell you what you want to hear. Make sure your agent
gives you a true picture about values in your marketplace,
even if you don’t want to hear it. In addition, be sure to come
to an agreement about a specific, documented marketing
plan before signing a long term listing agreement.

3. Stage the home & use curb appeal
Buyers won’t pull the trigger unless they become emotionally
invested in your home. To help build a stronger first impression,
start from the outside first by working hard to improve your
home’s curb appeal. Remove the weeds, plant fresh flowers
and spruce up your exterior paint if needed. Next move
inside and stage each space by creating a focal point and
a story for each room. A set dining table, a book by the bed,
or a game in the kids room are all simple examples of staging.

4. Offer incentives & pre-paids
A buyer who has narrowed their search down to two or
three top choices may need a little push to motivate
them to take action. To encourage buyers, many sellers
offer incentives like buying the interest rate down on the
purchaser’s loan, paying for closing costs, inspections,
or repairs, or providing allowances or credits for home
upgrades after closing. In addition, many sellers prepay
for services like internet services for a year, taxes,
homeowners association dues, or even golf
club memberships.

5. Get pre-inspections
Many sellers do pre-inspections of the home to provide
buyers with a clear whole home inspection or pest
and dry rot inspection. (A word of caution: anything
discovered during a pre-inspection will likely need to
be disclosed whether you fix the issue or not).
It’s often easier and cheaper to do needed repairs in
advance than trying to negotiate them later with
an emotional buyer.

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Financial benefits of homeownership

May 13, 2013 By Roy Hernandez Leave a Comment

There are many reasons people invest in real estate. Besides the myriad of personal reasons to buy, here are just illustrations of the financial perks of buying a home in California. Call or text me for more information or questions at 949-922-3947.

5 Reasons Your Home’s Staging Might Not Be Awesome (Even if You Think it Is)

March 28, 2013 By Roy Hernandez Leave a Comment

Nowhere in life is the old adage that beauty is in the eye of the beholder truer than in real estate. One woman’s dream home might be a mid-century modern, Mad Men styled contemporary, while another’s includes all the gingerbread charm of a classic Victorian. But when it comes to prepping a home to be viewed and (fingers crossed!) sold, there is both art and science to staging a home before its listed to maximize its appeal to the broadest number of target buyers.

The challenge is this: staging is an investment, one every seller can’t afford to make (although studies have shown professionally staged homes sell faster and for more than non-staged counterparts). So many take it on as a do-it-yourself project which, like all DIY home improvement projects, can be fantastic or, mmm, not – depending on the approach, skill, and resources of the “self” who does it.

The only thing worse than not staging your home for sale at all is to spend your time and money doing the work only to have buyers react badly to it. Here are a few common scenarios in which sellers think their staging is awesome and buyers, well, beg to differ:

1. You used beat up or ugly furnishings and decor. Great staging – DIY or professional – includes choosing furniture that shows the home off in its best light, and positioning the furnishings optimally, too. Sometimes this can be done using certain pieces of the seller’s furniture, other times, furniture must be rented or otherwise obtained. One area in which budget-minded sellers like to save money on staging is by finding cheaper alternatives than renting new furniture from a staging company or store.

In this era of Craigslist, eBay, Freecycle, estate sales and other peer-to-peer online stores and trading sites, there is an abundance of access to used furniture at great prices. I have no bone to pick with the smart sellers who use these tools to replace their own furniture with something that is in better condition, more attractive or a smaller scale than their own, so as to highlight how much space their home truly offers. That said, using old, floral sofas from Craigslist’s Free Section, unattractive thrift store “artwork” or even your own truly worn out, old furniture is a recurring reason buyers cite for focusing on how bad the staging is vs. the house itself.

What’s worse, the furnishings you might think was THE BEST BARGAIN EVER might actually give your nice home a worn-down, unkempt feel to the buyers who come to see it.

2. You created distracting themes and scenes. My friend Barb Schwarz is the head of the International Home Staging Professionals Association; she defines staging as “preparing a home for sale so the buyer can mentally move in.” The goal is for buyers to visualize the new-and-improved versions of their lives that your home will help them realize, so some pro stagers will set up objects to communicate the lifestyle activities that a home facilitates. It’s not bizarre to see a breakfast table and chairs on the patio of a home with lovely views, a crib and baby gear-vignette in a small room suitable for a nursery, or a popcorn maker and recliners to show off a media room’s theater-readiness.

Occasionally, though, these scenes and vignettes can go rogue, creating borderline bizarre scenarios that distract and detract more than they help.

A beach scene (ball, umbrella and all) in a midwestern bedroom, a lively Parisian mural and Eiffel tower replica in a California condo and bizarre collections (taxidermy, anyone?) are all real-life examples of staging scenes that have done more harm than good.

3. Your house is neither clean nor clutter-free. For various reasons, some homes just take time to sell. And if you’re living in a home that is on the market for long, it can be challenging to ensure it is perfectly pristine at all times, meaning every single time a buyer enters it. And it doesn’t take a truly filthy house to turn a buyer’s impression of your home from awesome to awful. The little messes that a family accumulates through daily living can be perceived by buyers as distracting at best – disgusting, at worst.

If your home is well staged, do not underestimate the power of piles of clothes, mail, paperwork, dishes or kids’ toys to deactivate the home-selling power of all the hard work and money that went into preparing the property in the first place.

4. There are glaring gaps. Sometimes a home’s staging leaves a glaring gap, an elephant in the room house, so to speak. This often happens when sellers run out of time and money to prepare a place, but it can be avoided through smart advance planning and budgeting for your pre-listing property preparation.

Rooms – Listen, I personally live in a house that is beautiful everywhere until you poke your head into my young adult son’s room. So I can relate. This situation might be okay to live with, but it’s a real home staging fail for a property that’s on the market. Don’t let there be one or two rooms that it looks like the stager – or house cleaner – missed. And this goes for the garage, closets, cupboards and drawers, too. Buyers like to look inside these areas to see how much space they have – if they are crammed full of junk, it creates the impression that the house lacks storage and order.
Exterior vs. interior. Some homes have amazing curb appeal, but look like they’ve been run over roughshod on the inside. And the opposite is true: some look like Martha Stewart handled the inside and junk man extraordinaire Fred Sanford was in charge of the yard. Neither of these is ideal.
Multi-sensory gaps. If your home is beautiful to the eye but smells bad, is strangely hot or cold, or has a noise issue (think: neighbors’ music, freeway noise or strange in-house creaks or whirrs), buyers might appreciate the visuals but fixate on the multi-sensory challenges. Especially if you have pets, you might want to ask a friend or your agent to step in from the outside and give you a gut check on whether your home is smelly – you might be so used to it you can’t trust your own senses.

5. You lacked a neutral, expert eye. Home decorating and home staging are two different things. When you decorate your home, you customize it with your specific tastes, preferences and aesthetics in mind. When you stage it, you aim to neutralize your home’s look and feel so it appeals to more buyers and doesn’t have turn-off potential.

Schwarz puts it this way: “Decorating a home is personalizing it. Staging a home is depersonalizing it.”

I cannot count the number of beautifully decorated homes I’ve seen where the seller must have thought they needed to do zero staging, and where the seller was simply wrong. Their very personal tastes in Elvis quilt art, red lacquer furnishings or sewing machine collections had been beautifully executed for them, but also were so highly personal, so very specific that it was near-impossible for a buyer to envision their own lives or families or homes or activities taking place in that space.

This is one reason I encourage even sellers who are on a tight budget and can’t afford pro staging and sellers whose homes that have been beautifully decorated to at least have a home staging consultation with their agent and a professional stager. These pros can call out little “edits” (furniture or decor items you should remove) and give you advice about what buyers love and hate to see in a home that you might be able to execute yourself at a surprisingly low cost.

From Trulia Real Estate, author Tara Nicholle Nelson (broker in San Francisco)

10 Hardcore Staging Tips for Sellers

March 12, 2013 By Roy Hernandez

No ads, e-mails, flyers, or any other marketing plan can help a home that doesn’t show well. Here’s some great advice for sellers looking to prepare their home FOR SALE. Remember, staging is all about giving buyers the ability to see themselves in the home and increasing the home’s value.

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