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Biggest Home Seller Mistakes

1. Overpriced Home

Nothing shocking here. This was far and away the most common mistake sellers make that prevent them from selling their home. 

If you overprice your home there is a pretty good chance no one is going to want to buy it. Real estate agents do not set the real estate market. A great real estate agent will suggest a price at which to list your home based on comparable homes that have already sold in the market. Overpricing a home to 'see if you can get someone to bite' is not a strategy employed by someone really serious about selling. Overpricing a home will lead to missed opportunities with buyers that are serious about buying in the range at which your home should be listed.

The first week during which a home is listed will generally be the time that the most eyeballs are on the home and the largest potential pool of buyers will be exposed to the listing. Setting a price that reflects the market is essential to selling! This is exacerbated in a downward trending market. Many a seller has lost thousands, even tens of thousands of dollars chasing a market down after setting a listing price that was outside what the market was willing to bear.

Margaret Goss, a Broker with Baird & Warner on the North Side of Chicago gives you a few reasons that an agent will take your overpriced listing and then shares the repercussions of making the decision to price your home too high.

2. Showing Availability - It's Difficult to Set a Showing

The chances your home will sell when buyers can't get in to physically inspect the property are minuscule. Sellers need to understand that listing a home for sale is going to lead to some inconveniences in your normal routine. Many serious buyers may want to physically inspect a property during times which may not be convenient for the seller. Knowing this, motivated sellers need to understand that flexibility in when you allow the home to be sold could have a direct impact on the sale of your home.

It's not uncommon for sellers to see 8, 10, even 20 homes during a showing tour with their agent. If your house isn't on that list because you only do showings on Saturday and Sunday from 10am to 4pm, you will miss out on ready, willing and able buyers. 

As a seller, realize that the more people that can see the home in person, the more chance you have to find the buyer that wants your home. Eric Kodner, a broker with Madeline Island Realty in La Pointe Wisconsin shares a real life example of an unavailable seller costing herself a sale and a lot of money.

3. Cluttered Space - Unwilling to Depersonalize or Remove Clutter

Sellers are sometimes unwilling to either make the effort, or unwilling to compromise how they live in their home during the time the home is on the market for showings. Serious sellers realize that by depersonalizing the home and removing unwarranted clutter, it allows potential buyers to more easily visualize their own things in the house.

When you live in your home day in and day out, you become comfortable with your own 'things'. In many cases, however, your 'stuff' can make a room feel smaller than it actually is and in some more extreme cases, your 'stuff' can completely distract someone from visualizing the potential of a room. We know you are proud of your kids as the shrine in the living room displays all of their ribbons, trophies and diplomas from the last 20 years. But for a buyer, this is only a distraction. 

Many agents will make recommendations about ways to remove clutter or depersonalize your home. Some will even suggest that a professional homestager be brought it to completely maximize the space and create a setting maximizes the buyers ability to visualize their own things. The key thing to remember here is these suggestions are not personal and you may have to be a little uncomfortable so that your house puts it's best foot forward.

Ralph Gorgoglione, a real estate agent with the John Aaroe Group in Los Angeles reminds us that "as a seller, the most important thing to realize is that, yes, your crapola means a lot to you. But it means nothing to anyone else." Especially a buyer trying to visualize their own stuff in your house.
 

4. Unpleasant Odors in the House

"Mr and Mrs. Seller, your house stinks!"

Most agents aren't going to be this blunt. But in some cases they wish they could be. They'll take a more tactical approach and say something like.....'during the time your house is on the market, it might be a good idea to smoke outside'.

But what they know is that nothing will stop a potential buyer in their tracks faster than a strong odor of any sort. In some cases this could just be the left over smell from last nights dinner. In more extreme cases, agents tell horror stories of entering homes that have a bad smell of pet urine or smoking. 

The main concern for the buyer is, of course, "is the house going to smell like this once we move in?" Real Estate agents confirm that many a buyer has passed on a home after coming to their own conclusion on that answer. 

Your agent isn't suggesting a fresh coat of paint and new carpet because they don't like how things look. They are making this suggestion because they realize that the smoke odor in your home is going to be a major turn off for anyone thinking about buying your home.

Real estate broker Dick Greenburg with Elevations Real Estate, LLC in Fort Collins Colorado even goes so far as to suggest "homes with bad odors don't sell because buyers are having intense and complex negative reactions that are beyond working around."

5. Seller Unwilling to Make Repairs Prior to Listing

No seller wants to spend a few thousand dollars making repairs to a house you are about to sell. Agents understand that. But they also understand that few buyers want to move in to a house that needs a bunch of work done immediately upon moving in. 

One of your objectives to selling your home is to make it as appealing as possible to as wide of an audience as possible. If the seller is unwilling to make repairs, and a buyer doesn't want a bunch of work upon moving in, you've shrunk the pool of potential buyers for your property.

Some sellers may want to offer the buyer a credit at closing for certain repairs. Real estate broker Chris Ann Cleland, with Long and Foster in Gainesville, VA shares with us why that strategy isn't better thanmaking the repairs yourself before putting the home on the market.
 

6. Sellers Unwilling to Negotiate with Buyers

Setting a market price on a home is not an exact science. Many real estate agents will give the seller a range in which they predict the home will sell. As a seller, you should always want the most money the market will bear. That being said, the unwillingness to negotiate with buyers can turn away even the most serious buyers.

Price is not the only condition which is open to negotiation. Buyers and sellers can negotiate on dates, fixtures that might stay with the home, repairs and a host of other sticking points. Sellers that refuse to negotiate and are set on digging in their heels are much less likely to find a willing and able buyer.

Don't be insulted by low offers. Buyers want to get the home for the best price and on the best terms they can. Just like a sellers wants to sell for the best price on the best terms. It's rare that either party walks away from a negotiation with everything they want. Motivated sellers understand this and are willing to negotiate.

Debbie Reynolds, a broker with Prudential PenFed Realty in Clarksville Tennessee, cautions sellers against being unwilling to negotiate as well as second guessing your original listing price.

7. Bad Photos in the MLS

This one will most likely fall on your real estate agent. But knowing that bad photos in the MLS can be an impediment to the sale of your home, as a seller it's imperative that you demand great photography from your agent.

Studies show that greater than 85% of people are going online as a part of their research for buying a home. Most buyers will probably first be introduced to your home online. Poor photos could be cause for them to disregard your home before they ever set foot in it. 

The photos used to market your home are generally the first impression any buyer will have of your home. When picking an agent to list your home, ask to see examples of photos from previous listings. Do their photos make you want to take a look at the home?

Never let your home go on the market without photos! If it means waiting a day or two before listing, wait. A large number of potential buyers in your market will be exposed to your home the first day it goes on the market. Having great photos the first day the home hits the market is a must.

Tammie White, a REALTOR® with Benchmark Realty LLC in Franklin Tennessee tells us why "it is crucial to have professional photographs to show off your home."

8. The Home is Just Plain Messy

You were late for work this morning so you ran out of the house without picking up from last night's dinner. Not a big deal.....unless you have potential buyers that will be stopping by. 

Some people may be able to look past the dishes stacked up in the sink, but enough buyers won't be able to look past the mess. Remember, buyers want to envision their things in your house. The more obstacles you put in the way, the harder time they have connecting with the home emotionally.

Take the time every day to make sure everything is cleaned up and the home is in showing condition. 

Woody Edwards, a REALTOR® with First Choice Realty in Chesterfield Virginia is reminded of an old saying his grandmother used to have, "never leave home until the home is in dying condition". This couldn't be more true than when selling your home.

9. Sellers Who Like to Play Tour Guide During Showings

Almost every real estate agent who participated agreed that sellers should leave the house during showings. Some sellers want to stick around and make sure buyers see all the important features of a home. The problem with that.........as a seller you don't know what's important to a buyer. 

Sellers that hover around during a showing will make the buyer nervous. They won't feel comfortable discussing things they like or dislike about the house with their agent. In addition, most buyers like to explore a little bit. Interested buyers tend to do things like open cabinets and check in closets to get a better sense for the entire home. A hovering seller can make this very uncomfortable for some buyers.

Bottom line......leave the house when it's being shown. Your presence there will only make things worse. Karen Feltman, a real estate agent with Skogman Realty in Cedar Rapids Iowa gives you a couple ofspecific ways that a seller's meddling during showings can hurt or kill a deal.

10. Picking the Wrong Agent

You decided to list with your aunt or with your friend that just got in the business. You paid no attention to their experience or what they do to market a home. Maybe not the best idea. 

Real Estate agents will often suggest interviewing more than one agent. You'll never know if your aunt is going to do a good job of marketing your home for sale if you have nothing to which to compare her. 

Don't be scared to ask a real estate agent questions about why they are a better choice than anyone else you may be considering. Just like with any profession, there are good real estate agents and there are bad real estate agents. Anita Clark, a REALTOR® with Coldwell Banker in Warner Robins Georgia shares a great list of potential questions you will definitely want to ask before you pick an agent. 

Real Estate Hidden Gems

Mortgage servicer to pay $268 million to Californians

It's part of a $2.1-billion national settlement with Ocwen Financial, which is accused of breaking state law by denying loan modifications and charging unauthorized fees.

http://www.latimes.com/business/la-fi-ocwen-foreclosures-20140318,0,1317760.story#ixzz2wRSnOS7m

By E. Scott Reckard | LA TIMES

 

California victims of alleged foreclosure abuses will get $268 million in relief from a $2.1-billion national settlement with Ocwen Financial Corp., the nation's largest non-bank provider of mortgage customer service.

Ocwen broke state law by improperly denying loan modifications, failing to honor modifications granted by prior servicers and charging unauthorized fees, according to the California Department of Business Oversight.

"Californians should not lose their homes because of deceptive and poorly executed mortgage servicing practices," Commissioner of Business Oversight Jan Lynn Owen said Monday in a news release.

The announcement provided new details on how alleged victims would benefit from the settlement, finalized last month between 49 states, the U.S. Consumer Financial Protection Bureau and Ocwen. It also spotlights a growing controversy as major lenders outsource their mortgage servicing operations to Ocwen and other firms that specialize in collecting payments, pressuring delinquent borrowers and foreclosing on defaulted mortgages.

The banks are seeking to limit the hassle and cost imposed by tougher regulation of loan servicing in the aftermath of the mortgage meltdown. That's bringing a rush of new business to firms including Ocwen and Nationstar Mortgage Holdings Inc., which traditionally have specialized in handling subprime borrowers.

But as they have mushroomed in size, the specialists have become targets for foreclosure abuse complaints similar to those that have plagued the nation's largest banks since the housing crash.

Ocwen, an Atlanta company with a mortgage servicing arm based in Florida, began managing home loans in 1988. Thanks to an acquisition spree, the number of residential loans it services has grown from about 350,000 to 2.9 million over the last four years. The unpaid balance on these loans totaled $464.7 billion as of Dec. 31.

Mark Buchignani is among those accusing Ocwen of improperly threatening to foreclose on his home. He took a second mortgage of $39,500 when he bought a home in Phoenix in 2006. The original servicer, since replaced by Ocwen, was GMAC Mortgage, a spinoff from General Motors Corp. that had been a major player in home loans during the housing boom.

Buchignani said he never missed a payment until July, when automatic transfers from his bank account stopped going through for four months without his knowledge. He said he continued to receive emails saying the payments had been made. Since he discovered the problem, his offers to bring the account current have been met only with penalties, he said, and a recent threat to foreclose on the home.

"No amount of communication, calls or emails or faxes or letters, complaints or explanations has deflected them from piling on fees and interest and penalties and credit damage," said Buchignani, a video-game designer who recently moved to Southern California and is renting out his house in Arizona.

"They continue to forward my communications to 'Research,' who then issues letters saying they will respond within 20 days," Buchignani said. "But, of course, they don't."

Ocwen did not respond to requests for comment Monday.

In its recent annual report, Ocwen described itself as a leader "in foreclosure prevention and loss mitigation that helps families stay in their home and improves financial outcomes for investors."

But advocacy groups and state regulators have questioned whether it and other big independent servicers have been able to handle the influx of mortgages.

Ocwen said last month that it had indefinitely postponed a planned purchase of servicing rights on about 184,000 severely delinquent Wells Fargo home loans with a principal balance of $39 billion. The move came in response to pressure from the New York Department of Financial Services. Ocwen said it would work with the New York regulator "to resolve its concerns about Ocwen's servicing portfolio growth."

Many of the servicing rights Ocwen acquired came from such household names as Bank of America and Chase. The biggest deal of all was with Residential Capital, which owned the GMAC servicing rights, and while in bankruptcy proceedings sold Ocwen the servicing rights to more than 1.7 million loans in February 2013.

ResCap, as it is known, was among five lenders that signed the national settlement requiring them to provide $25 billion in relief to distressed borrowers; the others were BofA, Chase, Wells and Citigroup Inc. As a result, Joseph Smith, the former North Carolina banking commissioner overseeing the lenders' compliance with the settlement, has now been given authority as well over Ocwen.

In an interview Monday, Smith said he hadn't yet had time to test and report on Ocwen's compliance with stricter servicing rules contained in the settlement. "They're still new to the party," he said.

"My colleagues and I are going to be working on these kinds of issues with Ocwen for the next three years," Smith said, a reference to when his authority expires.

Copyright © 2014, Los Angeles Times

http://www.latimes.com/business/la-fi-ocwen-foreclosures-20140318,0,1317760.story#ixzz2wRSsXfpZ

Helping Your Appraiser do the Best Job

By Lew Sichelman | LA TIMES

trackback:

http://www.latimes.com/business/realestate/la-fi-lew-20140316,0,186251.story#ixzz2wRDrk5eY

Your home is on the market. You found buyers, a nice young couple just starting out, and they're sold on the home. But wait — there's one more person you have to sell: the appraiser.

You can no longer try to influence the professional who's responsible for placing a value on the house — a value that the lender must feel comfortable with if, for some reason, your buyers don't pay back their loan and the bank has to foreclose.

No, the days of MAI — which stands for Member of the Appraisal Institute but was euphemistically known in the trade as "Made as Instructed" — are long gone. But there is still plenty you can do to improve the chance that you will obtain the value you are looking for.

According to builders and realty agents, many a deal has been scuttled when lenders assigned appraisers who lived hundreds of miles away or were not familiar with the area. So after the appraiser calls to set up an appointment, check his or her bona fides.

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FOR THE RECORD:
Appraisal tips: A Housing Scene column in the March 16 Business section on how to get the best appraisal for your house incorrectly identified John Brenan as director of appraisal issues at the Appraisal Institute. Brenan is director of appraisal issues at the Appraisal Foundation. The column also was incorrect in stating that the Appraisal Institute was created byCongress to set appraisal standards and appraiser qualifications. That description applies to the Appraisal Foundation. The Appraisal Institute is a professional organization based in Chicago. —

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"The best way for owners to combat potential problems is to ensure the appraiser is qualified and competent," says Ken Wilson, president of the Appraisal Institute, a trade association based in Chicago. The organization was created by Congress to set appraisal standards and appraiser qualifications. "Consumers have every right to demand the use of someone with field experience in their market and knowledge to handle the assignment properly."

Ask your lender about the appraiser's professional designations. How long has he practiced? What level of experience does she have with your market and your type of property? Is he familiar with the neighborhood?

Of course, you spruced up the house when you put it on the market. You painted, perhaps, and you certainly fixed that broken window in the master bath. And you put away all that clutter in the kitchen.

Now make sure the house is just as dandy when the appraiser finally arrives. Tidy up. Get the dishes out of the sink and into the dishwasher. Clean off the counters. Pick up the dirty clothes from the bathroom floor. Change the furnace filters.

Also, send the kids off to the neighbors' or out to the movies, and lock up your animals.

None of this will add or subtract from the valuation. But human nature being what it is, it will convey the notion that the house is well-maintained, says John Brenan, director of appraisal issues at the Appraisal Institute.

Although you cannot try to directly influence the appraiser — offering a free dinner at his favorite restaurant, maybe, or a little cash under the table — you can speak with him. It's a myth that you can't.

"Conversation is not only allowed, but it is vital," Brenan says. "The appraiser needs to be able to discuss pertinent items about the house or contract."

When the appraiser arrives, present him with a list of everything in and about the house that you believe adds value — new windows, perhaps, or an addition above the garage. You are not trying to influence the deal, per se. Rather, you are "simply documenting," Brenan says. "You are not saying you need an extra $5,000 because you put on a new roof last year. You're just saying that you put on a new roof."

Your list should include a detailed description of any improvements or replacements, the dates they were made, who did the work (backed up by invoices to show they were done by a professional as opposed to a weekend do-it-yourselfer), a brochure to show the quality of the materials and building permits.

Also list any ways your house differs from others on your block: different finishes used, your better view, your larger lot size. "The list goes on and on," Brenan says. "You can't provide enough information about the house, the neighborhood, the schools. It will help give the appraiser a better understanding about the market."

Also give the appraiser a list of comparables, or "comps," which are similar properties in your neighborhood that sold recently. The appraiser may well already have the exact same houses, so at the worst, your list may be redundant. But then again, he may have only one or two.

Either way, Brenan says, "as long as you don't make any demands, a good, competent appraiser should appreciate" the help.

Some appraisers still balk at accepting such information. One recently told Jill Sackler, an agent with Charles Rutenberg Realty in Merrick, N.Y., that he was no longer allowed to do so. But Barbara-Jo Roberts Berberi, a Rutenberg agent in Crystal Beach, Fla., had the opposite experience recently.....

READ the rest of the article here...

http://www.latimes.com/business/realestate/la-fi-lew-20140316,0,186251.story#ixzz2wRE25z1c

Distributed by Universal Uclick for United Feature Syndicate.

Copyright © 2014, Los Angeles Times

Southern California is a Real Estate Seller's Market this Spring

San Pedro one of our local cities made it into this LA Times Article for Top Buyers Markets...

By Tim Logan | LA TIMES

As the busy spring real estate season gets into gear, sellers appear to have the upper hand across much of Southern California.

http://www.latimes.com/business/money/la-fi-mo-sellers-market-20140318,0,5284349.story?track=rss#axzz2wR5dWmXV

That's the word from Zillow, the real estate data website that tracks housing markets nationwide. It released a report on the top 10 buyer's and seller's markets in the U.S. Wednesday morning, and Los Angeles made the list as the fourth-strongest market for sellers right now. Riverside ranked sixth.

A strong seller's market, says Zillow, doesn’t necessarily mean its prices are soaring — and indeed median prices have been flat here in recent months — but rather quick sales, few price cuts, and homes selling at or above asking price. In buyer's markets, sales are taking longer and price cuts are more common.

MAP: Southern California home prices by ZIP Code

Right now, Zillow said, there are big differences in different parts of the country.

Of the top 10 seller's markets, seven are in the West and two are in Texas. San Jose, San Francisco and San Antonio topped the list. For buyers, nine of the top 10 markets are in the Midwest or Northeast, with Cleveland, Philadelphia and Tampa, the only Florida market on either list, the most buyer-friendly.

“The real estate data in markets on both coasts are telling markedly different stories,” said Zillow chief economist Stan Humphries. “Real estate has always been local, and as the spring market gains momentum, this old adage will only become more pronounced.”

Zillow also crunched data at the local level to see what neighborhoods are good for sellers, and for buyers, around Los Angeles. Red-hot Eagle Rock took the top spot for seller's market, followed by Canyon Country in Santa Clarita, Tujunga, Mar Vista and Valencia. The top buyer's markets included the Hollywood Hills, Beverly Glen, Northwood in Irvine, San Pedro and Venice.

http://www.latimes.com/business/money/la-fi-mo-sellers-market-20140318,0,5284349.story#ixzz2wR5zXOh2

March Real Estate

This Month in Real Estate- March

Better School, Better Payout

Posted by RE-Insider  • Categorized as Industry News

Any good parent wants their child to attend the best school possible, but when it comes to finding a home in a top school district, how much more are buyers willing to pay? A recent study performed by Redfin suggests that many parents are willing to shell out even more than you might think. If you’re trying to sell a home and want to get the most for it, you might want to consider “selling” the school first.

Schools have always played an important role in the buying and selling of real estate. More recently though, premiums for homes served by top-ranked schools have been going up, indicating that buyers place remarkable importance on the quality of schools when buying a house.

Redfin reported that on average, buyers will pay about $50 more per square foot for properties served by top-ranked schools than those served by average schools. Even within the same neighborhood, buyers are willing to pay much more for a home served by a top-ranked school than for a similar home served by an average school. Nearly identical homes – only a short distance apart – have been found to sell for significantly different prices, some for as much as $130,000 more.

This comes as no surprise though, considering the numbers which realtor.com recently released from a survey examining how school attendance boundaries influenced buyers in choosing a new home. The report stated that almost 60% of buyers are willing to go over their budget to live by the right school, and 9% of them are willing to go over budget by 11 to 20 percent.

Not accounting for home size, California has seen some of the highest premiums for top-ranked schools. San Jose, San Francisco, Los Angeles, Ventura, and San Diego have seen the highest price premiums in the nation respectively. Some buyers have been reported paying premiums of over $200,000 or more in these areas, for schools which score only slightly higher than others in the same district.

Have you seen these major discrepancies in prices for similar homes served by different schools? What are your thoughts?

Read the full story here... http://www.inman.com/2013/09/25/homes-served-by-top-schools-command-drastically-high-premiums/

Über Rich...and Getting Richer

"For Rich, ’13 Was Good for Making, and Spending, Money" - an  article in Yesterday'sNew York Times, highlights the fact that the wealth of the über-rich continues to grow.  

A few of the highlights:

• The world’s club of ultrawealthy individuals, or those with $30 million or more in net assets, added about 5,000 new members last year
• Over the last decade, the ranks of the über-rich have swelled by 59 percent, and the register of billionaires climbed 80 percent, to 1,682
• The world’s 0.1 percenters had a pretty good year; three-quarters said their assets had increased. Only 4 percent said they wound up worth less
• By 2023, China is expected to have 322 billionaires, more than Britain, Russia, France and Switzerland combined
• Looking for someplace to park their wealth, the world’s rich still prefer property

READ MORE HERE:

http://www.typepad.com/services/trackback/6a00e008cafad7883401a3fccdebaa970b

Millennials: How to Sell to Today’s Youngest Homebuyers

Posted by RE-Insider  • Categorized as Industry News

As with any generation, the Millennials have their own unique likes and dislikes – ranging anywhere from music to food – and one trend which seems to be significantly different from any of their predecessors is their preference in real estate.

In 2013, Generation Y accounted for roughly one third of all home sale, a number which will only rise as time goes on. While this can be a great thing for younger agents and brokers who can relate to these new homebuyers, this transition may not be the easiest for many of the seasoned veterans working in today’s market. The truth is that the median age of realtors today is 57 years old, a substantial difference from the median age of first-time buyers which is currently 31.

So to help adapt to this changing market, here are a few tips to use when finding the right property for the youngest of homebuyers:

1. The best things come in small packages
Keeping up with the Joneses – a race to prove cultural and socio-economic superiority through the purchase of material goods – was a common theme in the lives of many baby boomers, and as a result many of them have sought after a big home with a big price tag. While this behavior may not be a problem for some, it has caused numerous problems for Generation Y. Over 50% of Gen Y kids come from divorced homes. Why? Communication between family members and money problems are the most cited reasons, and many believe these problems stemmed directly from having a big house. As a result, the Millennials want smaller houses on smaller lots. This puts less financial strain on those with tighter budgets and also promotes more interaction between family members.

2. Diversity is key, so jump into the melting pot
Many members of Generation Y have been exposed to more culturally diverse areas, and as a result they look for similar diversity. Urban centers offer a buzz and culture which cannot be found in many suburbs – people from all over the world as well as the music, food and arts they bring with them – and the Millennials actively seek out these differences.

3. Look for a greener living
It has been reported 57% of all members of Generation Y prefer products that are environmentally friendly, and this number is expected to keep going up. Builders are responding to this trend by providing homes with energy-saving appliances, as well as insulation made from soy or other natural products, so keep these “bonuses” in mind when trying to sell a home.

4. A short walk can go a long way
One trend which has surfaced lately in the Millennial community is their interest in walkability. Many members of Generation Y would prefer to walk or ride a bike as opposed to driving to work, so keep in mind the different businesses, restaurants, bars, parks, or anything else that is in walking distance when trying to sell a home. Not only does walking or riding a bike encourage a healthier lifestyle, but it further supports the Millennials’ interest in an eco-sensitive living.

Have you noticed these changing trends in buyers today? What are your thoughts?

Chinese Real Estate Investors Predicted to Flood U.S.

China and US ‘to top cross-border property investment’

 Asia, Investment, Lifestyle & Leisure Properties, Market Trends, News, News By Region, News By Topic, North America,Shows and events, World News1 Comment

 By Adrian Bishop, Editor, OPP Connect

By 2016, Chinese cross-border real estate funds flowing in to the United States will be the highest in the world, beating the current US$1.3 billion from Singapore to the UK, say private equity experts

Within the next two years, the world’s leading cross-border property market will be between China and the United States, experts predict.

As interest from Chinese investors continues to build, the US property market is set to become the world’s top recipient of cross-border real estate funds from a single country, private equity investors believe.

According to 70% of investors polled on at the annual Private Equity Real Estate conference, PERE Summit: Asia 2014, held in Hong Kong, which ended yesterday (Thursday) the United States will become the world leading recipient of real estate funds from China sometime before 2016, the Wall Steet Journal blog has reported.

In the last two years, the biggest cross-border property investment has been from Singapore, which put US$1.3billion into the UK market. Chinese investment into the US is currently in fifth place, but PERE Summit delegates  say it is set to rise to the top.

Hing Yin Lee, Senior Executive Director of the real estate investment department at Ping An Trust, says, “Liquidity is really abundant in China, there’s a lot of hidden liquidity in institutions that they need to deploy capital. Cap rates have been compressed to very low levels they need to look for yield and opportunity.”

Among leading targets for High Net Worth Investors, commercial investors and developers are the gateway cities of New York, Los Angeles and San Francisco, say sector experts.

Chinese investment in overseas property is set to at least double in 2014, according to the Asia Forecast 2014, published by Colliers International.

“Given that Asia is currently in a very different property cycle than the US and Europe, its investors will become more active in outbound investment, focusing on key gateway cities, such as London, New York and Chicago.

“Chinese investors, in particular, are expected to look for overseas real estate opportunities with better yields and the strategic benefits of portfolio diversification.”

Other countries are also desperate to pick up Chinese foreign property investment and are forming new partnerships.

RE/MAX Australia New Zealand says it wants to make sure its properties are effectively marketed to the Chinese and it has just signed a deal with leading Chinese-language overseas property portal, Juwai.com.

Michael Davoren, managing director of RE/MAX Australia and New Zealand says, “Our agents have asked for this. Our vendors have asked for this. Everyone wants to make sure their properties are marketed in China.”

According to Juwai.com data, Australia and New Zealand are favourite destinations for Chinese homebuyers, thanks to their relative proximity to China, good education opportunities, protected natural environment and stable real estate markets and economy.

While Chinese buyers favour Auckland as the top destination in New Zealand, places like Kerikeri, Dunedin, Taupo and Northland are also popular hot spots.

*OPP has just appointed Sophia Liu, who has extensive business development, sales and marketing experience, as its new Commercial Director in China. She aims to expand the OPP business in the region, including developing OPPLive China and OPP China magazine (see http://www.opp-connect.com/28/02/2014/opp-appoints-new-commercial-director-in-china/).

OPP has also recently opened an office in Singapore, headed by Managing Director, Harlow Russell and Commercial Director, Cedric De Souza.

For the full WSJ blog story, go to: http://on.wsj.com/1jFMcUF

By Adrian Bishop, Editor, OPP Connect

READ MORE HERE:

http://www.opp-connect.com/28/02/2014/china-and-us-to-top-cross-border-property-investment/

4 Ways You Can Get More Services From Your Real Estate Agent

4 Ways You Can Get More Services From Your Real Estate Agent

By Heather Levin | MoneyCrashers

Even with rock-bottom interest rates and a glut of bargain-priced homes on the market, qualified buyers are still in short supply. This is primarily because it’s hard to getapproved for a mortgage loan unless you have stellar credit and a hefty down payment. But even when buyers do qualify, they often feel skittish about investing in a home. After all, the economy hasn’t yet fully recovered, and the prospect of losing a job while responsible for a mortgage is enough to scare many people away.

One effect is that real estate agents are feeling the pinch, and therefore are willing to jump through hoops for buyers and sellers alike. In other words, a variety of extra services are to be had often at no charge and simply by asking.

How to Get More Out of Your Real Estate Agent

1. Home Staging
Home staging is the preparation of a home to make it appear as visually and aesthetically appealing as possible, therefore setting it up to be sold more quickly and for a higher amount. Done properly, home staging can transform a property into a welcoming, attractive place that makes the prospective buyer yearn to own it.

Back in the real estate market’s hey-day, home staging was typically an extra service that sellers had to pay for. However, some real estate agents now offer free home staging simply if you list with them. Sometimes, they do the home staging themselves, or they outsource it to a professional stager with whom they work regularly. In fact, last time I listed my home, my real estate agent offered this service for free, which saved me several hundred dollars.

If your real estate agent doesn’t currently offer this service, ask if they’d be willing to provide it free of charge – many will in order to keep your business.

2. Professional Virtual Tours
A virtual tour of your home is the new standard among real estate companies – at least, it should be. Instead of simply displaying static photos of your home online, a virtual tour utilizes new digital technology to take viewers through your home and property using videos, 360-degree panoramic images, and seamlessly stitched photographs, often also incorporating sound effects, music, narration, and text.

Unfortunately, many real estate agents, especially those in rural areas, still don’t offer this service to sellers. When you’re shopping around for an agent, look for one that offers this service as it alone can attract potential buyers who would rather take a “tour” than simply look at pictures. Ideally, your home should be photographed by a professional photographer and then submitted to major sites, such as YouTube, Trulia, and Zillow. If your current real estate agent doesn’t offer this service, request it anyway. If they still can’t provide it, you may want to consider going with an agent who can.

3. Neighborhood Analysis
If you’re shopping for homes in an unfamiliar area, you might feel overwhelmed by the number of neighborhoods. After all, neighborhoods are just like people; they can have very different characteristics, even within a few blocks. Some might be quiet and reserved, others might be funky and artistic, and yet others may be a mecca for young families.

Finding the right neighborhood can be vital to making sure you’re happy long-term, so create a list of priorities, and search accordingly. What is most important to you – proximity to work or proximity to stores? Do you prefer to live in an area with lots of parks, trails, and bike paths, or do you prefer a more urban environment? If you have children, it is especially important to consider the local schools and the crime rate. Remember, it’s much easier to update or remodel a house than it is to change an entire neighborhood.

While most real estate agents can give you an overview of each neighborhood you’re considering, few will provide an in-depth neighborhood analysis that includes detailed information about local schools, area parks, and crime rates. Other factors that may be included in a neighborhood analysis include land uses, such as whether the neighborhood is primarily residential or mixed use (residential and commercial), and property types, such as single-family homes, apartment complexes, and condominiums. However, agents are prohibited from providing specific demographic information – but they can give you an overview of the kinds of families they’ve seen living in and moving into an area. This insightful information can be invaluable for buyers looking for the best fit.

4. Relevant Discounts
In order to market themselves more effectively, many real estate agents establish relationships with other home-related businesses that can benefit their clients. For example, they may coordinate with the local hardware store to offer discounts to clients, or even with contracting professionals, such as roofers, plumbers, electricians, and painters, to provide services at a discounted rate. Other agents may even offer free services from an interior designer or landscaping company if you buy or sell through them.

When you’re shopping for a real estate agent, look for those who can offer discounts on other professional services. They’ll probably tout these discounts on their marketing materials, so it’s usually a perk you don’t have to request.

Additionally, you may be able to take the opposite approach and ask if your agent is willing to accept a smaller commission for fewer services. With the housing market still struggling, agents are more willing to compromise in order to get your business....

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How to Make an Offer on a House – Tips & Strategies

Once you've located the perfect house for you and your family, it is time to prepare an offer. The offer is the foundation of real estate transactions, and upon review, the seller will either accept or decline your bid. It includes basic information, such as the location and physical description of the property, the proposed price, down payment information, and stipulations. It goes without saying that preparing a real estate offer is anything but easy. For this matter, it’s best (though not required) to work with a professional real estate agent.

You can’t make a home seller accept your offer. However, following these tips and strategies can put your offer ahead of the competition.

Factors to Consider When Making an Offer

Your bid indicates how serious you are about buying a particular house. This isn’t the time to play games or submit an offer that’s substantially below the asking price, unless your agent believes it to be fair.

When making your offer, take these factors into consideration:

1. How Long Has the House Been On the Market?
A seller is more likely to lower his or her asking price if the house has been on the market for longer than six months. At this point in the game, he or she is probably eager to sell the house and move on. For this matter, an offer that’s $5,000 or $10,000 below the asking price might work in your favor. And if the property has received few showings or prior bids, then this is even better. The fact that someone is finally interested in the property may move the seller to accept your bid.

2. How Motivated Is the Seller?
Real estate agents often talk with one another, and your agent may have a little background information on the seller, including the reasons behind the sell. This information can help you assess the seller’s motivation, thus helping you to make the best offer.

For example, if the seller isn’t in a rush to move, he or she may hold out for offers that are close to the asking price. On the other hand, if the seller is going through a divorce or is relocating for work, chances are that he or she will accept a lower offer to quickly unload the property.

3. What Are the Prices of Recent Comparative Sales?
A comparative market analysis is another tool to help you make the best offer on a house. Your agent can provide this report, or you can check comparative sales on a website such as Zillow. This report includes active, pending, and sold listings for similar homes in the area. With this information, you can learn the asking price of similar homes currently for sale, as well as the actual sale prices of homes that have closed within the past six months.

Based on the comparative analysis, you and your real estate agent can determine the best price for the house. For example, if you’re bidding on a house with an asking price of $200,000, yet a review of comparative sales shows that similar homes in the neighborhood have only sold for $185,000, an offer that’s $10,000 beneath the asking price might be fair.

Understand, however, that a comparative analysis is simply a guideline. If the house that you’re bidding on has several high-end upgrades – such as a room addition, a finished basement, or newly remodeled bathrooms and kitchen – the seller may not entertain a low bid.

Real Estate Contingencies

Understandably, sellers prefer real estate offers with zero contingencies. However, stipulations are routine in these types of transactions. The key to getting your offer accepted is being fair and keeping contingencies to a minimum. While you generally should include some of the following contingencies, you may not want to include all of them:

1. Home Inspection
A home inspection is not required, but recommended. In your offer, include that the home sale is contingent on a satisfactory home inspection – a thorough examination of the house to check for hidden problems. Areas examined by the inspector include the roof, attic, ventilation system, drainage, doors, windows, heating and air system, plumbing, electrical system, and foundation.

After the inspection, you can ask the seller to make needed repairs. If he or she does not comply, you can walk away from the sale.

2. Financing
If your offer states that the sale is contingent on your ability to secure a mortgage loan, the seller might pass on your offer. The seller is undoubtedly eager to sell the house – therefore, he or she may be unwilling to take a chance on someone who may or may not qualify for a home loan. Have your financing in place before you submit an offer, and include your pre-approval letter with your offer.

3. Earnest Money Deposit
This good faith deposit shows that you are a serious buyer. Submit your earnest money deposit with your offer, and if the seller does not accept your offer (or if you withdraw your offer due to reasons permitted in the contract), you will get your money back. If you proceed with the sale, the earnest money is credited to your closing costs. Earnest money deposits vary by region, but range between $500 and $1,000.

4. Expiration Date
Always include an expiration date with your offer. With this contingency, the seller must respond to your offer within a certain number of days or the offer expires. Choose a length that you’re comfortable with – perhaps 7 to 10 days.

This inclusion protects you in the long run. If you don’t hear back from the seller, you may assume that your offer was not accepted, and you may bid on and purchase another house. However, if you fail to include an expiration date with a prior offer, the seller could legally accept your offer months late, at which time you’re obligated to purchase the house or lose your earnest money deposit.

5. Disclosures
The seller is obligated to disclose certain issues with the property, but is not obligated to make repairs. Laws regarding what a seller must disclose vary by state. However, most states require sellers to disclose any major repairs or issues that have occurred within the past five years, such as mold removal, water damage, or electrical or plumbing problems. Additionally, sellers must disclose any existing hidden issues.

Maybe a window or the roof leaks during heavy rain. Or, perhaps a few of the windows may have broken locks, or the electrical outlets in a particular room do not work. To protect yourself, make sure that your offer is contingent on satisfactory disclosures.

Sellers complete a disclosure form during the negotiating process. After reviewing this form, you can ask the seller to fix issues or adjust the sale price to compensate for these issues. If the seller agrees to make the necessary repairs, but doesn’t fulfill his or her end of the contract before closing, you can legally pull out of the sale.

6. Walk-Through
In your offer, state your wish for a walk-through on the day of closing. This way, you can conduct a final inspection of the house. If the walk-through reveals issues not previously disclosed – perhaps a hole in the wall, a broken appliance, or a water leak – you can legally postpone or cancel the home closing.

Competing With Other Buyers

Ideally, you want to be the only one bidding on a house, as this allows you to take your time preparing the offer. But if other buyers are also interested in the property, time is of the essence, and you have to make your offer count.

There are several ways you can successfully outbid other bidders while still paying a fair price:

1. Include an Escalator Clause
If you really want to purchase a particular home, include an escalator clause in your offer. Simply put, the escalator clause increases your proposed offer up to a certain amount should another buyer submit a bid higher than yours.

Let’s say you submit an offer for $200,000 and include an escalator clause up to $220,000, in which you agree to offer $1,000 over a competing bid. If another buyer submits an offer for $205,000, your proposed price for the house will jump to $206,000, putting you ahead of the competition. This method works wells for homes priced under market value.

2. Increase Your Earnest Money Deposit
Perhaps your real estate agent recommends a $1,000 earnest money deposit. If you learn that others are competing for the same property, it doesn’t hurt to up your earnest money deposit by a few thousand dollars, if possible. This move demonstrates your seriousness.

3. Don’t Ask for a Lot of Extras
Most sellers realize that they will need to make reasonable repairs and updates if they are to unload a home. But if you include a bunch of unnecessary extras in your offer, the seller might go with another bidder. For example, don’t ask sellers for new doors and windows when the current ones work fine. And don’t request a complete bathroom remodel simply because you dislike the present design.

4. Pay Your Own Closing Costs
Buying a house is expensive, and to offset costs, some buyers ask for closing costs assistance. If possible, pay your own closing costs. The less a seller has to come out of pocket, the better. If you need closing costs assistance, be reasonable and ask the seller to pay a small percentage – no more than half.

Final Word

The information included in your real estate offer can make or break the deal. This is probably one of the most stressful parts of buying a house, as it only takes one bidder to knock your offer off the table. Be reasonable with your proposed price and follow your agent’s advice. If the seller submits a counteroffer, work with your agent to decide the best way to proceed. And if you don’t win a bidding war, don’t get discouraged – there will be other homes for you and your family.

What do you believe makes a good real estate offer?

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Who should foot the bill for L.A.'s sidewalk repairs?

It's time for the city to finish the work it promised to do, then return the responsibility of long-term care to property owners.

By The Times Editorial board | LA TIMES

Is there a better symbol of Los Angeles' mismanagement than its miles and miles of sidewalks broken, buckled and twisted by tree roots? These concrete chasms and mini-mountains have made many of L.A.'s walkways nearly impassable for people in wheelchairs or those pushing strollers or those who are less sure-footed. Yet the mayor and City Council have consistently punted on long-term, politically difficult decisions required to address the problem, and their inaction costs taxpayers about $4 million a year to settle trip-and-fall lawsuits.

Now, it looks like the city is finally moving forward. There are an estimated 4,600 miles of sidewalk that need repair, and the city set aside $10 million this year for sidewalk reconstruction; officials anticipate spending the same amount in future years. That is a return to pre-recession funding levels. In addition, Councilmen Mitch Englander and Joe Buscaino are considering putting a $4.5-billion bond measure on the November ballot to pave streets and fix most of the damaged sidewalks...

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http://articles.latimes.com/2014/feb/23/opinion/la-ed-sidewalks-20140223