This Month In Real Estate: September

High-End Home Sales Soar throughout California

By RE Insider

While home sales throughout much of California have remained flat throughout this spring and early summer, a new study has indicated that multimillion dollar homes are selling in record numbers, offering hope that the market is still improving and prompting many to wonder what’s holding the rest of the market back.

According to a recent study performed by San Diego-based DataQuick, $1 million-plus sales grew at a 9.1% clip statewide compared with last year, while sales overall fell 7.4%. Additionally, California in the second quarter set all-time records for the number of homes sold for more than $2 million, more than $3 million, more than $4 million and more than $5 million.

What’s driving these high-end home sales? According to market-watchers, there are several factors.

One is the hot technology sector in the Bay Area and some affluent parts of Southern California, which is minting new millionaires who can afford seven-figure homes. Another is the 11.6% price growth in California over the last year, which means a house worth $925,000 last summer may be worth $1.03 million today. And there’s the influx of international buyers, which is pushing up prices at the high end.

“It’s always fascinating to watch this part of the real estate market. It behaves differently, responds to its own set of criteria,” said DataQuick analyst Andrew LePage. “These buyers, especially those in the multi-million-dollar market, are less likely to agonize over credit scores, income and job security, down payments and mortgage interest rates.”

With this in mind, do you think this the market is improving as a whole? And considering that mortgage rates remain historically low, what do you believe is holding other buyers back?

http://re-insider.com/2014/08/18/high-end-home-sales-soar-throughout-california/

These Are The 10 Richest Small Cities In America

Rancho Palos Verdes made the Movoto list @ #9...

They might be tiny, but these places make up for it with big bank accounts, fast cars, and more luxurious amenities than you can shake a 24 karat gold stick at.

We talk a lot about superheroes, cartoon characters, and even the occasional royal figure here on the Movoto Real Estate Blog, but most of the time we’re telling normal folks like ourselves where the best and safest places are to live.

Every once in a while, though, we wonder what life must be like for the 1 percent—what sort of places they live in, and what sort of things they need. It’s for that reason why we decided to turn our ranking prowess toward finding the enclaves of our country where the truly wealthy reside.

What we found is that, when it comes to small cities and towns, there’s none richer—in terms of actual wealth or things the wealthy enjoy—than Bethesda, MD. In the process, we also determined the top 10 richest small cities in America, which are:

1. Bethesda, MD 2. Palo Alto, CA 3. McLean, VA 4. Redondo Beach, CA 5. Menlo Park, CA 6. Lexington, MA 7. Brentwood, TN 8. Foster City, CA 9. Rancho Palos Verdes, CA 10. Laguna Niguel, CA 10. Hoboken, NJ

How We Made This Ranking

Even if you’ve read one of our Big Deal List rankings before, you’ll want to pay attention, because this one’s a little different.

In order to determine which small cities in the U.S. are actually the richest, we started with a list of 950 places with populations between 30,000 and 80,000 people according to the 2010 U.S. Census. We then ranked these places from 1 to 950 based on two categories: median household income and median home value, using data from the 2010 Census, with one being best.

The average of these two scores was used to determine the top 25 most wealthy small cities in the country. From there, we gathered further data on just these 25 places in nine additional categories we chose to encapsulate a truly rich place:

• Really expensive fine dining establishments per capita
• Really expensive clothing retailers per capita
• Really expensive jewelry stores per capita
• Luxury car dealers per capita
• Country clubs per capita
• Cosmetic surgeons per capita
• Distance to nearest polo field
• Distance to nearest yacht club
• Distance to nearest private airport

For the first six criteria, we used business listings and only considered businesses actually located within city limits. For the last three, we used the distance to the closest field, club, or private airport by actual driving miles.

Each place was given a score from 1 to 25 in the individual criteria, with one being best. We then averaged these rankings together into an overall Big Deal Score, with the lowest score being the richest small city.

Now that you know how we put the ranking together, let’s take a look at the top places and how they fared across all these various criteria. You might want to grab yourself a top hat and monocle to wear while you read for optimal richness simulation.

9. Rancho Palos Verdes, CA

   

Country Clubs Rank	1	Luxury Car Dealers Rank	8	Polo Field Distance Rank	16
Really Expensive Fine Dining Rank	1	Really Expensive Clothing Rank	11	Private Airport Distance Rank	18
Yacht Club Distance Rank	5	Really Expensive Jewelry Stores Rank	11	Plastic Surgeons Rank	22

Six hours south of Foster City, but still located on the water, Rancho Palos Verdes is home to some of the Los Angeles area’s most prime seaside real estate. That explains its median home value of $973,900 in 2010, but its median household income of $119,778 is also sky-high. Residents can spend that money on fine dining like nowhere else, as Rancho Palos Verdes ranked first overall for hyper-expensive cuisine. It was also first for country clubs per capital and, owing to its coastal location, fifth for distance to the closest yacht club.

http://www.movoto.com/blog/top-ten/richest-small-cities/

Keller Williams LA Harbor Market Share: March Update

How to Find the Perfect Apartment for Rent – 10-Step Process

By Jacqueline Curtis | Money Crashers

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Tips to Find a New Home to Rent

1. Determine Affordability

The U.S. Census Bureau suggests that your monthly rent should not exceed 20% of your monthly income – 30% at the most. For instance, if you bring home $4,000 each month, you should cap your search at around $1,200. Taking the time to update and polish your personal budget before you start looking for apartments can not only help you figure out your price range, it can also help you identify areas in your personal finances where you can cut back if you want to spend more on a pricier apartment. After scrutinizing the numbers, you may decide to drop that costly TV subscription to allow you more wiggle room in your budget for the right place.

Create your budget with a simple spreadsheet or an online service like Mint or PearBudget. Detail your income and expenses down to the penny, from fixed obligations such as phone bills, student loans, and car payments, to variable month-to-month costs such as groceries, entertainment, and clothing. You can lower your food bills by clipping coupons, and save money on your cable, smartphone, and Internet by bundling all three services under one provider. These small moves can really add up, giving you the funds you need for your future housing.

2. Lower Rental Costs

There are several things you can do to find a lower monthly rent:

• Look Outside an Urban Area. While living in the city center may seem like a priority, it doesn’t mean much if you can’t afford the rent. Instead, check out apartments in the suburbs within a conveniently commutable distance to work.
• Consider Transportation Costs. Urban areas generally require a smaller transportation budget, since you can likely take public buses or subways to get around. However, you still need to take transportation costs into consideration, whether it’s a bus pass or gas money, if you choose to live away from the city center.
• Get a Roommate. You can slash the price of any apartment in half simply by sharing it with someone. You need a landlord’s approval before doing so, but having a roommate can significantly reduce the financial pressures of renting. Just make sure you have a written agreement with your roommate laying out all obligations.
• Check for Subsidies. The U.S. Department of Housing and Urban Development (HUD) routinely offers subsidies for those with lower-income jobs who may not be able to afford rent. Search the HUD website to find affordable housing or see if you qualify for subsidies.
• Think Small. Square footage comes at a premium in an apartment, particularly in the number of rooms. Going for a studio or one-bedroom may mean missing out on some space, but you make up for it with big month-to-month savings. Assess how much space you really need based on your lifestyle, visitors, pets, and storage. You may find that you’re happier paying less for a smaller place.
• Negotiate. Unless you’re apartment hunting in a popular area with little renter turnaround, many landlords are amenable to negotiating. Check out the rates for comparable apartments with similar amenities in the area and bring your research with you to strike a better deal. You can also offer to pay rent for a longer chunk at a time (a landlord may lower the rate if you pay three or six months at a time) or choose to sign a longer lease to score a better deal overall.

3. Add Renters Insurance

For some, renters insurance is a choice, but for the vast majority, it’s required by a landlord. In either case, you should add it to your budget. It covers losses in case you suffer a break-in, and it also helps cover your landlord if you do damage to the property. A landlord insures the building, but renters insurance covers what’s actually inside it.

Luckily, it’s pretty affordable. Rates depend on geographical location, amount of coverage, and amount of rent paid, but, on average, you can expect to pay around $500 per year on $25,000 worth of coverage – about $12 to $15 per month.

4. Run a Credit Check

Many landlords run credit checks to see if there are any glaring issues with potential tenants, such as unpaid bills or bankruptcy. You can also expect a background check. Although landlords run these checks prior to approving you, it’s actually a good idea to request your own free credit reporton your own. That way, you can comb through to check for any potential roadblocks and contest any errors you may find.

All three credit reporting agencies (Equifax, TransUnion, and Experian) are required by the FTC to offer one free credit report each year. It’s no cost to you and won’t affect your score if you request it, but you do need around three weeks to actually receive the report.

5. Start Hunting

Don’t leave apartment hunting for the last minute. In a perfect world, it should start around three months before your “must move” date. Many current tenants have to let their landlords know of vacancies in advance – the majority of areas require renters to give at least 30 days’ notice, but plenty give more.

While the features you want in an apartment are specific to you and your lifestyle, there are a several basic things you need to look for:

• Price. Avoid looking at apartments outside of your budget. Landlords are unlikely to discount the rent, and you could end up either overspending or being disappointed when you can’t afford the apartment of your dreams. Instead, set a firm number and only look for places that fall within your budget.
• Transportation. If you’re currently without a car, check every potential apartment’s proximity to public transportation. An apartment may be well-priced and in a great neighborhood, but if you have to spend most of your time walking or calling taxis, it might not be so attractive. What’s more, you need to factor the cost of transportation into your budget for a realistic picture of how much an apartment really costs.
• Convenience. Choosing an apartment that is conveniently located can make your life a lot easier. Look for a place that’s close to work, shopping, transportation, and amenities such as laundry.
• Safety. Not only should an apartment be in a safe neighborhood, landlords should make an effort to ensure their tenants feel safe inside. Proper locks on each door, private entrances, and security should all make you feel better about renting.

6. Gather Your Down Payment

Many landlords require a down payment, which usually includes the first and last month’s rent, along with a security deposit equal to one month’s rent. Therefore, if you’re forking over $800 per month for a new place, you need $2,400 ready to go when you actually sign your lease. Your first and last month’s rent is obviously retained by the landlord, but your security deposit is generally returned if you leave the property in the condition you found it. Otherwise, it can be applied to maintenance, repairs, and cleaning.

While you won’t need to give a landlord a security deposit until you sign the lease, it’s always a good idea to have the amount saved up in your bank account. That way, you won’t lose out on a potentially perfect apartment to a better-prepared renter simply because you didn’t have the money.

7. Prepare Documentation

Landlords take a substantial financial risk if they don’t thoroughly check out each applicant, so in addition to credit and background checks, some may require extra documentation. Gather the following papers and keep them on file in advance of your search:

• Letter of Employment. A landlord needs to know you’re gainfully employed and able to make monthly payments based on your salary. This letter should be printed on company letterhead and include an affirmation that you work there, the duration of your employment to date, and your monthly or yearly salary. It should be signed by a supervisor.
• Pay Stubs. These corroborate the information in the letter of employment.
• Tax Returns. If you’re self-employed, tax returns from the last couple of years should suffice in place of pay stubs. You may need to offer extra explanation as to what you do for work and the amount you make annually.
• Reference Letters. A landlord wants to know that you’re a great tenant. If you’ve rented before, ask for reference letters from past landlords explaining that you paid your rent on time and cared for the property. If you’ve never rented before, ask for letters from previous employers or acquaintances who can confirm that you’re responsible and honest. Just make sure they’re from people not related to you – glowing recommendations from your mom won’t do the trick.

8. Talk to Tenants

While you want to make a good impression on the landlord, you also need the landlord to make a good impression on you. The best way to find out if you really want to live in a certain property is to talk to past and current tenants. In general, you want a landlord who is courteous and safe, and who takes care of maintenance issues promptly. Ask about tenant turnover, infrastructure issues, and response times to complaints.

This is also the ideal time to ask about living expenses in the area, especially if you’re moving to a new neighborhood. Current tenants can give you a rundown of what they spend on transportation,utilities, and entertainment, as well as information about the neighborhood, such as where to eat, the location of specific school districts, and the best local amenities.

9. Do a Walk-Through

Don’t sign that lease just yet. After everything checks out and you’re happy with the apartment, location, and landlord, you should do a final walk-through before signing on the dotted line. Because previous tenants may have caused damage or maintenance issues, you need to be sure that you won’t be responsible for any issues that weren’t your fault.

Come prepared and check for the following:

1. Turn on lights and faucets, and flush toilets throughout the apartment to make sure they all function properly.
2. Check for rodent or insect infestation, particularly in cupboards and storage spaces. Chew marks or droppings are a major red flag.
3. Bring along a cell phone charger and plug it into the outlets to make sure they all work.
4. Check smoke alarms and look for fire safety equipment, such as an extinguisher in the kitchen.
5. Open and close and lock and unlock doors and windows.
6. Turn on all included appliances to make sure they’re working.
7. Examine floors and walls for any type of damage. Carpet, hardwood, linoleum, drywall, and tiles should all be inspected.
8. Take pictures of any problem areas with a digital camera and show them to the landlord. Save the file so if there are any discrepancies with maintenance or problems getting your security deposit back when you move, you have evidence to prove you didn’t cause the damage.

10. Read Over and Sign the Lease

Lease agreements vary depending on time frame and contract terms.

• Periodic Leases Work Best for Shorter Durations. With a periodic lease, the landlord acknowledges that your situation could change from month to month, allowing you to pay and renew your lease monthly. However, these leases can be more expensive, and because you have to renew each month, the landlord reserves the right to raise the rent at any time. You need to give your landlord 30 days notice before vacating the apartment, so this arrangement is best only if you truly need short-term living space.
• A Fixed-Term Lease Is Most Common. Contract with your landlord to stay in the apartment for a specific period of time – three months, six months, a year, even two years. In many cases, if you choose to move out, you’re still responsible to pay for the time left on your lease, whether you live in the apartment or not. This can mean locking in a lower rate, though, which is ideal for longer-term living situations. Occasionally, landlords let renters out of their lease if a penalty is paid, so be sure to discuss contingencies before you sign.
• Subleases Are Three-Party Lease Agreements. They often occur when a renter needs to vacate an apartment, but is still in a lease with the landlord and responsible for the rent. With a sublease, the original renter finds another resident to take over lease payments until the term is up. The renter then pays the landlord for the duration of the contract. Subleases must be approved by the landlord, so if someone offers you a great deal on the down-low, it could be suspect.

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Tips For Buying Luxury Real Estate

By Jean Folger | Investopedia.com

http://www.investopedia.com/articles/personal-finance/022714/tips-buying-luxury-home.asp

There is not one design, style or size that embodies a luxury home. It could be a sprawling 15,000-square-foot French manor set on several rolling acres, or it could be a 4,000-square-foot contemporary home nestled into the side of a mountain. Although it's difficult to quantify exactly what luxury means, most buyers think they know it when they see it.

Across the United States, sales of luxury homes have been hitting records. The number of California homes selling for $2 million or more, for example, reached an all-time high in 2013, as the state rebounded from the foreclosure crisis. The U.S. is not the only place seeing bitg sales of luxury homes. Vancouver, Canada's priciest real estate market, saw a record 36% increase in 2013 over the previous year on sales of homes priced over $2 million.

Prices for luxury real estate have also seen significant increases over the last couple of years. According to Knight Frank's Prime Global Cities Index, which tracks luxury real estate in 30 metropolitan markets around the world, the hottest luxury market now is Jakarta, which saw price increases of nearly 38% at the end of 2013 over the previous year. Knight Frank defines luxury real estate as homes that were sold in the top five percentile in terms of value. Other double-digit price increases in the last quarter of 2013 over the same quarter 2012 include Dublin (17.5%), Beijing (17.1%), Dubai (17%), Los Angeles (14%), Tel Aviv (12.7%), Bangkok (12.3%), San Francisco (10.4%) and New York (10.4%).

Why the Growth?

It may seem incongruous that luxury markets are heating up, given that much of the world is still recovering from the 2008 financial crisis. Like the financial markets, the real estate market operates under the law of supply and demand. And by nature, there are a limited number of luxury homes for sale at any given time in a particular market. That limited inventory alone can help drive up prices as multiple buyers bid on a single luxury property.

Strong Job Market

In many metropolitan markets, such as Denver, low unemployment rates coupled with well-paying jobs have fueled the luxury real estate market. Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado, said, "We have never seen this kind of frenzy in luxury home sales before. The strongest single market segment for 2013 was clearly the luxury home market. If you include the sales of properties priced at over $500,000 - the top 10% of the market - we saw an increase of 44% year over year."

International Buyers

In the U.S., international buyers represent a growing percentage of the real estate market, including the luxury market. From April 2012 - March 2013, international transactions were at $68.2 billion, which made up more than 6% of total U.S. existing home sales (in dollars), and more than 4% of transactions, according to the National Association of Realtors (NAR); 2013 Profile of International Buyers. Florida, California, Texas and Arizona were the leading destinations during that period, with the majority of international buyers coming from Canada, China, India, Mexico and the U.K. These numbers represent a small decrease from 2012's $82.5 billion in sales to international buyers, but NAR believes this is related to the slow growth in some major European economies and that the issue "should dissipate over time."

The publication also cites that international buyers typically purchase higher-priced properties compared to domestic clients: international buyers spent an average of $354,000 versus $228,000 for domestic purchases. Due in part to the tight U.S. credit standards facing foreign buyers, the majority of international purchases are all-cash deals (63%). This can put other buyers who need financing at a disadvantage, since all-cash deals tend to move faster through the process.

U.S. Relatively Inexpensive

The U.S. is home to only one of the top 10 most expensive cities in the world, making the U.S. a relatively inexpensive and attractive destination, both in terms of cost of living and housing. According to Forbes Magazine, the top 10 most expensive cities in the world (as of March 2013) are:

1. Hong Kong, China
2. Tokyo, Japan
3. London, UK
4. Paris, France
5. Moscow, Russia
6. New York, NY
7. Shanghai, China
8. Singapore
9. Mumbai, India
10. Sydney, Australia

Buying a Luxury Home

According to the 2013 Profile of Home Buyers and Sellers published by the National Association of Realtors, nine out of 10 buyers used the Internet at some point when looking for a home, and 43% of recent buyers first found the home they purchased online.

While the vast majority of homebuyers rely on the Internet at some point during their home searches, luxury homebuyers can be at a disadvantage when it comes to finding properties online. Many high-end properties aren't listed on MLS or search engines. And, in order to protect their privacy, many sellers avoid putting information and photos of the property on the internet.

Find a Qualified Real Estate Agent

If you are in the market for a luxury home, a qualified real estate agent who knows the luxury market may be your best bet for finding properties that are for sale but that are not necessarily easy to find because of privacy concerns. An agent familiar with the luxury market may have inside information about listings before they hit the open market. And, an experienced agent will be able to help you determine the market value of a luxury property. Most residential real estate is valued using comparables - similar properties in the area that have recently sold. Valuing luxury properties can be a challenge since often there are no similar properties in the area.

Financing 

The loan process for luxury homes typically takes longer than for smaller mortgages. Even if your financials are in good order, it may take 45 to 60 days to secure a loan. Since it can take extra time, and because the seller of a luxury home is often interested in showing only to qualified buyers, many real estate agents recommend having your mortgage broker, loan officer or personal banker obtain your financing approval early on in the process.

Due Diligence

As with any real estate purchase, it is important to take the time to properly inspect a luxury home prior to purchase. In many cases, luxury homes are larger and have amenities that may require specialized home inspectors, such as:

• Pools and spas
• Fountains and ponds
• Lawn irrigation systems
• Exterior fireplaces
• Automatic screen and awning systems
• Central vacuum systems
• Heated floors/driveways
• Sophisticated security/surveillance systems
• Landscape lighting

READ MORE HERE...

http://www.investopedia.com/articles/personal-finance/022714/tips-buying-luxury-home.asp

Americans are on the Move!

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

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

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

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/