Dave Harbison's Long Beach CA Real Estate Update: July 2009

1. Curb Appeal - This is often overlooked by the seller when they first consider selling their home. Yet it's so important. Your front yard, afterall, is where buyers form their first and strongest opinions. Make sure your home, from the street, is immaculate, clean, well cared for and inviting. It will bring more buyers that are serious about making an offer on your home.
   
   



2. Don't Lose Sight of the Minor Details - Buyers in this market are (and can be) picky. Make sure to walk through your home and see that even the smallest of things (i.e. electrical covers, chipped paint, worn varnish, brass plates, etc) are in tip-top shape. Give buyers fewer reasons not to fall in love with your home.
   
   



3. Clean, Clean, Clean - Understand that you are trying to sell your home for TOP DOLLAR. In order to do this, you need to make sure that your home is clean, there is no dust, all the floors shine, the kids rooms are immaculate and the walk way to your front door is clear of any leaves, weeds and cut grass. You'd be surprised how many homes lose buyers because they don't tidy up on a daily or weekly basis.
   
   



4. Paint - This is probably one of the least expensive ways to breathe new life into your home. A fresh coat of paint, preferably in a neutral color, allows buyers to visualize how they would change the room and make it their own without creating opportunity for them to put a negative check mark next to the room because of the paint color. And, be very wary of "the wall paper syndrome". If it's there, it probably shouldn't be. Wall paper in this marketplace is not the most desirable attributes for buyers.
   
   



5. Be Realistic - Over-improving may sound like the right thing to do, especially when you talk to buyers, but it can negatively effect your net proceeds. Take the time to talk with your realtor and discuss what improvements should be done, and what shouldn't. Be mindful of costs and return on investment. In a buyer's market, you will see buyers expecting more for much less.

Small improvements can provide a wealth of value to your bottom line. The right approach to planning your sale can make a huge difference.

Labels: Belmont Heights, Belmont Shore, California, Homes for Sale, Long Beach, Park Estates, Real Estate, Selling

Over the past 18 months, many people I've run into (that know I'm a Realtor) tell me they're afraid to buy a home now. With the economy taking a dive and home prices continuing to fall, it doesn't make sense to invest in a declining investment. Far fewer buyers are seeing a bright light at the end of a long tunnel. Yet, they are the ones who look at "these times" as the opportunity of a lifetime.

Right now, you're negotiating power is stronger than it ever has been. As the market begins to turn, that position diminishes. Now, it is still not beyond reasonable for you to ask for price reductions, closing costs and even improvements. And guess what, an extremely motivated seller is very likely to work with your demands.

I can identify many more reasons for buying a home now. In the interest of time, I've included my top 4 reasons:

1. Affordability is better than ever

NAR's (National Association of Realtors) housing affordability index as of December 2008, clearly communicates that homes are more affordable now than at any other point since the group started the index in 1970. In simplist terms, the relationship between home prices, mortgage interest rates and family income falls greatly in your favor.

2. Inventory is "busting" at the seams

After the past 7 years, of little inventory and multiple offers, we've realized a huge number of homes on the market and ready to sell. Like most of the United States, Southern California real Estate Time on Market has grown to months rather than days or weeks. Housing are taking a lot longer to sell, creating loads of inventory. Another factor, Foreclosures and distressed properties, have added tremendously to the inventory and have been a driving force for declining home prices to nearly 2001 levels in many places in Southern California.

Today, it is nearly impossible to time the bottom of the housing market, and even if you do, chances of making a HUGE profit is slim at best. As we climb out of this recession, many markets will not see the huge home-price gains they saw a few years ago.

3. Mortgage rates are extremely low

It's not just the price of the home that will affect affordability, mortgage terms will also effect your monthly payments. These days, rates are very attractive for conforming loas, those that can be purchased by mortgage agencies -- Fannie Mae and Freddie Mac. These daysthe current limit is $417,000, although that can rise to as high as $729,750 depending on various factors of the sale.

4. You can get a federal tax credit

There's now a federal credit line of up to $8,000 for home buyers who haven't owned a home in at least 3 years. Unlike the previous credit, this money doesn't have to be paid back. The extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first 6 months of owning a home. Should you wait?

No. Waiting for further federal developments may zap a buyer's negotiating power, as more people get back in to the market and competition returns. The bottom line is this -- The more Washington gives, the demand for such products will increase.

Labels: Buy, Coldwell Banker Coastal Alliance, Homes, Real Estate, Realtor, Sell