Dave Harbison's Long Beach CA Real Estate Update

I had a client talk to me about their roof the other day.  They plan to put their home on the market soon and they wanted recommendations as to what they should do - New Roof or not.  As a Realtor representing them, my job would be a lot easier selling their home with a new roof.  However, what really needs to be asked -- "Is the investment going to turn into top dollar for their home?"

Here are a few things, in my opinion, that should consider:

1. It's a Buyer's Market
   
   We have been in a buyer's market for quite some time.  Good Realtors will guide their buyers to properties that provide the most home for the money.  I always tell my clients the two most important things to look at when considering buying a home is foundation and roof.  After all, these can be the most costly if not in the best condition.  Third and forth on the list would be plumbing and electrical.
   
2. State of the Roof
   
   The roof sheathing and outer roof over 20+ years of age most likely has experienced deterioration regardless of type of roof (composition, tile, wood shake, even metal).  The cost of replacing your roof may provide a worthwhile investment to conscious buyers who are looking to get the most for their money in addition to "peace-of-mind" knowing the cost of replacing the roof will not be out-of-pocket.  In my experience that lenders also put more positive weight on a new roofs than ones at the end of their life.
   
   Before any decision is made, have more than one roofing professional out to take a look at your roof and provide a detailed report of the state of your roof and recommendations (have them include photos if possible).
   
3. Competitive Market Analysis
   
   Today, you not only have to convince buyers that the price they are paying for your home is worth it.  You also have to convince the Bank!  Homes that are priced quite a bit higher than others in the neighborhood, regardless of upgrades and updates, may not be able to capture the value they deserve.  Banks are much more conservative than in the past and appraisers have tightened up their practices as well.

There are several situations in my recent past where, when asked, I recommended against a new roof and my clients opted for roof repair.  The recommendation I would make is to know the state of the homes that have sold in your neighborhood, have intimate knowledge of the state of your roof (where there are leaks, drainage issues and deterioration) and have your Realtor or trusted Real Estate professional provide their view of value with and without a new roof.  An informed seller is always more powerful these days!


--- Dave Harbison Long Beach REALTOR® Main Street Realtors (562)618-9770 --- Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties Long Beach Relocation Expert ---

Labels: Craftsman, Dave, edison, Future of Real Estate, Home Seller, Long Beach Architecture, Long Beach Bungalow, Long Beach Heritage, Long Beach Seller, Naples, roof, Virginia Country Club

Signs are finally pointing to a stablizing of the Real Estate marketplace in Southern California. More homes are being sold. Buyers are out in full force looking for the most home for their money. And banks are starting to loosen up the purse strings (albeit, very cautiously). This is not to say we're out of the woods yet. Our economy is fragile and any hiccups in our economic machine may drive us back to where we were a couple of years ago. I'm always optimistic, so I firmly believe we're on the way up, not down. With that said, I enjoy educating sellers on how to take advantage of these times, even though the perception is that the buyer is in control. This is not always the case. In fact, if handled correctly, sellers can still reap bountiful rewards on the sale of their home. That's what I look to do when presenting the opportunities to sellers. Yet, I am constantly overcome by the amount of sellers that feel compelled to execute a strategy that may cost them profits in the long term. Here are a few mistakes I see sellers make these days when selling their property:

1. OVERPRICING THEIR HOME Home values have obviously adjusted themselves from their peak in 2006. This makes it tempting to list your home based on the value a few years ago and not today -- especially if you purchased it while the sellers market was "red hot". Things have changed quite a bit since then. Buyers have become much more aware of the marketplace and values. They have been inundated with information from all different news sources and are much more informed...and cautious. Overpriced homes sit longer and often go through several price reductions before being sold. If you're a motivated seller, be realistic about your home's value. Make the hard call to price it to sell today, not like it's 2006. You'll have greater peace-of-mind and the good feeling that comes with looking to your next challenge in life.


2. UPGRADES/UPDATES/REMODEL This is a very hard decision. The goal is to make as much from the sale of your home as possible. Curb and room "Appeal" always plays a part -- especially in a buyers market where similar homes with more appeal and updated/remodelled features are in competition with your property. Seriously evaluate the pros of upgrading your kitchen and/or bathroom(s) and even front lawn against how your home would fare against the competition without any updates or changes. Depending on inventory and desirability of the location, you may want to make the investment.


3. OVERPRICING IN A BUYER'S MARKET It's no secret that home values have decreased over the past few years. By some accounts, as much as 27% since 2006. Some markets even declined 50-60%. Do a reality check. Get a firm understanding of the marketplace TODAY. Know what other homes have already sold for in the past 3-4 months, then gauge your listing price on that. In real estate, home sellers are either leading the market or chasing it. If you are chasing the market by listing your home above recognized market value, you most likely will fetch less for your home than you would have if pricing it close to market value as buyers would feel there is something wrong with the home. In addition, focus on the homes recently sold in your area and those currently for sale. Each represents a reference point/competition (respectively) to your home.


4. USE AN AGENT THAT IS TECH SAVVY Although Real Estate has traditionally been thought of as a "localized business", the effectiveness of reaching beyond your community's borders is extremely important these days. Make sure you're Realtor is actively engaged with the main Real Estate Portals and social media outlets. There are so many additional ways to expose properties to buyers. Real Estate is a global business with potential buyers all around the world and always within our social connections.


5. PHOTOGRAPHY IS KEY In a web-centric world, photos and virtual tours represent key marketing communication vehicles for your home. Be sure your agent is able to capture the essence of your home, its highlights and those areas most important to buyers -- kitchen, bathrooms, yard and living space


6. DON'T HANG AROUND WHILE BUYERS ARE PREVIEWING YOUR HOME If you are in your home or follow potential buyers around while they are previewing your property, chances are the buyers will feel a bit nervous. It's been my expereince that privacy while my buyers are looking at a home is important to gather true feedback and better position the home for sale. Buyer's agents are there to help you sell your home. Try to stay out of their way.

Don't hesitate on giving your Realtor a call to gain additional "ins" and "outs" of positioning your home for sale.

---Dave Harbison Long Beach REALTOR®Main Street Realtors (562)618-9770---Long Beach Realtor® / Real Estate AgentLong Beach Homes for Sale, Condos and Investment PropertiesLong Beach Relocation Expert---

Labels: Home Seller, Long Beach, Long Beach Real Estate, Long Beach Seller, Preview, Selling, Selling Real Estate