Tuesday, April 12, 2011
Common Mistakes I See Sellers Make
 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:
- 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.
- 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.
- 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.
- 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.
- 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
- 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
# posted by Dave Harbison @ 1:38 PM
Friday, February 25, 2011
Mortgage Interest Deduction - Helping You and I Every Day
 I normally try to stay as far away from politics and legislation as possible. Recently however, with trillions of dollars in deficits, rising cost of living and shrinking middle class, there has been a push by some in Washington to make sweeping changes to the tax structure we Americans have become accustom too over the past few decades. Yes, we as a country need to curb our spending and become more responsible with how things are done here in the United States. As a Realtor, I am driven to protect the rights of us professionals to continue doing what we do with limited interference. I depend on our legistlators to protect me as well as my clients. As a service, our industry is very vulernable to changes the economy and economic outlook. So, in a sense, I have skin in the game when it comes to making sure all of us act responsibly and in the best interest of everyone. So, What About Mortgage Interest Deduction - Where Do I Stand? There was an article in the Washington Post recently that drove a misperception that the Mortgage Interest Deduction (MID) benefits the wealthy. My feeling is, MID primarily benefits the middle and lower income familes who earn less than $100,000. From my research, approximately 91% who claim less $200,000 are MID beneficiaries - many being younger middle-class families The MID helps families become home owners by reducing the carrying costs of owning a home. The ability to deduct interest on a mortgage can save a significant amount of taxes. Unlike the very wealthy who have a large portion of their wealth tied up in stocks and the market, most of the middle-class in America have their home as their largest investment. Millions of Americans bought their home with the understanding that mortgage interest is and always will be tax-deductable, and many of them steadily paid down their mortgages to build equity in their home. By eliminating or reducing MID, equity would be significantly decreased, home pricing would be in free-fall, one of the strongest industries in the United States would stumble and possibly crumble and the financial futures of millions of Americans would be thown into chaos. And, for people who don't have hundreds of thousands of dollars in savings to buy a home outright, tax benefits like the MID help them begin to build a future through home ownership. With all the economic pressures our middle class faces today, it is not the time to throw those that work the hardest under the bus. Labels: Belmont Heights, Belmont Shore, Long Beach, Long Beach Real Estate, Mortgage, Mortgage Interest Deduction, Naples
# posted by Dave Harbison @ 6:52 AM
Thursday, February 24, 2011
What Are Luxury Home Owners doing in Long Beach?
Living in Long Beach, CA, I am not exposed to as many grand homes as those Realtors in Beverly Hills, Newport Beach, Manhattan Beach, Santa Barbara, Rancho Palos Verdes or other select parts of Southern California. Don't get me wrong, our city has a great number of places, on the water, and inland that hold you breathless. To me, Long Beach is a hidden gem -- a secret place situated between Los Angeles and Orange County that provides a lifestyle that is a mixture of bustling east coast and laid back west coast. Naples, Belmont Shore, Park Estates, Lakewood Country Club and Virgina Country club are places that most resemble the lifestyle synonymous with what everyone perceives as California luxury. It is, but at a fraction of the cost of other areas. In the past 10 years, a great many of the homes in this area have been remodelled or totally rebuilt to reflect the changing face of expectation in luxury. After doing a little digging, I've uncovered a number observations about the upper-tier housing market in Long Beach -- that align very closely with other areas in the whole of California: - Professional Landscaping is a must
- Upgraded the kitchen. In the luxury market there is a great number of homes in Long Beach that have "Designer" kitchens
- Wine cellars are becoming more popular as available room, especially in Naples, Belmont Shore and Belmont Heights is becoming more of a premium
- Wet Bars are starting to make a come back
- In-ground swimming pools with spas have long been popular and are even making a splash in smaller lots in Belmont Heights
- Installed Security systems are the norm rather than the exception
- Surround sound systems with the latest wireless capabilities
I can only speak for myself, but luxury in Long Beach is more than design. Add taste, style, convenience, flowing floorplans and timeless individuality and what you see will be incredible. Any chance you get to view a home that peaks your interest. Do it! --- Dave HarbisonLong 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: Belmont Heights, Belmont Shore, Dave, Long Beach Real Estate, Luxury Homes, Naples, Park Estates, Real Estate, Realtor, Virginia Country Club
# posted by Dave Harbison @ 10:02 AM
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