Try imagining it!
Your realtor® can't help you, if you don't know what you want!
Let's start with some general questions.
1. How long are you willing to drive to work?
2. Is your home in a development with an HOA to maintain standards, or a house without the need for anyone's approval to make changes?
3. Do you care if you purchase a new construction home (yes, you should have an agent for this), REO, short sale or regular sale?
4. Are schools a personal consideration or only from a standpoint of resale?
5. Where is the nearest park and/or schools?
6. Which is more important, budget or amenities?
Now mentally drive up to your new home -
1. Is it in the city, suburbs, marina, beach or countryside? Does it have acreage?
2. Is it a single story or multi?
3. Is it set back from the street or is it close up with a small patch of grass?
a .Is there a garden in front?
b. A driveway?
c. Statuary?
d. Portico or porch?
4. Garage size? Location?
a. Is there rv parking?
b. Guest or street parking?
5. What is the lot size and characterisics? level or sloped?
6. Is it a corner lot or do you have neighbors on both sides?
7. How old/new is the house? stucco or wood, or something else?
8. Are the windows standard, bay, bow, stained glass?
9. Is it move in ready or an equity builder?
Let's walk in the front door.
1. It's floor plan style? Bungalow, rancher or something else?
2. Are you in an entry hall?
3. Is there crown molding or more of a contemporary feel?
4. What is the flooring? tile, hardwood or carpeting? Is it fairly consistant throughout or will you transition from one type to another as you move around the house?
5. What is the first room you walk into? Does the house have a formal floor plan or more of
a great room, open concept?
Walk through the living areas of the home…How is it laid out? Are there views? Of what?
1. Is there a formal dining room?
2. Is there a family room? on what floor?
3. Kitchen details... where is it relative to the living areas?
a. Is the kitchen a galley or separate room or does it open to the more social areas of the home?
b. Is there an island?
c. Granite counter tops or tile? what color is it?
d. Are the cabinets, white, light wood, cherry or espresso? Glass or solid doors?
e. Is the cooking surface gas or electric?
f. One or two ovens? are they a range or a separate unit?
g. What other appliances? Compactor? Dishwasher? Fridge? Convection oven or microwave?
h. Is there a nook or counter bar?
i. In what room will you eat?
j. Is there a built in desk/ work area?
4. How many bedrooms and baths? Are they on the same floor as the living areas?
5. Is there a full bath on the main floor? A half bath? Both, or more?
6. Are there hallways?
7. Are there stairs? Up or down? Straight, curved or spiral?
a. Where are they in the house?
b. Are they open to the room from which they originate? If so describe the rails- wood or wrought iron or something else?
Now walk into your master bedroom.
1. What floor is it on?
2. Is it one room or does it have a sitting room, nursury, office or retreat?
a. What time of day will you have sun?
b. Are there doors in addition to windows? If so to deck or yard? Are there views? Of what?
c. Are the closets walkin or wall? Is there one or multiple closets? Are they in the main room or more a part of the bath?
3. Does the master bath have a door or open entry?
a. Is there a full shower and a soaking tub, shower over tub combo or just a shower?
b. A water closet?
c. What is the counter surface?
4. Does the house have a jr master as well?
a. What floor is it on?
5. Other bedrooms?
6. Other baths?
7. Where is the laundry? Deep sink and/or counters?
Now let's walk outside. How did you get there?
1. Is the back yard mostly grass? Mostly rock? Planted garden? Covered patio? Deck?
2. Is there a pond or other water feature?
3. Patios? What are they made from, brick, rock, cement, paver tiles?
4. Is there a back neighbor, green belt, dock or park behind your house?
5. Is there a vegetable garden?
6. What can you hear in the distance? Is traffic okay? Trains? Fog horns?
7. Is there a built in barbeque area? Fire pit? Built in bar?
8. Is there a pool? A hot tub? Gazebo?
9. Is there an out building? Man cave, storage shed, guest or pool house?
10. Do you have a dog run?
11. If the next door neighbor has dogs, what kind are they?
If you can answer all of these questions, or provide any other details, your realtor® should have no trouble finding you a home.
The next question will be, can you afford what you find? Be realistic about what you want, based on what you can afford!
Monday, July 11, 2011
Thursday, July 7, 2011
Getting to Know Your Neighborhood
I have been experiencing a new phenomenon. I have been getting to know new neighborhoods on a really personal level.
Of course I know the neighborhood in which I grew up, in Albany, CA. In fact, I know the whole city very well as many of my friends still live there. I know the neighborhood I live in now. I know much of San Mateo as well, having raised my two children there. Same with the Parkmead area of Hayward. I lived there for 8 years. Twice a week I walked the whole neighborhood. You get to know a lot of neighbors that way! Now I am selling my home there and reacquainting myself with them after several years away.
Now I also know Gearydale, in Pleasant Hill close to as well as any I have ever lived in. How is that? Because I have walked it thoroughly, in preparation to listing a home in that neighborhood. I know what people think of their neighbors, which is really interesting. My perception of said neighbors is not necessarily the same as theirs. They call one lady "the witch". My perception is that she is someone who was raised in a very formal environment, and has not chosen to change with the times. When I invited her to my seller's open house, she said she was "otherwise engaged". You have to be pretty old to have heard that term used on a regular basis. Most people would think it was snooty of her to say that. But my grandmother would have said the same thing, meaning nothing snooty at all. She was just raised to speak that way.
I learned other things about the neighborhood that will be helpful to new buyers. I met many people who they will want to meet as well. In a way, I think the party we had for my seller's neighbors brought all the neighbors closer together. I am hoping that when we are close to closing on the house that we can have a second party so my seller can say goodbye, and the new owners can meet all the neighbors. I have no question that people would come back a second time, especially those who took home leftovers, lol! And who gets to meet their neighbors all at once anymore?
About 4 months ago I started walking a neighborhood in Vallejo's Hiddenbrooke at the request of a buyer that was an internet lead from my company. I had no personal knowledge of him prior. But he believed himself to be interested in a particular floor plan. So I went to all of the homes with that floor plan. There was one that was vacant. A few weeks later, it came on the market as a short sale, and I took my buyer to see it. He didn't like that floor plan after all...
SoIi started knocking on the doors of any house on the street because he wanted that street. I met another neighbor who wants to sell. But before I could connect them together, another neighbor I had not yet met found him on their own, and he is buying their house instead. shucks.
While he and I didn't end up working together, he did motivate me to reacquaint myself with a neighborhood in which in which I have made several offers in the past. It was nice being able to tell a current home owner that the reason his front entry floor was not damaged from the broken front door window (still unrepaired!), was because I cleaned up the glass before it got ground in, thinking that it was going to be my buyer's home. The seller rejected our offer for the type of loan it required, but ended up selling it for far less than we had offered. I think I earned a place in the new owner's heart, lol!
Since I started walking the neighborhood, I have grown to know the different floor plans by name, and have found 3 other homeowners thinking of selling. I have met some really nice people. I am waiting for the one who will let me get theirs listed and then I will invite all the neighbors to their listing party...
I started walking a local neighborhood to me as the result of another internet lead. I thought the subject property was a different one than it was. I ended up approaching the correct owner without realizing that he was the lead. He was REALLY rude to me. In all the doors I have ever knocked on, he was the only one who was rude. Even a little bit. He lives there with his mom and I guess he cares for her. She was the one who made the internet inquiry. Maybe he was just stressed from the responsibility. In meeting several other neighbors on that walk, many commented that all the neighbors were nice, except that one guy. So maybe I dodged a bullet.
Of course I know the neighborhood in which I grew up, in Albany, CA. In fact, I know the whole city very well as many of my friends still live there. I know the neighborhood I live in now. I know much of San Mateo as well, having raised my two children there. Same with the Parkmead area of Hayward. I lived there for 8 years. Twice a week I walked the whole neighborhood. You get to know a lot of neighbors that way! Now I am selling my home there and reacquainting myself with them after several years away.
Now I also know Gearydale, in Pleasant Hill close to as well as any I have ever lived in. How is that? Because I have walked it thoroughly, in preparation to listing a home in that neighborhood. I know what people think of their neighbors, which is really interesting. My perception of said neighbors is not necessarily the same as theirs. They call one lady "the witch". My perception is that she is someone who was raised in a very formal environment, and has not chosen to change with the times. When I invited her to my seller's open house, she said she was "otherwise engaged". You have to be pretty old to have heard that term used on a regular basis. Most people would think it was snooty of her to say that. But my grandmother would have said the same thing, meaning nothing snooty at all. She was just raised to speak that way.
I learned other things about the neighborhood that will be helpful to new buyers. I met many people who they will want to meet as well. In a way, I think the party we had for my seller's neighbors brought all the neighbors closer together. I am hoping that when we are close to closing on the house that we can have a second party so my seller can say goodbye, and the new owners can meet all the neighbors. I have no question that people would come back a second time, especially those who took home leftovers, lol! And who gets to meet their neighbors all at once anymore?
About 4 months ago I started walking a neighborhood in Vallejo's Hiddenbrooke at the request of a buyer that was an internet lead from my company. I had no personal knowledge of him prior. But he believed himself to be interested in a particular floor plan. So I went to all of the homes with that floor plan. There was one that was vacant. A few weeks later, it came on the market as a short sale, and I took my buyer to see it. He didn't like that floor plan after all...
SoIi started knocking on the doors of any house on the street because he wanted that street. I met another neighbor who wants to sell. But before I could connect them together, another neighbor I had not yet met found him on their own, and he is buying their house instead. shucks.
While he and I didn't end up working together, he did motivate me to reacquaint myself with a neighborhood in which in which I have made several offers in the past. It was nice being able to tell a current home owner that the reason his front entry floor was not damaged from the broken front door window (still unrepaired!), was because I cleaned up the glass before it got ground in, thinking that it was going to be my buyer's home. The seller rejected our offer for the type of loan it required, but ended up selling it for far less than we had offered. I think I earned a place in the new owner's heart, lol!
Since I started walking the neighborhood, I have grown to know the different floor plans by name, and have found 3 other homeowners thinking of selling. I have met some really nice people. I am waiting for the one who will let me get theirs listed and then I will invite all the neighbors to their listing party...
I started walking a local neighborhood to me as the result of another internet lead. I thought the subject property was a different one than it was. I ended up approaching the correct owner without realizing that he was the lead. He was REALLY rude to me. In all the doors I have ever knocked on, he was the only one who was rude. Even a little bit. He lives there with his mom and I guess he cares for her. She was the one who made the internet inquiry. Maybe he was just stressed from the responsibility. In meeting several other neighbors on that walk, many commented that all the neighbors were nice, except that one guy. So maybe I dodged a bullet.
Wednesday, July 6, 2011
Pricing Your Home Properly is Part of Being a Good Neighbor
Before iI was an agent, I inherited partial ownership of a beautiful home in the El Cerrito hills. I would have loved to have moved in and raised my children there, but their dad was not interested in commutes that involved bridges. Because we didn't move in, i learned first hand one of the most important lessons anyone involved in real estate needs to discover - whether as an agent or a seller. Unfortunately, I was educated at a cost not only to myself, but to my neighbors as well.
My co-owners and I were not up on supply and demand economics, and in our lifetimes, real estate had only generally gone up. We also only had personally experienced selling of our homes in rising markets. Unfortunately, we chose to sell this lovely house at the bottom of the 90's market. The house had been worth much more in the past than it was at the time we went to sell, and we didn't believe the agent who had the misfortune of representing us when she gave us her opinion of value. We wanted to list at $425,000 and she wanted to list at $385,000. We listed at $420,000. Nine months, and a new agent later, we sold at $335,000. The appraisal came in at $385,000. We lost the $60,000 we might have had, if the correct price had been agreed upon at listing (translation: if we had listened to the agent). We cost our agent a hundred hours of her time, as well as her marketing expenses. Now, as an agent myself, I feel badly about wasting her time. The neighborhood also paid a price in the lowering of the value of their homes in the process.
So when your agent encourages pricing at a certain place, it might be good to consider that suggestion even if you don't like it. Our agent was foolish to allow us to set the price. She should have walked away when we would not listen to her. I have been that same agent, and when I have allowed sellers to set the price, I have invested far more energy in the sales process than I would have, had I held my ground or walked away. When I encounter this in my practice, it is smarter for me to find a different seller who trusts me enough to choose the proper price.
Off the other side, one can also price too low. A house on one street in a neighborhood in which I work, closed last week for $425,000. I felt that this was a damaging price for the neighborhood, because other recent comparable homes had sold for around $465,000. A lower sales commission was part of why it was discounted, because while an agent did do the paperwork, it was really a FSBO. Only because I was very familiar with the buyer's senario did I have this information. A few days ago, some sellers on the same street offered their slightly smaller house for $300,000. Why? It's a short sale and they don't care what it sells for. Tthey have no consequences beyond a spank to their credit, for a decade of using the home as an ATM. (tax records show the many times they refinanced over the years.) But it is devastating to the rest of their neighborhood, for them to offer their home $100,000 or more below comps. It probably won't close at that price, but it messes up anyone else considering selling in the neighborhood.
I have a listing on a house purchased a few years back and have had it priced at an appropriate amount for short sale. It is tenant occupied, and does not show well. While we wait for the tenants to move out, four offers have come in, and several other buyers have wanted me to write offers on their behalf. All of these were significantly under asking. It would not be fair to the neighbors to sell it at the lower price, even though it might be possible. The owners are not being pressured to sell and are willing to wait until the house can be marketed more fairly.
In my opinion, in a declining market, the best price to list is about 5% below value, to generate traffic and create competition. in a rising market, pricing over current comps only adds to the frenzy. You can do that, for your own short term gain, but now we have seen the international cost of feeding the frenzy.
Sellers, when you set your price, please try to remember it is not completely about you! Setting too high a price will most assuredly cost you money in the long run. It is also unfair to the professionals you ask to represent you. However, setting too low a price hurts the people you will leave behind, and all of us in the long run.
In the end, you don't do surgery on yourself: you ask a doctor. Don't try to value your own home. Ask your Realtor® to price your home, and everyone wins.
My co-owners and I were not up on supply and demand economics, and in our lifetimes, real estate had only generally gone up. We also only had personally experienced selling of our homes in rising markets. Unfortunately, we chose to sell this lovely house at the bottom of the 90's market. The house had been worth much more in the past than it was at the time we went to sell, and we didn't believe the agent who had the misfortune of representing us when she gave us her opinion of value. We wanted to list at $425,000 and she wanted to list at $385,000. We listed at $420,000. Nine months, and a new agent later, we sold at $335,000. The appraisal came in at $385,000. We lost the $60,000 we might have had, if the correct price had been agreed upon at listing (translation: if we had listened to the agent). We cost our agent a hundred hours of her time, as well as her marketing expenses. Now, as an agent myself, I feel badly about wasting her time. The neighborhood also paid a price in the lowering of the value of their homes in the process.
So when your agent encourages pricing at a certain place, it might be good to consider that suggestion even if you don't like it. Our agent was foolish to allow us to set the price. She should have walked away when we would not listen to her. I have been that same agent, and when I have allowed sellers to set the price, I have invested far more energy in the sales process than I would have, had I held my ground or walked away. When I encounter this in my practice, it is smarter for me to find a different seller who trusts me enough to choose the proper price.
Off the other side, one can also price too low. A house on one street in a neighborhood in which I work, closed last week for $425,000. I felt that this was a damaging price for the neighborhood, because other recent comparable homes had sold for around $465,000. A lower sales commission was part of why it was discounted, because while an agent did do the paperwork, it was really a FSBO. Only because I was very familiar with the buyer's senario did I have this information. A few days ago, some sellers on the same street offered their slightly smaller house for $300,000. Why? It's a short sale and they don't care what it sells for. Tthey have no consequences beyond a spank to their credit, for a decade of using the home as an ATM. (tax records show the many times they refinanced over the years.) But it is devastating to the rest of their neighborhood, for them to offer their home $100,000 or more below comps. It probably won't close at that price, but it messes up anyone else considering selling in the neighborhood.
I have a listing on a house purchased a few years back and have had it priced at an appropriate amount for short sale. It is tenant occupied, and does not show well. While we wait for the tenants to move out, four offers have come in, and several other buyers have wanted me to write offers on their behalf. All of these were significantly under asking. It would not be fair to the neighbors to sell it at the lower price, even though it might be possible. The owners are not being pressured to sell and are willing to wait until the house can be marketed more fairly.
In my opinion, in a declining market, the best price to list is about 5% below value, to generate traffic and create competition. in a rising market, pricing over current comps only adds to the frenzy. You can do that, for your own short term gain, but now we have seen the international cost of feeding the frenzy.
Sellers, when you set your price, please try to remember it is not completely about you! Setting too high a price will most assuredly cost you money in the long run. It is also unfair to the professionals you ask to represent you. However, setting too low a price hurts the people you will leave behind, and all of us in the long run.
In the end, you don't do surgery on yourself: you ask a doctor. Don't try to value your own home. Ask your Realtor® to price your home, and everyone wins.
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