Boycott Companies that Advertise Christmas Before Thanksgiving

Okay, so this has nothing to do with real estate, but I must vent. I have started keeping a list of all retailers I'm boycotting that have started advertising Christmas before Thanksgiving. It's gotten so out of control.

So as not to find myself in a lawsuit, I will not mention the companies, but you know who you are. Of course, at this rate, I will be left shopping at gas stations for Christmas presents, as the list of these retailers is getting quite long.

In a couple years, we will start seeing Christmas stuff in the stores at the Fourth of July. Then ultimately, Christmas stuff will be around all year long just so we don't forget the biggest shopping season and keep the retailers in their profit margins.

Mercury Retrograde's Effect on Real Estate

What the heck is Mercury retrograde and what could it possibly have to do with real estate? A lot!

Mercury Retrograde is when the planet Mercury starts to go in a backward motion. This happens approximately three times a year for a 3 to 4 week period. We are currently in one of these periods and the havoc wreaked is real -- even if you don't believe in astrology. This retrograde started on October 12 and ends November 1. The planet Mercury rules communication and transportation. Therefore, it is not a good time to start anything new, such as a contract, job, etc. It is also a bad time for travel and buying anything expensive, especially electronics.

During this time, real estate transactions will fall out of escrow, communications will break down, and people will have disagreements. If you happen to have homes in contract, be especially diligent about communication with all parties and expect delays.

Despite Mercury Retrograde's negative aspects, there are some positive ones too. This period is a great time to "re" do anything. Reconnect with old friends, redo your closet, restart your workout routine, etc.

For more information on this subject, visit Susan Miller's Astrology Zone website:
http://www.astrologyzone.com/forecasts/mercury.html

Pricing a Home to Sell

In this current market of craziness, the proper pricing of a home has become an insurmountable challenge with Sellers. Our boom market gave home owners a mentality of what their home was worth at the height of the market in 2005 and Sellers just can't get whatever that price was out of their heads. The price of what a home would sell for is easy when looking at the facts, but convincing a Seller of that price is quite difficult.

An article in Inman news by Bernice Ross, which is directed at agents, but is also great advice for home Sellers outlines pricing strategies. See http://www.inman.com/content/story.aspx?ID=64177. The four points the article makes include the following:
1) Price a home below what recent comparable homes sold for to be competitive; no buyer wants to pay more for a home than is necessary
2) Don't try to test the market; test the market and you're just looking at wasted time and a price reduction in the near future
3) When reducing your home price, make a serious price reduction that will make a difference in the potential pool of buyers looking for a home; buyers search for homes based on price ranges, so if your home is listed for $475K and you reduce it to $470K, you haven't added a single new buyer to see your home -- however, if you lower your price to $450K, you just increased your pool of buyers for all those whose price maximum is $450K
4) What's your motivation to sell your home; do you "need" to sell or do you "want" to sell -- the longer your home sits on the market when priced improperly the more money you lose as homes values decline

Overpricing a Home for Negotiating

There is a thought among home sellers that if they price their home a little high, it will leave room to negotiate down. Now while this strategy makes sense on paper, it completely backfires in our current buyer's market. Right now, if a home is priced too high, it's impossible to even get buyers in your home to negotiate.

A properly priced home will get buyers in the door and potential offers coming in. Homes are still selling in this market, obviously. However, what is selling is priced at market or below, in excellent condition or has some other outstanding feature such as location, school district, etc.

If you look at the statistics of homes selling, once a home is properly priced and sells, they majority are selling between 95% and 100%* or more of their asking price. So a seller doesn't necessarily have to come down much from a proper list price.

*A sale price of a home may include seller concessions for closing costs, which brings the actual purchase price down, usually at 3% of the purchase price.

Take a Picture, Sell a Home

With the invention of the Internet, the process of buying a home went from the hands of the Realtor to the hands of the consumer. According the the National Association of Realtors, nearly 80% of homebuyers start their home search on the Internet. The Internet search is where pictures of a home for sale are so important. It's the photos -- and good photos -- that gets a potential buyer in your home.

When I'm researching homes for a buyer, if I come across a listing without pictures or just a single photo of the front of the home, I typically bypass that home for others with multiple pictures that give me a good sense of what that home has to offer. However, sometimes a home's photos do not do the home justice, and sometimes the opposite also occurs.

In our multiple listing service here in Sacramento, we are allowed to post 12 photos of a home. We always post 12 photos. Posting any less than 12 photos is not giving a Seller the full potential of marketing their home to other Realtors as well as the consumer.

So, if we list your home, get ready for your house to say "cheese" and pose for our camera!

For info on taking good property photos visit, http://realestate.msn.com/Selling/Article_wsj.aspx?cp-documentid=5414351

Using Feng Shui to Sell Your Home

In addition to being a Realtor I am also a feng shui consultant. I no longer do consultations, but I do use the practice when applicable in my real estate business.

About three years ago when I was still working in commercial real estate, I did a "Feng Shui for Real Estate" presentation to a group of top producers for a local real estate company. At the time, the market was beyond good and homes were selling in days with multiple offers. Perhaps my presentation wasn't timely, in that my focus was using feng shui to sell homes, which didn't need help. One of the points I made was taking down family photos to help a future homebuyer picture themselves in the house. One agent commented that it wasn't necessary to do this. And yes, at the time it wasn't. However, I cautioned her that the market always changes and when it did she would have some knowledge of feng shui to give her an edge above the competition and help sell her listings based on feng shui. Wonder if that agent is using feng shui today?

Feng shui is finally getting a bit of respect. It was the subject of a Bee news article last week. Feng shui is amazing. It's gotten a bad rap as a new age fad based on religion. It is neither of those. Feng shui is the ancient Chinese art of placement. It's about creating harmony in your environment with your personal material items. When you walk into a home and you just want to get comfy and stay awhile, that home probably is using the fundamentals of feng shui and the owner may not even know it. However, when you walk into a home and you can't wait to leave, the opposite is happening.

There are many excellent books on feng shui, but the best starter book in my opinion is Karen Rauch Carter's book, "Move Your Stuff, Change Your Life." It's a quick read and the author has the best sense humor.

Showing Homes in Uncharted Territory

Every real estate agent at one time or another ends up showing homes in an area they know very little about. Most of the time, it takes just a bit of homework to learn an area well and then be able to help a client make an informed decision about a home and its area.

On Monday and Tuesday of this week I became friendly with an area that wasn't just your normal suburban or city neighborhood, I was up in Placer and El Dorado Counties showing properties that even my GPS couldn't find. When I called one agent to ask about the road leading to a property in Placerville off Mosquito Road, she told me it was a "windy a** road" and she was not kidding. If you've never taken Mosquito Road into Swansboro County, the trip is a must. Many parts of the road go down to one lane, with hair pin turns and a one lane, very narrow bridge.

While the trip in was beyond nerve-wracking, by the time I was heading out, I actually had fun driving that crazy road. I'm not sure I'd like to drive it everyday, but the area is so breathtaking and beautiful out there, I can see why people do.

So, I have now added the foothill county communities of Placer and El Dorado to my repertoire of areas I'm familiar with and happy to tour. Seat belts required.

Good Restaurants in Elk Grove?

I love Elk Grove; however, my main complaint about this city is the lack of good restaurants. This city is a chain restaurant mecca and while I enjoy a consistent meal from city to city, in my own town, I want variety and non-corporate owned restaurants. So with that in mind, here's a list of good restaurants in Elk Grove.

Elk Grove Brewery --- Elk Grove Boulevard
This is one of the city's gems restaurant-wise. The atmosphere is part brewery, part bar, part kid friendly. The food is absolutely delicious and each dish has its own special recipe. A must eat are the garlic fries. You will reek garlic for days, but they are so worth it. And must drinks are the seasonal beers, brewed right on the premises.

Vince's Italian Restaurant --- Elk Grove Florin Road
Walking into Vince's is like walking back in time...red checked table cloths and 1960's decor. You feel like you're at home here. Food is good and simple Italian with some excellent steak choices. Can't beat the price, number or courses or the carafe of house red.

Silva's Sheldon Inn --- Grant Line Road
If you're looking for a nice dinner of upscale dining and quality food and don't feel like driving into Sacramento, this is the place. It's tucked away just far enough on the outskirts of Elk Grove to make you feel like you've left the city.

La Fuente Mexican Restaurant --- E. Stockton Boulevard
Come here for good, authentic Mexican food. Start out with just the best thick tortilla chips and two types of hot salsa. All dishes are the real deal and will keep you full until the next day. Atmosphere is casual and the staff treats you like family.

Cassidy's Family Restaurant --- E. Stockton Boulevard
For a breakfast full of flavor, butter and rib-sticking power, come to Cassidy's. All breakfast favorites are here... biscuits and gravy, corned beef hash, steak and eggs, omelets, pancakes and good coffee.

So if you're thinking of opening a restaurant that is not a national chain, please come to Elk Grove. We need you and I will frequent your business.

If the Price is Too Good, it's a Short Sale

On a weekly, sometimes daily, basis, I will have a client forward me an email listing of a beautiful home with an incredible, way below market value price. I know immediately that it's a short sale. The short sale speech is one I've gotten quite good at, but it still takes a few times of explaining it or actually living it, for it to sink in.

A way below market price on a short sale home is likely not approved by the bank. It's deceptive marketing just to get buyers in the door and offers to the bank. I'm not saying all agents of short sales do this. Many agents actually do price them competitively within market value. I understand where an agent is coming from in pricing a home low and I truly feel sympathetic for the sellers who are in the predicament of a short sale, but it's still unfair to deceive the public.

If a client is brave enough to make an offer on a short sale, then I have to sound like Ms. doom and gloom explaining in realistic terms that they will not hear back from the bank for at least two months. I have clients who have personally experienced this wait and now believe me. One couple who put on offer on a short sale last December, got impatient and are now living in a home they bought in March, and have still not heard back from the bank.

However, I'm now hearing from agents who are doing short sales that supposedly banks are being more cooperative now that their books are getting inundated with foreclosures. I hope that's true. I have another offer on a short sale for a client. We have been waiting since May 15 for an answer. This client really, really wants this house, so we are holding tight. His is the only offer on the house and there is a true hardship for the sellers, so I'm hopeful.

If a client wants to pursue a short sale, I will do everything I can to get them in contract with the bank. But I will do it only after discussing all the necessary pitfalls and patience needed as well as the potential opportunity to get a great deal on a home and save a seller from foreclosure. I will always hope for the latter.

The Excitement of That First Home

I love first-time home buyers. Yes, there is a lot of hand holding, but there is so much satisfaction in my job as a Realtor to help a client buy their first home. It is exciting and scary all at the same time.

I'm currently negotiating a home for a twenty-something newlywed couple who are first-time buyers. They are very stressed out, but also so excited. They were like two kids in a candy store when they realized they had found their first home. They were visualizing where their dining table and computer would go, checking the different angles on the TV while sitting on the couch, and playing with the stereo for its surround sound loudness. And I was getting excited right there with them. You can't help but smile.

I can remember so vividly -- even though it was 8 years ago -- when I bought my first home. The worry over the mortgage payment, the sleepless nights, the nausea, the stress, while at the same time being so excited about finally getting to own a home. To be able to paint walls, put up curtains, plant a garden . . . all without asking a landlord's permission. I'm in my third home now and it's still a thrill, but nothing matches that first home experience.

Pending, Pending, Sold!

A strange thing has happened in my real estate home tours these past two weeks. I will show homes, the clients will like one or more, I check with the agents, and all of a sudden they are pending. This hasn't happened on just one home, but nearly 10 homes from all over the area in cities such as Carmichael, Fair Oaks, Natomas and Elk Grove. It's like there's been a slight change in the market where homes that are priced competitively and in good condition are selling quickly, which is always the case, but more evident recently.

The Buyer's market mentality has some buyers thinking they have plenty of time to act on a good deal of a home, when in reality, the best ones are still selling quick and many with multiple offers by those buyers who do not hesitate to make an offer on a home.

I previewed a dozen homes today for a client, by the time I got back, one of them was already pending. It's weeks likes these that keep us agents even more aware of how dynamic the market is and how important it is to be one step ahead of the market.

The REO Adventure

REO (real estate owned) homes, also known as foreclosures, are an adventure in home showings like no other. When I'm touring or previewing homes that are REO I never know what I'm going to find. Sometimes it's an absolutely beautiful home and other times, well, not so much.

This past week I have toured over 20 REO properties and while I will have to say that agents of these homes are really starting to clean them up, there are still 20% or so that are quite the adventure. When opening the door of an REO, I'm always a little hesitant as to what I will find, what smells I'll encounter and how quickly I will feel the need to take a shower afterward.

For instance, one such property had a dead bird at the back window and ants in the process of having a very nice dinner. Another home, had a pungent unknown smell that made it hard to breathe. While another, had piles and piles of garbage all over the home. I practically ran out of that one. And lastly, another had no windows, flooring or inside walls. While I laughingly joked to my client about finding the lock box, I noticed the sign said "By Appointment Only."

Since the Sacramento area's REO properties are predicted to quadruple by the end of 2007, my adventures will continue...never a dull day in real estate!

What is Your Home Worth?

The ultimate question for homeowners right now is, "What is my home worth?" Websites such as zillow.com are killing our industry with their misleading values of homes. Zillow.com says my home is worth $469,900, but that my neighbors across the street who have the exact same house and a new roof, their home is worth $424,000. The true value of both our homes is closer to $400,000, which is down about 15% since 2005.

A home's worth is based on so many factors, the biggest being what the market will bear, that it is virtually impossible to get an accurate market price on these home value websites. It really takes a true real estate professional, such as an agent or appraiser to give a correct home value. Trying to convince a client that their home is worth a lot less than these home value websites report is quite difficult and makes for an uphill climb in trying to price a client's home accurately for sale. Take these home value sites as a means to a general idea as to the value of your home, but calculate at least at 10-20% difference, either higher or lower, but typically lower.

A Home is an Investment in Your Life, Not a Day Trader Stock

Today in the Sacramento Bee's Business section was an article interviewing three local home builders and their take on the market. One of the interviewees, Christopher Cady, from Pulte Homes mentioned that buying a home is not like trying to beat the stock market, as day traders tend to do.

A home in an investment in your future, your quality of life and a means of providing the best possible shelter within your budget. Many would-be buyers are on the fence waiting for the bottom and no one really knows where or when that bottom is. We only know today, and only you know if it's the right time for you.

"So, how's the market doing?"

On a regular basis, someone will ask me, "So, how's the market doing?" And with all the negative press the housing market has gotten lately, I can see the anticipation of waiting to enjoy in the misery of how bad the market is currently. However, I refuse to wallow in the "this market is so bad" that I hear so many others doing. Instead, I'm taking the glass half full route -- regardless of what the market may look like that day, week or month. If I let myself, even for a moment, feel the full effect of a "bad market," I'm setting myself up for failure. I love my job too much to go there. So, if you ask me, "how's the market doing?" I will respond with, "Great!" And I mean it, because that's how I see it. It's always a good time to buy or sell a home, if it's the right time for you, regardless of market conditions.

An Idea to Blog from My Dream this Morning

While still in that moment of being half-asleep and half-awake, I had the idea to start a real estate blog. And in that moment, three different blog entries came to mind, of which this is not one. I majored in English and had planned to be a New York Times Bestselling novelist, but somewhere along the way stopped writing. So now, I will pick up writing again in this blog to post my thoughts on real estate, a passion as much as writing, and combine the two.