Choosing a Listing Price

Picking a Listing Price can be extremely stressful, what you think your home is worth might not be what the Market thinks your home is worth. A Real Estate Agent will give you their expert opinion, but make sure they explain have enough information to back it up.

Dangers of Overpricing

Broker- and buyer-interest is at its highest when a home is first put on the market — and that interest will remain high for about four weeks. But if a property is priced too high during this crucial period, it won’t attract the right buyers. Once that momentum is lost, it’s difficult to recover.

• By overpricing your home, you create the need to reduce the price at a later time in order to compete with the listings that are really in your price range.
• If you’re interviewing several Realtors to choose a listing agent, you may be tempted to pick the sales professional who suggests the highest price for your property. But sellers, like buyers, need to beware. The Realtor who provides the best comparative market analysis and explanation of how your home should be priced will be more likely to sell your home quicker and for a higher price than someone who tells you only what you want to hear.

Look at Comps

Talk to a Realtor and have them find Comparable homes,that are on the market and homes that have recently sold, also known as a Comparative Market Analysis . Your asking price should be within 10 percent of the average sold price in your neighborhood.

Realtors will evaluate three factors: comparing your home to others that have recently sold, others currently listed and adjustments needed for extraordinary improvements.

Although home improvements can increase the value of your property, it is more likely these upgrades will simply help the home to sell faster than the others without similar renovations. This concept is sometimes difficult for sellers to understand. They feel that if they spent a certain amount on a home improvement, they should be able to recoup that cost by tacking it on to the sales price. But unfortunately, that’s not always the case. According to Home Remodeling Magazine, very few home improvements return 100% of the investment, and that percentage of return declines as the years go by.

Upgrades are important, but buyers may not share the owners’ enthusiasm for — nor agree with — the owners’ perceived value of the improvements. And if a buyer doesn’t see the value, then there is no value.

A professional analysis of the market, will take all of this into consideration as well as analyze the price other homes have actually sold for, not just the asking price — there can be a sizable difference. The most common mistake sellers make when pricing their property is to only consider the asking prices of other properties. 

Remember, a list price does not suggest market value of a home. It is simply the “asking price” or “dream sheet” of another seller. Its relevance may, however, be in how you position your home with the others on the market.

Other Factors:

• Time of year -- Ah, spring. Spring is considered the best season to sell a home since families are trying to get situated before the start of the next school year; however, fall is a close second since it comes right after the quiet days of summer when most people are away on vacation. Winter is usually the worst season -- especially in areas where it snows -- but also because of the Thanksgiving, Christmas, and New Year's holidays when people's minds are on socializing, not buying or selling a home.
• Interest rates -- If rates are reasonable, it seems everyone is in the market for a home. But, if interest rates start to climb or they do not seem reasonable, you'll see less action on the street.
• Inventory -- In Economics 101, we were taught the basics of supply and demand. This theory laid the foundation of what drives costs, and so it goes with real estate. If your home is one of 20 in the neighborhood that's for sale, you will have a hard time getting your price since the supply is great and the demand may not be so great. However, if it's a hot market and you have a home in a great neighborhood, chances are you will get your asking price and maybe even more. Scope out the neighborhood to see if inventory is high or low. (And ask a real estate agent.)

California Home Prices Rise From A Year Earlier

California's median home price posted its first year-over-year gain since the fall of 2010 as sales picked up with the end of the traditionally sluggish winter season. The Golden State's median home price in March rose 0.8% from the same month last year to hit $251,000. It was the first year-over-year increase since September 2010; that October, home values sank after the expiration of popular tax credits aimed at boosting the market. Last month's median price rose 5% from February, San Diego real estate firm DataQuick reported Thursday. The year-over-year increase was small, but if prices hold, it could mark the first step toward a recovery. "While the changes we're seeing are incremental, they're incremental in a positive direction," DataQuick President John Walsh said. The bottom of the market was hit during the depths of the financial crisis in April 2009, when the state's median home price was $221,000. The median is the point at which half the homes in the state sold for more and half for less. The median can be influenced by the types of homes selling. The high number of foreclosed homes and other so-called distressed properties remain a sizable weight on the market, and such sales have helped pull down the median price for months. The number of sales increased 2.9% from March 2010 to hit 37,481. That was up 26.5% from February, a normal surge as winter gives way to spring and more people begin moving. Sales of distressed homes — foreclosures and short sales — made up more than half of the market. Of all previously owned homes sold last month, 1 in 3 was a foreclosure and close to 1 in 5 was a short sale, in which a home is sold for less than the debt on the property. In Southern California, the median home price of $280,000 was flat, down just 0.2% from March 2011, and a 5.8% increase from February. The number of sales increased 2.8% year-over-year to 19,953 homes in the six-county region, DataQuick reported. Sales improved the most in Orange, Ventura and San Diego counties. Bay Area home sales notched their best March in five years as prices appeared to level off. Sales rose 9.1% from March 2011, totaling 7,694 across the nine-county region, and up 34.9% from the prior month. The region's median price was $358,000, down 0.6% from the same month a year earlier and up 10.2% from February. The median price improved year-over-year in Napa, Contra Costa, Santa Clara and Sonoma counties. In San Francisco County, it was unchanged. Nationally in March, buyers picked up 2.6% fewer existing homes — pushing the seasonally adjusted annual rate down to 4.48 million from February's 4.6 million, according to the National Assn. of Realtors. In the West, sales were down 7.4% from February and down 0.9% from March 2011. Last month's median price of $198,300 was 1.6% higher than that of a year earlier. NOTE: Article originally written By Alejandro Lazo, Los Angeles Times

Foreclosure bills will get legislative hearings

The Legislature started moving ahead Thursday with bills intended to protect homeowners in the foreclosure process, setting up a potential showdown between the state attorney general and mortgage lenders. Among the changes sought by Attorney General Kamala Harris is one that would allow homeowners to challenge foreclosure proceedings in court, a step the state banking association says would reward delinquent borrowers. Harris also wants to write into state law some of the temporary provisions of a nationwide mortgage settlement she helped negotiate with the nation's top five banks in February. They would ban "dual-track foreclosures" by prohibiting lenders from filing notices of default while they also are considering alternatives to foreclosures. Banks also would be prohibited from approving foreclosures without properly reviewing the documentation, a process known as "robo-signing." Over Republicans' objections, the Senate approved an Assembly bill that will be used to create a conference committee to advance the major bills sought by Harris. Seven of the bills in what Harris is calling her Homeowners Bill of Rights package cleared their first committees this week. But the measures most opposed by the lending industry were never considered in either chamber's banking committee because they lacked support from Republicans and business-oriented Democrats. Organizations representing lenders and businesses objected that her bills would expand state law beyond the provisions in the national banking settlement, which will expire in three years. They contend that Harris is seeking to address with permanent legislation problems that lenders say were temporary abuses of the system. Among the other provisions in Harris' bills are requirements that lenders prove to homeowners that they have a right to foreclose on the property before continuing. The state would also create a new Office of Homeowner Protection to aid borrowers. She also proposes to increase borrowers' due process rights. Lenders would have to provide a single point of contact starting on July 1, 2013, for borrowers who want to discuss foreclosures or refinancing. Banking and business groups said in a letter to lawmakers last week that the measures, particularly the provision letting individual borrowers go to court, would slow the state's economic and housing market recovery. What are intended by Harris as homeowner protections would "result in a de facto moratorium on foreclosures," the California Bankers Association said. Harris and her staff declined comment as they left the private office of Senate President Pro Tem Darrell Steinberg shortly after the vote. "What we need is real action for people who aren't thinking about conference committees versus standing committees. They want the state to pass the laws that provide them with real relief and allow them to stay in their homes," Steinberg, D-Sacramento, said in an interview after the Senate's procedural sidestep. "We've had several years of failed attempts to enact these important protections but this year is different because we have the (national bank) settlement," added his spokeswoman, Alicia Trost. Republicans who object to the provisions in the stalled legislation tried without success to block the bill. Sen. Sam Blakeslee, R-San Luis Obispo, vice chairman of the Senate Banking Committee, said the move disempowers moderate Democrats on the banking committees who had sided with Republicans in objecting to Harris' bills. "It really raises serious questions about to what lengths this body will go to jam through legislation," Blakeslee said. NOTE: Article originally written By DON THOMPSON Associated Press

The Best Ways To Begin Your Summer New Home Search

Spring has sprung and you are ready to begin your new home search. Spring is a great time to start looking for a new home in preparation for a summer move. Summer is a great time to buy a home. Let's look at some of the reasons why now is the time to begin planning. 1. Summer is a great time to buy a home because you can see your potential new home in all of its glory. You will be able to see if the lawn is green, if the foliage is alive and in good condition etc. 2. Have a vision of what you want before you begin your house hunting. Think about what local activities your family will require, the proximity to your work, how close the home is to your needs such as groceries, daycare etc. 3. Budget. Get your financial plan together. Can you afford a Home Owners Association fee if you find the perfect home? What about any other related expenses - landscaping, pool services etc? 4. Select a real estate agent. Select a realtor you trust to help you through the entire buying process. 5. Select a mortgage company or financial institution to help you with the pre-approval needs for your new home. Your realtor will be able to recommend some reputable companies based on their daily experience in dealing with mortgage companies. 6. Get a reality check. No matter how much you have to spend, it is unlikely that you will get 100% of everything you want in a home. Select a few "must haves" and let the rest of your wants come as they may. Some people have too many "must haves" and they end up tirelessly searching for that perfect home that just doesn't exist. The same thing goes for your champagne taste and your beer budget. If your realtor has shown you several homes that you want but have sold for more than you can spend, you may need to realize that you have to live within your means. Continuing your search for homes that you cannot afford will only delay the inevitable - finding a suitable home that you can afford! 7. Do your market research. Have your realtor do some market research for the area you are considering. This will help you to focus on what is real. Yes, there are many foreclosures and distressed properties out there but do you really want to go this route - dealing with the banks and their red tape. Then you will have to deal with the contractors once you purchase the home? Let your realtor help you find a home that is suitable for you and your family. 8. Read everything before you sign it or before proceeding with the deal. Read Everything! Enough said. 9. Don't get discouraged. It is normal to make offers on more than one home before you have a seller accept your offer. Don't worry, this is to be expected. 10. Don't let the competition get the better of you. It is not uncommon for buyers to start a bidding war for a home they want. But don't let temptation get the better of you. You do not want to end up spending thousands of dollars over your budget just because you want to "win" the deal. Remember, there are plenty of homes out there and if you miss out on this one there will be others. Guaranteed! Your realtor will help you stay focused. So don't hesitate to talk to them about your wants and needs. Your agent knows the game and will be able to help you get the most for your money without getting into a bidding war.

How To Restore Your Credit Score Quickly

Buying a home is the American dream and you have decided that it is time to start looking into buying a home of your own. That's great! However, you probably know that there are things you should be doing before you begin your search - but where do you start? The first thing you need to get in order, before you do anything else, is to get a copy of your credit reports. That's plural - credit reports.

You need to get a copy of your credit reports from all three credit reporting agencies - Trans Union, Equifax and Experian. If you are thinking about buying a house, you may not realize the importance your credit reports hold in getting an approval for your new home.

 The mortgage companies are more concerned about your recent buying and repayment history than what may have happened years ago. If you have too many recent late payments or collections, there may not be anything you can do to get approved in the immediate future.

 However, there are some things you can do to clean up your report. So in six months to a year or maybe even two years, depending on how bad your credit is and how long it takes you to clean it up, you can apply for a home mortgage and get your approval.

 Here are a few things you can do to restore your credit and credit score quickly:

 1. Check your credit reports for errors. Again , that is plural so check all three of your credit reports for errors. If there are mistakes on your credit reports, you will need to start an investigation with the company or the source of the derogatory information. Contact them in writing and make sure you include all supporting documentation proving the information is in fact an error.

 2. Set up a timely repayment schedule. If you have any accounts that you have been late in paying, you will need to begin paying all of them on time. Paying your bills on time for a minimum of six months will go a long way in improving your credit rating.

 3. Collections. Try to avoid having your accounts turned in to collections. A collection is the most damaging of all credit issues. So work out a re-payment plan before your account turns into a collection. A credit improvement agency may be able to help you get your collections erased; but only if the creditor did not abide by all of the laws of the Fair Credit Reporting Act. However, this is generally not the case because most creditors know the laws and how to follow them. So don't count on this as a quick fix . Most collection accounts will stay on your credit report for a minimum of seven years.

 4. Keep a low balance on all of your revolving credit accounts. Try to keep your balances below 50% of your limit. The lesser the balance the better it looks to potential creditors. 

5. Do some soul searching. Try to determine what caused your credit status to get out of control in the first place. Then do whatever you have to to amend your bad habits - if any.

 6. Get a secured credit card. Secured credit cards can be very helpful in improving your credit. There are many things you can do to get your credit report back on track quickly. So talk to your real estate agent for more information about how you should go about doing this.

 In the meantime, your Realtor will be able to get you started on your path to home ownership while you are working out your credit issues. Your agent has the experience and the know how to help you get into your new home as quickly as possible. So take advantage of all they have to offer you.

National Housing Outlook Brighter

It's been a long time since the market for new homes has looked this good.

Rising rents and a healthier job market are inspiring more people to consider buying.

Builders are responding to the demand by laying plans for more homes this year than at any other point in past 3 years.

And banks are helping both by approving more loans.

All that points to a better year for the housing market, though a full recovery could take several years.

"We're doing so much more business than we have in years," said Ed Kopal, who runs a construction company in East Texas and has seen his business more than double this year compared with 2011.

Others, too, foresee more enthusiasm among buyers after four sluggish years.

Builders requested a seasonally adjusted annual rate of 747,000 permits to build homes in March, the Commerce Department said Tuesday.

The pace hasn't been that high since September 2008.

Of those requested, 462,000 permits were to build single-family homes.

That's 12percent more than just six months ago. Still, the figure remains far below the 800,000 permits a year that signify a stable new-home market.

Builders are seeing more demand for apartments, too. Over the past six months, permits to build apartments have surged 68 percent, to 285,000 permits. A healthy number is closer to 400,000 a year.

Rents are rising, which has spurred construction for both kinds of homes.

In Philadelphia, rents have increased nearly 15 percent over the past year through February, while home values have dropped 5.4 percent, according to real estate website Zillow.

Minneapolis rents are up nearly 10 percent; home prices are down nearly 7 percent. Baltimore has seen rents rise 8.6 percent and home values drop 4 percent.

In Chicago, median rents in the past 12 months have risen 8.6 percent, or more than $100 a month. In the same period, the median home price has fallen 11 percent, to just $154,600.

So while apartment developers are chasing higher rents, renters are seeing more incentive to buy homes.

A survey of homebuilders has shown an increasing amount of foot traffic at open houses across the country since September.

Kennon Reinard and her husband were among those who felt the time was right. The couple has rented a two-bedroom apartment in Chicago for the past six years. Over the past month, they looked at 14 houses before making an offer of nearly $260,000 on a four-bedroom home on the Northwest side of the city.

"We've always wanted a house, but we never thought we could afford one," said Kennon Reinard, 33. "But we started noticing friends buying houses last summer and, when we checked it out, we realized we could own a whole home with a backyard without paying that much more than what we're paying in rent."

NOTE: Article originally written by Derek Kravitz The Associated Press

U.S. Rep. Janice Hahn Tours San Pedro Landslide Area

Laying the groundwork for federal assistance as part of the eventual fix for San Pedro's coastal landslide, U.S. Rep. Janice Hahn took the Los Angeles district commander for the Army Corps of Engineers on a personal tour of the site Monday.

"It's all going to be about resources in the end," Hahn said as she began the tour with Col. R. Mark Toy. They were joined by city District Engineer Lawrence Cuaresma, Los Angeles City Councilman Joe Buscaino, and several members of the community.

"I have a feeling this is going to have a price tag on it whether we rebuild, reroute or close the road," Hahn said.

A survey commissioned by the city is scheduled to be finished and ready in draft form sometime this month, with a public presentation of the findings anticipated around mid- May. That report will have to be analyzed before any plans can be made to shore up the collapsed bluff or rebuild the road. Community sentiment also is expected to play a central role in the decision of whether to rebuild a road.

Toy said that if wave action is found to be partly responsible for the Nov. 20 road collapse, it could qualify for Army Corps assistance under the agency's civil works umbrella that addresses flood management and environmental restoration.

If waves are deemed to have "caused damage to the bluff, it would allow us to consider options such as a sea wall to avoid further erosion," Toy said. It would be up to Congress to authorize and appropriate funding and other assistance from the Army Corps of Engineers.

Engineers continue to closely watch the slide area, with long-term projections for stability very much an unknown. But so far, Cuaresma said no new, significant movement has been detected at the site by surveyors who have 26 monitoring sites set up to measure ground shifts.

This was the second time Toy has visited the landslide site, which remains closed and fenced off to the public. Community opinion appears to be divided on whether the road should be rebuilt, with some local residents in the immediate area saying they'd prefer that the road not reopen. There also is concern that rebuilding the road would likely impact the 102-acre White Point Nature Preserve across the street from the landslide.

Others, however, say the road is a key connector on the south side of town and an important link for residents as well as emergency vehicles as they try to reach the various neighborhoods along San Pedro's south-facing ocean cliffs.

The city report is expected to address possible road options for the site. A decision on whether to reroute and rebuild the road probably won't be made for some time.

"Our No. 1 concern is the stabilization of the bluff, then we will talk about the road," said June Burlingame Smith, president of the Coastal San Pedro Neighborhood Council.

Buscaino said the safety of the residential neighborhoods adjacent to the area remains his main priority. Authorities say no homes are threatened, but one homeowner said he had noticed new, small cracks appearing in the street near his home in recent weeks.

Although Hahn represents most of San Pedro, the landslide area falls within the jurisdiction of U.S. Rep. Dana Rohrabacher, an Orange County Republican who had an aide attend the tour and pledge support

Rep. Janice Hahn toured the Paseo del Mar landslide area on Monday, April 2, 2012, to gather information and determine what federal help may be needed to restore access to the San Pedro site. (Scott Varley/Staff Photographer)
for repairs that will be needed.

"We're doing all the things we can right now to lay the groundwork," Hahn said, adding that no one was prepared for the collapse of the road.

A sinkhole appeared to be forming last summer along the stretch of Paso del Mar between Weymouth and Western avenues, prompting city and county engineers to begin monitoring the area. They closed the road in October when cracks and underground movement appeared to be accelerating at a rapid pace.

The road finally gave way on a rainy Sunday afternoon a month later.

The 45-minute walking tour behind the security fences on Monday provided officials and residents alike with a closer view of the extensive damage, which remains stunning to onlookers. One resident called the scene of sheared-off cliffs, along with broken and suspended chunks of roadway and underground pipes, still "surreal."

"If the study comes out saying we can engage the (help of the) Corps, I wanted Col. Toy to be ready," Hahn said of her decision to tour the site. "I want to make sure we have the best possible endgame."

Once the city's report is finalized, Hahn said, "we'll just have to work through" the process.

"This is so important to this whole region," Hahn said. "This really was a disaster on so many levels."