A Hoarder House?

Yesterday I showed a house in El Cajon to some clients and while it wouldn't be featured on the TV show "Hoarders" it was close!  There was stuff everywhere.  Every horizontal surface was covered with stacks of items.  Only the center of the floor was visible.  The furniture was large and I do not think I have seen so many bookshelves in one place outside of the library!  Closet doors would not close and I was seriously afraid to open any cabinet for fear of what would tumble out at us.  Every room was like this.  As you can imagine with all this stuff the place did not smell airy.  It smelled of dust, dirty clothes and random old food.  This my friends is not the way to get your home sold!

I have heard the rants and justifications from sellers before.  "Well, the buyer will just need to look past it".  Um how?  You can't see any walls, floor or counters!  "My home has the lived in feel, I don't like a prim and stuffy feel."  The air is so stuffy I can't breathe!  "I don't have time to organize."  How are you going to move it all when we close escrow?  "The carpet is new and will clean up nice".  It is thread bare along the only accessible path.  "We never use the fireplace so the bookcase in front is better"  How will a buyer know the house has a fireplace?

If you are trying to sell your home you have to be realistic!  The buyers who come to view a home want to be able to visualize themselves in the space.  They cannot do this if there is hardly space for them in the room.  The existing items are a distraction and become overwhelming to the buyers.  When they see a messy and cluttered home you are NOT creating excitement or something that makes the buyers feel this is a move up to a better life.  On the contrary it is depressing and who wants to live in a place that makes you feel like that?

When a buyer sees a dirty and cluttered space it tells them that the seller doesn't take care of their things and doesn't care.  The buyer often thinks that this applies to the house as well.  If someone can't sort through the years worth of mail or clean the dishes why would they assume that leaks are fixed quickly and regular maintenance done?  By having a cluttered, messy home you are putting negative thoughts into the buyer's mind about the property.  This is not a good thing.

One of the big things buyers want is space, usually the more the better.  By having a cluttered mess the buyers see that the place is too small.  Having closets over stuffed they assume there is not enough storage in the home.  It is imperative that you get rid of items to open up the home and give a positive impression rather than a negative one.  Get rid of the items in front of the windows, open the drapes, let the light shine in and allow the buyers to see that the house has windows and light!

I know it can be hard and overwhelming to pack up a home that you have lived in for a long time.  I know, I just did it a couple of years ago.  But if you are selling your home you are going to have to move so why not get a jump on the process and get better offers to negotiate?  Not to mention if you start clearing out the junk you will have less to move in the end and if you are paying a mover the less you move the less it will cost you!  You do not have to do it all in one day, start with one room or even one closet.  Decide what you are taking with you, what you will donate and what is trash.  Yes, I said it trash!  Another hint would be to start using your reserves and not buying more.  Really, do you want to move 49 cans of green beans and 14 cases of toilet paper?  No more Costco runs! 

Start before you put the home on the market and have a neat, organized home for the buyers to view.  Continue the process as the home sells.  You will be helping your home sell quicker and for more money and when it finally does sell your moving day will be much smoother.  Good luck and happy sorting!

Jamul Real Estate Report - April 2012

It is May and time to take a look at the real estate statistics for the month of April.  Here are the market conditions for Jamul..  I have included the numbers for active listings, pending sales and closed (sold) homes in Jamul.  These numbers are for single family detached homes only.

There are currently only 27 active real estate listings in Jamul.  Ranging from $184,900 for 1 bedroom, 1 bathroom, 640 square feet to $1,299,000 for 6 bedrooms, 5 bathrooms, 5712 square feet.

15 properties are pending, currently in escrow.

9 properties sold (closed escrow) in April.  Ranging from $195,500 for 2 bedrooms, 2 bathrooms, 792 square feet to $520,000 for 4 bedrooms, 4 bathrooms, 3806 square feet.  The average time on the market was 74 days.

How Far Have Home Prices Fallen?

We all know that home prices have fallen dramatically over the past few years.  Have you ever asked yourself how much?  I have pulled some of the current listings in Rancho San Diego and then took a look at what they last sold for as a comparison.  Here is what I found...

1 bedroom, 1 bath condo in Rancho Villas is listed for $128,000 today.  In 2005 it sold for $316,500.

3 bedroom, 2.5 bathroom, attached twin home off of Hilton Head is listed for $195,000.  It sold for $440,000 in 2005.

4 bedroom, 2.5 bathroom home on Sawgrass in Corte Madera development is listed for $369,900.  In 2005 is sold for $750,000

When you compare today's prices to prices of the past, it is easy to see why everyone is saying it is a great time to buy.  And remember, interest rates are also at an all time low. 

Get Ready for the Increase in Homes For Sale

With January right around the corner it is time to start preparing to sell your home. While I recommend to my clients not to wait until January, many prefer to list their home after the holidays. The inventory tends to drop in December which makes December a great time to get your home on the market but if you really need to wait until January, you need to make your home is priced competitively, if not aggressively. The prices in San Diego County have come down significantly over the past few years and you want to get as much out of your home as possible. You may be tempted to list at a higher price than comparable properties and reduce the list price as needed. DON"T DO IT.

Most experts agree that the best way to increase the odds of a successful sale is to list your home at fair market value. Do not increase the list price to "leave room for negotiation". The bottom line is that if you list above fair market value, you will have no one to negotiate with! Here's why, when a new listing hits the market real estate agents are going to see it and see if it is a fit for their buyers. If it is listed too high you are immediately labeling your property as "over-priced" in their minds. This is a difficult stigma to overcome. They are going to remember this every time they see your property and are unlikely to suggest it to their buyers. Buyers have become very savvy with the internet. They are able to watch the market months ahead of actually searching for a home. They understand what homes are selling for and will know if your house is overpriced. With the flood of inventory, they are unlikely to consider an overpriced home. Neither the agents nor the buyers are going to want to view your home.

With no showings your listing is going to go cold quickly. The longer it sits on the market the less likely it is to sell. Buyer and agents have the ability to see how long the home has been on the market. When a home is on the market for quite awhile buyers start to think there must be something wrong with it if no one else has put in an offer. This now becomes another obstacle for you to overcome. Your home can start to be used to sell your competition. Agents will share your property listing to a property listed at market value and guess what, the completion just became a deal by comparison.

You are also setting yourself up to tougher negotiations. Buyer's who views your home are more likely to feel like they are doing you a favor by submitting an offer on a home no one else wants. Even if you reduce to a fair market value they will not offer as much since it has been on the market for so long. They will not offer as much as a new comparable property.

While your home languishes on the market over priced you are missing opportunities. Buyer's who would be interested at your home at fair market value are buying other homes. Buyer's who might be interested are not viewing your home if it is out of their price point. All the while prices are continuing to decline and you will be forced to chase the market or stay put. I am assuming you want to sell, otherwise why is your home on the market?

Did you know that even if a buyer is willing to pay over market value for your home they will not be able to unless it is a cash deal. Any purchase that involves the buyer using financing is going to require an appraisal and a lender will not lend more that the appraised value and 99.99% of buyer's will not pay over appraised value.

If you want to sell your home you need to make sure it is listed at fair market value. Make sure you look at the comparable properties that have sold in your neighborhood in the last 30-60 days. That's right 30-60 days. Do not think that since your neighbor sold a year ago you will be able to get that price. Do not think because you have new carpet or paint you will get more. You won't. The only advantage will be you will get showings and offers but not a significantly higher price.

If you are thinking of selling your home, call me. I would be happy to sit down with you and honestly assess what your home will sell for so you can make an informed decision. Do not fall for the unscrupulous agents who tell your home is worth 20% more than the comps. They want your listing and that is all. I want to get your home sold.

Jamul Home For Sale

Brand new listing in Jamul.  Check out this 3 bedroom, 2 bathroom home.  You have to see this updated kitchen.  Horses are allowed and you can ride off the property to miles of trails.  This home is located just minutes from Rancho San Diego.  Call me for more information and to schedule and appointment to view.

2893 Echo Valley, Jamul

Looking For Home For Sale in El Cajon

I am looking for a home for sale in El Cajon, east Spring Valley, or parts of La Mesa.  The buyer is looking for at least 2 bedrooms and 2 full bathrooms.  They would like a minimum of 1000 square feet.  The maximum price range depends on the area and the condition, but under $250,000 would be ideal.  They do not mind an attached home.  If you or any of your friends are thinking of selling such a place, please contact me first.  No worries if it is going to be a short sale, the buyer is willing to wait.  Please share this post with anyone who might be able to help.  Thank you.