Today's post is going to be short, maybe not so sweet, but definitely right to the point.  I wrote an article in my August 2010 Newsletter titled "Hardly Worth the Effort."  In this piece I touched on the effort required to deliver quality.

 

I came across this MLS picture today. Others might find it funny.  Not me.  It made me angry for reasons I'll share in a moment.  First, I'll set the table. 

 

We all know that times are tough.  Profits are down, layoffs and cutbacks are up. 

 

Some of our favorite places are no longer in business.  Vacant, empty.   

 

Words like "Recession", "Furlough Friday", "Foreclosure" and "Short Sale" have become part of everyday speak. 

 

In an effort to stay in the black, or in business for that matter, many employers have fired more talented and experienced employees, in favor of less experienced, less talented, less compensated and dare I say, people less interested in doing anything resembling a good job. 

 

Few things are more aggravating than feeling you haven't gotten your money's worth.  And it doesn't matter what you pay for it. 

 

The other day I was at a place I frequent with my 12 year old daughter and was treated rather rudely by an employee who's job title is "ambassador."  I'm guessing his boss would be thrilled with his cheerful demeanor and the goodwill he spread that day. We have other choices where to spend our money, and we'll do so next time. 

 

We expect the best effort from anyone who we pay for their effort.   If we choose a lower fee, we still expect to get what we're promised.  If that means we'll get less bells and whistles, and we know that going in, then it's on us, not the service provider.  

 

Regardless of what commission percent you agree to pay your listing agent to sell your Folsom home, you want, no you expect, their best effort. 

 

Which is why photos like this I come across don't amuse me like they do others.   

 

This real estate agent obviously doesn't care about the job she's doing.  And the seller must not either because he hired her.   

 

There's a reason some Realtors are more successful than others in getting a home sold on time, for the highest price possible, and with a minimum of headache, hassle and delay.  What they charge may be less or it may be more, that's irrelevant to my point.  What's not irrelevant is the quality of their work.   Those of us who have been around for more than a few years know what it takes to deliver what you want and need in these trying times.  That means in some cases, strike that, in pretty much every case, having the hard conversations about price and presentation, going the extra mile to negotiate a contract, and being willing to fill in the gaps others cause by mistake or omission. 

 

It's a strange new world we live in today with 3G and HD, but one thing is constant, less is still less and more is still more. 

NBC news reported tonight that the national housing market continues to struggle with sales of existing homes hitting 15 year lows. Sales of existing homes fell 27% nationally from last month. The hardest hit region of the U.S. was in the Midwest with a drop of 35%. With inventory levels reaching 12.5 months of supply, many home sellers are seeing fewer buyers and longer times on market.

In Folsom sales figures from the same 30 day period mirror those nationally. From June 10 to July 10, the number of sold homes dropped 40%. Locally, Folsom inventory levels jumped 71.49% to 5.5 months of supply meaning that if no new listed homes entered the market it would take nearly 6 months to exhaust our current inventory.

For the complete national story as reported by Brian Williams on NBC nightly news watch the video below.

Visit msnbc.com for breaking news, world news, and news about the economy

Here's a fantastic 3 minute video that will help any Folsom home seller who struggles to keep their home in "show" condition when you have children and toys. For more free tips, tricks, and insider secrets on important elements of the home selling and home buying process, go to our Buyer/Seller Success Tools page and select from our content rich library of articles and reports designed to make and save you money when you buy or sell!

A nicely staged home can do wonders for turning casual lookers into serious buyers. For the seller, it's often a worthy investment. But be careful, a staged home could draw attention away from a home's problems according to the National Association of Exclusive Buyer Agents (NAEBA).

In a recent NAEBA member survey on home staging, 82 percent of the practitioners who responded said that buyers are likely to get distracted from important issues when viewing a staged home. And 51 percent said that staged homes often cover up real defects, including structural damage.

"Staging has taken the residential real estate industry by storm," the report says. "It has been the major focus of television programs and has been a dominant topic in real estate trade publications. However, up to this point, virtually all the shows and articles have been directed toward the seller's benefits." Jon Boyd, NAEBA president and a principal of Home Buyers Agent in Ann Arbor, Mich., says the report aims to make buyers more cautious when they're viewing staged homes.  

"They need to be aware that staging does have a substantial psychological impact," Boyd says. "The person who buys a house once every seven to 10 years can easily be misled. Buyers also need to realize that staging does not impact home values after the home is sold."

However, staging professionals say they're trained to show off a home's assets, not cover up defects. In general, staging aims to help buyers to imagine themselves living in the home. It typically includes removing clutter and personal memorabilia, using neutral colors on walls and floors, and doing a detailed cleaning of the home. Sometimes new furniture or props also will be used to demonstrate how a space might be used.

"Disclosure is the name of the game," says Barb Schwartz, founder of Staged Homes.com "If anything, home staging allows buyers to actually see the property. We would never put a picture over a hole in the wall or a rug over a patch of defective floor," she says, referring to scenarios mentioned in NAEBA's report.

However, Boyd says buyers still need to be on guard. If they get too emotionally attached to how the home looks when it's staged, they can end up overpaying or failing to see potential problems that the seller is attempting to cover up.

"The biggest concern for home buyers is that the staging effects can make a home seem more appealing to the eye," the report says. "Once you own the home, the staging furniture will no longer be there, the cut flowers go away, and often you need to repaint your new home."

The best way to make sure you don't fall victim to falling in love with a home based largely on how great it looks, is to take a step back before you write your offer and play a game I call "devil's advocate."  I get buyers to try and come up with at least three things that are wrong with the house.  Many times this simple yet effective game helps a home buyer see things for what they really are and not what the sellers wants them to see through the looking glass of a perfectly staged home.

 

It's the elephant in the room neither you or your agent want to recognize.  While it's reasonable to assess every possible reason why your home isn't selling, most often the real reason has less to do with marketing, staging, or things you can't control like a unique home layout, backing to a busy street or having one of the few homes in the neighborhood without rear yard landscaping.  

There is one factor you can control: your home price.  These six signs may be telling you it's time to lower your price.

1. You're drawing few lookers - You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it's overpriced and are waiting for the price to fall before viewing it.

2. You're drawing lots of lookers but have no offers- If you've had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your home's been on the market longer than similar homes- Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you're pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers may begin to wonder if there's something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

4. You have a deadline- If you've got to sell soon because of a job transfer or you've already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It's not how much money you need that determines the sale price of your home, it's how much money a buyer is willing to spend.

5. You can't make upgrades- Maybe you're plum out of cash and don't have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn't as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it's time to accept that buyers expect to pay less for a home that doesn't show as well as others.

6. The competition has changed- If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what's still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.

If you're considering selling your home and want to know what it's worth, you should request my free, no-obligation  customized "Pin-Point Price Analysis"  by clicking on my What's My Home Worth tab.

 

Here is this month’s Folsom Homes Report, for sales activity in the Folsom real estate market as reported by Trulia and Metrolist MLS ending the week of July 23, 2010.

The Median Sales Price for homes in Folsom CA for is $359,470. This represents a decrease of 4.8%, or $18,030 compared to July 2009’s median price of $377,500. Sales prices have depreciated 24.9% over the last 5 years in Folsom. There were 23 sales for the month of July, down 69% from the 75 sales in June.

There are currently 75 Pending Sales in Folsom with an average Days on Market of 89 days. There are currently 318 Active Listings in Folsom with an average Days on Market of 118 days. The average listing price for a Folsom home is $407,975 which represents a decline of -2.2% compared to the week ending April 7, 2010 when the average listing price was $417,187.

Average price per square foot for homes in Folsom is $179’, an increase of 2.7% from last month and a decrease of 1.3% compared to the same period last year.

 

One of my least favorite euphuisms is "in a perfect world."

I guess its the pragmatist in me.

In a perfect world everyone would spend less time and money promoting themselves and more time serving their clients needs and interests. 

Walking that tightrope is difficult. 

It's no secret that I send marketing pieces to many of you each month with the hope that when you're ready to sell you'll consider me for the job.  Since I'll never meet the vast majority of you until that day arrives, I have to "market" myself to you.  It's one of the necessary evils.  The vast majority of people I meet tell me they like the information I send and welcome it each month because it contains useful information and they feel like they get to know me a little bit better even though we may never have met. 

Not everyone is so welcoming. 

A few weeks back I was invited into a seller's home.  On the kitchen table was my monthly newsletter. 

When the conversation turned to pricing it was obvious by their body language they had something else in mind.  It was at this point the husband pushed my newsletter in front of me and stated that the information within the Neighborhood Market Update on page 3 gave him a false impression of what his home was worth compared against the appraisal I just provided.   Based on this he said; a) "I publish misinformation", and b) "I do so solely for the purpose of promoting myself to get invited into people's homes."

Well, yes, I do need to promote myself to get the invitation to the party, so on that point I couldn't argue.  How he arrived at the conclusion that a composite of all recent sales in the area was somehow specific enough to render an accurate opinion of value on his home, absent of the detail work I presented him during the listing appointment, is somewhat confusing given his level of education and apparent intellect.  Guess you can't judge a book by its cover.

Not surprisingly he listed with someone else. 

In a perfect world nobody has to self promote. We wouldn't have to listen to the Shamwow guy, Roni Deutch, or be reminded constantly during televised sporting events about "when the moment is right."   In fact, in my perfect world I wouldn't have talk about my 22 years of experience, 1,000+ homes sold, or the fact that this year 81% of my listed homes are beating the market by selling in less than 36 days and at an astounding 99.6% of the asking price.  Nope, all I would I have to do is sit by the phone knowing that any second you'll call me, just because. 

 

California is going to use federal money to assist homeowners whose homes are worth less than their mortgages.  Under this new program run by the California Housing Finance Agency (CHFA), beginning November 1, California will spend $420 million to reduce qualified homeowner's mortgages by up to $50,000.  To give the program more punch lenders will be asked to match the amount.

Here is what we know as of now:

• The program is targeting low- to moderate-income households who earn less than $68,000 a year.
• The program requires that homeowners be owner occupants, the loan must be what's known as a purchase money (defined as the original loan you got when you bought your home).
• Exceptions may be made for people who refinanced to get lower interest rates.
• Borrowers will have to be delinquent or in imminent danger of defaulting, but have adequate income to continue paying after getting the help.
• Qualified applicants will be given up to $15,000 to help catch up with late payments.
• Unemployed participants will receive up to $1,500 a month to pay their mortgage for six months.
• Finally, homeowners will receive up to $5,000 to move when they cannot afford the mortgage under any circumstances.

The emphasis of this new program is to help those people who bought at the height of the market and now have loans that they can no longer afford and, because of falling home prices, a home they can't sell.  Folks who have tapped their equity by refinancing and taking cash out will be out of luck. 

According to CalHFA, it estimates it will help 40,000 or more households avoid foreclosure with principal writedowns and other plans they have in the works. 

With the program qualifications it's doubtful that this program will have much if any impact in our local Folsom real estate market.  More information is available at the Keep Your Home website: http://keepyourhome.calhfa.ca.gov/; or by calling (916) 373-2585.

As we jump into summer many people start to think about the fun they’ll have on the annual family vacation. What follows next for some people is the thought of how much it will cost and how they’re going to find the money to take their trip. Given the downturn in the economy and resulting pay cuts many people have taken, coming up with ways to find or save extra money is always good information, and quite timely given that July 1st is the date that you may file an assessment appeal with the Sacramento County Property Tax Assessor Assessment Appeals Board.

With the significant declines in property values resulting from the market meltdown of the past five years, there hasn’t been much good news out there for property owners. But for those who are willing to do a little paperwork there may be a nice payoff, in the form of a reduction in your annual property tax bill.

Here’s how it works according to the Sacramento County Tax Assessor web site:

Appraisal staff reviews market data and estimates a property’s market value as of January 1st each year and then compares this market value to the property’s current Prop 13 factored base year value.

If the January 1 market value is below factored Prop 13 value, then:

• Assessed value is lowered to market value for next fiscal year.
• Owner is notified of reduced value.
• New tax bill is based on lower value for next fiscal year.
• The following year, Assessor repeats process and enrolls the January 1 market value at that time or Prop 13 factored value, whichever is lower.

If January 1 market value is higher than factored Prop 13 value, then:

• No change in assessed value is made, and
• Owner is notified that value will not be reduced.
• If owner still feels value should be reduced, then owner may file an assessment appeal with the Assessment Appeals Board, from July 2nd - Nov 30th each year.
• Appeals Board hears evidence from owner and Assessor; the Board then determines proper assessed value

To get the ball rolling I suggest you first visit the Sac County Assessor website at www.assessor.saccounty.net.

From the left hand navigation bar select the link for Parcel Viewer - Property Values, Maps & Characteristics. At the bottom of the screen is a “Accept” link for terms and conditions, click on it and you’ll be forwarded to a page where you can enter your address or parcel number and see what your property is currently assessed at. If you feel your assessed value is higher than the current market value of your home then you’ll need to enroll under Proposition 8, (named so because in 1978 a statewide ballot proposition numbered “Prop 8” passed. It amended Prop 13 to recognize declines in value for property tax purposes. The term “Prop 8” has been commonly used to refer to these reductions ever since). To do this you’ll need to provide the Assessor with comparable values from January 1 of the current year you feel justify a reduction in value. If you are successful in getting your assessment lowered don’t expect to get a check in the mail within a week or two. The Assessor’s office is currently experiencing a historically large volume of these reductions. They’re currently running about at about 95 business days for refunds to be processed.

So what’s the bad news in this? Even in the worst market correction since the Great Depression, not all will qualify for a Prop 8 reduction. Under the law the current market value of your home must fall below the Prop 13 factored base year value (assessed value) before the Assessor can recognize the decline. Not all properties will qualify for a reduction. In 2009 nearly 300,000 properties in Sacramento County did not. Even though a property may have suffered a decline in market value - and most have - it can still have an assessed value for (property tax purposes) that is less than its market value as of January 1. If it does, it is not reduced. I ran a check for my home and found that the current assessed value is lower than recent sales of homes similar to mine so I’m not in for any refund which means it’s on to Plan B to fund my summer vacation, more lemonade stands with Emilee.

Here’s short video that speaks to this issue I found on the Today show you might want to watch.

Visit msnbc.com for breaking news, world news, and news about the economy

 

Assuming you own a home and are curious as to its value, then I'm guessing that at some point you pointed and clicked on Zillow.com and used their valuation tool known as a Zestimate. 

If you are a home buyer, you know the Zestimate as the indisputable, final word in a property's value - unless, of course, it seems high to you. Then you completely disregard it.

If you are a home seller looking at things from the other end of the looking glass you're excited when your Zestimate is a big, attractive number, while anything less is discounted quicker than day old lettuce.

As for appraisers and real estate agents, well, Zestimates are something to be tolerated, and not relied upon in pricing a home for sale.  

I liken them to the proverbial broken clock - right a couple of times a day.

But not surprisingly, I continue to get questioned repeatedly by folks at listing appointments, softball games, or while standing in line at the grocery store, about their Zestimate and what I think about it?

So, for all of you who are planning your next big move based on what this online bot tells you your home is worth, here is what Zestimates are (and aren't), direct from the horse's mouth.

From the Zillow web site (and you have to look hard to find it):

A Zestimate home valuation is Zillow's estimated market value. It is not an appraisal. They suggest you use it as a starting point to determine a home's value.

Well, no. I don't use it as a starting point to determine value, nor would I recommend that you do either.  In arriving at their Zestimate they pretty much clump every recent sale of every size and shape into their formulaic computer algorithm to arrive at their Zestimate of value.  

Here are, according the Wizard of Zillow himself Spencer Rascoff, what makes a Zestimate and the factors affecting their accuracy:

· Past sales of the particular property, tax records, and probably a bunch of other stuff I don't know.

· Zestimates are not the midpoint of the "value range." (Don't ask me why.)

· Homes in areas with a lot of comparable, recent sales will enjoy a more accurate valuation, as will homes with more recent prior sales.

· Homes which are unique, which haven't turned over in a long time, or for which the tax records are incomplete (no square footage, wrong data) will have the most flawed Zestimates.

As time goes on, Zestimates will become more accurate.  They have to.  Right now Zillow has a 14% +/- margin of error for the Sacramento area.   Too large to be of use when it really matters, picking the right price to offer your home for sale.

So for now this valuation tool is at best guess, if even a very smart one. Until Zillow's computers are able to join me for a walk-through and see your living room where the tenants have been changing the oil in their Harleys or the master bathroom where the fixtures were imported from the Versaille Palace, the Zestimate will only be more like that proverbial broken clock than a true and reliable picture of what your house is worth.