Friday, July 13, 2012
Thursday, May 24, 2012
I Don't Want to Make Any Repairs!
Many times I go to a listing appointment and I have to have the dreaded conversation with the seller regarding repairs that should be made before putting the home on the market. It can be anything from small cosmetic changes to major repairs.
I know expensive repairs such as windows, furnace, roof, etc., not everyone can afford to make these repairs. But if these items need to be repaired or replaced, the price must reflect those repairs needed. Nothing screams “DON’T BUY ME” like a 40 year old furnace and a 30 year old roof. I have also heard from sellers that they would rather wait until after the home inspection and see if the buyer wants those items repaired, “why fix it if I don’t have to”. I always felt this is the wrong approach to selling your home. You want your home to show its best and costly needed repairs will turn away a large group of buyers. As a result your home will sit on the market longer and eventually you will have to decrease the price. So in theory, you didn’t want to spend $3,000 on that new furnace, but you have reduced the price of your home since listing it by $10,000.
Don’t be foolish trying to save a few bucks in the end it will probably cost you!!!
As you can imagine, this is not always a favorable topic. I am usually met with two kinds of challenges. It’s hard for sellers to see the value in making cosmetic changes since “they love that color” or “those gold fixtures were expensive (20 years ago)”. But sellers, you must remember once you put your house on the market its not your home any more it’s a product you are selling and the best way to appeal to a wide variety of buyers is to update your home even with something as inexpensive as new paint and a couple of new light fixtures. These relatively inexpensive repairs, if not done can cost you thousands in the end.
I know expensive repairs such as windows, furnace, roof, etc., not everyone can afford to make these repairs. But if these items need to be repaired or replaced, the price must reflect those repairs needed. Nothing screams “DON’T BUY ME” like a 40 year old furnace and a 30 year old roof. I have also heard from sellers that they would rather wait until after the home inspection and see if the buyer wants those items repaired, “why fix it if I don’t have to”. I always felt this is the wrong approach to selling your home. You want your home to show its best and costly needed repairs will turn away a large group of buyers. As a result your home will sit on the market longer and eventually you will have to decrease the price. So in theory, you didn’t want to spend $3,000 on that new furnace, but you have reduced the price of your home since listing it by $10,000.
Don’t be foolish trying to save a few bucks in the end it will probably cost you!!!
Thursday, May 17, 2012
Fun Things To Do in Oakland This Weekend
Looking for something fun to do this weekend? The Oakland Greek Festival is being held on May 18-20 at the visually spectacular Greek Orthodox Cathedral of the Ascension located at 4700 Lincoln Avenue near the Mormon Temple in Oakland. The activity-jammed Festival provides a wide-range of cultural experiences from enjoying Greek music and dancing to trying great authentic food and shopping for fun stuff! This annual Festival is just one of many great things to Love About Oakland! Click on the link above for all the details and more information.
Saturday, May 5, 2012
Newly Listed Bay Farm Contemporary at 1187 Hillery Way, Alameda
Wednesday, April 11, 2012
5 Resons Real Estate Professionals Aren't Dinosaurs
Are real estate professionals going the way of the dodo? A spate of recent commentary suggests that the role of the real estate professional is diminishing. The Wall Street Journal asked, Are real estate agents dinosaurs? VHT.com discussed how listing aggregators have shifted consumer attention away from agents and brokers. And 1000 Watt Consulting predicted that the real estate business will change as the wall between buyer and seller crumbles. All of which leads one to think that real estate professionals may soon be extinct. But we don’t agree. We would argue that you cannot liken a real estate agent to a traditional middleman, such as a bank tellers or travel agent. It’s one thing to ask a consumer to withdraw cash from an ATM, or book a flight to Chicago, without assistance. But it’s quite another to expect a consumer to negotiate and traverse the often-complicated terrain of buying or selling a home without an expert advocate on his side. Let’s take a look at the five reasons we believe disintermediation – that is, cutting out the middleman – is not in the cards for our industry.
1. Comprehensive and complete property information is not available
For a consumer to make the best real estate decision – and the average client makes this decision once every 7 years – he must be able to see and compare all the available properties to determine the best fit, price, and valuation. The multiple listing services (MLSs) list most, but not all, available properties. By contrast, a local, knowledgeable real estate professional is also aware of an inventory of homes that are not currently on the market – “pocket listings,” in industry parlance. Without consulting an agent, the consumer has no way to know about these options.
2. Negotiation is the norm
We are not selling consumables, airline tickets, ball bearings, or books. Real estate requires negotiation — sometimes below list price, sometimes over, and sometimes with off-market homes that are not yet priced. Multiple factors determine that pricing, including replacement costs, exclusive features, speed, urgency, financing, egos, and both parties’ unique motivations. In short, a real estate transaction – even using standard California Association of Realtors forms – is a complex investigation, negotiation, and closing.
3. No two products (properties) are alike
If you cut out the middleman, you’d better be sure that the product you’re purchasing is homogeneous and standardized. But unless you’re talking about a new neighborhood home development of 50 units or more, homes are like snowflakes: no two are identical. They differ in square footage, floor plan, exposure, topography, finish work, price, and, most importantly, the emotional connection of the buyer or seller. A real estate professional’s unique market and product knowledge is priceless in these negotiations.
4. Transactions aren’t simple
Middleman-free transactions tend to be simple, such as a purchase that can be completed with a credit card plus a receipt. Once again, examples would be airline tickets, ball bearings, books, and some standard consumer products. By contrast, a home search and transaction are complex. Even after a deal is ratified it requires the navigation.
5. Decision support requires knowledge and experience
Information, which used to be the province of real estate professionals, has become transparent and easily accessible. Know where to look, and real estate data is at your fingertips. However, information doesn’t equate to knowledge and experience – assets integral for navigating and successfully completing real estate transactions. Access to information is not the attribute that defines a real estate professional. Rather, his or her value is determined by advice, decision support, and recommendations on how to proceed – or not – in a transaction. That experience and knowledge creates value for the client well in excess of any market-based (and often negotiable) fees.
Monday, March 26, 2012
Great Income Property at 1004-1006 59th Street, Oakland, CA.
Monday, March 12, 2012
Think College Now Fundraiser
Please join me for the annual Think College Now fundraiser, Monday, March 19th, 5pm at Monaghan's in Montclair. Supporting Oakland schools is a cause very close to my heart as I am sure it is yours. I look forward to seeing you there!
Saturday, February 4, 2012
Five Insurance Mistakes to Avoid and Still Save Money
Here are 5 great points to start the year off right provided by Adrianne Peixotte of ProInsurance.
1. Insuring a Home for its Real Estate Value Rather Than for the Cost of Rebuilding.
When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings. Raise your deductible. An increase from $1000 to $2500 could save up to 25% on your premium payments.
2. Selecting an Insurance Company by Price Alone.
It's important to choose an insurer with competitive prices, but also one that is financially sound and provides good service. Check the financial health of insurance companies with independant rating agencies and ask friends and family for recommendations. Select an insurance company that will respond to your needs and handle claims fairly and efficiently.
3. Only Purchasing the Legally Required Amount of Liability for Your Car.
In today's litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued--and those costs may be steep. Consider dropping collision and/or comprehensive coverage on older cars worth less than $1000. Insurance industry groups generally recommend a minimum of $250K of bodily injury protection per person and $500K per accident.
4. Dropping Flood Insurance.
Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25% of all flood losses occur in low risk areas. Furthermore with significant snow fall this winter, spring related flooding may be particularly severe, thus increasing the importance of purchasing flood insurance. Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance. Information on flood insurance can be found at www.FloodSmart.gov.
5. Neglecting to Buy Renters Insurance.
A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue. Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.
1. Insuring a Home for its Real Estate Value Rather Than for the Cost of Rebuilding.
When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings. Raise your deductible. An increase from $1000 to $2500 could save up to 25% on your premium payments.
2. Selecting an Insurance Company by Price Alone.
It's important to choose an insurer with competitive prices, but also one that is financially sound and provides good service. Check the financial health of insurance companies with independant rating agencies and ask friends and family for recommendations. Select an insurance company that will respond to your needs and handle claims fairly and efficiently.
3. Only Purchasing the Legally Required Amount of Liability for Your Car.
In today's litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued--and those costs may be steep. Consider dropping collision and/or comprehensive coverage on older cars worth less than $1000. Insurance industry groups generally recommend a minimum of $250K of bodily injury protection per person and $500K per accident.
4. Dropping Flood Insurance.
Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25% of all flood losses occur in low risk areas. Furthermore with significant snow fall this winter, spring related flooding may be particularly severe, thus increasing the importance of purchasing flood insurance. Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance. Information on flood insurance can be found at www.FloodSmart.gov.
5. Neglecting to Buy Renters Insurance.
A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue. Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.
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