Motivated Seller Or Not?

We’ve all seen those marketing headlines that say “motivated seller.” Then you scan over to the showing instructions that read “shown between 1-5 Monday thru Friday” or you contact the owner and they balk at showings today, but tomorrow might work. I don’t know about you, that’s not my definition of a motivated seller. The other frustrating scenario would be a seller that prices their property above fair market value and then proclaim themselves as motivated. Who’s actually writing these comments? It’s the realtor and they appear more ambitious than the seller. Those two words should never be used unless the seller is truly motivated in every way.When a homeowner chooses to sell their home, they have numerous decisions that need to be made. Pricing is the most important, but other factors rank highly. The ease in which to have your home shown, what amenities will convey with the property, how quickly can you vacate and the possibility of paying some of the buyers closing cost.

Competitive Price: You can’t be motivated and over price your property. Price it correctly from the get go. Motivated seller is a term that should not be used lightly. Don’t insult the intelligence of the buyer by overpricing the property and using motivated anywhere in the comment section. That’s deception and will turn off the buyer and any agent that wants to show the home.

Easily Shown: Home buyers want to view properties at their convenience, not the sellers. When a realtor calls to show, make every effort to accommodate their buyer. Some prospects are from out-of-town and only able to look at homes that day. If you want to get it sold, make it easy to see should be the motto.

Leave Amenities: Don’t lose a buyer over your unwillingness to leave appliances or those curtains in the living room. Buyers expect extras and owners should be amenable to those request.

Moving Quickly: There are more all cash buyers on the market now and they want possession sooner than later. Be prepared to swiftly vacate if you’re fortunate enough to get one of those buyers. You should be preparing to move as soon as the home hits the market. Do not procrastinate.

Closing Cost: it seems farfetched, but buyers will ask for some participation with closing cost. Splitting the title and escrow fees are very common in California. Know that buyers today could request some monetary concessions with other cost. It’s the nature of the beast. If you allow the realtor to use those two words “motivated seller”, make sure you are aware of the power and consequences they carry. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.

What To Expect When Buying A Fixer-Upper

Those home buyers that love properties that need lots of tender loving care and have the time, money, emotional and physical makeup to take on such a project have the potential for instantaneous equity and the pleasure that they participated in the home makeover. If you don’t have all four of these attributes, then a fixer-upper is probably not for you. Buying these type of properties can be fraught with peril. So before you make that leap, make sure you have a sensible idea in what to expect. Most of these type of homes are in older neighborhoods where many properties have already been updated.

Most fixer uppers are being sold in “as is” condition and should be throughly inspected by competent inspectors. The known repairs are obvious, it’s the unknown that these inspections can uncover. Do the math and figure out what you should pay to buy a fixer. Add up the cost to renovate, include labor and materials in your calculations. Then add another ten percent to the equation for any extras or unforseen problems that could arise. Be leery of any property that requires any major overhauls such as structural deficiencies or plumbing/electrical systems that have little effect on raising the value of the property.

There are improvements that can give back more than dollar for dollar value. Using Homes in Davis, California as an example. Adding legitimate usable square footage can cost about $200 a square foot. After completing that addition, the value could be worth $250 a square foot or more. Weigh the cost to value ratio for that neighborhood before adding more space. If your home is one of the largest homes already, it does not make sense to increase the size. Only add the space if you can recoup the value in the future. If your handy with the tools, a lot of minor improvements like resurfacing cabinets or painting can minimize the overall cost.

If you’re hiring others to make improvements, take the time to interview at least three licensed contractors and get bids. remember this is a marathon not a sprint. The time spent upfront can save you money in the long run. Buying a fixer-upper is not for the faint hearted, but the end results could be pleasurable and profitable. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks at Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Bankers Dozen Pleads Not Guilty In Bank Protest

The US Bank protesters on the UC Davis campus appeared at the Yolo County Superior Court accompanied by five attorneys for their highly publicized court appearance. As expected, they pleaded not guilty to misdemeanor charges brought on by the barricade of a local bank. The now famous Bankers Dozen, 11 UC Davis students and one professor will likely receive a July court date that should give the locals plenty of drama for such a minor offense. One of the five attorneys representing the dozen is legendary San Francisco defense attorney Tony Serra, whose past clients include Barry Bonds. Serra is representing one protester that has been charged with vandalism of over $400, which carries a maximum of three years in prison.

Each protester faces 20 counts of obstructing movement on a street and one count each of conspiracy to commit a misdemeanor. If convicted on all counts, they could face a year and a half in jail and ordered to pay $1 million to compensate US Bank for its losses  The likelihood the protesters will receive the stiffest penalties are low at best. Eighty hours of community service has been offered by the Yolo county assistant chief deputy district attorney. This proposal was soundly rejected by the defendants. A spokesman for the protesters said they would have rejected any deal based on the wrongful attempt to prosecute political speech on campus.

These charges would not have been filed if campus police had not received multiple complaints from students and faculty claiming they had been prevented from entering the campus US Bank. The siege continued despite numerous attempts by campus staff to intervene and educate the Bankers Dozen about the risk and potential harm these protesters were causing with their actions. The blockade began on January 2nd fingering the privatization of the university and corporate greed. After two months of daily disturbances, plus loss of business and repeated complaints that UCD was ignoring the problem, US Bank decided to end their 10 year deal and close their doors. More than 5000 people have signed a petition at ://davisdozen.org asking that the charges be dropped. Faculty members have also urged UCD to do the same. More than likely charges will eventually be dropped, rather than make a court spectacle over such a minor transgression. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Housing Recovery In Full Bloom

Two different USA Today articles came out this week and confirmed what the real estate industry has been saying since the beginning of the year. The headings read “Forecast sees annual 4% rise in home prices” and the other stated “Mortgage rates sink to a new low”. Nationwide home prices are down by a third since 2006, but should rise by 4% a year for the next five years, this according to a new forecast by market watcher Fiserv. The positive signs in the housing market has gotten the attention of news outlets locally and nationwide. This is a complete reversal from the last few years where we had daily negative reports regarding the housing downturn.

Investors have been the driving force behind the resurgence. First-time and move-up buyers have decided to join in the brouhaha as mortgage rates have steadily dropped since the middle of 2011. Home affordability and declining inventory has also had a positive affect on the market. The areas hardest hit by foreclosures will experience the largest increase in appreciation. Six of the ten markets where prices are expected to increase most over the next five years are locations that have had at least 50% depreciation from their peaks. Areas like Phoenix, Arizona and Miami, Florida are two of the biggest beneficiaries with asking prices up by more than 20% and inventories are down by 40%.

Mortgage loan rates have plunged to new sixty year lows standing at 3.84% for the week of May 7th. Existing home sales were up 5.2% in March from a year ago. Healthy demand and tighter inventories sparked a 2% increase in home prices nationwide for the months of February through April. 92 of the top 100 largest metro areas showed increases during the three-month period. The three factors that have stimulated the market are the limited number of properties available, high demand from prospective home buyers and low mortgage rates.

Despite the latest drop in rates, Freddie Mac expects 30 year-fixed-rate loans to rise later this year to 4.25% or even 4.50%. That’s assuming the economy continues showing improvement. Guy Cecala from Inside Mortgage Finance stated “Consumers shouldn’t hold out for lower rates, we’re near the lowest you’ll ever see.” All of these positive signs will be predicated on what happens during the Spring and Summer months. Stay tuned. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Making An Offer That Assures Acceptance

There are stories in neighborhoods throughout the country of the same buyer making numerous offers on homes and losing out to a higher or more attractive bid. This buying frenzy varies depending on location. I just had a buyer make an offer on a studio in San Francisco and went 3% above asking price. There were an astounding 30 offers on this fixer-upper and we were nowhere in the ballpark. it’s all relative and most properties will not have this type of hysteria. Every buyer has to have some emotional attachment to a home before making an offer, but the logical side realizes there is a bottom line or limit on what they will pay for any home.

Every situation is different and home buyers have to be in tune with the flow of that particular housing market. Whether the market is depressed or properties are promptly moving, serious buyers have to be conscious of those conditions. If homes in specific neighborhoods are receiving multiple offers, then buyers have to grasp reality and understand that even a full price proposal might not produce results. If a home has been on the market for a prolonged period, prospects can make the assumption there might be some room to negotiate price and terms.

When many prospects are attracted to the same home, motivation will decide which buyer purchases that property. The majority of buyers will not blindly offer a price drastically above the sellers asking price. What strategies can work that favor the buyer in negotiations on a property with multiple offers involved? The buyers realtor should find out as much about the sellers wants and desires as possible. These answers will assist the buyer in making a proposal that is more seller friendly. The price is vital, but occasionally not the most important criteria.

Homeowners that are purchasing another property and needs a swift close, will consider that point above price. Buyers are rightly protected by a number of contingencies in the purchase contract. Prospects can remove some of those contingencies that would make their offer more appealing. Sometimes it’s the small issues that can make a difference, two identical proposals and one is offering a larger deposit might sway a seller. Making an offer that assures acceptance should be the goal of every buyer, especially in this climate with adjusted prices and bargain basement mortgage rates. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Davis Teachers Deserve Pay Raise, Not A Pay Cut

The teaching profession has long been known as the one of the most under-paid lines of work in America. The tenured professors are not part of the salary deprived, we’re talking about the elementary through high school teachers. As arduous contract negotiations goes on between the local school district and teachers over a proposed 5.5% pay cut, this very well could affect more than just these two combatants. It’s unconscionable for anyone to expect our teachers to take a pay cut and take on more responsibility at the same time. There are many entities getting paid by tax dollars that deserve a cut in pay, hard-working teachers do not fall in that category.

Our local teachers are getting a double whammy, an increase in classroom size and the insulting pay cut. Davis schools are one of the main attractions for families that are relocating to our wonderful community. The likelihood many resident teachers will have to move outside of Davis because of the high cost of living is not acceptable. The reduction of salary and the increased classroom size will have a negative affect on the quality of education. One Willett Elementary teacher called for a freeze on spending and a suggested 1% salary reduction for all district employees. This is a much more reasonable alternative.

Trustees approved final layoff notices for teachers and other staffers who had received preliminary layoff notices in March. Those lost jobs will reduce the district’s 3.5 million budget deficit about 2.5 million. The reductions will also include the additional increase in classroom capacity. The State of California has had decades of unimaginable waste and this continues today. Our teachers and students should not be casualties in the states mismanagement. There are other departments in this state that can be abolished to cut the huge deficit, our youth and teachers had nothing to do with the ineptness that runs our state. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.

Where Will Home Values Be In Five Years

It’s human nature to be curious with what the future holds. Most folks would like to gaze into their crystal ball and tell what’s forthcoming. One thing is for sure when it comes to forecasting the future of real estate, we do not want the next five years to be a repeat of the last five years. Just like most commodities, real estate is cyclical, the difference being housing has a longer infallible cycle. The last five years have seen depressed home prices, lost jobs, an endless supply of foreclosure properties and enumerable short sales. Just like a patient after surgery, we are now heading into a recovery phase.

There are many different elements that will determine how quickly we completely recover. The downturn did not happen overnight and neither will the recovery. Home buyers confidence level is certainly peaking, but that could change swiftly, if mortgage rates drastically increase. Jobs are vital to the housing recuperation and a man without a job is a man without a home. A full-fledge conversion won’t happen until the steady stream of foreclosures subside. Short sales has had a devastating effect on home prices. The majority of short sales are under-priced and would probably have more value if they were being sold under traditional circumstances.

With most communities now seeing some light at the end of the tunnel, the pendulum has swung back toward market stability. There are steps in place that will assure we never go back to those dark days that encompassed the real estate industry. Lenders have a more rigid protocol than in years past, appraisers are actually doing more than driving by a property and instantly accessing value. Buyers for the most part are willing to pay a fair price for a home, but not a penny more. Realtors are doing their part by educating homeowners on the adverse effects of over pricing their property and steering home buyers away from those market dragging over priced listings.

Based on the past and the present, the future looks favorable. We should start experiencing some appreciation in the next couple of years and in five years the overall housing recovery should be in full bloom. Ultimately the economy will decide how quickly the housing sector recovers. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.