Dominic Nicoli - Intero Real Estate - Los Altos, CA (Silicon Valley)

When We Sell A Home, Here’s How We Go The Extra Mile, Setting Us Apart From the Rest

2011-09-26T11:24:00.000-07:00

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Realtors sell homes – but we don’t just sell the home, we sell it well. What that means is that after your home is listed, you are receiving the most offers on the block and chances are they are among the highest. How do we do it? Here’s what sets up apart in the very competitive arena of real estate. In fact, here is an example of what we did with a recently listed property; the results are amazing!

Down in the Dumps – But Not For Long

Our team was asked to list a home recently obtained by our clients through an inheritance. Rundown and outdated, the home was badly in need of some work – especially since the owners of this newly acquired property wanted to sell it and sell it fast.

Well, our team got to work. We outlined a plan that would increase the home’s value, make it useful to potential buyers, create updated spaces within the house that would be up to par with today’s standards and get to our bottom line, which was to get the sellers as much money as possible.

The Plan – And Implementation

As much as a necessity this was to our goal, the process was still fairly simple. We decided on the items in the home needing updating and set out to update them. Thousands and thousands of dollars were not pumped into the home in order to sell it rather strategic items were replaced and/or renovated, with budget in mind, so that the home would come up in standard.

Our budget-savvy and results-oriented goal led us to making changes to the floors, cleaning up the house from top to bottom, incorporating some light landscaping and getting the home professionally staged. We also made the effort to have the home inspected so that there would be no surprises come time for any potential buyers to have a home inspection done. All in all, after spending not much more than ten to fifteen thousand dollars, the end result was a home in tip-top condition, with shiny wood floors instead of dingy and old carpeting, inviting curb appeal and a general update overall.

The icing on the cake, of course, was having the house staged to perfection so that buyers could envision their own lives in the attractively decorated and set up home. In fact, there were some issues in the home that were unable to be resolved but were managed effectively as a result of the staging process.

Our Motivation

In our experience, we know that the number one factor in selling a home successfully is to price it effectively. And to be able to set a competitive price, we needed to make sure the house lived up to the standards of other like-kind properties in the area. The other main thing to keep in mind when pricing – something we profusely advise our clients – is to set a price benchmark that allows you to have a competitive edge over other sellers. When buyers perceive a better value, they naturally pursue those properties more aggressively.

Money In the Pocket – All Sides Happy

At the end of the day, the results were outstanding. The property, valued initially at just under $1 million, generated a significant amount of interest. Fourteen offers later, the sellers were looking at a wide range of offers in terms of purchase price. The top offer was $150,000 more than the asking price – $70,000 higher than the next highest offer. The math is simple in this case: A home for under a million dollars + $15,000 or so to rehab and stage the home = $150,000 more than the asking price. It goes without saying that an important part of this equation, like many real estate success stories, is having an agent who can guide you through the possibilities that are out there.
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This is one example of Realtors going the extra mile in making a home sell successfully and we do this everyday with all our clients – going the extra mile, that is. In a market where most are concerned about its challenges, our listed home yielded multiple offers and the sellers ended up with tens of thousands of dollars more than their asking price. What more can you want from the sale of a house?

Amazing Interest Rates, Many Investors and First-Time Buyers – And A Good Time For Long-Term Planning

2011-09-07T11:03:00.000-07:00

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There is no better resource to learn of how the real estate market is doing, than one who is a top-performer in the market. Knowing the ins and outs, understand the people behind transactions, and having valuable insight into the back-end of things as well as the forefront, you can count on getting accurate and useful information from such a resource. For years, Dominic Nicoli has been the go-to person for all the real estate needs of thousands of savvy buyers, sellers, investors and industry people and as part of Intero Real Estate Services his opinion is a valuable one.

Today, Dominic offers some insight as to what has been happening lately in the market, how we can see these trends affected by the stock market fluctuation, a look ahead and more. For a quick run-down on the happenings of the property market these days, this information is perfect. For a detailed, in-depth and customized consultation on how the market can impact your life for the better, meet up with him in person.

More Ups for Buyers On This Roller Coaster Ride Market

How’s the market in general, right now?

It’s a roller coaster ride and we are seeing lots of interesting times. There is a lot of talk about it being a bad market; in fact that is the prevailing view by sellers. However, with the incredibly low interest rates available these days, it is definitely a buyers’ market. When you couple that with housing prices at record lows – the combination is perfect. Inventory continues to go down while sales go up as buyers seize this amazing opportunity.

Stock Market Impact Not Felt Much In Lower Price Point Markets

Has there been much of an impact on the buyers in the market during this volatile stock market activity in the last 30 days?

Volatility in the stock market will impact anyone serious about their finances, however it’s also safe to say that we’ve become used to three to four hundred point swings on a daily basis as normal. Still, owners, potential owners and investors of properties in the upper-end market in the price point range of starting at $2 million, are definitely cautious and it shows in a diminished number of transactions. Despite these ups and downs in both the stock and housing markets, the real estate industry remains healthy.

Recognizing The Right Time To Reduce Your Home’s Selling Price, So It Sells

2011-07-22T13:50:00.000-07:00

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Of course we all want to get the most bang for your buck on the house you may be selling but it’s not that simple. Right now, in the midst of a buyers’ market, sellers have to work very hard to get noticed. And if they slip up in any way whatsoever, they run the risk of losing potential buyers’ interest altogether.

Buyers Have Sharp Eyes And Are More Savvy Than Ever Before

Today, buyers are far more savvy than ever before. They know what the market rates are. They have researched what area homes have recently sold for. They understand the concept of recovering value from a home as it appreciates over time (something that will be a long shot if an overpriced is purchased). And they know there is plenty of inventory. So if they spot an overpriced home, there is a good chance they will simply walk out of your door and into the door of one your neighbors also selling their home.

The single best way to ensure that this doesn’t happen is to price your home accurately from the start. Why waste buyer’s time and build up their hopes, only for them to realize that the property doesn’t stack up against others in the area in terms of median price or value for price?

Understanding the Signs Of Buyer Disinterest Before It’s Too Late

If you have had your home on the market for more than two or three weeks and the number of prospects started low and that continues to dwindle, you need to get back to the drawing board and perhaps reconsider your price.

If you keep seeing new faces and no repeat customers, then you have something to be worried about. Almost immediately, anyone who is interested in your property will be active and proactive. They will show up several times (if not more) and ask a ton of questions. They will regularly check with your agent to learn of any new developments. And they will keep coming back to reexamine the home and envision themselves in it.

Offers should be coming in within a few weeks of having listed the home. While they may not come pouring in, there should definitely be at least several serious contenders. When you don’t see this normal trend occurring with your property listing, it’s time to examine the reasons why fewer follow up visits are taking place.

Disclosure packets are a bustling home-buying activity that goes on a lot but buyers only have them pulled if they are interested. Unless your property has generated a decent amount of hype in that area, once again you should consider this a sign of lack luster buyer interest and you should do something about it.

Let Your Realtor Take The Lead; They Know What They’re Doing

As a resource of information, Realtors are always a welcome connection in terms of dealing with statistics. And it is those very same statistics that will help shape whether your home’s price has been set accurately or if it needs to be readjusted.

Realtors keep informed about new market values, the competition and their trends plus they actively listen to feedback provided by other agents as well as, most importantly, their customers and potential customers’ feedback.

If you find that buyers are coming through and seeing your home only once, your open houses are dwindling or have almost no one coming, plus you are not getting any offers or requests for further information – then it’s time to consult with your Realtor, sit down and make a plan. You can rebound from the damage period and rekindle buyers’ interest with a reevaluation of your property’s selling price.
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Remember, agents want you to get the best of your money but almost always, that is not achieved by overpricing a property only to have it sit there, while other neighborhood properties continue generating interest and getting sold. Pricing is the most important piece of the marketing plan that exists. Without that cornerstone being handled appropriately, transactions will not be seen through on the overpriced properties. It’s up to you to recognize this and make the chance when the time is right.

Moving Out? In Today’s Real Estate Market, Which is Better, Renting or Selling?

2011-07-22T09:31:00.000-07:00

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Contrary to what many experts, news media or analysts may have you believe, market conditions are not as bad as they are portrayed. In some areas inventory is down, prices are up and the general consensus is a positive one, moving up in a positive outlook for the future. But the question does arise when one is moving from a home – whether selling it now or renting it to hold out for a better selling price makes more sense. Here we’ve put together some considerations that will help you discern which is the better choice for you.

Real Estate Is Always a Gamble, Now’s Not Any Different

There is no real way to tell exactly how the market will behave at any given time in the future but currently all trends reasonably point to both options being equally as viable. If you opt to keep your home and rent it out, say for the next couple years or so, then there is a chance that prices will hit rock bottom and then begin to climb up again during that period. However, there is also a chance that prices continue to plunge – in which case you would have been better off selling while a bit ahead of the game.

The main thing to keep in mind here is that even though things go up and down in the short term, real estate is a great long term investment and it’s fair to say that ultimately there will be a gain on your property value.

Buyers’ Market Today, Who Knows What Happens Tomorrow

So many indications of it being a strong buyers’ market these days make it seem that the opportunities on the buying end of things are endless. However anything can change and it can change fairly quickly. Take our current interest rates. Though buyers have been used to seeing such historically low interest rates for some time now, if the government decides to raise the rates it will instantaneously change things. Since buyer’s ability to purchase will be affected in a major way, prices will concurrently come down.

Heavy Foreclosure Inventory Appears to Dominate The Coming Path

Nationwide there are literally millions of foreclosure properties out there that need to go through the system. As foreclosure and short sales flood the market, prices will plummet as a result of these distress sales. In some markets this trend has crept into the upper-end niche of the real estate industry.

Why Renting Can Be Risky

If a homeowner rents out their property and while it is on rent the condition of the property suffers some damage – then they have negatively impacted the value of the home during a time when they had hoped for an increase in value. This is the single biggest gamble when it comes to choosing to rent your home rather than selling it.

Also, there is no way to tell what the condition of the selling market may be when it comes time for you to decide to sell.

Consult With Your Realtor To Assess Your Options

Realtors deal with myriad situations on a regular basis and they also intimately know the statistics of your neighborhood and surrounding areas. By consulting with a trusted and reputable Realtor in your neighborhood, you can gain ample perspective on exactly how your property might fare in today’s market conditions. An informed decision would be made, given the factors at hand so you can be assured that your choice is the best as per your own situation.

Three Essential Things To Keep In Mind When Choosing An Agent To Sell Your Home

2011-06-06T08:15:00.000-07:00

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All real estate agents are not created equal. They may have access to the same systems, the same information and market data, similar industry tools used across the board and universal access to government agencies that house important data that may be relevant in helping you sell your home. So what sets apart the successful ones from the bad apples? It is how they use the things that are at their disposal – that is what makes all the difference.

Now, unless you are completely well versed in the process of home selling and real estate, chances are you may not know all the ins and outs of these tools. So how can you measure the success rate of potential agents you may or may not want to work with? The answer lies in three important metrics that you can easily employ to help you make that decision.

Does The Agent Have a Proven Track Record?

Anyone can tell you they are good. They can even show you a few case studies that support their statement. But the best way to tell whether the performance is up to par is to measure how they do and have done during the good times and the bad. These days, in light of our challenged market of the past several years, it is the perfect time to assess the track record of agents you may be considering. Do they have sales that average one every few months? Is this metric standard for all their years as an agent or reflective of the more recent hard times?

What Is The Agent’s Marketing Strategy?

In real estate, the marketing has traditionally not been as aggressive as other areas of investment. Lately, however, there has been an increase in more aggressive techniques that more often than not lead to success for several reasons. Agents typically adopt passive marketing measures – industry standards – such as MLS listings, conducting open houses, using the Internet for localized promotion as well as word of mouth. However, the newer brand of marketing is active marketing. This entails a “reach out and grab prospects” approach and while it may seem pushy, the results are worth it. The difference between an agent opting for both styles versus just the one, traditional method, can be as significant as landing you a better offer in quicker time with a bigger selling price. The presence of an additional offer on the table raises the stakes, making all these things possible and far more probable than if there was just one offer on the table.

What Does The List of References Look Like?

Of course you will be provided a list of references while shopping for a new agent. And of course the people on that list will have good things to say about the Realtor. But consider this: what agent will give you a list of people that don’t have something nice to say? A good way to approach what could be a gaping hole in this area is to ignore the list provided to you and instead, request a list with names of people the real estate agent is either currently working with or with whom he or she has recently closed a sale. Then, ask the key questions to help guide you whether this is the right agent for you: Are they timely? Is the agent accessible? Do they deliver on the promises they make? What were the results of each case?
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At the end of the day, the goal is that you sell your property and sell it well. Selling it well can translate to a higher price, more efficiently managed procedures, smoother and streamlined process, and an overall quicker turn around time. By following the suggestions in this article, you will be able to discern the best agent in your area to handle your specific needs. Half the battle of selling your home is in choosing the right agent to help you achieve your goal.

The State of the Los Altos Housing Market Today

2011-04-13T13:31:00.000-07:00

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How exactly is Los Altos doing compared with the rest of the country housing market? We’ve heard horror stories of how there is no hope in this bleak economy. But, read on, because I’ve got great news for you!

Compared with the rest of the country, Los Altos is doing incredibly well in this overall rough nationwide housing economy.

Currently we have 64 total homes on the market. That is a relatively low number for this time of the year.
We’ve had 16 properties sell in the last 30 days. In contrast, we had 20 new properties come on the market during the same time period.

These statistics are great news if you are thinking of selling your home or currently have a home on the market. Things are moving quickly and that means a much quicker and more profitable sale for the seller.

Overall, if you look at Santa Clara county as a whole, it has about 4,600 houses on the market right now. That’s a lower number than this time of year.

At the same time, we are seeing 1,600 homes selling each month. This is a very healthy number. There were only about 2,000 homes put on the market last month.

The market is healthy in Los Altos and it’s a great time to buy or sell real estate. Despite the nation’s housing marketing, the one in Santa Clara county’s is thriving.

Huge Selling Success Sometimes Come From the Smallest of Things

2011-03-10T10:16:00.000-08:00

When most people put their home on the market, they expect and hope that it sells fairly quickly. The idea of more than one open house or constant showings can be daunting and also very exhausting, especially when you factor in daily life and the normal busy schedules to contend with. But with a bit of careful planning and some time spent toward setting up the house for sale, there is a tried and true success formula that will ease the burdens of having an unsold home on the market for a long period of time. Here are four basic, manageable things you can do to help the selling process right along.

Add Pizazz With Paint

One of easiest, simplest and least expensive ways to spruce up a home is to coat the walls with some fresh paint. One trip to the home store, a few cans of paint, some brushes and a weekend is all it takes to add a whole lot of extra pizazz and interest to the space. Make sure you pick neutral colors and coordinate with the existing furnishings. While you’re at it, simplify the way you set up the furniture when you put things back – and voila! Buyers will be drawn in to the clean and “new” feel of the place.

Bring in New Carpet

Even though you may not think the carpet needs changing – trust us, it needs changing. For a relatively small investment in livening up the space, changing the carpet by installing a newer style or a better color/texture is one of the best ways to attract buyer attention. Depending on the rooms that have carpeting and the time that it was last changed, you should carefully choose the type and style according to the expected use of the space. Buyers will be very keen on moving their own stuff into the area if they like what they see, including on the floors.

Take a Look at the Outside

A lot of people neglect to consider the first impressions left on potential buyers when it comes to looking at their home. Curb appeal is a very important part of making sure buyers’ experience of visiting your home is an enjoyable and hopefully fruitful one. All it takes is a little bit of time and attention to things like the walkway, existing trees, plants, hedges and flower patches. By taking the time to neaten these areas up and add some interesting elements such as a few strategically placed luminaires or an outside rocking chair with a garden statue, you will create a fabulous overall impression – on all sides.

Make Sure No Stone is Unturned

Imagine walking through a home you are considering buying – and spotting a cracked light switch or a leaking pipe. Things that are not only unsightly but also unappealing can detract a buyer’s interest and potentially cause you to lose a sale. When you are about to put up your house for sale, it is a good idea to walk through the entire house and make a list of all those things that would be an “eye sore” to buyers as they walk through during their “window shopping”. At the end of the day, a few small repairs and a little bit of expense incurred at this stage can make all the difference between selling or not selling your home.

As with a lot of things that we do on a large scale, the little things can often be drowned out and forgotten. When you are in the process of selling your home, these little things will take some extra time and effort but in the long run following through with them will prove beneficial and provide fruitful returns. It’s worth it!

Spring is In the Air for Silicon Valley and the Numbers Are Looking Good

2011-03-09T12:40:00.000-08:00

Spring is looking good for residents of Santa Clara County, Los Altos and Los Altos Hills. With a promising and healthy trend of balanced numbers on the scale of homes for sale vs. homes fresh off the market, there is much to look forward to as we roll into the warmer months of Spring and Summer. Here are the latest stats that show some very good activity on the market.

Santa Clara County

In the last 30 days, we’ve had 2200 homes come on the market and 1815 roll off, either having gone under contract or in pending status awaiting finalization. These numbers show a solid average of about one to one in terms of houses sold versus houses entering the market.

Single-family homes, condominiums and townhomes are showing some strong numbers at the present time, with 4701 properties on the market – a very normal number for this time of year. The number of closings we’ve seen are 949 – which is a fairly good number of closing transactions for this time of year, promising quite a healthy outlook in the near future.

Los Altos

Even stronger than Santa Clara County, Los Altos had a total of 49 properties actively listed for sale, 33 pending sales and 13 properties that closed out last month. While the number of closings is lower than the average figure, pending sales and listings are yielding a very strong 1.5 to 1 average ratio of homes for sale vs. homes that are selling.

The bottom line in this market is that things are moving right along, at or above par, and the trends are pointing up.

Lost Altos Hills

Out of 41 active listings with only 12 pending sales, the ratio of homes listed versus homes selling or sold is a weaker one at almost four to one. The low number of six closings from last month indicates a slower than average trend but then this makes sense given the higher average price of properties in Los Altos Hills.

No matter how you slice it, the overall Spring trend in Silicon Valley looks good. Healthy ratios of homes listed versus homes pending sale make this market a promising one, especially for sellers. By leveraging the low inventory as opposed to high numbers of buyers in the area, homeowners can greatly benefit from the current market trends. The important thing to remember is that regardless of many people’s trepidation about the current market, the outlook is looking up and is looking good!

Market Timing: When is the Best Time to List Your House?

2011-01-21T10:21:00.000-08:00

Should you put your market on the house before the spring rush? Or, is waiting until you have more buyers and interest the best time to list your home for sale? Questions like these look for the best strategies when it comes to real estate market timing. When ultimately is the best time to list your home and get the largest possible profit?

Does History Predict the Future?

Looking back on the real estate trends last year can be beneficial for future forecasting. Based on examining data from the previous year, we get a general idea of whether or not the market will quickly pick up in the coming months.

Currently in Santa Clara county, we have a 1:1 ratio of homes for sale and homes that are selling. This is a great number if you are selling your home. We were at a similar rate at this time last year. By April of 2010, the inventory of homes on the market actually increased by 50%. However, the sales of homes only increased by 25%.

What does this trend from last year mean? When the ratio of homes for sale and homes sold each moth was equal, this was great for a seller! But once spring rolls around and inventory increased, there was greater competition among sellers. Home buyers were at the advantage and buyers were at a slight disadvantage, compared to just a couple of months before.

So Is Today the Best Time to Sell?

The new year just “sprung” and you may be wondering what all this data has to do with your home. If you plan to sell in the next few months, and if last year is any predictor, today is the best time to put your house on the market.

Why? There are fewer homes on the market right now and this gives your home a distinct advantage. It also gives you a much greater probability of selling your home and doing so quickly. Provided interest rates don’t take a nose dive or dramatically skyrocket, right now is a great time to put your home on the market. In fact, today is better than putting it on the market during the upcoming spring rush.

“When is the best time to sell?” is the million dollar question in the real estate market today. If you study the trends of last year and see what our current trends are, they show that today is the best time to sell your home. You should sell it quicker and yield a higher profit in the end. This is great news for home sellers today!

Up and Coming Trends for 2011 – Business As Usual for Most of Us!

2010-12-01T14:36:00.000-08:00

Everyone wants to know what to do next. Should they sell? Is it the right time to finally buy? Hold off on all things till the real estate sun shines brighter? One thing that will help you decide whether or not to buy that dream house with the kidney-shaped, mosaic pool is to know what to expect in the coming New Year. We’ve put together some projected trends for your benefit, based on how things progressed from last year to now.

2009 vs 2010

Looking at property sales figures and comparing them from 2009 to 2010, there is an obvious increase. As much as ten percent or more higher this year, what’s promising is that this is a very normal tendency in a stable market. This year in most typical markets there was an average of 11,000 properties sold as opposed to last year’s 10,000, which means that the relatively normal movement indicates a positive, upward curve.

Higher Median Price Range

Our median prices have gone up about 25% up from what it was in 2009. Contrary to a common misconception, an increase in median price range does not mean that the prices have gone up. In fact, what it really means is that there is a significantly more activity in the higher priced properties; all very promising signs for us.

Fewer Days on Market

The average number of days on market (DOM) for many properties has significantly reduced – as much 40%! Another way of looking at this is that there is an average 40% decrease in time it takes for the usual property to sell. In other words, things are looking up!

Lower Interest Rates Stay Low

We all know they’ve been low for some time, but no one really knows how long they will stay that way. Experts are predicting that they will continue to remain low for at least the next six months, to as long as 24 months, which is great if you’re in the market for a new home. With this promising to carry into 2010, this is also a very good time to get that refinancing done, if you haven’t done so already, and lock in those great rates!

A Few Not-So-Fantastic Trends

Of course, it’s not always a bed of roses and this year’s expected hurdles are mainly centered on a slow (although definitively steady) pace of improvement, slow job growth, and an inclination toward short sales and foreclosures in the more expensive properties ranging from $1.5 million and up.

The bottom line of what to expect for 2011 is a scene of varying markets; each unique to the next, which is why you will benefit from an individual consultation with your real estate agent – to examine the trends in YOUR area.

Generally, based on 2009 versus 2010, we will see “business as usual” but with the advantage of a relatively flat range of prices and the disadvantage of slower than usual job growth. Holding on to the hope that with small incremental growth and little bits of improvement, we expect another year or two to go by as they have been and then things should eventually start smoothing over and working out.

As the New Year Approaches, We Take a Look Ahead at Expected Trends in Real Estate

2010-11-29T07:39:00.000-08:00

There has been a lot of skepticism in the media and market in general about real estate and whether the current recession has hit us so hard that we might take a whole lot longer to recover than we thought. But the truth is that even though there has been a general hesitance for a lot of folks, the actual long term trend has been an upward one. With an increase of sales for the current year, many real estate agents are reporting the same expectation for 2011. A few other trends are also expected in the coming year that will contribute to a continued, albeit gradual, upward trend.

Low-Interest Rate Lock-In

Most people are misinformed about the real estate industry – and in their lack of knowledge will be too quick to just say “the real estate market is at its worst low”. However, when you look at the actual situation, you’ll quickly realize that contrary to that sometimes popular belief, the trends in residential and commercial property sales have been slowly and steadily improving. The great advantage we have going at the time is the fact that the government wants us to get into our own homes, stay in them and maybe even upgrade if it’s the right time for the right family. This means, among other concessions, a continued solid low-interest rate lock-in that will serve you for years, even well after the recession has hit the road.

Smaller, More Serious Buyer Pool

Buyer pools are at a near all-time low, with the situation in the American workplace as it is. Layoffs, downsizing and cost-cutting has changed the mind set of current homeowners once thinking of selling their existing home and upgrading to the next level. So now, when people are putting their homes on the market, especially properties worth $2 million and under, those homes are being picked up like hotcakes in a hot second by the relatively few buyers out there. Making it a somewhat ideal situation for sellers of this group, the current trend is about a 30% increase in sales from the previous year and moving on to the next year the same is expected to continue. While analysts don’t believe it will increase too much more, projected sales definitely mimic this trend.

Predictable Prices Here to Stay

With the economy on a see-saw and some analysts saying we’re in a double-dip recession while other still saying we’re not, one thing is for certain – the prices that we are seeing are here to stay at least for the next 12 to 24 months. That’s not to say that they won’t fluctuate a little, but the general trends have been of stability in prices and we don’t anticipate any major change there for at least a little while. What this means to you is that you can plan reasonably and if buying or selling a home is in your cards, you have the advantage of knowing what to expect. No one in this sort of economy can stand to go into the dark on real estate deals these days and every bit of predictability is paramount.

Things are changing and slowly, but surely, they’re changing for the better! We are shouting out a resounding ‘Hang in there!’ to our clients. Our confidence in the market isn’t going anywhere. Lock in the lowest interest rates we’ve seen in a long time. Seize the opportunity to buy as one of the few that can buy, or sell to those who are holding a pen in hand waiting to sign that check. Know that the future looks up!

By availing the several opportunities that do lie in the current situation, you can come out a winner and own the property of your dreams! Better yet, you can own the property that will allow you and your family to live comfortably, safely and with stability – for a long time to come!

I Want to Price My House Right for the Market. Should I Rely on Zillow.com?

2010-10-26T14:30:00.000-07:00

Should you rely on Zillow.com to price your home for the market? To be upfront about it, the answer to your question is, “Yes” and No.” Here’s why I say “Yes:”

Zillow.com is a wonderful and useful site. To paraphrase the information on their site, it’s one of the “leading online real estate marketplace dedicated to helping home buyers and sellers find and share vital information about homes, real estate, and mortgages…Our goal is to help people make intelligent decisions about their homes - whether it's buying a home, selling, renting, leasing, remodeling or financing - it's all about empowering people with data and information.”

Now, here’s why I say, “No.” The Zillow site doesn’t really know the details of what’s happening in your specific neighborhood because it operates on a mathematical algorithm, not on the real information that you’ll get from a realtor or an appraiser.

So, frankly, on the Zillow web site, your property’s selling price may be too high – or too low! And the wrong price can prevent you from selling your home quickly in a tough market.

From my perspective, you should use Zillow as a starting point to get a general idea of your home’s potential selling price. But, don’t rely on it alone! Definitely talk to someone who knows your town, your neighborhood, and your street. You’ll be a much happier seller if you do!

If you’d like to talk more about Zillow and other online sites, please give me a call today! I’d love to help you out in any way I can.

What is a Real Estate Short Sale? Here are My Frequently Asked Questions...

2010-09-13T10:01:00.000-07:00

Who Qualifies for a Short Sale?

In order to qualify for a short sale, the seller must prove to the bank one or more of the following conditions:

- Loss of job, and difficulty in finding new suitable job
- Job Relocation, when equity is deficient
- High medical expenses due to disability, injury or illness in family
- Divorce
- Unable to afford the loan from the beginning
- House needs unexpected major repairs
- Overextended Credit
- Changing Economy
- Adjustment in mortgage payment due to interest rate or an unforeseen increase in living expenses
- Incidentally, these are also the most common reasons for a foreclosure.

Why Would a Lender Accept a Short Sale?

Why would a lender accept less than they are owed? Simply stated, the alternative is a foreclosure. Just as with the borrower, there are significant consequences to the lender if they foreclose.

- The legal costs of eviction and repossession,
- The loss of loan payments during the foreclosure process until it is re-sold
- A foreclosed house will need work before it can be resold
- After the foreclosure, the bank has two options: Sell it at the courthouse steps, or try to resell in the market.

If they resell in the market, they are penalized by the government by freezing 3-10 times the loan amount so that the lender cannot lend those funds to another borrower.

Will my lender consider a Short Sale if the mortgage is current?

Sometimes, some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent.

What if a property needs work, can I still apply for a Short Sale?

Yes. In fact, lenders are more motivated to do a Short Sale on a property that needs work than on a property that doesn’t. The lender knows the risk of loss goes up when they foreclose on a property that needs lots of work.

What is a Short Sale Packet and What Needs to be in it?

A short sale package it used to determine whether a homeowner can afford the property. Our team will work with you and your realtor to gather the information needed to meet the bank guidelines and streamline the process as efficiently as possible. Below are some of the standard items needed to complete a short sale proposal:

- The Listing Agreement
- Authorization to Release form (to allow agent to discuss with bank)
- Hardship Letter (see “How to Qualify” above)
- Financial Statement
- Seller Net Sheet (a copy of the HUD form with offer)
- Contract (when offer is accepted)
- Buyer’s Proof of Funds (with offer)

I have more than one mortgage on my property . Is that a problem?

No. Subordinate lenders are more flexible than 1st mortgage holders.

What if I have 2 mortgages held by different Lenders?

When you have 2 loans with the same lender, it is more beneficial to them, as there is no need to negotiate
with another lender. When the two loans are with different lenders, the process is a little longer, but the second lender is the one who has more to lose if they don’t reach a settlement. This is because if the property goes to foreclosure, the first loan is the first one to be paid and the second usually nets nothing.

Do I have to be past due on my mortgage to be able to get the benefit of a short sale?

No, but it is likely that the lenders’ guidelines will prevent them from formalizing a short sale if the loan is not past due. This means, for them, that the borrower has the means and can continue to pay on the loan each month. Please understand, however, I AM NOT RECOMMENDING THAT ANYONE STOP PAYING THEIR LOANS. In the current market conditions, it is possible that a bank would accept a short sale, even when the borrower is current.

What is a hardship letter?

This is a letter that explains the borrower’s current financial circumstances. Which circumstances have changed from when the house was purchased, and why the mortgage payments can no longer be made. These circumstances are what led to a borrower’s inability to make payments and to pay off the loan in full. This letter must be written by the borrower, and be sincere in demonstrating (with documentation) that it is the truth.

How long does it take to complete a short sale?

The time frame for the lender to receive and evaluate the short sale proposal is about 8 weeks from the time the offer and Short Sale Package are received. Buyers need to realize that this is a lengthy process. This is why it is very important to work with a Short Sale Specialist who knows how to manage the transaction. The other agent and the buyer may get cold feet at the end, and the transaction may fall through.

Why does the bank accept less than they are due?

They lose less on a short sale. On average, lenders lose tens of thousands of dollars less on a short sale versus a full foreclosure. It is simply in their best interest.

Can staging your home increase the value when selling?

2010-08-16T15:05:00.000-07:00

Home staging is one of those subjects that people often feel a little bit intimidated by. There are a number of factors that are involved in good home staging but it does not need to be a complicated issue.

We caught up with Karen of Staging Pro s in Santa Clara county. She is an expert in home staging and has a wealth of experience that can turn your home selling experience into a quick and lucrative home sale experience.

Whether you plan to do your own home staging or hire a professional to do it for you, here are a few commonly asked questions about this process with surprisingly easy answers:

What Exactly is “Home Staging?”

The process of staging is taking what you have (or, in some cases, bringing in new items) and presenting them in a way that shows off what you have as well as you possibly can.

In a way, home staging is about illusions. It's beyond decorating and cleaning. It's about perfecting the art of creating moods. Staging makes your house look bigger, brighter, cleaner, warmer, more loving and, most of all, it makes home buyers want to buy it.

Does My Entire Life Have to Be Disrupted for Home Staging?

No! Many people think home staging requires a lot of new furniture and artwork to be brought in and put in your home. In fact, most people already have what they need for a great home staging already in their home. They just need a little expertise to help guide them on how to position their assets.

It is also possible to easily live in the home while the staging process is in full swing. In fact, this is frequently part of the home staging challenge: making your home both staged appropriately and livable. The great news is that it can be done. Particularly when you hire a professional to help you with this process, you will find that the two really can coincide easily.

Is It a Good Investment to Invest Money in Staging a Home?

Absolutely! Many times staging is done after a home is generating little interest on the housing market. Some strategic staging is performed and it sells quickly thereafter. The fact of the matter is if you want to sell your home…and sell it quickly…staging makes all the difference.

Homes that are staged sell faster in a slow market and sell for more money in a hot market. There is simply no reason not to stage. The investment comes back to you in a sold house.

How Can I Find Someone to Stage My Home?

Karen Dayton of Staging Pros is one of Santa Clara County's leading home staging companies. She can be reached at 408-595-7879.

Home staging is often overlooked in the home selling process. In fact, it can be one of the most important factors if you want to sell quickly and for top dollar. If you are in the market for selling your home, I suggest speaking with a professional home stager and see what they suggest. In the end, it may be the best move you could make.

Rock Bottom Interest Rates Open New Doors

2010-07-21T13:28:00.000-07:00

Early July 2010 ushered in the lowest interest rates since the 1960’s. In fact, interest rates are currently so low they will probably not go much lower. If you have even considered taking out a new home loan or refinancing an existing one, now is the time to do it.

Record Breaking Lows are a Great Opportunity

Experts agree that interest rates probably have gone as low as they will go. In other words, homes today as are as low right now as they may ever be again in history.

That is certainly something of which to take note.

The rate you ultimately end up paying on a new or current home loan is determined by more than just the current interest rate. Loan officers will also take into consideration your credit score and the amount you wish to borrow. However, even if your credit score is lower than you would like, low interest rates are still a very real and likely possibility.

Advantages of Buying a Home Now

Buying a new home now locks in the incredible interest rates that will save you money for years to come. If you have been waiting for the market to bottom out, now is the time to take the leap of faith to financing a home.

Purchasing a home with record low interest rates allow you to make an investment and build equity in that investment even quicker. Whether you choose to stay in your new home long term or sell it in a few years when the real estate tide turns in the favor of sellers, you will certainly make a wise investment in buying now. Rates are actually so low that you can save $100 to $200 per month on your monthly mortgage payments.

Build a Home Now for a Firm Financial Foundation Later

Building a new home does not need to be out of your equation of owning a new home either. Not only are you receiving incredible interest rates, there are a few other things to consider that makes building a new home a great choice.

Few will argue that the housing economy has struggled for the last few years. As a result, builders have taken a hit and are now drastically slashing prices. This can be used to your advantage as you seek out someone to build your dream home for a fraction of the price it was just a couple of short years ago.

If you decide to build a bigger and better house or just pocket the money you save, the choice is yours. The point is, however, you have a choice get exactly what you need and want if you choose to build a new house.

Refinancing a Current Home Loan

If buying a new home is not in your immediate future plans but having some extra money in your pocket is, consider refinancing your current home loan might be an ideal solution. Refinancing a loan is a great way to draw on extra funds from your loan.

When you refinance with the current rock bottom interest rates, your payments on the new loan naturally go down since the lower interest requires a smaller amount you ultimately borrow.

The historical low interest rates that we are witnessing today create an excellent opportunity for anyone who wants to buy a home or build a home. It also is a great time to refinance your current home loan. The current interest rates are not expected to stay this low for long. Now is the time to make your home owner dreams a reality.

9 Steps You Must Take Before You Sell Your Home

2010-06-22T13:00:00.000-07:00

www.DominicNicoli.com

The home selling process differs from state to state, but there are some important steps that you should take before you put your house on the market--all steps that protect your interests and help you get the most return from your investment.

1. Get Pre-Approved for a Home Loan
I've known sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren't able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.

Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.

2. Check Your Mortgage Payoff

Call your lender to check the payoff for your current home mortgage. You'll need the figure to complete Step 6.

3. Determine How Much the House Is Worth

Determine your home's fair market value. Real estate agents will usually help you determine value as a courtesy, but you might take it a step further and order an appraisal.

4. Estimate Your Costs to Sell

• Real estate commission if you use an agency to sell.
• Advertising costs, signs, other fees if you plan to sell by owner.
• Attorney, closing agent and other professional fees.
• Excise tax for the sale.
• Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and fuel tank rentals.
• Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
• Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.

5. Determine Your Costs to Acquire a New Home

• Total your costs to acquire a new home: moving expenses, loan costs, down payment, home inspections, title work and policy, paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for pre-approval.

6. Calculate Your Estimated Proceeds

1. Deduct your mortgage payoff from your home's fair market value.
2. Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.
Will your closing proceeds cover your costs to acquire a new home? If not, do you have cash or other funding to make up the difference?

7. Make Necessary Repairs

Make all needed repairs unless you want the house to be regarded as a fixer-upper. I'm not referring to cosmetic updates, but to items in need of repair. Anything that's obviously broken gives potential buyers a reason to submit a lower offer.

For a preview of several repair hot spots that worry buyers the most, read Passing Your Home Inspection.

8. Get the House Ready to Show

Most houses need at least a little spiffing up before they are shown to potential buyers. Great curb appeal, fresh paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and appliances, and a clutter-free atmosphere are essential if you want the house to appeal to buyers.

Read: The Importance of Curb Appeal and Getting the House Ready for Showings for more prep advice.

9. Get Psyched Up to Let People In

If you're listing with a real estate agent, she'll no doubt ask you to leave when the house is shown. Why? Because lurking sellers make buyers nervous--they don't feel comfortable inspecting the house when they feel they are intruding.

Unless there's a real reason for it, don't ask your agent to be present for all showings. That's the kiss of death for showing activity. Other agents want privacy with their buyers and they don't usually have time to work around your agent's schedule.

Los Altos Market Stats April 2010

2010-05-30T09:25:00.000-07:00

The real estate market, in general, is bipolar. Ups and downs keep home buyers and sellers guessing. Sometimes, all people can rely on are statistics and trends that can lead them in the correct direction.

While sales and prices may be on the rise -- a good indication of recovery -- the same can be said for repossessions and interest rates, which is not a good sign. Furthermore, other factors such as unemployment, underemployment and a rise in foreclosures seriously impact the health of real estate.

It’s important to know all the market facts before buying or selling a home if you want to have a successful and profitable experience. More particularly, there are ten market numbers that everyone should know even before listing your house. These include:

Property Taxes – Though sometimes overlooked, property taxes can really cost you. So if it’s higher than normal in your neighborhood, simply emphasize all the incredible perks like school, parks and other features that make the area more valuable.

Interest Rate – This number is vital when it comes to knowing when to sell, and the tiniest increase can alter your mortgage more than you would think.

Average Sale Price – In real estate, conformity is wise when it comes to matching the price of other houses in your area, or even on your street. So keep tabs on the average sales price of homes within the last couple months.

Average Listing Price – Again, be sure to keep your house within 5% of other listings in your area, otherwise you home is sure to be pushed aside when buyers recognize it as overpriced!

Average Days on Market - Often times, buyers have other factors like work, the kids’ school schedule or move-out deadlines that impact the speed at which they must purchase. This useful statistic comes in handy in such situations, and provides the average number of days houses have been on the market.

Marketing Fee – You might be dying to get that house sold, but it’s important to be aware of how much it will cost you to get it the attention it deserves. Whether you’re selling it yourself or with the aid of a professional, extra marketing efforts could affect your final profit deeply if you don’t pay close attention.

Absorption Rate - This rate is the number of weeks it takes to sell the current inventory at the present rate of sales. It is not an exact science; it is based on real estate market trends in your area. You need two figures: the number of listings and the number sold last month. The absorption rate will give you a better idea of how much time will need to be invested in the selling of your home.

Sell Price to List Price Ratio – After figuring the average selling and listing prices, comparing them side-by-side will help you to better expect what to list the house for and what offers to expect.

Inventory – Knowing exactly how many properties are for sale in your area will give you a better grasp on your competition.

Seller’s Net – You obviously want to know how much you’ll be walking away with after everything is said and done. Incorporating all the selling and buying factors into a functional equation of your net profit is of the utmost importance to you and can be done with the assistance of a professional.

We Are Here to Help!

Obviously there are many elements that play into the market equation, and many facts that are more important to know than others. Don’t you wish someone else could sort it all out for you in one, convenient database so you can better utilize these patterns in the buying or selling of your home?

At DominicNicoli.com, we provide accurate and up-to-date real estate market trends that you can rely on. Targeting the Los Altos area, those looking in the Silicon Valley region will find this information especially useful.

For access to these trends and for any other questions or assistance, don’t hesitate to visit DominicNicoli.com right now or call us at 650.947.4787!

DominicNicoli.com - The Best Real Estate Website

2010-05-28T11:26:00.000-07:00

There are tons of real estate databases and search engines out there, so how are you supposed to know which one works best? In an ideal world, you would have free access to reports, helpful information about different neighborhoods and schools, and easy search functions to use as you embark on your house hunting adventure…

Well your dream has come true! Our brand new real estate Web site “DominicNicoli.com” has just been launched to make your home selection process a million times easier.

Full of Useful Tools!

If you are looking to sell or buy in the greater Silicon Valley area, let our Web site be your guide! Nearly twenty free reports, lots of property search information, featured listings and community and school information resources fill this DominicNicoli.com to the brim with real estate data. Our attention to detail, careful consideration and hard work are illustrated through this site in order to deliver our guarantees of excellence, energy and quality experience for you.

A Buyer's Bonanza

Buyers have access to see all of the services we provide, including financial assistance, daily prospecting, tedious research of properties for sale by owner, and purchase contract writing, to name a few. Buyers are also given the opportunity to easily calculate their mortgage, sign up for free property alerts and gain instant access to search MLS.

A Seller's Savior

Sellers will also find the Web site extremely useful – we can help strategically market your home, prepare your property for sale, pre-qualify potential buyers, utilize our effective 800 number Call Capture System and much more! Our “Pre-List Package” is also available to you, making your listing process more manageable and systematic. Another cool feature on DominicNicoli.com is a property price calculator – you can simply punch in the information about your home and instantly get an estimated price and value of your property.

On top of everything else, we have 19 free reports available for you to utilize, ranging from topics like “How to Make an Offer” to “Minimizing Stress.” Our site is easily navigated and extremely useful, so take advantage of it and visit now!

If you have any questions, comments or concerns about the new site, feel free to call me at 650.947.4787 or email me anytime at dominic@dominicnicoli.com! Check it out!

Discover the 3 Best Things to do to Sell Your Home for the Highest Price

2010-04-26T07:36:00.000-07:00

I want to tell you about the three best and most cost-effective strategies to follow in order to get the highest price on your home. Let’s get right to it!

The three best strategies are staging, paint and carpet, and curb appeal. Below, I explain these strategies and the benefits of each.

Staging

If you’re not familiar with the concept of “staging,” it’s simply a method of showing off your home to its best advantage by re-arranging furniture, paintings, etc.

Now, sometimes, people get the mistaken idea that staging involves taking out all your furniture and replacing it with temporary new items.

That’s not what we do at all!

We simply look at methods of making the best possible impression by placing furniture, etc. in the most pleasant and welcoming arrangement possible. Plus, we may add some temporary furniture or paintings to heighten the sense of a warm and comfortable home.

If it helps, think of a home stager as a person who’s similar to a set designer for movies – they use their expertise to achieve the effect they desire.

We do the same! Believe me, home staging will give you one of the highest returns on investment in terms of achieving more dollars on the final sale!

Paint and Carpet

Paint and especially carpets can have a huge positive or negative impact on potential buyers.
Believe me, you can have a beautiful, beautiful home, but if buyers see a ragged, threadbare or dirty carpet, it may end up being a deal killer!

The same is true of paint! These two items have a huge impact on the all-important first impression.

So, you want visitors to focus on the house as whole, not on paint and carpet. And, remember, when you repaint and clean or replace the carpet, you’ll get $2 to $3 back for every dollar you spend!

In terms of paint, definitely do not go for the cheap stuff! Choose a high--quality paint. It simply looks better and emphasizes the quality of care you’ve put into your home. You can bet buyers will notice that!

In terms of carpet, you have two choices, depending on the state of that carpet. If it’s simply dirty, have it professionally cleaned so it looks like new.

If it’s threadbare or worn or has an out-of-fashion color, replace it. I know this may seem like an expensive improvement, but it can actually add several thousand dollars to the sale price and end up being a great return on investment!

Curb Appeal!

The term “curb appeal” refers to the first impression potential buyers receive when they first see your home. As we all know, first impressions are everything, especially with such a large investment as a house!

So, it’s in your best interest to make your home as attractive as possible outside as well as in. Great curb appeal can complete the sale and increase your final profit as well!

And here’s more good news – you don’t need to spend a lot of money to get fantastic curb appeal. Depending on the structure of your house and type of lawn, use one or more of the following methods:

Manicure That Lawn!

A mowed and edged lawn really enhances the curb appeal of your home and shows potential buyers that you take good care of your place. Sometimes, you can really emphasize the beauty of your home by adding colorful flowers, bushes, etc.

Wash the Walls (Siding, etc.)!

If you live in an area where there’s lot of dust, using your own hose or renting power washing equipment can make a home look brand new! And you do it all at no cost or very little cost!

Paint!

If you have a house that requires painting, then you’re in luck – repainting is one of the most cost-effective ways of improving appearance and adding value to a house! You’ll get back $2-3 for every dollar you spend!
Whether you do the job yourself or hire a service, make sure a high-quality paint is used for the brushes and/or sprayer. It makes a great first impression. Of course, choose colors that are appropriate for the house and the area.

So, there you have it – three great ways to increase the final sale price of your home!

If you’d like to learn about more cost-effective methods for increasing the sale price of your specific home, give me a call right now at 650.947.4787 or go to www.TheNicoliGroup.com!

Los Altos Market Trends - WOW! Sales are up almost 50% in our market, this is GREAT NEWS!

2010-03-23T15:06:00.000-07:00

I’m so excited about where our Los Altos market is finally going that I just had to share the good news with you!

If you’re thinking of selling your home, the time is now for the following reasons:

- Our inventory is down about 30% from a year ago!
- Sales are up almost 50%!
- Prices are starting to climb due to low interest rates and low inventory.
- Many properties are getting multiple offers!
- Spring buyers are out!

So, what does this all add up to – lots of competition for your home! And that means you’ll get the best price possible once you’re in the market!

Here’s what you need to do – contact me today to find out to find out the values specifically related to your home and your neighborhood! I’ll put together a market analysis specifically geared to your property and your needs!

Call me right now at 650.947.4787 or go to www.TheNicoliGroup.com! And…Happy Springtime!

When’s the Best Time of the Year to Sell Your Home?

2010-03-03T06:50:00.000-08:00

Everybody believes that spring is the best time to sell a home!

After all, the most buyers are out…the flowers really add to curb appeal…parents want to get their kids into school before summer ends…and so forth. But, you know what? It’s a myth! Of course, spring can be a great time to sell, but not always as most people believe!

That’s because the housing market could care less about what time of year it is. Here’s what really determines the best time of year for sales:

When the inventory is lowest and demand is at its highest!

That’s it! That’s all there is to it. But, rather than have you just accept my word for it, let me give you some research I did on the market over the last few years, first in selling and then in buying. Read on and get your eyes opened!

Best Selling Months (2005-2009)

2005 - June
2006 – February
2007 – March
2008 – October
2009 – November

Best Buying Months (2005-2009)

2005 – November
2006 – September
2007 - October
2008 - May
2009 - April

From the list above, you can see the proof of what I said. Depending on the year, the best months for buying/selling could range from spring to fall to the dead of winter!

Conclusion: The best periods for buying or selling a home have nothing to do with the seasons! It all has to do with supply and demand, interest rates, economic conditions, and so forth.

So, what all this information tells you is that you need to contact us today to find out what’s actually going on in the housing market! Don’t simply wait until spring; otherwise, the prime time to sell or buy may pass you by!

Call us today at 650.947.4787 or contact us immediately at dnicoli@interorealestate.com and we’ll give you the latest news on market conditions! Don’t wait!

What Exactly Determines the Value of Your Home?

2010-03-02T15:04:00.000-08:00

A Home is Only Worth as much as its Market Value.

Market value is determined by a comparison ("comp") with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the range. But market value is also determined by a number of factors including the following:

External Factors

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers.

A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc.

Internal Factors

The condition of a home's interior also has a huge influence on prospective buyers. When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up.

This is because they know your pride of ownership will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc.

Supply and Demand

"Supply and demand," simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. As a result, supply and demand affects how quickly your home will sell.

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood?

Aren't Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties.

Where Do I Find Sales Comparison Information?

The easiest source to access is your Realtor. After all, it's his or her business to know such information! But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. ) The Local Assessor's Office

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service.

2.) Online Private Companies

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information.

3.) Your Local Newspaper

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want for Your Home

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you.

See how I do that for you by calling me at 650.947.4787 or email at dnicoli@interorealestate.com.

Should I Just Walk Away From My Mortgage?

2010-02-11T15:21:00.000-08:00

...well, only if it were that simple. Here is another option:

A “short sale” is a handy term for a situation in which a homeowner’s debt on his or her property is greater than the amount for which the property can be sold.

Here’s an example: Assume a homeowner has an unpaid loan balance of $110,000, but the property will only sell for $100,000. The unhappy lender accepts that $100,000 as full payment from you or another investor. This is obviously “short” of the full $110,000 amount, thus the name “short sale.”

Let’s be clear – lenders don’t like short sales and often will go through them only as a last resort. After all, they’re not in business to lose money! In many cases, they’ll prefer the option of foreclosure since that choice makes more financial sense.

However, there are instances in which lenders accept short sales and, if you’re “Johnny-on-the-spot,” you can make a very good profit – if you’re willing to brave a complicated process!

Why Is a Short Sale More Complicated Than a Normal Real Estate Transaction?

Simply put, it’s complicated because there are so many factors involved:

- the loan mitigation policies of the lender and third-party investors
- the financial condition of the lender and third-party investors
- financial condition of the borrower
- the property’s as-is value
- the cost to “repair” the property to put it into saleable condition and market it, etc.

On top of these factors, approval for short sale has to come from the investor who actually owns the loan. And then, if the lender is a government-sponsored institution like Fannie Mae or Freddie Mac, approval can eat up a lot of time. After all, you’re dealing with government bureaucracies!

When Will Lenders Accept a Short Sale?

There are a variety of situations in which lenders accept short sales. For example, homeowners experience a devastating illness that eats up all their financial resources. Or they may be military personnel called up to active duty for extended periods of time, and they lack the income to continue mortgage payments.

Other examples include anyone who falls into the “hardship” category—disabling, permanent injuries; financial insolvency; convictions; lack of employment due to economic conditions beyond the homeowner’s control, etc.
In these instances, lenders are willing to consider a short sale.

How Do I Find Out If A Property Qualifies for a Short Sale?

You’ll have to do some digging and gain knowledge about the lenders in your area. In order to acquire that knowledge, complete the following tasks:

Task 1: Talk to the lender and find out their loss mitigation policy. If they seldom or never do short sales, don’t bother with them. Find another lender with a better record in this area.

Task 2: Find out the number of liens recorded against the property title and the total amount of money in those liens.

Task 3: Know the borrower’s present financial condition.

Task 4: Know the type of loan that’s in default and its current status.

Task 5: Know both the property’s as-is market value and its as-repaired value.

Task 6: Be aware of the state of the local economy and the current real estate market conditions. Analyze all this information to determine if a short sale is worth pursuing.

Okay, let’s assume you’ve completed all those tasks and know the short sale is worth pursuing. What’s next?

How to Pursue a Short Sale

First, have the homeowner sign an authorization to release the loan information. Next – and this is very important! - you must have cash on hand. Why? Because all short sales are cash transactions! What’s more, you also need verifiable proof that you possess the money!

Also very important - short sales can’t be made to relatives, family members, or close friends of the homeowner. In real estate, this is called an “arm’s length transaction.” What happens if you do this and the lender discovers that you’ve done an arm’s length deal? The lender can file a lawsuit to have the sale overturned!

As you might expect, the property owners themselves can complicate the process. After all, they can’t receive any of the money from a short payoff sale. That means not much of an incentive for them to do a short sale.

And one last negative - the debt that’s canceled by the short sale payoff of a mortgage or deed of trust is subject to federal income tax as ordinary earned income. This is not true of a bankruptcy or insolvency.

How to Start the Short Sale Process

Follow these steps (yes, there are many):

- Get in touch with the homeowner who’s in foreclosure.
- Determine the homeowner’s financial condition.
- Analyze the condition of the property.
- If both the financial and property condition are suitable, ask the homeowner for written authorization to communicate with the loan loss mitigation department of the lender.
- Get in touch with the decision-maker in the loan loss mitigation department of the lender and provide them with a copy of the written authorization.
- Contact the decision-maker to discuss the short sale and request that the decision-maker send the appropriate short-sale documents to the homeowner.
- Ask the homeowner gather all documentation to provide support for financial hardship case.
- Get repair cost estimates from a minimum of three licensed home improvement contractors.
- Do a comparable value study by assessing the value of three similar neighborhood properties sold in the last six months.
- Return the short sale proposal to the lender’s decision-maker. It should include a signed purchase agreement for a percentage less than the amount owed to the lender; e.g., 20%, 30%, 40% less, etc. Include a HUD 1 Settlement Statement in your proposal. You can download the statement in PDF form here.
- The lender’s decision-maker reviews your proposal and orders a BPO to determine the property’s as-is and as-repaired values.
- The decision-maker either accepts your proposal or rejects it.
- If the decision-maker feels a short sale is appropriate, they’ll make a counteroffer.
- You then accept or reject the counteroffer.
- If you accept the counteroffer, you close on the transaction within 30 days.

I hope this brief introduction to short sales gave you enough information to decide whether or not you want to pursue this type of transaction. If you have more questions, please contact me today at 650.947.4787 and we can discuss this topic or any other area of real estate.

Intero Real Estate’s Advanced Internet Technology! - Welcome to Our NEW HD Video Blog...

2010-01-11T15:58:00.000-08:00

Are You a Home Buyer or Seller? We're Using NEW Technology to Get the Deal Done - Fast!

If you’re home buyer or seller, I don’t have to tell you that getting a real estate deal done can be a complicated task. Here at the Nicoli Group, we’re committed to making it simpler and easier for you because we take a customer-centered philosophy and merge it with the latest Internet technology!

Let me explain our philosophy first and then tell you how we employ the speed and impact of the Internet to get a deal done for you in the most effective way possible!

If You’re a Seller…

Then our main job is to get the maximum amount of qualified, motivated buyers through your home.

The more qualified, motivated buyers who come through your door, the higher the selling price will be and the faster it will sell! We use Internet technology as well as reliable, traditional methods to achieve that objective.

If You’re a Buyer…

You know that there are many important decisions to be made – which property to buy…what areas to look for/avoid…which school districts are the best…etc. Well, we strive to bring you every possible property available that meets your specific needs and, at the same time, negotiate the best possible price for you!

Okay…now for the technology we employ!

Simply put, the Internet allows us to get your home (if you’re a seller) in front of thousands of potential buyers faster and more effectively than ever before. It also allows us to give those buyers beautiful photos and virtual tours of your home so they can get excited about your property without getting out of their chairs.

Now, if you’re a buyer, wow, you have more choices than ever before! You can instantly see what a home looks like, take a virtual tour of it, and get all the information you need. This saves you a lot of time because you can narrow down your choices quickly and easily. With this technology (plus all the traditional methods), we give you a dramatic advantage as a buyer or seller with our advanced use of video technology and social media.

Don’t forget to bookmark our new HD Video blog! I’ll be posting great articles and videos with tips on how to make the most of the current real estate market, improve the value of your home, and make a smart decision in real estate. Or, if you prefer, contact me directly today at 650-947-4787! I’d love to demonstrate the dramatic advantage I can provide you!

What real estate topics would you like me to cover in the coming weeks? What subjects and issues in real estate are important to you? Leave a comment below and let me know...