Los Altos Market Stats April 2010

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

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

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!

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?

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?

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?

 ...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.