Thinking Green: Using Light Colored Roofing and Paint

In a visit with one of my past clients today (who painted his roof white after his house closed escrow over 10 years ago), it came as a revelation that California has passed a law effective July 1, 2009, that residential roofs on new construction, both flat and sloping, must be re-roofed with a white or light material. Actually, the law for a white flat roof has been in effect since 2005. See this article provided through the California Energy Commission.

The argument is of course for energy savings, and reflects a practice long used in ancient societies that populate hot climates where light or white clothing is standard practice, and whitewash is used on all structures. The cooling effect has long term energy savings implications, especially for the Western states, and especially for California where energy conservation is fast becoming an outright demand. A California Energy Commission board member states that it has long been known that white-roofed buildings stay cooler in hotter weather:

"painting urban surfaces in warm parts of the world white or a light color could offset the carbon emissions of all 600 million of the world's cars for 18 to 20 years — at a savings equivalent to at least $1 trillion worth of CO2 reductions."

"It turns out that they cool the air outside of their walls, too. On a typical summer day, Los Angeles is 5 degrees warmer than surrounding areas, and studies have consistently shown that by far the largest factor in this discrepancy is the absorption of solar heat by dark roofs and pavement — a phenomenon known as the "urban heat island" effect."

So far, this law affects new construction, but doesn't it make sense to apply these principles to existing structures wherever possible? Rethinking guidelines for historic homes might be in order.

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Five Principles of Home Staging

Home staging is economical and a well-proven benefit to Realtors and home owners alike. Here are some basic staging principles every home seller can use:

Become a Seller, Not a Dweller
Homeowners must make the mental shift necessary to become Sellers, not Dwellers. It is only then sellers are able to realize they own a commodity to be sold and no longer their home. The way we live in our homes is different than the way we sell our homes. With this mental shift in place, the next step in the process may begin.

Clean and De-clutter
De-cluttering is the first principle used in home staging. Clutter is defined as those items in a room that are not necessary for its function or beauty. Clutter can be too many books, knickknacks, or accessories. With staging, only key accessories and furniture remain. The property will immediately appear more spacious and well cared for.

Here are some tips to keep in mind as it applies to de-cluttering:
A buyer wants to purchase a move-in ready home. A house that is not clean implies deferred maintenance.
A buyer is purchasing square footage. Clear the clutter to create the impression of more space.
Let the light in; buyers are drawn to open, airy spaces.

Appeal to the Masses
With the de-cluttering process accomplished, the next phase is depersonalizing. The buyer will want to mentally personalize it and imagine living in the house when it becomes theirs. This includes using neutral tones throughout as well as general updates which will appeal to the largest segment of potential buyers.

Realtors no longer have the almost impossible task of telling homeowners their faux finished pink bathroom really needs a neutral tone of paint (put in before and after of pink bathroom) or their beloved collection of gargoyles will turn off potential buyers.

If You Can't See It, You Can't Sell It.
Curb appeal is everything. It's the first impression a potential buyer gets of the home. Remember, if you can’t see it you can’t sell it. The easiest and best way to determine what needs to be done to the outside of the home and the lawn is to walk across the street. Look objectively at what the home looks like from that vantage point. Then, take the following curb appeal test:

1. Are the gutters clean and in good repair?
2. How does the driveway look?
3. Do the shrubs need pruning?
4. Do the trees need trimming?
5. How do the flower beds look?
6. Is the walkway leading to the house inviting?
7. Does the lawn look clean and neat?
8. Are the house numbers clearly visible?
9. Does the entryway and front door make a great first impression?
10. Are toys, tools, hoses and any other distracting items put away?


It is only after answering and addressing the above curb appeal issues that the seller will have passed the “curb appeal test.”

Maximize Strong Points; Minimize Shortcomings
Finally, it’s important to show off the home’s best features, while hiding its flaws. Showcase focal points such as fireplaces, wood floors, and expansive views and divert attention away from less attractive features by creating alternate interest.

If a home seller is willing to follow these simple steps – clean and de-clutter, depersonalize, increase curb appeal and maximize the home’s strong points - they greatly improve the chances of selling their home quicker and for top dollar.

Amie Hebert Chaney, a Home Staging Expert (HSE), says Home Staging is the art of preparing a home for market to give the best possible first impression to potential buyers, resulting in a quicker sale and higher profit. The intent behind home staging is for potential buyers to be able to see the home as theirs. Copyright© 2008, Amie H. Chaney. All right reserved. For information contact FrogPond at 800.704.FROG(3764) or email susie@FrogPond.com.

Long Beach, Cerritos, Lakewood Unsold Inventory Index in Steady Decline

The residential inventory in many areas of Long Beach is steadily declining, as of today in Long Beach, there are 831 single family homes and condos listed as "active" in the MLS (down from about 870 just a few weeks ago), with 775 in escrow.
Cerritos has 66 active residential listings, and has 67 in escrow.
Lakewood has 99 active listings, and 148 residential properties in escrow.

The gap of available properties is closing.

The median price statewide has increased for the 5th straight month, as sales in lower priced inventory has dropped, and more sales occurred in the upper ranges.

While the suspense concerning future inventory continues, as the home supply backlog grows, it's important to keep in mind: nobody knows for certain how and when and where the increase in inventory will happen.

Per the California Association of Realtors August report:

"With inventory levels well below the long-run average, a supply shortage at the low to middle-tiers may have constrained sales in lower-priced homes and led to an increase in the median price. The supply of homes is expected to increase later this year as the number of foreclosures continues to rise from last year. However, the government and lenders’ efforts in modifying loans, combined with delays in processing the backlog of delinquencies may ease the number of defaulted loans, thus making a prediction on the number and timing of the flow of distressed properties less certain."

Find a residential or investment property through the MLS search.

Moving Forward or Still Going in Circles?

With more properties now receiving offers within days coming on the market, multiple offers, and selling over list price, at least some smart buyers are beginning to understand a current reality. They are having to compete against investors, or against other buyers who have more cash than they do. The days of casually looking, window shopping and low-ball offers should be left behind as quickly as possible. Thinking that the mountain will come to Mohammed, as wishful thinking takes over pricing reality, should be done with. It is time to stop moving in circles, the one where offers are made, lost in the multiple offer shuffle, then repeated again at the next property where the cycle repeats itself, over and over again.

It is time to move forward.

It is time to make the winning bid. To make the winning bid, a realistic property has to be chosen, and that realistic property may be one which doesn't look so attractive initially, but is in the right area, and for which suitable financing is available. Perhaps it will require a higher down payment, or an FHA rehab loan. Otherwise, choosing the price you want in an area you don't really feel certain about, and then expecting the seller to reduce the price to your lowered expectations, is sheer folly. It is time to move forward.

There's been much talk about the REO properties that will hit the market, perhaps before the end of this year. And will they bring a new low in bargain prices? That's the way many buyers continue to act. But there's so far been evidence supporting stabilization in prices, if not a regional increases in price. A 3% increase in the West according to the Clear Capital Home Data Index report discusses how the momentum built in recent months could carry over into REO properties placed on the market in the future as buyers worry they are missing out on the bottom of the market.

The time for the $8000 tax credit is still in effect until December 1, 2009. Whether you're interested in houses, condos or units, please contact me. I can help you move forward.