Seller, Please Take Yourself Out of the Picture

At Awkward Family Photos there's one thing you can see a lot of--the kind of kids pictures and engagement photos you really don't want showing on your walls when your property is on the market. I don't know what the people at the left were thinking of, and the photo at the right was showing off the kids modeling Dad's cabinetry with a much-loved family pet.

I know what you're thinking: That you don't have anything as crazy as these photos on your walls because your photos show much better taste. After all, they were taken by an expensive portrait photographer showing the close family gathered in formal attire in a classic setting as a beautiful holiday memoir--nothing goofy about that. Why wouldn't you want to proudly show off your family for buyers coming through your home?

Well, in a nutshell, photos in your home may represent you and your family members in a very personal way, and buyers read clues about you and possibly make opinions which may not help sell your home. Even if they do identify, or sympathize, with the Star Trek outfits because they have the same picture on their bookcase, is this the focus of their seeing your home? Because personal objects are usually a distraction to the buyer, a detour into personal aspects of the seller's live(s)that is best avoided if you want an offer soon. You want to present your property, not you and your family, to get it sold as quickly as possible for the best price. You are now selling a product, as cold as that may sound, into which the buyers are trying to see their pictures, furniture, etc. So, sellers, so after seeing the photos voluntarily submitted by those who are having a good laugh at themselves, http://www.awkwardfamilyphotos.com/ , then go around your home and take yourselves out of it as much as possible, so that someone else can put themselves into it. Oh yes, thanks for California Association of Realtors for leading me to this entertaining site. I might submit a photo or two myself.

The Return of the 5% and 10% Down Payment on Conventional Loans

This is welcome news for borrowers (up to $417,000) whose only option was FHA if they didn't have 10% or 20% down payment funds. This is also welcome news for sellers of single family homes because buyers whose loan amount is $417,000 or less may now borrow with a 5% down payment. Yes, we know there are cash buyers out there with that amount of money, because the FHA buyers in the Southern California market have regularly been beaten down by the all cash buyers or 50% down buyers. But assuming the borrower is well qualified, pre-approved with a lender with a track record (and I mean fully pre-approved), and motivated, a seller may well want to seriously consider such a committed prospect who as a great desire to purchase his/her first home.

And, also in the good news department, is the return of the 10% down conventional loan for condos. This has been almost impossible to get in recent history from most lenders, and this is good news for sellers also, because it relieves the issue of an FHA borrower whose lender may well have to fully approve the entire association before closing escrow. Not only is this time consuming and requires a lot of work by both the lender and the homeowner association, the HOA may not, in the end, meet FHA standards criteria. In fact, sellers, did you know that if your association has 5% or more owners delinquent 30 days or more in their HOA dues payments, there is a problem with loan qualification.  This is true for both FHA and conventional loans.
But back to the good news. For associations which can overcome any such issues, the 10% down conventional loan opens up the door for many more borrowers and thus a faster sale for the seller.
So if you're thinking of selling, contact me for all your possibilities. Buyers who have been holding off should get rolling while interest rates are still in the 5% area (that's usually included paying one point of the loan amount).

Right now there are 349 single family homes listed in the MLS in Long Beach under $438,000 (for the 5% down buyer). In Lakewood, there are 96 single family homes under $438,000.  No, they don't have ocean views, but find them in east Long Beach, Wrigley, Ridgewood Heights, Alamitos Beach for Long Beach, and Lakewood Park and Lakewood Mutuals for City of Lakewood, plus other areas that might be worth your investigation especially if you are a first time buyer, or looking for a down sized smaller home.
Please find these different areas at http://www.juliahuntsman.com/ by clicking on links from the first page (scroll down first).

House and Condo Selling Prices in Long Beach for April 2010

Was April the month of the "Effect of the IRS Tax Credit"?  While I've been telling some people that the median price of condos, townhomes and lofts was still trending downward, for the city as a whole, it's been trending upward, by quite a bit. Truthfully, it's been jumping around all over the place. March and April saw increases from the prior year, with April showing a 25% increase in median price from last year to over $240,000, but not as high as September, 2009's median price of $255,000.

A similar graph for single family homes for April shows a 10% increase in the median price for Long Beach, to $370,000, with a different peak in price showing for last November at over $400,000 (the first "end" of the IRS buyer tax credit). For Los Angeles County in March, per tax data, condos priced at $325,000, a decrease from $330,000 in March 2009.

The median price for the city does not tell the entire story, and anyone wishing an analysis of their zip code or housing area should contact me for a custom report. For Los Angeles County per tax data, the single family home median price for March 2010 was at $340,000, an increase from $303,000 for March 2009.

Sales volume for LA County in March in both categories increased over the prior year.

Long Beach, just by looking at these statistics, is definitely looking like the "bright spot" as described recently by CAR economist Leslie Appleton-Young.

Buying Without Selling? Equity Will be a Player.

If you're thinking of buying a new home and renting out your current home, it will pay to plan in advance. By asking a few questions, you will start to shed light on an important subject.
 For instance, do you know your current rental market and what a reasonable rent could be expected for your property? By checking local classified ads and online rental sources, plus speaking with other local owners who are landlords, you should be able to find out fairly easily. Will that amount cover your current payment, plus property taxes, plus HOA dues, if a condo? If it doesn't you need to know what your negative cash flow will be (the amount extra every month that you will have to contribute out of your income) every month. Then, by speaking with a mortgage professional about pre-approval for a new home purchase, after a discussion about your income, debts and expenses, plus that possible negative cash flow, you will soon find out if this plan will work. And, there's another wrinkle: Since the subprime market debacle, lenders have increasingly formulated tighter lending guidelines, and one of them is that a current property needs to have a good 30% equity in it to meet a more recent lender requirement, and without that equity, there will will be no loan approval on that basis alone for a new purchase. Unless the borrower can qualify for a new purchase based on his complete monthly expenses, excluding tenant contributions, plus the new mortgage. This requirement came about to eliminate loans to borrowers who, due to falling home prices and a potential short sale, walked away from their former residences after closing escrow on a new home.

This means that if you're hoping to obtain a loan modification, but are not sure about how long you'll be living there (when do we ever know the future for sure?), it will pay to think in advance about your loan-to-value. The reality is, many borrowers do not meet that 30% standard, (see this blog in Seattle) and can't otherwise qualify, and thus are forced into thinking about a short sale (or even other options, depending on their circumstances), which in turn impacts how soon you may be able to borrow again in the future. FNMA actually revised their standards a few days ago, loosening the timeline to 2 years to buy after a short sale for borrowers with 20% down, and longer for those with a lower down payment. This is an improvement, and for those who can revive their credit scores and save money in that time, it will mean a good recovery.

For an estimate for your property, contact a Realtor to provide you with a comparable market evaluation at no obligation. It would also be a great time to discuss all options which could be open to you, find out future ramifications. This is the time to find out. Find current properties in your area at the MLS search at www.juliahuntsman.com, as well as other resource information. Or contact me for recent "sold" properties to establish a value for your property. To keep up with the local area, also see my page at http://www.facebook.com/LongBeachHomesandCondos .

Why Some Loan Modifications Are So Hard to Get

So far, only 17% of borrowers nationally have completed a loan modification and made it through the trial payment period under the Home Affordable Modification Program (HAMP) guidelines. One of the problems is that the HAMP guidelines only factor in the payments made on the 1st mortgage, and do not include the borrower's 2nd mortgage if there is one, which is often up to 20% of the original purchase value, and other total family expenses.  Fewer borrowers can qualify, and thus end up in foreclosure anyway.

But there are other reasons too, which may have to do with why you, the borrower, or you the Realtor, keep faxing in requested documents and short sale packages, over and over after the people at the bank say they never received it, or it got lost. Or why the bank foreclosed anyway, even though it had a viable buyer and a loan ready to fund one day before the sale date.  Sometimes lenders really don't want to modify a loan.

There is such a thing as Net Present Value (NPV) a complex model designed for HAMP to be used by lenders and loan servicers which is to determine if the borrower meets certain tests. However, the input criteria for those tests is not disclosed to the public. So if a borrower calls up his/her (HAMP) bank at the bank's or servicer's designated number and receives the response that they do not qualify for a loan modification, it may be because the representative is using the NPV software program which performs automatic calculations.  The FDIC, however, did publish their NPV model, shown on page 3.

If you are a borrower and want to know if you can avoid a long long wait to find out from your bank if you qualify for a loan modification under HAMP guidelines based on the NPV model for which the government is allegedly unwilling to publish the critical parameters, then you might want to try out Martin Andelman's offer to use his software which he says is using HAMP guidelines.
If your bank thinks your home is worth more than your current loan balance, it will not have a lot of incentive to modify your loan because it will pay them to go into foreclosure, and then put it back on the market as an REO.  And another stickler in the side of the Obama Administration are the investors who bought securitized mortgages that were sold in bundles, by Well Fargo to Goldman Sachs as one example, and now those investors are a player in the whether or not your loan gets modified:

The names of investors who actually buy mortgage-backed securities aren’t publicly available, but typically they can be foreign governments, 401(k)s, college endowments and pension funds. . . . "there could be literally anywhere from one to commonly several dozen institutional investors, and those institutional investors will be representing literally thousands of pensioners and individual investors,” says Bill Frey, head of Greenwich Financial Services.

And banks say they may have agreements with those investors, and may say they are the reason a certain loan cannot be done, but may also be unwilling to provide specific information about their "agreements."

There is more to this story, but if you are a borrower attempting to get a loan modification, be aware that not all banks are letting the timelines go by beyond what's required by law for issuing a Notice of Default and a Notice of Sale. Banks are not chartered to hold real estate, even though many are doing just that. Do not be afraid to contact a qualified tax advisor, an attorney who specializes, and/or a Realtor about your options concerning foreclosure, a short sale, or bankruptcy. The best of all possible worlds for most people is to get their loan modified, but are you going to be one of the 17% who do, and how long are you willing to wait to find out? 

Capital Gains Tax Going Up in 2011

April 15th is now upon us and soon disappearing, but for those who need to consider their capital gains, there is a window until January 1, 2011 before the 20% capital gains tax returns, after an 8-year hiatus at the 15% level.

If you have owned an investment property for more than one year, you could be subject to the long term capital gains tax, and beginning in 2013, an additional 3.8% tax on certain investment income which is subject to income tax, including capital gains, for those in higher income brackets, will also apply.

Investment property owners often consider a 1031 exchange as one method to avoid these capital gains taxes, evening combining several properties they no longer want to manage into one new property. There are certain rules and timelines governing these exchanges which must be complied with in order to obtain the IRS tax deferment.

Although California's February 2010 median sales price of a single family home has risen by over 14% from February 2009, you should find out the market activity in the immediate area of your property, because all real estate is local.  The trend could be up or down nationally, or statewide, but find out comparable prices of similar properties within the last 3 months and within one mile or less of your property.  And, even though the prices may continue upward for you, will that help you if the property has to be taxed at 20% capital gains after January 1, 2011?

For a standard chart to calculate your basis, and gain, at the 15% rate and then compare to the 20% rate, and then analyzing with and without a 1031 tax exchange, contact me. You will need certain information to make a reasonably accurate estimate, and of course, you should consult your tax advisor for specific financial calculations for your circumstances. For doing a sale and 1031 exchange, however, you will want to use a real estate professional who will provide the necessary disclosures and ability to handle the real estate transaction, and an extremely reliable and qualified intermediary for the exchange portion of the sale.

For basic information concerning exchanges, go to http://www.juliahuntsman.com/1031_Exchanges.html.

California $10,000 Buyer Tax Credit Is Coming Very Soon!

Some of you may not yet know about the $10,000 California tax credit which will go into effect on May 1, 2010, until the end of the year, or until the funds run out. $200,000 million total is allocated--half to new construction purchases and half to an existing home purchased by a first time homebuyer. Purchasers must reside in the home for two years, and there are no income limitations to be met, and no repayment as long as the purchaser stays in the home for two years. The status of funds available (there's no guarantee how long this money will last) will be published at http://www.ftb.ca.gov/.  Note: May 6 update article.

The credit is either $10,000 or 5 percent of the purchase price, whichever is less. So if a $500,000 home is purchased, the buyer would receive the $10,000 credit, which would be payable in equal amounts over 3 years.

The homeowner submits a certificate to the FTB after entering into a purchase contract.

Buyers who are not taking advantage of the IRS tax credit, ending April 30th, have this second opportunity given by the State of California.

In case you need more of a picture of how things are working in the buyer's favor, please see the interest rate histories at http://www.housingmatrix.com/index.php/interest-rate-histories.html where the viewer may look at the 30-year history, 10 years, etc.

Current interest rates (which are moving up right now) are still close to the range of where rates were in the late 1960's and early 1970's, unlike the high peak during the early 1980's when rates were in the 18-20% range. However, a snapshot of last week shows rates moving above 5% when they have been below 5% much of the last year for 30-year fixed mortgages. So for a $400,000 loan amount, the monthly principal and interest payment at 5% would increase by $61.00 a month if the rate goes up to 5.25%, or $732.00 annually.

For a customized list of homes, please contact me, very easy to send via e-mail. For February's trends in Long Beach, see my earlier post on trends in condos and houses, and the inventory.

For a similar report on your immediate neighborhood or zip code, contact me via phone or e-mail. I can easily send you one by e-mail.
For a current property search, go to http://www.juliahuntsman.com/ for condos, houses, income property and other MLS listings. And, join my fan page (see column to the right) to keep up with information and important tips!

National Open House Weekend, April 10-11

While this weekend will be noted by many as Long Beach Grand Prix weekend (oops, it's next weekend!), an honored tradition here in Long Beach since the 1970's, others will take the opportunity to visit an open house. The upcoming weekend is the first ever REALTOR® Nationwide Open House Weekend which will be held April 10–11.

Yes, there is such a thing as good behavior at an open house! An open house is an event held inviting the public onto a seller's private property to find an interested buyer.


Don't be afraid to speak to the agent holding open the house! But please know that it is VERY IMPORTANT to state immediately if you are already working with another agent. Let the open house agent know so they can adjust their conversation accordingly, and prevent any misunderstandings. Also, if you're not working with an agent yet, this may be a good time to meet and consider someone.

While interaction is good, be respectful of the agent’s time who is hosting the open house and don’t monopolize their time. If nobody else is there, please, feel free to stay and chat all you want, in fact, that's a great way to meet a Realtor and learn about the local market. But if the open house is attended by many people, please know that the agent will want to greet all of the open house guests and be sure they are available to answer questions. Should you wish to, let the open house agent know you would like to schedule another time for a more indepth conversation.

Please keep an eye on your entire family – if it’s just you or a party of adults – go in and have fun. If you have small children with you – please keep them with you (even hold the child's hand) at all times.

Don't eat or bring food or drink into someone’s home unless it’s provided there as a refreshment, and please, do not use the bathroom facilities.

Treat the home as you would want yours treated, and wipe your feet before going in. Dusty bare feet are likewise not advisable.

Every one is entitled to an opinion, but while inside please refrain from making "put-down" remarks about the home you are visiting.

Sign the guest register. If you’re working with an agent, please make that notation – even write their name down if you don't have their business card with you. If you’re not, but you do NOT want to be contacted, just indicate so – but please sign in. It helps us let the seller know how many people attended, and to know what advertising works and what doesn’t. if you saw the advertisement online, say so. If you just followed the directional signs, please mark that, but it helps sellers and their agents (and someday that could be you) to know the best marketing for their properties.

If you’d like a list of homes in an area of interest, please call (or e-mail) me.  Julia Huntsman, Broker, Lic 01188996.

(Thanks to Jennifer Klaussen in Arlington, VA for the inspiration for this post.)

Condos vs. Houses: How's it Going?

There it is, all in one picture: a condo building and two large homes, side-by-side, each property owner choosing where to live for individual reasons. And among those reasons would most certainly be affordability, but then even if a condo buyer could include the market value of either of the two houses in his price consideration, would he or she, looking down from a condo window, still want to buy the house with the large lot, square footage, maintenance, and property taxes? (The former owner of the house on the right once told me that he did make such a choice will standing in an upper floor condo next door.) These particular properties happen to be at two extremes of size and value (the condos are in the $500,000 range and the houses are double and triple that), but many people will ultimately prefer a house over a condo if they can also choose other adjustments in their criteria.

Nationally, condo inventories are higher than houses, but according to the National Association of Realtors, "the condo market has actually outperformed the single family market recently. In February, condo sales were up 30.3 percent YOY in comparison to 4.3 percent for single family homes. Starting in July of 2009 condo sales have been running at rates higher than the total for either 2008 or 2009."

In Long Beach, the months supply of inventory ending in February 2010 for single family homes is 3 months (down 44% from last year: 1045 vs. 1290 in 2/09), while the months supply of inventory for condos and lofts is 3.75 months (down 46% from last year: 449 condos on the market vs. 592 in 2/09).

Long Beach condos in escrow were up by 42% from 2/09; the number of houses in escrow were up by 30% from 2/09. The median sold price for houses in Long Beach, however, has increased from $310,000 to $350,000, while the median price for condos has decreased from $237,000 to $203,000. (These trends may vary somewhat by specific areas.) Days on market has decreased for both, but overall condos are spending less time than houses on the market.

Historically, in the local market, condos are the first time buyer's most likely choice due to price, and yet because of the distressed market many of those borrowers are having trouble, and condos are the likely choice of many investors and all cash buyers as prices make them more and more attractive.

Although March's figures are not available yet, more inventory in both categories has been coming on the market locally, and the California tax credit as well as what's left of the federal tax credit are helping to spur more action.

Stay tuned.

Short Sale Sellers and Sellers with 2nds, Take Heed

Some sellers of short sale properties could be feeling the impact well into the future. Some lenders have been selling unpaid second mortgages and home equity lines to collection agencies, to later go after the borrowers with repayment plans. Many of these are part of the "80/20" zero down loans, where the second was a huge chunk of the original equity, and now could very well be gone as a $500,000 house value has shrunk to $400,000. A seller should obtain a written release of full satisfaction when short pay approval has been granted, which a knowledgeable negotiator, whether it's your Realtor or another licensed individual, can obtain. California has certain protections already concerning purchase money mortgages, however, second liens may be a future problem.

But, even if you did sell short sale and obtained release and satisfaction, every seller of a short sale should now know that California has previously followed federal law concerning the Mortgage Debt Relief, but this year that relief is threatened due to certain unrelated provisions in a tax bill currently under consideration which Gov. Schwarzeneggar has said he will veto, thereby eliminating tax protections for those whose properties were "underwater" in a short sale. If this bill is not signed, short sale sellers will be on the hook for their California tax for a short sale come April 15th. This is the time to contact your California legislative representatives.

Yet another California Senate Bill 1178 (Corbin), if passed, would protect holders of second mortgages who refinance and stay in their homes, against future collections by banks which could be attempting to regain their lost funds. And, a new Obama Administration program which takes effect on April 5th also aims to protect owners with second mortgages by requiring lenders to send notice to short sale borrowers that partial sale proceeds were used in full satisfaction to pay off the second lien holders. This release, however, only applies to sales conducted under the Home Affordable Foreclosure Alternatives program, or HAFA, the program taking effect April 5th. It is complex and lengthy, demonstrated by the 43 pages in the link, and servicers participating can be found at this HAFA participant servicers link. A HAFA short sales fact sheet outlines the basics.

Home Buyer's Fair, a Southern California Consumer Opportunity!

This weekend is the time to use your free time for your future advantage! Attend the free 3rd Annual Homebuyer Fair this weekend, March 13th and 14th at the Los Angeles Convention Center, sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®. With more than 50 educational seminars and 65 booths, there will be many many opportunities to learn about navigating the home purchase process and the market.

This is for all buyers--first timers and investors alike, as well as homeowners, so the attendee will find information on home insurance, buying foreclosures and short sales, how to plan for your first purchase, finding a Realtor and finding a mortgage lender, how to negotiate your loan modification, and tax credits. Many seminars are also presented in Spanish.

See seminars at http://www.homebuyersfair.com/seminars and general information, including parking ($12) at http://www.homebuyersfair.com.

See exhibitors at http://www.homebuyersfair.com/exhibitors
Find me at Pacific West Association of Realtors Saturday afternoon after 2 pm!

Dear Buyer, Are You Ready to Own?

Dear Buyer,

Many of us have heard all our lives that owning your own home is the American Dream, and that's what our goal should be. To be sure, we (still--but you might have to fight to keep them, see person to the right) have our tax deductions on mortgage interest and property taxes, among other things, so there are ways we are helped when owning property. And, to be sure, many people are paying more in rent, or nearly so, than they would be in after tax savings on a mortgage.

But there's another factor the first time buyer should consider strongly: Are you really ready to own? Because the truth is, there are certain responsibilities that come with ownership, and you will benefit greatly by thinking of these in advance, before you start going to open houses and getting excited, before you talk to anyone about buying anything.

Do you have a budget? Are you used to living under a financial plan, if not on paper, at least in your head? All the loan disclosures and property disclosures on earth will not help you if you are not prepared for life after you close escrow.

Create a long-term budget to help estimate all the costs of homeownership. Items such as property taxes (estimate at 1.25% of your current California sales price), your personal insurance, utilities, closing costs, appraisal fees, escrow fees, homeowner association dues, other home maintenance costs (roof, painting, plumbing), homeowner’s insurance fees, and moving costs should be included in the budget. Have you really estimated what you might have left over at the end of the month after your usual monthly expenses, and, assuming your lender qualified you for it, are you comfortable with that? And, besides financial ability and readiness, there is what I call "emotional readiness": the desire to own and the willingness to handle the commitment to ownership.

You will probably be better able to outlast temporary short term financial challenges if you have given some time and preparation towards the above, plus other homebuyer education with your Realtor. By doing so, I predict you will find both the home search process (another topic) and the entire buying process a better experience overall.

You may find a helpful free site at HouseLogic.com, where you can explore all these issues and more. This site is for both new buyers and current property owners to help estimate costs, explain maintenance and insurance issues and home improvement programs, types of financing, budgeting, costs, market trends, tax deductions and tax incentives, and much more!

Love, Your Realtor

P.S. There are many free online budget programs, or if you would like one of mine, I would be happy to e-mail it to you (this offer is open to anyone).

Is This the Shift in the Down Cycle?

After three years of shrinking equity and, at the same time, the expansion of the number of homeowners underwater in home value, the Federal Reserve economists, who conduct "massive research" into mortgage balances and home value changes, have some better news. According to their "flow of funds" survey, "homeowners' net equity grew by nearly $1 trillion" from 1st through 3rd quarter of 2009, and in the 3rd quarter of 2009, net equity increased by $418 billion. The down cycle could be shifting, per this article in the Washington Post (see link).

According to Zillow, the percentage of homeowners with negative equity is on the decline in many housing markets including Los Angeles. Riverside, heavily impacted by foreclosures, also saw improvement.

The median Southern California price for houses and condos in January, per Dataquick, was $271,500, up 8.6% from one year earlier, and buyers who paid all cash accounted for almost 29% of January sales, the highest such figure since 1988. FHA loans accounted for almost 37% of all home purchases. Loans over $417,000 accounted for only 14% of all home loans in January.

In Long Beach, probably thanks to the first time buyer tax credit (which expires in April), and to growing recognition that current prices are the best real estate opportunity in years, properties in escrow (up 36%) and median sales price (up 6%) have both risen overall in the period since one year ago.

Is Purchasing a Probate Property a Good Way to Buy?

This article by Online Ed makes some good points:

Why is Probate sometimes a good way to find property? The probate process involves the creation of an inventory of all assets of an estate, followed by the distribution of assets necessary to pay off all remaining debts the estate may owe. Often times the heirs to an estate will have to liquidate some of these assets in order to satisfy the debts and liabilities of the estate. Houses are frequently the largest repository of value in an estate and often need to be liquidated in order to settle the estate.

Even if the home doesn't need to be sold to cover liabilities, the heirs will frequently sell the property in order to distribute the proceeds to multiple individuals. If the property needs maintenance or repair before it can sold at fair market value, that usually means someone is going to have to invest time and money to make those repairs themselves or hire someone else to do so. All too often, it takes family members more time and money than was ever anticipated. If the heirs live some distance away, or in another part of the country, the process of renovating and preparing a house for sale becomes even more demanding. Faced with those options and the potential windfall of cash from an immediate sale, most people will opt to sell – and will be willing to do so at a substantial discount. Remember, holding on to a vacant house in order to realize a bit more profit is not without cost or risks. There’s insurance, utilities, yard maintenance, and the ever-present risk of break-in or vandalism.

In addition, the heirs to the estate may be willing to finance the property with very favorable terms in order to make the deal work. This is especially true if the property has no mortgage and is owned free and clear.

In Long Beach, since 2009, out of all 1-4 unit residential properties, there are currently a total of 74 properties in the probate category that are active, in escrow, or sold, in the SoCalMLS. Considering that since 1/1/2009, in the same 1-4 unit category, there were 3505 properties sold in Long Beach, per the MLS, the probate properties are thus a small category of property. But then why should the buyer be concerned about these? Because it may pay to be prepared, just as it pays to be prepared for a short sale, an REO bid, a property under a timeline because it has a notice of default on it and may soon go into bankruptcy, and other categories which may require court approval, or even auction.

And, in some areas, it may be best to assume that a strong market price will be negotiated (many heirs study area sales too) , but the opportunity for the buyer may be that other buyers may choose to not buy a fixer, or take an as-is sale with no repairs by the seller.

It pays to know what you the buyer might be capable of doing in this market.

Another First for Buying: California Mortgage Protection Program

It's so hard to not be helped right now, especially if you're a first time buyer. On top of the $8000 tax credit available right now, California Association of Realtors is also offering a mortgage protection program. More security can be yours if you fit the bill:

Did you know? Through the California Association of Realtors' Housing Affordability Fund qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months to help pay the mortgage. This program began in April of 2009 and continues through the end of 2010. Another great program for first time buyers that adds additional security to their home buying experience! So if you, or someone you know is, are a first time buyer, this program will last until the funds are depleted, or 12/31/2010. This program actually began in April, 2009, and will last until the end of this year, or until funds have been depleted prior to that time. Qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months.

TO QUALIFY FOR THE MORTGAGE PROTECTION PROGRAM APPLICANTS MUST:

• Be a first-time home buyer or co-buyer – someone who has not owned property in the last three years
• Open escrow April 2, 2009, or later, and close on or before December 31, 2010 .
• Use a California REALTOR® in the transaction (fee for referral does not qualify) ·
• Purchase the property in California
• Be a W-2 employee (cannot be self-employed)

Applications are available--don't miss this opportunity for another benefit of buying at this time.

http://www.juliahuntsman.com/ for a property search, information on buying residential property.

Time Is Moving Along for First Time and Repeat Buyers

The Southern California Home Buyer's Fair will be taking place March 13 and 14 at the Los Angeles Convention Center. It's a great start for the keys to homeownership, if you're free to go that weekend. However, the $8000 tax credit for 1st time buyers will be ending in April 2010, and will be extended only to complete your escrow if you have signed a contract at that point in time. Per the IRS site, the credit

• Applies only to homes used as a taxpayer's principal residence.


• Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.


• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

And, although this new proposal by Gov. Schwarzenegger is still "up in the air", to continue encouraging homeownership among Californians, the Governor will propose to extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes in addition to new residences for first-time homebuyers. The buyer must not be a dependant and must be purchasing a home that does not belong to a relative. Under the Governor’s proposal, the Franchise Tax Board will extend the credit to buyers who purchase homes until $200 million dollars in tax credits have been granted.

PLEASE, if you're thinking of buying this year, do not assume that the $8000 tax credit will once again be extended as it was at the end of 2009. Many Congressional members were not in favor of this extension for various reasons. Californians may benefit from the additional proposal, however, that is unknown as of yet.

If you want to buy, start taking action now. If you need loan options, I will be happy to refer you. Remember, for purposes of these programs, a 1st time buyer is one who has not owned property in the last 3 years.

Please contact me if you are ready to proceed--remember, rates are still low.

For more information on buyer programs, go to http://www.juliahuntsman.com/.

Quick Fact: More Single People Buy Real Estate

Many developments have taken place in just the last 10 years:

According to National Association of Realtors in Dec. 2009, the percentage of U.S. homes bought by married couples has declined in the last decade.
Married couples bought 60% of homes last year, down from 68% in 1999. Single women purchased 21%, up from 15% in 1999, and single men bought 10%, up from 7%.

Fewer people are buying detached single family homes, but more people are buying in the suburban neighborhoods.

Today, 90% of the buyers are searching online first--up from 37% 10 years ago.

But, unchanged is the median age for homebuyers--it's still 39 (did Jack Benny do this survey?) And neighborhood qualify, affordability and convenience to work location are still the top buyer priorities. And 8 out of 10 surveyed consumers believe owning a home is an investment in their future.

Foreclosure Timeline in California

If your loan was obtained between 2003 and 2007, and you meet certain other guidelines, your timeline (for a non-judicial foreclosure, the most common in California) from the first day of the pre-foreclosure period up through the Notice of Sale, will be about 152 days.

The Notice of Default may be filed 30 days after the lender contacts the borrower to explore options avoiding foreclosure for the borrower.

Three months after the NOD is filed, the Notice of Trustee's Sale may be recorded and then published over a period of 3 weeks. The borrower has 5 days prior to the sale to cure the default, which means catching up on the entire debt, and all other interests and costs. On Day 152 of this timeline, the lender may sell the property to the highest bidder at public auction.

If the seller is contemplating selling, there is a minimum of 4 months at the time the NOD has been filed. Since many sellers are in a short sale position and would need to list their property, find an eligible buyer, submit their entire financial package to the lender and obtain the lender's approval, 4 months is not enough time since the standard bank approval time is still around 90 days.

If the homeowner is experiencing financial distress and is now starting to not pay the mortgage, they need to immediately recognize their situation and allow for 6 to 8 months in which to get their property listed and sold, if that is to be the course of action. Most people do not want to sell, and make the mistake of hanging on too long until they lose the house through foreclosure. This is usually the worst course of events from which it takes longer to recover in terms of credit eligibility and future mortgage eligibility. Credit is checked for rental applications, insurance, and employment, so the distressed homeowner may be affected in many other ways.

If an owner is in bankruptcy, or has surrendered the property, the initial 30-day notice requirement does not apply.

For other owners not in the 2003-2007 loan origination period, the original foreclosure timeline applies, which is about 121 days total.

A First Time Buyer Story in Surf City USA

The City of Huntington Beach did not seem like a likely place to find an affordable first time buyer program. During the high point of the market, it was tough to find a single family home there under $600,000. The home of the Seacliff and other high end developments located within a stone's throw from the coastline were not within reach of the average buyer needing down payment assistance. But that's all changed. Huntington Beach is now offering a program giving up to 20% of the purchase price, not exceeding $100,000, as down payment assistance in the form of a silent second mortgage loan at zero percent interest.

As of August 2009, the maximum purchase price is $515,000, a minimum 3% contribution from the borrower, and annual income limits apply: Between $72,300 maximum for one person up to $136,350 for a family of 8 persons in one household. This and similar programs are for buyers who intend to occupy the property as their principal residence.

So how many houses or condos currently on the market might work for this program? There are currently 124 houses and condos in this price range in Huntington Beach. One of them might be for you and your family, if you fit the qualifications of this program. A 20% down payment at zero interest is an opportunity not to be overlooked. If you have the 3%, or $15,450, for your contribution, plus meet the lender's other loan requirements, please call me for more details on this program and finding a lender who can carry out this program.

Long Beach CA Sales Report for November 2009

The downward slide in amount of inventory is not in sight. For houses, condos and lofts, as listed in the SoCalMLS, the number of properties for sale in November 2009, per MLS data, numbered 1,180, about 100 properties fewer than in October, and 795 fewer than in November 2008.

The Long Beach months supply of inventory has gone from 8 months a year ago to 3 months in November 2009, a steady decline.

The high months for new inventory this year were January, March and June.

Properties in escrow--272--are up by 30% compared to one year ago, with the highest number in escrow during May and June, 2009.

The median sold price for Long Beach is up 12% from one year ago, citywide. from $318,000 to $354,750. (Local zip codes or neighborhoods may reflect a different percentage for specific areas.)

The listings decline is just part of the larger picture: Per Zip Realty's survey nationally, the 579,413 multiple listing service listings in the markets is down 27.64% from November 2008. It’s the 17th straight month that gross listings for all markets declined month-over-month.

In the meantime, the distressed properties make up about 50% of the market, and many more are not yet on the market. Foreclosure Radar allows a free map search by city or zip code of REO, auction and pre-foreclosure properties. Most properties still show lower estimated market values than their loan amounts, which could ultimately lower prices in some areas, but the overall median price increase may be testimony to demand for inventory.

Call for a customized report for your area or zip code--this is a great tool to see the overall trends for value and activity, and to see where your listing price or home value is in relation to other competing MLS listings near yours.

For a free general and area property searches, go to the MLS searches at www.juliahuntsman.com.

How Does Bankruptcy, Foreclosure or a Short Sale Affect the Borrower?

The FICO® score was established by the Fair Isaac Corporation and is one of several systems which evaluate a borrower's credit worthiness by assigning a numeric value. A score of over 720-740 points is considered the desired range of eligibility for a conventional loan by many lenders. Before the current economic downturn, a score of 680 was acceptable and eligible for many conventional loan programs, but that score now does not meet many, if not most, current guidelines. The borrower should take into consideration that FICO® or other credit scores are now checked when applying for home insurance, rentals, a car loan, and employment, to name a few, an individual's credit worthiness is an important fact of life. When a borrower is considering the best course of action, they often do not realize exactly for how long and in what ways a distressed property situation will affect them.



The pie-chart shows the parts of a FICO® score found at www.myfico.com and the aspects of a credit score. While there are general estimates as to the "hits" to your score for bankruptcy, foreclosure, short sales, and late payments associated with these events, opinions differ and are not exact, in spite of what information you may find on various internet sites. Other factors in the borrower's credit history may also impact the total score.

However, certain Fannie Mae borrowing guidelines are known:

• A 10% down payment purchase of a principal residence is allowed 5-7 years after a foreclosure sale completion date (3 years for "extenuating circumstances").
• A 10% down payment purchase is allowed for a principal residence and other types of properties 4-7 years after a deed-in-lieu was executed.
• 2 years after a "pre-foreclosure" sale (may or may not be same as short sale conditions).
• 4 years after a bankruptcy discharged or dismissed.
• 2 years after a Chapter 13 bankruptcy is discharged or dismissed.

FHA may have slightly more lenient guidelines for post-event home purchases, and the borrower should check with a lender. The idea here is not to give a complete listing of guidelines--a discussion with an experienced lender would be good for that--but to let the borrower know what the timeline will be depending on his/her actions and plan accordingly. The potential tax consequences depending on circumstances of the property should be reviewed before filing for bankruptcy, for example.

The choices in some cases are not avoidable, but in all cases, a borrower should obtain more information to be prepared.

No More Paying Loan Modification Fees in Advance

Effective October 11 through January 1, 2013, no one (and that includes attorneys, real estate professionals, lenders and everyone else) may charge advance fees for arranging loan modifications for 1-4 residential units--that means your house, condo, duplex, triplex, fourplex, or other type of home.

Many borrowers have paid, and lost, anywhere from $3,000 to $8,000 without obtaining the desired loan modification. For some people, this meant losing their financial cushion to people who could not deliver. Prior to this law coming into effect, the Department of Real Estate's legal requirements for taking advance fees were complied with by a rather short list of entities and individuals statewide--it was extremely short when compared with the huge numbers of loan modification companies, groups or entities advertising their services everywhere you looked.

Fees may now be collected after promised services have been performed (but the law does not apply to loan modification fees and agreements entered into before October 11).

Making Improvements to Your Property: Where Should You Stop?

There are two types of property owners: homeowners who will move in and live in the property, and investors who never plan on living in the property.


The following points are mostly for investors who are "rehabbers", but owner occupants might find some helpful points here as well in order to gain perspective on a project.


Don't overimprove a property. It's a common mistake to think that all the money put into a property will be added to the original buying price so that the owner will obtain a 100% return on the brand new kitchen, brand new bathroom, or brand new hardwood flooring. Watch out for the following problems if you bought a property to fix and sell:

• Falling in love with your property.
• Remodeling it as if it's the home you've always dreamed about.
• Trying to make it a model home.
• Making upgrades or improvements to show how well you do them.
• Justifying an improvement because it adds to curb appeal (non-monetary return).
• Applying the same formula to every property.

Keep in mind that a buyer doesn't care how much you spent. There is a difference between doing a good rehabilitation and fixing up the house vs. injecting your personal living standards into your choices. Buyers often understand the difference, and even though they may like all the expensive hardware that came from the historic replica source, they may not see it as adding to the value of the property. You must know the needs of the your target buyer. Avoid making your project what you would buy for yourself--you must make it serve the needs of your target buyers.

You must get to know your local (very local) market. Learn to look at your project the way an appraiser does: no more than one mile out from your property, and less than that if it's a different type of neighborhood. Learn what people in the area of your property are really looking for: what do they identify with. They buy in a certain area for a reason, so find out what they admire about their location, the style of homes in the area and why they want a 1970's house, a 1950's house or a 1920's house--there are huge differences in those groups. There were major sociological changes in the generations that served those houses, so taking a 1920's house, ripping out a formal dining room wall and adding a breakfast bar is often viewed as a major flaw by buyers who prize that era of housing. Putting in the same formula kitchen and bathroom re-do in an older area built up over time which contains diverse historic architectural styles could be the wrong decision. Buyers who like older homes want precisely that--a rehabber is probably going to serve the local market far better with modern improvements that blend with the era of the particular custom home, not the one-size-fits-all contractor approach. If you're a contractor, you will need to expand your perception of what it takes to market and sell a home.

For homeowners, take time to think out your ideas, consult with an architect if necessary. Do they work well with the original design and purpose of your particular home?. Mistakes I've seen lately include:

• Enlarging a bathroom in an original 1940's house to include the latest jacuzzi bath, window styles, 1920's(?) floor tile, and hardwood cabinetry which does not match the rest of the house, all by taking a closet of the neighboring bedroom. This now changes the number of bedrooms the house has, potentially lowering its value for many buyers.
• Converting a kitchen pantry into a second bathroom which opens directly into the kitchen. Bad floor plan.
• Removing original doorways in order to obtain more kitchen space so that the original circular traffic flow of the home is now obstructed.
• The aforementioned breakfast bars added by losing a dining room or kitchen wall.

Consult with sources about calculating the return on improvements, including cost vs value reports in Remodel Magazine. In the end, it's important to find out what original features of a property are desired by the local market, whether you're a homeowner or a rehabber, because those may be what brings the buyer when the property is on the market next time.

Long Beach CA Sales Report for October 2009

For residential 1-4 unit properties in Long Beach (that includes condos, houses, lofts, for October 2009, the median price is down 3% from one year ago: $340,000 down to $329,000 for the city.

• The number of sold properties reached a high point during the summer, but in October the total number of sales decreased by 20% from one year ago.
  It also took less time to sell a property in 2009 than in 2008.
• One of the most dramatic pictures continues to be the decrease in inventory by over 50% since one year ago--
• This has been a steady decline in inventory over the last 12 months, to just over a thousand residential properties on the market at the end of October 2009.
• The number of properties in escrow is up by 23%.
• The number of new properties listed is down by over 31% from one year ago.
• What this all adds up to is the months' supply of inventory has decreased from 7 months one year ago, to 2 months this year, meaning at the current rate of sales, all housing inventory in the category would be gone in two months, if no new listings came on the market.

For buyers, especially in the market under $400,000, this has meant fierce competition, not just in Long Beach but in the entire Southern California area, since this is the market that is in the most demand for 1st time homebuyers that make up at least 60% of home sales at this time. Buyers in this range continue to be out bid by all cash, or more cash down payment, buyers. For this group of buyer it's very important to be persistant and to be patient (although after both buyer and agent have been through many many rejected offers, it takes even more fortitude than ever).

The West Coast market should be helped out in 2010 as the temporary jumbo loan limits initiated for 2009 have been extended through 2010 . Nevada, California and Florida are the top 3 states nationwide in number of foreclosure filings, and according to RealtyTrac, and October was the third consecutive month for a drop in numbers of foreclosed properties, however, what the impact of foreclosed inventory will bring in 2010 with new scheduled loan resets remains to be seen.

For a more specific look at your neighborhood or zip code and pricing your property to sell, please call me or e-mail me to receive a local report. To find all active listing on the market, go to the MLS property tab at www.juliahuntsman.com.

How to Buy a Bank-Owned Home

Just a little humor here, but sometimes how true!

Extension of $8000 Tax Credit--Now Also $6500 for Repeat Buyers

Update November 6th: This bill is now signed into law. The extension for this credit is until April 30, 2010, with a 60-day extension if a contract is entered into before that. First time buyers, this is your big chance! Repeat buyers who currently own now have a great incentive also!

The United States Senate passed a resolution on October 29th to extend the $8,000 first-time homebuyer tax credit originally set to expire on November 30. Once the Senate officially votes on the bill it will move to the House of Representatives, which strongly supports the extension. The Obama administration has also signaled its strong support for an extension of the tax credit.
Aside from the first-time homebuyer credit, the new plan would offer a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits would be available to buyers who sign purchase agreements on a new or existing principal residence, not over a selling price of $800,000, between December 1, 2009 and April 30, 2010, and who will close escrow before June 30, 2010.

The income limits for all buyers would be increased from the present levels to higher incomes of $125,000 per year for individuals and $225,000 for married couples.
The first-time homebuyer credit is also available to those who have not owned a home in the previous three years. The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.
According to the Treasury Department, more than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the first-time homebuyer tax credit.
A California Association of Realtors survey of first-time home buyers shows that 40 percent would not have purchased a home without the tax credit.

Are You Getting Your Garage Door Tax Credit?

Installing a new garage door will give your home a new and refreshing look to your Long Beach, Cerritos, Lakewood, Seal Beach and Los Alamitos home, in addition to giving you certain financial benefits. First of all, by enhancing the appearance of your property, you receive added value, and increased energy efficiency. Tax credits, as part of the February 2009 stimulus plan signed by President Obama, are allowed for installation of approved insulated garage doors on this list of manufacturers.

If your new garage door is installed in 2009 or 2010, you may be able to reduce your tax bill by $1500 with this tax credit or 30% of the product's cost. Among other requirements, the garage must be associated with your principal residence, and expected to remain in service for at least 5 years.

What a good way to add appeal and value to your home, and receive a financial benefit in the tax credit and reduced energy costs at the same time. Many times when there are rooms next to or above a garage, they are the hottest in the summer or the coldest in the winter. These insulated garage doors reduce this inefficient escape of heated or cold air, making you more comfortable and paying less for it in hearing and air conditioning bills. There are a variety of styles to choose from, depending on your taste and color scheme. There is sure to be a door to complement the style of your home.

How Will Gustavo Dudamel Improve Your Neighborhood?

Last night’s live broadcast of a free performance of two major orchestral works performed by the Los Angeles Philharmonic at Walt Disney Hall conducted by the 28-year-old Gustavo Dudamel brought in a new wave—an electrifying wave of music and awareness that will pour over and affect even the most ordinary, the most musically uninitiated. This new conductor of the L.A. Phil, a former child prodigy who has already been professionally conducting orchestras for over 10 years, is a product of the music education program of his native Venezuela, known as El Sistema, the life work of Jose Antonio Abreu, a musician and Dudamel’s mentor. Venezuela’s state of musical affairs, 30 years ago, in the words of Abreu, was similar to how arts is and has been treated in this country:

"Music and art education were at that time confined to families who could afford to buy instruments. I felt that music education and art should be part of the patrimony of the whole country. From the beginning, I had the idea of inserting strong teachers in classrooms in sectors with dire social needs.

"In those cases, it's not just the lack of a roof or of bread, it's also a spiritual lack - a loneliness and lack of recognition. The philosophy of the system shows that the vicious circle of poverty can be broken when a child poor in material possessions acquires spiritual wealth through music. Our ideal is of a country in which art is within the reach of every citizen so that we can no longer talk about art being the property of the elite, but the heritage of the people."

Venezuela has had all the problems of children of poverty who are deprived with few opportunities for enlightenment. Does that sound familiar? Due to the initial and continuing work of Abreu, government backing and funding of $29 million supplies the funding for a program that involves children everyday in learning classical music from 2 pm to 6 pm, the prime hours our children are left alone without supervision and to get into possible trouble.

Other countries, including the UK, are introducing similar programs. California, its legislators and its schools, need to stop pushing away music education and the arts, they need to stop viewing them as a secondary and insignificant form of unnecessary learning. The mutuality in the Venezuelan system, the emphasis on achievement involving "team" support with parental involvement, providing a lot of opportunity to be the best you can, not necessarily a prodigy, seems to be producing confidant and high achievers in the Venezuelan system whether inside of or away from the field of music. In the words of Jose Antonio Abreu, we too have many children with a lack, a lack of recognition, a lack of identity, and whose loneliness is preyed upon by those who lead gangs and recruit for them, where the end result is crime and more money spent on a large prison population. The study and performance of music and the arts is not for the isolated few, it should be an opportunity for everyone. Right now, gang involvement is an equal opportunity factor in every public school for most, if not all, children in this country, with a tremendous social and financial cost to its citizens. This country, and California, now needs to give other forms of learning and advancement equal opportunity to its masses. It needs its own El Sistema.

While there is no space here to include a full discussion of the postive effect of music on learning, and on the brain, be rest assured it does. The study of music encourages and requires physical and mental coordination, enables poor readers to read better, requires certain math skills, and then gives that music student a worthy goal for which to strive. Wouldn't you like to have that child growing up near you, knowing he or she is living with a productive purpose and the means to do so?

Long Beach Residential Inventory Decreased by 50%

The September graph, shows for a one-year period, the number of for sale residential properties throughout the City of Long Beach (single family houses, condos and lofts). In September 2008, there were 2,265 properties on the market; in September 2009, there were 1,247.

The overall Long Beach months supply of inventory in the same period decreased from 7 months in September 2008, to 2 months in September 2009. In other words, at the present rate of sale, all existing inventory would be sold in two months.

Able and Baker, Two People in the Subprime Economy

Here's what I found in my e-mail today:

Let’s discuss two California families and the real estate market. We’ll call them Able and Baker.

Able sold a home at the top of the real estate market for $500,000 and bought a new home for $800,000, paying 10% down and getting a new adjustable rate mortgage for the remainder. Baker stayed in their existing $500,000 home and we all applauded Able for selling at the top of the market.

There are many different opinions on the amount of the drop in prices but we can all agree prices have dropped, more in some areas than others. For our example, we will use a simplified 35% drop on all homes.

Today, Able is in their home with a loan still around $720,000 and can’t refinance because their value is $520,000. Their property taxes are still hovering around $8,000 per year (my note: but does he know about property tax reduction offered by the county?). This is called being underwater, and they could be facing tax problems because of forgiveness of debt, etc.

Baker decides to sell today and finally move up to a bigger home. Their home has dropped in value and they think they have suffered a loss of $175,000 as the home is worth only $325,000. They sell and buy the former $800,000 home for $520,000. They get a loan for $468,000 at the current rate of under 5% and their taxes will be about $5,200 per year.

They might also qualify for a $8,000 tax credit and other inducements in today’s market. Also, there could be appreciation as the market recovers and would you rather have appreciation start now on a $325,000 home or a $520,000 home? Plus they’re living in their move-up home and the family is happy. So, who is better off now. Able or Baker?

Do you think we're at the bottom of the market?

See http://www.juliahuntsman.com/ for property searches.

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.

Your Southern California Housing Trends Report

A new report -- click on the banner for your 1 Minute Housing Market, video report, metropolitan area quarterly and monthly prices, information on local Southern California prices by city, daily update reports, national housing trends, statistics and demographics, and more consumer articles!

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.