Divorce and Real Estate Sales

I just read an online article about the hassle of trying to reconcile a divorcing couple enough to get a house sold. Nowadays, there are fewer reasons that homes are put on the market. Years ago, a "move up" was caused by a wish for an extra bedroom or a different school district, or even something as minor as the desire for a pool. In 2010, homeowners are more concerned about job security and volatile investment portfolios, and our inventory is low because most people are staying put if they possibly can.
If they are selling a house, it is usually because they are forced to sell. Causes range from knee problems that make two story living difficult, to more serious ones...money problems, death and divorce.
I remember regular speaker phone conversations between the Realtor I tour properties with and her acrimonious divorcing clients. One would OK staging the house, the other would veto the expense. One would agree to a reasonable listing price, the other would insist on an inflated value....and on and on. It's a wonder that the house finally sold.

Staging, Vacant Houses, and Lazy Agents

Yesterday, a couple of us went on our regular tour of new listings in the area. It was a shock to see the difference among the properties for sale. The sky was overcast, and the cold and cheerless feeling of walking into a locked and unheated house didn't help. The dark, bare rooms accentuated all the negatives in these houses, and the lack of a listing agent there to greet us...and perhaps point out unseen positive features such as copper plumbing...made for a quick departure. With no heat on a chilly day, the interior of these vacant houses can be 10 or 15 degrees colder than outside. Our tour rules in the local board of Realtors do not require the listing agent to be present if the house is vacant, but...
Contrast these houses to properties that were warm, beautifully staged, and well lit. The listing agent was there to greet us and answer questions, and was prepared with colorful flyers describing the home's features. Often refreshments were set up in the kitchen or patio to induce us to linger, and to remember that house when we showed properties...so much positive enforcement for so little effort!

Local Market Trends

We might see a much earlier spring selling/buying season this year because of the upcoming deadline for the home buyer tax credit. The "hot" season typically takes off in March and runs through May. But buyers who want to claim this year's tax credit, which ranges from $6,500 to $8,000, must purchase their homes by April 30 and close by June 30. So look for more activity than normal in February and March as we head toward the finish line. Some better economic news has also prompted more people out along with the continued low interest rates.
Inventory is still an issue in most markets, leading to busy open houses, and many homes are being sold with multiple offers...helping to firm up sales prices.
Buyers are circling attractive listings and many are willing to make all-cash offers to win out. Cash is still king, because appraisals continue to be an issue, and because lending is taking longer.

Valentine's Day Realtor-Style

The Cupertino/Sunnyvale District of the Silicon Valley Association of Realtors celebrated Valentine's Day in a festive manner again this year, and it was all for charity.
The District's Valentine Auction for Charity, held yesterday at our weekly tour meeting, featured many beautiful, sweet and some very delectable treats. Agents and affiliates bid, laughed and rooted one another on to contribute to the annual event.
The Cupertino/Sunnyvale District is known for its charitable contributions to area causes, such as Sunnyvale Community Services. Gift donations generously made by some members added to the fun of the event.
Carolyn Miller, chair of the auction, said, “Some newcomers asked if the weekly meetings are always this fun. We said, ‘It's not always an auction, but the meetings are always fun and informational!’”
The District first held the Valentine auction three years ago “as something different to do,” and it has turned into an annual event.

Thirty Eight Years in the Business...and Still it Surprises Me

I had a new experience this weekend. My clients found a house that appealed to them, and we prepared to write an offer. We were to meet on Sunday, and offers were scheduled to be presented on Monday.
Yes, "offers." Almost every house for sale in our area is seeing multiple offers...even those in the million and up price range, as this one was. On Saturday night, the listing agent called me. The sellers had canceled the weekend open houses, and hinted that they wanted to move out of the retirement community where they had recently settled, and back into their long-time home.
I asked the listing agent what she thought that I should do, and she suggested that we still write the offer...just in case...which we did. But today, the MLS showed the listing as withdrawn. Back to square one.
Realtors from Sonoma to Carmel and San Francisco to Danville are noticing a surprising trend –a critical shortage of homes for sale. At the entry level, and in many mid-price level markets, we have plenty of people willing to buy, just not enough homes to go around. My how things have changed in the past year! To quote one of our managers, the new lament among local Realtors is, "so many buyers, so few listings.”
What’s happening? First-time buyers are rushing to take advantage of the federal tax credit before it expires this spring. Unfortunately, we aren’t seeing a commensurate number of sellers bringing homes to the market to capitalize on this. There are inventory shortages throughout the Bay Area. Open homes are attracting a flood of serious buyers. The result is that attractive, well-priced homes in good neighborhoods are getting lots of interest and, in some cases, multiple offers.
So by and large, it’s pretty much a conversation about inventory when you talk about our Bay Area real estate market. Even the luxury market, while admittedly slower than lower price points, has inventories trending down. Accuracy in pricing and attention to detail in showing condition remains critical in the luxury markets, but sales activity is picking up and inventories are going down.

Look Ma...I Can See

I haven't written in this blog for a week, but I've been busy taking care of some minor health problems. Thanks to wonderful Doctor Volpicelli and his staff in Mountain View...and two cataract surgeries... I am now able to see to read and drive without glasses again. What a pleasure! It's more than annoying for a Realtor not to be able to see house numbers. "Lola," my GPS finds the street and general location, but then I'm on my own. Last night, I bought my first pair of non-prescription sunglasses in years.
Anyway, I'm now back to my normal schedule of meeting with buyers and sellers and previewing properties, just in time for what is shaping up to be a busy real estate season.

A Positive Move

An item hit the business news this weekend that reflects a good change in the rules affecting real estate...for a change.
FHA is suspending the "Anti-Flipping" rule that has been on the books for ten years. It had required that investors hold a property for 90 days before it could be resold. This was originally written to eliminate fraud and 'serial' flipping of the same property.
With the large numbers of foreclosures in poor condition now coming on the market, though, this gives buyers with low down payments a chance to buy renovated homes. It usually takes 60 days or less for an investor to buy, rehab, and list a house for sale. Now FHA is making these homes available to buyers with small down payments, not just those who have 10% or more.