*Two new refinance programs for underwater homeowners
 
*More than a quarter (26%) of those who refinanced between January and June chose a 15-year fixed-rate mortgage, according to CoreLogic data, digested by Marketwatch. Read the remainder here

*The 10 banks that received the most bailout aid during the financial crisis spent over $16 million on lobbying efforts in the first half of 2010, as the debate over financial regulatory reform reached its height. Disclosure reports show that the banks that got the most government help in late 2008 and early 2009 also invested the most to influence members of Congress, the White House, the Federal Reserve, Treasury Department… Read the remainder here :   

And for today’s giggle:  Home Staging on a Budget

And now, I will begin to work on August's real estate statistics.

8 Home Maintenance Tips found at my Homeowner’s Newsletter

Remember the listing I had on Saticoy with the street to street lot?  The first time it sold, I came across the cranky appraiser,  the one who would not even look at comparables I wanted to provide.  As much of this home’s value was derived from  the large street to street lot (possible subdivision) I suspected that the appraisal would come in low.  We didn’t want the buyer to be out of pocket for the appraisal fee so the buyer attempted to switch lenders in order to have a different appraiser.

But due to a question of owner occupancy the other lender required 25% down. The lender didn't believe that the buyer was going to occupy the home because the square footage was ten feet smaller  than his existing home.  Didn’t matter that the lot was over 16,000 square feet.   Apparently, we still haven’t returned to common sense lending.

Saticoy, Round 2:  Sold it a second time, again for full price.  This time the appraiser did meet with me and allowed  me to offer comparables, BUT the appraisal still came in low.  We sold for $260,000 and the appraisal came in at $225,000.  So what is a property worth?  … What two different buyers are willing to pay or the appraised value?



We had a back up cash offer for $250,000.  But the seller was reluctant to start a third escrow, so the seller agreed to reduce the price to the existing buyer to $250,000.  The buyer accepted and we are finally closing escrow today. 

Related Posts:  What is a real estate comp?
A lesson in appraisal rebuttal 
Not all appraisers are created equal 
Appraisal problems becoming common in Los Angeles

The way we live in a home and the way we present it for sale are completely different. Home staging is simply a professional assessment as to which repairs are going to pay off in time and money spent.

An integral part of the Harb  & Co Team  is a professional home stager, who is an interior designer by trade.  Our stager, Charis walks through our client’s home and advises them on minimal changes, often just rearranging furniture and decluttering.  Staging does not need to involve spending money.

Of course, if you are considering painting she will offer you color advice.  Perhaps Charis might suggest a different light fixture, cabinet pulls, a more neutral bed spread or fresh flowers in the front yard.  How much or little our clients do is their decision.  Our stager, Charis suggests but each home seller’s needs are different.  Some sellers don’t want to go through the time and expense and will choose only to declutter, others want the highest possible price for their home and they may follow most of her recommendations.

We have just one opportunity to make a positive first impression Once your home comes on the market it should be clean and inviting.  Our goal is for the buyer to walk in your home and imagine living there. Ideally they will envision cooking a meal for family and friends or curling up in front of the fireplace. 

Related Posts: How to sell your home for the least amount of money Part 2  
Bathroom Hot Buttons  
Think neutral for resale  
Why does Phyllis Harb hire a decorator just for you?
Maximize your bottom line when selling your Los Angeles home 
Home staging basics  

My listing located at 3609 Encinal in La Crescenta has not sold. We had back to back open houses and after a month on the market no sale.  This home offers a granite kitchen and an enormous family room. In addition there are solar panels and the owner’s electrical bill is typically just the cost of the taxes – around $20.00. 



So why hasn’t this home sold after a month on the market?  The back yard is not large and the owner had two sheds and a sauna in it.  There also wasn’t any grass. The owner has removed the shedsand patio cover and has installed grass, and sprinklers. 

BEFORE:                                                                   AFTER:


BEFORE:                                                                     AFTER:


Now the question is timing, when should we come back on the market?  It’s a difficult decision, as the seller wants to move but understands that the first 10 days of marketing is critical, we don’t want buyers or their Realtors distracted.  Labor Day Weekend is looming, back to school, Rosh Hashanah and Yom Kippur. 

We have decided to come back on the market on the 20th, it will be open 10-2 on Tuesday, September 21st and again on Sunday the 26th from 2-4. BUT if you want to see the home before it is back in the MLS, let me know and I will arrange the showing.

If you have been reading my Los Angeles Real Estate blog you know that short sales and foreclosures have had a major impact on values in Los Angeles County.



For some homeowners, difficult choices need to be made.  Consulting with a tax professional and an attorney are advised.  If you can no longer afford your home, what are your foreclosure alternatives? 

1) Loan modification:  If you have previously attempted a loan modification without success, servicers are now more motivated and it’s worth another attempt.  Home Affordable Modification Program (HAMP) includes opportunities to modify or refinance your mortgage in order to make your monthly payments more affordable. This enables you to remain in (and afford) your home. Contact your servicer (who you make your payment to); be prepared for lots of paperwork, and make copies, in the event it gets lost in the shuffle.

If you are not successful with a loan modification:

2) Short Sale:  Contact an experienced Realtor®,   (such as me) for a confidential consultation.  Each lender and each situation is different, but in some instances, the home seller may be eligible for $3,000 in moving costs.  A short sale will avoid having a foreclosure on your credit report.

3) Deed in lieu of foreclosure: Contact your servicer; they may accept your signing the property back to them in lieu of a lengthy foreclosure process. This too will avoid having a foreclosure on your credit report.

What to expect during the foreclosure process?

Contact to work out: Recent legislation was passed that prior to initiating the foreclosure proceedings the lender must contact the borrower (certified mail, phone or in person) and try to arrange a loan modification.

Notice of Default (NOD):  After the servicer has attempted the above contact, and after a borrower is 30+ days delinquent the lender will file an NOD.  By law these notices are public record and published in the newspaper.   You will have 90 days to reinstate (bring your loan current).

90 Days after the NOD was issued: If the loan is still not current, a Notice of Sale is filed.  This date must be at least 21 days from the date the Notice of Sale was filed.

Foreclosed: The property was foreclosed and you are no longer the owner.  Typically the servicer‘s Realtor® (or the new owner) will contact you regarding your moving. Often they may offer the homeowner “cash for keys”.  If the homeowner does not accept a cash payment (usually less than $5,000) in exchange for moving in a couple of weeks, the lender will likely initiate eviction proceedings by hiring an attorney.  

Related Posts:  How long is it taking lenders to foreclose 
Los Angeles foreclosure timeline  
Can you be held liable for the lenders loss after foreclosure 

As summer winds down, families head out of town for their last getaways.  Others are busy with back to school preparations.  

Once the kids are back in school, and Labor Day weekend has passed, the market usually gets back in swing and I expect this year to be no different.  Lisa, Natalie and I still have well qualified buyers seeking their perfect home. Interest rates are low, and will likely remain so, at least in the near future.

Many Europeans take the entire month of August off and my girlfriend from Rome is in town for the month.  I am looking forward to spending some time with her this weekend before she returns home.

And another swim in my pool would be lovely too!

One should always have an eye on future resale when they make improvements to their home. But resale has different meanings for different homeowners.  Are you going to be selling in a few years or in decades?



George and I bought our home fifteen years ago.  We wanted a pool and knew that we would not get dollar for dollar when we decided to sell.  Thirteen years ago we put in our pool and have derived thirteen years of pleasure.  It likely would have been more cost effective for us to purchase a home with a pool, but the home we fell in love with didn't have a pool.

We have had countless birthday and pool parties and in my opinion, have gotten our moneys worth.  Especially this week!

Related Post: How much value does a pool add to your Los Angeles Home   

Most sellers are required by law to complete for the buyer’s approval, a Transfer Disclosure Statement.  In this form, the seller notifies the buyer of any known items in the home which are not functioning properly, any known neighborhood nuisances, and a variety of other items that may be of concern to the buyer.

  

Phyllis Harb recommends that you have a home inspector conduct a thorough investigation of your property. It is suggested that you attend the inspection with me, so that you can understand the findings and to have any questions answered. The approximate time of the inspection varies depending upon the size of the home. The purpose of this inspection is to give you a professional opinion of the home’s condition.

How do you find a home inspector? Ask for recommendations, from anyone you know who recently purchased a home.

Your inspector will provide you with a detailed written report which will include a list of items that are not properly working, many will be unimportant, but some may be very important. It is common to feel overwhelmed after your inspection. You have just discovered that the home you love has flaws. Take a deep breath, not all of the defects are that important and don’t be reluctant to phone your inspector to ask for his further advice and opinions.  You may need to obtain contractor’s bids for some of the larger items uncovered so that you are sure of the costs you might be facing.

In addition to the home inspector, you may elect to hire additional inspectors or specialists to inspect the fireplaces, foundation, sewer/septic, roof and or pool. Talk to me and or your home inspector if you have any concerns regarding these items.

You may make a written request to the seller to correct any defects that are unacceptable to you. No home is perfect - not even a new one and often the condition of a home is a reflection of the price paid. Frequently, sellers will live with minor problems in a home for years and may be unwilling to correct some of the “little things”. If you and the seller are unable to come to an agreement, you may cancel your escrow and assuming that you had an investigative contingency your deposit should be fully refundable.

Each morning I log onto the GESecurity website and obtain the readings for my lockboxes.  I then email the showing agents requesting feedback.  The comments (feedback) are forwarded to the seller, and printed for the file.

Comments are evaluated as a whole.  If the home has an outdated kitchen, of course there will be comments that the potential home buyers did not like the kitchen.  But sometimes there will be other remarks, maybe the home is difficult to show, perhaps the owner has a dog locked outside and the yard can’t be viewed.   

Feedback is evaluated and action is taken.  Most listings (under $1,000,000) should sell within the first 30 days, and if they don’t, then a new Game Plan is in order.  After less than a month, my La Crescenta listing on Encinal was taken off the market. We are still going to sell, but just restrategizing.  

Stay tuned to learn the how, what, why and when.