Tag: selling

Before And After: Staging Pictures And Tips

I have a new listing this week, and I want to show you the big difference that properly staging a home can make for sellers. It’s an important step in the home-selling process. Depending on the size and what is needed, it can run from $2,000-$6,000 (or more!), and not every room needs to be staged. The other things – like painting the lava rock – cost $2,000.

If your house already has a good look, there is also accessory staging. That is when they tell you what to take out and bring in. Usually, it’s just a few things, like some bedding and pictures. They might have you do a bit of re-arranging too. In the end, I believe staged homes will sell for more money. There are different percentages that you can search, but I think the before and after pictures are worth a thousand words. See them here:

This home is located off of La Casa Via, behind John Muir and it backs up to Shell Ridge, so it’s peaceful with beautiful views. However, vacant some original fixtures and the lava rock didn’t make it pop for pictures. So, check it out once the stager was done with it. Its transformation is really breathtaking and shows up in the pictures. With no open houses, buyers have to like the home from their first look online through pictures, and professional photos make a huge difference in the lighting.

When asked why the stager recommended painting a dark brown lacquered fireplace mantel white, her response was she wanted it to blend into the background so people were not staring at the lava rock fireplace, but at the views, layout, and overall feel. That is exactly what occurred and I would like to give a big shout-out to Ashley Provost and her team for the great job they did!

Here’s what staging really does: it transforms how the home looks, which helps drive up the price quickly. It doesn’t matter how old the house is, it can always use some good staging to make it really stand out to potential buyers. Here are some tips from Better Homes and Gardens:

  1. Start Simple: A buyer’s first impression of the house is controllable. Start with the easiest task that will have the biggest impact (fresh paint, cleaning, etc.).
  2. Create Space: Remember, a buyer actually wants to see the inside of your home. So definitely space things out and de-clutter rooms before showing.
  3. Clean: Obviously, a clean home is going to attract more attention. Make your house look well-cared for.
  4. Move-In Ready: Simple repairs can go a long way to showing buyers that the house is move-in ready and there will be no to-do list right away.
  5. Envision: Neutralize the space with fresh paint so that potential buyers can envision themselves and their belongings in the house.
  6. Emotion: Remember to keep the home looking like it is comfy to live in and a great place to make memories.

If you need any other tips, feel free to reach out!

Divorcing and selling a home

My friend Jay Vorhees at JVM Lending put out a good blog recently about a tricky subject: divorcing and selling a home. Apparently, March tends to be the peak divorce-filing month because it’s after the holidays but before summer.

Image result for divorce house-buying

Jay has some go-to advice for those who need to know about mortgages and divorces:

  1. The only way a spouse can get “off a loan” is with a full refinance.
  2. Stay cordial before the divorce, because if you want to buy before it is finalized, the non-buying spouse must sign a quit-claim.
  3. It takes 6-12 months of court-ordered payment history before spousal support income of any kinda can be used.
  4. There need to be at least 3 years of future payments before one can qualify for spousal support (i.e., can’t use income if support ends at age 18, and the kids are currently 16 and 17).
  5. Lenders must have a court-approved settlement agreement before a transaction can close, once they find out about a pending divorce.
  6. Divorcing spouses can hire private judges to expedite settlements in order to close mortgages sooner. This can be an affordable alternative (as little as $500 sometimes).
  7. Increasing a mortgage to buy out a spouse is not considered “cash out” as long as all cash proceeds go to the spouse getting bought out.
  8. All marital debt must be accounted for when qualifying, unless there is a court order or decree that specifically states which spouse is responsible for which debt.
Image result for arguing

Okay! That’s a lot of information that I hope none of you ever have to use. However, it is good information if you do or are thinking about it. Call me if you have any questions.

Interest rates and purchasing power

According to Certified Mortgage Consultant Bob Schwab, interest rates you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Check out his comments here:
According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history! The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.
Jay Vorhees of JVM Lending has a take on higher rates and how they affect qualifying, too:
How Do Higher Rates Affect Qualifying? Potentially A Lot.
RATES ARE GOING UP, REST ASSURED
We’ve said that at least a hundred times over the years but this time it is a reality b/c the Fed is no longer buying bonds to push rates down, and b/c the Fed is very determined to push rates up in general. We saw a slight dip in rates recently largely b/c of economic turmoil in Italy, but rates are expected to climb another 1/2 percent this year alone.
HOW WILL RATE INCREASES AFFECT THE QUALIFICATIONS OF A PRE-APPROVED BORROWER?
Rule of thumb: A 1/2 percent increase in rate will increase a mortgage payment by about $30 for every $100,000 borrowed. Hence, if a buyer is looking at a $600,000 mortgage, her payment will increase by about $180 if rates go up 1/2 percent. In regard to qualifying, an increase in rate could easily shave off $25,000 to $50,000 from a buyer’s maximum.
For example, let’s say “Jeremy” the buyer is pre-approved for a maximum $750,000 purchase with 20% down at a rate of 4.75%. Let’s also assume Jeremy’s maximum payment (Principal, Interest, Taxes, Insurance) is $4,000 and his income is $8,900 per month, giving him a maximum debt ratio of just under 45% (all numbers are rounded). If rates increase 1/2 percent, Jeremy’s maximum qualification would drop to about $715,000 b/c that is the most Jeremy could buy in the higher rate environment without pushing his payment over his $4,000 limit.
In other words, if Jeremy’s rate increases from 4.75% to 5.25%, he will lose about $35,000 of purchasing power. What can poor Jeremy do?
A. Consider an Adjustable Rate Mortgage (ARM). Jeremy can knock as much as 1/2 percent off of his rate by considering a 7/1 ARM. Knowing that very few buyers ever keep their mortgages more than 7 years will help him rest easy with his ARM.
B. Buy now while the getting is good! If Jeremy is hellbent on a 30-year fixed rate loan, he should buy now to lock in today’s rates. BUT – we will still remind Jeremy that even if rates are in the mid-5’s, they are STILL a “gift” by historical standards.
C. Buy a $50 tent and a motorcycle, and skip the house thing. I did that in my early twenties, and it was really fun. Jeremy might want to do the same. But don’t worry, we won’t suggest it. Lastly – should Jeremy worry that higher rates might hurt home prices? According to this blog, no :).
Note:  for those living in a rabbit hole, last week the Feds raised interest rates and stated instead of one more rate hike, it will most likely be two more this year and then 3 more in 2019.

Real Estate is a GREAT investment!

Buying a house can be terrifying. Selling a house can be equally as difficult. The entire process is stressful, but the end result is often worth every second of the struggle. Bob Schwab, a mortgage lender in our office, often shares great information, and points out this is because investing in real estate is a solid decision!

For the fifth year in a row, a Gallup poll showed that real estate is the best long-term investment out there. This year, 34 percent of Americans chose real estate as the best long-term investment, followed by stocks (26 percent). You can see the chart, stolen from Bob’s blog, below:

Just five years ago, gold was the most sought-after long-term investment with 34 percent of votes. Even back then, real estate was in second place, though the economy was recovering from the economic crash that preceded it. Overall, the real estate market is in good shape and people seem to agree that it’s a stable, long-term investing option.  Rates are rising, so now may be a good time to buy check out this graph that shows how much buying power you lose as rates go up.
You can always give me a call to help you make that investment – it is, after all, my job!

How to survive a remodel in your relationship

I found this graphic from HomeAdvisor and the California Association of Realtors pretty funny. It says:

“More than half of couples who complete a remodeling project with a spouse or domestic partner admit to arguing during the process, and 3% even considered separation or divorce!”

While reaching that conclusion may be a little extreme (and maybe indicative of larger problems…), remodeling really is difficult on yourself and your relationship. Even just picking an agreeable paint color for the walls can be tricky.

As the graphic states, communicate more with whoever you’re doing the remodeling project with, and you’re bound to be better off. I know firsthand how difficult the buying, selling, remodeling, etc. processes can be, and the only way to survive them (even the easy ones!) is to be open and honest about everything you want to do.

Take my word for it, so you don’t end up looking like the characters in this little graphic! You can always call on a friendly realtor like myself for advice on how to best survive this daunting task.

Weimaraners & Real Estate

As I’ve expressed here before, my best moments as a realtor come when a client buys their dream home with my help. That happened recently, and the backstory is almost as cool as the moment they shared getting the keys!

I met Wilbur and Aimee through NorCal Weim Rescue, where I got my dog Bodie and occasionally foster dogs for them. At the time, Wilbur was renting and had two Weimaraner puppies (Roxie & Daisy), but the landlord just landscaped the backyard and did not want two big dogs in addition to their small one.

So he surrendered them to NorCal Weim Rescue, who did not want to split the dogs up and I fostered them – see pics below. Roxie was very dominant over her sister and even when they were at a trial run at another home she would growl at the husband, so that didn’t work.  Then Wilbur’s landlord said he could have one dog back, he got Roxie the light Weimaraner pictured here and Daisy found her fur-ever home in Bishop. And they later got Jax, the Blue Weim

They knew I was an agent and I said if you ever decide to buy, let me know.  A few years later, their landlord wanted to sell his house and called me up! They realized they couldn’t buy the house they were renting, so off we went looking in Livermore.  After being in contract and finding the HOA only allowed two dogs, we were back in the hunt. Three offers later, lots of conversations with the lender, and perseverance by all is when Aimee and Wilbur landed a wonderful home and a great place for their fur babies!

Now, Wilbur, Aimee and Roxie (dog) (as well as Jax (dog #2) and Duke (dog #3 smallest with the biggest name) can happily call their Aspenwood house in Livermore home for many years to come!

The universe provides the right house

Don’t get me wrong – the right house for you won’t just magically appear out of thin air! People like me do a lot of work to find you your dream home and get it all properly situated. But there is a lesson in real estate that I believe is valuable: The universe always provides the right house in the end.

You can always look back with regrets, but there are reasons for everything. Even reasons for why getting your dream house took so long or why you didn’t get the first house you loved. The right one always comes along! Check out this graphic from the California Association of Realtors.


As you can see above, most homeowners didn’t find their home for at least 3 months. Whether it was price, location, aesthetics and amenities, or simply just being outbid, it is very common to not get the first house you offer.

That’s why you have me! I’ll be the one to help you attain your dream home by walking you through the process, preaching how important patience is, and making sure the whole, stressful process runs smoothly. In the end, the universe always brings you the right home!

11 reasons your home isn’t selling

RIS Media shared a story from Charles Muotoh giving 11 reasons your home may not be selling. I found the piece very interesting and have summarized the points below, and added some commentary. Let me know what you think!

You overvalued your property: Overpriced homes will not sell. Simple as that. If you have an experienced real estate agent, they can give you an accurate value of your home.

Your listing is poor: You can’t poorly write the description of your home without any images. It will be skipped. Work with your realtor to make the listing attractive and interesting.

You’re always present at showings: Do not get in your agent’s way at showings. Let them do what they are experts at. Buyers don’t want you hovering over them the whole time anyway.

You’re too attached: If you are too stubborn to refuse to negotiate your price down, then there’s a good chance that you’ve become too attached to your home. That will make selling difficult.

You haven’t had your home professionally cleaned: What kind of buyer in their right mind will want a dirty house? Ask your realtor to recommend a professional cleaner for the carpets and windows before showing your home.

You haven’t staged your home: Never show an empty house, because it’ll make it hard for buyers to picture living in it. Always have it staged. Your realtor should have a stager on speed dial!

You kept up all of your personal décor: If you keep your home personal (with pictures, etc.), buyers will feel uncomfortable in your house. Take those down before showing the home!

Your home improvements are too personalized: If you tailored your kids’ rooms to their specific obsessions, that’s great…until you need to sell the home. Those little touches could scare off buyers.

Your home is too cluttered: Clutter can still be an issue in a clean home. Don’t keep too much furniture in the rooms – it will make your house feel smaller than it is!

Your home is in need of too many repairs: If a buyer knows he or she has to do a bunch of repairs, they are less likely to want to make a move. That’s a lot of extra effort and cost on their parts, even if the repairs are minor.

You choose the wrong real estate agent: You may have noticed a theme throughout many of these previous points. Choosing the right real estate agent is absolutely essential to the selling process. We can make all the difference in selling your home for the right price, in a reasonable amount of time!

Congrats to two happy clients!

I want to offer my sincerest congratulations to Amanda and Siubhan on their recent closings!

Amanda, a past client of mine, decided she wanted to pursue her dream of having land, horses, chickens and a big garden. When a piece of land became available in Vacaville, she decided to make an offer and it was accepted! We then rushed to get her Concord home ready over the Thanksgiving holiday and were in contract by December 9th. Whew!

Siubhan is another past client who had bought a condo in Antioch four years ago, but had not been living in it for the last year or so and could not rent it out due to rental restrictions. She felt now was the right time to sell. Twelve offers and $26,000 over asking price later, Siubhan is excited to take a trip back to Scotland to visit family.

I would love to know your story and help you accomplish your dreams, reach out to me or visit my website: www.kristinlanham.com.