Contra Costa, California Real Estate

Dear Short-Sale Seller,

We understand that you have suffered a financial set-back and it's the last thing you ever expected to happen in your life.  We know that you loved your home and didn't really want to sell it. We understand that you have dealt with the lender for months and are angry. We know you don't have discretionary funds for maintenance and repairs and didn't blame you for the deteriorating condition of the home.  

We, too, dealt with your lender for months because we stayed in contract for the long haul. When the lender wanted to receive the top of fair market value but refused to pay for the Section 1 repairs, we didn't bail. When the home was 12 hours from foreclosure, we spent an afternoon getting the notarized signatures from all parties as requested by the lender in order to delay the Trustee Sale. We closed in 22 days. 

We were part of the team that kept your home from foreclosure. Could you have considered thanking us with a little elbow grease? Was it too much to ask to have the carpets vacuumed, the counters wiped off,  the oven and stove top clean?  Could you have taken a little time to remove the hair from the shower drain, the trash in the garage and the dog poop in the back yard?

Does it bother you to know that even though you had over a week to clean a little bit at a time after the closing documents were signed, we had to hire a professional house cleaner at a premium price to get it done in the 1/2 day before the moving van arrived?

We are very disappointed,

Your Short-Sale Buyers

(Many homes in short-sale transactions are left spotlessly clean so this should not be construed as the norm.)

Starting January 1, 2011, California Senate Bill 931 prohibits lenders from obtaining a deficiency  judgment against the seller after a short sale. 

According to the Bill, the lender's written consent to the short sale requires them to accept the sales proceeds as payment in full and discharge the remaining balance owed on the loan.

This applies to first Trust Deeds (more commonly known as first mortgages) secured by one-to-four unit residential property, but doesn't limit the lender from seeking damages for fraud or waste by the seller.

Yep, it's true, sometimes Realtors are blessed with REALLY SMART HOME SELLERS! This is my tribute to Andy and Cricket (Rita) who win the prize!

Really Smart Home Sellers:

* Understand that Realtors aren't responsible for the decline in market values.

* Understand that even the BEST home on the block (and this house is beautiful!) still won't net the price paid 3 years ago (not to mention the cost of the upgrades).

* Understand that to get the best possible price in the current market, the home must always be in showing condition (there is no "get out of jail free" card on this even if you have a child under the age of 2, which they do).

These are the extra efforts my Really Smart Home Sellers did for the buyer when the transaction closed which is why they win the prize:

* As they were packing to move to their new home, they realized there were several items they didn't need or would replace and offered it to the buyer for FREE.  These included patio furniture, a lawn mower, hoses for the front and back yard and custom paint.  Yes, they could have charged the buyer a few hundred dollars but they chose not too.  Can you imagine how thrilled this 1st Time Home Buyer was?

* They left the home immaculate - absolutely spotless!

* They left a bottle of wine, a "Welcome" card for the buyer and their email address in case there were any questions.  It will come as no surprise that the buyer sent these Really Smart Sellers a "Thank You So Much" email raving about the house!

The marketing utilized to sell luxury homes is a fascinating comparison of "old" and "new" real estate strategies, leading to the question "Does past luxury home sales experience equal current results?"

In the past, selling luxury homes depended on WHO you know. 

Prior to the onset of the internet as the #1 real estate search tool, it was important to have a Realtor that was personally well-connected in the luxury market.  The breadth of their social sphere had a fairly direct correlation to the number of potential buyers for a luxury home.

In today's market, selling luxury homes depends on WHAT you know.

The internet has broadened the base of potential buyers from a Realtor's local sphere to the world.  In order to effectively reach the worldwide audience searching for luxury homes for sale, a Realtor must know Search Engine Optimization, effective use of long-tail keywords for Google searches, how to place visual tours with a professional voice-over in YouTube, the real estate sites dedicated to luxury properties that have multiple languages and/or currencies.......the list goes on, but you get the idea.

As a luxury home seller, should you care?

In the heyday of luxury home selling when rates were low (still are) and jumbo financing was easy, there were an average of 181 luxury homes for sale in the prices ranging from $1.5m to $3m in Contra Costa county, California with an average of 37 homes sold per month.  In other words, 20.4% of the luxury inventory for sale actually sold every month. 

For the most recent 12 months ending March, 2010, the sold figures get ugly.  There were an average of 166 luxury homes for sale with an average of only 11 homes sold per month.  Ouch! Only 6.6% of the luxury inventory for sale actually sold.

Since luxury home sellers are battling for a significantly decreased pool of buyers, my curious mind wondered, "Is everything possible being done to market these properties to a world audience?" I researched the Expired and Canceled luxury listings for a 6 month period and the results shocked me. 

Of the expired and canceled luxury listings, 8% didn't have the 9 pictures allowed on MLS (Seriously? You can't find 9 good pictures of a luxury home?) and 24.4% didn't have a visual tour. 

Combine the two and 32.2% of the expired and canceled luxury listings (i.e. unsold) didn't have the bare minimum to get the highest "click through" rate on Realtor.com, much less the additional marketing necessary to succesfully reach international luxury home buyers. 

My blog titled "Silent Suffering in the Luxury Markets" generated phone calls that brought some important luxury market misconceptions to light. 

Misconception number 1:  I am the only one in my community struggling with changes in my financial circumstances.

I discussed this very point in the above referenced blog.  This is a group homeowners that, for the most part, are highly educated, upwardly mobile, have never suffered a difficult financial setback, believe they are alone in the struggle and need to hear from my voice to their ears that they are NOT alone. 

Misconception number 2:  Loan modifications and other options to foreclosure are only available to low income homeowners.

There are no income limits for loan modifications.  The criteria for consideration is a valid financial hardship that is making it difficult to meet the mortgage payment. 

Misconception number 3:  A Realtor will always tell me that selling my home is the best option because they want a commission.

I am not in a position to speak for the industry as a whole, but I am one of a group of dedicated Realtors who seek first to help you stay in your home.  If that isn't a viable option, I then help you review all of the options to foreclosure and provide documentation and checklists for you to take to your attorney and tax accountant for their professional opinions.  Only then, and only if a short sale is your best option, will I list your home for sale.

Real Estate Market Report for Orinda, California.

Active Listings

Number of Active Listings = 46, of which 6 are either short-sales or bank-owned property

The Highest Active list price is $3,695,000

The Average Active List Price is $1,442,872 with a Median* Active List Price of $1,222,000

The Lowest Active List Price is $400,000

In Contract and Pending

Number of sales pending = 18, of which 7 are either short-sales or bank-owned

The Highest Pending List Price is $1,395,000

The Average Pending List Price is $972,655 with a Median* Pending List Price of $997,475  

The Lowest Pending List Price is $360,000

Note:  Actual sold prices are not disclosed until the transactions are closed.


This week's market activity by Quartile:

Closed Orinda home sales for the month of February, 2010

Number of closed sales = 7, of which 2 were short-sales or bank-owned

The Highest Closed Price is $1,700,000

The Average Closed Price is $1,145,385 with a Median* Closed Price of $945,000

The Lowest Closed Price is $749,000

* The Median is the mid-point of the market where 50% of the transactions are above and 50% are below this point.

For additional details, please visit my interactive real estate trend chart for Orinda, California.

Real Estate Market Report for Lafayette, California.

Active Listings

Number of Active Listings = 72, of which 6 are either short-sales or bank-owned property

The Highest Active list price is $5,800,000

The Average Active List Price is $1,617,583 with a Median* Active List Price of $1,282,500

The Lowest Active List Price is $498,000

In Contract and Pending

Number of sales pending = 28, of which 7 are either short-sales or bank-owned

The Highest Pending List Price is $3,295,000

The Average Pending List Price is $1,059,528 with a Median* Pending List Price of $804,500  

The Lowest Pending List Price is $475,000

Note:  Actual sold prices are not disclosed until the transactions are closed.


This week's market activity by Quartile:

Closed Lafayette home sales for the month of February, 2010

Number of closed sales = 11, of which 3 were short-sales or bank-owned

The Highest Closed Price is $2,750,000

The Average Closed Price is $1,207,611 with a Median* Closed Price of $699,000

The Lowest Closed Price is $549,000

* The Median is the mid-point of the market where 50% of the transactions are above and 50% are below this point.

For additional details, please visit my interactive real estate trend chart for Lafayette, California.

With up to 94% of home buyers conducting their initial house-hunting on the internet, it is critical to capture the "essence" of the home for sale on a virtual tour.  Let's face it, from a buyer's perspective the facts of the home (bedrooms, bathrooms, square footage and price) are just the basic search criteria. 

What buyers really want to know is that the house will suit their lifestyle.  The virtual tour must reflect the lifestyle in such a compelling manner that potential buyers willingly leave their computers to visit the Open House or make an appointment to physically view the home.


Virtual Tour "Do's":

DO get the seller's input.  I have a very simple form that I ask sellers to complete entitled "Help Get Buyer's Excited About Your Home".

DO describe the lifestyle activities associated with the home's photos.  Rather than restate the obvious such as "Trellis-covered patio in the corner of the yard" (hello, they're looking at the photo!), describe an activity that could occur such as "A sanctuary for quiet conversation at the end of a busy day".

DO set aside time to take photos of the lifestyle amenities in the immediate market area:  local parks, walking trails, playground equipment, sporting events for children, etc.  We are prohibited from claiming a "family friendly neighborhood" to avoid potential discrimination, but what if potential buyers have young children and really want that type of neighborhood? Photos tell the story!

DO purchase a generic representative photo if necessary.  One of my recent listings was very close to an off-leash dog park (a big deal in my area) but, due to weather, I was unable to get a decent photo so I purchased this one from istockphoto.  Is there any dog owner that wouldn't love this picture?

Virtual Tour "Don'ts":

DON'T assume an online buyer is from the local market.  Add links to the city, local restaurant guides, shopping areas, entertainment and even the local Homeowner's Association website. 

DON'T put your virtual tour together in haste.  The flow and timing of the pictures and text makes all the difference!

The benefit of a good virtual tour is that it can help the perfect buyer find your listing...... and you just might get some kudos from the seller too "It was so pleasing to read your descriptions of our home in the virtual tour.  I'm glad you appreciate our home!" (Received from a seller today).

Real Estate Market Update for Walnut Creek, California. 

Active Listings

Number of Active Listings = 210

The Average Active List Price is $707,701 with the Median Active List Price (mid-point) at $598,000.

The Highest Active List Price is $3.1 million and the Lowest Active List Price is $119,000

This week's market activity by Quartile:

In Contract and Pending

Number of sales pending = 201

The Average Pending List Price is $488,764 with the Median Pending List Price (mid-point) at $450,000
      Note:  Actual sold prices are not disclosed until the transactions are closed

For additional details, please visit my interactive real estate trend chart for Walnut Creek.