I know I post a lot of articles about short sales. In those cases, sellers are in a completely different mindset with circumstances that are usually completely different than when a homeowner is selling their home in what we in the Real Estate biz call a “standard sale.”

A “standard sale” refers to a home selling situation where typically the homeowner is not in a distressed situation. Their home value is higher than their loan amount, and they stand to gain financially from the sale. Now that we have that out of the way…

Depending on your reasons for selling your home, as well as the length of time you have lived there, can affect your motivations for moving. For example, if you are moving UP (meaning into a larger or more expensive home), you may be more excited about moving as opposed to moving DOWN (Wherein you are selling your larger home and moving into a smaller one for whatever reason). Either way, when selling your home, the trick is to appeal to as many potential buyers as possible.

First and foremost, the listing price of your home is extremely important. We’ve discussed this in previous articles.  How you price your home can make a difference in getting multiple offers vs. having it sit there on the market like a poor, lonely bump on a log.

Secondly, staging your home for showing to potential buyers is nearly as important as how you price it. Remember, you want to appeal to AS MANY buyers as possible. A lot of sellers try to stage their home to say “Welcome to OUR home,” when in reality, you should stage your home to say “Welcome to YOUR home.” Home buyers, upon walking in to your house, are already imagining themselves living there. If your home is too personalized with your own family photos, or other personal mementos, the potential buyer has to mentally overcome those challenges in order to continue to imagine themselves living there.

Also, consider neutral colors when staging your home. Hot pink may be YOUR favorite color, but it may not appeal to the senses of the average home buyer. Yes, THEY can always repaint, but again, they have to overcome the challenges of   their own imagination in an effort to believe they want to live in THIS house, and not the one for sale down the street or across town. Remember, even in this economy, home buyers have PLENTY of choices. Custom colors can be a plus, unless they are outdated or extreme. Questions about colors and staging? Contact me!

Staging your home properly for sale can make the difference in how long it stays on the market.

No matter how big your home is, it’s much easier to “accentuate the positive” by making it look even bigger. Too many furniture pieces and/or other clutter around makes even the biggest home look cramped. Consider selling or storing extra pieces of furniture, coffee tables, etc. Clear bookcases of the extras you no longer read, clear kitchen and bathroom countertops of extra items you don’t regularly use (or put them in a spot where you can easily access them, then put away when through). I can’t stress enough ESPECIALLY in bathrooms how important it is to clear countertops of your personal items. Trust me!

We realtors like to overuse the term “Curb appeal”, but it’s true that a first impression is also the last impression. Make sure the front of your house is as appealing as possible. Manicured lawns, clean driveways, and clear paths to the house can make all the difference in whether your potential buyer wants to step inside to see the rest.

This is sometimes awkward to talk about, but how a home smells is very important. The sense of smell triggers memories and emotions almost as much as any of the other senses. Make sure garbage is taken out before showing the home, litterboxes are scooped, yards picked up after puppy does his…ahem…business, etc.

Lastly (and here’s the “get out of your own way” part), if you are home when a buyer stops by with his or her agent (NEVER let someone see your home without an agent!), step outside. The front yard is best, as the buyer has already seen it, and then they can stroll through your home and backyard imagining themselves making an offer and closing the deal…Which is ultimately what you want, right? If the weather does not permit going outside, find a spot out of the way. PLEASE don’t follow the buyers around, telling them every little detail about the house. Again, trust me on that one!

Do you have a home to sell in Santa Clarita? Are you looking to buy? How about both? I’m your realtor! You’re home with Lisa Kaul. Learn more by going to http://kaul4homes.com, or call me direct at 661-209-7447. 

Stevenson Ranch, California is considered by some to be the “Gateway to Santa Clarita” as it sits at the edge of the Newhall Pass as you enter the Santa Clarita Valley.

While it is considered in the unincorporated part of Los Angeles County (And technically not part of the City of Santa Clarita), Stevenson Ranch residents can still consider themselves very much “SClaritans.”

With initial construction beginning in 1989, Stevenson Ranch is a planned family community featuring a variety of homes, schools,

parks, and open spaces that make living here a great choice, especially for families with children.

It’s location to schools, shopping, commuter accessways, and close proximity to downtown Santa Clarita (AKA “Awesometown”) is partly what makes it one of the most popular choices for anyone moving to the SCV.

No matter your budget, Stevenson Ranch has something to offer practically anyone who is considering buying a home. Condominiums average (as of this writing) around $229,000, and the median price for single family homes is between $450,000-$550,000. Single family homes range from the typical 3 bedroom/2 bath ranch-style home to the luxurious estates located in the Southern Oaks neighborhood.

Stevenson Ranch is close to many activities in the Santa Clarita Valley. It is literally minutes from Six Flags Magic Mountain, and if you’re into hiking and the outdoors, Ed Davis Park at Towsley Canyon features several trails with breathtaking vie

So if you’re considering a move, you might want to start with Stevenson Ranch. As your experienced Santa Clarita Valley realtor, I can help you explore all of your options and help find the perfect home for you.

Click here to search homes for sale in Stevenson Ranch.

For more information, go to http://kaul4homes.com, or call me direct at 661-209-7447.

Flash forward, and (unfortunately), short sales and foreclosures have become almost commonplace. In the Santa Clarita Valley alone, 63% of the inventory of homes for sale revolve around distressed properties (Either short sales or bank-owned properties). Now we know there’s been quite an economic kerfuffle that’s resulted in quite a few homeowners finding themselves very upside down on their mortgage along with either one or more persons in the household unemployed or having their income cut considerably. We are seeing our way through it, and while there are glimmers of hope on the horizon, the numbers don’t lie. 63%….Sigh.

Here’s where the story takes an interesting turn. In the past few years, a bumper industry has sprung up in “saviors” coming out of the woodwork to help those poor homeowners out of their financial woes. As you may or may not know, when a lender has filed a Notice of Default (N.O.D.) against a homeowner which is the first big step in the foreclosure process, it becomes part of the public record. Well, someone gathers that information up once it’s published and stores it in a database. There’s the FIRST bumper business…Selling lists of homeowners who are about to be thrown out of their homes.

Who buys these lists? Realtors, lenders, scam artists…What?

As a licensed realtor, I do have a legitimate concern regarding a homeowner’s distressed situation. I do market my services and have helped homeowners avoid foreclosure LEGALLY and with the blessings of the Department of Real Estate and the California Association of Realtors. I’m above board, like most of my colleagues, and we’re not out to exploit your situation.

But beware the offer that sounds too good to be true! As we know that old adage, “If it’s too good to be true…You’re gonna get screwed!” Wait, that’s not how that goes. The end result usually is the same, though.

When this whole housing mess started a few years ago, loan modification companies sprang out of nowhere claiming to help you negotiate a better deal with your lender. They usually wanted an upfront fee (Which even back then was illegal, but does a distressed homeowner know the law when they are desperately trying to save their home?), and rarely (less than 10%) got anyone the loan mod deal they wanted.

Now, the State of California has cracked down on many of those scams, but if you have received a solicitation from a company claiming they will help you stay in their home, remember that it is illegal for anyone to ask for money up front. There is a law on the books that loopholes the issue for attorneys who are engaged in the practice of foreclosure prevention (CA 2945), but even still, you don’t have to pay anyone up front if you don’t want to.

The best thing to do is to try and work with your lender first. They have the final say, and no matter what someone tells you, it ultimately is up to the lender as to whether they will deal with you or not.

Another ripoff gem hitting the mailboxes of distressed homeowners is the notion that companies (I’m not going to mention any names…Ahem…Bella, LLC *Cough cough*) can buy your home from you at or above fair market value, then RENT your home back to you at what would be the equivalent of the price of a one bedroom apartment, then offer to sell the home back to you after a 3 year lease agreement. This is what I call…A total SCAM! It involves magic math, and promises that these companies can’t possibly keep without the lender’s approval. RUN…don’t walk…Away from deals like this!

If you are in a financial situation that has put you at risk of losing your home, try contacting your lender directly first to see if there is anything that can be worked out. If you are unemployed and suffering financial hardship, there are new rules from Freddie Mac on the books that say your lender MUST try to work out a forbearance plan or reduction for at least six months.

If you don’t qualify for the Unemployment Forbearance Plan and you’re facing foreclosure, contact a real estate professional. Contact a professional who knows your area and knows how to deal with the banks, and understands the short sale process.

I am a certified short sale professional. I am also one who gives my clients the real deal as far as what their options are and what their expectations should be. I am qualified to answer your questions and steer you away from a bank foreclosure. You can learn more about me by going to http://kaul4homes.com/stop-foreclosure.htm or call me directly at 661-209-7447. No obligation, no arm-twisting, just common sense answers to your questions. 

Well, where DO you see yourself this time next year?

Talk of the economy is growing long in the tooth. We all know what happened a few years ago to the housing market, and whenever there is a slow news day, we’re bombarded ad nauseum with either housing recovery hopes, or more crashes ahead (depending on which way the wind is blowing, it seems). To help you get your head out of the bombardment of the 24 hour news cycle, here are some actual facts regarding the housing market:

FACT: As of November 2011, housing prices were the lowest they’ve been since December 2002.

FACT: Interest rates are crazily…er…HISTORICALLY low. Ah, forget about it. They’re CRAZY low!

FACT: There are great loan programs for qualified first time home buyers who may be able to buy a home with as little as half a percent down payment. Yes, I didn’t misquote…HALF A PERCENT DOWN!

So where do you see yourself this time next year? Are you still renting that cramped apartment with the walls that are as thin as toilet paper, where you have to park your car in a (GASP!) carport? Have you checked your rental payment lately vs. the price of housing and the cost of a monthly mortgage payment? Have you considered (or reconsidered) the tax benefits of owning a home?

If you’re on the fence, and you’re even thinking or wondering what it takes to buy a home and stop paying rent, click here to see what homes are selling for. No obligation, no sales pitch, just take a look.

Better yet, if you DO have questions about taking that step toward home ownership, I’m here to answer your questions. You can either click here to send me a message, or call me direct at 661-209-7447.  It’s that simple. No muss, no fuss!

Lisa B. Kaul is an experienced, licensed real estate professional. For more information, go to http://kaul4homes.com. 

What does this have to do with buying or selling real estate? 

EVERYTHING!

I’m on my “planning” soap box right now.  Read post below about Buyers doing their homework!

For all your real estate questions and needs, please call Lisa B. Kaul 661.209.7447 or mail Lisa@KaulGirl.com

Her responses were:  1) No I’m not working with a realtor; 2) Yes, I have good credit;  3) I don’t know my FICO score, but I have good credit and cash;  4) No I haven’t talked to a lender; I don’t need to talk to a lender; I have more than enough cash; 5) Look, I know the process; 6) I might finance a small amount; 7) None of this matters; I HAVE CASH! 8) I just want to see the home!

Hate to break the news to you folks, but even if you are a cash buyer you still need to prove you have the funds you say you do.  Nothing is taken at face value.  If you are a cash buyer, you still need to show a paper trail.  My job is streamlining this process for you.  I’m preparing for when we start talking with the banks and sellers.  They will be asking you these same questions, even today when people think Cash is still King.  Yes, it’s hard to hear but true. 

Most buyers like putting the cart before the horse. Buyers want to start seeing homes before they know their true financial picture.  WRONG!  How much time do you want to waste looking at homes you may or may not be able to afford? Do you understand the costs associated with buying a new home?

You must know your financial picture FIRST.  If you are a cash buyer, then be prepared to prove to your Realtor that you have the cash you say you do.  As a Realtor I have found the more a buyer fights me on providing their Proof of Funds, the deeper the color of that red flag.  Some argue that it’s not a Realtor’s business to “know my finances.”  I don’t need to know every aspect of your financial life (that’s your lender’s job), however, I do need to know that you have the ability to buy what I’m showing you.  This comes in the form of Proof of Funds or a Pre-approval Letter from your lender that includes your FICOs.

If you are financing, it’s equally important to have a conversation with your lender before looking at homes.  The lender will determine what is right for your situation.  We have seen a number of changes in the lending industry.  Did you know FHA has changed its requirements for condominiums? Did you know Fannie and Freddie are also making costly changes in how they price their loans? Do you know how your income and credit affect the rate you may or may not be able to get?

Are you self-employed?  If you answered yes, then it’s even more critical you start your homework now.  Bonus pay, commission income – however you earn your living – you must know how the Feds are going to look at your income to make a determination on loaning you (and/or your spouse) money.  Often times, you will need to provide a detailed breakdown of your taxes/income for 3 years on self-employed income. 

Are you starting to see why it’s important to talk to your lender?  Cash buyers: Do you have Proof of Funds?

When you do your homework it makes my job that much easier.  I’m not trying to argue with you nor undermine your intelligence when I ask these initial qualifying questions.  Keep in mind: It’s my job to KNOW my job.  It’s my job to stay a couple steps ahead of the game.  Scrambling at the last minute on your dream home could cost you in the end — you might risk losing your dream alltogether.  It’s my job to ensure that does not happen!

Given the number of foreclosures across the nation, it’s important to understand the timeline and sequence of events. Knowing your timeframes will help homeowners avoid the foreclosure trap.  Here in California, for example, we have the highest number of foreclosures in the United States.  Between January and June 30, 2010, California bore witness to approximately 340,000 foreclosures.  That’s just foreclosures, folks.  We haven’t even tapped into the Short Sale numbers, which run upwards of 50%, 60%, 70% of available inventory and higher depending on your neck of the woods. 

Foreclosure just does not need to happen, and you can help by passing the information below to your family and friends. 

FORECOSURE TIMELINE

Day 1: Notice of Default (NOD) Recorded.  The official clock has started ticking and the countdown to foreclosure has begun.  Homeowner enters the “redemption period” and has 90 days to bring loan up to date and out of default, including any penalties and fees. Homeowners will receive notification of NOD filing by mail.  Always open correspondence from your mortgage provider.

Day 91:  Notice of Trustee Sale (NOTS) is posted.  This ends the redemption period and trustee sale date is set.

Day 112: Trustee Sale (TS) can be held 21 days after NOTS is posted.  Property is sold to highest bidder at public auction. 

Basically, in approximately 112 days (or less than four months) the home can be lost to foreclosure.  In California, the estimated foreclosure timeline is a minimum of 120 days.

Now, I know what you are thinking.  “So what!  My neighbors house hasn’t been foreclosed upon and they’ve been trying to sell it through Short Sale for almost 2 years now.  Banks just don’t follow that.  And they’ve been living there for free.”  We have all heard the stories and know how NODs aren’t always filed and there are delays once it’s been filed, etc.

While, yes, that’s true in a number of cases what most forget is postponement of the Trustee’s Sale DOES NOT STOP the foreclosure timeline. Given I’m not a lawyer and don’t know case law by hand, I want you to really digest that statement: 

Postponement of the Trustee’s Sale DOES NOT STOP the foreclosure timeline.

I’m sure you can only imagine the problems homeowners are facing not realizing this piece of the puzzle.  The timeline does not stop folks.  Which means even though you have received postponements due to short sale or loan modification, once these dates have been reached your home can be foreclosed upon in a nanosecond.  The banks can foreclose your property in an instant and the law is behind them.

For more information on laws that govern California Foreclosure, look up CA Civil Code 2924gf and 2923.5

Now, I understand that you have all the modern upgrades. Perhaps a swimming pool, a nicely manicured landscape, large backyard, custom moldings, etc. And you tell me because of that, your home should sell for mmmm….$30-50K ABOVE what’s currently selling in your neighborhood. Stop right there…

I know, your house is beautiful and believe me, I want to sell it for you. But here are some straight up facts that we must hash out beforehand: When it comes to selling your home, focus on that which you can control, not that which you can’t.

You CAN control: The price at which you want to list your house.
You CAN’T control: The price that will be offered to you by a potential buyer.
You also CAN’T control:

• Market conditions and the Competition
• Interest rates
• The location of your property
• When the perfect buyer will show up

Let’s talk about these items in detail…

Market Conditions and the Competition
As you may know, the real estate market has taken a dramatic shift in the past few years. Five years ago property rates were climbing as high as 50% per year before it all came crashing down a few years later. Home prices (including yours) have declined, and that’s the reality. Even though news and realtor reports state claims of a ‘home inventory shortage’, it doesn’t necessarily mean a total seller’s market. You are now competing with short sales and bank-owned properties as well as other sellers who, like you, just wish to sell and find another place to live. Even though short sale and bank-owned homes are listed at Fair Market Value (FMV), their condition still dictates their final appraisal value. They are still considered comparable properties as they are the ones that have actually sold in your neighborhood, and there is a huge difference between what homes may be listed at, and what they actually sell for.

Interest Rates
Fortunately as of this writing, interest rates are at historic lows. Also, most buyers who have been pre-qualified by a lender are REALLY pre-qualified, which can be good news for you. An offer that comes in from a qualified buyer has the best chance of success and sale. That being said, we do not have control over interest rates and any number of national financial or economic issues can change that at a moment’s notice. Remember that the higher the interest rate, the less dollar amount the potential buyer can qualify for.

The Location of Your Property
Perhaps when you bought your home it was located in a lovely, quiet neighborhood that backed up to a wonderful meadow complete with wildflowers, bunnies and green hills. A few years later, developers and city planners build a road behind your home and a new housing tract goes up. Now your idyllic dreamhome backs up to another neighborhood and traffic.
OR…Maybe you bought that home on the street corner because of its lovely swimming pool, huge backyard and modern, upgraded interior AND…because it practically a STEAL! Now, consider that fact when you now have to sell your home that might not be as appealing from a location point-of-view.

When the Perfect Buyer Shows Up
Face it. When I list your home you will undoubtedly have a lot of people walking through your home, and you won’t know who that one perfect buyer is until an offer has been submitted. However, if your home is priced out of the market, you’ll never see that offer. A lot of times if your home is overpriced, other agents will show your home to compare it to the one down the street (possibly their listing) that’s more reasonably priced.

So what is the rule when pricing your home? Now, this goes against most sellers’ thinking, but the rule is to actually price it LOWER than your competition. Why? Here are some more factors affecting the price of your home:

1. Availability
2. Timing (AKA Your motivation to sell your home quickly)
3. The condition of your home
4. Terms
5. Warranty
6. Amenities
7. Lot size, trees, views, privacy, etc.

The importance of pricing your home competitively cannot be stressed enough. In most cases, your first offer may be your best offer, and pricing misconceptions occur because sellers try to price their home based on any of the following:

1. The amount of money you paid for the home.
2. The amount of money you invested in updating your home.
3. The amount of money you want or need to buy a new home.
4. The amount of money you want or need to rebuild this home.
5. What you neighbor told you he sold his home for.
6. What another agent tells you he can sell your home for.

With that, the longer your home sits on the market, the less you may net from the sale of your home. Below is a graph that details how home pricing affects buyer interest:

Note that the more competitively you price your home, the more potential buyers you will have coming through your door.
More potential buyers=more potential offers=more potential counter offers from you=potentially higher sale price. 
Just as the principle of value drives any other marketplace, the same principle applies in real estate. Listing your home above current market value WILL NOT get you a valid buyer…period!

I know, it sounds harsh. It sounds like obviously I might not be telling you what you want to hear. But my job is to get you the best price for your home through my education, experience and expertise; and not by providing you lip service or just taking your listing at any price just to plop a sign in your yard and sell everyone else’s home but yours (believe me, there are realtors out there who do this). These are the real facts and they WILL get your home sold fast! Trust me, I’m a professional! Now let’s list your home! Call me at 661.209.7447, or click here for your FREE Comparable Market Analysis of your home. I’ll give you the real deal and get your home sold FAST!

Lisa B. Kaul is a licensed real estate agent serving the Southern California communities of Santa Clarita, the San Fernando Valley, the Antelope Valley, Simi Valley and the Conejo Valley. Lisa also has a vast network of thousands of realtors who are ready to help you anywhere in the U.S.A. For more information, go to http://KaulGirl.com.  For more information on avoiding foreclosures, go to http://Kaul4Homes.com

So, you are getting a Loan Modification and the only way to get your point across is to cuss and yell at your servicer.  (ding, ding) Wrong Answer.  When trying to sell your home through a Short Sale and your Agent calls with information from The Bank, do you start plotting your Agent’s and The Bank’s demise?  Um, No!  Or perhaps while trying to Avoid Foreclosure, you decide to avoid The Bank all-together!?   As Dr. Phil would say: How’s that working for ya?  I’m guessing it’s not.  You are more frustrated than ever — just ready to give up and walk.  It’s just not worth the hassle, you might say. 

It’s time to take a step back.  Breathe.  Reassess your relationship with The Bank.  Evaluate your expectations.  Many have high hopes of being saved but very few understand the reality.  Few understand The Bank. 

Let’s look at a few ways we can help make our relationship with The Bank better, easier and get one step closer to Avoiding Foreclosure:

1.  ALWAYS REMEMBER your relationship with your lender. 
     *  It is not the bank’s responsibility to protect your interests.
     *  The bank is not designed to save you money.
     *  The banks have no legal duty to actually approve you for a loan modification or short sale.
     *  The banks have no legal duty to postpone your foreclosure while you are in a loan mod review process (unless you get it in writing).
     *  Do not rely on the bank to look out for your best interest.

2.   Promptly open AND read all your mail involving your property … especially if it’s from your lender!

3.   If you don’t understand the bank’s correspondence, seek immediate professional assistance  (with emphasis on IMMEDIATE).
     *  However, don’t rely completely upon others to think and act for you.
     *  If you are working with a servicer immediately forward all correspondence to your service provider.

4.   Carefully review anything you sign with your lender, to include loan workout agreements (forbearance/trial payment periods).

5.   Document each and every conversation you have with your banking institution. 
     *  Write down day, time, name, number, ID numbers, extensions, etc.
     *  Take detailed notes

6.   Keep in constant communication with your lender and service provider. 
     *  Noncommunication, like in any relationship, is a killer.

Lisa B. Kaul is a licensed real estate agent serving the Southern California communities of Santa Clarita, the San Fernando Valley, the Antelope Valley, Simi Valley and the Conejo Valley. Lisa also has a vast network of thousands of realtors who are ready to help you anywhere in the U.S.A. For more information, go to http://KaulGirl.com.  For more information on avoiding foreclosures, go to http://Kaul4Homes.com

For more information, or to view more properties available for sale, please go to http://kaulgirl.com.