Selling my house

6/9/2007

My intent with this blog is to chronicle my experiences as my husband and I begin the thought process and detailed planning of the sale of our home and the purchase of a multi-unit building. It has been a life-long dream of mine to own a home. I have been a realtor going on four years. I also earned masters in business administration in 2002. I currently teach real estate classes at several adult schools. I’ve sold homes, investment property, and raw land. My journey begins with some basic truths.

My husband, James, will be starting on a path he has envisioned for many years. This September he will be starting his four-year PhD program during which he will not be earning money. I am very proud of him. He has worked very hard to reach this point. Thus, I wish to support his endeavors in any way possible. Dreams do come true with sacrifice, dedication, persistence and support. At the same time, the reality of my job is that my income stream can flucuate at times. There are periods when I want to take time off or my clients are not ready to make a move. With these truths in mind, we face some significant changes in order to make our long-term dreams of financial stability become reality. In the near term, we also hope to have a child. We found it necessary to consider significant changes in order to sustain our lives and build our future. It all begins with the sale our current home. I hope anyone reading my blog will take from it some hope, perspective and ideas for any changes in their lives, especially if it involves moving to a new home.

I have a lovely home in Alameda. It is a charming three bedroom, two and a half bathroom abode built in 1997. I fell in love with the tall ceilings in the living and dining room as well as the open floor plan. Spiritually, we have had many wonderful times with family and friends that have filled the energy in the home with lots of love and gratitude. This home has been everything I have ever wanted and then some. We have taken steps to maintain the property in fairly good order. The major systems are in good condition.

The question becomes ‘what, if any, systematic or cosmetic improvements are required to earn the most out of our investment?’. My husband wishes to save every penny while I seek to earn every dime we deserve. What do we do? First, I order a home and pest report. I plan to use home and pest inspection reports to educate me about the current condition of my house.

Quantity of inventory and quality of my home have strong influences on my final asking price. Having reviewed the multiple listing service for homes with my features, I also see what others are offering for their ask price. I pay very close attention to the final sold price. The state of the economy and financing affects my sales price but I have little influence on those. The only thing I can control are the home repairs and the quality of my end product. Thus, I try to maximize the features of my home to warrant the highest price.

The reports tell me about my home’s advantages and disadvantages. Now I can take the steps to develop the best product that will outshine my competition within my price range. So, I visit my current competition. I see that some have upgrades in their homes that mine does not possess. At the same time, their prices are higher. Having worked with many buyers, they value a home with good, solid structure and functioning systems after location. Depending on the inspection reports, I will choose which repairs, if any, are of greatest benefit to me and the future owner. In a later installment, I will share my experiences with our inspectors.

6/12/2007

I asked a former realtor/colleague of mine to come and give me some feedback about preparing my home for sale. Yes, I know I’m a realtor and yes, I had some ideas but living in this home for about 10 years has probably biased my perspective. It’s like trying to proof read something you wrote several times without finding a single mistake. Invariably, the one person you give it to for review will find 2 or 3 typos by the end. So one afternoon she comes by and steps inside my home. I really value her opinion since she has a real eye for continuity and flow. As I expected, her first suggestion was to de-clutter my home. In general when preparing your home for showings it is best to rooms look spacious, bright, clean and neutral. Reducing the number of furniture pieces helps to accomplish a great deal. Large TVs, bookshelves and long tables need to be stored to open up the room and show its potential. Much to my chagrin she suggested considering replacement of the carpet and linoleum for better show. My current carpet is colored sea foam green which, at the time we purchased, I found different and charming. I was still hoping with shampooing I might bring it back to life. In the backyard, we have nice flagstone with a retaining wall. She suggested power washing it. The nice thing is it is something we can do ourselves. In the end, her insight was immensely valuable. I really appreciated her input. I will also have several of my colleagues from my current brokerage to take a look at my home. With feedback from several agents, I can validate perceptions from various outsiders making me feel like I’m spending my money on improvements that will actually make a difference.


6/14/2007

Today, I have the home inspector and pest inspector come to report all major and minor issues pertaining to my home. I don’t like surprises in any sales transaction when I had the ability to know ahead of time. I find the information empowers me to be a better negotiator. Before the first inspector arrived, I felt compelled to run around the house cleaning and storing items. There is something about having someone come to my home to evaluate its condition that caused me to feel a little self-conscious. While clean our house is ‘lived in’ thus dirty dishes may be in the sink and the trash cans have debris. So, I spent a few minutes wiping up the counter, tossing the trash and putting away the dishes. Actually, I spent the previous Saturday cleaning my bathrooms and kitchen with greater detail than usual. Now, I was ready. The inspector arrived and spent about an hour or so doing his work. In the end, the items he suggested for repair were congruent with what we knew about our house with a minor exception of an electrical plug. There is a sense of comfort I felt learning from an unbiased professional what is in good condition and what needs a little work. I can now spend the time making decisions about what to repair and how it will affect my budget and final proceeds. I felt empowered with knowledge. With the pest inspector, he also tested every faucet, toilet and the dishwasher. No surprises. Armed with both reports, I can set a price that is congruent with repairs I will or will not complete. Again, every piece of knowledge from an outside source validates the value of my home. Since we’ve done a good job of taking care of our home, the suggested repairs were minor.

6/20/2007

We opened up a P.O. Box address so we can begin re-directing our mail. It takes a few months to make sure all of our mail is no longer sent to an address which will be obsolete in a few months. The cost for three months of usage was about $110. Truth be told, we will probably need the box for longer than that but I’m optimistic. We also need to secure a storage space so we can begin boxing our affects and removing them from the house. It is important to remove as much clutter from a home as possible. This helps to create a more open feel throughout the home. Removing clutter will make it easier to complete a thorough cleaning of the place as well. It also helps prospective buyers envision their own items in the same space. Thus, things like pictures, knick-knacks, awards, must be stored in boxes and removed from the site. This is a busy week. My mother and my husband are celebrating their birthdays. My mother-in-law is flying in to join the celebration. She will be with us until Monday. Maybe I can enlist her help with some packing.

A friend of mine in the real estate business wanted me to try this new application which sends new home listings via email. Since James and I are not at a point where we can actually buy, I’m not so inclined to view the listings. Yet, I get curious, periodically so I check them out. I’m encouraged by some of the properties that I see but that phase is far enough away that I’m not committing a great deal of emotional energy into it. One step at a time…

6/23/2007

Having seen the 20/20 special on real estate this past Friday, I feel compelled to add my two cents. Overall, it provided a fair amount of useful information while painting a less than flattering and unfair view of realtors. According to “Freakonomics”, which I actually read, realtors receive only a fractional incentive for selling a home at a substantially higher price. This miniscule amount, the author argues, is not sufficient motivation for the realtor to hold more open houses and wait for a higher-paying buyer. If a seller gets only one offer that is less than asking, it would behoove the realtor to encourage the owner to consider accepting it for one important reason. Experience has proven time and again that the longer a property sits on the market, the less likely it is to get its asking price. After a couple of weeks on the market, buyers begin to ask what is wrong with the property for sale. In a market that is moving downward, such as this one, it makes sense to at least consider taking an offer that is relatively close to what owner desired even it is less. If it is significantly less, I may not suggest accepting it unless the owner needs to let go of the property to keep from financial ruin. A close review of the competition may be useful to determine if the current asking price is still appropriate. Other factors affecting price include location, condition, square footage, time of year, mortgage rates, staging, sunlight, and amenities. Saying that realtors encourage sellers to accept less than asking price to save their own time and money oversimplifies the situation. It also unfairly puts all realtors in the same sinking boat. As a seller, myself, I aim, like all sellers, to get the highest price possible. Yet, even I, as a realtor, cannot justify holding on to a price that is not being met by any buyers. If I keep getting below market offers, I have to take a hard look at the product I offer or come to terms with the state of the market. To do otherwise is foolish. On another topic within that same episode was selling your home on your own. The woman who sold her own home was one example not the norm. While she received more than her asking price, no mention was made that hers was a typical experience. To the contrary, most owners who sell their own homes often settle for significantly less than asking price. Surveys have shown time and again that most “for sale by owner” (FSBOs) have significant problems “getting” the right price, prepping the home for sale, and understanding and completing paperwork. FSBO’s often sell for less. The National Association of Realtors survey showed that, in 2005, the median sales price of an agent-represented home was $230,000, versus $198,200 for a FSBO. Many owners trying to save money may try selling their home themselves; however; statistics have shown they end up losing money in the end. As the inventory of homes increases, the market continues to slow down and legal dangers increase, it behooves sellers consider working with a realtor who knows the current market, knows how to really make a house shine, and understands the legal pitfalls. Most realtors truly earn every nickel and dime they get. Those who do not earn their keep end up ruined eventually. I believe that you reap what you sow. When I commit myself to hard work, fairness and consideration, it is returned to me ten-fold. The solid foundation of my business is to have happy sellers and buyers who will refer me to their family and friends. In my heart, I am motivated to earn the highest possible dollar for my sellers while getting the best possible deal for my buyers.

6/25/07

The chimney sweeper came today. I’m glad to have the job done. I can take that off my list of to-do’s now. I got some mail today which reminds me that I need to notify all senders (family, friends, creditors, etc.) of the P.O. box that I’ve set up. I need to complete a change of address form at the post office. Let’s add that to the list of to-do’s. I contacted a highly-recommended contractor who does small jobs. Most contractors don’t bother with small jobs so this is a rare find. I understand from the recommender that Rodney is meticulous. After visiting our home, Rodney gave us a quote and promised to return on Wednesday to do the work.

6/26/ 2007

I woke up this morning at 4:30am thinking about the move. A feeling of apprehension and hope swelled up inside me like ethereal waves of consciousness. Am I making the right decision? I had to ask. My response was the same. My gut says “Yes” for so many reasons. Hoping to fall asleep again, I kept my eyes closed but the flood gates were already open. There are so many things to do. I have to get the packing boxes. It will probably take us about two weeks to pack if we work on it for about 2 hours each day. I have to secure a storage space once we have packed about ½ of our things. I have to lighten the load by purging some stuff. I’ve donated a few items already but I sense there is more to release. James has been so supportive. I know he is feeling some stress about starting Stanford in September. He’s working right now but that will end when he starts school. Can we get the home sold by then? Will we be renting or will we have found our new place by then? I’m trying not to think too far ahead lest I get anxious and overwhelmed. I need to remain focused and clear-headed. I need to concentrate on small step-by-step tasks. Our overall success will be based on the accumulation of incremental acts. We can do this. We are doing this. We’ve decided to call James’ brother, James (no kidding), to come and help us with our landscaping and irrigation system. He lives in Southern California with his wife. I hope they can make it. So I resolve myself to take a 30-minute walk at 7am. It actually helps clear my head a little bit. I decide that I’m going to take these walks as often as I can during this process. I also understand that walking helps pregnant women tone muscles needed during child birth. While I don’t know if I’m pregnant, I might as well start developing good habits now. Nowadays, I neither drink caffeinated beverages or any alcohol. Okay, that’s a fib. I did have a sip of coffee today but that’s all. It’s such a hard habit to break. Oh, my colleague gave me the name of a great place to buy strong, inexpensive boxes. This company even delivers to your door. I called and spoke to the owner of Bay Area Box Express who was very helpful. We’ll get the boxes on Saturday. If we meet him on route to one of his deliveries, the prices drop even further. It’s the end of the day and I’m bushed after a full day of work. Now, I need to start studying for my broker’s exam.

6/27/07

Rodney shows up to do some of the minor repairs suggested on the home and pest inspection. I must tell you that he is wonderful. He really was meticulous, pleasant and professional. Apparently, he has a brother, Mike, who does landscaping work. It just so happens we need some help with some sprinkler heads. So, Mike and Rodney, will come by on Friday to inspect our irrigation system and provide a quote. Things are moving along.

6/29/07

Well, it’s official. I’m sick with a bad cold. Aches, chills, congestion, fatigue…the works. With all the running around and stress, my immune system may have been compromised. So I’m taking it easy today. No appointments except for a quote from a landscape contractor and a visit from an electrician. I may go with James to open up a storage unit within town. Once we get our boxes tomorrow, I expect we will start packing soon after. I have to think about separating the item that can sit in storage for months versus basic things we’ll use at our next place. I expect to purge a few more items from our collection. It happened that an employee of St. Vincent De Paul thrift stores attended one of my evening first-time homebuyer classes at Hayward Adult School on Wednesday night. She gave me her card and said if we have any items to donate then they would come and pick them up. What a great idea! I’ve already begun donating books and magazines to the local library. We’ve dropped off a few items at the Salvation Army. It actually feels good to release some of these things because someone else will benefit from them. It’s a win-win situation.

6/30/07

Rodney and Mike arrive to inspect the irrigation system. Mike was just as thorough in his observations of the work that needed to be done. I'm quite impressed with them both. Believe me...I spoke to several landscape contractors in the past who gave me some ridiculous quotes. Mike's was the first to provide a reasonable estimate. He was great! We also had an electrician arrive, recommended by Rodney, who corrected the reverse polarity in one of the outlets. Victor, the electrician, was very pleasant. He was detail-oriented to the point he used a level to make sure the outlet was centered properly. I think I've finally found a set of contractors who are I can recommend without hesitation.