Information for Simi Valley Home Sellers

Auto Detailing vs Home Staging a NO BRAINER for Home Sellers

November 20, 2011 By Ted Mackel Leave a Comment

(Simi Valley) – Consider that when people decide to sell their used car they will have no qualms in spending $200 on an auto detailing job. If the car they are selling has a $10,000.00 asking price, that is 2% of the asking price. Even digging down deeper, these same sellers will remove any personal affects from the car and make it look like it just rolled off the lot.

These very same people suddenly have a heart attack when you explain the benefits of having their home staged on the listing appointment. Consider a very basic staging for $650 on a home with a asking price of $650,000. Let’s see……….that’s one tenth of a percent of the asking price of the home. What gives? Recently I saw the tail end of Get it Sold on HGTV and here is a great example of the little things that can be done for very few dollars. Sabrina Soto is not coming over to my client’s and potential client’s home anytime soon, but there are stagers in my area that can accomplish the same affordable miracles that are seen on this program.

A home is probably the largest investment a family has. Thinking of that investment compared to the depreciating asset of a car they have, I am still scratching my head trying to figure out why there is such a disconnect when it comes time to prepare a home for sale……….especially in the market conditions we are experiencing now.

Recently I was working with a home seller who’s home was on the market and no offers had come in. Traffic was initially good and open houses picked up traffic, but failed to produce any buyers willing to submit an offer. With a home now being the lowest price in the neighborhood and still no offers being generated, it was time to bring in a Stager and evaluate the home. The evaluation with a written detailed report costs approximately $250.00. Well worth the investment for the following reasons:

The Stagers come in as a buyer and point out the good and bad points of the home from the buyer’s perspective.
The Seller has usually been in the property for many years, some simple issues to fix or items to put away may not be apparent.
The list of items to address can be addressed individually and even if the seller can accomplish the entire list some changes are sure to help the over all attractiveness of the house.

If the house is priced right and offers are not being generated, then something is distracting the buyers. Stepping back and letting a third party evaluate and give an opinion can be a painful process for the home seller. Pride of ownership and pride of the things home owners have done to the home can get in the way of objective criticism. If getting the home sold for the highest price is the objective, then why is it so easy prep and ready when it comes to selling a car vs selling a home?

If you need a referral to a good home stager please call (805) 432-7705

Filed Under: Sellers Tagged With: home, home staging, Seller, Simi Valley, stager

Video Marketing – The most neglected tool in the Real Estate Industry.

October 10, 2011 By Ted Mackel Leave a Comment

A recent report on Mashable.com on how the real estate industry is using social media reported that only 12% of Real Estate Agents have a Youtube Channel.

Going back to 2008 there was big push from the industry for Agents to purchase Flip camera; over that time Kodak has entered the Market with shirt pocket sized cameras and the emergence of the iPhone and it’s influence over video on smart phones has really made many wonder why the Real Estate Industry is so slow to adopting a Video Marketing Plan. I have been consistently been using Video in my Real Estate business since 2007, in 2003 I had a goal to video all my listing and host them online, but prior to Youtube, bandwidth and hosting was a problem, let alone people at home with computers and connections fast enough to deal with online video then.

Fast forward to today and the neglect is astonishing. The iPad and android devices have people looking for more intense visual experiences, The maturation of Youtube over the last few years has made Youtube a viable means to distribute content for a Real Estate Agent if done correctly. So why only 12%?

There is a learning curve – editing and basic equipment usage really can make a difference in the outcome of the final production quality of video. Many simply refuse to learn some new skills.

Low Self-Esteem – Yes the same people who put their name and image on everything they hand out are worried about how they will look and sound on video.

Too much work – It is simple enough to get a couple dozen photos, make a slide show and call it quits.

Most research shows that home buyers respond highly to online property information with multiple pictures. The research also shows that buyers want to see more pictures. This is where real estate Video can dovetail and provide a marketing edge over listing that only provide photos.

Video can highlight and explain special features of a seller property better than photos.
Video can show off the the nieghborhood and surrounding homes where photos cannot.
Video can educate potential buyers on the schools, shopping and parks in the community, where photos cannot.
Video on Youtube and other similar sites is very compatible with mobile playback and provides that extra edge in marketing that a slide show or still photos cannot.

So the question remains … Why would a home seller hire agents that don’t provide video home tours?

To see my Youtube Channel http://www.youtube.com/tedmackel

Filed Under: Sellers Tagged With: home tour, marketing, Sellers, Simi Valley, video

Custom Signage to sell your Simi Valley Home

August 23, 2011 By Ted Mackel 4 Comments

(Video Below) Whether your home is in Simi Valley, the west San Fernando Valley, Moorpark, Thousand Oaks, Newbury Park or in-between, I have been working with custom signage for 3 years now. I have been looking at ways to improve on the custom sign and the picture to the right is the new design I rolled out last week. The same printing technology used in vehicle wraps is what makes this possible for the real estate industry.

The purpose behind the custom sign follows three main ideas:

When potential buyers are driving neighborhoods, the pictures of the backyard and an interior shot give the buyers a teaser preview of the property to generate more interest in the property.
The website and QR code are directly linked to a mobile compliant website with tons of information (including community video) on the home that the potential buyers can view right in their car on a smart phone or iPad. My use of the mobile website and QR code gives me direct feedback on how many people are accessing the site for more information.
The typical real estate signs here in Southern California, are hung on large 4×4 wood posts. My sign is the same size (30×24), orientated vertically, but with a different installation method and custom design. This sign gets buyers to stop the car.

One thing I need to stress, is that much of the internet content out today can be viewed on smartphones, the difference in the mobile technology I am using is that it is specifically designed and formatted for display on mobile phones. If you have a mobile phone type in the following address and you will see:

http://iflymobiapp.com/callevista

If you are trying to view this on your laptop or home computer you can see the formatting is designed for mobile devices.

I have been working on this for a long time and continually monitor feedback from buyers and will continue to do so. You can see my video below from 2008, this listing was one of the reasons I started working on these signs.

One other interesting thing I came across in my discussion with potential home buyers who called off my signs is, I always ask, “how many properties did you print out at home before coming to drive Simi Valley neighborhoods?” The response has always been “No list, just driving neighborhoods”. I thought that this was odd with gas pricing over the last 3 years, but this even more shows how important the sign in my client’s front yard is. If the drive-bys have not previewed the house on the internet, then the custom sign and it’s teaser ability to get drive-bys to stop their car is very important.

Keller Williams Realty gives me that ability, to create this custom marketing where many real estate firms are more interested in promoting their firm and not your house. While some of my branding is on this sign, the focus is your house with the customization. The point is, when I put the sign in your front yard am I selling your house or my firm? Think about that as you drive through any neighborhood and see For Sale signs.

In July I wrote Why QR codes won’t sell your Simi Valley Home and was very critical of QR codes for real estate use. My 4 points of 1. Mobile Friendly, 2. Tracking, 3. Regurgitation, 4. Understanding have all been addressed in my design and implementation, will the QR code sell your house? No, #1 the Price, Condition and Location are the biggest factor in the ability to get your home sold. No amount of advertising can sell an overpriced home. Ultimately, the goal is to get as many eyes on the property as possible and be competitive with the surrounding homes. The custom yard sign is just another piece of that plan to reach the goal.

I would love to hear your comments below, thanks for reading.

Filed Under: Real Estate News, Sellers, Simi Valley Tagged With: Buyers, homes, mobile, QR codes, real estate, Simi Valley

Ramifications on Real Estate in Divorce. Is it time to sell your Simi Valley home?

July 24, 2011 By Ted Mackel Leave a Comment

Divorce happens, not every marriage is successful and as a Simi Valley real estate agent I have been called to help divorcing couples sell what usually amounts to their largest asset in the marriage, their home. This is typically one of the more stressful events in a divorce as not only is the home a large monetary asset for both the husband and wife, but it is also very personal, as it was home to a family with many memories.

Simi Valley like most of the nation is trudging economic challenges, significant drop in housing values and employment challenges which has added additional stress on families and has contributed to increased divorce rates. The stress and emotions involved in divorce can create many challenges as couples move through the process. The division of real estate assets and the protection of that significant investment for both the husband and wife requires a seasoned real estate agent who can work to protect that investment and be flexible to work through the emotions and stress of a divorce environment. The bottom line is that many times in divorce, emotions are out of control, which undermines common sense and when common sense gets undermined, the monetary cost to the divorcing couple is significant and wasteful.

It would be nice to wave a wand so both parties in the divorce could work on the division of their real estate assets in a amicable manner, but since that does not always materialize, if you are in a divorce please remember that with less emotional reactions and the more you approach the sale of the real estate assets with common sense and a business like attitude, can protect and save money.

What are some of the plans of the divorcing couples with the real estate asset(s)? Well that depends on if the divorce is amicable or turbulent.

Does one spouse want to retain the home?
Try to retain the property while the children are in school and then selling the asset later?
Not happy with the market conditions and want to try to hold on to the house and sell it later for a larger profit?
Sell the real estate assets now?

One of the challenges of one spouse trying to retain the home is reaching an agreement on value. Sometimes an attitude of retribution will possess either the husband or wife in that they think by holding on to the house they can buy out the the other party at a discount and get a leg up in the divorce. This is a bad plan as the house will be appraised and possibly a few broker price opinions ordered to determine the value of the home.

Sometimes when children are involved and/or the real estate market is declining there is motivation to try and keep the house and sell it after the children are grown. If this will be 5 or more years, who is going to pay for the deferred maintenance that will occur. The house may need costly items, such as a roof, paint, etc. If the spouse retaining the home in this transitional period does not have the money to make these repairs, the plan to sell the home later for more money may backfire as the deferred maintenance items will negatively impact the value at sale time. When the property does sell later money used to maintain the house will probably need to be reimbursed which could cause more points of disagreement.

Financial Implications and Taxes

Unfortunately, divorce will cause both the husband and wife to make decisions that will not be easy. Selling the house should not turn into a contest to see who wins the trophy. The winner could put themselves in a tough financial position trying to keep the home.

Consider that there could be tax advantages to selling the property now. This is not tax advise, but rather questions think about and hopefully a prompt to push you to consult a qualified tax professional. Currently a married couple selling their primary residence may have up to a $500,000 exemption in capital gains value while an individual has only $250,000. Here’s the rub, and why you need to see a tax professional. If one spouse retains the property, then can the other can spouse claim the house as their primary residence while they are not living there? Does the spouse who moves out now turn their interest in the property to an investment interests which could hold larger tax implications?

Unpopular as it is, sale of the house as terms of the divorce will provide a solution that will bring closure to the situation. Replacement property can be found for either spouse to relocate to, while the standard of living, i.e. house size and neighborhood may not be the same, Simi Valley provides many great neighborhoods and getting re-established in Simi Valley will provide opportunity that may not be available in other communities.

If facing divorce and the value of the property is has dropped significantly, in that it there is not going to be enough money to pay off the debt against the house, take a step back form the scorched earth policy of trying to get back at the other spouse by letting the house go to foreclosure. Today the alternative of Short Sale will help both spouses get back on their feet quicker. I cannot emphasize enough, don’t let the stress and emotions get the better of your common sense. You are making a break, make it with the smallest amount of collateral damage, selling now can be achieved if you have equity and even if you do not (with a Short Sale to avoid foreclosure).

How to choose a Realtor

This is where things can get tough. Ladies, you probably have friends that are in the business, getting your husband to agree to using one of your friends is going to be as likely as you allowing your husband to use one of his buddies. Selling your house in divorce is not about having a person to complaint to about your spouse. You need a professional that is going to work to get you home sold for the highest price possible and be able to facilitate and protect the interests of both husband an wife through the process. Document execution and disclosure needs to coordinated and monitored in a timely manner as to not affect a buyer’s ability to conduct investigations or complete their loan process. Many times the husband and wife will not agree on negotiating terms with the buyer which takes extra skill to work out the differences for a successful sale. You will need an experienced, skilled practitioner, especially in this market with Short Sales common in divorce situations.

Marketing your home is a topic in itself, but the ability for the Realtor to remain calm in the middle of divorce negotiations is not a skill possessed all.

Filed Under: Buyers, Sellers Tagged With: Broker Price Opinion, Buyer, divorce, home, real estate, Realtor, Seller, Simi Valley

Why QR codes won’t sell your Simi Valley Home

July 20, 2011 By Ted Mackel 2 Comments

I recently was showing a Simi Valley home and the flyer advertising the listing had every element of what real estate agents will hear out in the training seminar circuit. QR codes have been around for a while and it has taken a while for this older technology to emerge in the United States. QR codes are still a long way from being understood and embraced. The success of the iPhone and Android smart phones just may be the catalyst that will help push this technology forward as QR codes are now starting to appear in many different places across the US.

While these codes are convenient and useful, how many people do you know, who know what QR codes are and have software on their cell phones to take advantage of the technology?

My question to you as a Simi Valley home seller, are you being oversold on gadgets and shiny objects by the Rea Estate Agents you are interviewing? Is the push to show all these flashy items really the agent’s way to distract you from the more important questions like challenging the agent’s experience, expertise and dedication to the real estate profession?

Here are the concerns home owners need to understand when any agent pitches technology as a means to sell your home.

Mobile Friendly – QR codes are used with a mobile phone to scan and the codes will direct you to web content on that mobile phone. Did you know that most Real Estate sites are not very Mobile friendly? Part of the problem is that most Real Estate web developers are behind. These developers still design for flash, they still “frame in” solutions, they still are hooked on Internet Explorer. The fact is that the Blackberry was the predominant phone and it is still widely used, Blackberry doesn’t do flash. It’s hard to argue the success of the iPhone and it doesn’t do flash. Android is the other platform dominating smartphones and what is extremely important is that Windows phones are not even in the same hemisphere when it comes to user base. We have to divorce ourselves from preconceived ideas and understand we don’t control what phones or computers consumers are going use. My industry has continued to live up to it’s knuckle-dragger reputation on technology and still tries to force non universal solutions on unsuspecting real estate agent agents. “Consumer compliant” equals universal; my industry needs a swift kick in the head to wake them up and understand there is no excuse to not develop universally.
Tracking – I can make all the QR codes in the world I choose, but what good are they to me or you the seller, if we cannot track if anyone is using them. The flyer I mentioned in the beginning of this article had a QR code and when I clicked it, it went to a YouTube slide show of the property. There was no way to track how the YouTube viewers got to the video. No way for that real estate agent to show if using a QR code provides any extra value to you the seller. There is a method to enable tracking on QR codes which we can discuss when we are listing your home.
Regurgitation - Is the information at the other end of the QR code the same information as on the Multiple Listing Service (MLS) and every other property search website? This regurgitation of the same old information will only frustrate potential buyers as they have most likely seen the information already, they are looking for something new and fresh. Your “tech savvy” potential real estate agent that is desperately trying to sell you in the interview, probably has not told you that prospective home buyers Google the addresses of the properties they are interested in. Why? Because they are looking for new, fresh information that is not the same as what they have seen on every other site so far. They are Googling to find additional information not found elsewhere.
Lack of Understanding – The use of QR codes in real estate currently shows a lack of understanding. QR codes are primarily geared for mobile use, you scan the code with your phone; so where the code takes you is very important.

Consider the following:

The listing flyer - already has a ton of information about the house. The QR code needs to link to something different and fresh than what is on the flyer or on internet property search sites. The prospective buyer is going to take that flyer home and go to their computer. It is unlikely that they are going to scan a QR code when they are sitting next to their computer with a flyer, rather will type a website address directly into the computer.
The yard sign – A yard sign is typically static. Agents buy a dozen signs that are all identical. A QR code pointing to the agent’s website really is not doing much to showcase your home. Remember that most sites are not very mobile friendly. What are the chances that buyers get to the agent’s site and find your home? Imagine having to navigate an agent website on the small display of a mobile phone, maybe outside in the sunlight. Signs these days can be customized very inexpensively, the QR code needs to be unique for that property directing the consumer to content that is optimized for mobile devices (phones, iPads and tablets) and different than what is already found on the typical property search sites.
Direct mail or Print Advertising - Here is another piece that will be brought to the computer and the likelihood that a Simi Valley home buyer is going to scan the code when they have a computer with much larger display has to be considered. Again a QR code on this type of advertisement needs to direct the person to something mobile friendly, different and fresh.
On a website - You may see a QR code on a website, why? I mean, why scan your computer screen with your mobile device to view information that can be easily viewed on screen with an old fashioned web link? (aka hyperlink). A QR code on a website should point to information the consumer will need to take with them on the go, information about your property they will need when they are out looking at properties. For example a Google map with the location of your property.

There are many other uses for QR codes and several for the real estate industry, but for marketing your home the above four are directly related to selling your Simi Valley home. I cannot stress enough that the use of QR codes needs tracking. You want to be able to measure and see how many people are clicking through so you can adjust your efforts if the click through rates are better in some uses than others.

I mentioned several times above that QR codes need to be directed at content that is different and fresh compared to what is found on a typical property search sites. So what does that look like? Well, you will have to schedule an appointment with me to find out. Additionally I have stressed the importance of being mobile complaint, this is just not optional, with the iPhone (rumored) coming to Sprint and more people moving to smart phones, the chances prospective Simi Valley home buyers are going to view information about your phone mobily grows every day.

QR codes are not the end all be all of real estate marketing, they are a very small part of the marketing issues that factor into selling a house. Price, Condition and Location still rule the day. QR codes, full page newspaper ads, heck I could fly the Goodyear Blimp with a scrolling message advertising your house, but if the price-condition-location formula is mismatched, marketing your home to death will not make it sell.

Back in 2009 I commented on an article (Pictured above) on the Agent Genius website that was marveling at the technology. In that entire article from the fall of 2008, there was no connection made to marketing real estate. It looked better suited as an electronic business card. Recently at this year’s Keller Williams Family reunion in Anaheim California, agents had QR codes with their contact information and QR codes for their websites to be exchanged instead of business cards. This was a big shift form the prior year where I did not see this happening.

My brother first showed me QR codes in 2008 and when I talked about them people looked me as some sort of “Uber Geek”. Well it looks as the shift of smart phones is spreading this may catch on, probably not to the extent is has in Asia, but that if used properly can assist Simi Valley home buyers in their search for their next home. As a Simi Valley home seller you will need someone who understands the technology, where it best fits in and how to implement a real estate marketing strategy properly. Give me a call at (805) 432-7705 and I will be happy to meet with you and discuss how we can market your home. The QR code at the top of this article goes to a YouTube video I created for a client, but the difference is I can track if anyone has actually scanned and used it and it goes to content that not found on the plethora of property search sites making is fresh and useful for the home buyer.

As you watch this clip, pay attention to the common theme. Tracking & mobile compliant. What we are seeing in the real estate industry is just a Hodge-podge of shiny object syndrome where agents are being taught about a new technology, but are being taught poorly.

I will leave you with this video how a market in South Korea has used the technology to grow their business. For a code developed many years ago at Toyota to track car parts on the assembly line, QR code use working it’s way in to main stream society.

Filed Under: Sellers Tagged With: Buyers, home, mobile, QR codes, real estate agent, Simi Valley, technology

How the right Lockbox can help your Simi Valley Home Sell Quicker

July 16, 2011 By Ted Mackel 1 Comment

(Updated 7/16/2011) In my last article on this subject “The importantance of a lockbox when selling your Simi Valley Home” we discussed the importance of giving flexible access. A concern for any seller when giving access to their home is security. In this article I will discuss the GE Supra iBox vs. an old style combination box and how that affects your listing agent’s ability to track who has been in your home..

To the right is a picture of a combination style lock box. While these are effective in providing an extra key, once the combination is given out there is no way to track who has opened the box or control people from giving the combination code to others. These style boxes are ideal for family members or setting up access for handymen or utility providers if the home owner so desires, but this is a very poor choice for Simi Valley Real Estate Agent showings due to the lack of control. These mechanical combination lockboxes should only be used for temporary purposes and in my profession recommendation never use this type of box for giving access to agents who want to show your home.

In my trade area (including Simi Valley and Moorpark) the SoCal MLS and the Ventura County Regional MLS have chosen to use General Electric’s Supra iBox lockbox system. This blue iBox is controlled through an infrared communication device on the front of the box. Agents can rent an electronic key pad or have apps loaded onto any PDA Smart phone. There is an additional device that pairs with Android and non Apple Smart Phones so the real estate agent’s phone can communicate via infrared. Apple iPhones have a very small device the plugs into the bottom of the phone.

The iBox has a computer chip inside that stores data on all who enter through the box. The Smart Phones and the keypads call the system every 15 mins when the software is on or the key pad is powered up and transmits which properties the agent has accessed. If the Listing Agent has registered their lockboxes and has their current email address in the GE Supra system, the Listing agent will receive an email almost immediately after any of their lockboxes are accessed. The email contains the agent name and contact information of who just opened the box. This provides security in that the listing agent knows at all times who has accessed the property with a time a date stamp and if a real estate agent has not paid their bill or is disciplined by the MLS, the system can be set to not authorize their keypad or smart phone to open any of the boxes.

The software on these computerized lockboxes allows for some very flexible programming. For example, the weekdays, Saturday and Sunday can be programmed so the boxes will open only certain times.

If you really want to crank down on who gets in your Simi Valley home, there is a CBS setting. The Call Before Showing (CBS) setting requires the buyer’s agent to call the Listing Agent for an additional unique code to open the box. Using the CBS you could prescreen the agent calling and determine if you are comfortable enough to give out the CBS. Additionally you know right then and there who is going in and at what time. Please remember that the more restrictive you are with the times buyers can view your home, the fewer showing you will get as I pointed out in the last article The importantance of a lockbox when selling your Simi Valley Home“.

There is a note section in the software so a note will pop up right after the box is opened and you can type in any important notices for the agent, for example, “please leave your card or please turn off the lights”. ”Feed the dog or take out the trash” is probably not a good way to greet a buyer’s agent. Another positive feature is that the Listing agent can put their contact information in as a virtual business card and Listing comments as an electronic flyer. When used as designed and programmed properly, the iBox lockbox system not only becomes powerful tool to increase exposure, but help provide a record of who is accessing the property and a complimentary way to help follow up on potential buyers for your Simi Valley home.

As a side note, most properties that have been foreclosed on and are now owned by the bank, will use both boxes. I work with several banks as a listing agent for their Simi Valley properties. The mechanical lockboxes are used for bank personnel only, handymen etc. Those codes are not supposed to be given to real estate agents.

The Supra iBox costs a Simi Valley Real Estate Agent approximately $130.00, I own 25 boxes. When you are interviewing agents, ask if they have a Supra iBox. If they don’t or they suggest to use a mechanical box; please take this advise, stop the interview and show them the door. Homes for Sale in Simi Valley range from $150,000 (condos) in to the millions; I think it is reasonable to assume a listing agent can afford a $130 box.

There is an argument against any use of any box and that the listing agent needs to be present for all showings. That can be an article all by itself. The short answer is that Simi Valley is a bedroom community, people have conflicting schedules, a listing agent can only be in one place at one time. Why limit the times a potential buyer can see your home? And no, a listing agent cannot do a better job selling or touring the prospective buyer; many times the listing agent becomes an annoyance to the the buyer and their agent. It really does not mater how it is done in other parts of southern California or other parts of the country, it only matters how it is done in Simi Valley because your competition (the other Simi Valley homes for sale) are using the system very effectively. Don’t be the last to sell your home over lack of access.

Originally posted April 27, 2008.

Filed Under: Buyers, Sellers Tagged With: combination, homes for sale, lockbox, mls, moorpark, real estate, Simi Valley, Supra ibox

The importance of a lockbox when selling your Simi Valley home

July 15, 2011 By Ted Mackel 3 Comments

(Updated 7/15/11) The internet has changed the way Realtors do business and has changed the way buyers shop for homes. Additionally, technology is changing our daily routines and work habits. Buyers have limited time to look at homes for sale so they spend most of their time conducting online search for Simi Valley Homes sifting through listings before calling a Realtor.

Buyers also have busy lives, so when it comes time to look at homes, they want to go out and look at homes on their time schedule, not the seller’s.

As an active Simi Valley real estate agent showing buyers homes, I generate a showing list based on my clients needs. Usually there are 8-9 homes on the list that closely match (my client’s wants) and that list is sorted starting as follows:

Vacant listings,
Listings to call, leave a message and go direct,
Call and make special arrangements (put away pets etc.)
Appointment needed with the agent, the owner or both.
Homes that are only available at certain times or days.

Nine times out of ten times my clients will sort the list the same way if I give them the stack of paper; they want to know which houses are the easiest to see. The reasoning behind this is that the homes on our list already fit their criteria and second that they can see as many homes possible as their time is valuable.

Clients also prefer to see a home without the seller present. Even though a seller can be helpful in explaining things they have done to the property, home buyers like to comment about features or non features of the house and would like to do so freely.

Usually the homes (listings) that fit the first 3 scenarios above, all have lock computerized boxes. If you have your home listed for sale and fall into the 4^th or 5^th scenario and wonder why you are not getting many showings, wonder no more. I’ve shown thousands of homes in my career and EASE OF SHOWING rules the day. If your house is priced with the competition in mind and you are not getting decent showing traffic; ask yourself which of the 5 choices you have given your prospective buyers and their Realtor.

Last here is an example of a day showing properties to buyers. Last weekend my buyers wanted to see as many homes as possible. There were 39 active Simi Valley homes for sale that met their criteria. 3 homes in particular said we could only come after 3:00 and each home was located far apart. One Simi Valley home was in Wood Ranch, one in Simi Valley’s Big Sky and one in Simi Valley’s Auburn Hills by the Metrolink station. Because we started out showings in Wood Ranch, guess which home got kicked of the list? My buyers wrote and offer on a home on the east end of town. You are the seller, consider if you want to be an obstructionist or want to be inviting?

A blog post will follow soon “Lockboxes Part II” and I will go into depth on the power of the Supra iBox vs the old style combo box.

What’s my Home Worth

**This post was originally written April 27, 2008 and has been updated.

Filed Under: Sellers Tagged With: agent, buuyers, homes for sale, listing, lockbox, real estate, Sellers, showing, Simi Valley

How does a Lis Pendens affect California Real Property?

June 17, 2011 By Ted Mackel Leave a Comment

I see questions all the time about Lis Pendens in online Real Estate discussion forums all the time. Before diving into the information below please understand the following. This information pertains to California Real Estate Law. This information was obtained with permission from the California Association of Realtors Legal Department. I am not an attorney and this information is not intended to be legal advise from me, please seek professional legal help with this matter.

Q 1. What is a Lis Pendens?

A: Lis Pendens is a Latin phrase which means a pending suit. When people refer to a Lis Pendens they are generally referring to what Code of Civil Procedure Section 405.2 calls a “Notice of Pendency of Action” (hereinafter “Lis Pendens” and also “Notice”). The Lis Pendens is recorded in the office of the county recorder and serves as a warning to prospective interest holders in real property that the real property is involved in a legal action (Cal. Code Civ. Proc. §§ 405.2, 405.4). This means that the person who is asserting a real property claim (the claimant) must file a lawsuit prior to recording the Lis Pendens.

Q 2. What is the purpose of a Lis Pendens?

A: The purpose of a Lis Pendens is to notify prospective purchasers, encumbrancersand other real property interest holders that any interest acquired by them in the property is subject to the outcome of a legal action currently in progress concerning the real property. Although recording the Lis Pendens doesn’t legally stop a buyer from purchasing the property, the buyer is subject to losing the property to the claimant should the claimant ultimately prevail in the litigation regarding entitlement to the property. Therefore, for all practical purposes, the Lis Pendens assures the person recording it (the claimant) that the property in question will not be transferred before the lawsuit is resolved (See Question 3).

Q 3. Can property be transferred if a Lis Pendens is recorded against it?

A: Yes, but if it is transferred or encumbered, the transferee or encumbrancer is deemed to have constructive notice of the legal action affecting the property and takes title subject to any rights or interests in the property the claimant subsequently obtains in the legal action. The rights of the claimant relate back to the date of recording of the Lis Pendens. Thus, even though the property may be transferred, it is unlikely that any prospective transferees will take the risk that the legal action will be decided in favor of the claimant. Thus, recording a Lis Pendens effectively makes the property unmarketable.

Q 4. Who can record a Lis Pendens?

A: A party to an action (lawsuit) who asserts a real property claim may record a Lis Pendens. A real property claim is defined as a pleading which, if meritorious, affects (a) title to, or the right to possession of, specific real property or (b) the use of an easement. (Cal. Code Civ. Proc. § 405.4.)

Q 5. Can a buyer record a Lis Pendens against a seller who refuses to close escrow?

A: Yes, if the buyer pursues a legal claim against the seller for specific performance of the contract. If the buyer is only interested in return of the deposit or money damages then a Lis Pendens should not be recorded.

Q 6. Can a buyer record a Lis Pendens against a seller who refuses to return a deposit?

A: No. If the buyer is only interested in return of the deposit or money damages then a Lis Pendens should not be recorded.

Q 7. Can a seller record a Lis Pendens against a buyer who breaches the contract?

A: No. A seller may pursue a breaching buyer by seeking either specific performance or damages. When a seller seeks specific performance against a buyer, the seller attempts to force the buyer to purchase the seller’s property. The seller makes no claim against property owned by the buyer and, accordingly, a Lis Pendens recorded against any property then owned by the breaching buyer would be inappropriate. Obtaining specific performance against a buyer is very difficult. More typically, the seller sues the buyer for damages. This is an action for money. A Lis Pendens is inappropriate in such a case.

Q 8. Does a liquidated damage clause affect a buyer’s ability to record a Lis Pendens?

A: No. A liquidated damage clause (like the one in the C.A.R. purchase contracts) sets limits on the monetary damages in the event a buyer breaches a contract. Since a Lis Pendens would generally only be recorded when a breaching seller refuses to sell the property to the buyer, the liquidated damages clause has no effect on a buyer’s ability to record a Lis Pendens.

Q 9. What does a Lis Pendens claimant have to do in order to record a Lis Pendens?

A: The claimant must do the following:

(1) The claimant must file a lawsuit which asserts a real property claim (Cal. Code Civ. Proc. § 405.4).

(2) A Notice of Pendency of Action must be prepared which contains the names of all parties to the actionand a description of the property affected by the action (Cal. Code Civ. Proc. § 405.20).

(3) The Notice must be signed by the claimant’s attorney of record. If the claimant does not have an attorney (is acting in propria persona) the claimant must have the Notice approved by a judge. (Cal. Code Civ. Proc. § 405.21.)

(4) The Notice must be mailed by registered or certified mail, return receipt requested, to all known addresses of the parties to whom the real property claim is adverse and to all owners of record of the real propertyas shown by the latest county assessment roll (Cal. Code Civ. Proc. § 405.22).

(5) The Notice can then be recorded in the county in which all or a portion of the property is situated if it is accompanied by a proof of service that the Notice has been properly served on the persons listed in paragraph 4 (Cal. Code Civ. Proc. §§ 405.20, 405,23).

Q 10. Can a Lis Pendens be recorded if the purchase contract requires arbitration and not litigation?

A: Yes. In the event that both parties to a dispute have initialed an arbitration clause, the party wishing to record a Lis Pendens,must first file a lawsuit and must, at the same time the action is filed, also present to the court an application that the judicial action be stayed pending the arbitration. Then the claimant must take the steps needed to record the Lis Pendens as indicated in Question 12.

Q 11. Once a Lis Pendens has been recorded, how can it be removed from title?

A: At any time after the Lis Pendens has been recorded by the claimant, any party to the action or a non-party with an interest in the property (“moving party”), may apply to the court in which the action is filed to “expunge” (remove from the record) the Lis Pendens (Cal. Code Civ. Proc. § 405.30). A person who is not a party to the action must first obtain permission from the court before bringing the motion to expunge (Cal. Code Civ. Proc. § 405.30). The expungement order is not provided by the court unless there is “the giving of an undertaking” (i.e., the moving party must post a bond) in an amount that will indemnify the claimant for all damages resulting from the expungement which the claimant may incur if the claimant prevailson the real proeprty claim (Cal. Code Civ. Proc. § 405.33).

There are three instances in which a Lis Pendens can be expunged.

(1) The Notice shall be expunged if the pleading of the Lis Pendens claimant does not contain a real property claim (for example, the claimant is only seeking money damages) (Cal. Code Civ. Proc. § 405.31).

(2) The Notice shall be expunged if the Lis Pendens claimant has not established by a preponderance of the evidence the probable validity of the real property claim (Cal. Code Civ. Proc. § 405.32).

(3) The Notice shall be expunged, even if the claimant has established the probable validity of the claim, if the court determines that adequate relief is available by the property owner providing a bond in an amount sufficient to indemnify the claimant for all damages proximately resulting from the expungement (Cal. Code Civ. Proc.§ 405.33).

Q 12. What does “preponderance of the evidence” mentioned in the previous question mean?

A: Essentially, to show a “preponderance of the evidence” means that the evidence presented is of greater weight or more convincing than the evidence which is offered in opposition to it (Black’s Law Dictionary 616 (5th ed. 1983)).

Q 13. What does “probable validity of the claim” mean?

A: It means that it is more likely than not that the claimant will obtain a judgment against the defendant.

Q 14. Who has the burden of proof in a motion to expunge a Lis Pendens?

A: The Lis Pendens claimant (Cal. Code Civ. Proc. § 405.30).

Q 15. How long does a property owner or other party bringing the motion to expunge (“moving party”) have to post a bond if ordered to do so as a condition of granting the motion to expunge?

A: The court will set a date on which the moving partymust return to court and show that the bond has been obtained. If the moving party fails to demonstrate by that date that the condition has been fulfilled the court will deny the motion to expunge. (Cal. Code Civ. Proc. § 405.33.)

Q 16. Can a Lis Pendens claimant ever be required to post a bond in order to keep the Lis Pendens of record?

A: Yes. The court may require the claimant to post a bond in order to maintain the Notice. If the court issues such an order andthe claimant does not show compliance with the court’s order on the date established by the court, then the court will order the Notice be expunged. (Cal. Code Civ. Proc. § 405.34.)

Q 17. What is the effect of a Lis Pendens if it has been expunged or released?

A: Once a Lis Pendens has been expunged or voluntarily released it is no longer considered actual or constructive notice of any of the information contained in the Notice. Subsequently, anyone who, for valuable consideration, becomes a transferee of an interest in the property shall not be deemed to have knowledge of the matter contained in the Notice whether or not that person had actual knowledge of the action. Thus, expungement or voluntary removal of the Lis Pendens allows the property to be transferred free of any cloud otherwise caused by the recording of the Notice. (Cal. Code Civ. Proc. §§ 405.60, 405.61.)

Q 18. Can attorney fees be awarded as a result of a motion concerning expungement or maintenance of a Lis Pendens?

A: Yes. The prevailing party on any motion made to expunge shall be awarded reasonable attorney fees and costs unless the court determines that the imposition of these fees and costs would be unjust. The same rule applies to the prevailing party on a motion made to request that the claimant post a bond as a condition of maintaining a Lis Pendens. (Cal. Code Civ. Proc. § 405.38.)

Q 19. What effect does expungement of a Lis Pendens have on any lawsuit between the claimant and the property owner?

A: None. While as a practical matter the expungement of a Lis Pendens affects the parties’ relative bargaining power in an action, the expungement does not otherwise affect the legal relationship between the parties to the dispute.

Q 20. If a Lis Pendens has been expunged or removed, does a subsequent purchaser of the property take title subject to the outcome of any lawsuit still pending between the claimant and the property owner?

A: No. (See Question 17 above.) That means that a subsequent purchaser does not have to give up the property regardless of the outcome of the lawsuit between the claimant and the property owner.

Filed Under: Buyers, Foreclosures, Sellers, short sales Tagged With: california Real Estate, Lis Pendens

I’d Like To Buy Your House For Cash – Beware of Short Sale Flipping

June 9, 2011 By Ted Mackel 4 Comments

A series of news reports over the last few years are covering a problem that has hit the Short Sale Market. As in any market, if there is an opportunity, the opportunist go to work. This time they are trying to create screaming deals out of Short Sale properties.

These flippers target houses on the verge of foreclosure and persuade banks and mortgage companies to accept lowball buyouts, sometimes by using questionable appraisals and not disclosing that a quick sale at a higher price has already been arranged, experts say. (source: Herald Tribune The New Flipping:Short Sales)

If you are having trouble with your mortgage, have been trying to get a Loan Modification and you have fallen behind in your payments, now is the best time more than ever to be skeptical of anyone who approaches you about your home.

Once you get behind on your loan payments, here in California it won’t be long before your lender will file a Notice Of Default (NOD). The NOD is a public record filed at the county recorder’s office and there are several private companies that mine these records and provide a subscription to interested parties. RealtyTrac and ForeclosureRadar are two of the better known services. Investors, home buyers and real estate brokers subscribe to these services.

Real Estate professionals use the public filings on properties in foreclosure to find more business as a means to see if those in foreclosure would like to try and Short Sell their homes.
Investors are looking to get homes below market value so they can clean them up and put them on the market for a profit.
Home buyers typically believe they are going to get a home significantly below market if they can contact a home owner in foreclosure directly.

Once an NOD is filed against your property, expect your phone to ring and possibly people come to your door. If they are offering to buy your house and help you avoid foreclosure this should be a very big red flag. Let’s assume your house has a market value of $400,000 and you owe $500,000. You have know way of knowing the true market value of your home without getting an appraisal or broker price opinion (BPO) from a disinterested third party. The person standing at your front door or calling you on the phone is coming to you directly cause they want your property below market value and the farther below market value the better for them.

Here is the rub, if they promise to handle everything and work with the bank to short sell your home, if they then can convince the bank to take an amount significantly below market value, that could be seen as defrauding the bank. In this article from Bloomberg, Banks face fraud from short sales as home flopping spreads you can see that the banks and FBI are catching on to this scheme.

Two Connecticut real estate agents found a way to profit in the U.S. housing bust: Buy low, sell fast. Their tactic was also illegal.

Sergio Natera and Anna McElaney are scheduled to be sentenced in Hartford’s federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve the sale of homes for less than the balance owed –known as a short sale — without disclosing that there were better offers. They then flipped the houses for a profit.

The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth.

When you get approached directly by people trying to make deals, they aren’t at your door for charity. Also other promises such as selling you back the property, letting you stay as a renter or that they will give a cash incentive after escrow closes are all signs of more trouble. Every single Short Sale transaction I have worked on in the last year has involved a document from the Short Sale Lender, that is signed and notarized by both buyer, seller and all real estate agents involved. This document has all parties acknowledge that the transaction is at “Arms-Length” and that the Buyers are not getting money at or after closing (there is one exception I will explain later), there are other terms as well.

If a Real Estate Professional approaches you to help you with Short Sale, then interviewing properly is very very important. A Short Sale transaction is complex and not for just any agent. Those of us who have completed many Short Sale Transactions will tell you that each and every one is different. In my opinion there is no possible way to claim to be an expert or specialist in Short Sales because no two short sales are the same. Experience, closing percentage and the agent’s support structure are some of the better indicators to show if the agents you are interviewing can get the job done. Unknown to the consumer, real estate agent email in-boxes receive offers for short sale training every week. Each course offers a designation of “specialist”. While there is value in these classes, nothing beats the experience in putting these transactions together. There is no cookie cutter formula, it is good old fashioned negotiating and doing the legwork necessary to get an approval.

I have experience in closing HAFA and regular Short Sales with most major banks, including Wells, Chase, IndyMac (One West), GMAC, HBSC, HOME EQ etc. I have closed Short Sales in as few as 60 days from offer to close of Escrow with the typical short sale talking 120 to just under 180 days from offer submission to closing. I use a third party negotiator who is a licensed Real Estate Broker and practices Real Estate Law. We have closed every single one of our Short Sale Transactions we have worked on together. It takes a coordinated effort to keep the loss mitigator’s attention on my client’s file and be able to deliver information in a timely manner to assist the bank in expediting an approval decision.

I have represented buyers on Short Sale purchases and this is why I believe I am qualified to offer the advise that not every real estate agent is cut out to work on a short sale. I wrote about Short Sales from a Buyer’s point of view in Simi Valley Home Buyers 3 Important Concerns with Short Sales Offers

A good review would include:

If your trying to modify your loan, contemplating a Short Sale and you are getting calls from investors and real estate agents to help you with your house, proceed with Skepticism and Caution. Consider that if you are in danger of losing your home to foreclosure, what benefit is it to you to help someone pull a fast one on the bank so they can get control of your property and flip it for a profit? We are seeing, as in the articles I quoted above that the FBI and the banks are watching, is it worth the risk? If Short Sale is your only other option beside a foreclosure, I can help you move through the process discreetly. Many times my clients have not want for sale signs in their yards and want to keep this part of their financial life as low key as possible and I try to accommodate that where I can.

Disclaimer: Seek advise from a Tax professional and Attorney as there may be issues related to Loan Modification, Short Sale or Tax Implications. Keller William Exclusive Properties & Ted Mackel is not associated with the government, and our service is not approved by the government or your lender. Even if you accept an offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

Filed Under: Sellers, short sales Tagged With: foreclosure, GMAC, HAFA, Indymac, Loan modification, NOD, Property Flipping, Short Sale, Simi Valley, Wells Fargo

5 keys to finding a good Real Estate Agent & Negotiating a Commission

May 31, 2011 By Ted Mackel 3 Comments

Every once a while my phone rings and I am asked, “ how much do you charge?” There are a few things that remain constant with this type of incoming call for my services. First, the people who usually call with this question are in the very early stages of research as to which is the best way to sell their home. Second, people trying to figure out what it is going to cost to sell their home.

Unfortunately such a simple question could end up costing the potential home seller more money than save them with the simple answer. I have no problem explaining to anyone, rates for my services, however very few want to know the details of my fee structure and the services rendered. If a home seller is rate shopping, it seems natural to me that the seller would want to know what they are paying for?

Real Estate Commissions

It’s easy to shop for the cheapest rates on any service or product. I do it all the time myself when making major purchase decisions. I have been doing online research for my major purchase decisions for more than 12 years. I know where to look, I have a good idea on who I can trust by their web presence and online reputation, but then again I’ve been doing this for over 12 years; shopping online is something I am very comfortable with. I take many things in to consideration, not just price.

The real estate business is little more complex than just calling a dozen people and asking for their rate schedule. Experience, expertise, production and track record will vary significantly between real estate agents. Commission sales has a number of predictable traits. One of those traits is the 90-10 rule meaning 90% of all real estate sales are done by 10% of the real estate agents in any given market.

If you are one of those potential home sellers shopping commission rates, how do you know if you are calling agents who are part of the 10%?

The average sale price of a single-family detached home in Simi Valley in the last 12 months has been approximately $460,000. In looking at the multiple listing service, the majority of commissions vary in the 5% to 6% range. Using the average sales price, negotiating 1/2% off a commission rate would save a seller approximately $2,300.

Understanding the 90-10 rule, is it worth $2,300 to end up with a sub par salesperson? There is a very good reason why 10% of the agents do 90% of the business. What may seem like a $2,300 savings in commission could result lower sales price due to poor negotiating skills or even worse, an agent who misses a costly item on a contract because they have not closed a transaction in a while.

Are all Real Estate Agents Equal? No and here are interview question you will want to ask other than “how much do you charge?”

How do you rank in your office in production?
What percentage of your sales are as the Listing Agent or the Buyer’s Agent?
What kind of transactions did you close in the last 12 months?
Do you work alone or do you have help?
Are you a member of any local organizations or civic committees?
How are you involved in the real estate community?

If your property is a candidate for a Short Sale ask the following questions:

How many Short Sales have you listed and closed escrow?
How many have not sold?
Do you work alone?
Do you use a negotiator?
Have you represented Buyers in a Short Sale?
Have you successfully closed escrows with those buyers?

The 5 keys to finding a good salesperson and negotiating a commission for both the Seller and the salesperson are rooted in the answers to the above questions. As a home seller you want to know that the salesperson you hire is

In practice, regularly working with buyers and sellers.
Has recent practical experience with all disclosures, forms and the different types of sales.
Can handle additional work load and is surrounded with the proper support to do so.
Has built a positive reputation in their industry and community.
Has a track record of successfully closing transactions.

If you are a home seller shopping for a commission, you can make the calls, ask questions that will help you qualify the salespeople you do call and more importantly set face to face interviews.

Last and more importantly for this day an age, “Google” the names of the real estate agents you plan to call.

If the Google search results show few matches and few results, you can move on to the next phone number. If the Agent can’t manage their own online exposure, how do you expect them to handle the online exposure for the sale of your home?

Research after research, after research shows that buyers spend months looking at houses on line before they make a decision to purchase. Salespeople that are difficult to find on Google may indicate that those salespeople are not in-touch with how buyers are looking for properties these days. Salespeople in real estate that are difficult to find online will probably be even harder to find offline.

Happy commission hunting, just make sure you don’t end up with a secret agent.

Filed Under: homes for sale, Sellers Tagged With: commission, Home Sellers, Short Sale, Simi Valley