May 23, 2012

Sprucing up before Selling Exterior Painting Strategies for your Simi Valley Home

Dry Rot and Termites Simi Valley Home Sellers

Dry rot under new paint

Getting ready to Sell your Home?  First, I want to congratulate you for least considering strategies making your home more attractive to potential home buyers. You only get to make a first impression once and the exterior of your home is the first thing a potential buyer is going to see. So if you’re painting the exterior of your home, prior to putting on the market, here’s a tip that could save you money down the road.

A reputable painting contractor will not only give you a written estimate outlining the scope work; they should also alert you to any problem areas before painting. Any wood on the exterior of your home is more vulnerable to wood destroy organisms which could include fungi and or insects. Homes in Simi Valley California often see dry rot and/or termites.

If the painting contractor you hired comes across problem areas on the exterior of your home, you should consider hiring a termite company to come out, investigate and give a written report as to the extent of the problem areas. The termite companies are completely equipped to remove and replace damaged wood and treat with chemicals to eradicate any wood destroying organisms. Any damage wood should be replaced before your painting contractor begins painting.

When the time comes to sell your property, 99% of the time, the buyer will ask for the seller to provide a termite inspection report.  Typically buyers will ask sellers to pay repair for any items listed under section 1 of the Wood Destroying Organisms Report. Home sales in the Simi Valley area see this as a customary request as this type of damage to a property is seen as a deferred maintenance item.  Many sellers do not realize that if they refuse a termite inspection or termite repairs, the buyer can still bring in their own termite inspector during the investigation period and cancel the purchase under the general inspection contingencies if that report reveals enough treatment and repairs to scare away the buyer.  Now the Seller has a material fact with this termite inspection and will need to disclose it to all future prospective buyers.

The reason why mentioned earlier that the damaged wood should be replaced before painting is, that termite inspectors are very critical of newly painted houses.  They are concerned the prior damage may be hidden behind the new paint job. Any dry rot or damaged wood under new paint is easily ferreted out during the inspection.

Sprucing up your house for a good first impression is the right thing to do. Be proactive when it comes to any issues that may pop up while you’re improving curb appeal of your home.  It will save you frustration and headaches when it comes time to negotiate with a home buyer.

Simi Valley Home Sales Report for September 2010

Simi Valley home sales for September 2010 held their ground and blended in with the running averages. Interest rates remained below 5% in September and some buyers were able to lock rates below 4 1/2%. Even with historically low interest rates Simi Valley Home buyers remain cautious. While the number of distressed properties listed for sale does not dominate the inventory, there is still a significant number of homeowners in trouble which adds negative pressure to the market.

Homeowners trying to modify and keep their homes, sometimes end up more than half a year behind on payments only to find out that they do not qualify for modification. This backlog of distressed inventory is part of what’s driving lack of confidence in the market.

Simi Valley saw a low in May of 2009 and so far, the market has not retreated back to those numbers.  The Simi Valley Housing Market looks to  have stabilized and is holding ground for the time being.  Only has the tax incentives added any excitement to the market.

Buyers tend to have a slight advantage in purchases now as inventories are more balanced,  Interest Rates are incredibly low and the distressed market created some influence in favor of Simi Valley Home Buyers.

This first chart has the Simi Valley detached home sales broken down by price range for the month of September 2010.

Simi Valley home Sales Report September 2010

This next  chart represents the number of single family detached Simi Valley homes sold by month.

Simi Valley Home Sold 2006 through 2010

This chart show the average sales price of single family detached homes ove the last 3 years

Simi Valley average sales price

Simi Valley Real Estate Home Sales Market Update March 2009 YTD

Simi Valley Real Estate Home Sales Market Update March 31 2009 YTD

The Charts in the video are posted below the table for further study.

One disclaimer is that the MLS data adds the homes that are contingent in a backup status with the Active Listings.  This is not a true picture for the real market conditions.  A disproportionate number of these homes in backup status are Short Sales and could possibly be a home that never closes escrow.  The picture is rosier than it looks.  This is why I post the charts, so the information can be compared to prior years.

Activity – Single Family Detached Homes
Active Listings Simi Valley Moorpark
Active
# Units 354 137
Average List Price 584,746 1,007,419
Average Days Listed 122 105
Pending Sales in Escrow
# Units 120 22
Average List Price 430,727 525,809
Average Days on Market 69 54
Total Closed Sales for 2008
# Units 212 57
Average List Price 445,630 609,357
Average Sold Price 436,334 583,091
Average Days Listed 85 80
Average Closed Sales per month 70.67 19.00
Unsold Inventory Index (in months) 5.00 7.21
Activity – Single Family Attached Homes
Active Listings Simi Valley Moorpark
Active
# Units 127 27
Average List Price 308,574 273,053
Average Days Listed 154 115
Pending Sales in Escrow
# Units 21 12
Average List Price 280,788 280,143
Average Days on Market 86 63
Total Closed Sales for 2008
# Units 32 25
Average List Price 259,375 256,986
Average Sold Price 251,539 249,861
Average Days Listed 88 97
Average Closed Sales per month 10.67 8.34
Unsold Inventory Index (in months) 11.90 3.24

Simi Valley Real Estate New Listings Chart March 2009

Looking at each year, 2009 has started off with an extremely tight inventory. This is causing the competition, but if you look at the chart below, typically we should see tight inventory driving prices up, but this is not the case. The drop in the average sales price between December and January was significant. It will take a few more months to see if this market stabilizes. My big wonder in all this is what would the market be like if we had the higher inventory levels like last year.

Simi Valley Real Estate avg home sales report 3-2009