Category Archives: Uncategorized

As I read numerous reports weekly and talk with so many people about their perspective on the market, what strikes me is how much emotions play on our perception. Most sellers are panicking because of news that reports the infamous “bubble burst,” causing them to lower the price on their homes to invite an offer. “In normal markets, inventories and sales increase in the summer and decline in the winter. This has not happened in our market for the last five years,” said Michael Lyon, President of Trendgraphix. “Then with the rapid rise of prices, the market eventually ran out of purchasing power. The result? Inventory has been rising for the past six months. Buyers have responded by taking a step back to evaluate their options while sellers who needed to sell found themselves lowering their asking price to attract an offer.” “December, however, was a step closer to normal with declining inventory and slower sales. This is normal for most markets that don’t have inventory shortages. The question for the spring remains: with strong job growth in our region, will we continue to see a trend towards normal market patterns? This would lead to a steady increase in sales along with a peaking inventory by early summer. The experts say “yes”, but make an exception for the upper end market which has been overbuilt and may take years to recover.”

I like how another commentator put it, “Keep in mind we are discussing a changing real estate market, and not talking about a real estate bubble; we are discussing a shift in sentiment of consumers.”

I just read an interesting article on hi-tech bathrooms…

Things you can now expect to find in your new home bathroom. Okay I exaggerate, rather if you are filthy rich and have nothing better to do with your money, or maybe just a workaholic, look for…

· Mirrors that have dual functions – standard reflection and television/LCD monitor built in (get your email, news, stock portfolio update,etc. while shaving).

· Waterproof phones and waterproof touch screen monitors – work while in the shower!

· Fold out desks – Great place to work on your laptop while sitting on your “throne.”

One word, “boundaries!”

However I must say, the warming products might just be worth every cent. There are towel, floor and toilet seat warmers that come on all automatically before you even wake up!

I am always interested in the language that realtors use in advertising their listings – Descriptions and promises that borderline on flat out lies. Or on a more gracious note, it’s just fun to read between the lines:

• “Cozy Cottage” = Small House
• “Old World Charm” = Be prepared to install dishwasher, garbage disposal, HVAC, new sewer line, etc.
• “Needs TLC” = Fixer
• “Investor’s Dream” = Make low ball offer
• “Located in up and coming area” = Unsafe
• “Quaint” = Desperately in need of updating
• “Motivated Seller” = Desperate, make low ball offer
• “Cinderella waiting to be asked to dance” (yes, I really saw this one!) = Major issues

Here’s a list of words to avoid for legal reasons – words that have disputed meanings or may be considered discriminatory:

• Quiet
• Safe
• Flat lot
• “His and Hers”
• Quality Construction
• Room to expand
• Good investment
• Built to code
• Ready for pool
• Near church, temple, etc.

It sort of reminds me of the warning labels on hairdryers, “Do not use while taking a bath.” It only takes one person to litigate over lack of common sense, and we are all flooded with an insane amount of disclosure paperwork and acute term-qualification.

All homes have a history, some more colorful than others. Whether positive memories created or unexpected natural or unnatural occurrences, especially older homes have a story to tell. For instance, we lived in a 1905 boulevard park bungalow for about four years that has a full history.

The positive stories are comprised of the birthday parties in the backyard, the summertime BBQ’s on the front porch, the candle-lit dinners with my wife. I hope every home has many good stories to tell.

Some stories that we reflect on and can now (mostly) laugh about: Our sewer line that needed replacement within the first month of move-in; The used hypodermic needles we found in the rafters when cleaning (oh, and the former owner was not a nurse. We like to say he was in the “pharmaceutical business” ); The grapefruit tree that fell over in the middle of the storm; The leaky front porch stairs that where built without a permit and against Historic Preservation rules; The friendly neighbor that we met prior to moving in who boasted about our peaceful and quiet the neighborhood – sadly and ironic as it may sound he was an alcoholic, who invited the police and ambulances, what seemed to be nightly, to either break up a domestic argument or haul him to the hospital. He drank himself to death within three months of our acquaintance – R.I.P. Jimmy. OR what about the homeless people that would rummage through our trash cans in the middle of the night?; I could go on…

There is a sticky situation that arises when selling a home that has had some history. The seller always asks, “Do I need to tell the buyer about…. how the basement floods every year?; The time the tree limb fell through our roof?; The dog next door that barks us to sleep every night?; The addition we built without a permit; The roof leak that we think is fixed now?;” etc. The answer is “YES” to all of these questions.

No seller wants to say or disclose anything that will deter the buyer from falling in love with their home and go through with the purchase. However, it is absolutely necessary to be completely honest about the home’s history. The seller and many times the realtor too will end up in court over undisclosed items that are a detriment or potential detriment to the new owner.

The problem occurs when the seller and at times their realtor begin down the path of justification – “But that incident was so long ago” or, “We can just paint over that stain (evidence of mold)” or, “They will never find out about the dry root if we nail a board over it” or, “I can just claim that I was not aware of the _________ “ or “Everyone know that all houses have rats living in the attic.” You get the point. Do you? BY LAW, YOU MUST DISCLOSE EVERYTHING ABOUT THE HOUSE’S HISTORY THAT YOU ARE AWARE OF, or YOU ARE LIABLE AND MAY BE SUED.

I can hear it now, “But what about…..” The gears of your brain are turning, looking for loop holes and ways to avoid disclosing everything. Yes, there are some loop holes and exceptions, but the rule of thumb is this: The buyer should not be surprised by a pre-existing condition that negatively affects them regarding the home and its surroundings. Rule of thumb #2: If you don’t disclose, one of the neighbors will rat you out – They will inform the new buyer about your home for you! Then you begin down the path of, “I hope I have a good attorney?!”

__________________

I’m curious about your disclosure stories and questions you might have about what does and does not have to be disclosed.

Totally unrealated to real estate…

My cousin gave my son these drums for Christmas in the tradition of our Uncle John giving all the his nephews musical instruments to drive our parents mad. Thanks Steve for continuing the tradition – we are on the verge of insanity! I forgive you, but I will not forget when you start your family! Mark my words, children’s instruments will only get louder and more inexpensive to buy.

Okay, here is how it relates to my business. I use to be able to work out of my home office. My kid have driven me to actually leave the house for work. This has been a great thing for my productivity. Thanks again Steve.

Drew on Drums

Summarized article Real Estate Journal, How a Home Stager Preps Her Home Before Selling.

1. Upgrade light fixtures:

– Use higher wattage bulb to make rooms brighter, creating an inviting mood and make s the rooms appear larger

– Install dimmers to create mood lighting

1. Reconfigure rooms – for instance if a small second bedroom feels cramped, turn it into a den or craft room.

1. Repaint walls according to buyer that you are trying to attract.

– Bold colors for artsy feel

– Neutral colors for a more conservative buyer

1. Repaint laminate cabinets in the kitchen and bathrooms

– Use Melamine, a plastic-based paint

– Change out the hardware

1. Remove extra furniture and clutter from the house

– This may seem obvious, but specifically store it off-site as home buyers usually look at the basement and garage

1. Create curb appeal by putting planters out front – draw people into the house

Greetings! I hope everyone’s New Year is going great so far!

I have now been in business for 5 months and 6 transactions – what a great learning experience! I feel that I’ve done a good job putting my interpersonal skills together with strong negotiating ability to get the best value for my clients.

A few success stories:

• We received a winning, full price offer on my first listing in one weeks time!
• My second listing closed in 17 days with a close-to-full-price offer.
• For one of my buyers, we negotiated $25,000 less than asking and closed in about two weeks time.
• Another buyer will be getting into her home for at least $10,000 less than asking, with repairs done by the seller and several thousand credited back.

In short business has been good. I’ve enjoyed the challenges and people I’ve worked with. Whether or not you are buying or selling, I’m dedicated to share my contacts and resources – Just ask.

The stats for 2005 per the National Association of Realtors are in and I thought you may find them interesting:

• 7.07 million homes sold in 2005.
• That is the fifth consecutive annual record year.
• Inventories of unsold homes fell to 2.8 million in December.
• 2005 national median sales price increased 10.5% to $211,000.

Buying your own home is still the way to go. That said, David Lereah, chief economist of the NAR reports that “Speculators are pulling out.” Sales are reflecting that change. We should be seeing more price adjustments as the market slows to steady growth. Yes, there will be exceptions to well priced properties, but I am guessing that buyers will have more advantages in negotiations.

If you are ready to make a change, let’s talk. The coming months of early spring are historically a great time to take advantage of the slower winter pace.

Featured Listings:

8183 Yorkton Way, Sacramento, CA 95829 – $499,000

1151 Millet Way, Sacramento, CA 95834 – $317,000

JUST ASK

Q: When looking at my local housing market, how significant are the terms “over-valued” and “under-valued”?

A: Economists release data in the beginning of the calendar year with indexes that show housing markets that are either over-valued or under-valued. These indexes are typically based on three main aspects: income levels, interest rates, and population densities.

The significance of these indexes varies. For example, areas deemed over-valued often experience less vigorous growth over time. Yet there are reasons why those markets become so hot in the first place. The area’s restaurants, outdoor recreation, and cultural infusions are not reflected in the housing market indexes.

Each area needs to be examined on its own merits and / or drawbacks. If you would like to sit down to discuss our market area, please let me know.

Find a housing index report here: http://money.cnn.com/2005/12/29/real_estate/buying_selling/handicapping_housing_markets/index.htm

MY TOWN

Spring is almost here! Spring is a wonderful time to put your house on the market. Buyers come out of the woodwork, the sun is shining, the trees are blooming and your house looks just perfect. Or does it? The better your house looks from the street, the better the buyer’s first impression, and the better offers you will get. One of the best ways to prepare your house for market now is to spruce up your front garden or walkway. Here are some fun websites to help you get started.

http://www.gardenweb.com/ has a Hortiplex database where you can look up plants and flowers.

http://www.organicgardening.com/ offers everything from compost piles to backyard bird feeding.

Provided free of charge, the city of Austin has posted six optimal landscaping designs on this website (http://www.cityofaustin.org/greengarden/designtemp.htm) that will help you minimize water use and promote environmentally-friendly gardens.

I would love to visit your house and give you tips on inexpensive ways to spruce up the front of your house. Just let me know!

FYI

Are you getting ready to head out to Home Depot or Lowe’s to pick up some supplies for your remodel project? If so, take a look at this website: http://www.fatwallet.com/

Fat Wallet is comprised of a community of people who keep their eyes out for fantastic deals on everything under the sun. Use their search bar to type in the name of the store where you want deals and you will find coupons and savings offers!

PERSONAL UPDATE

Everyone asks me about my family and THE KIDS – so here’s the scoop.

– Drew is in his terrific twos (all parents will read between the lines here – ha ha ha). He is into everything: Climbing, running (his feet and mouth), drawing and painting, watching shows (Bob the Builder is his favorite), playing “Choo choo”, staying awake late, digging in the backyard, eating sweets, making new friends, and more.

– Luke is about 6 months old. His favorite things to do are rolling over, drooling, bouncing in his “bouncy seat”, chewing on stuff, and now eating rice cereal. Oh did I mention drinking mama’s milk?! He’s an angel!

– Char and I just celebrated our 5 year wedding anniversary. Looking back, we are so grateful for where we’ve been and the newness ahead. We both will be turning 35 this year (well I just did). It’s a great season of life.

As you may know, my growing business is built on insight, integrity, and experience, however, it flourishes by working with quality people as yourself and those you might refer. Thank you for your business.

I hope you have a great holiday and look forward to talking to you soon.

Cheers!

Keith Klassen
(916)282.6313

My wife and I have a friend that is moving out of the area. My wife, being the good advocate she is, suggested that I represent our friend in the transaction. Our friend told us that they have another friend that is also a realtor and don’t want to play favorites. Our friend decided to not use either of us in the transaction. Also, they were afraid that if something went wrong the friendship would be lost.

I too get nervous when representing a friend – actually I’m becoming more and more confident when doing so. The thought of business jeopardizing the friendship makes me sick to my stomach. However, this is my profession and I feel strongly that I will represent them just as well, if not better than anyone else. I’ve learned to be upfront and honest about unexpected situations that come up in a deal. I take responsibility for any mistakes made on my part – if there are any. I found that strong communication throughout the process is key, making my clients aware and minimizing surprises leads to a growing relationship. Actually all my client have remained friends or on good business terms.

We encouraged our friend to at least use their other real estate connection as a better alternative than to go with someone that they don’t even know.

In my mind, integrity is all about doing what you say. It’s about follow through and admitting where you went wrong. There is a sense of solidarity and trustworthiness. In a business that may be known for hustlers and manipulators, integrity may just be a biggest commodity on the market!

There is a big temptation to calculate commissions before considering what is best for a client. I believe that a few “fast deals” might earn a few quick bucks, but honesty in business enables a person to sleep well and in the long-run develop a lasting business.

This is what I am attempting to live by.

TWO: Listen and Ask Questions

Have you ever noticed or been guilty of talking AT someone (rather than TO them)? Lately I’ve been keenly aware of other agents and especially mortgage brokers , going on and on about all the information that they want to dispense. I’m thinking to myself, “Take a breath!” or better yet ask a question mid-stream to check in. It’s as if they’ve been shut down all their lives and never got a chance to speak and now need to get it all out.

There is an underlying sense of assumption when someone talks at you. While, by asking probing questions and carefully listening I can truly identify what a person needs. I find that people feel cared for and respected when I listen intently. Questions help me accurately respond to the person with whom I am are dialoging.

Listening and asking questions, as well as, returning phone calls promptly – These are simple things that I strive to implement into my daily business and personal life.