Preparing an Estate Home for Sale

Today, in preparing a Kensington home for the market, we sent the following list of recommendations to the heirs. We thought all would-be sellers might find it useful:

1. Landscaping: We observed the home to have well-manicured, mature landscaping. In our opinion, this existing structure would benefit by the addition of some economical, fresh, new plantings to fill in some empty spots and marry the mature plantings with a bit of updating. Now that rains have started in our area, we believe the lawn could be greatly improved by a sprinkling of grass seeds. We can get a landscaper to work within a budget here.
2. Interior painting: In our estimation, there is no better return on investment than a coat of fresh paint. We can choose a color pallet that allows the paint to not only clean and brighten, but also instantly update the home’s interior. We believe the home is in need of complete interior painting all the way through the closets and down into the laundry/furnace room. As part of our service, painting quotes can be obtained.
3. Floors: The home is believed to have serviceable hardwood floors beneath the carpeting. We believe the carpet should be removed and the floors cleaned and polished (not refinished.) We have a floor man that can restore the floors to a very good look at a fraction of the cost of refinishing. This assessment is based on a look at exposed wood floors and the condition of the older carpet. We do believe there is a good chance they will only need a thorough cleaning. If the carpet is removed and we discover a surprising amount of hidden damage, we may have to reassess. This is not our expectation.
4. Repairs: There is a broken window pane in the kitchen that should be repaired. There is also an area of peeling paint on house and large cracks along the back. The repair and paint matching of these exterior sections should be bid out before determining if they make sense to the market prep budget.
5. Cleaning: After floors and painting, the home would benefit from thorough cleaning and window washing.
6. Clearing: The home needs to be cleared of current contents. If you need help with this we can offer names of estate sale organizers and haulers.
7. Staging: Staging is very important. We often tell sellers that staging is like buying a shiny stainless steel appliance, but sprinkling that high-end appeal all over the house. In addition, 85% of buyers are now using the web in there home search. Empty rooms lose visual square footage and buyers do not stay on a site with less than stellar photos. To have good photos, there must be something in the rooms on which to focus.
8. Reports: There are some reports that buyers expect to see as part of the sale preparations. These include; zone disclosure report ($123.95), Termite report ($250), sewer lateral compliance (the bid is free, but likely to reflect needed repairs). There is also an ordinance in Kensington requiring an automatic gas shut off value before the sale. This device costs approximately $500. Some additional reports are optional, but may have value in this case. These include general home inspection and structural engineers report. We should meet in person to discuss your options and the pros/cons of supplying additional reports.

We believe that these improvements will not only maximize the home’s potential value on the open market, but also that these improvements optimize the dollar for dollar value of the costs associated with the market preparations. We understand that market preparations are costly, but our experience is that these are the items that draw buyers to the property and keep them interested. Never-the-less, this list represents our advice only. You are the decision makers. Please don’t hesitate to call your agent to discuss your concerns and share your thoughts on marketing the home. As part of our service, written bids will be delivered to you and approved before any work is ordered.

Related Post:
Preparing Your East Bay Home For Sale - Top Ten Value Added Improvements

Discovering Dollars in Your Home Improvement Design

When remodeling or renovating, it is important to consider the project’s ultimate influence on your home’s worth. Well chosen improvements add value, sometimes greatly exceeding the cost of the labor employed and materials implemented. Sometimes the value added is tangible, resulting in another bedroom or additional bath. Other upgrades are more subtly nuanced. As agents, we see first hand which improvements have the greatest impact on area home buyers. Here is a bit of advice from our perspective:

1. Let the experts take the lead. Hire a designer and/or architect to be involved in the project. Good design is often the number one key to getting the highest return on your investment. Modest materials look more expensive if the design is thoughtful and well-articulated. Conversely, we have seen homeowners lose money spent on quality materials when they scrimped on the critical planning stage. When buyers are turned off by the layout or aesthetic, they will subtract the expense of future remodeling from their perception of value. Design consultants can work within all budget constraints and can be worth their weight in gold.

2. How long you plan to live in your home is an important consideration.

· If you plan only to be in the home for less than five years, improvements should be budget conscience with an eye toward splurging on a few key elements that will have the most universal appeal. Buyers will notice a well chosen focal point (like that great chef’s range), which in turn can bring up the value of remodel. Ask your agent what features current buyers are gravitating towards.

· If you plan to stay for ten to fifteen years, your emphasis should change to a more timeless design and the use of quality long-lasting materials. Now the focal points are less important because the fixtures can be changed out at a future date. In the kitchen, spend your money on high quality cabinets, good flooring and solid surface countertops that remain sensitive to (or improve on) the original architect’s design. Later, new appliances and fixtures may be all it takes to reinvigorate your investment.

· If you plan to stay for twenty years or more, you can more easily throw caution to the wind. Long range plans factor in a higher value for your years of “use and enjoyment.” Even unconventional alterations may now be worthwhile if they please you and your family. Chances are, many of today’s improvements will need to be re-evaluated at a later date.

3. Every year (in December) the National Association of Realtors comes out with a Cost vs. Value Report, which tries to reign in the areas of improvement which recoup the highest cost percentage. Such statistics can help, but are never as good as first-hand expert advice. Ask your agent to take a look at your individual project in light of the local market place.

Preparing Your East Bay Home For Sale - Top Ten Value Added Improvements

Nearly every property we list for sale can benefit from some market prep. Buyers need to fall in love with the visual appeal of your home before the will notice any other improvements. Your agent can help you decide how to get the biggest bang for your pre-market buck. Here is our top ten list for showcasing a Bay Area home's best features:

1. Have your home professionally staged. Professional staging ups the ante on a home's emotional cache by creating a magazine quality interior; which in turn sparks the fantasy of that picture perfect life. For the price of one stainless-steel kitchen appliance, you can spread the impression of luxury to every room of the house. The impression of quality will stick, even though buyers have no expectation that the expensive looking stuff is included in the sale. Contemporary furnishings can update a home's interior for a relatively low investment. More importantly, 75% of all buyers use the internet during their home search. When these buyers view the on-line photos, it is impossible to get any perspective on a rooms size and/or best use without the visual map of well placed furnishings. Instead, the viewer's eye goes straight to the rooms back wall. This makes any space look substantially smaller. It has also become an industry standard to show a home "staged." The few homes we see that are not staged give the impression that the homeowner does not believe their home is as worthy as their competition. This impression further diminishes a buyer's perception of value.

2. Professionally paint the home's interior and bring out trim with a contrasting color. One of the benefits of our older housing stock lies in time-honored original details. Make sure buyers take notice by helping them stand out. Fresh paint also reflects pride of ownership and will help buyers feel confident in a home's overall condition. (If you attempt this one yourself, spend extra time on prep and be sure to take the time to achieve a professional looking finish. A sloppy job can have the adverse reaction of putting doubt into your buyer's mind about the quality of other home improvements.) One of our favorite neutral combinations is Benjamin Moore's Mongomery White for the walls (This cream with a tint of yellow looks sun-kissed in any setting) with White Dove trim.

Get expert help when picking the color pallet. Choosing a modern, cohesive color pallet is the most cost effective way to update an interior. Those original details will more easily mix with a buyer's contemporary possessions if a designer color pallet is already in place. It doesn't cost much more to go with color. Just make sure you are getting sound color advice. In the 80's and 90's neutral, "blank slate" walls were all the rage. Then, buyers wanted spaces they could personalize. Now, our demographics reflect busy, often two-income households with limited time on their hands. An appealing color design represents real value to today's buyers.

3. Paint the outside entry, porch and window trim. This can be a good way to update your curb appeal without the expense of repainting the whole exterior. Do caulk, patch and paint any surface in need of attention. When painting porches and walkways, add sand to the mix to improve traction.

4. Professionally polish your hardwood floors. Hardwood floors continue to be a desirable selling feature. Professionally polishing is much less expensive than completely refinishing them, and the visual impact is nearly as impressive. Having your floors polished is often only 1/5 the expense of refinishing, but it has the benefit of bringing there original beauty approximately 3/4 of the way back.

5. Mini-makeover your kitchen. Kitchens sell houses. If yours is not likely to inspire an offer, consider the mini-makeover. Paint existing cabinets and install updated hardware. If the linoleum is dated consider installing Marmoleum over the top. This sheet product is gaining popularity because, unlike linoleum, Marmoleum is considered a "green" home improvement. Finish the look off with a solid surface counter, new sink and faucet. New appliances are a bonus and you may be able to negotiate with the buyers to take them with you to your next home.

6. Mini-makeover your bath. Second in the minds of buyers to kitchens are baths. Repaint chipped bathtubs with an approved enamel paint. Replace any cracked tiles and clean the tile grout. As needed replace the toilet, sink, vanity mirror and update the lighting.

7. Lighten up. A dark house can send a buyer back out the door. Look for cost effective ways to add light to a dark interior. Remove heavy draperies and window awnings. Opt for sheer panels instead. Prune trees to allow more light through the windows. Install a light tunnel to a windowless room or dark hallway. Light tunnels cost less than traditional skylights and are easier to install. Replace dated light fixtures with new ones. There are lots of low cost and stylish options now available online. Add floor and table lamps as needed to brighten a room. Finally install the highest wattage bulbs allowed by the manufacturer in all the homes light fixtures. Warm-toned fluorescents will keep the electric meter from spinning.

8. Freshen up the landscaping. Landscaping for curb appeal includes adding color spots (usually flowers) and the aesthetic pruning of existing plants. Plant themes can help define architecture: A Mediterranean drought resistant garden enhances a Spanish style home, while a cottage garden looks great in front of our California Bungalows. Fresh mulch can make the yard look well maintained. Meandering pathways and delineated outdoor living rooms can help small yards feel more generous. Water fountains can soften the sound of traffic.

9. Create storage solutions. People now days have lots of stuff. Helping buyers picture where there stuff can go can help them visualize living in your home. First on this list is clearing clutter. Clutter in a room will keep buyers focused on your things and they may not see the architecture. Also, if it looks like you no longer fit in the house, buyers will relate and worry where to put their things. A staged house is usually only about 60% furnished. You will notice that dressers are the often missing. Clear closets and cabinets down to the essentials. Add closet systems to maximize capacity. If a room doesn't feel like a true bedroom because it is missing a closet, install one or include an armoire in the sale. If the home lacks a garage, consider erecting a garden storage shed. Sellers often overlook this advice, but if a buyer can't bring their stuff, they will likely not want to live there.

10. Clean, clean, clean. A spotless house will inspire buyer confidence because it speaks directly toward home maintenance. A thorough cleaning can also bring life back to many surfaces. We routinely set up the following for our clients:

• Professional window washing - the best way to bring the outside in and add instant sparkle
  
• Power washing of decks and entryways. Wood decks and mildewed concrete undergo a spectacular transformation with a jet stream of water.
• Carpet cleaning
  
• Interior cleaning with attention to sometimes neglected areas like light fixtures, ovens and the tops and insides of refrigerators.

Share your money conscious improvement ideas here. (Click on text)

In Response to channel 5's local story: Internet Spawns Boom In Homes For Sale By Owner

http://cbs5.com/local/local_story_159212814.html

(CBS 5) SAN FRANCISCO One look on Craigslist, and you can see dozens of Bay Area homes for sale by owners. The practice used to carry stigma, but these days, with the market slowing down, sellers don't want to see any of their home's value lost in fees.

I am all for friendly competition, but there is a side of the story that has not been told amidst the onslaught of reports pertaining to saving the expense of commission. There are huge profits to be gained through the use of an expert. In an area of older housing stock, nearly each listing we take goes through its own "mini-flip" prior to coming on the market. This is much more extensive than just a bit of staging. We do full color consultations, organize a multitude of contractors and on occasion even move walls. And we do this with the expertise and know-how only gained through years of looking at houses through buyers' eyes. No one is better equipped to help you spend your pre-market prep dollars better than an experienced, active realtor. I have seen this create monumental gains for sellers. Much like the benefits obtained by traditional property flippers, our sellers see wonderful returns on these concentrated efforts (expertly designed to spend only the dollars that make the greatest impact.) I should add the obvious here: Even though we spearhead this effort, we do not take any of this windfall other than the agreed commission. Our efforts are designed to create greater opportunities for our sellers.

There is also a theory out there that Realtors paychecks have gone up exponentially throughout the housing boom. This may be true in some cases. However, good agents have added value and additional services to their repertoire. In addition, the Internet has made a techno-savvy realtor's job exceedingly more expensive and time-consuming (a myriad of sites to optimize, property websites to build, web locations to create a presence, email lists to maintain....)

The homeowner in the interview also stated that it doesn’t make sense to him to price something low and hope that it gets bid up. "Starting to price the home with $100,000 less than what other homes have gone for doesn't make any sense," he said. One final truth from the streets: Things are worth more when someone else wants them. This is never truer than in the current real estate market. If listed at the high price (where some of the homes do ultimately sell), we would likely see many more homes languishing on the market. In truth, there is often little more to justify an aggressive sold price other than “it had a lot of competition.” Absent competition the home's value may in fact be $100,000 less. Only an experienced agent can advise you on how best to cultivate competition.

Buyer Tip: Keeping an eye out for "for sale by owner" (FSBO) listings on Craigslist and through other sources is never a bad idea. Your agents commission can still be part of your offer (most FSBOs recognize this as necessary and may already offer a buyer agent a commission in the MLS) and their talents will serve you well. Your agent will help you navigate the process, negotiate items discovered during the inspection process and keep the unguided seller on track throughout the escrow.

Note: Although Berkeley Hills Realty maintains a large list of resources and service providers, the Agents are not licensed as general contractors. Your project may require the services of a general contractor in addition to the valuable advice provided by your Realtor.

Not So Random Acts of Kindness

Annette Bening wasn’t so far off in American Beauty when she played a Realtor stripped down to her unmentionables in order to scrub toilets for her open house. Sometimes we have to do what it takes. Sometimes you go the extra mile because you know that’s what it will take to sell the house. More often, we go the extra mile because we want to create greater opportunities for our clients.

Take a current listing our company has in the Berkeley Hills: It is well maintained with a good floor plan, original charm, and a desirable street address. This property will likely sell quickly based on its own merits. A relatively new agent in our office has the listing, so she has been mentored through the process by a couple of more seasoned associates. We recommended the usual to the Sellers; an intense cleaning, some de-cluttering, window washing…. In the meantime, the owners (a sweet couple with an infant and a two-year-old to add to the challenge) have been working their tails off to get this house ready for the market. In less than two-weeks time, they have packed up all the superfluous baby gear, touched up paint inside and out, repelled down the west side of the property to remove an awning that was robbing light and outlooks from the living room, and moved some large heavy furniture. This is only a partial list, but you get the idea. We, the agents, have been there almost daily through the process; re-arranging the furniture to best showcase each rooms potential, hanging a few or our own photos and props, picking paint colors, running errands, replacing light bulbs….

Upon the second trip back from the nursery with a car load of plants for the landscaping, our new agent (who is very hardworking and bright, but wearing impossibly high heels for a trip to the nursery) asked, “Do you do this for all of your clients?” The short answer was, “you need to create your own sense of boundaries, but when people need us we try to be there.” The longer truth is that the Sellers themselves were adding to the momentum and helping lead the charge. Through the stress of everything they have going on, including inspections on the house they were buying (not to mention the infant and two-year-old), they were always pleasant and appreciative. It’s sometimes these simple niceties that give you energy to do more. I work at a company where our mission statement is to take the best possible care of each person that walks through our doors. That said, our best work – the work which exceeds our own expectations, is often a reflection of someone else’s kindness.

Seller Tip: Light sells. Be critical of things that may be robbing your home of light. Trees that have become over-grown and now block windows should be pruned or removed. The awnings that have spared your heirloom carpets, need to be removed now in order to let the sunshine in. Heavy draperies may need to come down in favor of sheers. Use the maximum wattage allowed by the manufacturer in all of the light fixtures. Add lamps or up-lights to dark corners.

Buyer Tip: Ask your agent to help you track sale's prices of all of the homes you have visited. Even if you did not like all of the homes you have seen in your price range, knowing the sale's price will give you valuable insight into the current market.