If only we could point the finger at someone to blame for the abysmal housing market.  However there were so many factors that – in the end – has been worse than the one during the Depression that we can only trudge along with our heads hanging low for now.

According to MSNBC.com, this housing market has been WORSE than the one during the Depression.

The nationwide index fell for the eighth straight month. Prices have now fallen further since the bubble burst than they did during the Great Depression. It took 19 years for the housing market to regain its losses after the Depression ended.

19 years?  Holy cow, Batman.  I suppose I’ll be here in my house for some time.

Here’s my advice for anyone wanting to sell.  If you see an agent who can afford to advertise at this time, that person has found a way to SELL. Make sure you interview the agent, along with one or two others!

I drove to a yard sale for some friends who are moving out of town to talk to them about whether to list or to rent their house.  This is the sign I STOPPED the car to take a photo of.

It is so disrespectful of a client to have a sign like this actually displayed that I don’t care if you can tell what company it is and who the agent is.  And why?  Why would anyone allow their real estate agent to have THIS in their yard?

Shameful.

One of my Realtor acquaintances from Wisconsin linked to a site that gives some quick tips on staging a house. My own feelings about it are to CLEAN everything first and foremost.  If there are crumbs inside your silverware drawer, remove everything, wipe it out, and restock.  If there are spider webs in your corners, clean them.  If there is dust on top of your ceiling fan, clean it.

Beyond the simple cleaning, though, are colors on the walls, uncluttering, and de-personalizing a home.  I love this tip from Lisa Rossetto-Glowacki,

Clear jars: Gather up several clear jars, different shapes, lids or no lids and fill them with various items to match a room. Create a vignet of three of them on a table, dresser, shelf, or mantle. What to put in the jar? Think simple–different kinds of colorful candy; rocks or seashells; different types of branches; different types of nuts in their shell; Christmas ornaments; spools of colorful thread; buttons; crayons; soaps; soaps in fancy wrappers.

I still have a couple of jars filled with rocks from 10 years ago.  I wonder if that works?!

Photo by J.B. Hill via flickr creative commons.

Any time I work with a client who mentions “early occupancy,” my skin breaks out in cold chills, hair stands on end, and my outside voice threatens to come bubbling up with a loud “NOOOOOOOOOOOOOO!!!!!!!!!!”  But I have worked through a few of them.  They are not usually fun.

When do they happen?

1.  Lease is up prior to closing date and buyer has no where else to go.

2.  Buyer relocating from out of state and house already vacant, so makes sense.

3.  Seller could use the additional rent money.

4.  Early occupancy in lieu of repairs.

Wendy Rulnick of Destin, Florida has tips on lessening the risk of an early occupancy,

- Require the buyer to complete and remove the home inspection contingency prior to move in. Removing this contingency overcomes one hurdle to successful closing. Since most short sales are sold “as is” with the right of buyer to inspect and accept or reject the property, you’ll have that clause out of the way. Also, it might lessen those phone calls to the seller as a landlord after the buyer has moved in.
- Require a lease. This may seem basic, but without it, you might lose legal protections if the closing does not occur and you have a tenant you don’t want. Who negotiates the lease? Property management is a specialty, and it’s not mine. I refer my clients to a professional property manager, or they make their own lease if they are experienced with rentals.

Outstanding advice!

Photo by Diana Parkhouse via flickr creative commons.

One would imagine that when you set your own schedule, you’d have all kinds of free time.  Sneak out to catch a Wednesday afternoon matinee?  Sure, why not!  Lots of lunch dates?  All the time!  Sleep until 10:00 am or 12:00 noon?  Every other day!

NOT.

A friend of mine has been unemployed for about eight months now and said recently that he has NEVER been busier!  Now take being busy like the unemployed, but this time WORK TOO.  Real estate agents do not earn between $30,000 and $150,000 p/year (more or less) by taking in the matinees and sleeping late every day. Their days are crazy busy.

Nancy Milton Holtzscher of Edwardsville, Illinois – who works for RE/MAX Preferred Partners – outlined exactly the kind of day a typical working Realtor has,

• Talked with a customer who wanted to know why a big, national lender hadn’t listed a home it acquired via foreclosure several months ago. Called the REO office of the lender. Transferred around only to find out that the asset was no longer in their system. No advice about where to check next. Told the potential buyer the bad news. Added the property to my watch list.
  
• Sent a new buyer to one of my favorite lenders for pre-qualification.
• Texted a seller just to say “hello” and keep in touch.
• Chatted with another good, local lender about a buyer I sent to them last week. Yes, they got the pre-qualification letter! Now we can look at houses.

She is not kidding. Go read her entire post and you’ll be blown away at the challenges agents face every day.

I know a handful of people who have VERY successfully sold their homes on their own. They were unwilling or unable to pay a real estate agent thousands in commission for their efforts.  While I do believe that using an agent is very important for sellers who are inexperienced or who may find they are already underwater on their loan, some people really can do it on their own.

However, selling your house alone can be fraught with surprises and challenges.  For example, most states require a homeowner to fill out a property condition disclosure form whether they sell alone or use a company to market the property.  This helps provide increased consumer protection for the buyer, but also protects the seller against accusations of nondisclosure.  “You didn’t tell me that water invades the basement during heavy rains!” for example.

Making sure buyers are qualified is a challenge for anyone, but could be especially difficult for owners selling on their own.  Negotiating, home inspections, closing costs…. it can all be challenging.

If you do decide to opt for a selling strategy on your own, be sure to do your homework ahead of time.  Be willing to work with agents who bring clients (perhaps their commission could be added to the purchase price and paid out at closing).  And be patient. It may take awhile.

Photo by Paul Sableman via flickr creative commons.

Photo by Sean A. O’Hara via Flickr Creative Commons.

High prices have played a significant role in the D.C. housing market slump for the last several years, but a recent turn shows a possible reversal.  According to the Washington Blade, the deep freeze may be thawing,

The market is finally receptive to contingency-based arrangements, which means for the first time in five years you can put your property on the market and write an offer on a new home that is tied to the sale of your current home. Homes that we’ve listed on the market recently for buyers looking to trade up or down have resulted in a flow of offers and open house visitors.

All factors seem to indicate that confidence in the D.C. market is finally back. Buyers looking to purchase now as well as those looking to buy within the next year are coming out of the woodwork.

Where D.C. goes, the rest of the nation follows? Let’s hope so!

For just $20,000 per month, you may be able to rent the Hollywood Hills home of hotel heiress Paris Hilton.  She originally bought the home in 2007- the height of the real estate market – and it now needs a warm body.

While a lot of the decor is in black and white – with photos of the famous gal scattered throughout – the best features I saw online were the gorgeous chandelier and the swimming pool.

If I could pick any celebrity home in which to live, I’d have to go for … I don’t know!  Who would you pick?

In real estate, you hear just about everything.  One of the most significant developments of the past several years – aside from the difficulty of getting a mortgage, an over-abundance of houses, and an absence of buyers – is that when you *do* find a buyer, they want it all for nothing.

I had a transaction several months ago where the house sold for almost $100,000 under appraisal and the buyer still complained. A cabinet door was broken, for example.  As a result of a $10 fix, the buyer managed to get the baby grand piano AND a floor to ceiling exquisite mirror with a gold frame.  Mind boggling, it was!

Having an engaged Realtor, being an engaged seller are key in not giving the home away for free.  Be realistic. But also having an alternate plan will bring peace of mind.