Insanity: Doing The Same Thing Over and Over and Expecting Different Results
November 27th, 2007 Categories: In The News Calabasas
Albert Einstein was ahead of his time, he said that insanity is doing the same thing over and over and expecting different results. Albert died in 1955 and in my book, this quote is brilliant and describes perfectly the glut of listings sitting on the market right now in 2007! A true visionary that Einstein.
Yeah, yeah, I’ve heard the news, “the real estate sky is falling”, and they’re selling lots of advertising yapping about it on the TV, radio and in newspapers.
But I’m here in the trenches selling real estate every single day and I think Einstein is the brilliant one and the blue suits selling advertising are spinning the reality to fit their needs. I don’t buy their hype for one little second. Sure the housing market has changed, and yes prices have dropped, but here is the information that they’re not telling you on the nightly news. My news isn’t so dramatic, and in fact a little dry, but it is what’s happening in my little corner of California.
It takes work and knowledge to sell a home these days! Hmm, now that doesn’t sound very dramatic does it? It actually sounds kind of boring, but this is the real news, and this is the kind of news that will get a home sold.
And if you’d like to know how I know this, read on. I’ve changed the details to protect my fellow agents, but the gist of this story is very true.
The big news is that sellers are frustrated, fed up and looking for alternatives. Sellers are cancelling their listing agreements and hiring Agents that actually will work to sell their home.
Cancellation of a listing agreement is a sticky situation but one that has come up often lately.
As a Realtor, I am not allowed to solicit a homeowner that has their home listed with another broker. Twice this month, I have been contacted directly by a seller who has their home listed with another broker and both times, the seller wanted me to list their home. I am allowed to talk to a seller if they contact me, in fact, I can even give them information on my marketing plan and how to cancel their current listing agreement if they ask me.
Both of the sellers that contacted me wanted out of their current listings agreements because they wanted to list with me. Their reasons are another blog entirely so I won’t go in to that here. It is important to remember that most agents don’t want to be in a listing agreement with a seller that wants out. Every agent that I’ve talked to about this scenario has agreed that they would let the seller out of the listing if the seller asked. Many agents even tell you this when they sign the listing agreement in the beginning. In any event, it’s fairly easy to cancel a listing by just asking your agent.
Here in CA we have standardized forms called WINForms for real estate. There is a CA form called a “Cancellation of Listing” fondly referred to as the COL. Below is a sample of this form. As in anything real estate, EVERYTHING is negotiable. If you are considering cancelling your listing agreement, it is important that you read this form thoroughly and make sure that you understand exactly what you are agreeing to. This is a one page form, but very powerful. By simply checking the wrong box on this form you could be agreeing to compensate your original listing agent in addition to your new listing agent. Checking box 4 is the only box that states that there is no compensation to your original Broker. If any other box is checked or any other information is completed, it’s important that you seek legal advice before you sign this form.
Check back for part two of this story. I’ll explain why these sellers are switching agents and how we’re marketing these homes that have already been on the market for sometime.
My sellers have 30% less stressful days on the market than other home sellers in the area (that’s 9 days less for each month on the market)! Call me to find out how. If you would like more information on the Cancellation of Listing form or how to sell your home in this challenging market, please contact me at (818) 652-2937 or tracey@traceyrealtor.com.
| Discussion: 7 Comments »
Pin The Tail On The Bottom Of The Calabasas Market
October 9th, 2007 Categories: In The News Calabasas
I have been working with several would be home buyers here in Calabasas. All of them feel that they should wait until the housing market is at the bottom before they buy a home. Id like to share my explanation of “the bottom of the market” and how it will effect your buying decision.
This is a graph that represents the Calabasas housing market. The left side of the V represents the market going down, the right side represents the market going up, and of course the bottom of the V represents the bottom of the housing market.
If I asked you to plot on this graph where you thought the housing market was right now …
… would you pick this spot or something close?
So you think that the market is going towards the bottom? OK, so if the market isnt at the bottom yet, how will you know when it does hit the bottom?
How will you know when the housing market hits the bottom?
You wont know that the housing market has hit the bottom until prices start to go back up. It will be difficult to be sure that the market has hit bottom for a few months. Its not a sudden shift, it is a slower more gradual shift. Youll be able to tell that the market has turned when prices reach this point (green arrow).
What is the difference in housing prices between the red arrow and the green arrow?
Not much… but there is a difference and it is major.
If you buy a home on the left side of the graph, it is considered a buyers market. You would be more likely to get concessions from a seller including price reductions, repairs, or maybe even personal property.
If you wait until the market turns and you buy on the upswing, you and every other buyer that has been waiting for the market to hit bottom will be bidding on the same house.
There really is not better time to buy a house than now for a few reasons:
- I am suggesting to each and every would be Calabasas buyer to take a good look at the above examples and decide for themselves what percentage the prices will have to drop before they think housing prices have hit bottom and offer that price. For example, if you think that prices will go down another 5%, then submit an offer at 5% below the asking price.
- For more information on how to determine when is a good time to purchase a home in Calabasas or a detailed market analysis on the different Calabasas neighborhood sales, please call me at (818) 652-2937. I track Calabasas sales, monthly, and weekly by neighborhoods and have daily information on closings so that you can stay on top of our changing market.
| Discussion: 7 Comments »
Calabasas September 2007 Real Estate Sales Figures
October 1st, 2007 Categories: Calabasas RE Statistics, In The News Calabasas
Listing your house and crossing your fingers was not enough to sell a house in Calabasas during September.
Fourteen escrows closed in Calabasas during September. This is a 39% decrease in numbers of closed escrows from September 2006. The average price of a home decreased slightly, 6.4% to $1,170,000. Its important to note that because the sample size is so low that even one more $2,000,000 sale would have skewed the average price dramatically.
In addition to publishing the overall sales for September, this month Ive also included a breakdown of each sale. Its important to note that all but one of these homes took a price reduction at least once during its time on the market, many of these homes had to lower the price several times. There are 248 homes on the market in Calabasas as I write this article and 25 homes with an open escrow. Buyers have many homes to choose from and are price savvy. Although interest rates are low, it is much more difficult to qualify for a mortgage now than it was just six months ago.
Although Calabasas Real Estate experienced a slight decrease in overall price, compared to the rest of the San Fernando Valley we are doing well. Stay tuned for my article “Chasing The Market Down” which explains how to price your home correctly in todays real estate market.
If you are interested in selling your home in Calabasas, please call me to see where your home fits in. if you are thinking about buying a home in Calabasas call me to find out which homes may be flexible in their pricing and ripe for a price reduction.
| Sept. 2005 |
Sept. 2006 |
Sept. 2007 |
# Change from 2006 |
% Change from 2006 |
|
| Closed Escrows | 29 |
23 |
14 |
-9 |
-39% |
| Avg. Sale Price |
1,395,603 |
1,250,017 | 1,170,000 | -$80,017 | -6.4% |
September 2007 Home Sales
| Address |
Bed |
Bath |
Story |
Garage | Sq. Foot |
Yr. Built |
Price |
DOM |
|
| CONDO |
4610 Park Granada 3 |
2 |
2 |
1 |
2 |
1,054 |
1972 |
$415,000 |
69 |
| CONDO |
26240 Alizia Canyon Dr |
2 |
1 |
1 |
2 D |
1,091 |
1965 |
$449,500 |
4 |
| CONDO |
4240 S LOST HILLS ROAD |
2 |
2.5 |
2 |
2 A |
1,385 |
1988 |
$516,000 |
113 |
| SFR |
3420 Stoneridge Ct 16 |
3 |
3 |
2 |
3 |
2,499 |
1990 |
$840,000 |
28 |
| SFR |
588 Cold Canyon |
2 |
1 |
1 |
2 |
1,120 |
1936 |
$849,000 |
37 |
| SFR |
23034 Park Dulce |
3 |
3 |
2 |
3 |
2,864 |
1987 |
$850,000 |
74 |
| SFR |
3418 Dorothy Rd |
3 |
2.5 |
3 |
2 D |
2,212 |
1992 |
$899,000 |
140 |
| SFR |
24771 Calle Serranona |
4 |
3 |
2 |
3 A |
2,446 |
1988 |
$1,075,000 |
7 |
| SFR |
24743 Calle Altamira |
4 |
3 |
2 |
2 A |
2,681 |
1989 |
$1,100,000 |
147 |
| SFR |
3752 Camino Codorniz |
5 |
5 |
2 |
3 |
3,307 |
1989 |
$1,485,000 |
113 |
| SFR |
4500 Park Serena |
4 |
4.5 |
2 |
2 A |
3,981 |
1980 |
$1,501,500 |
32 |
| SFR |
23278 Park Basilico |
5 |
4.5 |
2 |
3 A |
3,788 |
1989 |
$1,510,000 |
128 |
| SFR |
5851 SLOAN PL |
5 |
4.5 |
2 |
3 A |
4,597 |
1996 |
$1,950,000 |
304 |
| SFR |
25551 Prado De Las Flores |
5 |
5.5 |
1 |
2 A |
5,296 |
2005 |
$2,940,000 |
150 |
| Discussion: 7 Comments »
Tiny Little Breadcrumbs on the Path to Calabasas High School
September 7th, 2007 Categories: In The News Calabasas
Life isn’t always so easy…no one said it would be, but every once and awhile you get a little nugget, a tiny little breadcrumb to show you that you’re on the right path. Today was one of those days. My son, who is sixteen, is a man of little words. Ever since his was little, he just didn’t talk unless he had something to say. No polite small talk for this kid, just a smile, a nod, a yep, or a nope.
Today, we were sitting in the dentist waiting room and he looked at me serious as a heart attack and said, “I heard something interesting in school today.” So I’m all ears, since the boy doesn’t speak unless spoken to. I said “really?” He said, “Yep, would you ever try to put a puzzle together without a picture?” I said “What do you mean?” He said, “You know, those puzzles, they come with the picture on the box, do you think you could put the puzzle together without the picture?” I said, “Hmm, I think it would be pretty hard.” He said, “If it was one of those huge puzzles, with say, 1,000 little pieces, do you think you could put it together with no picture?” I said, “No, probably not.”
He didn’t say anything for a minute. Then he said, “Well that’s kind of like life, if you don’t have a plan, you really can’t live it, you’re just picking up the pieces and trying to figure out where they go.” “You pick up one piece and you put it down, and then you pick up another piece and you put that one down, you just never know where the pieces go.”
OK, so now I’m floored and praying that the hygienist is busy. I stare at my little luminary wondering where the heck he came up with this piece of wisdom. Not wanting to ruin the moment, I ask tentatively, “Where did you hear this?” He said, “My teacher said it in class today and I just thought it was a great metaphor for life.” I swear, he used the word metaphor. This is a kid who struggles in English class. Now I’m trying to push my jaw up to meet the top of my mouth so he won’t notice that I’m shocked. I’m hoping that he’ll keep talking.
And he does, he says a lot. He told me that in his investment class the teacher, Mr. Papotta, said that most of the people driving around in the flashy cars and living in the mini mansions are in debt, serious debt. He says the class is all about how to plan your financial future, so you don’t end up having to work for a paycheck your entire life. As it turns out, the investment class that he’s taking at Calabasas High School is using Rich Dad Poor Dad by Robert Kiyosaki and Think and Grow Rich by Napolean Hill as textbooks. And better than that, the teacher is inspiring and hes getting through to the students.
The course description is as follows: This class provides students with a complete understanding of stocks, bonds, options, mutual funds, and much more. Emphasis will be placed on having students become more aware of the major sectors of the world of finance: banking, the financial market, and real estate. Managing one’s financial future is emphasized, and students will participate in several simulation projects. Careers in finance will also be explored.
The Las Virgenes School District (Calabasas High School and Agoura High School) has an excellent Regional Occupational Program that offers several unique and different classes for grades 11 and 12. Some of the classes offered are:
- Automotive Technology 11 – Calabasas and Agoura
- Building Construction – Agoura
- Cisco Networking – Calabasas and Agoura
- 3D Computer Animation Calabasas and Agoura
- Computer Applications MOS Certification – Calabasas and Agoura
- Creative Cooking – Calabasas and Agoura
- E-Marketing – Calabasas and Agoura
- Mechanical Drawing 11 – Agoura
- Careers in Education – Calabasas and Agoura
- Investments and the Young Entrepreneur – Calabasas
- Fashion Design – Calabasas and Agoura
If you’d like to see the entire course catalogue for Calabasas and Agoura High School click here.
The little bread crumbs that I saw so clearly on my path today made it clear that living in the top rated Las Virgenes School district is the right decision for my family. I’m so glad that I live in Calabasas and my son has an opportunity to take this amazing class. I’m excited that the Las Virgenes School District offers a wide variety of classes so that our children can try on different fields now while they’re still putting together the picture of their futures.
If you are thinking about moving to Calabasas, please call me at (818) 652-2937 and I’ll send you the school district’s API scores along with an in depth report on each individual school. I can also give first hand information about the different neighborhoods in Calabasas including home pricing histories.
Every child deserves an education that inspires as well as educates.
| Discussion: No Comments »
It’s a Small World and We’re All Connected
August 31st, 2007 Categories: In The News Calabasas
What do Six Degrees of Kevin Bacon, Viral Marketing and John Gerard all have in common? A lot in my book. The Kevin Bacon game is based on the concept that it’s a small world, and we’re all connected. What you try to do is link any actor to Kevin Bacon in as little links as possible. For example, Jack Nicholson was in A Few Good Men with Kevin Bacon. Michelle Pfeiffer was in The Witches of Eastwick with Jack Nicholson, who was in A Few Good Men with Kevin Bacon. So Kevin is linked to Jack in only two degrees.
Viral marketing isn’t so different, it too is based on the concept that it’s a small world, and we’re all connected. Viral marketing is a technique that uses pre-existing social networks or relationships to increase brand awareness through self replicating viral processes. People pass along a marketing message voluntarily, for example, a funny video clip, an interesting article or a blog via email, text messages or even by word-of-mouth.
Who the heck is John Gerardand what does he have to do with any of this?
John is an amazingly passionate guy from Syracuse NY who quit his job, cancelled the contract on a house that he was buying and is driving across the country while conducting a unique social experiment. He wants to find out if a person can get famous in 31 days with just buzz. Its been a about a week since he started his trip and based on what I’ve seen, I think he is going to do it.
First let me give you my Six Degrees of separation on how I even know who John Gerard is. I’m a member of Active Rain a real estate bloggers website. Colleen Kulikowski posted a blog called the Laurie Manny Challenge, 3 Posts I think you should read. This was a contest asking Active Rain members to write about their three favorite blogs. John Novak listed Problogger as one of his three favorite bloggers in his contest post. After reading John’s post, I subscribed to Problogger. A few weeks later Problogger interviewed John Gerard and wrote a blog post about his story. From that article I clicked on the Famous in 31 Days link and that’s why you’re reading this now.
This is the perfect example of viral marketing and the concept that it’s a small world and we’re all connected.
But wait…..there is more to this story and this gets good, so stay with me here. After checking out John Gerard’s Famous in 31 days website and watching his videos I immediately become sucked in to his project (this is exactly what viral marketing is supposed to do). His story and project appeal to me on both a personal and professional level. Personally, this man is risking his career, his life savings and his reputation to follow his dream. He ultimately wants as much media attention as possible in the next few weeks to become famous (virally).
He is documenting his trip with a video camera as he goes. He posts video clips (video blogs/VLOGS) on the web as his trip progresses and plans to make a documentary at the end of his journey. John’s goal is to end up in Los Angeles on the Tonight Show with Jay Leno.
I called John yesterday to interview him for this post. He is warm, articulate, full of energy, has a great sense of humor and is very passionate. After chatting with John for awhile and getting all the background information I asked him what I could do to help him reach his goal. We talked about this for awhile.
What John really needs is publicity and viral buzz. As I see it, he needs the same thing that bloggers need. What I’m asking you my reader, is to take a peek inside your little black book, Rolodex, Blackberry and see who you know that connects to fame. Can you connect fame and John Gerard with your contacts? Maybe you know a news reporter, a TV personality, a producer, a film maker or even a movie star? Perhaps you can write about John in your blog?
I bet you’re asking yourself why you’d get involved with this project? This has nothing to do with real estate. Well I’ll tell you why, this is all about viral and so is blogging. This is an important social buzz challenge and as a blogger its a great demonstration of what a dream and a few typewriter keys can do. In John’s case, a dream and a video camera.
Check out John’s Famous in 31 Days website, and watch a a few of his videos. His email address and phone number are right there on the site. He answers his email and phone personally. If you do decide to post a story about John on your blog, be sure to email him a link so he can post it on his website.
Its a small world and we’re all connected.
| Discussion: 15 Comments »
Buyer Beware – Don’t Remove Your Loan Contingency – Podcast
August 30th, 2007 Categories: In The News Calabasas
Like sand through an hour glass so are the days of our lives so does the mortgage business change. We all have done some pretty quick thinking lately to keep up with the recent changes in the mortgage industry.
Living and working in Calabasas, CA, which just happens to be the headquarters for Countrywide Mortgage has made the the media hype here even worse. No, the sky is not falling and yes there are things we can do to protect our buyers in the event that we have another mortgage episode.
Im advising my buyers not to remove the loan contingency until their mortgage actually funds. You can listen to my podcast by clicking below.
Those of us that have been in the real estate business for more than a decade know that theyll keep turning that hour glass over and over. New mortgage products will be developed, life and real estate will go on just like the sand through the hour glass.
[boomp3]http://boomp3.com/m/1d514ba94afc[/boomp3]
| Discussion: No Comments »
Comb Over Anyone?
August 29th, 2007 Categories: In The News Calabasas
My Grandfather had a comb over long before The Donald made it famous. He was a Serbian immigrant and actually was quite handsome for an old guy; well that’s what all the old ladies in his town thought anyway. I’ll never forget the first time I saw his comb over blowing in the wind…it was long (past his shoulders). My sister and I could not contain ourselves and we started giggling uncontrollably. My Grandfather, being the suave ladies man, calmly folded the hair fringe over his bald spot without missing a beat in the conversation and winked at us coyly.
It was much easier for my Grandfather to cover up that shiny bald head of his than for us to cover up what’s happening with mortgages right now. In Calabasas, CA where the average home sold for $1,260,000 last month we have a different sort of problem than the media is whining about right now. First some background. I did a little research to see exactly how much of this foreclosure hype is actually affecting our city. I pulled all of the Notice of Defaults filed in Calabasas. As of August 12, there were only ten. A notice of default is usually filed when a homeowner has missed more than two mortgage payments. Most of the time, the mortgage is brought current or the home is sold and the house never goes in to foreclosure. There are only three homes in actual foreclosure in Calabasas as I write this article, two of them are condos and one is a $3,750,000 home.
The foreclosure problems that are plaguing the rest of the country and CA don’t see to be affecting us right now. But we’re not exempt, Calabasas has its own problems when it comes to the mortgage situation. Since our average home price is so high, buyers generally end up applying for stated or no doc loans. Consider that it takes $300,000 of income with 20% down to qualify for a $1,500,000 purchase price. That means you need to have 20% or $450,000 down plus closing costs (approximately 3%). Believe it or not, most people don’t have a problem with the down payment because most buyers in this price range are move up. This means they’re selling a house to buy a larger house and they have the equity from their old home. The real problem is qualifying for the mortgage now that the mortgage qualification parameters have changed. Just a few months ago a buyer with good credit and 20% down would get approved for a mortgage with no tax returns or pay stubs with no problem. My experience has been that people in this income bracket may not always be able to document their income or may not want to provide tax returns especially when they’re self employed.
The mortgage credit crunch poses new problems for both sellers and buyers in Calabasas because of these stricter underwriting guidelines. The interest rates are still at a historical low but available mortgage products are now the issue. Here are some tips regarding mortgages to consider if you are contemplating buying or selling a house in Calabasas now.
If you are selling your home.
1. Work with your Realtor to determine who your target buyer is and what sort of income they will need to purchase your home.
2. Offer incentives targeted directly to this type of buyer that would make qualifying for a mortgage easier.
3. Make sure that your Realtor has a good relationship with a lender that can assist in making your home affordable using today’s mortgage products.
4. Its important to remember that buyers buy a monthly mortgage payment. It’s vital that you know what this payment is when your home marketing plan is developed.
If you are buying a home.
1. Make sure that you meet with a reputable lender before you start looking for a home. It’s important that you have your credit report and all necessary documentation checked before shopping so you know exactly which mortgage product will fit.
2. Please don’t choose your lender randomly. Now more than ever, it’s imperative that you work with a lender that has a track record and is reputable. You Realtor should be able to provide you with personal references of several lenders that they have worked with in the past.
3. Make sure that you hire a Realtor that is very experienced in a buyer’s market. There are several things that can be written in to a purchase agreement that will protect your down payment should mortgage issues arise during the transaction. Stay tuned for my upcoming podcast about the CA purchase agreement and how to use it to your advantage in a buyers market.
I work primarily with home buyers and sellers in Calabasas CA and understand the unique challenges that our micro climate has. I see the two major problems with marketing a home in Calabasas right now, as the media hype and the loss of some no documentation mortgage products.
There is always more than one way to skin a cat. With over 20 years of experience in the real estate industry I look forward to helping you solve your real estate challenges. Please call or email me to discuss your specific needs.
| Discussion: No Comments »
A Picture is Worth 1000 Words…What’s a Video Worth?
August 28th, 2007 Categories: Home Selling in Calabasas, In The News Calabasas
If this is how I market myself, can you imagine how I’d market your home? I use video to market all of my Calabasas listings. That’s right, every single home that I list gets a full motion video including music, voice overs and me pointing out the highlights of your home. Plus a neighborhood story is added to the beginning of each video to emphasize the wonderful Calabasas lifestyle.
People buy homes with emotion and justify with logic. Nothing captures emotion like video. Your open house video is uploaded to several websites including YouTube, Google Video, Realtor.com and more. Eighty percent of homebuyers start their home search online. Video is the best way to capture and keep their attention.
To see a sample of one of my online video tours check out my website. But before you do that, watch this video to see what else I do to market your home.
| Discussion: 2 Comments »
Before You Make Any Home Improvments – Consult Your Realtor
August 21st, 2007 Categories: In The News Calabasas
I cringe when I have to tell a seller that they will see little return on the money they’ve spent in remodeling their home. Upgrades must be appropriate for the style and price range of the neighborhood or they could actually detract from the value and salability of the home.
This morning I was in the Woodland Hills Home Depot and ran into a couple that I had sold a home to several years ago. I was so glad to see them but when I looked at their shopping cart full of stuff, I asked them what they were doing. They laughed and said they were doing the home improvement thing. I asked them if they still planned to move when their children got to middle school. They said yes which surprised me when I saw what was in their cart.
I explained that it’s great to make improvements that you’ll be able to enjoy for the next few years, but since they’d be moving in less than five it might be a good idea to make sure that the return on the investment made sense. I then offered to go over their remodeling plans with them to make sure that they’d reap the financial benefit when it was time to see their home.
Think about this the next time you decided to remodel or add to you home. Some upgrades will actually add to the value of the home and you’ll see the return when you sell, other projects that don’t fit the price range or neighborhood won’t affect your sale price at all.
The next time you decide to spend money on upgrading or adding features to your home, you may want to call me to determine if it truly makes sense. It’s important to keep in mind your goals and your moving plans.
| Discussion: No Comments »
July 2007 Real Estate Sales Statistics for Calabasas
August 12th, 2007 Categories: In The News Calabasas
| July 2005 |
July 2006 |
July 2007 |
# Change from 2006 |
% Change from 2006 |
|
| Closed Escrows | 49 | 34 | 27 | -7 | -20.59% |
| Avg. Sale Price | 1,167,006 | 1,264,676 | 1,131,801 | -132,875 | -10.50% |
| Discussion: No Comments »
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