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These very same people suddenly have a heart attack when you explain the benefits of having their home staged on the listing appointment.  Consider a very basic staging for $650 on a home with a asking price of $650,000.  Let’s see……….that’s one tenth of a percent of the asking price of the home.  What gives?  Recently I saw the tail end of  Get it Sold on HGTV and here is a great example of the little things that can be done for very few dollars.  Sabrina Soto is not coming over to my client’s and potential client’s home anytime soon, but there are stagers in my area that can accomplish the same affordable miracles that are seen on this program.

A home is probably the largest investment a family has. Thinking of that investment compared to the depreciating asset of  a car they have, I am still scratching my head trying to figure out why there is such a disconnect when it comes time to prepare a home for sale……….especially in the market conditions we are experiencing now.

Recently I was working with a home seller who’s home was on the market and no offers had come in.  Traffic was initially good and open houses picked up traffic, but failed to produce any buyers willing to submit an offer.  With a home now being the lowest price in the neighborhood and  still no offers being generated, it was time to bring in a Stager and evaluate the home.  The evaluation with a written detailed report costs approximately $250.00.  Well worth the investment for the following reasons:

1. The Stagers come in as a buyer and point out the good and bad points of the home from the buyer’s perspective.
2. The Seller has usually been in the property for many years, some simple issues to fix or items to put away may not be apparent.
3. The list of items to address can be addressed individually and even if the seller can accomplish the entire list some changes are sure to help the over all attractiveness of the house.

If the house is priced right and offers are not being generated, then something is distracting the buyers. Stepping back and letting a third party evaluate and give an opinion can be a painful process for the home seller.  Pride of ownership and pride of the things home owners have done to the home can get in the way of objective criticism.  If getting the home sold for the highest price is the objective, then why is it so easy prep and ready when it comes to selling a car vs selling a home?

If you need a referral to a good home stager please call (805) 432-7705

I mentioned last month the sluggish upper end of the market.  If you have a home in the $900k to $999,999 price range, did you know that only 4, yes that is right FOUR homes have sold since January 1, 2011 in  this price range for Simi Valley real estate?   Currently there are 6 homes on the market in this price range and the last sale for the price range was in May.  So, if you are listed in this range and wonder what is happening, wonder no more, even with attractive interest rates buyers for this range are not abundant at this time.  At the same time, 10 Simi Valley homes have sold over 1 million with one of those being a custom spec house.

The ditressed market still is a major influencer on the overall market.  RealtyTrac recently reported:

California default notices increased 17 percent from the previous month to a 13-month high, helping the state post the nation’s second highest foreclosure rate: one in every 243 housing units with a foreclosure filing in October. A total of 29,240 default notices were reported in California in October, a 1 percent increase from October 2010 — the first year-over-year increase in defaults in California since November 2009.

Even though other parts of the country are seeing some relief.  However; Nevada, California, Florida and Arizona continue to battle through many struggling home owner’s loans with modification attempts, short sales and foreclosure.

Below is the 30 year interest rate chart for 30 year conforming loans.  2011 has continues to average with the lowest rates.  It is no wonder that investors are out snapping up deals with money this cheap.  The Blue line below should be a wake up call to those sitting on the sidelines.  The distressed market is continuing to to keep prices in check.

Largest Model in Leisure Village with two car garage and fireplace.  Located in Leisure Village’s Village 29, this home has been freshly painted, new flooring including tile in the entry and bathrooms.  Brand new Stove/Oven, Microwave, dishwasher installed.  1 full horsepower Insinkerator garbage disposal.  New toilets and faucets in the bathrooms.  Rare Two car attached garage model with shelving and storage.    Covered Patio with block wall screening.  Double front door entry.  Formal dining room.  Formal Living Room.  Family room off kitchen with Fireplace. Copper plumbing re-piped in June 2003.  This home looks sharp call for a showing today.  Below is a Video tour of the home and and Video tour of the Leisure Village Community.

For MLS data on 2848 Ivory Ave

2848 Ivory Ave

4 Bedrooms

2 Bathrooms

Approximate Interior Square Feet 1,948

Approximate Lot Size 9,288 Square Feet

New Exterior Paint

Dual Pane Windows

Tile Roof

Kitchen

• Dishwasher
• Garbage Disposal
• Range and Micorwave
• Refrigerator
• Granite counters
• Breakfast Bar with Bar Stools

Living Room

• Fireplace
• Laminate Floors
• Vaulted Ceilings
• Plantation Shutters

Link to see MLS details for 2767 Licia Place including price and pictures

Property Information (Seller Provided)
Location – Neighborhood – Single Family Detached Style Homes

• Cul-de-Sac (Peaceful Street)
• Friendly Neighbors
• Easy Freeway Access

Area Amenities

• Near Local Hiking Trails and Bike Paths
• approx. ¼ mile – Atherwood Elementary
• approx. ¼ mile – Simi Adventist Hospital
• approx. ¼ mile – Atherwood Park?
• approx. ½ mile – Sycamore Square Shopping Center
• approx. 1 mile – Simi Town Center (Mall)

Location – Savings

• Not in Flood Plain (Saves on Insurance)
• No HOA, No Mello roos

Updates and Upgrades

• Solid Oak Front Door with Screened Side Door for Ventilation
• Recessed Lighting
• Ceiling Fans in every bedroom, kitchen and dining room
• Freshly Painted New Crown Molding and Base Boards
• Patio French Doors Screened Side Doors Open for Great Ventilation
• Kitchen – Nicely Tiled Counter Tops, Cast Iron Sink & Tile Floors
• Whole House Fan (1600 cfm) Quiet – Derived from Super Computer Technology
• Mirrored Closet Slider Doors in the Bedrooms
• Windows – Dual Pane, Argon Filled, Low-E Windows
• Attic Fan Temp control -  On When Attic Temps Exceed 100°F

Master Bath (Remodeled Two Years ago)

• Two Medicine Cabinets
• Tile Flooring
• Wall Mounted Face Mirror
• Halogen Lights and Decorative Lights of Mirror
• Grohe Faucets
• Newly Tiled Shower w/ Rain Shower Head, Inset Soap Dish, Niche and Corner Step
• Grohe Fixtures and Glass Doors

Hall Bathroom (Remodeled two years ago)

• Dual Sink,
• Three Door Medicine Cabinet
• 32” Cast Iron Tub
• Obscured Glass Shower Door
• Ventilation and Halogen Light over Shower
• Moen Fixtures
• Inset Soap Dish

Exterior and other Features

• 2 Car Garage with Roll up door.
• Two Whirlybird Fans Installed on Back Roof
• New “Ridge” Shingles
• Motion Triggered Security Lights in Four Locations
• Chimney and Whole House was re- Stucco-ed  in 2005
• DirecTV Satellite, also Wired for Cable & ATT Uverse
• Side Door to Laundry Room has Doggy Door
• Rose Garden – 120 V for Fountain, etc.
• Patio Cover and slab patio
• Boston Ivy Covers Wall
• Low Maintenance Shrubs
• Side of Yard
• Used as Vegetable Garden
• Bushes, Electric Valves for Automatic Sprinklers and Hose Spigot
• Side of House used as Dog Run
• Drainage System (Not Pictured) From Backyard to Street
• Outdoor Outlets on rear of house an switched outlet for front of house
• Grapefruit Tree (Prolific – December)
• Dwarf Lime Tree (Young)
• Peach Tree (Prolific – May)
• Plum (Non-fruiting)

Pricing is in a low trough at this point and has remained in this trend for most of 2011.  The mid to high $200k price point has solidified a low for Simi Valley Single Family Detached Housing and only dips below this range if the properties have significant damage.  A recent article from CoreLogic^® (NYSE: CLGX) stated:

“Even with low interest rates, demand for houses remains muted. Home sales are down in September and the inventory of homes for sale remains elevated. Home prices are adjusting to correct for the supply-demand imbalance and we expect declines to continue through the winter. Distressed sales remain a significant share of homes that do sell and are driving home prices overall,” said Mark Fleming, chief economist for CoreLogic.“

What does this mean for housing above the $500k price point?  Those homes have trended selling at 8%-10% below the original list price showing the the market absorption rate for these houses is still dictated by buyer mood.  The homes between $400k to $500k experience on average only a 3%-4% drop in price from List to Sell.

We can take away the following five points

1. Low interest rates are bringing buyers out.
2. Buyers refuse to bid up pricing and remain patient.
3. Homes in well maintained condition are seeing short market times when price matches buyer sentiment.
4. Investors are out accumulating rental property.
5. Distressed property still make up over 50% of the inventory.

Going back to 2008 there was big push from the industry for Agents to purchase Flip camera; over that time Kodak has entered the Market with shirt pocket sized cameras and the emergence of the iPhone and it’s influence over video on smart phones has really made many wonder why the Real Estate Industry is so slow to adopting a Video Marketing Plan.  I have been consistently been using Video in my Real Estate business since 2007, in 2003 I had a goal to video all my listing and host them online, but prior to Youtube, bandwidth and hosting was a problem, let alone people at home with computers and connections fast enough to deal with online video then.

Fast forward to today and the neglect is astonishing.  The iPad and android devices have people looking for more intense visual experiences,  The maturation of Youtube over the last few years has made Youtube a viable means to distribute content for a Real Estate Agent if done correctly.  So why only 12%?

There is a learning curve – editing and basic equipment  usage really can make a difference in the outcome of the final production quality of video.  Many simply refuse to learn some new skills.

Low Self-Esteem – Yes the same people who put their name and image on everything they hand out are worried about how they will look and sound on video.

Too much work – It is simple enough to get a couple dozen photos, make a slide show and call it quits.

Most research shows that home buyers respond highly to online property information with multiple pictures.  The research also shows that buyers want to see more pictures.  This is where real estate Video can dovetail and provide a marketing edge over listing that only provide photos.

• Video can highlight and explain special features of a seller property better than photos.
• Video can show off the the nieghborhood and surrounding homes where photos cannot.
• Video can educate potential buyers on the schools, shopping and parks in the community, where photos cannot.
• Video on Youtube and other similar sites is very compatible with mobile playback and provides that extra edge in marketing that a slide show or still photos cannot.

So the question remains … Why would a home seller hire agents that don’t provide video home tours?

To see my Youtube Channel  http://www.youtube.com/tedmackel

• People like to move before school starts (contributing to July increased sales).
• Prices have continued to decline making many Simi Valley homes for sale attractive-good-buys.
• Interest Rates continue at historic low rates.  (Money is cheap)
• National Economic News in August and big drops in the Stock Market rocked consumer confidence.
• The Political Atmosphere in Washington DC (created by all parties) is killing consumer confidence.

The average sales price showed some rebound, but I want to recap what the average sales price and the median sales price really tells us.

If you look at the charts I post each month, I break down the sales in price brackets by $100,000 ranges.  You can see each month that the bulk of all Simi Valley single family detached homes are selling under $500,000.  Some months no houses sell in the upper end of the market and when this happens the average sales price can swing pretty dramatically.  In the recent months that swing was influenced by a larger number of homes selling under $300,000.  This trend started in January 2011 and continued on through August.

The Average Price method of looking at the market can give a good idea of how the upper end of the housing market is moving.  dramatic decreases in average sales price indicates the upper end units are not selling.  While the the Median price reveals more of how the average all market is reacting in general.

The last three years has revealed that the low end is selling, what is interesting to watch is how the upper end of the Market (above $500,000) is selling. When Prices are aggressive and interest rates are low investors and landlords come in on the lower end properties as we have been seeing this year in Simi Valley.  The general public typically lags behind the investor activity.  A healthy market in the upper price ranges can indicate better employment opportunities (an improving economy).  It can signal that employers may look to Simi Valley as a place to locate and it can bolster the local economy with a higher demographic of shoppers, all of which can influence property prices upward.

The summary is that the upper markets are still struggling, and the over all perception of good buys is fully being realized by investors and those with conventional financing looking to lock in low interest rate for the long haul.

Past Market Reports:

• Simi Valley July 2011 Home Sales Surge on Volume Average Sale Price drops $57k
• Simi Valley June 2011 Real Estate Market Report
• Simi Valley May 2011 Real Estate Market Report

Thanks for reading Simi Valley’s Premiere Real Estate Blog!

Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty

Ted Mackel is a top producer at Keller Williams Realty Simi Valley,

specializing in Simi Valley Real Estate

(805) 432-7705