Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers

How To Make Buyers Want Your Home

You love your home but when it comes time to sell, you have to share the love. In the other words, you have to make your home be seen in the eyes of potential buyers as their home. That can be tricky.

But if you do some of the basic things such as clearing clutter, creating light, bright, and open space, adding curb appeal, removing personal items (family photos, trinkets), fresh paint, and clean or new carpet -- you'll be on your way to attracting serious buyers.

Let's look at specific areas that create widespread appeal inside the home.

Here are some of the top areas to improve: countertops, flooring, built-in furniture, and old-style attached fixtures such as those big sheet mirrors in the bathroom. However, when making these improvements, there's one important consideration.

Functionality is the greatest concern cited by homeowners, according to the latest poll conducted by the National Association of the Remodeling Industry (NARI).

The functionality of a home is very important, especially over the long term, as many homeowners in this economy have opted for remodeling over moving to new homes.

So let's explore the areas I mentioned earlier and see how improving these items can lead to greater interest in your home. Countertops are fixtures in homes. So making sure that you select the best material to endure the daily wear and tear is important. If we're talking about the kitchen, for instance, there are many options: granite, tile, recycled glass (for a green option), solid steel, composite stone, butcher block, laminate, and even concrete. Yes, that last one sounds surprising but concrete is being used for countertops and laminate isn't necessarily trying to mimic other materials anymore. Instead, homeowners are embracing laminate's own unique high-tech look. The popular trend is a mixing of several styles creating a blended custom look for the kitchen. But in the end, functionality will rate highest for potential buyers. All of the countertop materials mentioned above have advantages and disadvantages when it comes to maintenance and usage; make sure you completely research the material before selecting it for your home.

Fixtures are an important area to improve. "People know a lot more about design,"  These days, quirky, eclectic styles from international trends are becoming more prevalent in the United States. However, push the envelope too far with quirkiness and you just might lose a potential buyer. What's important to know is that buyers are paying attention to fixtures. If you have damaged or worn out faucets or lighting, it's best to replace them before showing your home. Also, replacing those big, nothing-special sheet mirrors with some framed mirrors can add a unique look without costing very much. While you don't want to have to spend a lot just before you sell your home, remember that these seemingly small items can have a great impact on improving buyers' interest in your home.

Flooring is a big interest for buyers. Wood floors are still very popular. Many Realtors say buyers are looking for hardwood floors. That's partly because they endure and don't go out of style. However, if they're damaged it can be a drawback because buyers may focus on how much work it will take and cost to do the repairs.

Built-in furniture can improve a home. Built-in bookcases and entertainment centers can save space and help make the room look larger. However, there's a downside. Built-in furniture isn't easily movable. So, potential buyers will have to really find the furniture useful and suitable for their needs. "It's all about personalization—homeowners want to know that their space can be converted easily into a different space in the future". And that's what buyers want as well—the ability to make your home theirs when the sale closes.

Tree Falls Over Property Line: Who Pays? Who Picks Up the Pieces?

If a neighbor’s tree falls over your property line, file an insurance claim for repairs and cleanup. No house damage? Check if chopping and hauling debris is covered.

If a neighbor's tree damages your property, your insurance company should pay to repair the damage, then decide whether to seek reimbursement from your neighbor.

When a neighbor’s tree falls over your property line, yell TIMBER, then call your insurance company. Home owners policies cover tree damage caused by perils like wind and winter storms. Most policies cover hauling away tree debris if the mess is associated with house damage; some will cover cleanup even if no structures were harmed.

When a tree falls

Your neighbor is responsible when a tree falls over your shared property line only if you can prove he was aware that his tree was a hazard and refused to remedy the problem. Regardless, your insurance company restores your property first, and later decides whether or not to pursue reimbursement from the neighbor or his insurer if the neighbor was negligent in maintaining the tree.

Before a tree falls

Write a letter to your neighbor before his dead, diseased or listing tree falls through your roof or over your property line.

The letter should include:

Description of the problem
Photographs
Request for action
Attorney letterhead—not necessary but indicates you mean business.

Trim their trees

If the limbs of a tree hang over your property line, you may trim the branches up to the property line, but not cut down the entire tree. If a tree dies after your little pruning, the neighbor can pursue a claim against you in civil or small claims court. Depending on the laws of your state, your neighbor may have to prove the damage was deliberate or caused by negligence, but may also be able to recover up to three times the value of the tree.

Before you cut, tell your neighbors what you intend to do to protect your property. They may offer to trim the whole tree instead of risking your half-oaked job.

Your tree falls

It’s always a good idea to take care of your big and beautiful trees, and keep receipts for trimmings and other care.

But if your tree falls over a neighbor’s property line, do nothing until their insurance company contacts you. You may not be liable unless you knew or should have known the tree was in a dangerous condition.  If you pruned a tree or shored up trunks to prevent problems, gather your receipts to prove your diligence.

Invest a Tax Refund in Your Home: $1,000 Projects

Consider these five great projects that cost around $1,000 if you decide to invest a tax refund in your home this year.

If you buy a qualifying energy-efficient exterior door in 2011, you can claim a tax credit worth up to $500.

Getting money back from the IRS is a silver lining to paying taxes, but why invest a tax refund in your home instead of, say, a weekend getaway? Because your home is probably your biggest asset, so it pays to take care of it—literally. Even modest investments such as a new washing machine or exterior door can yield surprisingly big returns.

The average tax refund changes from year to year, but lately it’s totaled around $3,000. That’s a tidy windfall. Not everyone is so lucky, of course, but even if you only get back a portion of that amount, there are many great ways to invest a tax refund in your home. Consider these five projects that cost around $1,000.

1. It all comes out in the wash

It might not sound sexy, but equipping your laundry room with a new washing machine will pay off immediately on your utility bills. Today’s high-efficiency washers use less water per load than standard top-loaders, so you save on your water and water-heating bills. Replacing a washer made before 2000 with an Energy Star model can save a typical homeowner as much as $135 annually.

A high-efficiency top-loader costs between $700 and $900. A stylish and even more efficient alternative is a front-loading washer. Prices for front-loaders start at about $750. As a bonus, either high-efficiency option could net you an appliance rebate from the manufacturer, your local utility company, or your state government.

2. Make your mortgage disappear

A mortgage, especially one that spans three decades, can seem insurmountable. Yet it’s possible to use small sums of money over time to make a big dent in the principal. The net result is saving thousands of dollars on interest and shortening the time you spend paying off the home loan.

Let’s say you take out a $250,000 mortgage. The rate is fixed for 30 years at 6%. Your monthly payment would be $1,500. Over 30 years, you’d pay a total of $540,000. But if you pay an extra $100 per month—$1,200 per year—you’d pay off the mortgage four years early and save $52,000 in interest. Use a mortgage calculator to run your own numbers.

3. Where there’s no smoke, there’s fire

Do you dream of curling up in front of a roaring fire, yet your home lacks that one essential ingredient—namely, a fireplace? Don’t fret. Your dream can become reality at a surprisingly affordable price. Ventless fireplaces offer the ambiance of the real thing without the need for a chimney or flue to vent smoke outdoors.

Ventless fireplaces, which exhaust small amounts of combustion gases inside the home, can run on natural gas, propane, electricity, or flammable gel. At between $2,000 and $6,000, including professional installation, gas units are pricey. More budget-friendly is an electric vent-less fireplace that starts at $1,000. All you need to do is plug it in. Gel-fueled fireplaces are in the $300 to $700 range, with no professional installation required. A gel canister that’ll burn for two-plus hours costs $3.

4. Don’t knock it ‘til you try it

A new entry door can do wonders for a home. Not only can it enhance curb appeal and security, but the right door can lower utility costs too. An energy-efficiency exterior door can shave as much as 10% off energy bills. Plus, if you install an eligible door in 2011, you can claim a federal tax credit worth up to $500, excluding installation charges.

Wood and fiberglass doors are usually the most expensive options, but you can get a steel entry door installed in a couple of hours (assuming no surprises) for about $1,200. The money you get back from the tax credit will reduce this cost. As a bonus, Remodeling Magazine estimates that a $1,200 steel entry door replacement project actually will add an incremental amount of value (102%) to your home.

5. You take the high road, I’ll take the slow road

Don’t let your property line limit your spending plans. Some small investments on your part can benefit an entire neighborhood, which not only improves livability but can also increase property values. Take, for example, the speed hump, a raised mound of pavement on a residential street designed to slow lead-footed drivers.

One traffic-calming study found that 12-foot speed humps reduced average speeds by 22% and the average number of traffic accidents by 11%. You’ll need to work with your local government to have a speed hump installed, but offering to foot the bill can grease the wheels of bureaucracy. Basic speed humps start at about $1,000 apiece. Your share will be less if you convince neighbors to chip in.

Five Steps to First-Time Home Buyer Happiness

The first step in the home-buying process is to find out what you can afford to pay for a house, condo or co-op. This will depend on the amount of cash you have available for a down payment, your credit, income, assets, and overall financial situation.

Mortgage qualification is easier for buyers who work as employees whose income can be easily verified. Self-employed individuals or buyers with income from investments may find the qualification process more difficult.

A wrinkle in the financing end of the home-buying process is that it's not as easy to get a preapproval letter from your mortgage broker or loan agent as it used to be. As of Jan. 1, 2010, the Department of Housing and Urban Development (HUD) began requiring lenders and mortgages brokers to issue a binding Good Faith Estimate (GFE) within three days of receiving a loan application.

Before then, buyers shopped around for a mortgage. When they saw a house they wanted to buy, they asked their loan agent or broker to provide a preapproval letter to accompany their purchase offer. The loan person would run a credit check and verify the buyers' income and assets without, in many cases, taking a formal loan application. On the basis of this information, a preapproval letter was written.

Without a formal loan application, many lenders today will issue only a prequalification letter, which does not carry the weight of a preapproval letter. Find out from the loan representatives you talk with what kind of letter they can provide and what you have to do to get a preapproval letter.

HOUSE HUNTING TIP: You are in a much stronger position negotiating with a seller if you have a preapproval letter stating that you are qualified for the mortgage you will need to close the sale. It could be essential if you are in a multiple-offer competition. A prequalification letter may suffice in an area where there is a surplus of inventory of unsold homes.

Your goal is to buy in the best neighborhood you can afford without overextending yourself financially. Don't buy a home that you will outgrow in the next couple of years. The economic recovery is going to take years. You don't want to be caught having to sell at a price lower than what you paid. Even if prices don't decline further, you won't break even if you sell for the price you paid after taking the costs of sale into account.

Buy a home that has good resale potential. Many homes that aren't selling in today's market have incurable defects, such as a steep or shared driveway, a lot of stairs leading to the front door, or a location on a busy street, next to a freeway or too close to a commercial zone. An incurable defect is one you can't change. A curable defect includes such things as deferred maintenance or an outdated décor. These can be improved.

When home prices are escalating, buyers are more willing to compromise. They'll buy a home with an incurable defect, just to have the opportunity to buy in their desired neighborhood. Sellers don't always have control over when they sell.

THE CLOSING: It makes sense to buy a house that has broad-based appeal and will sell well in any market.

Imagine walking into an important job interview looking like you just dragged yourself out of bed. You'd be unlikely to make a good impression and diminish your chance of securing the job.

The same goes for selling a home. First impressions are lasting. Some buyers won't even look at the inside of a listing that doesn't have good curb appeal.

Today's buyers are picky. There is no sense of urgency in the market, so buyers are holding out for the best home they can find that will work for them for years to come. In some areas, there are a lot of homes for sale. It's important to make sure that buyers will be attracted to your home before they even walk through the front door.

Fortunately, exterior improvements needn't be expensive. The recent Remodeling Cost vs. Value Report 2010-2011 found that the improvements that yielded the highest return on the investment when sold were a new steel front door and a new garage door.

The average cost nationally for a new front door was $1,218; the return was 102 percent. The average cost for a new garage door was $1,191; the return was 83.9 percent. The top nine of 10 most cost-effective improvements nationally were for exterior projects. Curb appeal is as important as ever, and may be more so in this market.

The Remodeling Cost vs. Value Report is a collaborative report done annually by Remodeling Magazine and the NATIONAL ASSOCIATION OF REALTORS®. It compares construction costs with resale values, which are based on estimates from more than 3,000 REALTORS® and appraisers.

Sprucing up the front yard for sale needn't be costly. Clean out weeds and dead plants. Add flowering plants for color and mulch to tidy up areas that aren't heavily planted. Replace a lawn that has seen better days with less lawn and a border bed of flowering shrubs.

Do in-ground planting well in advance, if possible, so that plants have a chance to get established before your home goes on the market. If you have no choice and must plant at last minute, be sure to remove the ID tags from the nursery.

A deteriorated fence should be removed, repaired or replaced. Any peeling paint on the front walk and steps and house exterior and trim should be refreshed. The side of the house that gets the most exposure needs the most maintenance. If you've let it go, you'll be docked dollars by the buyers unless you repaint where needed before you sell.

HOUSE HUNTING TIP: The amount returned on home improvement investments varies from one location to the next. It's important to consult with your local real estate agent before you embark on an upgrade to make sure that you don't overpay on an improvement that won't generate the desired result.
Most homeowners assume they'll get their money back and more when they sell. In fact, most upgrade investments often don't return 100 percent of the amount invested, particularly in a down market.

A minor mid-range kitchen remodel returns 72.8 percent nationally, according to the 2010-11 Remodeling Cost vs. Value Index. In the Pacific region of the U.S., you're likely to recoup 84.1 percent.

However, a major upscale kitchen remodel pays back only 59.7 percent nationally and 66 percent in the Pacific region. It makes sense to take on a major remodel project only if you're staying in your home and can enjoy the use of the improvements before selling.
A deck addition ranked high on the list of popular exterior improvements. Although, nationally the cost recouped is only 72.8 percent, it may be an essential enhancement if your home has no outdoor living space and all the homes for sale in your neighborhood do.

THE CLOSING: Supply and demand in your local area will also impact how much you'll recoup from your fix-up investments.

Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers

The three Ls and four Cs of Paradise house-hunting

By now, we're probably all familiar with the famous three Ls of real estate: location, location, location. But if you're shopping for a house and limiting yourself to those three Ls, you might be doing yourself something of a disservice. Keep the Ls in mind while you're on the real estate trail, but I'll show you how to use them to expand your thinking a little. We'll also look at how the four Cs can help with your search as well.

The three Ls

OK, one of the Ls definitely still needs to be location. When you're buying a home, there's simply no substitute for location, since you can't move the house after you've bought it. (Well, technically you can, but that's obviously not exactly your first choice for how to approach things).

Location can mean a lot of different things to a lot of different people. It might be a short commute to work. It might be a particular school district. It might be an older established neighborhood, or an area with lots of parks or shopping, or an active social scene. If you need to be in a particular location, that should be one of the first criterion for your search.

The next L is for "land" or "lot size." This is another thing that you can't readily change about a house, so pay close attention to it. You may find the perfect house in the perfect neighborhood, but if the lot's too small, or on a busy corner, or has a slope or an odd shape that won't fit that pool you want to put in some day, then no amount of rationalizing about how great everything else is will ever change that.

The third L is "layout." Pay particular attention to how the house is laid out, and whether that layout is going to work well for your particular needs. Is it the one- or two-story house that you wanted? Is the kitchen open the way you want? Are the bedrooms on the floors where you want them? Layouts can be changed to some degree, but often not easily. The changes can sometimes require extensive -- and expensive -- remodeling work. So it's definitely better to get what you want from the outset.

Don't sweat the Cs

Those three Ls are all something to pay close attention to, because they're either impossible or potentially very costly to change. But a lot of buyers can get hung up unnecessarily on another group of real estate letters: the four Cs. This group can sometimes blind you to the potential in an otherwise ideal home, so be aware of where they lurk when you're shopping.

The first of the Cs is "condition." It's easy to be turned off to a great home in a great location because the overall condition is run-down or outdated. But remember, as long as there are no major structural issues, condition problems can be taken care of. And they can also represent a great negotiating point, especially with a motivated seller. This can also apply to specific components of the house, such as the roof, the windows, the flooring or the heating system.

If you're not sure exactly when a condition item crosses the line from run-down or outdated to a genuine problem that affects the structural integrity of the house, that's where you need to rely on the experts. If this is a house that you're seriously considering, it's time to call in a home inspector or other professional to help you evaluate how extensive any potential problems might be.

The second C is "color." Before you walk away from that cute house on the big lot with the ideal layout because of the pink bedrooms and the flocked wallpaper in the dining room and living room, stop for a moment. Those things are easily changed.

A couple of long weekends of sweat equity and a few hundred dollars can make a huge difference in how a house looks. It also gives you the opportunity to put your own personal stamp on the home, and really make it into something you can call your own.

Next on the list is "clutter." For some reason, a lot of sellers don't take the time to declutter their homes before they list them for sale, and that can make for a poor showing. Don't let that throw you. If you're a savvy buyer, you can learn to look past the clutter, and visualize how your own furniture will look in the space.

Take a tape measure with you. If necessary, you might even ask if there's a floor plan drawing of the house available. If so, there are scale furniture cutouts available inexpensively online that will let you quickly place your own furniture in the existing rooms to see how things will fit.

The final C that you don't want to sweat too heavily -- no matter how much it might gross you out -- is "cleanliness." If the sellers are foolish enough to leave the house dirty, they're simply inviting lower offers, so take advantage of it. Look past the dirt, and possibly buy yourself a great house at a bargain price.

Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers

Paradise Home Buying Negotiating Tips

When it comes to buying a Paradise home, the ability and willingness to negotiate is a must for both the buyer and seller. In general, sellers ask for more than they are actually willing to accept and buyers offer less than they are willing to pay. The trick is to find the perfect balance so that you, as a buyer, feel good about the purchase price without leaving the seller feeling insulted.

Know Your Paradise Market

Real estate is a business that either favors the buyer or seller, hence the terms buyer's market and seller's market. When negotiating a purchase price, it's important to know which of the two you are in. As the buyer, you will have the best chance at a successful negotiation if you research the price of other comparable homes in the Paradise area before making an offer.

Make It Personal

When you make an offer, the seller will see nothing more than a piece of paper with some numbers on it that represent the price you are willing to pay. If you really want the seller to take your offer to heart, let them know why you want to buy the home. You can do this by preparing a handwritten letter expressing your interest and the reasons you fell in love with their house. If you have a family, tell them about everyone who will be living in the home. Let them get to know you and allow them to picture the happiness that you can bring to their house. Believe it or not, some sellers actually look at the process like finding a good home for a lost puppy. They want quality people to buy their home, so do your best to show them that you are sincere.

Nobody Likes Rejection

Not every offer is accepted, so don't be disheartened if your first offer isn't a winner. In some cases, the seller will make a counteroffer for your consideration. Have you ever heard the old saying, “never take the first offer?” The same is true in real estate and almost every seller thinks it. Your first offer is likely to be less than you are actually willing to pay, which leaves you some bargaining room.

Why Your Offer May Not Be Accepted

There are a number of reasons why a seller may choose to reject an offer, including a feeling that the offer was just too low, the house is newly listed on the market or another offer may be higher than the one you created. In some cases, sellers may also reject an offer that includes owner financing or other requests that are impossible to meet. One example may be an offer that requires the house be available within a certain amount of time. Most contracts require that the seller move out within 30 days, but anything less would require negotiation.

For more information, you can visit my Web site or feel free to give me a call.

Tammy Vertrees, Paradise California Realtor

530-413-8383 Direct
530-872-5428 Office

www.TammyVertrees.com

Be Market Smart

Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers

While the real estate market may not be now what it was several years ago, there are still some great opportunities out there, and plenty of happy results can be had for both buyers and sellers. The key is to remain flexible, adaptable and diligent.

DOs
Get a home inspection. It’s important to hire a trusted home inspector to check out the house’s potential issues and problems. Don’t skip a home inspection because you’re afraid of what you might hear—many issues sound more serious than they actually are, and can be fixed easily. And if something deal-breakingly serious turns up, as disappointing as that is, it can save years of heartache and financial outlay. Better to walk away from a clunker.

List your place before you look for another. If you’re truly serious about looking for a home, list your place first. In the current economy, banks want to make sales as uncomplicated as possible—and contingency sales, which can be very complicated, are often rejected.

Talk before you act. Don’t ever start a home search without a firm budget not only in mind, but literally written down. Mutually agree with yourself—or with your partner, if you’re buying with someone else—long before you start seriously searching. Going out of that zone because of a place you just “gotta have” or are emotional about, could put you in dire financial straits later. You don’t want to buy a house that isn’t affordable for you, and then be worried about paying for dinner and a movie on Saturday night.

DON’Ts
Don’t be a design snob. If someone’s enormous bathroom has wallpaper border containing frolicking kittens and pastel flowers, or a wall that’s a nuclear shade of green, we understand this can send you into style shock. But stand fast and ignore bad décor. Instead, try to envision the space raw. Besides, you can always redecorate once the home is yours.

Don’t make a silly offer. There’s nothing wrong with making an offer below asking price—it’s no secret that today, many homes are selling for under the asking price. But going 40% below the asking price may anger the seller. Some sellers, especially more emotional ones, won’t even bother counter offering an outrageously low offer. Feel free to make a deal—just don’t make an offer so low that you’ll be kicked off the table.

Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers

Quit making your landlord RICH!

Yes You Can Own A Home!

Here’s How To Quit Making Your Landlord Rich and Put Your Hard Earned Rent Money Back Into Your Own Pocket

Helping another person pay off their mortgage does not make any sense, yet this is exactly what renters are doing each and every month. Your rent payment only helps your landlord. After only a few short years, most landlords have completely paid off their mortgages thanks to their renters. Now they own real estate free and clear. Is there any wonder why most landlords end up owning more and more apartment rentals!

But you can stop helping your landlord and begin helping yourself. All you need to do is simply find a home with a monthly payment roughly equal to your rent payment. And there are many homes that may just do that for you.

I offer a free, no obligation meeting for my rental clients where we explore this opportunity. I would be honored to meet with you to determine your home needs.

Please feel free to contact me by email or telephone to arrange a time best for you.

For more information, you can visit my Web site or feel free to give me a call.

Tammy Vertrees, Paradise California Realtor

530-413-8383 Direct
530-872-5428 Office

www.TammyVertrees.com

Follow me on TWITTER

© Tammy Vertrees 2011. All Rights Reserved.

I am a full service real estate agent serving the discerning needs of clientele throughout Butte County, California

I specialize in representing sellers and buyers of residential real estate in Paradise, Magalia, Chico, Oroville, Gridley, Biggs, Durham and the surrounding areas. 


Visit me on the web at www.TammyVertrees.com for real estate information and to view all available Butte County homes for sale.

Real Estate for Today’s Paradise California Investment Sellers and Investment Buyers 

Are you looking for alternative investment options to the stock market? Many experienced investors are turning to the real estate market to generate current cash flow, short term capital gains, and the generation of long term wealth.

Real estate is an important component in any investor's overall investment portfolio. In fact, real estate is often included within many investors' mutual funds or real estate investment trusts, because of its ability to react in a different fashion to market conditions than traditional investments often do.

Now is one of the best buying opportunities for Paradise real estate investors seeking to purchase physical properties as investments, as the prices have dropped significantly over the past few years.

With reduced prices, investors have the opportunity to buy into this lucrative market at a low point. And, since the golden rule of investing is to buy low and sell high, the Paradise buying opportunity is ripe!

Whether you are a real estate investor looking to flip properties for a profit, or an individual searching for their first piece of real estate, declining property values present an ideal buying situation.

I have the expertise required as a real estate investor’s agent to help you locate your ideal investment property. Whether you are looking for properties to flip, rent or hold for a medium to long-term gain, I can assist you in locating, negotiating and closing on your piece of investment real estate.

For more information, you can visit my Web site or feel free to give me a call.