Bay Area Real Estate Sales

Selling your house

Bay Area Real Estate Sales.com Newsletter

December 2004

In this Issue:

Getting Your House Ready to Put on the Market?

Marin & San Francisco Home Sales Statistics

Thinking About Remodeling?

Sky-High Prices Could Rise 15% More in 2005

Changes to the Capital Gains Tax Law on 1031 Exchanges

Consumers Can Get Free Credit Reports

Getting Your House Ready to Put on the Market?

By Liz McCarthy

The first step in preparing your home to show at its best is to look at it through the eyes of a buyer - someone who is seeing it for the first time. With a few easy steps, here are some suggestions to make your home look attractive and inviting.

House-hunters typically begin their inspection of a property by previewing its "curb appeal." A surprising number of homes are eliminated from consideration before potential buyers get out of their car because they find the exterior appearance unsightly or uninviting.

Following are some basic suggestions for improving the marketability of your home.

Exterior:

The first impression is the most important. Your front yard should be appealing, the steps should be clear of clutter, and the front door should be clean and free of scratches. Refinish or paint the door if necessary.
Lawns, shrubs and flowers. Examine the lawn and flower gardens, making sure the lawn is mowed and free of drainage problems. Colorful flowers and shrubs can enhance the home's attractiveness.
Inspect Sidewalks and driveway to make sure they're free of weeds and clutter. Get rid of stains on cement driveways. Replace worn asphalt -- or recoat it.
Clear the decks! Clean decks, patios and steps, removing unnecessary furniture, toys and debris. Tidy up any pet areas.
Inspect the front door. A fresh coat of paint or stain and a clean doormat can help create an inviting "first impression." For less than $50, you can replace an old door handle with an impressive new one -- it's the first thing a prospective buyer will touch in your home.
Check lighting, making sure pathways and entry have adequate illumination.
Inspect the home's exterior, looking for loose, missing or damaged siding and brickwork, a cracked and uneven foundation, and gutters, downspouts or fences that are in disrepair. Paint or repair any problem areas. If you're handy, you can do this yourself. Even better: Paint the whole house.

Interior:

Inside the home, you should conduct an equally thorough inspection, since potential buyers are likely to open doors and cupboards, look into, look behind and operate everything to make sure the home offers the space, layout and features they need. Extensive redecorating isn't usually recommended, but all rooms should be clean and clutter-free. Think "light," "bright," "open" and "airy."

A clean but "lived-in'' look is best. Make sure your home - especially the bathrooms and kitchen - are clean, and avoid unnecessary clutter, but don't feel you need to remove all trace of yourself from your home. A warm feeling will put prospective buyers at ease.
Clutter. You want your home to look sparse so prospective buyers can visualize where they would put their furniture. But you don't want it to be empty -- it makes it hard for them to see how the house looks when lived in. Best: Remove one-third of your furniture, and store it in a self-storage facility or in your neighbor's garage.
Little details like house plants and flowers can make a big difference. Bright rooms add to your home's appeal, so make sure all the windows are spotless, and keep the rooms well-lighted during the showings.
Minor repair jobs should be attended to. Try to take care of all you can - leaky faucets, torn screens, cracked windows, and clogged gutters will all detract from the appearance of your home.
A fresh coat of paint can do wonders to improve the appearance of your rooms. If your walls aren't in the best condition, you should consider painting.
Carpeting. People tend to look downward when viewing a home. Replace old carpets -- even inexpensive ones look great when they're new. At the very least, have all carpets and drapes professionally cleaned.
Interior walls - Patch walls and ceiling cracks, then repaint or wallpaper, using neutral shades.
Check the garage for musty smells and signs of mildew or leaks, correcting any defects. Remove clutter from the basement and garage. Sweep floors, degrease spots and dust.
Inspect bathroom and kitchen fixtures to make sure they sparkle, are leak-free and are otherwise functioning well. Remove stains from countertops, sinks, tubs and showers.

When Your Home is Being Shown

Open draperies and shades to let in light. This will make rooms appear larger.
Play soft classical music, but keep TVs off.
Take pets outdoors when your house is being shown, preferably in your car or off the property all together. Children should be quiet.
Be courteous but don't force conversation with potential buyers. They want to inspect your house, not pay a social call.
Don't mention furniture or furnishings you may want to sell unless asked. Trying to dispose of such items via the potential buyers before they have purchased the house often loses the sale.
Let the realtor show your house and don't tag along. The salesperson knows the buyers' requirements and can better emphasize the features of your home.
Let the realtor discuss the price, terms, possession and other factors with the buyers. He/she is eminently qualified to bring negotiations to a favorable conclusion.
Take your family away for the day, if your realtor is holding an open house.

Don't do these things!

It's wise to follow others' good examples and to learn by others' mistakes. So that your move will be a sane and sound one, click on the link below for a list of 10 mistakes to avoid.

http://www.bayarearealestatesales.com/deadlysins.html

Marin & San Francisco Home Sales Statistics*

Marin & San Francisco Home Sales Statistics - by city as of 12/6/04
City	Total	Active	Number in Contract	Percent in Contract*
Marin County
Belvedere	18	14	4	22%
Corte Madera	27	8	19	70%
Fairfax	25	11	14	56%
Greenbrae	11	5	6	55%
Kentfield	30	15	15	50%
Larkspur	12	5	7	58%
Mill Valley	114	58	56	49%
Novato	155	57	98	63%
Ross	12	9	3	25%
San Anselmo	23	14	19	58%
San Rafael	152	62	90	59%
Sausalito	46	30	16	35%
Tiburon	59	41	18	31%
Others-Marin	62	38	24	39%
Total Marin 12/6/04	756	367	389	51%
Total Marin 11/4/04	927	489	438	47%
Total Marin 10/5/04	968	564	404	42%
San Francisco City & County
Total SF 12/6/04	1402	556	846	60%
Total SF 11/5/04	1656	740	916	55%

Marin Home Sales Statistics - by price range as of 12/6/04
Price	Total	Active	Number in Contract	Percent in Contract*
$100,000-$500,000	82	24	58	71%
$500,001-$750,000	179	54	125	70%
$751,000-$1,000,000	160	70	90	56%
$1,000,001-$1,500,000	125	65	60	48%
$1,500,001-$2,000,000	88	53	35	40%
$2,000,001-$2,500,000	28	23	5	18%
$2,500,001-$3,000,000	25	18	7	28%
Over $3,000,000	69	60	9	13%
Total Marin 12/4/04	756	367	389	51%
Total Marin 11/4/04	927	489	438	47%
Total Marin 10/5/04	968	564	404	42%

S.F. Home Sales Statistics - by price range as of 12/6/04
Price	Total	Active	Number in Contract	Percent in Contract*
$100,000-$499,000	269	90	179	67%
$500,000-$749,000	616	202	414	67%
$750,000-$999,000	259	100	159	61%
$1,000,000-$1,499,000	110	58	52	47%
$1,500,000-$1,999,000	51	35	16	31%
$2,000,000-$2,499,000	21	14	7	33%
$2,500,000-$2,999,000	25	17	8	32%
Over $3,000,000	40	36	4	10%
Total SF 12/4/04	1402	556	846	60%
Total SF 11/4/04	1530	746	924	60%

*Over 35% in contract is usually indicative of a sellers' market.

*Under 25% in contract is usually indicative of a buyers' market.

*Between 25% and 35% is usually indicative of a balanced market.

Charts represent information gathered from MLS statistics at a specific point in time.

Thinking About Remodeling?

What's the value of a major kitchen revamp? Remodeling Magazine and REALTOR Magazine recently published their seventh annual report: " 2004: Cost vs. Value Report." It looks at the cost-to-construct for common remodeling projects against the added value those projects bring at resale. The report includes 18 remodeling projects with geographical based data.

Click here to download the .pdf version of the report:

Sky-High Prices Could Rise 15% More in 2005

(November 15, 2004) -- Most homebuyers and real estate practitioners are keenly aware that Northern California's housing market has been volcanic for the last few years.

Over-the-top bidding wars are practically a given in the San Francisco Bay Area, and the residential market is only slightly less heated in inland towns where workers trade two-hour plus commutes for starter homes. With Silicon Valley as its epicenter, this protracted home buying spree has helped push the statewide median price of a single-family home to record heights. In September, buyers paid a median $465,540 for a home-a 21 percent increase over the $384,690 they paid just one year earlier.

If you think that's extraordinary, wait until next year. The California Association of REALTORS® predicts the state's home prices will balloon another 15 percent in 2005, thanks to low mortgage interest rates, an awakening economy, and a severe shortage of housing.

In the midst of this upward spiral, real estate professionals say there are two distinct trends flowering among the middle class: an accelerating demand for vacation and second homes in both pacific coast beach towns and in mountain resorts; and the increasingly difficult challenge for first-time buyers to find a decent urban home for under $500,000.

The second-home boom has been "the biggest surprise" of this year's real estate market, says Avram Goldman, president of Coldwell Banker Northern California. The increase popped up "all of a sudden," with wealthy baby boomers in the forefront. "They're buying their retirement homes," Goldman says.

The top two destinations in Northern California have been ocean-front towns on the Monterey Peninsula and the rugged play land of the Sierra-Lake Tahoe area-both destinations where Goldman says his company's business has doubled this year.

Real estate professionals say buyers still can find homes around $500,000 in a few close-in, urban neighborhoods in Oakland, San Leandro, Union City, Newark, and Hayward.

-By Corrie Anders for REALTOR® Magazine Online

Changes to the Capital Gains Tax Law on 1031 Exchanges

The new tax law, signed by President Bush on October 22, 2004, will amend the current capital gains law as it pertains to 1031 exchanges. Under the new law, a property that is acquired through a 1031 exchange and then converted to a principal residence must be held for five-years to qualify for the capital gains exemption. The new law pertains only to properties acquired through 1031 exchanges that are converted to principal residences, and not to properties bought as a principal residence.

Consumers Can Get Free Credit Reports

(November 15, 2004) -- Starting in December, all U.S. residents will be permitted a single free credit report under the Fair and Accurate Credit Transactions Act. Also known as the FACT Act, the measure phases in the one free report per year across the country, starting on Dec. 1 in 13 mostly Western states and spreading to the rest of the nation by Sept. 1, 2005.

Citizens also are entitled to one free report every 12 months-no matter where they reside-if they believe they are the victim of fraud or identity theft; are jobless and planning to apply for unemployment benefits; are receiving public welfare assistance; and/or have been denied credit, insurance, or employment due to problems with their credit record.

Source: CBSMarketWatch.com (11/15/04); Loeb, Marshall