San Diego CA Real Estate | Housing Market, Home Loans, Homes for Sale, Foreclosed Homes, Homes and More » Questions and Answers

How Should I Prepare My Home For Selling?

Karen Crabtree — Tue, 03 Feb 2009 16:07:37 +0000

When you’re getting your home ready for sale, the two biggest things you can do are clean and liquidate. The idea is to make your home look as much like a model home as necessary. Remove unnecessary furniture to make the rooms feel larger. Kitchen counters should be cleared and items removed from the top and front of the refrigerator. Bathroom counters should be cleared, as well as dresser tops and other furniture. You’re going to have to pack to move anyway, so box up everything you can and get it out of the way. Wash the windows and leave the drapes open. Clean the carpets. Remove odors, particularly pet odors and cooking smells. Pay particular attention to the curb appeal and the entry. While prospective buyers are standing at the front door waiting to go in, do they see a dirty front door, dusty mailbox, and ragged doormat? They are forming their first impression while standing there. Consider planting flowers and even putting down sod if your yard is in very bad shape. If there are minor repairs you have been putting off, do them now. Leaking faucets, broken locks, torn screens, etc. all look like dollar signs to the eye of the buyer. You should be putting your best foot forward and making the buyer feel like “this is the house” when they enter the front door. If you need further inspiration, walk through a model home and then go back to your home and try to walk through it with the unbiased eye. Your real estate agent should also advise you as to what is needed to showcase your home.

Should I remodel my home before selling?

Karen Crabtree — Fri, 23 Jan 2009 22:25:15 +0000

What you need to keep in mind is that in the majority of cases, you will not recoup your expenses dollar for dollar. What a remodel will do is make your home more sellable because your home will be more appealing than the competition. A kitchen remodel is one of the best things you can do for a home. In San Diego, you might recoup 94% of the cost of a mid-range upgrade, according to statistics generated by HomeTech Information Systems.

Of course this applies to homes that are traditional sales, i.e. homes with equity. Another remodel that has great return is the installation of vinyl windows where the percentage of return in 2008 was 93%. However, if you don’t want to go through the cost of remodeling, there are much simpler things that can also make a home more sellable such as painting and removing all clutter.

What is the Definition of a ‘Short Sale?’

Karen Crabtree — Tue, 09 Dec 2008 10:19:58 +0000

A short sale means the bank is accepting less than the full loan amount in exchange for releasing the lien against the home. It doesn’t satisfy the full obligation, and will be reflected accordingly on your credit report. A homeowner will list his property for sale, typically at just below fair market value.

When an offer is submitted, the offer is submitted to their lender along with a very comprehensive financial package. This package includes tax returns, bank statements, pay stubs, a financial statement, and a hardship letter explaining why the owner can’t continue making payments. The offer is subject to approval by the lender. They will review the package and decide if they want to process it. They will order a BPO (broker’s price opinion) to determine the fair market value. A negotiator will be assigned to review the file and process it.

The whole process usually takes anywhere from one to three months. After the lender approves the short sale, the escrow period for the new buyer begins. Keep in mind that the sales price needs to be within a certain percentage of the BPO value, which percentage is determined by the lender. They will not take just anything for the property.