Danielle Lazier

FAQ: Considering Selling a Home in San Francisco? What Factors Will Affect Your Home Sale?

Q: We own a home in San Francisco and are considering selling it. What are the most important factors to consider as we make our decision to sell?

A: This question is about control. Who controls what in real estate? There are many factors, both global and local, that will affect your results when it is time to sell your San Francisco home, whether it’s a Bernal Heights single family house or a Mission Dolores condominium.

Here is our Cheat Sheet to the 6 most important components that will affect your results (both sales price and time on the market) when it comes time to sell your home. I hope you find it helpful. Buzz us if you have questions!

• Location, as in where your property is located.

  • Are you on a quiet block or a loud thoroughfare? Are you convenient to public transit and local restaurants & shops? Or, must you drive everywhere? Do you have a view or a pleasant outlook? Or, do you look out onto a parking lot or into another unit? You can the drift.
  • This item is FIXED. Neither you, nor I, can control the location of your property. It is where it is.

• Financing, as in what financing will be available for the home buyer.

  • Depending on the economy, interest rates may be high, low, or in-between. Financing guidelines may be loose or strict. It may be very hard for a home buyer to qualify for a home loan or it could be easy. How much down payment will be required of the buyer? Is the property a single family home, a condo, or a TIC?
  • There are many issues to consider. While we are not mortgage specialists, we make it a point to stay current on financing conditions. We want to know what types of home loans are available and what it takes to qualify.
  • Current financing options has a direct impact on your home sale but, you guessed it, this item is also FIXED.

• Property Condition, as in what shape is your home in?

  • A real estate professional will advise you on the condition of your property. We take the time to help our home seller clients decide what is important and what would be a waste of money when it comes to fixing up your property for sale. Generally speaking, you want your home to show as well as possible because it will mean that you will sell your property for more money in less time.
    • Some combination of cosmetic repairs, wood floor refinishing, painting, garden clean-up, and staging (both clearing clutter and furniture staging) are often on the to-do list.
  • The property’s condition is controlled by THE SELLER and property owner. We’ll give you our best advice based on what works in the marketplace to drive up the sales price but, ultimately, it is your home and your decision.

• Market Exposure, as in getting the right offer to the right people at the right time.

  • Real estate marketing is about targeted exposure. What’s most important about marketing a home for sale is promoting your home’s listing to serious, qualified home buyers and the local San Francisco real estate agents who work with them. Although we do want some degree of broad exposure because we don’t know who will be that right buyer, we want to pin-point our efforts to create buzz amongst the folks who are most likely to buy and qualified to make the purchase at a price that will be acceptable to you as the seller. Marketing a home for sale in San Francisco is an art and will be specific depending on location, say Noe Valley real estate or Pacific Heights.
  • Aha, finally, something controlled by yours truly! Yes, in real estate, proper marketing and exposure is controlled by THE AGENT.

• List Price

  • Choosing a correct list price from the start of marketing a home is crucial and will have a direct impact on your net proceeds or walk-away money. Correct pricing requires your real estate consultant to have savvy market knowledge. We will consider relevant properties (your home’s competition) and how many real buyers exist for a type of home like yours. We also want to consider the other items on this list: location, financing, condition, and exposure. How much home preparation and staging you agree plays an important role in choosing a list price.
  • Alas, as much as I wish I could say that the agent controls the list price, it is actually controlled by THE SELLER. We’ll do our best to help you choose a smart list price, but it is your house and your decision.
  • CAUTION: Please do not choose your agent based on the list price they promise you. This is called “buying the listing” and is a totally ineffective way to sell your home. Typically, the agent who promises you the moon is, as fellow Texan Laurie Moore-Moore would say, “All hat and no cattle.” This leads me to the final factor affecting your San Francisco real estate sale….

• Final Sales Price

  • Real estate is a capitalist market and is governed by the Law of Supply and Demand. Ergo, the final sales price is controlled by the Market. The Market speaks through THE BUYER and it is THE BUYER who controls the sales price of your home. Of course, there is a lot that a trained real estate professional and a cooperative home seller can do to positively affect the sales price (and your net proceeds which is more important) but we don’t control it.

Tags: control, Factors affecting the sale, Home Selling, selling a home

More San Francisco Homes Are Selling?

According to The Wall St. Journal, more homes in California are selling.

“California’s housing-market slump showed hints of improvement in March, with sales of existing single-family homes increasing 64% from the prior-year period and median home prices rising month-to-month for the first time since August 2007, according to a trade group report.”

Does this mean more homes in San Francisco are selling too? More on that later.

Read the rest of this entry »

Tags: first-time home buying, home buying, Home Selling, San Francisco properties, wall st. journal

Urgency, not Desperation! The shorter the open house, the better.

Home selling tip:

Create URGENCY, not DESPERATION.

Over the past few years as the San Francisco real estate market has slowed, I noticed that some of my competitors began to host longer and longer open houses.

First, there were Saturday open houses in addition to Sunday. Next, the times went from 2-4pm to 1-4pm and then, to 1-5pm. I’ve even seen a 12-6pm announcement!

With all due respect to my fellow real estate professionals, I have to object to this trend.

Sure, at first glance, it may seem like a good idea to have more access to a property that’s for sale. A buyer or anyone who is in the neighborhood can go by all day, anytime they want.

What’s my problem, you ask?

Buyer urgency, or lack thereof, is my problem.

In today’s slower real estate market, as listing agents and home sellers, we have to create a sense of urgency for the home buyers. Folks are slow to act these days. They think houses will be around next week, next month, and probably at a lower price.

The longer the open house, the less likely you are to have a crowd of people touring the home together.

Crowded open houses lead to more urgency b/c it gives the perception that the house is in high demand.

Buyers need to feel that there are compelling reasons to act. Competition and the comfort of knowing that others want what you want helps to create logical reasons to act…and act right away lest someone else get their new home!

The industry standard is Sunday 2-4pm. Let’s keep it that way! For that matter, I’d rather host even shorter open houses! Read the rest of this entry »

Tags: buyer urgency, Home Selling, jimmy choo, open houses

Zephyr Head Honcho Makes the Cover!

Well, it’s not particularly great news but it’s pretty fair and accurate considering how not so long ago the lovely Chron real estate folks seemed to only like to trash us agents. In the slowdown, have they decided to stop biting the hand that feeds them? Yet, I regress.

I don’t have time right now to pontificate (yes, you are so sad) because I’m on my way to a signing, aka closing appointment. Yes, folks are buying homes in San Francisco. In this case, they’re buying a great single family in Bernal Heights.

It’s a good read and our very own, Bill D. is a featured contributor. Check it out here.

The moral of the story: it’s a great time to buy if 1. you are a first time buyer 2. you’ve owned your home for a few years and are ready to trade-up or 3. you want an investment property to hold.

As for sellers…It’s not the best time to sell but it’s not the worst either. Many people are successfully selling homes in today’s market.  In particular, it’s an okay time IF you’ve owned your home for a few years, are willing to price for today’s market values, and/or selling is the right thing to do for YOUR overall life and financial picture.

Moral #2. No one can time the market perfectly. Do what’s in your best interest for now and for later. We are blessed to live and own real estate in San Francisco. Compare our downturn to outside the City.

Okay, Pollyanna’s off to meet her clients!

Tags: bill drypolcher, home buying, Home Selling, real estate meltdown, sf real estate market

To Stage or Not to Stage…or What does it take to sell your SF home in today’s market?

Last weekend, the Chronicle posed a titillating question, “Is selling a vacant or occupied house best?”

In my opinion, the question is not really whether selling a vacant or occupied home is best. The real question is what will it take to sell your home for top dollar in today’s market?

The San Francisco real estate market is different than it used to be. Sellers need to come to terms with the realities of the current real estate market. Yesteryear’s hot seller’s market may not return for a long, long time.

Yet, our market is not terrible, not in the least! Actually, many areas of San Francisco have held up extremely well. While the value of a house is likely to be flat or down from the peak, it is also very likely to be way up from say 5 years ago or more. I’d call it more of a balanced or level playing field. Normal market conditions have returned to most neighborhoods in San Francisco.

Click for an enlarged, easier to read version of the report on Median Home prices in San Francisco October 2008 v. October 2006. This report includes all SF MLS districts except 3 and 10 & includes statistics for all single family homes, condos, TICs, coops & lofts. Amazingly, the median price is almost exactly the same as it was 2 years ago! (Down from the highest point, of course.)

Side note: Yes, some areas have been devastated by the sub-prime lending meltdown. These areas are the ones where sub-prime borrowers were buying….entry-level lofts and less expensive outer-lying residential areas. No, it’s not fair and yes, I could go on and on about the inequities of the capitalist system, urban planning and so forth. I did go to Wesleyan after all!

Nonetheless, now I am a Realtor so I’ll allow my more lefty comrades to pontificate on these important topics. My job is to help San Francisco home buyers and sellers make good choices and achieve their goals by providing my clients with excellent real estate consulting, negotiating and project management. Shameless Plug Alert!

This is not a post about statistics or market value. It is about what rules apply today. How can you sell your home quickly and net the most money possible? Notice how I use the term net as opposed to gross profit. The reason I prefer to talk about your net profit (or loss) is because that is the figure that should be most important to you.

Sometimes, sellers are inclined to lose perspective and look at the individual costs rather than the big picture.

For example, a real estate agent who will discount their commission below the industry standard may save you money in the commission, but they may actually cost you more money than you saved by short-changing you on marketing and negotiation.

Another area where sellers sometimes become “penny-wise and pound-foolish” is in the presentation of their home. Staging costs money whether you do it yourself or hire a professional.

It may be hard to see how spending some dollars to spruce your place up will pay off in the end. But again, you gotta look at your net. If staging your home means that you’ll sell it even a month sooner and for a couple of thousand dollars more, it’ll is likely to have paid for itself. The reality is that a well-presented home WILL sell quicker and for MORE money. The benefits of staging will almost always net your more money.

If you are selling your home, look at the big picture. Talk to your accountant to see what fees are tax-deductible. Most selling costs (commission, etc) will raise your basis and thus, lower your tax bill. If you do capital improvements, you’ll want to add those in too.

Choose an agent who excels at:

1. property preparation (i.e. has a great team assembled to help you prepare your home: stager, handyman, painter…),

2. consulting (i.e. has the ability and interest in figuring out what is best for your particular situation and crafts a specific, strategic plan for you personally),

3. marketing (i.e. knows how to target market your property to the right agents and buyers…other agents will be the ones who actually sell your house so make sure your agent and their company has a good reputation), and

4. negotiating (i.e. has the “soft sales skills” to get a buyer to make the highest possible offer AND has prepared them and your house for no surprises and thus, no requests for price reductions and/or credits from the seller to the buyer during escrow; again, it’s about the net.

If you go into contract for $1,000,000 but the buyer then successfully negotiates a $10,000 credit for closing costs, your actual sales price is $990,000. Plus you’ll pay transfer tax and commission on the $1,000,000, not the $990,000.

TIP: It’s usually better for the seller to agree up-front to a lower sales price with zero permissible credit requests to come weeks into the escrow.)

It’s not rocket-science. What it takes to sell your home in today’s market is a competitive list price, a well-presented home, and an agent who can handle the sales process and negotiations.

So, what did we learn, kids? Here are Danielle’s rules for selling your home to net the most money in today’s market”

1. Price to attract a crowd. Price below your home’s competition. Get as many buyers as possible to your first open house. The first 2 weeks are crucial. Price will get them in the door.
2. Stage to get offers. If price will get them in the door, presentation will get them to pull the trigger. You don’t need to hire the fanciest home decorator in town and you can do it yourself if you have the skills and the time. Unless your house is truly high-end, you don’t need to win any design awards or make it into Sunset Magazine! You do need to clean up, make repairs, paint, de-clutter and decorate enough. I work with reasonable stagers. The homes look great so buyers can imagine themselves living there.
3. Work with a skilled real estate agent and listen to their advice on items 1 and 2! There’s no sense in hiring the best if you aren’t going to take their advice. We sell houses full-time. We have a broader, more objective perspective than you ever could about your own house. Just don’t ask me about my own house as I’m as bad as anyone else! I mean, of course, my house is different, nicer than my neighbors, immune to the recession, etc etc! Right? Just do yourself a favor and hire someone who is skilled, experienced, and easy to work with. You don’t need to seek out the agent with the flashiest ads or who calls themselves #1 all over the place. There may be a reason they need to spend that kind of money on advertising… You do need someone who will take the time to understand your situation and work with you to achieve the best results possible in today’s market.

Tags: choosing an agent, Home Selling, pricing, San Francisco Real Estate, selling in today's market, staging

Want my $.05? Danielle’s advice to San Francisco home buyers and sellers.

Tags: Danielle's advice to home buyers and sellers, First Time Buyer, home buying, Home Selling, San Francisco Real Estate, trade-up

Thinking about selling your San Francisco home? How to make sure it sells easily and for its highest market potential.

How do you make sure your home sells (and sells for the highest price possible)?

As you know, the real estate market has changed. In San Francisco, we have reached a more balanced state of being which unfortunately can seem random to many would-be home sellers.

Why are some houses selling in less than 2 weeks on the market with multiple offers, and for significantly more than the asking price while linger on the market with no ready-to-act buyers? What is up with this and what can you do to ensure your home will be one that sells quickly and for the most money this time around?

May I suggest you consider of the Three P’s of Real Estate that will most affect how well your do with your home sale:

1. Price (aka Asking Price)
2. Presentation (aka Staging)
3. Position (aka Location)

As the home seller, you have control over #1 and #2 but not #3.

Where your property is located or how it sits on the lot is not something you can alter. Got MUNI rattling out front or an eyesore across the street? Unless you hire house movers, these issues are fixed and what we call locational obsolescence.

You can control how well the property is priced in comparison to the current competition and how well it shows. If you had few showings, the price was likely too high or your agent did a poor job of marketing, or both. If you had plenty of showings, the presentation may need work. The buyers came but were not compelled to make an offer after touring the home.

A reasonable asking price that is just under the local competition can often spark multiple offers with a better final sales price.

Even in a busy market, it is wise to clean, paint, and stage a home for sale. A staged home will bring a higher price (6% more on a average). Plus, buyers are also more likely to waive their inspection contingency and/or resist asking for repairs or credits during escrow.

Tip: Leave your listing staged until after the inspection and the appraisal to make sure all parties remain impressed with the home! Check out HGTV’s Staging Tips HERE.

Tags: Home Selling, how to price your home to sell, san francisco home sales, staging your home

How to price your home to get the highest sales price

There are really 5 main factors affecting a real estate sale and only 2 (or 3 if you include your choice in Realtor) that you, as the home seller control.

What are the 5 main factors affecting a home sale?

1. Location (This is out of your control unless hire house movers. I just saw this on Flip this House!)
2. Financing (Again, out of your control unless your name is Paulson or Bernanke.)
3. Condition, aka Presentation/Staging (You guessed it! This is one within your control!)
4. Price (Wow, you are smart. This is the 2nd one you really control, well the listing price NOT the sales price b/c that is up to the buyer.)
5. Exposure, aka Marketing, Showing Ease (You control this to the extent that 1. you pick a savvy, experienced agent and 2. you help your agent expose the house by sharing the marketing website with the people you know b/c they may know someone, allowing a sign out front, letting her show the property easily, etc.)

As the home seller, you control the Price and the Condition, or Presentation. Your agent, if they are good, will give you all of the information you need to make informed choices but ultimately, it is your house and your decision whether you show it in its best light or not and whether you price it competitively or not.

Here are some tips from the Chronicle who took it from another newspaper, the Washington Post, (big surprise) on how to price your home for sale. These tips work in San Francisco, whether for a Bernal Heights home or a Mission condo.

• Don’t base the price on what you paid or what your neighbor got a few years ago.

• Do examine the prices of homes for sale in your neighborhood, as well as the prices of comparable homes that have sold in the past three to six months.

• Don’t pick an agent simply because he or she suggested the highest price.

• Do pick an agent who offers a thoughtful explanation for the price he or she is suggesting.

• Don’t go overboard with remodeling. Rarely can you recoup the cost.

• Do make minor improvements so your home is in as good as or better shape than the competition.

• Don’t set your price based on emotional attachments and cherished memories.

• Do ask your agent to reassess the competitive landscape every few weeks to make sure your asking price is in sync with the market.

• Don’t be stubborn. If weeks go by without any offers, the price probably does not reflect the value of the home. It’s time to consider cutting the price.

• Do be patient. You might have to wait longer for buyers to pull their money together now that lenders have toughened their standards.

For the full article, click here.

Tags: Home Selling, how to price a home, san francisco list prices