If you have sellers that are “on the fence” about putting their home on the market and want to wait it out for a few months, send them this article from the LA Times.

Housing industry consultant Steve Harney says that prices may drop 5-8% as banks unload anywhere from 3 to 8 million foreclosures in the second quarter of 2011.

But here is some good news:

“Harney is among those who believe that the worst is generally over for the market, and that the inventory mess and lending issues will work themselves out in 18 months or so as pent-up buyer demand begins to reassert itself.

Meanwhile, he said, selling earlier this year will probably net a better return than late.”

Click here to read the complete article.

Some of the highlights include:

· List in early January to take advantage of post-holiday home shoppers

“If you hit the ground running and you’re a fresh listing that has done everything right, you’ve got the best shot.” – Louis Cammarosano, general manager of HomeGain.com

· Price it right from the start

“The longer something sits on the market, the more price reductions you might have to make and the more potential buyers will assume that there’s something wrong with the home. So more often than not, it’s best not to try testing the waters with a higher price.” - Louis Cammarosano, general manager of HomeGain.com

· Get the house ready
There are two factors that predict how quickly a home will sell and for what price: PRICE and CONDITION.

In our market, homes in the $1MM and under range are often selling within the first month if they are staged and priced to sell. There is a lot of competition out there, so if your seller is serious about selling quickly, she must make sure that her home stands out from the competition (in a good way).

A well-staged home will feel spacious and inviting. It will appeal to your target buyer (whether it is a family, a young couple or retirees). It will be neutral enough to allow any buyer to envision him or herself living in the home, but will never feel bland and forgettable.

Gone are the days when sellers on the west side of Los Angeles could just put up a sign in the yard and have their property sold within days. In this buyer’s market, it takes a lot more to get a home sold. You as the Realtor know what the best price is for your listing. Let a professional Home Stager help you determine the best way to show the home off in its best light and attract your target buyer. Working as a team, we can get it sold!

I am very proud to announce that Stage to Sell has been nominated for the Real Estate Staging Association (RESA®) Industry Award for RESA Professional Stager of the Year™ for the West Region.

Fabulous stagers from all over North America submitted their before and after photos for consideration, and I am humbled and honored to be counted among the finalists.

The finalists will be judged by a panel of industry professionals, and the winners will be announced at the RESA Home Staging International Conference, January 24th in Las Vegas.

It may sound cliche, but it really is an honor just to be nominated!

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228 34th St, Manhattan Beach

$3,600,000

HOUSE, VIEW, AND CAR! Buy this amazing house and get a new 2010 Porsche 911 Convertible!

Celebrity beach home. 2 blocks to beach. 1 of the largest rooftop decks around. 1700sqft Rooftop features: 3 separate sections, lounge chairs, built in grill, sound system, and a bed! White water ocean views. Oversize 4 car garage. 4th bedroom space was added to master to create huge master suite with a patio. Upgraded kitchen. Din. room. 2 living rooms, full bar, chef’s range, & more.

Open House Info:

Friday, December 11, 2009 12:00 PM – 2:00 PM

Sunday, December 13, 2009 12:00 PM – 4:00 PM

Listing Agent:

Kofi Nartey

kofi@sotalot.com

310-849-5634

Photos by Adrian Tiemens for Photos4RealEstate.com.

I am a proud board member of the West Los Angeles IAHSP chapter and have been lucky enough to participate in this wonderful event for the last several years.

This year our chapter chose the Richstone Family Center‘s Transitional Living Program as our beneficiary. The program serves young women (ages 18 – 24) from LA County, who have been emancipated from foster care. For the young women in the program, this is often the first time they have experienced a safe, stable and healthy home environment. Richstone’s program provides housing, case management, counseling, life skills, referrals and 24-hour support for residents.

Much of the original furniture in the main house was ripped and filled with holes and the art and furnishings were a mish-mash of hand-me-downs. The walls were stark white and the ceilings were damaged. Thanks to very generous donations from Brook Furniture Rental and Fashion Furniture, paint and supplies from Sherwin Williams and Lowes, fabric from Beach Drapery, cleaning services from Ready Clean, and labor from local painters Carlos Lopez and Albert Hernandez and contractor Brad Erwood (as well as about 10 of our members), our chapter was able to pull off an amazing transformation in record time!

Though the planning took several months, all the work was done in the course of a single week. Chapter members Kevin Htain, Adrienne Sherlock and Karen Keating handmade the window treatments from donated fabric. Our contractor repaired damaged ceilings and installed new ceiling fans to bring in air and light to dark and hot rooms. Our painter painted almost every room in the main house. And Brook and Fashion delivered all their donated items, all before our chapter members arrived en masse this morning!

All the chapter members donated items from their own inventories to add the finishing touches. I brought in art, throw pillows and plants, vases and kitchen decor. Others helped with miscellaneous decor items, even running out to purchase a few last minute items we were missing.

The result was nothing short of astonishing! The board members of Richstone Family Center and a few of the residents arrived once every last piece was in place. As they toured the new house, you could see the amazement in their faces. They noticed every detail, and all agreed that the changes in their environment would make residents take pride in their home and work harder to maintain it.

There is nothing like the feeling of giving back in your community. I encourage each of you reading this post to reach out to a local soup kitchen, battered women’s shelter or senior center – whatever gets you excited about helping. Even a small gesture can bring smiles you will remember for a lifetime!

Entry Before

New paint, art, lamp and accessories and now this entry says "Welcome Home!"

Living Room Before

Paint, art, throw pillows and some new ottomans warm up what was a lackluster rarely-used space

Dining Room Before

Once again, paint, art and accessories completely transform this space

View from Dining Room into Living Room (notice we added a small 2-seater table in the niche to the left of the larger dining table to allow for more seating options)

TV Room Before

New furniture, paint, art, drapes and accessories add life and color into this much-used den

TV Room After

Kitchen Before

Paint, drapes and accessories make this kitchen feel more inviting

Notice the homemade art above the microwave. It was made from leftover donated fabric that matched the curtains in that room

Kitchen After

Counseling Room Before

Counseling Room Before

This may be the most dramatic transformation of all. The counseling room was so drab and uninviting, filled with mismatched furniture and functional, but ugly, file cabinets. New furniture and some creative use of the existing pieces allowed for the necessary seating and storage. Paint, window treatments and accessories created the warm and calm feel that we hope will encourage residents to open up in their therapy sessions.

Working in the kitchen

Dan Keating and I hanging art above the sofa

We almost couldn't fit the new loveseat into the counseling room

Unpacking

Kevin & Adrienne even Stage the Scrabble Game

Stagers never forget the details!

“How long did it take for you to know that the last home you purchased was right for you?

and

“Who ‘wears the pants’ in the relationship when it comes to making major financial decisions?”

The results of this survey are important for all Realtors, Stagers and home sellers to understand, so that they can make sure the property they’re selling will appeal to the right audience.

Interesting Finding #1:

“Both men and women are increasingly concerned with having a space to work in their homes.”

At Stage to Sell, we always make sure that homes we Stage have a clear space set aside for a home office. In today’s world everyone (whether they work from home or not) needs a space in their home for a computer to pay the bills, do homework, check email and update their Facebook status! Staging the home to include a work space is especially important when you are selling a small home, which may not have  room for a full office.

This home was just over 900sf and had a tiny room, reachable only by a spiral staircase, in the spare bedroom. Because of the sloped ceiling it ended up looking like a storage area when it was empty. But with the correct furniture this small space is now a big feature!

Interesting Finding #2:

“Women may be inclined to make up their mind more quickly than men …”

Almost 70% of women made up their mind that the house they purchased was “right for them” the first day they walked into the house (versus 62% of men). Thirty two percent of men (versus 23% of women) needed two or more visits to be sure.

This is why it’s so important to create an emotional connection as buyers walk through the home. It’s not just the furniture, but all the small details, that make us (and by us, I mean the women) fall in love with a home. When my company Stages a home, we always have the buyers in mind. We ask the Realtor who the prospective buyer is so we know who we’re trying to appeal to. If it’s a family, we often create an adorable child’s room that will make the mom & dad imagine their own child living in (and loving) the space. If it’s a young professional, we might shoot for a more contemporary vibe, with a high tech home office space. For retirees, we might use a second bedroom as an office, but we’d include a small daybed too, so the grandchildren can spend the night. These are just a few of the subtle ways that we make sure to tug on the buyers’ heartstrings with each home we Stage.

This children's bedroom was designed to make mom imagine her own children living in this home.

Interesting Finding #3:

“Couples say that no one ‘wears the pants in the relationship’ in terms of major financial decisions …”

Close to 70% of respondents said that when it comes to major financial decisions (such as the purchase of a home) it’s a mutual decision.

Now this one surprised me a bit because from what I’ve always heard, women tend to influence the home-purchasing decisions more than men. Of course both have input, but generally women tend to feel more strongly about buying one home versus another, and this is where proper Staging can distinguish one home from another. When comparing two homes, both may have the same square footage and number of bedrooms, the same hardwood floors or granite countertops, but the one that “feels like home” is the one that will get the sale (price being equal of course)! Creating those special details that make a buyer fall in love with a home is what Home Staging is all about.

Staged homes create an emotional connection with buyers

This week I was at the weekly team meeting at the Keller Williams office in Marina del Rey pitching a free Home Staging for Success course I’m going to be giving there next week. One of the agents, Reggie Potts, came up to talk to the group about a new company he’s launching called REO Secure. REO Secure will do everything from installing smoke detectors to rekeying the locks, boarding up the windows and strapping the water heater. The company is based in Culver City, but they serve the whole LA area.

If you know an agent, bank or asset manager that has REO listings, please forward this important information along to them. And if you’re ready to call REO Secure, their number is 310-251-1773.

The groups say that they have sometimes received support from neighbors and that beleaguered police departments have not aggressively gone after squatters. “We’re seeing sheriffs’ departments who are reluctant to move fast on foreclosures or evictions,” said Bill Faith, director of the Coalition on Homelessness and Housing in Ohio, which is not engaged in squatting. “They’re up to their eyeballs in this stuff. Everyone’s overwhelmed.”

The issue is a controversial one. Advocates see these vacant properties as an opportunity to ease the growing homeless problem in a declining economy. Though some of these groups operate secretly, others are out in the open, trying to secure legal means to move their clients into these abandoned properties.

Anita Beaty, executive director of the Metro Atlanta Task Force for the Homeless, said her group had been looking into asking banks to give it abandoned buildings to renovate and occupy legally. Ms. Honkala, who was a squatter in the 1980s, said the biggest difference now was that the neighbors were often more supportive. “People who used to say, ‘That’s breaking the law,’ now that they’re living on a block with three or four empty houses, they’re very interested in helping out, bringing over mattresses or food for the families,” she said.

The organized homeless groups are also having to compete with more traditional individual squatters.

“We had a move-in that we were going to do one day at noon,” he said. “At 10 o’clock in the morning, I went over to the house just to make sure everything was O.K., and squatters took over our squat. Then we went to another place nearby, and squatters were in that place also.”

Mr. Rameau said his group differed from ad hoc squatters by operating openly, screening potential residents for mental illness and drug addiction, and requiring that they earn “sweat equity” by cleaning or doing repairs around the house and that they keep up with the utility bills.

I have to say this issue has me torn. I’ll admit I am a fairly left-wing liberal who appreciates the effort on the part of these advocacy groups to try to find a workable, though temporary, solution to a growing problem that no one else seems to be addressing. I feel for these people who, for reasons that may be beyond their control, have found themselves and their families homeless and unemployed in a dire economic climate. At the same time I work in the real estate industry and feel for the agents who represent these properties. I feel the banks are not doing enough to properly secure and maintain these foreclosed homes. They often leave them in a dilapidated state and just “hope for the best” in terms of a sale. Rather than investing a small amount in paint, carpet, Home Staging (and some sort of security system) in order to sell these properties quickly, they let them linger on the market and become targets for squatting.

What are your thoughts?

The article uses the example of an older couple who wanted to downsize and move into an over-55 community, but had no bites on their home when they listed it in August of last year. Toll Brothers noticed this was part of a trend, with several of their potential buyers not signing contracts for fear of not being able to sell their existing homes. So Toll Brothers decided to do something about it!

They offered the following incentive:

“Sign a contract on a new home, and the builder would provide you with a home stager and pick up 75 percent of the cost. (Going forward, clients who participate in this program, called Center Stage, will pay the cost of the staging, and Toll Brothers will reimburse them for 50 percent of the cost with a credit at closing.)”

Did it work? In the case of the older couple, their home sold in just TWO DAYS after it had been Staged! And now they are preparing to move into their new Toll Brothers home!

There’s lots more interesting info in this article, so check it out!

Today was the Grand Opening event for Hobart Heights. Hobart is the 3rd low income housing community we did the interior design work for (see projects #1 and #2 here). They are always great projects, due in large part to our wonderful client American Communities. They are a joy to work with, and we look forward to many more projects with them.

Today was the first time I attended one of the Grand Openings, and I was blown away by what I witnessed. For starters, Herb Wesson was there.  Herb is the LA City Councilman representing the 10th District. He was instrumental in advocating for this and other similar developments meant to provide affordable housing for Los Angeles residents so they can live in the same community in which they work. (Just to give you an idea, a 3 bedroom unit in this building rents for between $500-$1000/month, whereas similar apartments in the neighborhood rent for $3500!)

Representatives from the Los Angeles Housing Department and the Community Redevelopment Agency were also on hand to congratulate everyone involved for a job well done. This building was located in a historical neighborhood so there were many “hoops” to jump through in order to get the plans approved. But it was obviously worth the effort. Beautifully designed in an art deco style, with the comfort of the residents in mind, this building has created a new life for the deserving people who live there.

The most touching part of the entire presentation was when a current resident spoke (via a translator) about the way in which living in the building has changed her life.

This woman is the mother of a disabled daughter. For 13 years before moving into Hobart Heights, she had to carry her daughter on her back up to the 5th floor of her old apartment. She was in tears when she spoke about how the simplest things that we take for granted have changed her life. The ramp up to the front of the building and the elevator, as well as the handicap accessible bathroom and kitchen, allow her daughter to be truly self-sufficient for the first time in her life. There wasn’t a dry eye in the house after this lovely woman spoke.

With all the doom and gloom in the news, it was wonderful to hear some positive news and to know that there is funding for many more similar developments in the area. Many local politicians are working tirelessly to create affordable housing, as well as job opportunities and open space (parks) for LA’s under-served residents. Let’s hope they succeed in changing many many more lives.