Buying and Selling Your Davis, CA Home with Keller Williams agent Carmen Isais

Posted by Darin Zabel

For the first time in California’s history, foreclosure sales exceeded 1,000 properties per day in April, according to a report released Tuesday afternoon. Foreclosure sales at auction — the last step in the foreclosure process — jumped 44 percent in April to 22,838 sales, representing $9.45 billion in combined loan value, according to foreclosure data firm ForeclosureRadar.

The vast majority of properties sold at auction received no third party bids, despite ever-increasing discounts from lenders anxious to prevent further build-up in REO inventories.

Average discounts at auction hit 25 percent in April, ForeclosureRadar said, but nearly half of all properties taken to foreclosure sale even offered discounts of 30 percent or more from the current loan balance. The majority of these loans were 80 percent LTV first mortgages, making discounts of 40 to 50 percent from the prior sales price common in many parts of the state — and yet, almost nobody bid on the properties, forcing lenders to add to their already bloated REO books.

The largest discounts offered in major Southern California counties were in luxe Santa Barbara, where properties auctioned off at a 29 percent discount, and Riverside, where the discount averaged 28 percent for the month. Even Orange County — home to such glitzy locales as Newport Beach and Laguna Beach — saw lender bids at foreclosure sales average 21 percent less than the amount originally owed.

“We expected a significant increase in auction sales based on previous default patterns,” said Sean O’Toole, founder of ForeclosureRadar. “Unfortunately, the continued increases in defaults tell us that the worst is still ahead.

“It is time for lenders to accept this reality, and start approving short sales rather than forcing more than two-thirds of troubled homeowners through the entire foreclosure process.”

New borrower defaults, referenced by filings of Notices of Default, increased slightly from March’s numbers to set another new record high, reaching 44,101 new filings during April. Notices of Trustees Sale, issued approximately 3 months following a Notice of Default, jumped 7.8 percent in April — surpassing the previous record with a total of 29,892 new filings.

Lenders added 22,324 properties to their real estate owned inventory in April, ForeclosureRadar said, and are increasing REO on their books an average of 1.36 times faster than they can sell the properties in inventory, O’Toole said. Amazingly, and in a sign that foreclosures are spreading to every part of the state, foreclosure sales nearly doubled in both Marin County — a 96 percent increase — and Orange County, up 82 percent in just one month alone. Orange County posted 1,133 foreclosure auctions during April.

For more information, visit http://www.foreclosureradar.com.

Thinking of selling your home in the Davis or Woodland real estate market? A house that “shows well” will sell faster than its shabby neighbor, even though both are structurally well maintained.

From experience, I know that a well polished house appeals to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is well maintained, they assume that what they can’t see has probably also been well maintained. In readying your house for sale, consider:

• how much should you spend to prepare your house for sale?
• exterior and curb appeal
• interior appeal

Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal.

How Much Should You Spend to Prepare Your House for Sale?

In preparing your home for the market, spend as little money as possible. Buyers will be impressed by a brand new roof, but they aren’t likely to give you enough extra money to pay for it. There is a big difference between making minor and inexpensive polishes and touch-ups to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen.

As an experienced Realtor, I am very is familiar with buyers’ expectations in your neighborhood and can advise you specifically on what improvements need to be made and which improvements are most effective. Don’t hesitate to ask for advice.

Maximizing Exterior and Curb Appeal

When preparing to put your home up for sale, your first concern is the home’s exterior. If the outside, or “curb appeal” looks good, people will more than likely want to see what’s on the inside.

Here are some tips to enhance your home’s exterior and curb appeal to buyers:

• Keep the lawn edged, cut and watered. 
• Regularly trim hedges and weed lawns and flowerbeds.
• Be sure your front door area has a “Welcome” feeling.
• Paint the front door.
• In spring and summer, add a couple of pots of showy annuals near your front entrance.
• In snowy areas, keep walks neatly cleared of snow and ice.
• Check foundation, steps, walkways, walls and patios for cracks and deterioration, and fix any problem areas.
• Remove and repaint any peeling paint on doors and windows.
• Clean and align gutters.
• Inspect and clean the chimney.
• Repair and replace loose or damaged roof shingles.
• Repair and repaint loose siding and caulking.
• Reseal old asphalt.
• Keep the garage door closed.
• Store RVs and old cars elsewhere while the house is on the market.

Maximizing Interior Appeal

You want your home to look as spacious, bright and clean as possible. Also the home should look neutral – without a lot of your personal and sentimental objects – so buyers can begin to imagine living there.

Here are some tips to enhance your home’s interior appeal to buyers:

• Give every room in the house a thorough cleaning and remove all clutter. This alone will make your house appear bigger and brighter. Some homeowners with crowded rooms actually rent storage garages and move half their furniture out, creating a sleeker, more spacious look.
• Use a professional cleaning service every few weeks while the house is on the market.
• Remove the less frequently used, and even daily-used items from kitchen counters, closets, basement and attic to make these areas more inviting.
• Make sure that table tops, dressers and closets are free of clutter.
• Pay special attention to the kitchen and bathrooms: they should look as modern, bright and fresh as possible. It is essential for them to be clean and odor free.
• Repair dripping faucets and showerheads.
• Buy showy new towels for the bathroom, and put them out only for showings.
• Spruce up a kitchen in need of more major remodeling by installing new curtains and cabinet knobs, or applying a fresh coat of neutral paint.
• Clean walls and doors of smudges and scuff marks.
• If necessary, repaint dingy, soiled or strongly-colored walls with a neutral shade of paint, such as off-white or beige. The same neutral scheme can be applied to carpets and linoleum.
• Check for cracks, leaks and signs of dampness in the attic and basement, and fix any problem areas.
• Seal basement walls if there are any signs of dampness or leakage.
• Repair cracks, holes or damage to plaster, wallboard, wallpaper, paint and tiles.
• Replace broken or cracked windowpanes, moldings and other woodwork.
• Inspect and repair the plumbing, heating, cooling and alarm systems.

Feeling overwhelmed? Don’t be.  If your talents don’t encompass home repair and gardening, not to worry. I have access to reliable, competent contractors whose job it is to make your home shine.

 Call me. I can help. 530.601.1003.