We have heard recent statistics that state as many as 30% of the current sellers on the market are testing the waters and may not actually me motivated to sell their homes. Most of these would fall under the category of investor or the "wouldn't it be nice if we could get that much for our house, hey, let's try" group. When a market begins to shift you will see this type of activity due to home owners considering this as a last chance for a potential sale at a price that is very likely no longer possible. We ourselves have recently rejected three opportunities to list homes in the area due to unrealistic expectations of the seller.

We recently came across this article and thought we would share it with anyone considering a sale in the current market place:

When someone decides to sell their property, they want to sell it for as much money as the market will allow. Pricing too high will keep their home from selling. A low price will keep them from receiving full value. When trying to come up with that “Right Price”, Sellers need to consider the following:

Understand the Market. It’s the market that determines value. When determining the listing price Homeowners should look at the price of similar homes in their neighborhood that are currently for sale and those recently sold. They should also have their Real Estate Agent provide a summary of listings of similar homes in their neighborhood that have been withdrawn or expired.

Carefully and Honestly Evaluate the Condition of your Home - Most Buyers base their decisions on the condition of the home as well as the price. Sellers need to take the necessary time to prepare their home to attract the most potential Buyers.

Listen to Your Realtor - Real Estate Agents constantly review property sales and market conditions. The Agent can provide invaluable expertise and information necessary for Homeowners to effectively price and sell their home.

THE MAJORITY OF HOMES THAT ARE PRICED CORRECTLY ARE SOLD WITHIN THE FIRST ONE TO TWO MONTHS. IF A HOME IS NOT SOLD WITHIN THE FIRST MONTH, THE PRICE IS PROBABLY TOO HIGH.

The Benefits of “RIGHT PRICING”

A well priced home gets a better response. Sellers will attract more potential Buyers. More Real Estate Agents will show their home because it is attractively priced. Their home sells faster.

Let’s face it, selling a home is stressful. The quicker someone sells their home the less wear and tear on them and the less stress.

The closer the price is to market value, real as well as perceived, the higher the offers. The Seller’s home never loses its "marketability".

The Factors that Influence Overpricing

All homes need repair and maintenance from time to time. Homeowners should not ignore items that need attention, particularly when placing your home on the market. But they should not assume that they will receive and adequate return for necessary but extensive renovations, repairs and maintenance. These may be necessary for full market value but are not necessarily a cause from an increased price.

We all need money. Sometimes more than other times. While that may be a factor in placing a home on the market, Sellers need to be careful that it does not cause and over priced listing.

Owning a home is the great American dream. Moving up to a bigger and better home has also become part of that dream. The desire to purchase in a higher priced area can often influence a Seller to price there current home too high.

Sometimes Buyers pay over market for their current home and when it comes time to sell, their original purchase price becomes an influencing factor in pricing their home. Remember, the market determines price, not original purchase price.

A Seller that does his or her homework prior to the pricing decision will usually be able to understand, set and live with the “Right Price”. Lack of “Real” market information often leads to overpricing. Friends and neighbors while valuable are not good sources of valid information.

A high price does not mean a Seller will have bargaining room. On the contrary. It usually means there will be no opportunity to bargain because it drives potential Buyers and Real Estate Agents with ready wiling and able Buyers away.

Everyone has a emotional attachment to their home. Sellers need to keep that in check when selecting the “Right Price”

As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when potential Buyers sit up and take notice. If the home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of the buyers are lost.

The Results of Overpricing

Sellers often think that interested buyers will make an offer if the Buyer doesn‘t like the price. Actually, in this market, just the opposite occurs. Buyers who can only afford homes in a lower price range will never see their home. Those Buyers looking in their price range will recognize that they can get a better value elsewhere. Overpricing their home may only accomplish the sale of someone else’s home.

Quite often Sellers think that if they price their home high initially, they can always lower it later. When a home is priced too high, there is very little showing activity. After the home has been on the market a few weeks Sellers realize that it is necessary to make a price adjustment. But now there are two other things to consider. In a changing market such as we have now the market value may have gone down, and Buyers tend of homes the believe have been on the market too long. It now becomes a game to find the right price that will entice a Buyer. That price might now be below market value. So the effect of initial overpricing is creating a sales price that may be below market value. And the sale of a home for less than it is worth.

“RIGHT PRICING” Affects Showing and Offer Activity

“Right pricing” means offers. Incorrect pricing means fewer or no offers, price reduction(s), more days on market and the potential for the property not to be sold.
Recent data has shown that a home that is priced within 1% of the market value will generate showings and will probably receive offers. A home that is priced from 1% to 4% of the market value will be shown but will probably receive no offers. A home that is priced from 4% to 8% of the market value will generate drive-ups but will not be shown and will receive no offers. A home that is prices over 8% of the market value will have drive-bys only and the likelihood of recovery to a marketable price that will generate an offer is slim. As can be seen, there is little room from error.

“RIGHT PRICING” is the key to an efficient and effective listing of a home for sale. It is the key to a stress reduced sale. It is the key to receiving the highest and best offer. Sellers should take the time and work with their Realtor to make sure the “Price is Right”.

Our friend Nikki Jordan will he hosting a Wellness Home Preview this Monday in the China/Haddon Hill neighborhood of Oakland. Please read the note we have posted from Nikki below and if you have interest in attending, contact us directly for further information. You can leave us your contact information at 510.595.7699

Here's the note from Nikki:

I want to invite you and anyone you wish to bring along or send to my first Wellness Home Preview. This will hopefully be the first of many. I had to leverage my time, as I was doing a lot of one-on-one's about this subject! Besides, the more the merrier!

Nikken is a company which has spent millions on research and development in the field of healthcare (it is the size of Microsoft) - specifically on what the individual and family can do for itself to become or stay well. In fact, their stated vision is to improve the health of the world, one household at a time. Nikken's specific interest is optimal health, defined by cellular wellness.

The ability of the cell to have the energy to do what it was meant to do defines cellular wellness. Without energy, it cannot do what it was meant to do - and illness begins - before you will even know it. Nikken understood this and became the only company in the world to ask and follow through on the question: what is the ecosystem of a cell? They defined this, and then set out to create a set of solutions to support cellular wellness by supporting the ecosystem of the cell.

Although this company is as large as Microsoft and as stable (completely cash rich - it just keeps reinvesting it's profits into R&D and is not public), few people in the US have heard of it. Nikken is in 38 countries, and does 1.5 billion in sales annually. It wouldn't be doing so well if it's technologies didn't well for people.

Some of their successes have been dramatic: a wheelchair bound woman in her 60s with MS now walking and leading a normal life; people on their deathbed with cancer becoming healthy before "the plug was pulled"; people avoiding supposed required surgeries by a simple wellness home; a man with chronic seizures, and thus unable to work, now able to avoid seizures and work; and so on. My story is not so dramatic (thank goodness!), but Nikken has been equally as powerful for me and my family, and for some others I know.

Come learn what this all means, see the technologies, test them out, and understand what you can to for yourself to ensure your health gets on the path to wellness. The genious of Nikken is that it's solutions do not require a lifestyle change - they are things you are doing anyhow.

We have had several of our clients recently ask us about reversal mortgages for themselves or their parents.
Here is an article that discusses the Advantages and Disadvantages of reversal mortgages;


Advantages and Disadvantages of a Reverse Mortgage
A Guide to Reverse Mortgage Pitfalls and Benefits

For many people, a reverse home mortgage is a good way to increase their income in retirement - positively affecting their quality of life.
Advantages of a Reverse Mortgage

The main advantage of reverse mortgages is that they are an extremely flexible financial planning product with very few - if any - restrictions on how you receive and use the money.

To many people, a reverse mortgage simply sounds too good to be true. But, there really are no catches - given the right set of circumstances, a reverse mortgage is an ideal way to increase your spending power in retirement.

Key advantages and benefits of reverse mortgages include:

No Risk of Default:
Unlike a home equity loan, with a reverse home mortgage your home can not be taken from you. If you default on a home equity loan, you could lose your home.
The Reverse Mortgage Lenders have no claim on your income or other assets.
No Downside: You will never owe more than your home's value at the time the loan is repaid, even if the reverse mortgage lenders have paid you more money than the value of the home.
Tax Free: The money is typically tax free, since it’s a loan when the homeowner receives the funds, as either additional fixed income or a lump sum.
No Restrictions: How you use the funds received is not restricted - go traveling, get a hearing aid, purchase long term care insurance, pay for your children’s college education - anything goes.
Flexible Payment Options: You can receive the loan money in the form of a lump sum, annuity, credit line or some combination of the above.
Easy Pre-qualifications: There are no income qualifications
Home Ownership: You retain home ownership and the ability to live in your home
Guaranteed Place to Live: You can live in your home for as long as you want
Federally Insured: Some reverse home mortgages are federally insured - these are known as HUD's HECM FHA insured Home Equity Conversion Mortgages (HECM) reverse mortgages. With these, even if the reverse mortgage lenders default, you'll still receive your payments.
No Maximum Loan Amount: For Seniors with a large amount of home equity, private reverse mortgage lenders offer products with no maximum loan amounts.

Disadvantages of a Reverse Mortgage

A reverse mortgage may not be for everyone, consider the following:

Beware if You are Eligible for Low-Income Assistance: If you are currently or will be eligible to receive low-income assistance from the Federal or State government (like Medicaid), you will want to be careful that income from a reverse mortgage does not disqualify you from that assistance. (NOTE: Social Security and Medicare are not impacted by a Reverse Mortgage.)
Reconsider if You Are Planning to Move in the Near Term: Since a reverse home mortgage loan is due if your home is no longer your primary residence and the up front closing costs are typically higher than other loans, it is not a good tool for those than plan to move soon to another residence.
Evaluate if You are Willing to Reduce Your Heirs Inheritance: Many people dismiss a reverse mortgage as a retirement option because they want to be sure their home goes to their heirs. And it is true, a Reverse Mortgage decreases your home equity - affecting your estate. However, you can still leave your home to your heirs and they will have the option of keeping the home and refinancing or paying off the mortgage or selling the home if the home is worth more than the amount owed on it. There are numerous potential Estate and Retirement Planning benefits to a Reverse Mortgage

We hope this information helps you with your decision should you be looking into a reverse mortgage!

By Dave and Carla Higgins
Your Real Estate Consultants for Life

This is a question that we hear all the time from our clients and the correct answer is it depends on our own personal situation.

When we bought our first California property in 1992 interest rates were at 8.5 percent and everyone told us that we were foolish to buy and that the market was crashing and purchasing a property was a crazy thing to do. Is it not interesting how everyone is an expert on what is we should be doing or not doing with our own lives? Our rent, at the time, was $900/month so in our eyes we were already losing almost $10,000/year (with no tax advantage) and paying another persons mortgage so why not put that money into our own mortgage?

We purchased a condo and lived in it for the next 8 years until we had outgrown the space. When the time came to sell we made a sizable, tax-free profit off the equity that we built and also saved ourselves close to $70,000 that we would have lost due to paying our $900/month rent (and that is based on no increase in our rent over the years).

Would it still have made sense to us to purchase the condo if we had only anticipated living in it for a year or two? Probably not. We, however, were not looking for a property to purchase and flip, we were looking for a property that we could move into and live comfortably in along with building equity as opposed to paying rent.

If you are looking to purchase a property with hopes of selling it in a year or two and turning a profit then no matter when you buy it is a risky investment and not something that we recommend. Real estate, for the most part, is best looked at as a long term investment with a minimum of 5 years holding the property before considering selling. Statistics show that the average family moves every 7 years so 5 years is not too much of a stretch to strive for.

We have clients that have been talking themselves out of buying a home for the last 25 years because they have just never felt like the market was right for them to buy. They did not want to make a bad investment. When we had them add up the amount of money that they had paid in rent over that time period they realized that they had actually lost almost $500,000 out of fear of making a bad real estate investment.

So, is now a good time to buy real estate? Again, it depends on your own circumstance but with interest rates at near historic lows and prices stabilizing it is does not get much better than now to jump in.

By Carla Higgins
Dave and Carla Higgins
Your Real Estate Consultants for Life

Carla and I want to brief you on a few of the marketing items that we have been working on to better serve our property selling clients! We have always been firm believers in the idea that maximizing a homes exposure to the largest audience of buyers helps assure a seller the highest possible sales price.

Obviously, correct pricing of the property based on the active market conditions (at the time you go live with the listing) is imperative as is the overall preparation of the property and maximizing the emotional hot buttons that it offers.

Video Tour
We have been experimenting with an ultra high-end video tour system that is second to none (and we can proudly say that we are the only ones actively using it in the local area). The tour is an actual mini-movie which is in the mid 3 minute range and is easily viewable by most all buyers online anywhere in the worls through simple 'flash technology'. You can view one of our current tours by clicking the following link; http://www.higginshomepreviews.com/VHT07/311OakStSuite518.html

YouTube
With the creation of our video tours we are also able to post them on YouTube which is one of the hottest websites now on the web. YouTube was recently purchased by Google so the tours are widely available for anyone to see by doing random searches on the YouTube site for local properties. Carla and I are two of only a handful of realtors who have embraced this powerful technology and it has increased our sellers exposure in a very high caliber way. You can view a YouTube property at; http://www.youtube.com/watch?v=21RZ2i5kiaM

New Flash Map
We encourage you to stop by our website and see our recently revamped virtual office. We have placed a very user friendly search-map on the home page which has been developed to get buyers to stop when they find us and start using the site as the main 'go to' spot when conducting home searches. This of course is a highly powerful way to attract a higher percentage of buyers to our listings which they will always stop and view while browsing. Please take a look at www.DaveAndCarla.com to see more.

Real Estate Blog
As you know (since you are reading it), we have added a new real estate blog to our website and add new content to it weekly. The blog is a powerful way to share information with others through a grassroots format. While blogs can take on just about any content or forum imaginable, ours is (of course) real estate specific and focuses on the local and California market. Blogs are helpful in another way in that they help build better search engine placement for our website. Soon our site should rank on the front page of most searches that are focused on local real estate. This also helps our sellers by getting more eyes on our listings.

Craigs List
We were some of the first realtors here in the area to advertise our listings on Craig's List. We are now some of the first realtors to have a very strong format to advertise out properties on within the Craigs List website. It is easier to explain by having you take a look at this link then through a leangthy description and we invite you to view our property advertisement then look at any other ad on the site (you'll see what we are talking about). http://sfbay.craigslist.org/eby/rfs/264708488.html

We of course still continue on with our post card mailings of new homes for sale, contact an expansive list of buyers that have registered on our site with 'New Listing' announcements, do extensive paper media advertisements and hold open home and brokers opens. However, in this new market of growing inventory and skeptical buyers, our new systems are a tremendous asset.

If you know of anyone looking to sell a property in the near future, please forward them this email so they can consider our systems when choosing whom to work with on the sale process.

Lastly, Please feel free to use us as your real estate recourse should you ever have any questions about the market or process!

Dave Higgins
Dave and Carla
Your Real Estate Consultants for Life

Here are some fast facts regarding the Real Estate Market!



Calif. median home price - November 06: $555,290 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region November 06:
Santa Barbara So. Coast $1,083,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region November 06:
High Desert $332,340 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third Quarter 06:
24 percent (Source: C.A.R.)

Mortgage rates - week ending 1/11:
30-yr. fixed: 6.21%; Fees/points: 0.4%
15-yr. fixed: 5.96%; Fees/points: 0.4%
1-yr. adjustable: 5.44%; Fees/points: 0.5%
(Source: Freddie Mac)

Dave Higgins & Carla Higgins
Dave and Carla

In this new real estate market, we have seen a dramatic drop in turnout for most open homes in the East Bay. We recently came upon this article and thought we would post it for you to read.

Industry watchers evaluate the practicality of holding open houses in today's market

By John Voket

RISMEDIA, Jan. 16, 2007-In this age of "virtual tours," "talking houses," and practically every real estate client using the Internet during some segment of their new home search, is the practice of hosting open houses becoming impractical?

While precise figures on the exact number of home sales directly resulting from open house visits remain elusive, it is clear that real estate professionals and industry watchers from across the nation believe the "open house" still plays a vital role in the overall strategy of marketing homes for sale.

Sharon Luther, a Realtor, mediator, and member of the Professional Standards Council, Bay East Association in Castro Valley, CA, bemoaned the lack of hard data to substantiate whether or not open houses serve any relevant purpose.

She suggested in the current market situations where time on the market is increasing markedly and buyers are driving hard bargains, sellers want to see their Realtor "working."

"I think this may be one of the primary reasons why many agents are forced to hold homes open," Luther said. "But in this day and age, most people are hooked in (to considering certain homes) by the Internet, and almost everybody seriously looking to buy a home is pre-qualified, so many of the reasons why we used to hold open houses are no longer applicable."

Delores A. Conway, Director of the Casden Real Estate Economics Forecast at USC's Lusk Center believes that in a hot market a seller has a lot of power because houses don't stay available for long.

"But in a slowing market, houses are staying on longer," she said. "Now the Open House serves as a showcase for the home, and highlights differences to the buyers who have many more options."

Conway believes if Realtors don't hold open houses, their clients will be at a disadvantage. While she concedes that buyers are doing a lot more homework on the Internet, she said open houses still provide a lot more information than the Internet listing.

"Open houses are typically used in normal times, and the cost to hold them is justified because of the competition in the market," Conway said. "While percentages of sales from open houses vary widely, some areas attribute a significantly higher number of sales (to the pratice)."

John Ansbach of RECON Intelligence Services agrees that in recent years, agents have been shying away from open houses as a networking and referral tool.

"None of our clients are stopping it, but it is no longer the consumers' exclusive experience. While in the future, it might be challenging to prove their value in the larger scope of the overall transaction, I think today open houses still earn their keep," Ansbach said. "For a vast majority of professionals it is still a viable experience, and an exhibit of value to both the seller and the buyer."

According to a 2004 survey by the National Association of Realtors, 87 percent of home buyers found open houses very or somewhat useful in their home search.

A 2003 NAR survey showed 72 percent of 3,000 buyers, "…drove by or viewed a house for sale as a result of an Internet search. While 46 percent walked through a house visited online.

Ann Garti, CEO of the Orange County Assoc. of Realtors said judging from the open house announcements in weekend papers in her region, she believes the practice still has purpose.

"However, I have no way of knowing the amount of traffic generated," Garti said.
She pointed out that Prudential Douglas Elliman do full page ads in the NY Times, and Weichert Realtors also use the full-page print advertisement to showcase open house opportunities extensively.

Ann Guiberson, President/CEO of Pinellas Realtor® Organization in Clearwater, Florida agrees with Garti.

"There has been a huge up-tick in open houses; however for years my members have said they are not really effective in helping to sell the home" Guiberson said. "They do it because it makes the seller feel good, and sometimes the Realtor who sits on the open house gets some leads."

Guiberson observed that overall, the real estate industry seems to be returning a era where they are trying to, "go back to the basics. But at the same time, (the industry is) resurrecting tactics that were not especially effective in the last transitioning or buyers' market," she added.

As far as Sharon Luther is concerned, open houses in a world providing a wealth of other electronic options potential buyers can access from the comfort of their own home or desk heavily weigh against this "old school" marketing practice.

Posted by
Dave and Carla
Dave Higgins Carla Higgins

Here is a quick note to let you know how we can help you or anyone you might refer to us.

As we've watched a seller's market turn into a buyer's market, we find ourselves thinking about the growing inventory of homes for sale in Oakland and the surrounding communities and the large number of people who have been thinking about making a move or an investment. Do they understand the importance of taking action now, before the market changes again or interest rates rise and they actually pay more money for a property, even if the asking price is the same price or less?

Recently we helped find a ER Doctor and her Engineering Professional Husband the perfect Oakland home in Piedmont Pines. They are savvy buyers and had been watching the housing market for the last couple of years looking to time their home purchase when interest rates were still near all time historic lows yet home prices had come down with less of a chance for overbids.

This purchase may not have been possible for our clients a year ago, but now the timing is right for buyers who are aware of the opportunities.

Carla Higgins
Dave and Carla Higgins - Real Estate Consultants
p.s. Who are the next people you know looking to buy their first home, move-up home or investment property? Please give us a call or email us to find out how we can help and offer world class service. Read more about the satisfied client's we've worked with at this link!

$10,000.00 CREDIT BEING OFFERED TO BUYERS to be used anyway buyer chooses on this lovely Berkeley Craftsman Bungalow! Spacious, light filled home with numerous upgrades including spacious open kitchen, All new double-paned low-E windows installed throughout, Installation of fully programmable gas central heating system, foundation bolted to the sill plate throughout (seismic retrofit). The roof on this house is fairly new – about 5 years old. Also features are warm hardwood floors, cozy fireplace private backyard and detached garage. This house sits directly in front of one of Berkeley's designated Bicycle Boulevards – Channing Way. If you like to bike, bike anywhere, bike everywhere! Four blocks away is home to The Berkeley Lawn Bowling Club (free lessons Sat am). Further down the same street is a great park for kids: "Acton Park." Living in this area of Berkeley also provides easy access to the Berkeley Marina (sailing lessons), Cesar Chavez Park (biking, running, beautiful views, off leash dog park), Skates (a great restaurant right on the water offering perfect sunset views), and, of course, all the 4th Street shops.
View this property at: 1224 Channing Way, Berkeley, CA 94602 Contact: Dave and Carla Higgins (510) 595-7699 for more information.

Wonderful split level Oakland Hills Home! Spacious fenced private backyard, large patio off the dining room, oversized lower rumpus with full bath and laundry which exits onto the yard, attached garage, updated master with full bathroom and walk-in closet, hall bathroom, warm hardwood floors, open kitchen with gas range, cozy fireplace and spacious open floorplan! Quick access to Hwy 580, minutes from the wonderful Oakland Zoo and so much more! View this listing: 190 Maggiora Drive, Oakland, CA 94605 Contact: Dave and Carla Higgins (510) 595-7699 for more information.

This unit is the largest and most exciting of all spaces offered in the wonderful Sierra Building and features incredible two level separation of space, walls of glass looking over the pool and open kitchen and entertainment area. Three bedrooms, two bathrooms, in-unit laundry, plus room in the loft overlooking the living area, hardwood floors, stainless steel appliances, granite countertops and limestone vanities. Truly a must see! The Sierra exudes openness, spaciousness and freedom with a chic two-story lobby inspired by the natural colors and textures of the California mountains. The buildings third floor offers an outdoor heated pool, sauna and sundeck as well as a media room w/flat screen TV and pool table. View this listing: 311 Oak Street #518, Oakland, CA 94607 'The Sierra'