Congratulations!  You’ve listed your house.   Now what else should you know, that you don’t?

In our area it is customary for the seller to take care of certain things prior to the property hitting the market.  These things include the property inspection and the pest inspection. If either of these inspections bring up any major issues the seller will generally take care of them .   Sometimes the inspections suggest additional inspections by other professionals are needed.  Having those inspections done is a good idea even if you don’t choose to make the repairs. These additional inspections might include a roof inspection, chimney inspection, or foundation inspection which is common in parts of Foster City.

You need to budget for those costs and what they cost depends on the size of your home.  Generally figure between $300 and $2000 for the property inspection and $150 to $600 for the pest inspection.  If you can pay at the time of service, you’ll receive a discount but you can pay through your escrow at the closing of the sale of your home.

If you live in a condo you won’t need a pest inspection as your Home Owner’s Association is responsible for pests.  If you live in a townhouse, it will depend on whether you live in a townhouse-style condominium or a PUD (Planned Unit Development) when you own the land under your unit.

Today’s buyers expect a house to be in almost perfect condition.

If it is in picture perfect condition buyers are willing to pay top dollar for it.  If it isn’t, be prepared to negotiate with a buyer who’s going to offer much lower than you hoped to see.  If you don’t want to make any repairs to the home you can have an As-Is listing which is very common in trust sales.  If you have done your inspections and the found all known issues it’s a little easier to get away with an As-Is listing today. Do then expect to price lower than the market.   If you wonder why, reread the first sentence of this paragraph.

You must disclose everything about your home.

One of the biggest reasons we recommend to a seller to have all inspections done before we list the home on the MLS is to help you fill out all of the required paperwork you have.  There are forms that have multiple pages of check boxes asking questions about your home, your neighborhood, and anything else you might know.  You must answer everything completely. One can never over disclose about their property.  The law is clear about that so don’t withhold information about your neighbor’s murder, or loud dog, or noisy buses.  If someone died in your home within the past 3 years you must disclose this.

The Disclosure Package that your Agent gives you is for your benefit as well as your buyer’s.  A buyer can come after a seller who has willfully not disclosed information about their home once it’s discovered. There is no statue of limitations here.  Be honest.  Take you time.  Be complete.

If you’re beginning to worry about all of these costs remember one thing, there’s an ROI in taking care of everything before your home hits the MLS.  You will get a higher price which should cover your expenses.  Friday I’ll talk about what other expenses you need to be prepared for when you list your home.

Here’s what’s for sale in Foster City.

Showing properties 1 - 8 of 8. See more city of Foster City real estate.
(all data current as of 2/10/2012)

1. $1,179,000 : 269 Avocet Ct, Foster City
   
   5 beds, 3 full baths

   Home size: 2,690 sq ft

   Lot size: 6,630 sq ft
   
2. $869,000 : 632 Matsonia Dr, Foster City
   
   4 beds, 2 full baths

   Home size: 1,760 sq ft

   Lot size: 5,320 sq ft
   
3. $999,990 : 850 Gull Av, Foster City
   
   4 beds, 2 full, 1 part baths

   Home size: 2,160 sq ft

   Lot size: 5,320 sq ft
   
4. $1,529,000 : 1001 Monterey Av, Foster City
   
   3 beds, 2 full, 1 part baths

   Home size: 2,170 sq ft

   Lot size: 8,540 sq ft
   
5. $975,000 : 54 Port Royal Av, Foster City
   
   3 beds, 2 full, 1 part baths

   Home size: 1,890 sq ft

   Lot size: 6,798 sq ft
   
6. $1,189,000 : 760 Coronado Ln, Foster City
   
   3 beds, 2 full baths

   Home size: 2,110 sq ft

   Lot size: 4,857 sq ft
   
7. $849,000 : 921 Swan St, Foster City
   
   5 beds, 3 full baths

   Home size: 2,540 sq ft

   Lot size: 5,700 sq ft
   
8. $825,000 : 758 Niantic Dr, Foster City
   
   4 beds, 3 full baths

   Home size: 2,240 sq ft

   Lot size: 6,175 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Just about every homeowner wants to improve their home so that it shows its best to the world.  Well, maybe not everyone, but most normal people do.  I was in an unnamed North County city while out on Broker’s tour and I happened to drive down a street that looked like no one took any pride in ownership of their homes.  And, I mean NO ONE!  It looked like a slum but a slum with homes worth $600,000 to $700,000 if these houses were in good shape.  It got me to thinking about what must go into someones mind when they just stop taking care of their property.  The front landscaping turns to weeds, trees and shrubs die and the place looks, well it looks like a slum. I just don’t get why people have no pride of ownership when a house is the single most expensive investment anyone is likely to make in their lifetime.

So what are the five easiest ROI in landscaping your home?

1.  Lawn.

This is the first, and easiest, ROI in landscaping your house.  If it’s dead, pull it out, and either seed or roll out a carpet of sod (instant gratification, believe me).  The investment on this can be as little as a weekend of labor in rototilling the dead lawn, adding top soil, leveling it smooth and spreading seed.  Then water daily and watch it sprout.  Or, if you want to spend a little more money, rototilling, adding top soil, leveling it smooth and rolling out the sod.  Late Fall is a great time to do this because Mother Nature will do the watering for you.

2.  Trees and Shrubs.

Having too many on a lot is as bad as not having any at all.  We all like to see a couple of trees, especially the shade variety if one has a western exposure.  If you have a lot with too many trees planted too close together, get one or more of them out.  That is easier said than done, believe me, since I have had a yard like that in my lifetime.  I often wonder what the people were thinking planting 3 trees within four feet of each other.  They weren’t thinking, and probably knew they weren’t going to be living there when the trees matured and were entangled into each other!  Here’s how to remove the dead trees and shrubs on your own and save money.  If it’s a big tree, many cities in our County have heritage tree ordinances and you must get permission to remove trees, even dead ones.  They often require that you plant a new tree in place of the old one, but you may chose where to plant it on your lot.  Double check with City Hall before removing those trees, just to be safe.

3.  Flowers.

We all like to see color in a garden and flowers marching along side a entry walkway are welcoming.  Take an afternoon and plant some.  Don’t plant them too close to each other, and allow for space to grow.  Plant bulbs in the winter so you have spring flowers.  Plant fall flowers for color into winter. We are very lucky to have a climate that gives us 12 months of flowers and plants, so talk to the nursery about what’s flowering each season and plant a little of each for year round color.

4.  Bark.

When you see a home that has been staged go on the market, inevitability the yard has fresh bark (or mulch) spread in the garden.  This inhibits weeds, covers blank spots by filling in the earth between plants, and just finishes off the look.  it’s a true do-it-yourself project and takes only a little bit of time to spread the mulch around your garden.  Voliá!

5.  Fencing.

If your fence is falling down by all means fix it.  If you are going to ask a lot of money for your home, the least you can do is fix the fence.  If you have neighbors surrounding your property you can ask them to split the cost as it’s a benefit to them as much as one to you. If they don’t want to do that, bite the bullet and fix it yourself.  You’ll be happy that you did, and  it will enhance your property values.

That’s it.  The top five things you can do to enhance your home and see an ROI on the investment of money and time.  Take a look at this house now.  It has curb appeal and makes someone want to go inside to see the rest of the house.  No one wants to see a dump, unless it is a fire sale, and even then many won’t go inside to look because they make an assumption that the inside looks as bad as the outside.  Keep that in mind when you’re doing your yard work.  There really is a pay back when you have a nice looking yard.

Getting back to my drive down the North County street.  There was one house there that stood out from the rest so I lied about there not being any nice homes there.  It was painted.  It was inviting.  It had neat landscaping.  And, it was For Sale.  But, I did not stop to look at it because of the neighboring houses.  I could not show a client the best house a the block of slum houses.  I can’t do it.  And now you know why.

Check Out Some Homes Currently For Sale In This Area

[listingpress citystate='Foster City,CA|' zipstate='' proptype='Single Family|' beds='0' baths='0' minprice='0' maxprice='0' features='' /]

Kitchens can sell a home. It’s the heart of the house, the heart of the family and the place where friends and family gather.  If your kitchen needs work and you can find the money, redo it.  New cabinets, counters, sink and faucets, and new appliances sell a home.  A medium priced kitchen remodel runs around $40,000  ROI?  Almost always 100%.  If your kitchen was done within the past decade, look at the appliance and replace those.  ROI?  100%.

Bathrooms. If you can, spruce up the master bath.  If you live in one of the homes built in the 1920′s or 30′s and have the black and something colored tile, leave it. The quality of that tile runs circles around what we have today.  Work with thecolor and look at your tub. That’s where we see wear and tear.  There are companies around who will come in and refinish your tub.  ROI? 100%

Landscaping.  You must, must, must have a neat yard. Does the grass need reseeding?  Cut it out and put in sod.  Have someone come in and weed.  Plant flowers.  Put bark around bare spots under trees.  have trees pruned. Pick up fruit that’s fallen on the ground.  100% ROI. If your patio is in bad shape replace it.  A new concrete patio runs several thousand dollars and will dramatically improve the look of your backyard.  ROI?  100%.

Decks.  They are the biggest issue for Pest companies.  If your deck is bad, you are given two options.  One tear it out.  Two replace it with Trax a synthetic material that is pest resistant.  ROI?  75%

Painting trim on your house may be all it needs.  Power wash the siding.  Paint your front door an inviting color.  Put fresh plants next to the door.  Hand a wreath on the door.  Make it welcoming. ROI?  100%

What not to do?  Don’t refinish floors in a house that needs to be remodeled.  I can’t tell you how many times I’ve seen this done and what a waste of money it is for the seller.  ROI?  $0.

Don’t over improve for your neighborhood.  If you live in an entry level neighborhood with mostly first time buyers do just enough to make your house sparkle but don’t over improve it.  No one wants to buy the most expensive house in the neighborhood and you will not see a ROI.

Don’t make your house too different from the others by adding rooms that make no sense to anyone else but you and your family. Remember the Winchester Mystery House?  I’ve seen plenty of silly kinds of additions in homes and they sit on the market for a long, long time.  ROI? $0

Finally, DO invest in the cost of a stager.  The Stager is a professional who can help you both inside and outside of the house.  Their practiced eye and keen sense of what’s going on in the market will help show of your house to its best.  Whether you have to move your furnishing out prior to the sale and have them bring in their furniture, or have them supply only a few extra pieces to fill in it’s well worth it.   If you are like so many of us and your house is cluttered, the Stager will help you clear out the house.  They are there to help your ROI and generally can add between 15% and 20% to the selling price. That is one heck of an ROI in my opinion.

Remember, don’t over improve your home for your neighborhood.  It makes no difference whether it’s an entry level, mid-level or high end home.  Look around at the homes for sale and see what’s been done to them to enhance their look and appeal.  Follow suit.

Your Home is Your Castle

Your home is the largest investment you are likely to make in your life.  Almost everyone
wants to keep improving their homes because they want to keep this investment improving and hopefully appreciating in value.  So the big question becomes should you DIY or DIFM your improvements?  In case you don’t know what that means it’s Do It Yourself or Do It For Me and have it done.  Will you see a better ROI doing it one way or the other?

If you are handy, by all means consider doing it yourself, unless it’s a big job.  Here’s my list of easy DIY’s that can save you money and give you some satisfaction on a job well done.

• Painting.  Almost immediate satisfaction and it saves a lot of money.  But it’s easier to do inside than outside, especially with a two story house.  If you have high, high ceilings in a room you might want to call in a professional.
• Simple electrical such as replacing a light fixture.  Just remember to flick the circuit breaker while doing this.
• Installing appliances.  Dishwashers, washers and dryers are easy to do.  It’s a little more difficult if you want to install a microwave/fan unit. For that installation, you will need a helping hand.
• Stripping off old wall paper.  This is very easy to do with the large assortment of products available to help.
• New lawns.  The prep work for a law takes some time and effort but once it’s done either roll out the sod for instant gratification, or sprinkle the seed and keep watering.
• Replacing screens in your windows. Measure the old screen, if still there, and order new ones to fit the windows. Don’t forget to replace torn sliding screens while you’re at it.
• Simple plumbing.  It’s not hard to replace your old faucet, parts inside the toilet or the shower head.
• Kitchen cabinets.  It’s really not rocket science to redo a kitchen if you measure well, order cabinets accordingly and have several pairs of hands to help you. Otherwise, consider painting your current cabinets and putting new knobs and pulls on them.

Use a contractor for larger jobs if you are short of time or don’t like DIY work.  Ask for referrals for tradesmen you want to use.  Your friends and your Realtor are always good resources.  We have a link to our referrals on the right. 

The DIFM list of jobs can be anything you don’t want to do, or can’t.

• Patios, spas and pools are generally DIFM projects.
• Home additions. The entire process from start to finish requires an expert maneuvering through your Planning Department in almost every city around.  Licenses for the job require time and patience, too. If you tackle this without permits it can cause problems when you want to sell you home, so reconsider this.
• Roofing.  This is dangerous work for a DIY.
• Fences.  Not a hard job if you have help from the adjoining neighbor, but that often easier said than done.
• Kitchens.  See above. If it’s too much for you, have it done either replace those cabinets or reface them.
• Counters.  Sure you can do tile yourself but it always looks like a DIY project.  You need professionals to install granite or laminate counters.  I also recommend having a good tiler do your tile.

Whatever jobs you do take on, take care to do them well.  If you are trying to save money by DIY consider what your time is worth, the cost of the product you are using and the look of the finished job.  Would you want to buy a home totally redone by a DIYer?  Would you want to reduce the offer price because it was?  Keep your eyes open to see what your neighbors have done to improve their homes and how they have done it.  Will any of you see a ROI for this?  After all, isn’t this what it’s ultimately about?  It sure is.  Learn how to do the simple stuff.  Home Depot offers free classes every weekend on how to do all kinds of things.  Take them.  You’ll gradually build up your skill set on home
maintenance.  Then you’ll see an ROI but it will be in your budget.

Make sure that any professional you consider hiring is bonded, has Workers Compensation Insurance for their employees, and will give you references.  Check them, too. There are too many horror stories out there about unlicensed contractors to ignore.  Take time to check those references and you will never be sorry.

So, you’re looking at that house for the third time and saying, ‘it’s not quite right.”  It needs
a new….  And, then you ask me what does it cost to do….?  You get the idea.  Whether it’s a new kitchen, windows, bathroom, roof or an addition to make the house perfect for you and your family, you need to have an idea of cost.  And then, what your ROI might be.

I am asked this kind of question fairly often.  What will it cost me to replace the windows?
Or, how much does a new kitchen cost?  My answer always is “it depends”.  It depends on quality.  It depends on vendor.  It depends, especially when it comes to that kitchen, on the appliances you choose and the kind of cabinets, or both.  Remodels and additions can be pie in the sky when it comes

Just in case you’re thinking about doing a little remodeling once you close escrow, here’s my 2008 guideline on what to expect it to cost.  Plus, when you get ready to sell your home, after doing everything to it to make it just perfect, what you can expect to re-coup.

Let’s begin with likely moderately priced additions to the
house.

Now let’s look at a moderately priced remodels of the house.

But, what happens if you want to go First Class with your remodel?

The costs above are for additions or remodels that are done with medium prices appliances and fixtures which are perfectly fine for most of us.  If you’re living in a more upscale neighborhood, where doing only the best works, then prices are considerably higher.  The first are to give you an idea for additions to that future home you’re considering.

Now, what if you only want to update the house because it’s such a great buy?

For an idea of what it might cost going whole hog, Full Monty or where money’s no object look at this.

Here’s the surprise in comparing the moderate projects versus the high end projects, the ROI on the higher end isn’t always as good as it is on moderate.  Isn’t that interesting?  So if you want to do something to that house you’re considering buying, only do what you really want to do, and not what you think will give you the best return when you sell.  Your idea of the perfect kitchen, bathroom, office or deck, might not be the next buyer’s idea.

The first question I have is do you have Hardwood floors?  If yes, what condition are they in or do
you even know?  If you don’t, is your home carpeted?  What’s under the carpet, hardwood,  plywood sub-flooring or cement slab?  How can you find out without yanking up the carpet?  Ah ha, that’s simple.  If you happen to have heat registers in the floor, pull up the register plate and gently lift up the carpet and pad
around the cutout.  What do you see?  If it’s plywood then you know what you have.  If you don’t have that, then pick a corner inside a closet and gently pull the carpet and pad back to see what’s there.  Often closets are left uncarpeted as a cost savings so you will know that way.

Today, people like hardwood floors and they like to see them in good condition, well cared for and shining
bright.  Refinished floors are a great sales point and a good ROI if your home is also updated in some of the ways I’ve talked about previously.  Is it worth it to install them if you don’t have them?  No, no, and no.  Refinishing floors runs in the low 4 figures.  Installing wood floors is two to three times that.  Unless your home is completely remodeled don’t consider it for the entire house.  If you really like the idea do it in the Living Room and Dining Room only.  Otherwise, what should you do?

Carpet must be clean and in good condition.  Nothing looks and makes a home appear more uncared for than dirty, worn carpeting.  Replace it with a neutral color.  Unless it’s an expensive Burber avoid that
kind of weave, as it looks cheap.  There are many place to go to for carpet from Lowes, to Home Depot, to Costco, to your local floor and carpet store, who often meets or beats the big discounters.  Shop carefully and work with you Realtor in selecting the best product for your home.

What about Kitchen flooring?  What’s there now?  Is it vinyl, tile or hardwood?  What’s the condition?  If you’ve painted and replaced appliances then follow up with a new floor.  Neutral vinyl is best and most affordable
proving the best ROI.  Bathrooms are either tile or vinyl and do show wear and tear.  Before replacing those floors make sure you have no issues with dry rot.  It’s a good time to get that pest inspection, just to be sure.  If there are issues, the sub-floor will need replacement along with the flooring materials already
there.  Replacing a tile bathroom floor is expensive so talk with your Realtor to decide the best way to go on that one.

The best ROI’s in flooring are the things that you, too, want to see in the new home you’ll be buying.  Clean floors, be they carpet or wood, tile or vinyl are immediately seen by prospective buyers.  They are one of the first things seen when someone enters your home.  By shopping carefully, you can find good solutions to your floors and enhance your property.  Do these things just prior to listing your home.  Floors scratch, carpet gets dirty, and buyers love “new”, so do your floors last.

Call Us

I received a call today from a former client. It’s the kind of all all
agents get, and don’t like.  We had gone over the hill to see him
last week because he has taken a  job in an east coast city and needs to put his house on the market.  He has one fabulous house with unobstructed views of the coast and a huge lot.  He sunk in over a half a million dollars in landscaping.  Remember my comments on ROI in updating your home for selling in my earlier post this week?  This is one ROI not likely to happen.  He spent the money because he didn’t think he was going to move from this house for many years so it seemed like a good investment at the time. Little did he know that a job offer would come that couldn’t be turned down.  So he wanted to talk about listing his property.

We presented a CMA (Competitive Marketing Analysis) on his home last week.  I had spent many hours preparing this CMA, researching what’s going on over the hill on the coast, looking a comparable homes
in person, and felt I had a very good feel of the market at the moment we were meeting.  I told him what I thought it should list at.  The price I gave hadn’t been arrived at in a vacuum, but with the help of conversations with other agents selling in that market and my experience as an agent.  He felt the price was way, way to low.  He wanted to recapture his ROI on the money he spent on landscaping.  Granted, the yard is amazing with blue flagstone patios, an outdoor kitchen, outdoor fireplace and spa area but it was
just completed last year.  He admitted that had he thought they’d be moving they might not have done such a grand job but they did what they did.  It wasn’t done with the idea of a resale in the near future it was done because it was what they wanted to live with.

We had several conversations this past week. He told me that other agents were telling him that he could get as much as $1 million more than what I had first suggested listing the home for.  He said he couldn’t believe the large spread agents were telling him and he was having a hard time grasping this spread.  I told him that we could list the house at the price he first threw out to me and see if anyone came to see it at that price.  If no showings, we lower the price.  But, there is always a danger in doing this.  The big danger in doing this is you might need to keep lowering the price i until you finally find a seller.  Then everyone wonders what’s
wrong with the property when you do this.  There is another option of course and that is to hold your price and hold it, and hold it, and hold it until the market meets it.  That can take a year or two if you’re able to hold out. But no one is likely to show an old property much.

The call this morning was to tell me he had listed his home with another agent for $1,000,000 more than I had suggested.  When this happens it is usually because an agent is able to tap into what the prospective seller wants to hear and to over promise.  I wish them both much luck in selling this home.  I told him as much.  Perhaps I am dead wrong on where this amazing property should be priced at, but something deep inside of me tells me I am not wrong and he will likely have to make months and months of payments on a home sitting empty waiting for someone to want it.

What this tale is all about is that pricing high is not always the best way to go.  Sometimes it is best to price where the market tells you to be,  not where you hope the market will be.  After all, if you are serious about selling your home for the highest ROI, listen carefully to what the agents tell you and try, try as hard as you can to be objective.  Many agents out there will tell you just what you want to hear and not what you need to hear.  Selling a home is an emotional process just like buying one is.  Selling is also very disruptive to your life but if you want to get it done in the shortest possible time, don’t over price it.  Price it right and it will sell fast.  Price it high so you might be able to recapture your ROI and you just might find it sitting on the market for a very long time.  Then you won’t think about a ROI you’ll think about getting it sold so you don’t have double payments.

Okay, we’re talking this taking affect 43 years from now and many of the old homes in Berkeley’s flats may not even be around 43 years from now, but what if they are?  Will the owner’s be able to make the required changes?  Appliances, yes.  Hot water heater?  Hum, those instant tankless hot water are very expensive at today’s prices but perhaps over time they’ll be competitive in price to current hot water heater
tanks.  What about insulation?  One has to assume that if this law takes place in 2050, people will have had time to made accommodation and hopefully Berkeley will have reasonable steps in making progress on this

What do you think about this?  If your city council mandated changes like this would you do them willingly? Have you made any changes on your own to reduce your energy usage?  I know we have.  I drive a Prius for one. We have the newest front loading washer and dryer both highly energy efficient. We have low flow showers, low flow toilets. We have insulation in our walls and ceilings.  But, hot water heater? Nope it’s a tank and until it needs to be replaced it stays a tank. We do try to conserve water and energy on our own.

Please tell us what you have done to help the planet.  Do you think Berkeley is on the right track? Every day we read something about the green movement and global warming. it’s our planet and we only get one chance in a lifetime to save it.  What are you doing?  After all, it’s not easy being green…. just remember Kermit’s little song.