Is Staging Really Necessary?

     You wake up in the morning, you don’t brush your teeth or comb your hair, and still wearing pajamas you go out on a blind date.  Think that date will be successful?   I saw two houses last week filled with clutter, and one didn’t have the beds made.  Neither of my clients liked the homes, even though underneath the mess were two nice places to live.  Seeing these homes was like meeting someone for the first time who was wearing, well, pajamas.  

     Selling a property is a lot like dating: you’re looking for people to fall in love with your home.   When most people meet a potential mate for the first time, they make an effort to look their best.   They fix their hair, dress in flattering clothes and try to make the most of what they’ve got.   Before stepping out on your first date, someone probably yelled in your ear, “First impressions count!”  They count when meeting the love of your life, and they count when selling your home. 

     It’s difficult to be objective about something you’re really close to.   We often  grow to ignore, even embrace imperfections; we just stop noticing things we live with after a while.   That’s why an outside professional opinion is often very valuable.  Initially, your listing agent should be able to give you a good idea about which features  of your home are important to buyers, and which could prove problematic.   Though many agents are very good at identifying the strengths and weakness of a home, designers who stage homes have the tools and resources necessary to creatively dress  up a home and make it stand out and shine.

     Just as it’s not necessary to buy a pricey designer dress to look good, it’s not necessary to hire the most expensive stager to make your home look great.  There are stagers in all price ranges who can provide varying levels of service.  A home can be staged from top to bottom, the furniture in the home can be selectively augmented with pieces brought in by the stager, or the stager can rearrange or repurpose furniture and give the home a fresher look by working with what’s already there.  When getting estimates from stagers make sure to look at the cost as a percentage of your total sale, so you can how this cost relates to your projected bottom line.  

     Another reason almost everyone listing their home should seriously consider using the services of a stager is because so many people are doing it.  This is my least favorite reason for using a stager, but probably  the most compelling.  Since so many people on the Westside stage their homes, the homes that aren’t staged look worse by comparison.  People have become used to walking into crisp, clean, stylishly furnished homes, so un-staged homes often suffer by comparison.  

     Staging a home won’t transform a home into something it isn’t, but if done well, it will show a home in its best light. When I put on a pretty dress, my nose is still large, but an attractive well-fitting dress takes the attention away from my flaws and diffuses it to my overall improved appearance.   That is, my nose doesn’t look as bad when I’m dressed up because people are focusing on my new dress.   If your home has a challenging layout, good staging will help buyers see a good use of the space, helping to move the focus away from the negative aspects of your home.

     Staging is really just packaging.  Humans, being visual creatures, are naturally attracted to appealing outer coverings.   If we don’t find the surface appealing, we often move on, and don’t take the time to contemplate the substance of a home.  Staging gets people to stop and give your home the serious consideration it deserves, and helps potential buyers to see its potential…and fall in love.

Note: This article appeared in the Palisadian Post on February 9, 2012.

Are Open Houses Really Necessary?

Random strangers march through your home on a Sunday afternoon, while you and your family find creative ways to spend  those three hours during the open house.   You go to the mall, the movies, or take a nap in your car if your children and dog will cooperate.   If your house doesn’t sell right away,  Sunday afternoon entertainment becomes increasingly difficult to find.  (If only you could teach your three year old how to play golf!)  Clearly, open houses are a huge inconvenience.   Is this inconvenience worth it? 

Many people who visit open houses, aren’t real buyers.  Neighbors are usually among the first to visit a new open house.  Usually they just want to compare how their own home stacks up -- and decide if theirs is worth more or less than yours.  But as your neighbors analyze your kitchen remodel and the wisdom of the skylight in your hallway, your realtor can chat with them, and possibly learn information about the neighborhood which you didn’t know or forgot to mention.  These details can often help your agent sell the house. 

Much can be learned not only from neighbors, but from many of the people who visit open houses.  If your agent asks the right questions they can get a sense of how the public generally perceives the strengths and weaknesses of the home – as well as the price.  People always have an opinion about the listing price of a house.  Sure, their opinion may not always be correct, but if your agent listens to all the feedback, they can gain insight about the current overall mindset of buyers.   The Palisades is a well-educated well-informed community, and when significant groups of people here have an opinion, it makes sense to listen.  In 2007, when many people who came into my open houses told me they weren’t buying until prices came down -- well, you know what happened.   Open houses can in essence become like free flowing focus groups reflecting the tenor of the times.

Open houses also can bring in serious buyers who otherwise would never have seen the home.   Many discerning buyers, with limited free time, won’t schedule showings of homes unless they’re fairly certain the house will work for them.   Few homes look good to them online.  Nevertheless these same people have no problem popping into a Sunday open house when they have a free moment, even if the home only marginally appeals to them on the internet.  Sometimes these relatively unappealing homes online, turn out to be winners in person.  Recently a client didn’t care for a home I suggested and didn’t feel it was necessary to schedule a showing.  When the home was open on a Sunday, she dropped in and called me from the home house. “This is my house,” she said on the phone.   And it was.  She loves living in her new home in the Alphabet streets.

On the other hand are the overly optimistic buyers, who think every home online looks perfect.  These people would schedule appointments to see every home in their price range, no matter how clearly unsuitable the home might be for them -- if not for open houses.  In this respect, open houses often help limit the number of pointless showings. 

So the time spent trudging up and down the mall while strangers look through your closets on a Sunday is usually time well spent.  Really?  Even Sundays when few people attend your open house after you’ve suffered through another 3 hour exile from your home?  Those days are not without value, since a continued lack of attendance at your open house may be an indication that your price needs to be adjusted.   This is important information for anyone serious about selling their home.

Sure, I’d rather be hiking through the Santa Monica Mountains on a lovely Sunday afternoon, but I’ve always found that time spent holding homes open is always time well spent.

** Note: This article was published in the Palisadian Post on November 10, 2011. (page 25)

War No More

“I don’t want to get into a bidding war!”  That’s what clients often tell me when they find out a well-priced property they’re interested in may receive multiple offers.  Sure, multiple offer situations can be stressful, but if a buyer makes an offer knowledgeably, with accurate information,  and has a clear game plan, they won’t feel like they’ve gone into battle.

In the years before 2008, when it seemed like homes prices were going up every ten minutes, multiple offers were very common.  It was relatively easy for most people to qualify for some kind of home loan, many people believed home prices would continue to go up forever, and appraisers seemed to support the sale price of most homes in escrow.  In those days multiple offer situations did sometimes feel like war since it was difficult to determine how much was too much.

Times have clearly changed.  Homes prices have fallen from their peaks, and the banks now put up many more hurdles before they’ll approve a loan – yet it’s not unusual to see properties listed significantly under market value.  Huh?  Don’t people want to get the most they can for their homes in this market?  Of course they do, which is exactly why these homes have been listed below market value.  A new listing which has been priced low – and has been properly marketed -- will immediately get the attention of a large pool of buyers and will often result in more than one offer in a short period of time.   If the listing price of the home is truly low for today’s market, the home may often sell for over its listing price.  And quickly.  Again, if the home is properly marketed.

No matter what the situation, buyers, with the help of a good realtor of course, should always thoroughly research all relevant comparable sales data before making any offer on any home.   It’s not enough to just look up a home address on Zillow, as there are just too many variables which statistics taken from public records don’t take into account, such as the condition of the home, the layout, specific location, views, amount of light, true usable outdoor space, upgrades, etc.  Statistical programs can’t take into account the appeal of a home.  Zillow doesn’t drive by every home and rate the location, or go inside and see, for example, that there’s a bathtub in the kitchen, the house is dark as a cave and 90% of the lot is vertical.

The next step is obvious: after a careful analysis of recent comparable sales, buyers should clearly determine their bottom line.  When a buyer understands market values and  knows the top price they’ll happily and comfortably pay for a home, all that really should change when there are multiple offers,  is strategy.  In these circumstances, if a buyer wants their offer to stand out, they need to understand as best they can what terms they are able to offer, which the sellers would appreciate.  So when in multiples the strategy for making the offer should change – but the maximum price should not change.  This top price, arrived at through careful and thorough research,  should remain the same no matter how many other offers a buyer is up against. 

If a buyer follows a focused strategy, does their homework and knows their bottom line, being in multiple offers shouldn’t feel like war –and need not be avoided.

(The above article appeared in the October 13, 2011 edition of the Palisadian Post.)

The Average Days on Market Decreases

It took on average 65 days to sell a single family home in Pacific Palisades this year compared to an average of 97 days last year in the same time frame (Jan. 1 - August 2). That's a decrease of approx. 35% year-to-date. This means that homes which have sold so far this year were priced more "realistically," that is, more in line with current market values, then they were last year.

In light of the fact that homes took less time to sell this year compared to last year, it's no surprise that the average price per square foot decreased this year in the same time frame (Jan. 1 - August 2). The average price per square foot went from $681.60 in 2010 to $653.79 this year, 2011. This is a decrease of $27.81, or about 4% from last year.

Pacific Palisades Average Price Per Square Foot -- January 1 - July 5 -- 2011 back to 2007

I've gone back the past five years to look at the average price per square foot progression of prices again.  I plan to do this periodically -- as I find it to be an extremely interesting indicator of price trends.

Year -- $/sq.ft.
2011 -- $650.68
2010 -- $682.46
2009 -- $708.43
2008 -- $940.97
2007 -- $869.61

New Price

My listing at 17748 Revello Drive has a new price:  $1,365,000.


From the moment you enter this home you see the fabulous ocean views.  The kitchen was recently remodeled and the floors were refinished -- it's a beautiful beach cottage.  The house is close to the beach: grab a chair, head down the street 2 blocks, walk over the Porta Marina footbridge and be on the sand in minutes.  No need to commute all the way to Malibu to for a terrific beach home!  It's right here!

A Six Year History of Average Home Prices in Pacific Palisades

On the front page of the New York Times today one of the top headlines reads: "House Prices Are Set to Hit Another Low." But the housing market in Akron, Ohio is different from the housing market in Pacific Palisades. So what is our reality?

I've gone through all the home sales listed on the MLS from January 1 through today, May 31, for every year since 2006 and pulled up the average price per square foot.

(Note: I went through all the sold listings and excluded all mobile home sales, which are generally included in Palisades statistics -- but since there is no land involved with a sale of a mobile home and those parks have some serious issues, I don't think they should be included.)

Year to date (January 1 - May 31) -- Average Price Per Square Foot:

2006 -- $801
2007 -- $877
2008 -- $953
2009 -- $727
2010 -- $694
2011 -- $657

This shows where we've been. Where we're going is another matter.