Hi Desert Real Estate Forum

I recently received a “red alert” from the California Association of Realtors regarding

AB 2678. A “red alert” is a call to action for Realtors to contact politicians in order to express our opinions on upcoming legislation. After reviewing AB 2678 I felt it was important enough to share with the consumer in hopes that you will get involved as well.

Assembly Bill 2678 (Nunez) proposes among other things that all homes and commercial property in California have an energy audit at point-of-sale and that mandatory energy efficiency investments be made. While this may seem like a great idea and many, myself included, applaud the goals of this bill, it appears to fall short of its own objectives.

This bill should be strongly opposed on 2 important points. First, this bill will have an enormous negative impact on housing affordability in California. Requiring point-of-sale improvements has the potential to add thousands of dollars to already costly California real estate transactions. Who will pay for this? It is you the consumer as the costs of the audit and improvements will be added to the sales price of the home costing the buyer thousands of dollars, or be paid from the proceeds of the seller, costing the seller thousands of dollars. The mandated audit alone may cost up to $400. According to the California Association of Realtors, every $1000 added to the cost of a home disqualifies 26,000 potential home owners from purchasing that property. In a declining market the last thing a buyer or seller needs is a more costly real estate transaction.

Secondly, research shows that only 22% of the properties most in need of energy efficiency retrofits will actually be sold by 2020. This bill calls for the formation of a new government agency to oversee an expensive yet ineffective program that will not correct energy efficiency issues in a majority of the homes most in need.

It looks like our legislators have again resorted to throwing money and bureaucracy at a problem in order to prove they are doing something when, if fact, all they are doing is punishing the consumer.

What can you do? Contact Assembly Member Paul Cook and express your opinions. You can view the bill and express your concerns at Assemblyman Cook’s website http://republican.assembly.ca.gov/members/a65/index.aspx?page=home

It appears as th0ugh the housing slump has finally started to effect the rental market here in 29 Palms.  Over the past month an increase in rental activity as well as rental rates has been seen.  What does this mean to you?

1.  The competition for quality rentals will increase.

2.  The availability of quality rentals will decrease.

3.  Rental rates will increase.

So, if you are shopping for a rental, make sure to put your best foot forward.  If you are currently considering moving to another rental, make sure to procure your new home prior to giving notice on you current home.

Why isn’t my house selling?

If you are like many seller’s in this market, you may be wondering why your home is not selling. There are many reasons homes don’t sell, but by far the most common reason for a home to sit on the market is price.

Many home owners with homes currently on the market either bought during the “boom” period, or refinanced their homes. This leaves the home owner with less equity (if any) in the home now than during that period of appreciation. It is important to keep in mind that the amount owed on a home has no bearing on the market value of the home.

Ask yourself, “how does my home show?” The biggest influence on a buyer is the first impression. Take an afternoon and drive by some of the comparable properties in your area and see what the competition is doing. Is the yard clean and welcoming, or is it accented a broken down vehicle surrounded by wild flowers (weeds). How does your roof, swamp cooler, fascia, and fences appear? Spending a little time and money on these items will greatly enhance marketability. You cannot sell your home if no one goes inside.

After you have now gone out and spruced up the exterior of your home it is time to focus on the inside. The biggest interior detractor to selling your home is clutter. Since you will be moving when the house sells, get a jump on your packing and get rid of many of your personal items, collectables, and tone down the “I love me” wall (the military guys know what I mean). The living room with the big screen TV and 2 sectional couches may be great for watching the games, but takes up way too much space and makes your living area seem smaller than it actually is. Removing clutter is especially important in the kitchen, the buyer cannot tell how much counter space you have if there are too many appliances displayed. Box up the ones you don’t use daily get them into storage. This will give the appearance of space. In other words, give the buyer a blank canvass to work with.

Many sellers feel that their home is “special” and therefore worth more than a comparable home. While many upgrades, color choices, amenities, etc may fit the life style of the current owner, these items do not always translate into value at point of sale.

For example, if your prospective buyer is not a Raiders fan, the black and silver room will probably not help the sale. Neutral colors (whites and light browns) are very pleasing to the eye and give the home an open and warm feeling.

Finally, if you have pets it is important that there are no signs of pets when the house is shown. Not all buyers are pet lovers, some are even allergic. Pet smells, stains, hair on furniture, toys and beds, and droppings in the yard are all big negatives to most buyers. If practical, have the pets removed during times of showings.

I have covered a lot of items and it may all seem overwhelming but the market is very competitive and anything you can do to make your house more attractive will pay dividends in the long run.