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September 23rd, 2011
Does Having Solar Panels Increase the Value of Your Home?
Does Having Solar Panels Increase the Value of Your Home?
As a real estate agent, I get asked this a lot! With the increase in the cost of electricity and the emergence of solar technologies, we are seeing more and more home owners installing solar. As a homeowner (and future solar owner) I would love to say “absolutely”! The truth is however, not necessarily.
If you are considering installing solar in your home, my best advice would be to do it for you and NOT for what “perceived” value it adds to your home. As I write this, I have a solar company installing panels on my home. We interviewed a number of companies and reviewed tons of options for purchase, lease, etc. We ultimately picked the company based on their reputation, number of installs and customer service. We did the math over and over again and we are confident that within 5 years we will have recouped our cost and be on the “savings” side of solar.
Our financial break down, estimates that after 5 years we will save anywhere from $300-$400 a month in electricity bills. As a home owner, I would love to believe that with numbers like that, I could get an additional $20-30K for my home once the solar is installed! Why not, at today’s interest rates a $300-$400/mo savings is at least the equivalent of $80,000-$100,000 in loan. As a real estate agent, I know the harsh reality is that if I had to sell my house tomorrow, I will NOT get $20k-30k more than I would get today (without solar).
If the real estate agent in me had to have REAL conversation with the homeowner me, I would have to tell myself. That in this market, having solar is a wonderful added bonus. Buyers love the idea of having solar and they will pay for it, just not what the “homeowner me” paid for it. The harsh reality is that they may not even give it a dollar value, they might just be willing to give us an offer as opposed to writing on the home down the street.
As our economy stabilizes and we move back into a more healthy economic time, there is a chance that my “solar” home might fetch more than my neighbors “non solar” home, but that is pure speculation and the truth is we don’t really know when the market is going to turn around.
This brings me back to my original point, if you want to put solar on, the real estate agent me, and the homeowner me, say, GREAT! I think it is a great investment, especially if you are planning on staying in your home for more than 7 years. Having solar on your home, has lots of perks, but increasing your home’s value, is not one of them, today!
This might be controversial, I can imagine that the solar companies would disagree and I have seen their marketing that tries to convince you that it does add value. The reality is, that in today’s real estate market, buyers are not willing to spend that much more for a home with solar. This could change, and I expect it will, but don’t buy solar thinking you are going to get a return on your investment if you had to sell.
If you are thinking about adding solar to your home, I would be happy to chat with you about our experience, the companies we met with and why we ultimately chose the one we went with. Just to be clear, I am a FAN of solar, evidenced by the fact that we are installing it on our home. I am just NOT a fan of someone doing to for the sole purpose of “increasing the value” of their home.
September 22nd, 2011
September ~ 2011 Housing Trends Newsletter
SEPTEMBER – 2011 Newsletter Housing Trends eNewsletter
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
Please click here to view the SEPTEMBER – 2011 Newsletter Housing Trends eNewsletter.
If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.
March 26th, 2011
Cash is King… or is it?
Cash is King
or is it?
Lately we have been found that we are competing with “cash” buyers m
ore than ever. What does this mean to you if you are not a cash buyer?
We have all been told that “cash is king” and in some respects it is. Having “cash”, especially in a real estate transaction, does definitely have it benefits. For example, cash allows
a buyer to move quickly, close quickly and to buy a home without a loan contingency, or even an appraisal contingency (although I would not ad
vise the latter). Additionally, having cash says quite a bit about the financial strength of the buyer. It is not an easy feat to have that amount of cash and the
buyer should be recognized and appreciated for the determination and accomplishment of having cash.
From a sellers perspective, be it a bank, or a regular home owner, there is a com
fort in selling to a “cash” buyer. That comfort comes from knowing that they will not have hoops to jump though for the new lender or an appraiser. For a seller that wants a quick, smooth escrow, a “cash” buyer can be a great option. But not in all cases….
It is not uncommon for a “cash” buyer to expect financial consideration (i.e lower sale price) for the “benefit” of working with them. In most situations where there are multiple offers, it is rare for the high bidder to be the “cash” buyer. The truth of it is, it is all cash to the seller once escrow closes. With that being said, every seller will have their own threshold for what they are willing to “discount” the home to for the “cash” buyer. Is cash worth $10,000 in sales price? or maybe $30,000, we don’t really know, each seller is different.
From our experience, sellers are not typically willing to sell at a huge discount just for the “cash” buyer. They may give a small financial break to the “cash” buyer, but rarely is it more than 2% of sale price of the house.
For those buyers who are trying to buy a home right now and find themselves up against “cash” buyer, our advise is don’t get frustrated, stay the course, prepare offers that fair and reasonable based on other comparable sales in the neighborhood. Don’t 
get caught up in outbidding the “cash” buyer, just put your best foot forward and then wait! There are other things you can do to make your offer stronger in order to compete with “cash”.
If you find out you are competing with a “cash” buyer, you can shorten your contingency period, increase your earnest money deposit, don’t ask for seller concessions or a home warranty, etc. These are all options, they are not appropriate for everyone, but can be helpful in some cases.
We find that our clients are up against “cash” buyers all the time, we have successfully negotiated many of these through to closing for our clients. If you want to chat with us about the process and how we are able to help many of our buyers, call or email us today, we are happy to help.
October 5th, 2010
Foreclosure Rescue Scams ~ Don’t Be A Victim
FORECLOSURE RESCUE SCAMS
With the recent rise in foreclosures, foreclosure-related scams have increased significantly. So-called “foreclosure rescue companies” claim they will help save your home, but in reality are out to make a profit – at your expense.
THINGS TO WATCH FOR
• Requests money up-front before providing any service
• Instructs you not to contact your lender, lawyer, housing counselor, family, friends or others
• Requests mortgage payments to be made directly to his or her company or a bank account set up by that person, rather than your lender
• Requires payment only in the form of cash, cashier’s check or wire transfer
• Promises to stop the foreclosure process, no matter the circumstances
• Advises you to transfer your property deed or title to his or her company
• Offers to fill out paperwork for you
• Encourages you to lease your house and buy it back over time
• Requests something to be done immediately and without delay. This includes pressuring you into signing paperwork that you have not had the chance to read thoroughly or do not fully understand
• Offers to buy your house for a fixed price that is not set by the housing market at the time of sale
• Requests you to give a power of attorney
• Requests signatures on a grant deed or deed of trust
• Requests signatures on a document that has lines left blank
• Refuses or fails to put an oral promise in writing
Report Fraud
If you or someone you know has been a victim of a foreclosure-related scam or approached by a scam artist, you may report the incident to the following organizations and government enforcement agencies:
• California Attorney General http://ag.ca.gov
• California Department of Real Estate www.dre.ca.gov
• Department of Housing and Urban Development (HUD) www.hud.gov
• Federal Trade Commission (FTC) www.ftc.gov
• Your local Better Business Bureau www.bbb.org
Resource Tools
• If you are at risk of foreclosure or have already received a foreclosure notice, you should contact
your lender immediately.
• Homeowners also may seek the advice of a reputable housing, financial or credit counselor,
attorney, or other qualified professional.
• Visit the HUD website at www.hud.gov to view its Guide to Avoiding Foreclosure and its list of
California HUD-approved housing counseling agencies.
• The non-profit Home ownership Preservation Foundation has a 24/7 toll-free Homeowner’s HOPE
Hotline at (888) 995-HOPE.
Don’t be a victim of these services. If you are behind in your payments and think foreclosure is imminent, call us today, we will help direct you to the resources you need.
Just SOLD
