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Irvine Home Sellers Guide

Selling Your Home? -To sell Irvine real estate use the best services available! Let Mary Burke & LifeStyles Realty help you sell your home for the Maximum Value! Whether you are moving up to a new home or downsizing due to an empty nest or moving across the country-This is a major event in your life! I am happy to provide you with a Free Home Value and Marketing Plan .as well as an Free in-home consultation. Remember, I am here to help you with all of your real estate needs.For a personal consultation call 949-275-6544or e-mail today!

Tips for Home Sellers

As your neighborhood real estate professional I am  providing these reports to assist you in gathering the information your will need to maximize the marketability of your home and obtain the highest price possible. These ideas are based on collective  experience. I hope you find them to be of value.

Set the Stage before listing your home for sale!

Buyers want the most house their money can buy. Even a large home can seem less spacious than a smaller home with an open floor plan. A clean, well-maintained, and spacious home is not only more marketable, but can often command a higher price.

Before putting your home on the market:

* Get rid of clutter in every area—closets, attic, storage, kitchen cabinets, drawers, bath vanities, shelves-everywhere. You will pack up for your move anyway, so just think of it as starting early.

* Position mirrors in the right places to make a room appear larger. Make sure the mirrors reflect what you want to see more of, such as a favorite painting or a lovely window.

* Choose a light color scheme to help open up a room. White, cream, pearl gray, or soft yellow seem more inviting and open because they reflect light.

* Bulky furniture and too much furniture makes a rooms look too small. Have a moving sale or just store things in the garage or storage.

Part of my expertise is in helping sellers get their home ready for the market and I can offer some simple inexpensive tips to maximize your selling potential. I'd be happy to stop by and share some thoughts with you on how you can stage your home to obtain top dollar. Sometimes it can be as simple as moving or removing furniture and paint that can make all the difference!

Nothing can take the place of direct contact so please call or e-mail with any questions you may have or to schedule an appointment to discuss your real estate plans..


    949-275-6544

    Distinctive Homes for yourLifeStyle!

Call or e-mail Real Estate Broker-Owner Mary Burke today! 949-275-6544

 Thank You for visiting my website. I look forward to hearing from you!

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SHOULD I SELL NOW?

There have been many recent stories on television and in the paper talking about how many homes are for sale now, how it is taking longer to sell, and how some sellers are giving concessions to get their homes sold!

Some sellers are considering waiting to sell their homes in belief that the housing market will improve.  Yes, the market is definitely in the buyer’s favor right now but we are in a multi-year trend.  The number of houses for sale had increased each year for four or five years, but for the first time is declining... Many homes on the market are priced at 15-20% below the previous year and we are in a declining market.
 
If you do need to sell you will need to be competitive with others homes on the market for sale, and that includes price, location, style, amenities and condition.  So if you price the house with others that have newer appliances, roof, windows, furnace, flooring, etc then you would also need to have those features to be competitive.
 
As a seller it is tougher, but as a buyer you are more in the driver’s seat.  Though you may not get quite a much for your current home, your next home will also be priced lower than it would be otherwise.  This year was marked by foreclosures and short sales and the market has lost about 20% of value.  While this means that sellers cannot expect as much for their homes as last year, it also means for sellers that are moving up that their future home will not cost as much as they expected. If you’re planning a move to a higher price range, it should actually be in your favor.  Interest rates are still historically low but now predicted to go higher!
 
If you are planning to move in the next 18 months, then you may want to consider moving now to take advantage of the low interest rates and current price reductions.  Remember that taxes are also calculated on the price of the homes so lower prices could work considerably in your favor!

Currently in Orange County inventory is declining and in some neighborhoods and price ranges there are actually very few homes for sale! If your home is in one of these neighborhoods it could be a good time to sell-Not much competition!

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Pricing Your Home Right

Pricing your home is an art. Ask too little you will sell fast but feel that you may have been able to get more. Ask too much and your home may stay on the market for a longer time and eventually give buyers the imperssion that it is undesirable. Buyers may wonder why the home couldn't attract any interest, a possible sign that something is wrong with the house. Buyers today are very sophisticated and have more tools than ever to gather market information, including home listing web sites that allow them to research the marketplace at the click of the mouse! They almost know better than the brokers what the homes should be priced at! When your home is priced right you will be much more likely to attract interest from more than one buyer.However, if your home is overpriced or reduced, it may sit on the market for a longer time and may give the appearance of being undesirable. Much of the time these homes will eventually sell for less than their value!
The key question is: How do you set the price anyway?
One good way is to rely on your real estate broker! There will be a comparable market analysis which compares recent sales prices of similar homes in the neighborhood to get a feel for what the market will bear. Agents can also bring other knowledge including a sense of how many similar properties are currently on the market. Also compare the amenities of the homes previously sold. . If there are many homes available you will want to make sure yours will stand out! Either by making your price more competitive or following the tips I have listed above. If your home is lacking comparables due to a lack of sales in your area or uniqueness you could get your home appraised.This could take several days or weeks and cost between $200 and $500. It may be a good  investment if there is little data to determine a price. In the end, make sure you base your sales price on some real information about the current  marketplace, and make sure it's in line with what the market will bear. If not, selling your home could turn out to be a much bigger headache!

The five most common mistakes sellers make when choosing a price: 1.Not choosing the right price when a property is first listed. In other words, thinking "we can always come down."

2.Putting the property on the market at an unrealistic price. A property must be priced on a comparative basis to other similar properties.

3.Not relating marketing time to price. Generally, the quicker you want to sell, the less you should be willing to take.

4.Calculating brokerage fees on top of the sales price. A home is worth what it's worth, with or without a commission.

5.Thinking that buyers aren't comparing your home, on a dollar-for-dollar basis, with every other home on the market.


This is a very complicated subject so all home sellers are advised to contact an attorney or CPA to discuss their tax responsibilites for any real estate sale they are contemplating

Capital Gains: !

If you owned and lived in your home for two years, the law is clear: you can exclude from profit up to $250,000 if you are single or $500,000 if you are married and file a joint return.

How are Capital Gains calculated?

Capital gain on the sale of a home is defined as the mount realized on the sale minus the cost basis. The amount realized is the sales price minus selling costs. Selling costs include real estate commissions, legal fees, title and esrow fees, advertising, pre-sale repairs and investments, loan charges paid by the seller(buy-downs, points), real estate excise taxes. To calculate cost basis:

1. Begin with the purchase price
2. Add adjustments: Cost associated with the original purchase of the property. Include abstract fees, recording fees, survey fees, title and escrow fees, attorney fees, real estate taxes owed and inspection costs-but do not include points.
3.Costs associated with major improvements to the property. Major improvements are those that add value to your home, prolong its useful life or adapt it to new uses.
4. Subtract decreases, such as

  • The gain postponed from the sale of a previous home (before May 7, 1997)
  • Deductible casualty losses, such as those caused by natural disasters
  • Depreciation allowed if the home was used for business or rental purposes

The resulting amount is the adjusted cost basis. Subtract the adjusted cost basis from the adjusted selling price(selling price minus selling expenses)to arrive at total capital gains.

Homeowners should keep careful records to prove a homes adjusted cost basis for tax purposes. Keep information related to proof of purchase price and purchase expenses, receipts for improvements that affect the homes basis, and any work sheets used to calculate the adjusted basis of a previous home that was sold.

Capital Gains: Exemptions

If you owned and lived in your home for two years, the law is clear: you can exclude from profit up to $250,000 if you are single or $500,000 if you are married and file a joint return. But what if you have made a profit on your house, but sell it before the magic two years spelled out in the tax law? 
In l997, when Congress enacted this favorable legislation, it had absolutely no inkling that the real estate market would be so hot, and that so many homeowners would make such large profits on their home sales -- even if they did not own their property for the full two years. However, Congress did provide reduced exclusions if prior to holding the property for the full two years, the homeowner had to sell due to a change in employment, health reasons or “unforseen circumstances”.
Effective December 24, 2002, the IRS issued temporary regulations, dealing with home sales within the two year period. According to the IRS, they have established certain “safe harbors”. If the taxpayer falls within one of these safety zones, they will automatically be entitled to the appropriate exclusion of gain. Here are some of the new, but temporary, “safe harbors”: 
  Employment: here, the temporary regulations are quite clear. If the new place of employment is at least 50 miles farther from the residence sold than was the former place of employment, the homeowner who sells his/her home in order to be closer to the job can take a proportionate exclusion of gain. For example, if the homeowner owned the home for only one year, that homeowner would be entitled to exclude half of either the $250,000 or the $500,000 exclusion, depending on the marital and tax filing status of the taxpayer. According to the regulations, employment is defined as “the commencement of employment with a new employer, the continuation of employment with the same employer, or the commencement or continuation of self-employment.” 
  Health: if a doctor recommends a change of residence for reasons of health, this will be a safe harbor under the new temporary regulations. What determines “health”? According to the IRS, “if the taxpayer’s primary reason for the sale is (l) to obtain,provide, or facilitate the diagnosis, cure, mitigation, or treatment of disease, illness, or injury... or (2) to obtain or provide medical or personal care for a qualified individual suffering from a disease, illness or injury.” It should be noted that “qualified individuals” includes family members who are in need of medical assistance away from the principal residence. The IRS made it clear, however, that a sale of the family home merely because it is beneficial to the general health or well-being of the the
taxpayer will not fall within the safe harbor. 
Unforseen circumstances: Congress passed  to the IRS to come up with definitions -- safe harbors -- under this category. The IRS  provided that the following events would be considered “safe harbors”, on the condition that these events involve the taxpayer, his/her spouse, co-owner or a member of the taxpayer’s household: death; being terminated from employment and thus eligible for unemployment compensation; a change in job status that results in the taxpayer being unable to pay the mortgage and reasonable basic living expenses for the taxpayer’s household; 
divorce or legal separation; multiple births resulting from the same pregnancy; 
Involuntary conversion of the property -- such as a condemnation by a governmental authority, and destruction of the property because of a man-made disaster, an act or war or terrorism. Additionally, the IRS kept the safe harbor door open by allowing the IRS 
Commissioner the right to expand these seven items should the need arise –either generally
or in response to a particular situation involving a specific taxpayer. 
These regulations can be applied retroactively. Even if you sold your home after May 7, 1997 and have already filed a tax return for the year in which the sale took place, you have the right to file an amended tax return (using IRS Form 1040X). The temporary regulations provide that the IRS “will not challenge a taxpayer’s position that a sale before the effective date of the regulations (December 24, 2003) but on or after May 7, 1997, qualifies for the reduced maximum exclusion .. .if the taxpayer has made a reasonable, good faith effort to comply with the requirements of (the law) and if the sale... otherwise qualifies under (the tax law).” Taxpayers who believe that they are entitled to claim an exemption because they fall into one
of these safe harbors should immediately consult their tax advisors.
Stay tuned, however; these are only temporary regulations and may -- in the future -- be change

Improvements Pay Back

Some remodeling projects may improve your home without significantly increasing your home's value. Find out which ones pay back. Find a Contractor
Recouping your remodeling investment may be your goal when you sell your house. But when it comes to resale value, all home improvements are not created equal. As a rule, kitchen remodeling projects and bathroom additions almost always
pay back 90 percent or more of their costs. However, finishing a basement usually pays back less than 50 percent. Other improvements fall somewhere in between. 
Consider these payback estimates* for the most typical home improvement projects: 
 
 
Project Cost Payback
Add a new heating or air conditioning system $2,000 to $4,500 100% for heating; 
75% for air conditioning
Minor kitchen remodeling $2,000 to $8,500 94% to 102%
Major kitchen remodeling $9,000 to $25,000 90%
Add bathroom $5,000 to $12,000 92%
Add a family room $30,000 86%
Remodel Bathroom $8,500 77%
Add a Fireplace $1,500 - $3,000 75%
Build a Deck  $6,000 73%
Replace Windows $6,000 68% - 74%
Build a Pool $10,000 and up 44%
Install or Upgrade Landscaping $1,500 - $15,000+ 30%-60%

*Compiled from several published surveys 
Understanding payback value
Payback value depends heavily on the real estate market and prevailing property values. If the market is slow, expect to
see less payback than you would in a fast market. Also, consider the neighborhood: If you remodel your house to twice 
the size of the other homes on the block, it is unlikely that you will be able to sell at double the price. Issues that can 
influence payback value include: 
Type of improvement:Kitchen and bathroom remodeling projects consistently return the most in resale value and almost always help sell a house. Converting a basement into a family room yields the smallest return on the investment. 
Scope of improvement:Projects can be large or small. Sometimes, the cumulative effect of small projects can pay back more in resale value than that of larger projects. Small projects tend to be cosmetic in nature: fresh paint, new doors, 
garden windows, and ceiling fans. Large improvements involve adding or upgrading living space. 
Desirability: Today's fad may be tomorrow's standard. Backyard decks, for example, were difficult to find 30 years ago; now they are common. Decks may not have paid back very much in resale value decades ago, but as decks have become more desirable, their resale value has increased. 
Cost: The price of home improvements fluctuates depending on economic conditions and region. If remodeling costs are particularly high in your area (or home sale prices particularly low), you may not recoup as much on your investment as
you would if costs were in sync with sales prices. 
TIP: If you are financing your home improvements, the best time to apply for a loan is when interest rates are low. The
less you pay to borrow money, the less the total cost of the renovations.

GETTING YOUR HOME READY FOR SALE

1.  Take a New Look!Your home looks good to you, but you will need to take a fresh look at your home... First, 
consider what's called "curb appeal". The outside of your home is the first to be seen. Does it need painting?  Does the driveway need repair work? Is the roof in good shape? How about the driveway? Is the yard neat and trimmed? What 
about the view from the front yard?  Be very critical; your buyer will be. Then, walk inside and size up the interior as
though seeing it for the first time; Imagine your home in a Virtual Tour and what a real estate agent might say about each room. Llook into cabinets, open doors, check out the bathroom. Make a list of the things that might put off potential 
buyers, along with another list of the things that first attracted you to the dwelling and upgrades/ improvements you have made. Remember, the home's become a great place for you, but a new buyer will see things that you don't.
2.  Clear Out the Clutter!!!!Before putting your home on the market, get rid of clutter in every area -- closets, attic storage, kitchen cabinets, drawers, bath vanities, shelves – everywhere. You will pack up when you move anyway so 
just think of it as starting early. Potential buyers are seriously put off by clutter. Don't forget the furniture  when getting 
rid of clutter – Bulky furniture and too much furniture makes rooms look too small, which makes a prospect think your
home is too small. Have a moving sale!  If you just can't bear to part with some possessions, store them in the attic or 
some other place that's out of sight to a potential buyer.
3.  Clean, Clean, Clean! Clean everything - carpets professionally cleaned, scour the bathrooms, go over the laundry room, polish the furniture, wash   the cabinets, windows and coverings, ceiling fans and kitchen appliances. Don't forget
the exterior; paint or pressure wash everything that needs the work.
4.  Repairs Pay Off ! Do what your home needs before the first buyer appears at you door! Patch the roof, touch up
the paint, repair the screens, mow the lawn, trim the edges, weed and water. Inside, regrout in the bathrooms and on tile floors, patch & repair scratches or holes in the walls, and be sure to fix any plumbing problems..It’s a good idea to do 
this before listing the home, but if in doubt as to what is important call your agent early to help you make the important decisions and avoid costly mistakes. An "as-is" sale can save you from all this work, but a buyer will probably assess about twice the price you would have paid for the repairs and deduct that amount from your asking price.
5. Show It to Sell It  To attract buyers, follow some simple tips. Open the blinds and turn on the lights. Open all the interior doors, light the fireplace, play soft music, keep cat litter clean, and if possible remove your self, kids and pets. A potential buyer needs to see the home without distractions.  Make sure your home is available to be seen with as little notice as possible. This can be hard as agents often show up with very little notice, so be prepared. If possible avoid appointment only as you will miss a very large percentage of potential buyers.
6. Get a Sense of the Market   Before you put your home on the market, have your realtor prepare a home market evaluation. This will tell you what homes have been selling for with similar prices and in similar neighborhoods. It is also helpful to tour open homes in your neighborhood to get a sense of the competition. Remember, you don't have to go out 
and buy new furniture just to look like a beautiful new model -- what you want is the feel of that new model -- clean, uncluttered, and fresh. Ask your realtor about Home Staging. This can be an inexpensive way of giving your home a new look without buying new furnishings.After location, the most important item a buyer is a well-maintained home. Many flaws can be overlooked if the buyer knows he can move in without a lot of trouble and expense.
7. Time your sale! The best selling season is  Spring! Summer is the next best time. The hot summer months help sell homes with pools. Many buyers with school age children will want to settle in their new homes early in the summer to give their children time to get used to the change before school starts. By early fall many buyers have left the market.Often we will see a resurgence in October and November but mostly this is the best time to buy a home! Many homes will be reduced in this time period so don't let this happen to you.  Always sell based on supply and demand: When there are more buyers than homes for sale (sellers market), sellers are able to obtain better prices and terms; when there are more homes for sale than there are buyers, sellers may have to reduce their price and perhaps make other concessions to sell their home. Also, keep
in mind that it is easier to sell in a low interest rate environment when more buyers can qualify for a home loan.

Property Tax Schedule

The first half of  Propety Taxes are due and payable on November 1st. and become delinquent after December 10th 
 
January February March
January 1st Assessment Due Date February 1st  2nd Installment Property Taxes Due Date March 1st Taxes on Unsecured Roll Due

 
 
April June July
April 10th  -2nd Installment Property Taxes Delinquent Date
April 15th Last day to file Homeowner's, Veterans, and Senior Citizen Exemptions

June 1st - Beginning of Fiscal Year to June 20th of the following year
 
 
 

July 1st -Properties with delinquent taxes sake to the state 
July 1st - Homeowners to be informed of new values
July (First Monday)- Assessment Appeals Board
July 30th - Last day to advise Homeowner's of New Values

 
September October November
September (mid-month) -Tax Rates Set October (last week) -Tax bills are mailed November 1st -First Installment Property Taxes Due

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Setting the Stage

Every home for sale is a basically a stage set. Prospective buyers come in and try to imagine living their lives on this particular “stage.” When they feel the stage fits the parts they want to play, you've got a sale.

Of course, you may knowt the basics about staging: making sure clutter is removed, keeping the home clean and fresh smelling, keeping the lawn cut and trimmed. But there's a lot more that can be done to help a home sell more quickly and at a higher price. I actively work with my clients to assure each home is staged for maximum appeal.

Here are some ideas to implement on your own:
• Let the sun shine in. And not through dirty windows. Cleaning windows and opening blinds and drapes automatically make a home look more open, brighter, and more welcoming.
• Remove the clutter that isn't really clutter. Old magazines and scattered toys are obvious problems. But just as distracting are the various knick-knacks and collections that people accumulate over time. Get clients to pack up the adornments and books on shelves and tabletops by half at least. And, make sure every single framed photo is put away. Shoppers can't see themselves living where the current residents are very much in evidence. The finished product is a home that looks more open and spacious, without the strong stamp of the present owner's life.
• Rearrange living spaces. Sometimes simply repositioning a couch can make a world of difference in a room. Look at traffic patterns and remove obstacles along with excess furniture. Take leaves out of dining tables and reduce the number of chairs. When selling a home, less is more.
• Cut back on the green. Make sure windows and entryways are not obscured by overgrown shrubs. Otherwise, you're hiding the home from the street as well as reducing the light that comes in.
• Invest in the future. Consider investing 1/2 of one percent of the home's asking price in staging. Then use that money to paint tired walls, remove out-of-style wallpaper, or store worn out furniture and bring in rentals. The money invested can actually reap returns of 200% or more.
• Don't let a house sit totally empty. If you can't leave a few token pieces of furniture behind, find some. Ask your realtor to guide you and possibly assist you in finding decorator items to borrow to add some warmth . A silk plant, simple chair and occasional table can ad a lot of character to an empty room.
• Go professional. If you're not comfortable making decorating decisions there are several companies that specialize in Home Staging and can turn your home into a "model home" .

Ask Mary about her free in home consultation before you list your home!

Working with a professional Real Estate Agent There are many advantages to working with a professional real estate agent when you are looking for a home. Mary is a licensed real estate broker and has been serving the needs of home buyers in this community for years. You can trust  our proven team to service your real estate needs,whatever they may be. 
Call Mary today! 949-275-6544