Special Considerations to Sell Real Property under Guardianship or Conservatorship

A portion of my business involves helping attorneys, fiduciaries, and family members sell real property under special circumstances, such as guardianship, estates, complex family legal situations, and even short sales or foreclosures. In my experience with court-appointed guardianship (or conservatorship, depending on the jurisdiction), here is a list of unique considerations requiring proactive, experienced handling:

• These cases are often court-appointed, so the contract of sale for the real property will require review by designated "interested parties" and court approval prior to settlement. I add in time for this step through a third-party approval contingency for the seller.
• There is no historical knowledge of the property condition or improvements.
• The property will be sold in a true as-is condition, with all as-is provisions allowed in that jurisdiction; this means no repairs, no seller credit, no full property inspection.
• There is almost always a lack of records for property maintenance and even pay-off records for past deeds of trust or mortgages. Occasionally we cannot locate the note of satisfaction for a lien placed on the property; thus we like to get title attorneys involved early in the transaction (often before listing the property).
• The property is often priced below market value, due to the as-is nature of the sale; how far below market is determined by property condition and other financial considerations of the seller. The property can still be exposed to the market to substantiate the market value to the court.
• Often there are limited or non-existent funds for property preparation prior to going on the market. Note that in future blog posts, I will discuss options to address this funding gap.
• The properties are typically distressed with deferred maintenance, with poorly functioning or broken systems, and with outdated kitchens, baths, flooring, and other decorative elements.
• Often there is extensive detritus inside the home and across the yard, sometimes including abandoned pet waste or pest infestations and their associated odors.

As an attorney or fiduciary, or even family member, with responsibilities for these type of real property sales, consider the advantages of working with an agent, like Lisa LaCourse, who is familiar with these and other related challenges.

5 Things I Love About 10703 Lexington Street

I love the details, the unexpected, the unique elements of houses I am selling. Here are the 5 Things I Love about my new listing at 10703 Lexington Street, Kensington, Maryland.

1. I love that the front door is a vibrant color both inside and out. This makes the house stand out from the crowd and gives it personality and whimsy.

 2. In addition to abundant kitchen cabinets with a custom glaze, I love the use of the end space for cookbook storage and display.

3. While so many Colonial houses in our real estate market in Montgomery County, Maryland (not to mention Washington, DC, and Prince George's County, Maryland), have typical brass chandeliers in the dining room, I love that this homeowner added a modern flair of a crystal chandelier without being too trendy or gaudy.

4. Taking advantage of an 8 foot by 5 foot nook on the upper level landing, I love how these sellers tucked in a desk and bookcase, even using an applique decoration and a clear desk chair, to create a workable home office space.

5. While I truly love many aspects of this home, and I had a difficult time finding only 5 things to highlight in this post, I do love how they landscaped the gardens to create a lush, peaceful environment.

These types of details and carefully planned touches make a house into a home.

3 Ps for Selling

Although I did not study business at school, I have heard that there is a common set of 3 Ps for marketing. I'm not sure what they are, but I have my own series of 3 Ps for selling a home. I share these with prospective seller clients when discussing their home sale, and today, with you.

Preparation
When working with seller clients in preparing a home for sale prior to putting it on the market, my goal is to focus on those activities which address minor yet obvious repairs and which create the impression of a home that is clean, tidy, homey, safe, and well-maintained.

Proper preparation will be greeted positively by buyers when they see the home.

Presentation
In my approach, presentation means marketing and other outreach activities that aim to reach the most likely buyer for the specific property. Preparation can involve staging (light rearrangement of furniture and personal property, bringing in furniture and art to a vacant listing, or even removing items and excessive decoration or personally identifiable items), advertising, planning a welcoming and convenient open house, completing the most thorough and descriptive listing in the multiple listing service as possible, and having readily available at the house some information useful to buyers and their agents.

This last item in my best practices is to have a binder at the house with neighborhood details (recreation, shopping, mass transit, commuter routes, and entertainment opportunities), a paper copy of the disclosure package, floor plans, a list of updates with dates (even paint colors if available), any conveying warranties and service agreements, and even requests for potential offers such as submission guidelines.

Proper presentation means your listing will reach as many qualified buyers and their agents and entice them to add this house to their tour list or open house schedule.

Price
I typically begin price discussions with seller clients by suggesting to set the initial asking price at or very near the market value as determined by a detailed comparative market analysis (CMA) at the time of listing. For pricing a house, we look at the recent sales as well as the competitive houses on the market currently, as those will be the ones that the most likely buyer will see during their home search, too. Regardless of the state of the market (buyer's market, seller's market, or neutral), I recommend sellers offer the house at a price at which buyers and their agents will see value and want to write an offer.

Proper price will give buyers the incentive to put an offer together that they believe will result in a ratified contract.

These three Ps allow for focus at the time of sale and a simplified approach to conversations with seller clients.

Ideal Market Reach

I receive the letters in the mail just like you. The local builders are back in full force, and they prey on uncertainly. They focus on everything negative in big bold "NO" letters. They scream at you to convince you that selling directly to them, off market, is the only logical choice and in your best interest.

There is a market for less than perfect homes, "fixer uppers" even. The open, free market with expert presentation and targeted, multi-faceted marketing opens doors to as many well-qualified, interested buyers as possible. A measured, thoughtful approach to preparation, which does not have to be expensive or particularly disruptive, can help reach your most likely buyer who actually may want to live in your home for as many years as you have. Your own advocate, who has your needs in mind, can guide you throughout the selling process to a successful settlement.

If you are considering selling your home directly to a builder, I strongly encourage you to also meeting with a Realtor who can give you another option to consider. Explore options, protect yourself, open the possibilities, then decide.

Real Emotions

I was planning on writing today about the emotions that installing a for sale sign in the yard can evoke for sellers, their children, and even their neighbors. That sign is a symbol of change, and change is challenging. One of my daughters said that when the sign went up in front of our old house, she knew it was real and she was saddened.

Today, I was further reminded of how, in my job as a real estate professional, I often encounter people during emotional times. Selling a house, many have written and researched, is right up there on the emotional index. Well, there are other instances when clients need my help. A horrible event occurs and one client can no longer live in the rental we found. Another client receives disappointing news and their anger spills over. And I take a deep breath and work on a solution that can hopefully help.

And even with a sign installation, in my experience, talking with the client about where it should go and to prepare them for its appearance can ease a touch of their stress.

Curb Appeal

Curb appeal is more than the color of your shutters and the architectural features of your home. For a relatively small cash investment, you can spruce up the curb appeal of your home, whether you are staying or selling.

I work regularly with landscapers who will plan within a client's budget to spruce up the garden and general appeal of a property. For the outside of your home, remember this analogy.

Decluttering is to the inside what weeding and trimming is to your home's exterior.

Weed, trim, rake, edge, mulch (but not too much!), then fill in with some plants. Perennials which will add to the beauty of the yard for years to come are the best, even if you plan to sell. Your future homebuyers will appreciate your efforts. And even quick fill-ins with seasonal annuals: think pansies and tulips in spring, petunias and geraniums in the summer, mums in the fall, and holly and greenery with berries in the winter.

If I am customizing the house preparation checklist for a seller client, landscaping is always part of the input.

QOTD: Process

This quote of the day is from my favorite Washington Nationals announcer, FP Santangelo. On August 26, 2014, top of the 7th inning playing at the Philadelphia Phillies, one out, bases loaded, up to bat was Kevin Frandsen of the Nats. FP was talking about how, as a young hitter, you might be focusing on the result, say a grand slam, and not the process. Instead, as a veteran, he stated you let the pitch dictate the at bat:
  
Results take care of themselves if you stick with the process.

Hold a beat, then Frandsen hits an RBI single!

As a real estate agent, I believe in my processes, both in managing a transaction, leading buyer clients through their home search and contract, helping a seller with their property's preparation, presentation and pricing, as well as my client prospecting activities. It is difficult sometimes to lose sight of the process, but the results do come. They come in the form of the perfect house for a newlywed couple, the ideal inspection contingency result for a single buyer client, and the ideal house prep and presentation to the market for a seller who needed a quick sale.

Fan of Roget

Call me old fashioned, but I do actually turn to my Roget's Thesaurus when writing descriptions for my listings, whether for online details or my property brochures. I was reminded of the importance of language last week when my sixth grader, Julia, came home after the English class word funeral. Happy, sad, little, big, said, mad, very, small... RIP from sixth grade English onward.

I wish more Realtors took the time to use descriptive language to paint a picture of the home they are selling. With accuracy of course and minus the hyperbole, prospective buyers and their agents would appreciate their efforts, and to be honest, it makes the work more interesting. And you will do your sixth grade teacher proud.

QOTD: Price

Another Quote of the Day from my daughter, Lucy, age 14.

Mom, I've decided that the most important price for a house is the first one.

Having a mother as a Realtor rubs off on a kid, I guess. We had been driving home from an open house; I bring one of my daughters along if I'm previewing properties or just staying on top of the market and I want some company. The house we had just seen had had a price reduction and she went on to say how, once the seller lowers the price, then buyers think they have even more chance to negotiate on price. She is a freshman in high school. She understands market conditions and negotiating position.

In a rising market with conditions more favorable to a seller (based on housing supply, interest rates, and other economic conditions), for the right property, "testing the waters" with a leading edge price might be a winning strategy. However, if minimum time on market, optimal contractual terms, and potential competition for your property are key success factors in the sale of your home, there are other "at market" or conservative pricing strategies to discuss with your real estate adviser and agent.

Let me help you match your goals with the right pricing, preparation, and promotion strategies for the sale of your house.

5 Things I Love About My New Listing at 3315 Pendleton Drive

My newest listing is a contemporary house located just one mile from the Wheaton Metro Station on the Red Line and all the shopping near there. It is also around the corner from Wheaton-Claridge Park and just a short drive from Wheaton Regional Park. My prep team and I have been working hard to bring this home to market today, so I wanted to share the 5 Things I Love most about it.

1. The impressive brick fireplace, which is a dominant architectural feature of the property. In researching the history of the house and its Hammond Hill neighborhood, I discovered that the brick was reclaimed from older homes in Alexandria, Virginia, during construction.

2. The original wood cabinets. There is something comforting and warm about their patina, and they just go with the house.

3. The yard, with its size (9,176 sq ft), its privacy, and its peacefulness.  While prepping this property for sale, I discovered a Star Magnolia tree, Forsythia, Eastern Red Bud, Hemlocks, Pines, and Cedars.

4. The vaulted ceilings. Design in 1950 by architect Charles M. Goodman, famous for his design of the original National Airport terminal in Washington, DC, along with many other residential developments, every room in this cool mid-century modern home features angles and volume.

5. The windows, walls and walls of windows. This home is flooded with natural light and one feels connected to nature from the inside. It is a cheerful house.

I hope whoever buys it loves this home as much as I do. I am holding public open houses on Saturday, April 26, 2014, 2:00-4:00 p.m. and Sunday, April 27, 2014, 1:00-4:00 p.m.  Please come to tour this home in person and learn more about its history and potential.

Sunny Outlook

A sunny front door leads to a sunny outlook after a long, cold, snowy winter.

Something as simple as painting your front door can make all the difference in curb appeal, not to mention how you feel when you walk into your home every day.

The Real Estate Triangle

I have a tool, adapted from my Project Management toolkit, that I use to help explain real estate choices and decisions to clients. I decided to share it in a blog post after receiving a lot of terrific feedback about it from colleagues at my brokerage, McEnearney Associates.  This is the Real Estate Triangle of Triple Constraints. Of course it is just a model, but I believe it is an important one that reflects realistic constraints and relationships between different home purchase (or sale) factors.

For any given price range, or maximum purchase price, there are three main factors at play: Location, Condition, and Size & Features.  There are physical and market forces that limit the houses available in any given location, and this triangle of factors must be in balance for a given price.  It just is not possible to want a bigger house in better condition and located in a more desirable (or popular) neighborhood for a given price, if perhaps you've seen everything in your price range in a given area.

Another way to think about this triangle is: sometimes you need to sacrifice the condition (maybe everything was not upgraded last week) of a house to get the size and features you want (number of bedrooms, size of yard, finishes in the kitchen); or vice versa (condition is key, so the house may be smaller).  Also, a buyer should share with their agent what is their driving, priority factor in their search.  Sometimes a buyer might want to stay in their current school cluster, or they want to walk to the Metro or to shopping and recreation, so Location is their priority "leg" on the triangle. To get that priority feature, they may need to sacrifice on size depending on their price range.

I also use this tool to demonstrate to sellers how potential buyers will perceive their home based on comparables in their area, price, condition or size. If their house is a larger home compared to others in the same area and in similar condition, they may sell at a higher price. But if their home's condition and features (finishes and upgrades for example) are lagging behind others on the market, the price will be affected.

I am always happy to meet with buyers and sellers for an initial consultation about their situation and this is just one example of the tools and topics I share.

The Not Spring

I was going to write about spring springing forth this week.  Here are my daffodils, seen peeking through the soil on Saturday, March 15, 2014.

  

And here was my backyard this morning.  Happy St. Patrick's Day.  I guess our spring market will need to wait, or be put on haitus, for a few days. The silver lining: if you were thinking about selling your house this spring, you have a couple more weeks to talk to an excellent Realtor, like me, about getting your house ready to put on the market.  You'll still get a jump start on others if you get started today!

QOTD: Flooring

Today's Quote of the Day comes from my almost 14 year old daughter, Lucy. We were touring houses this past weekend to see comps for an upcoming listing I have in the works and she made a very interesting observation.

The floors really say a lot about a house.

She went on to explain that one house, which had beautifully refinished hardwood floors really shined and she thought better about the house overall because the sellers had taken such good care to present the floors well.  Another house had hardwood floors which were not only very dirty but uneven in places, paint-stained, and overall very scuffed.  She thought that house did not show well.

I've written before about some guidance for open house preparations which did highlight cleanliness.  I'm working now on a new seller checklist for Open House Prep (I have my own Open House Preparations Checklist, but this new one will be to give to my seller clients).  I'm happy to share with my seller clients in the future.

I just thought it was an interesting observation that Lucy had.  What stands out for you about houses and how do those things reflect on your overall impression of the home?
 

Mortgage Limits for 2014 Remain Steady in MD & DC

For those in the market for a new house now, that search may stretch into the new year.  There was some talk, and concern even, among Realtors and those in the mortgage industry that there may be a reduction in the maximum loan limits for loans underwritten following standards of Fannie Mae and Freddie Mac.  Great news!  The loan limits for conventional financing are remaining fixed into 2014 in our area (and most of the country).  In Maryland and DC, here are some relevant caps for high balance conforming loans.

Montgomery County = $625,500
Prince George's County = $625,500
Frederick County = $625,500
Anne Arundel County = $494,500
Talbot County = $417,000
Washington, DC = $625,500

And for my friends and family in Wisconsin, all counties in that state have the $417,000 limit. If you would like to know your loan limits if you live elsewhere in the US, I can let you know based on your state and county.

By the way, I have a terrific listing for a house for sale in College Park, MD, listed at $274,000, which is in Prince George's County, through my brokerage, McEnearney Associates, Inc; main office: 202-552-5600; or email or call me directly.

House Sale Prep Checklists

For each seller client, I create a customized House Sale Preparation Checklist.  While of course some of the items on the list may be universally helpful to sellers, I take into consideration that particular client's situation, their means and time available, and the most likely buyer of their house in making suggestions to them about getting the property into optimal showing condition.

Recently I worked with some seller clients whose house was already in terrific condition and who are quite handy and comfortable with home improvement projects.  I started with an initial one page list with these categories:
   * POD - rent one and start filling it with...
   * Sorting/Clearing Out
   * Projects [minor household repairs]
   * Early Staging

Once they finished that list (in 5 days!!), I went back to their home with my notepad in hand and made a second, final list (typed and emailed by that evening).  This one was more detailed and led up to the time when the professional photographer I had hired was scheduled to arrive.  This "Stage 2" checklist included items such as:

   * Add to the POD (and get the POD picked up)
   * Sorting/Clearing Out [the finer points]
   * Yard Word/Exterior
   * Projects
   * Final Staging
   * Pre-Photo Little Things

For another seller client, I created a room-by-room list rather than by categories, because that was an easier way for her to work through her house preparation tasks.

My best practice for sellers is helping organize and plan with you to make your house shine for its potential buyers.
 

5 Things I Love About My New Listing

Today I am starting a new series called "5 Things".  I will feature five things that I love about some real estate topic, in this case my wonderful new listing in College Park, Maryland.  These 5 attributes of this particular home illustrate how small touches in a home can add to its overall appeal and how sellers can help prospective buyers feel "at home" as they tour through a house, even during their first visit. Also, these details are difficult to cover in a one page property brochure or the 400 characters we are given in the listing remarks section of our multiple listing service, so I wanted to share even more about this house in other creative ways.

1. On the left, I call this the Perfect Pantry. By adding simple white contact paper as part of their house sale preparation checklist, this pantry shines as tidy, useful, pleasant and convenient storage in the kitchen. For homes of this size and price point, this pantry is a gem.

2. On the right, just off the kitchen along the stairs to the basement, is even more storage. I adore built-ins and so do today's buyers! The previous owners added shelves to the old back door when they built an addition, and this extends handy space, too. Bonus: no perilous reaching; there's a landing right in front of these shelves.

3. Staying in the kitchen for another favorite thing, this 5 burner, stainless steel, gas range is as gorgeous in person as it is in this picture. Although the LeCreuset French oven does not convey with the house, of course all the appliances do. Upgraded kitchen appliances make such a huge difference to buyers today (call it an HGTV influence) and this beauty is joined in the kitchen by a French door refrigerator, a stainless steel dishwasher and the over-the-stove built in microwave (peeking in at the very top of my photo).

4. The crown molding and trimmed doorways in the dining room nicely frame the passages to kitchen and living room. They also give a polished, upgraded, lovely feel to the home.
 
5. An enclosed porch off the back of the house really does extend the living space since this one has outdoor carpeting, three full walls of glass windows with screens, lighting and a ceiling fan. This is a very pleasant spot to sit and relax and even dine, as there is room for a cafe table and chairs.

To summarize the 5 Things I Love About My New Listing:
1. Pantry
2. Built In Shelves
3. 5 Burner Range
4. Crown Molding
5. Enclosed Porch
 
Although I have not posted in a while, I think about blog topics constantly and have quite a few stored for the near future.  So stay tuned and be sure to follow or subscribe to my blog so you don't miss any useful and fun topics.

Top Ten Tips for Open House Prep

For an open house, to the general public or to other Realtors, your house does not necessarily need to look like a photo shoot for the spring Pottery Barn catalog (although that would be terrific if that were the case). And I'm not talking about a bowl of lemons on the kitchen counter or baking cookies in the oven. No, those are advanced topics.

Rather, based on just four broker open houses I attended earlier this week, these are some basic steps I recommend for both agents and homeowners trying to sell houses.  I am not suggesting you try to transform your house into something it is not; it should simply be the best it can be at that time.

10.  Throw away the empty pizza box from the stovetop.
9.  Grab two or three large black garbage bags and walk through the house for 15-20 minutes, throwing away obvious trash and junk.
8.  If it is going to rain, don't leave the windows open.
7.  That said, if possible, air it out ahead of time; food and pet odors can be overwhelming.
6.  Sweep.
5.  It's handy if your azaleas are in peak bloom; as an alternative, some pansies might be nice.
4.  Vacuum up the dead flies from the floors and window sills.
3.  At least put your laundry in the hamper.
2.  No one wants to see your dirty dishes.
1.  Get the house ready like someone is coming to visit, because they are.

Prospective buyers and their buyer's agents will thank you.

Dogwoods and Daffodils

Spring has sprung here in Washington, DC.  Of course you'd never know it by the temperature today, though we should not complain about waking to temps in the 30s; family and friends in Wisconsin are being treated to snow today, tomorrow and Monday!

I mean the spring real estate market of course.  Contract activity has picked up; multiple offers are part of the story in some neighborhoods and price ranges. Supply is lagging behind though!  Inventory in Montgomery County, Maryland, is so low that over 60% of properties going under contract in February 2013 were on the market for less than 30 days. The total number of active listings decreased 37.1% compared to February 2012, with only a 1.5 month supply of homes in the county overall.

In our area, homeowners often want their beautiful dogwood trees and daffodils to be blooming before they try to sell their house, so it looks its best. This year, perhaps more than the last few years at least, getting a jump on the spring market may prove to be a successful strategy. Note that price and preparation, plus expert marketing, advertising and promotion to your targeted buyers are still critical. I can help with all of those factors if you are considering selling soon.  I am ready for your call, even if the branches on your trees are still bare.

Dare We Say, Sellers Market?

It's not official, but times are shifting here in the DC Metro area. Pockets of Montgomery County, Maryland, and some neighborhoods in Washington, DC, are seeing signs of a sellers market. Now, other agents in my office, our McEnearney managing brokers, and I do not necessarily see the situation running amok, but inventory is incredibly low and has been for an extended period. We discuss buyer client needs frequently in weekly business meetings, trying to find upcoming listings from other agents in my office. In some neighborhoods, there are many buyers for each house or category of housing.

Might more sellers emerge, ready to make a move themselves? If you are considering a move or just plain need to, for whatever reason, give me a call.  I can give you some data and input on your specific situation, house, and neighborhood.  Even if I don't specialize in your area, I can refer you to someone who does. There are many ways I can help.