Deadline for appealing your property tax is November 30, 2011

Do not pay for this service; there are many scammers out there that charge HUNDREDS of dollars for this.  Many professional customer service real estate brokers will help you gather the necessary data for free or you can do this on your own. 

You can file the form (below) online or by printing out the form below by going here 2011-decline-in-value-review-application

If you have any questions on this and you live in the areas shown in the home search sections below, then let me know I will help you.

Also at the site above, you may find other forms helpful to your property tax situation.  Let me know if you have any questions and again, I will do my best to help.

Here are some general guidelines to keep in mind when it comes to making an appeal to lower your property taxes.

• Homeowners should keep in mind that property taxes do not always correspond with home values, because local governments typically don’t measure values every year and some have limits on annual property-tax increases.
• As a result, current property taxes might reflect the home’s value when the market was healthier. According to the Congressional Budget Office, property-tax adjustments lag behind changes in home prices by an average of three years.
• Although homeowners cannot change their property-tax rate, which is set by the local government, homeowners can get their assessment lowered if they appeal to their local assessor.
• One key to a successful appeal is fact checking the assessor’s work. About half of all successful appeals come from homeowners pointing out an error in the assessor’s description of the home, according to one property tax expert.
• During the appeal process, which is similar to a less-formal court hearing, homeowners may present their case to several local officials or representatives. The simplest way to convince officials that a property has been incorrectly valued is to provide evidence of the sales price of homes that are comparable to the property being discussed. This should include square footage, amenities, and neighborhood characteristics. Sale documents and photos of the property in question, as well as the comparable properties also should be brought in.
• Homeowners who have made improvements or substantial changes to the property should be cautious about appealing an assessment though, as it could have negative effects and actually increase the property’s value and, in turn, the property taxes.

It’s always a balancing act in the crystal ball business

Just the other day I wrote in this blog that even if you believe sale prices are going lower, given that interest rates are sure to climb (the Fed can’t keep printing money forever without consequences), it may still be financially prudent to buy now versus waiting for prices to bottom.

First of all, are you really that good at predicting tops and bottoms in any market?  Tell me, how’s your 401K doing?  That will give you a clue as to your prognosticating abilities

Secondly let’s make a couple of assumptions using a couple of facts.

FACTS

• Fact one: the median price of a home sold on the Palos Verdes Peninsula in the last 12 months was $1,133,425
• Fact two: a 30 year fixed rate mortgage is around 4% right now (if you pay a point or so)

ASSUMPTIONS

• Assumption one: Home prices will fall another 10% before they bottom, so now the median price of a home is $1,020,083
• Assumption two: What with the Fed printing money, interest rates go up to 6% (historically still low, but higher than now)
• Assumption three: You are injecting a 25% downpayment on your purchase

So what happened … by waiting, you saved $113,342 in the price of the home, but guess what, you ended up, even with a lower priced home and lower loan amount, actually paying $275,293 more in interest payments over 30 years for a net loss of $161,951. 

Ahh, but I hear what you’re saying … “George, I’m not going to own this house for a full 30 years”.  Ok, that makes sense, so what happens after just 10 years.

The results are not as dramatic, but you still lose money by paying a lower price assuming interest rates go up.  Be honest, do you really think interest rates will stay this low?  Look, I’m no better than anyone else at predicting the market.  I’m just suggesting that if the right house comes on the market, negotiate hard for it, don’t wait.  Own the home now at an interest rate you may never see again.

For more information, visit http://www.homeispalosverdes.com

30-Year Mortgage Rates Drop Under 4% Again

For the second time this year, the 30-year fixed-rate mortgage dropped below 4 percent and continues to hover around record lows, Freddie Mac reported in its weekly mortgage market survey.

Yet overall, “fixed mortgage rates were little changed this week amid a mix of economic data reports,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

Here’s a closer look at mortgage rates for the week ending Nov. 10:

• 30-year fixed-rate mortgages: averaged 3.99 percent with an average 07 point, down from last week’s 4 percent average. The last time the 30-year fixed-rate mortgage dropped below 4 percent was Oct. 6 when it averaged 3.94 percent. Last year at this time, 30-year rates averaged 4.17 percent.
• 15-year fixed-rate mortgages: averaged 3.30 percent with an average 0.8 point, dropping slightly from last week’s 3.31 percent average. Last year at this time, 15-year rates averaged 3.57 percent.
• 5-year adjustable-rate mortgages: averaged 2.98 percent, with an average 0.6 point, rising from last week’s 2.96 percent average. A year ago at this time, the 5-year ARM averaged 3.25 percent.
• 1-year ARMs: averaged 2.95 percent with an average 0.6 point, up from last week’s 2.88 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent.

In what price range can you expect to buy a home in Palos Verdes

The latest information is best described in this chart.  To see larger picture, either click the graphic or go here Palos Verdes real estate price ranges

The price ranges are in 200K increments, so as you can see, there were almost 80 sales in the last 6 months of homes in Palos Verdes in the $750,001 to $950,000 price range.

Is it safe to buy or sell Palos Verdes Real Estate

Have YOU signed up for my other proprietary charts? If you haven’t and want the link, please go to this site to agree to the conditions and sign up. The conditions are quite simple – you must agree to keep the links and contents private for your use only and not share the data in any manner whatsoever without my express written permission. http://www.homeispalosverdes.com/content/article.html/1396074/real-estate-trend-charts

The BIGGEST CHALLENGE for sellers now is pricing their homes correctly. Now just because the market is soft doesn’t mean that one should not buy. But if you’re a buyer, you have to be careful and you have to buy “right” and for the “long term”. Interest rates are low, incredibly low and even if you bought today and prices dropped a bit more, you will still likely be just fine long term. Why? Two reasons.

1) The market will recover. I’ve been in real estate for 30 years. I saw what happened in the early 80s and the early 90s and saw the market recover during both down cycles. And I heard the same thing then that I do now. “Oh, prices will never be as high as they were in ever again”. You know what? They were, and they exceeded those levels. And they will again.

2) Even if prices drop some more, which I think they likely will, buying today is likely still ok, as what if interest rates go up a percent or more in the next year or two, which I think they will (the Fed can’t get away with printing money forever). Higher interest rates on a lower priced home may still mean higher ownership costs for the long term. So you may be better off buying now.

But if you’re a seller now, OR if you know someone thinking of selling … you have to know this. Let me put it this way. You’re standing in your yard ok? Now, someone is up on the roof with a really, really sharp sword and drops it from the sky. Are you going to catch it with your bare hands?

It’s an old stock broker’s adage … “No one likes to catch a falling sword”. Same with real estate, the only way you’re going to sell your house in today’s market is IF the buyer perceives themselves as being compensated for the risk of buying in a soft market; one in which prices in 6 months to a year are more likely to be lower than higher compared to now. Does that make sense? So do your friends a favor … those that are thinking of selling … tell them to get real and hire a broker like me that will tell them the TRUTH.

And what’s my documentation for making this advice? This is just one of the charts you would have access to if you signed up in the link above. We were doing ok here on prices for a while. A channel was forming in which prices were bouncing around. But look at what just happened; a bit of a break to the down side.

So in conclusion, it’s ok to buy, but buy right and if you’re a seller, you must price right. Study your competitive sales and know that you’re going to have to price your home a bit LOWER than what competitive homes sold for in the last 6 months. Sorry, but that’s the way it is. And if you’re looking for a real estate broker that will tell it like it is so that you can make decisions that are in YOUR best interests, well … you’ve found one in me.

Thanks!

Palos Verdes Peninsula parcel tax measure narrowly passes

With all precincts reporting, Measure M had approval from 68.5 percent of voters. It needed a two-thirds majority to pass.

Supporters said the $374 annual parcel tax – set to continue indefinitely – is necessary for the high-achieving Palos Verdes Peninsula Unified School District to counteract state cuts to education funding.

Julie Trell, co-chairwoman of Keep Our PVP Schools Strong, said she felt the pro-M campaign was helped by a get-out-the-vote push asking parents to go to the polls on Election Day.

The tax, which provides an exemption for senior citizens, amounts to the exact same dollar figure that property owners are paying now for two parcel taxes, at $165 and $209 per year. Both are set to expire in 2013.

The measure provoked controversy – and opposition from some vocal critics who have supported district taxes in the past – because of its lack of a sunset date.

Trell said that element was one of the advantages of Measure M because it means the district won’t have to keep asking voters for tax extensions. And an army of volunteers won’t have to mobilize every few years in support of the district.

“It’s secure funding. … We don’t have to go back every time. It’s just such a huge effort, and to not have to do that is such a huge relief,” said Trell, who co-chaired the campaign with district mother Kim Rutledge.

Critics said that without an expiration date, the measure will install a permanent tax on Peninsula property owners. They additionally didn’t like the fact that the measure will allow the school board to add an annual increase to account for inflation.

Supporters of Measure M responded that the school board will have to vote each year on continuing the tax at a public hearing where residents can protest. And voters can bring an initiative to overturn the tax.

Since 2000, Peninsula voters have funded three school district construction bond measures and three parcel taxes.

A 2009 parcel tax extension garnered a fairly close 68.9 percent of the vote, down from previous elections but slightly above Tuesday’s result.

District officials had said that without Measure M, schools would see “devastating cuts,” including 130 layoffs and funding reductions to athletic programs, counseling and academic intervention initiatives. Class sizes would have increased.

The existing parcel taxes bring in about $7 million each year, funding regular operations in the district’s $90 million budget.

Your school board candidates

Thursday, October 27, 2011 12:33 PM PDT

School board candidates are Dr. Dianna Chooljian, from left, Erin LaMonte, and Larry Vanden Bos.

Residents living within the boundaries of the Palos Verdes Peninsula Unified School District will choose two new Board of Education members on Nov. 8. Three candidates, one of which is an incumbent, have actively hit the neighborhoods seeking support. The News had four questions for each of the candidates; below are their responses.

Dr. Dianna Chooljian
Occupation: Physician

The News: Of all the entities on the Peninsula, the school district has the largest budget and is the most dependent on the state for its funding. The state’s finances are a mess. How will you lead the district through these tough economic times and are you prepared to make tough decisions?

Chooljian: I will lead the district through these tough economic times with “new energy and a new vision.” I will look for means to increase revenues in our district through grant proposals, corporate alliances and bridging better communication with our residents. In addition to increasing our revenue, I will look with a “critical eye” at each budget line item to assure that every dollar is being spent wisely. Funds should be prioritized for our children and teachers in the classroom. I believe we need to work better together, especially in these difficult economic times. I will look for ways to consolidate our resources at every district level from preschool through high school to prepare our children for a more competitive and global world.

As a physician, I have made tough and difficult decisions my entire career in making important diagnoses. As a retired U.S. Army lieutenant colonel in charge of department budgets and well versed in organizational dynamics and hierarchies, I have made challenging choices that had far-reaching consequences. As a medical educator of medical interns, residents and fellows, I have made selective decisions \[regarding\] health-care education and the delivery of health care. In summary, I am very comfortable and well versed in making difficult decisions and prioritizing those decisions.

The News: Each of the candidates has gone on record “wholeheartedly” supporting Measure M. The loss of the parcel tax would be terrible, but is the talk about potentially closing a school if it fails an exaggeration? Is local funding that important to the school district?

Chooljian: Local funding is absolutely critical in our school district due to PVPUSD being a “low-wealth” district based on the 1970s court case of Serrano vs. Priest, which decided the average base revenue limit of our district at $5,778.95. Our school district’s budget is comprised of approximately 80 percent from state revenues, 6 percent from federal revenues, and 14 percent from local revenue. Our state has already withheld approximately $25 million in the last few years and adopted a continued “flat line budgeting” approach that make our dependence on our local revenues even more critical. We need Measure M to pass to provide $7.2 million directly to the students in our community. We are fortunate that we have the PEF, which has pledged another $2.7 million to our schools this year. These local efforts to finance our schools are imperative to strengthening our children’s education and growth especially in times of our state’s economic crisis.

All budget line items need to be examined. While closure of a school is a possibility in this economic crisis, I would look at alternative means to reduce expenditures in our budget before resorting to such drastic cost-saving measures. For instance, there is a $9.7 million line item in the school budget for “consulting fees and other” that is not transparent to me. What do these costs include? A significant portion of this item is due to attorney’s fees but the amount is unclear. While legal fees are a part of any business, I believe that much of these costs may have been averted and better anticipated with improved proactive communication with the school board and our residential community.

The News: The divisive nature of issues, such as the PVPUSD vs. PVHA, stadium lights and bleachers, has created some rift between the school district and the community. If elected, how do you plan to rebuild relationships and trust?

Chooljian: When elected, I would rebuild relationships and trust with our residential community in several ways:
1) create liaisons with our school board members and respective city leaders in all four cities;
2) hold monthly meetings with these respective members to discuss current issues and better anticipate contentious issues;
3) conduct town hall meetings with residents in the respective cities with parties on both sides of contentious issues before they become a closed session item or are placed on the agenda for an upcoming meeting;
4) conduct more meetings at a time of day that is conducive to increased attendance and participation within our community;
5) have, as much as possible, fewer items discussed in closed session and more in the open session;
6) provide better summaries of the discussions from the closed session items;
7) inform the audience if a closed session is prolonged and an approximate time for the start of the open session;
8) facilitate live televised broadcasts with Cox Cable;
9) make meeting agenda available to residents in ways other than the Internet, i.e., in the local newspaper or a mailed newsletter; and
10) be respectful to our audience members who have come to voice their opinions by placing them earlier on the agenda especially for those who work the following day. This is respectful to the needs and schedules of our residents, administrators, educators and students who have elected us to serve them.
The News: Once elected, what’s your first priority?

Chooljian: Once elected, my first priority will be to scrutinize the budget line by line to eliminate unnecessary waste and prioritize funds to our children and teachers in the classroom. I can bring the energy and vision needed to think creatively, optimize our resources so that every dollar is spent effectively toward our children’s advancement. The school board needs to regain and earn the trust of our residential community. I believe that open discussions regarding scrutinizing our budget, actively seeking grants, collaborating with our corporate community, forming liaisons with our city leaders, and proactively meeting with these city leaders will all bring about the change that is needed on our school board.

Candidate statement
When my husband and I retired from the military, we settled in Palos Verdes because of the excellent schools and education in our district. Our two children attended the schools in our district, were both student representatives to the school board, and now attend Ivy League schools.

I had the opportunity to attend the school board meetings with my children during the past couple of years and observe the board proceedings, discussions and protocols. I learned a great deal from this process and realized that I had much to give back to education and our community of which our family has been the beneficiary.

As a former military physician currently in private practice, I have been a student and educator my entire career. I have always made education a top priority and have been active in PTSA in several premier school districts in our nation.

My top three goals include: 1) ensuring strong fiscal management and accountability in a challenging fiscal environment by scrutinizing each budget line item and eliminating unnecessary waste; 2) strengthening our educational excellence and best practices at all district levels; and 3) bridging better proactive communication and relations with our student and residential community.

When elected, I pledge to serve you as an independent advocate for educational excellence and improved communication with all of our residents.
www.DrDianna4PVPSchools.com

Erin LaMonte
Occupation: Assistant to high school principal

The News: Of all the entities on the Peninsula, the school district has the largest budget and is the most dependent on the state for its funding. The state’s finances are a mess. How will you lead the district through these tough economic times and are you prepared to make tough decisions?

LaMonte: Our public school system is a victim of the state of California’s budget disaster. Eighty-five percent of our budget comes directly from the state and approximately 87 percent of the district’s budget goes to employee costs. Electing individuals who have the understanding and background to enable them to make financial and budgetary decisions is the most important factor to consider when marking your ballot. My business degree and professional experience, coupled with my knowledge of the school district operations, make me extremely qualified to lead the district. For the last eight years I have represented you, the taxpayer, on the Citizen’s Oversight Committee assuring proper expenditures of our locally raised monies for our school system. As current president of a local homeowner association and past president of multiple organizations, I know how to lead with strength, civility and effectiveness. Experience in business and the school environment is what is needed on our local Board of Education.

The News: Each of the candidates has gone on record “wholeheartedly” supporting Measure M. The loss of the parcel tax would be terrible, but is the talk about potentially closing a school if it fails an exaggeration? Is local funding that important to the school district?

LaMonte: There has been no talk of “closing a school” as far as I have heard. Student enrollment determines how many classrooms and desks are needed and we are currently overall flat with a small decline in several elementary level grades. Under normal circumstances, decisions regarding school opening or closing would be based solely on enrollment. However, in these trying economic times, and especially if Measure M does not pass, all options for cutting costs must be on the table.
I support the decision that the residents of this community should be able to vote to better control decisions on a local basis. The school children of Palos Verdes are at the financial whim of the state and by allowing the educated and informed voters of the Peninsula to determine local funding through vehicles such as the parcel tax, through which all of the monies remain in our district, we maintain the reputation and standing of our school district. I believe voters should have the right to make this decision, especially since the high quality of our schools keeps property values high. Approximately 15 percent of the district’s budget comes from local funding, which includes donations to PEF, donations to local schools and the Measure P and V funds. Having served on the oversight committee, I can tell you with absolute certainty that these local funds help maintain programs such as our engineering, technology and college prep courses, which differentiate our students when they compete for college acceptances.

The News: The divisive nature of issues, such as the PVPUSD vs. PVHA, stadium lights and bleachers, has created some rift between the school district and the community. If elected, how do you plan to rebuild relationships and trust?

LaMonte: There have been a handful of issues that have garnered the headlines in the local newspapers this past year. Living in a closely knit, caring community such as ours, no one likes to experience divisive issues. The truth is that because we are a dedicated and committed community, we can and do experience differences of opinions. As an elected Board of Education member, the process that we follow to engage, inform and involve our stakeholders would be of utmost importance to me. I have experience as a volunteer leading the PVP Council of PTAs, as a member of the Citizen’s Oversight Committee, as an employee and as a community volunteer working with all stakeholders. While conflicting topics do arise and never will everyone be pleased with all outcomes, community members should continue to express their opinions and must be heard by elected officials. Public meetings on topics of community interest should be held, notice of public meetings should be well publicized, such as via email, and decisions should be clearly explained. Finally, the school district must remember that our schools are part of our local communities and we should always strive to be good neighbors.

The News: Once elected, what’s your first priority?

LaMonte: A large portion of my professional experience consisted of consulting large corporations regarding organizational change. We have remarkable resources in our staff, parents and community. These resources can and should be tapped to help improve an already great school system. Since budgets are tight, let’s use this talent to help implement best education practices throughout the district while creating strategic plans for our facilities and finances.

Candidate statement
I am a product of these schools having graduated in the 1970s. Furthermore, my husband, Gary, and I opted to raise our family here. For the last 15 years, I have committed to our schools in leadership roles, as a volunteer, employee and parent. From serving on the Oversight Committee, serving as PTA president for multiple years and sites, to serving on numerous districtwide committees, my emphasis has been on serving all the children and families throughout the Palos Verdes Peninsula. Asking the public to elect me on Nov. 8 to serve the community by guiding our unified school district is the natural extension of my longtime service to this community. This background, coupled with my business and financial experience, qualifies me uniquely for this position. My knowledge of the financial constraints our district faces and my proven leadership skills will be an asset to the board as we face challenging times ahead.
www.ElectErinLaMonte.com

Larry Vanden Bos
Incumbent
Occupation: CEO of a food manufacturing company

The News: Of all the entities on the Peninsula, the school district has the largest budget and is the most dependent on the state for its funding. The state’s finances are a mess. How will you lead the district through these tough economic times and are you prepared to make tough decisions?

Vanden Bos: The current PVPUSD 2011-12 budget assumes $71 million in current state funding. This level is about $7 million less than when I was first elected to the board and it may be decreased by up to a further $3 million in January. During this same period our student population has remained about the same. Nonetheless, we have educated our students at the same high level with lower per pupil funding each year. Despite these challenges, we have been able to maintain a dwindling but still prudent reserve for economic uncertainty, and no educational programs have been eliminated.

Working with all of our stakeholders, PVPUSD has been able to remain solvent through the generosity of the community (“Save Our Teachers,” Measure V and increasing PEF donations), the sacrifice of our staff (increased class sizes, unpaid furlough days, reduced administrative staff), one-time federal jobs monies and the reduction of all possible expenditures (utilities, supplies, et cetera). In addition, we have eliminated many district positions and reorganized district staff. I will continue to work with all of these parties in the most constructive, collaborative way possible to achieve the best possible balance of all of the interests of each group, even when these interests do not always align. With any compromise, however, I will always to keep two guiding principles in mind — that the board is the steward of the community’s money and that the primary job of the district is to educate students.

The News: Each of the candidates has gone on record “wholeheartedly” supporting Measure M. The loss of the parcel tax would be terrible, but is the talk about potentially closing a school if it fails an exaggeration? Is local funding that important to the school district?

Vanden Bos: The PVPUSD 2011-12 budget includes $88 million in total revenue, of which Measures P and V (which Measure M would replace) provide roughly $7 million. As I stated above, the district has been able to maintain a prudent reserve for economic uncertainty and no programs have been eliminated despite continuing decreases in state funding.

This delicate balancing act, however, will evaporate without parcel tax funding. The district’s reserves would be reduced below the legally required minimum in less than one year without significant and ongoing cost reductions. Since employee costs comprise almost 82 percent of the district’s budget, every employee group would have to be slashed in order to generate needed savings.
PVPUSD already has the fourth lowest administrative overhead per student of the 47 unified districts in Los Angeles County, so unless school sites are combined to save costs, the bulk of the cuts would necessarily have to come from the classroom. Class sizes would have to dramatically increase and many of our most enriching programs would have to be eliminated. The district will be fundamentally altered in a way that our community would not recognize.

The News: The divisive nature of issues, such as the PVPUSD vs. PVHA, stadium lights and bleachers, has created some rift between the school district and the community. If re-elected, how do you plan to rebuild relationships and trust?

Vanden Bos: The board, as the policy-making body for the district, must spearhead the effort to achieve better communication with the community in order to avoid and/or better manage issues that affect the community. We should re-examine our own communications policies and goals (keeping in mind the constraints of the Brown Act) and we should examine some of the existing board policies affecting issues such as capital campaigns and school construction projects. We should see what measures that we can take beyond those legally necessary and already in place to better inform our constituents of a pending project or upcoming issue.
As the policy-setting body, we should also encourage active and open communication between the board, the district administration, site administrations and the community. One step we have already taken is the “Superintendent’s Update” sent to every school family. It is impossible for the board to know everything going on within the district and the community at all times, but it is our responsibility to ensure that there is an open and honest dialog within the district, and between the district and the community. This can only be accomplished when the board leads by its own example.

The News: Once re-elected, what’s your first priority?

Vanden Bos: My first priority — and that of the board — has to be to establish a financial framework for the future years. By law, every PVPUSD budget must be balanced, and we must submit a budget to the L.A. County Office of Education for two years into the future. State funding wreaks havoc on those plans, even during the current academic year. My colleagues have told me they look to me for guidance on those fiscal matters, and I hope to continue to bring my business and finance background to these very tough economic and budgetary issues. Beyond that, I plan to continue to explore ways to leverage taxpayer funds in our ongoing facilities construction program. I also plan to re-evaluate our policies that impact relations with our community and other stakeholders, to ensure that all viewpoints are heard and respected before a decision is made.

Candidate statement
I grew up on the Peninsula. In fact, I live in the house in which I was raised. My three children graduated from PVPUSD, as did I. My education prepared me for the life I lead, and I feel privileged to be able to give back by serving on the school board. I have had impact already, I believe, on improving relations among the board and district, and on ongoing district projects. For example, I helped leverage existing bond funding for construction from Measures R and S into more classrooms than originally planned at both large high schools. We are fortunate to have such a great school system, and two great comprehensive high schools that offer students the same quality education. Our district, and our community, is best served when we all work together toward the goal of providing our children the best education we can to prepare them for life beyond high school. With the voters’ approval, I hope to continue to serve that goal.
www.larryvandenbosforschoolboard2011.com

Wonder why building a home on a hillside costs so much?

For more information and to search for Palos Verdes Estates Homes for sale, go here.

Hi Folks,

As many of you know, I’ve been helping my clients solve their real estate problems, challenges, issues and helping them reach their goals for over 30 years.  And with that amount of experience, you would think certain things would get easier, wouldn’t you?  And in fact, certain things have become easier. 

But I have a confession to make – there’s one issue that has plagued real estate agents for decades and will continue to challenge real estate agents for decades more. It is a perpetual source of fear, trepidation and nervous tension. I’m somewhat less susceptible to this issue today as I was in May of 1980 when I first obtained my real estate license, but it still gnaws on me and I would like to share with you how you should be aware of this so you don’t lose money!

Do you want to take a guess at what it is?

It’s TELLING THE TRUTH! Ahh, I know what you’re thinking … you’re thinking I’m talking about telling the truth about that broken furnace, or crazy neighbor, or some other sort of disclosure issue, right? Well, you’re wrong … telling the truth about disclosure issues is easy, at least for me. They are what they are, the law commands that you disclose, so you disclose. Period.

No, what plagues every real estate agent is telling the truth to their potential seller with whom they are interviewing for the listing. And the problem all stems from FEAR. Did you know that in the South Bay area there are nearly 6,000 real estate licensees? So if an agent goes into an interview and really, really wants that listing, do you think there might be just the slightest tendency for that agent to be tempted to telling the potential seller what they want to hear, just to get the listing, rather than telling the cold hard truth? The agent is AFRAID that if they tell the brutal truth, that seller will just go and hire some other agent. In point of fact, that often happens. In fact that’s what mostly happens.

That’s why today, and this is a typical day, there were 54% more price reductions, cancelled and expired listings than new listings. There were 67% more price reductions, cancelled and expired listings than there were properties being escrowed today.

Put another way, the typical seller entering the market today, has a 67% better chance of not selling their home than selling. WHY?

Because I’m convinced, real estate agents are too darn scared to tell the truth up front to their seller. They think, “Oh, if I just tell them what they want to hear then I can get the listing signed and then ask for price reductions later blaming the market as the bad guy”. And it may be much more “innocent” than this. Out of fear, the agent may not have any malice at all and just want the listing so bad that they make up reasons in their head for agreeing with why the seller is right on their inflated view of their home’s value. Either way, the seller is poorly, poorly served.

So let me conclude here by saying this … if you want the truth, good, bad or neutral … if you want an agent that wants your business, but doesn’t “need” it so bad that fear becomes the motivator … if you want an agent from a position of strength can negotiate with other buyers and agents to defend the right price we set on your home … then call me. But let me warn you, this market is TOUGH. Know this, the only homes that are selling are those which buyers feel themselves compensated for the risk of buying in a market that probably has more price softness ahead than price firmness. That means you have to take the competitive sales to your home and subtract a few percent and make that your LIST price. You need to get ahead of the curve. Even then, it’s a tough, tough market and you need expert marketing and promotion skills in your agent to get the job done.

So bottom line – strength/courage or fear? Which do you choose?

Please feel welcome to contact me, hook me up to a polygraph and ask me what I believe the market will pay for your home. 

At Your Service,

George Fotion
424-226-2147
george.fotion@homeispalosverdes.com
DRE # 785373
www.homeispalosverdes.com