REOs, Short Sales, and Shadow Inventory

Some people believe that Pacific Palisades, like many other areas around Los Angeles, has not reached the bottom level of its current market price point. They comment about the bank REO (Real Estate Owned) pressure on prices, short-sale activity, and an assumed large volume of similar financially-distressed owners whose properties will soon need to be sold.

Anecdotally, this has not felt to be the case for many months. We have noted multiple offers in many cases, sales levels being maintained, and inventory not increasing significantly in comparison with the rate of sales. For example, at the current rate of sales of Palisades homes, there is less than a seven month level of inventory of homes available, which equates to a market that is fairly balanced between buyers and sellers.

In order to try to ascertain whether the financially-distressed property numbers might have a greater future impact, we have analyzed the past year of local sales, with the following findings.

The REO market has been relatively small in the Palisades. Only 10 homes have been listed in the past 12 months in the Palisades, with two remaining on the market today. Those that sold averaged five percent higher than the prices at which they were listed. There are currently approximately 14 additional homes owned by lenders, which obviously will be put on the market for sale. However, with approximately 140 homes for sale at present, at the rate that these REOs come on market, there is very little impact on the overall marketplace.

The remainder of the “shadow inventory” consists of approximately 35 homes which have been scheduled for repossession by banks at public auction. Many of these may eventually become REOs. However, a significant number of these will be successfully sold as negotiated short-sales.

A review of the last 12 months’ local short-sale activity showed that 24 homes were listed and four of these have already sold, with four others in solid escrows. Some of the remaining active short-sale listings have accepted contracts which are in initial stages of being negotiated with the lenders.

If all of the Palisades homes that are currently bank-owned (or in the process of being such) were to come on the market, it would equal approximately 35 percent of the number of homes currently for sale. This is substantially less in magnitude than in the various areas of the country where short sale and REO activity is 50 percent or more of the market, and the shadow inventory is also considerable. So far this year, only eight percent of the sales in the Palisades have been REOs or short sales! Naturally, only time will tell. However, it would appear to take a great deal of increased financial pressures for our local market to be greatly impacted by REOs or shadow inventory.

New Listing: Beautifully Finished 4 BD 2BA with Lots of Outdoor Space

Set on quiet loop street just minutes from Village, hiking and beach. Charming inside and out. Bright spacious living room with fireplace, updated kitchen off dining/family room. Three bedrooms, one bath downstairs. Master suite upstairs with good walk-in closet. Hardwood floors and french doors/windows. Beautiful landscaping, private brick patio with large pavilion, fire pit, grass yard and detached office.

358 N Las Casas Ave., Pacific Palisades
Offered at $1,425,000

For pictures and information of this and other wonderful properties please go to Michael Edlen's Featured Homes web page.

New Listing: Beautiful 3 BD 1.75 BA near Village

Absolutely charming and move-in condition. Light and airy with beautiful hardwood floors, vaulted wood-beam ceiling, and plantation shutters. Updated kitchen off large living/dining opens to private patio with pool/spa and hillside (with ocean-view potential flat pad at top). Conveniently located near school, Village, hiking and beach. Recent upgrades to furnace & a/c.

1017 Bienveneda Ave., Pacific Palisades
Offered at $1,250,000

For pictures and information of this and other wonderful properties please go to Michael Edlen's Featured Homes web page.

Real Estate Market Update- February 2011

As we begin a new month, and take a look at the palisades market so far this year, a few interesting observations can be made.

There have been 238 local homes sold in the last 12 months, which averages 20 per month. As of February 28, 2011 there are 47 homes in escrow, which appears to be consistent with the last 12-month rate of sales. There are 103 active listings as of February 28. At what appears to be the current rate of sales, this equates to slightly more than 5-month level of inventory.

Since most real estate economists agree that a market is roughly in balance between buyers and sellers when the inventory is about 6 months level, in theory the Palisades is once again slightly favoring sellers. It is far too soon to guess if this is a trend beginning much sooner than expected, though it is interesting to observe.

It is also interesting to note that the median price of homes that have closed escrow this year is below $1.6 million, as compared to $2 million for the first two months last year.

Real Estate Market Update- January 2011

As the first month of 2011 has passed, and although there have not been enough sales to draw any conclusions from, the following is the initial picture:

The number of sales (16) in January was 38% lower than last year at this time, and the median sale prices were 33% lower. Prices per square foot were approximately 12% lower during this first month of 2011. There is a 7% larger inventory of homes available this year. Some indications that the market may be leveling out are that the average days on market is 37% shorter than it was at this time last year (now 86 days). One tangible sign that the market may be approaching its bottoming out level is that at the current rate of sales, there is a 6.5 month inventory of homes available in the Palisades. It has generally been agreed that when the number of months of inventory is above 7 months it has become a buyers market. Where as below 6 months it tends to benefit the sellers.

5 Strategies to Rebuild Your Credit after Foreclosure

If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again. The answer is yes, but it will take a while. [...] Here's what you need to do to rebuild your credit to qualify again for a mortgage.

Pay your bills on time: The FICO score, the dominant credit score used by lenders, gives the greatest weight to payment history, so make sure you consistently pay your bills on time. “Stability is the key,” said Craig Jarrell, president of the Dallas region of IberiaBank Mortgage Co. “Have you demonstrated that you are now capable of owning a home and paying the bills, and have recovered from whatever circumstance caused the original foreclosure?”

Review your credit report: You’re entitled to a free credit report once every 12 months from each of the three national credit bureaus—Experian, TransUnion and Equifax. You should get a copy and check it for any inaccuracies.

To get your free credit report, go to http://www.annualcreditreport.com. “Make sure it is about you and only you,” said Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. “If you find errors, dispute them. If you discover old debts, it will weigh in your favor to satisfy them. Paid late looks better than not paid at all. Make sure that debts older than seven years have rotated off your report, as these could be dragging your score down unnecessarily.”

Check your mortgage: You want to be sure that you don’t still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren’t enough to cover what’s owed on the mortgage, which would leave you owing the difference.

"Make sure there is a zero balance reflected, and if you are responsible for a shortfall, make arrangements to repay the remaining balance," Cunningham said.

Many lenders are willing to settle that "deficiency judgment" for less than what's owed because "it's better than getting no money at all," Jarrel said.

Apply for credit: In particular, apply for different varieties of credit. “Credit scoring models value having different types of credit,” Cunningham said. “Having some revolving accounts, typically credit cards, and some installment fixed-payment loans, such as a car payment, can improve your score.” But don’t apply for too much credit at once. “This can appear as though you’re desperate for credit and perhaps make lenders less inclined to extend credit to you,” Cunningham said. “Further, too many credit inquiries can have a negative impact on your credit score.”

Don’t fall prey: Watch out for credit repair companies that promise to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job—after paying a fee for the service. “The truth is, that no one can remove accurate, negative information from your credit report,” according to the Federal Trade Commission. “It’s illegal.” Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.

When it comes to repairing your credit, there are no quick fixes, the experts say. What lenders want to see is responsible financial behavior over time.

“Know that time is your friend, as the farther you move away from the financial distress, the less negative impact it has,” Cunningham said. “Follow with responsible behavior with your new credit, and you’ll soon have a solid credit file.”

As published in The Dallas Morning News, 2010.

New Listing: Contemporary Mediterranean Home

Large, bright and open 5-bedroom, 4.5-bath Contemporary Mediterranean with unique and romantic architectural details. Private grass yard with charming entertaining patio.

374 Arno Way, Pacific Palisades, CA 90272

Offered at $2,450,000

For pictures and information of this and other wonderful properties

please go to Michael Edlen's Featured Homes webpage

New Listing: Cape Cod Charmer in the Palisades

Charming and romantic 3-bedroom, 2-bath with office and den. Wonderful indoor/outdoor flow. Just three blocks from Palisades Village.

15001 Bestor Boulevard, Pacific Palisades, CA 90272

Offered at $1,825,000

For pictures and information of this and other wonderful properties

please go to Michael Edlen's Featured Homes webpage.

“Wait-and-See” Buyers May Lose Out

By Michael Edlen, Real Estate Consultant

Published in Palisadian-Post and Santa Monica Mirror

Real estate agents have seen increasing numbers of prospective buyers repeating what has become a familiar pattern.  In the current slower market, many buyers hesitate to make a purchase decision even when their search criteria have almost all been met by a property they have viewed. However, many prospective buyers may look back with regret if they are not prepared to make offers when a home meets their needs.

Of course this reluctance has served well from one point of view. Clearly prices have been in a downward trend for quite a while even in relatively stronger market areas such as the Westside of Los Angeles. 


However, it has long been noticed in real estate as well as other financial arenas that no one “rings a bell” at the bottom of the market. In some neighborhoods the bottom may already be occurring, despite the overall general news and market statistics. In fact, it is not uncommon for there to be multiple offers in some of the more desirable areas when a home is priced very competitively. In recent months we have had multiple offers on two of our listings north of Montana, both of them sold for more than the list price.

Another example occurred in the Palisades with a new home that had been on the market for several months. The seller finally decided to adjust the asking price by approximately 10% with the intent to make it extremely attractive to buyers so that at least one of the prospective buyers with a “wait-and-see” attitude might be incentivized to present an offer. Within a few days three buyers wrote offers, and within the week it was sold at a higher price than the reduced price point. One of the unsuccessful buyers was very sorry they lost out because they waited too long to decide. This put them in the middle of a bidding war that they lost in the end. During the two-week contingency period they even offered to increase the price.

Many buyers seem to feel that nothing is well-priced today, and eventually can be purchased for lower prices. While this may be true of some listings, those which are well-priced to begin with are sold rather quickly even in this slower market. Moreover, decisive buyers usually do not regret negotiating the best terms on purchasing a home that meets most of their criteria. A client of ours recently thanked us for encouraging them to move forward rather than continuing on the sidelines in the hopes that an even better opportunity might show up. They also benefited from their timely decision because of the historically low cost loans still available.

No one has an infallible crystal ball to know when the best timing for a purchase will be. However, unless someone intends on selling within a few years, odds are that they will look back and feel good about having bought sooner rather than later.

For more articles about the home buying and selling process and current real estate trends see MichaelEdlen.com

Palisades Housing Market Update 10/20/10

As of today there are 149 homes for sale in the general Palisades market area, which is slightly lower then last year at the same time.  At the current rate of sales per month, there is now approximately seven-month inventory of homes for sale, which reflects the market which is almost in balance between buyers and sellers.

There are 38 homes in escrow, with a median list price of $2,200,000 and there have been approx 200 sales so far this year with a median price of $1,950,000. (Which is about 5% lower then last year at this time)

There have been several cases of multiple offers in the past month.  For example, about seven of the current escrows involve multiple offers! (Which is close to 20% of those in escrow)

The Palisades’ areas with the greatest number of sales so far this year are the Highlands, El Medio to Marquez area, and the Alphabet Streets.  Prices have ranged this year so far from $635,000 to $26,000,000!

The above summary verifies that the Pacific Palisades remains robust in homes sales, and decidedly is a market that could be moving up at any time in the near future. 

New Listing: Beautiful Cape-Cod Style House near Pacific Palisades' Village

776 Radcliffe Ave, Pacific Palisades, CA
Remodeled 4-Bedroom Cape Cod-Style Near Village

$1,750,000

For pictures and information of this and other wonderful properties 

please go to Michael Edlen's Featured Homes webpage

Our Transaction History

Each of those red dots is a unique, fulfilling and special experience that comes from selling your home.

LA Times Hinting Foreclosure Crisis May Be Subsiding

An April Article from the LA Times reveals there may be light at the end of the tunnel with decreasing California foreclosure rates. Take a look at the full article HERE.

The Last 12 Months in Unit Sales

Here is a new graph I just finished comparing the number of units my team and I sold in 2009 to the top brokerages in Pacific Palisades.

Accomplishing a Successful Short Pay Sale

What is a short pay?

A short pay is when an owner pays off a loan by paying less than what is currently owed on it. A short sale is the sale of a property such that it results in a loan being short paid by the owner. Both occur when the property is sold and the market value is less than the loan currently owed by the owner.

Until recently, few people knew much about short sales or short pays. Those real estate agents and attorneys who were active in real estate in the 1990’s are revisiting the now little-known practice of short selling property as an alternative to foreclosure. A short sale is also sometimes called a “pre-foreclosure sale.” However, not everyone facing a foreclosure qualifies for a short sale.

When should a home owner consider a short-pay?

For a home owner whose property’s market value is less than the total encumbrances they owe, and who is having increasing difficulty making the mortgage payment, a short-sale may be a good alternative to foreclosure. Know your options as a seller and you may not be forced to let the property go into foreclosure.

If you don’t qualify for a short pay, you may still be able to negotiate what is termed a work-out with your lender, whereby you agree to pay the balance of the debt upon the close of escrow. As a result of paying off the balance of the loan, you would likely have no negative credit reprecussions or other legal issues.

Contacting a real estate agent or attorney knowledgeable in the negotiation of short sales will start the process and help you figure out whether or not a short pay, with or without a work-out with your lender, is an option for you. Your agent should be well organized and informed to help you the most effectively. When you start this process, be prepared to answer many personal questions about your finances as that is the only way for a good agent to effectively assist you in evaluating your situation.

Who should consider a short pay?

Although a short sale may be best solution for some homeowners, it is not for those individuals who have some assets, a good job with garnishable wages, etc. This is why individuals considering a short pay off should seek advice regarding the advisability of proceeding in this manner.

How does one successfully complete a short pay?

In order to successfully negotiate a short pay, without a work-out on the balance of the loan amount, you will have to demonstrate that the probability of a foreclosure in your case is high. If it is, then the bank will consider you a candidate for a short pay. The package you submit to the lender will consist of all the supporting documentation illustrating your situation and your need for short pay approval. It is not enough to write a hardship letter alone, as most lenders will require proof of the reasons why they should approve your file. The lender will consider the following: illness of the borrower(s) when accompanied by doctor’s statements, death of a borrower(s), divorce or legal separation when accompanied by legal documentation from the court or your attorney, involuntary job loss with documentation and past check stubs, etc. In addition to the above reason(s) and supporting documentation you will provide the lender, they will also require complete financial disclosure of income and assets.

Most lenders will require that the entire package of information be submitted at one time. It is important to the lender that the file they establish on your case not be completed in pieces or sections. The main reason is that the loss mitigation department people, who are those that help us negotiate short pays, may have up to 200 files each at one time to process. As a result, they have no time to track down paperwork or people. If the file is complete, it gets moved to the top of their stack and pushed successfully toward approval. Many loss mitigation employees and negotiators are paid a bonus per approved file, or upon reaching a certain number of approved files. This is because in approving these short-pays and avoiding the foreclosure process, they are also saving the lender time and money.

As you start to think of what will comprise your package, it is also a good time to write a letter of authorization to your bank, referencing your loan number(s) and authorizing your agent to be in touch directly with your lender. Your real estate agent will be doing most, if not all, of the negotiating and following up on your file and this will facilitate that process.

After you have submitted the authorization by fax or email to your lender’s loss mitigation department, your real estate agent can then contact your lender directly. Some lenders will not send out a package with their checklists and forms before you have listed your home and received an offer. They really don’t want to take the time to consider approving a short pay if it doesn’t have an offer for them to review at the same time. Other lenders send out the package at the initiation of the process in order for you to get started. It is prudent to begin collecting your last two years’ tax returns, pay stubs, bank statements, financial statement, hardship letter, etc. whether or not you actually have received the lenders package.

This would be the time to put your property on the market. In order for you to accomplish your goal of short paying the loan, and especially if you are already in default on the loan, the property must be aggressively priced and marketed. It should be priced below what the comparables would suggest, and not at market value. When the first notice of default has been filed by the lender there is a clock that begins ticking and you will have a limited time to accomplish the result you want.

When your agent shows your property, he or she will explain to buyers and their agents that it is a potential short sale. Therefore, the response time from the bank will be slow after submission of an offer and that it may be a while before they hear whether or not the short pay has been approved. It may take as long as 6-8 weeks for the approval process to be completed!

A short sale purchase, though it may feel like a good deal to some buyers, is not for those who are faint of heart. It takes both perseverance and patience on the part of the buyer and their agent. Therefore, it is crucial that your agent explain this complex process in detail to the buyer and their agent, lest you find yourself accepting an offer from a buyer who within a couple of weeks feels the need to withdraw his or her offer. Your lender is an intricate bureaucracy and it will take time for your agent to maneuver the maze to obtain the desired results.

Once you and your agent negotiate a reasonable offer, you will sign it and your agent will get an estimate of closing costs based on the recorded liens, and the offer you have accepted. Your package will then be promptly submitted to the lender. After your lender has assigned a person to your file they will locate a broker to do a broker price opinion. This agent will be in touch with your listing agent and will need access to view the property as they prepare their report. A good listing agent will prepare a record of comparable sales to give the agent completing the broker price opinion for the lender when they meet them at the property.

It is your agent’s responsibility from that point on to follow up with the person to whom the package was submitted. The package may move from person to person before it is in the hands of the negotiator who will do a final review and approve the short sale. You hopefully will then receive a short pay approval letter and that is the point at which you can open escrow with the buyer and start the more conventional process of having their inspections done and their appraisal ordered and their own loan process started. The approval letter is usually only good for a certain number of days. If there was a notice of default filed and a possible trustee foreclosure sale scheduled, the escrow must either close before that sale date or, if it is practically impossible, then the negotiator will typically postpone the trustee’s sale 30 days or more if necessary to allow you and the buyer you have procured to close the escrow. There is a very narrow margin of error, which means that if the buyer you are in escrow with does not complete the sale within the allotted time, there is a good chance that you will not have a second opportunity to market the property and start the process again with another buyer before the trustee’s sale goes through.

What about the tax implications of a short pay?

There may be tax ramifications as a result of a short sale that vary from those of a foreclosure. Therefore, before you decide to go with a short pay, you may want to consult with your tax advisor about any tax liability.

The Benefits of a Real Estate Team

“We interviewed a ‘stand-alone agent’ and another who has two assistants. The single agent pointed out that we might never hear from the other agent if we hire her because the assistants do all the work. We know you have a team approach and would appreciate your comments.”
- A prospective home seller

Have you seen the paperwork required to sell a California home recently? The listing forms and disclosures now total fifteen pages, eight reports, and one booklet. The sale process includes thirteen pages or more, three certificates, several pages of disclosures, and supplemental escrow paperwork. Home inspections may take three to four hours and produce reports up to twenty pages. Supplemental inspections of roof, fireplace, plumbing, etc. can add further reports. Pest control reports are several pages, and preliminary title reports can be lengthy. By the time an escrow closes, the file may be over an inch thick!

Can you visualize the time it takes to process, organize and monitor all of these details? Are you aware of the current contingency removal process? It requires keeping track and taking affirmative action by specific dates, and there are often several different issues and time frames to deal with, as well as three to four inter-related forms.

If a “stand-alone” agent is meeting with a current or prospective new client, or is out for two to three hours showing properties to a buyer, who is available to answer phone calls and coordinate marketing activities in the office? Who is going to assure that advertising details are completed, digital photography done, and publication deadlines are met? How will brochure boxes get put up, and who has the time to keep them stocked?

If a single agent is at a lengthy property inspection, who can make the calls for a last minute appointment? And who can do a short-notice showing? When an agent is involved in family activities, may be out for a day with the flu, or is otherwise occupied for several hours, who is available to cover the office? If the agent has an arrangement where another agent will cover such times, how familiar might the other agent be with all the details of your home and property showing routine? The “team agent” also is much more able to be involved in networking with buyers’ agents to increase the attention and energy about your home.

I could never provide by myself even half the level and quality of service my team and I offer. Each of us has areas of specialized skills as well as being able to cover each other’s activities when necessary. We have systems and checklists for handling nearly every aspect of the sale from start to finish, including effective marketing, advertising and escrow management.



The business model that many “team agents” use is similar to a doctor’s office, where a different individual is primarily responsible for reception and information gathering, preliminary measurements and temperature reading, obtaining of any lab samples needed, record-keeping and invoicing. Certainly, the doctor could do most or all of the functions and activities, and probably does in some small towns or rural areas. But in most practices, the professional level of service requires at least two to three other people in the office.

Would a baseball team thrive with just one coach? Could a CPA provide high-quality service for more than a few clients if he was also the receptionist, bookkeeper and file clerk? Would you hire an attorney who did all his own research, computer entry, copying of documents, office records and filing? Also, would you rather have an attorney who is in the courtroom every week, or one who is there three or four times a year? The median average agent serving the Palisades does only one sale a year.

I suggest that you get a list of sellers represented during the last few years by both of the agents. Call and ask them to describe their experience, and find out if they would use the same agent again.

If you would like some guidelines for interviewing agents, please call me for a booklet of some suggested questions and other issues to consider.

A Little Bit About My Team

Tatiana Weiss
Team specialty: Escrow Coordinator

In real estate since 1990
With the Edlen Team since 1997

Outside interests:

Traveling and discovering and exploring new places
Learning details about the history and government of my adopted country
Helping law school graduates prepare for the California Bar Examination






Jolie Hernandez
Team specialty: Buyer Specialist

In real estate since 1994
With the Edlen Team since 1997

Outside interests:

Outdoor activities: skiing, cycling, rollerblading and hiking
Travel and exploring cultures and religions
Participating in charities
Reading and meditation







Christina Wagner
Team specialty: Marketing Director

In real estate since 1998
With the Edlen Team since 2001

Outside interests:

Interior decorating and event planning
Participating in charitable and fund-raising events
Traveling with friends and family
Reading and cooking







Leslie Woodward
Team specialty; Buyer Specialist

In real estate since 1998
With the Edlen Team since 2006

Outside interests:

Horseback riding
Tennis and running
Biking
Reading




First 3 photographs by Chuck Gardner Photography
310.472.0170
chuckgardner.com

Sellers, Make a Good First Impression

Selecting a home is not usually based on logic alone. Most buyers are swayed by the initial emotion they feel when they first walk through a property. Almost instantly, the home either feels right or feels wrong. That first impression can be the beginning of a successful sale, or it can be a prohibitive factor that will have to be overcome. Good first impressions, feelings and emotions often control the sale, and logic can take a distant second place in the decision process.

Here are four important factors to consider before showing your home to a prospective buyer:
· Scent – First, be sure to eliminate any unpleasant odors, such as animal odor, cigarettes, pipes or cigars, and strong cooking odors. Next, air out the house as often as possible. Fresh air flowing through a home can make a big difference. Lastly, fill the home with scents that evoke a sense of warmth and comfort. Be careful not to overdo it. A simple light vanilla scent will please most people. And, if you are inclined, you can always bake a batch of fresh cookies before a showing or open house!

· Sound – Whether you live on a quiet cul-de-sac or on Sunset Blvd., playing soft neutral music during a showing is always a nice touch. Keep the volume low – remember, it’s purpose is to relax the buyer. If the home has sound wired throughout each room, the music will also give you an opportunity to demonstrate a feature of the home.

· Setting – Creating a visually inviting environment is critical. From the front yard all the way through to the back, it is important to set the mood. This can be accomplished by sprucing up the landscape, clearing all surfaces of clutter and personal items, putting fresh flowers on display, setting the dining table, and lighting candles.

· Brightness – One of the most common criteria on a buyer’s list is brightness. Open all blinds and draperies to let in as much natural light as possible. Turn on lights in dark corners. Add lamps as necessary to increase the amount of light in applicable areas. In addition to feeling good, this will also make the home appear larger.

Remember, you never get a second chance to make a first impression, so use these suggestions to help make a buyer fall in love with your home!

How To Select A Real estate Agent

By Michael Edlen

Think of it as an employment process, comparing different agents with as much attention and time as you would in selecting a doctor or attorney. Find agents who experienced the challenging markets of 1900-1997.

Develop a list of 3 or 4 well-researched candidates to interview, using various sources such as: managers of local company offices, noting who has consistent presence in local newspaper ads and other publications, and people whose opinion you respect.

Visit each candidate’s personal website, and note how easy it is to navigate and if the content seems current. See if they have any special or upgraded presence for their listings on Realtor.com or other sites. You could also test their on-line response time by sending a brief email requesting information.

Prepare a list of questions to ask them, and begin asking with your first phone call. These could include:
· What is your track record in my neighborhood over the last 2 years?
· Do you live in the area and where is your office?
· What preparations do you recommend before putting a home on the market?
· How do you propose marketing a property?
· Do you provide staff or team support? How available are you personally?
· What is your marketing sales success ratio, and escrow fall-out ratio?
· How many ads per month will you guarantee and what publications will you be in?

That call may help to eliminate a candidate before actually taking the time to meet.

Request any information they have that you can review before scheduling an appointment, and ask for a list of references and phone numbers.

Meet the remaining candidates in their office to see how their work environment feels and be watchful for evidence of good systems in place and a generally positive atmosphere.
· Get a feeling for how much the agent seems to care about you and what is in your best interest.
· See if they ask good questions and offer a consultative approach.
· Try to sense if you would be comfortable with their style, and confident in their representing you well.

If you follow these steps in selecting a real estate agent, you are more assured of being highly satisfied with the results.

Successful Price Positioning

Few people have realized that less than 45% of Palisades home owners are actually succeeding in selling their homes in the current market. Therefore, it is essential to first decide how important selling the home is before putting on the market. The two questions most often asked of real estate agents, how much will my house sell for and how long might it take, will in large part depend on the level of intent to sell.

There are four critical factors that generally determine why a home does or does not sell: how effectively it is priced and marketed, the professional experience of the agent, access for showing, and the showing condition.

Some sellers are just experimenting or testing the market, others are more motivated, and there are those who are very motivated. The latter group are the ones who have the best chance of succeeding. It may take three to four months on average in the current market for the home to sell given realistic pricing, adequate access, well staged showing condition and excellent marketing.

This is a time when it is not wise to price the home to test the market. Conventional pricing strategies involve looking in the “rear view mirror” to see where the market has been. Agents who have been through both up and down markets have learned by experience how important it is to always price ahead of the market, whether it is moving up or moving down at that time. The maximum energy in the sales process will be obtained by setting the price approximately 2-5% ahead of where the market is and in the direction it is trending.

Recently, the listing price of a property was adjusted ahead of the current downward-trending market as advised. Within a week, five offers were received. This validates that there are buyers who are willing to step up when the perceived value of a property is in line with the reality of today’s market.

Owners who are serious about selling need to meet with a seasoned professional agent who will help guide them to a realistic and appropriate positioning for success – both in terms of pricing as well as staging how the home can best be presented for maximum receptivity. Based on the studied opinions of most experts in the field of real estate and economics, it appears that it easily could be many years before the market highs of 2006-2007 are once again attained.

For the past 24 years Michael Edlen has provided real estate counseling services to prospective buyers and sellers. More tips and information are available on MichaelEdlen.com. He can be reached at 310.230.7373 or Michael@MichaelEdlen.com.