How to negotiate for everything you want

Every day someone asks me, “How can I get what I want out of this?” “How can I negotiate the right price?” “How can I talk them into selling me the (whatever it is that I want)?”

First, figure out what you want.  

Seems obvious right? I can't tell you how many times someone has said, “I want to negotiate a better price.” Then, when I ask them what price they want to pay, their next sentence starts with, “I don't know. Better.”

Don't even enter into a negotiation until you know exactly what you want and what that's worth to you.

Know exactly the price you want to pay and what you want from it. If it's a house you are looking at, know what you want to pay, what you are willing to pay and what you are willing to sacrifice to do that.

Let's detail an example. Since buying a home is one the biggest negotiations you will ever do, it makes a perfect example.

You want to buy 123 Main St. in Santa Monica. It's listed for $1,500,000. You want to pay $1,350,000. You are willing to give up the contingency that they replace the gutters (which will only cost you $3000 to have done).

Rule #1: Know exactly what you want.

Rule #2: Know exactly what you are willing to pay for it.

Rule #3: Know exactly what you are willing to give up to get it.

Now for the actual negotiations. How will you handle yourself? What should you say? What should you not say?

The first thing to do is tell the other person that you would like to negotiate. Don't invite them to coffee and then spring on them that you are trying to get a lower price on the car they are selling. Make sure they know what they are going to be doing when you show up. In home buying, this isn't usually an issue.

The next step is to be concise. This doesn't mean that you should bark your demands as they get out of the car. Be polite and pleasant, but after you have said “Hi,” shook hands and know how they are doing today, get to the point.

Finally, and obviously, follow through. If you promised cash, have the cash ready for closing. 

Rule #4: Be concise and direct, but don't be unpleasant.

Rule #5: Stay within the boundaries you set for yourself.

Rule #6: Be prepared to follow through right away.

Six simple rules that will allow you to negotiate anything in your life. Be open and honest, follow these rules and you will be just fine.

The Questions You Must Ask Prior to Choosing an Offer Price on a Home

In today’s interconnected world, complete with the Internet and mobile phones, finding information about potential homes that you would like to own is actually at your fingertips. The difficulty is that, instead of there being not enough information, you can actually go into overload looking at all of the comparables, information on neighborhoods and schools, not to mention available mortgage rates that you may or may not qualify for. The biggest decision, however, is making that final choice to actually buy a home, a financial commitment that is absolutely enormous. To help you out, here are five easy questions that you should ask yourself to help you deal with all of the information, and also to help you make the right decision when purchasing a piece of real estate.

What Is the Quality of the Home?

More than likely, you will be able to get a better deal on homes that need a little bit of work. When talking with your mortgage broker, they will provide you with several options in regard to financing. If it is in great condition, then regular financing will probably not be a problem. However, if it does need some work, the way to buy is to have a sizable amount of cash to work with; or get a rehabilitation loan with a large down payment. It all depends upon your finances, how much money you have to work with, and the quality of the home itself when it comes to getting the financing that you need.

Is It Really the Home of Your Dreams?

Many people will see a home either online, or pay a visit to the actual residence, and absolutely fall in love with what they see. You need to make sure that you are not making an emotional decision, one that could actually harm your personal finances as a result of having to pay a sizable mortgage payment. It is important that you always consider how much you can afford prior to making any type of offer. If the offer is out of your range, and out of your budget, then you need to counter offer, making sure to never go after something that could hurt you financially.

Can You Afford It?

In relation to the prior statement, if it truly is the home that you want to spend your remaining years in, or if it is something that you have always dreamed of having, it must fit your budget, or it could become the nightmare that you never wanted. Go over your finances carefully, and try to make sure that it will not cause financial hardship for you and your family. The mortgage broker can work with you trying to find lower rates for financing, or perhaps by making a counter offer, with a larger down payment, you can get the monthly amount to an affordable rate that everyone will be comfortable with. In essence, you don’t want what may be the most important investment of your life to actually become the worst mistake that you will ever make.

What Do the Comps Say?

One of your best friends, when it comes to making offers, is to look at recent or similar housing comps in order to determine a final price. The seller may want a certain amount for the property, and may not be comfortable with a lower amount, until they understand that houses that are similar to theirs are actually going for a lower price. Using all of the information in the comps, including size of the home, number of bedrooms, bathrooms, and available living space, you can make a good case for the amount that you are offering. In the end, this will help you secure a lower purchase price, and a more affordable mortgage payment that will allow you to stay within your budget and also get the home that you actually want.

Is There Competition for the Home?

Make sure you hire are dealing with at a realtor who will tell you if there is a lot of competition for the home at which you are looking. A good realtor will know the market and will know if the listing agent is being honest about the competition for the home.  You can use this to your advantage, especially if you are dealing with a property that is not in the best location and that needs a little work. If the competition is not that fierce, you can make an offer that is much lower than the asking price, hedging your bet on the seller fearing that your offer may be the only one.

If you are currently searching for real estate in the Studio City, Malibu, Pacific Palisades, the Hollywood Hills or the Downtown LA area, I can certainly help you find homes that will not only be appealing to you, but also affordable. There is something for everyone if you know where to look, and if you have the right information, you can undoubtedly find the home of your dreams in no time at all.

Buying and selling in the luxury real estate market

Being a go-to expert for buying and selling in the Luxury Real Estate Market is a feat that few realtors are able to achieve.  Living in Southern California there are many high-end markets throughout Los Angeles the Hollywood Hills (you can add other areas if you want), but as you might imagine the competitions if fierce.  Below are the methods I rely on to maintain a powerful presence in the elusive Southern California Luxury Market:

Global Reach

In order to be successful in the Luxury Market obtaining global reach is a must.  Buyers and sellers of standard homes often live in the general area the home is listed in, however in the Luxury Market buyers and sellers often live outside of the state and even outside of the country.  A luxury home is often a part-time home, a vacation home, or a short-term investment while living conducting business in the area.

To be successful in the Luxury Market you must understand how to reach prospective buyers and sellers from across the globe.  This means I invest a good portion of my time to worldwide marketing and outreach.  If someone in China is searching for a realtor in the LA area I want to be at the top of their list.

Multimedia Access

Multimedia access goes hand-in-hand with global reach.  Since many of my clients live in different time zones they need to be able to reach me in a manner that best fits their schedules.  Some of my clients prefer email, some prefer the phone, and some like to meet in person.  My luxury clients have demanding schedules and will squeeze in their communication while on the go—it is my job to make sure they can reach me quickly and easily with the communication methods they prefer.

Luxury Amenities Expert

Homes in the Luxury Market come with a multitude of extravagant amenities that average buyers have no need for.  If your luxury buyer wants a home with a full-sized basketball court, an infinity pool, and an in-home movie theater that is precisely what I must find for them.  If I can’t find the exact fit I must find a home that has an ideal space to do a quick remodel to produce the amenities they desire.  I also have a list of reputable contractors and vendors that specialize in adding the luxury amenities my buyer’s desire.  This way I am prepared with a solution to fit all of my clients needs. 

Presentation

Staging is just as important in the Luxury Market as it is in the standard market, if not more so.  However the staging budget for luxury homes can quickly reach the low to mid five digits.  Understanding the process of staging a 25,000 square foot home is a whole other ballgame than staging an average 3,000 square foot home.  While I may not stage every room in a 6 bedroom home there needs to be enough visual appeal in place that the prospective buyers can envision what to do with their expansive rooms. 

Presentation also includes dressing to impress and having extensive knowledge of the homes I am showing.  It’s true that you never get a second chance to make a first impression so I ensure that every detail is covered from staging, to history of the home, to noteworthy neighborhood features, to a clear and concise showing, and a professional and polished appearance.

To win the Luxury Market it is not enough to be just an expert in your industry.  You have to market, network, and understand the unique needs of your luxury clientele.

Self-improvement for Business Leaders

Are you a business owner, or do you desire to own your own business?  Even if you don’t, you might find these self-improvement leadership-for-business-success tips to be quite helpful.

Even though life is often a highly challenging experience, it should NEVER become the cause of regret. Nearly every human being undergoes unexpected troubles or encounters hidden obstacles in the quest for ordinary, daily happiness.

Yet, what if there were a reliable set of instructions you could utilize to remove such difficulties completely, or at least, handle them in the best ways possible?

Today, you can uncover such a simplistic yet monumentally powerful treasure chest; in just a few easy to read sentences lies a virtual “blueprint” for inner happiness plus maximized business and personal performance.

Self-improvement and leadership-for-business-success tend to form a dynamic duo for achievement on practically every level of your involvement. Yet, even individually, you profit from mastery of these unique concepts and skills.

For instance, what is self-improvement, really? The answer is that it reflects the whole set of emotional, intellectual, psychological, and even economic actions you purposely choose to embrace.

On this basis, you can assemble your own choice of individual talents, consistently develop yourself, and basically always be ready to display your capabilities at will.

Then, too, how about leadership-for-business-success? That is, do you really need it even when you are not the head of a company or firm?

The fact is that business leadership success skills can allow you to impact the long-term viability of almost any circumstances.  

5 Tips to Avoid Family and Work Burnout

As a busy mom working in the largest real estate market in the country, while raining two tween kids, I am on the go constantly. Running your own business generally takes an average of 60-70 hours a week of pure dedication in order to help it thrive and grow. Despite the amount of hours involved for a business to thrive, with some planning, there are several ways you can avoid work and family burn out, something I have personally encountered more than once in my life.

Here are 5 tips that can help you learn to balance your family life and work life whether you are a working girl like me, or not…..

1.  Focus on being present, despite the location or vast amount of distractions floating around your mind.  Frequently, entrepreneurs appear to be distracted, and in some cases disrespectful or rude. To avoid giving off these impressions, only take phone calls when you know you will not be distracted, and do not need to tend your children – lock the door to your office!  Remember, the minute you get on the phone is the minute your child needs you beyond desperation.

2.  Apply the “5 before 11am” principle, and tackle or accomplish 5 things you need to get done, before 11 A.M. In order to make this technique work for you, write a list of things you need to accomplish the night before – I have a tack of cards next to my desk and every night I decide what my “big rocks” for the next day will be.   This way when I wake up in the morning, I can begin tackling the list without hesitation or need to prioritize the tasks to be accomplished that day.

3.  Always treat you family as though they are your number one client. As a busy real estate agent, my schedule can become rather hectic and things always pop up at the last minute. In order to be sure there is plenty of time with my family, I try doing a couple of these things: first turn your cell phone off when your children or family members are in the car; return home from work at a couple nights a week at a reasonable time; and set a night each week to spend time with your significant other. These three simple steps are essential to reminding your family that they are your number one priority. The last thing I want to happen is to make my family feel as though my work is more important than they are my work is incredibly important to me, but I am proud to share that with my children when it is appropriate.

4. Do something special with your spouse or children during work time. Being able to leverage your work and family time means more to your family than you know. Try doing something such as meeting your spouse for lunch, or if you will be travelling out of town, take your family with you for a couple of days. By taking your family with you, you can create the feel of a mini-vacation for them when you are not working, especially if you need to travel out of your local area. Since I sell homes in Malibu and Pacific Palisades, often times I take my kids out there with me and after the home showings are finished, we take a walk on the beach, have a sunset dinner, or spend the night in one of our favorite hotel.

5.  Engage your family in your business. By finding age appropriate jobs for your children, you allow them to feel like they are a big part of your business. Plus you have the opportunity to spend more time with them, while making them feel important. The more you reach out for help and assistance from your family, the more they will appreciate what you are doing, plus they are less likely to develop feelings of resentment. A small example of a task I gave my children to do for me recently, was helping me sort through the mounds of unfiled paperwork from a busy year in real estate. When my tweens helped me stuff and seal the envelopes, they felt as though they were playing a big part to the success of my real estate career.

Working hard and raising a family is a difficult task that can easily lead to burning yourself out. However, by following the simple steps mentioned above, you will be able to create a balance between your work and family life that will prevent burning out and family resentment.

5 Simple Ways to Respond to Negative People

Many of the most valuable lessons I have learned have come from people I most definitely do not want to be like. You know the type.

For example, I have a co-worker who is the embodiment of cynicism, doom and gloom. He rarely has anything positive to say and his dark jokes revolve around someone else’s misfortune.

Whenever asked, “How’s it going?” he details his latest job woes in a manner that reflects his view that the world is out to get him. He can also talk for hours about his dark conspiracy theories.

Being around him can be draining, to say the least. Most of our co-workers suffer in silent resignation, head for another room, or step out into the garden for some fresh air to get away.

I often do the same. At other times, I feel compassion and attempt to share the benefits of seeing life from a more elevated perspective while also hinting at the importance of taking ownership of one’s shadow.

There are also times when, if I am not careful, I find myself getting drawn into the gravitational pull of his dark energy. When this happens, he unloads his grievances and walks away with a light spring in his step while I am left feeling like I need a shower.

In other words: this man is a fantastic ally. He has taught me incredible lessons about where and why I allow myself to be pulled off center and out of my heart. Through him, I have woken up to when this happens.

As a form of protection, I have created an internal checklist to respond to people both at work and at home who are negative or stuck in a dark mood. The checklist goes like this:

1. What does this person need?

Is there a chance that a positive input is being sought? If the answer is yes, then share something to lift the mood. If the answer is no, keep the interaction brief and walk away.

2. Are they acting as a mirror?

The answer is yes if we are being sucked in. When there is a pull, there is a resonance. Someone or something “out there” shows us where we are resisting the flow of life. When this is the case, we canbreathe in deeply and accept what is.

3. This too will pass.

While we can offer compassion and point to other alternatives, we are not responsible. Suffering is a choice. When we maintain our state, we are part of the solution rather than adding to the illusion. In this way, we create space for an opening of awareness to happen, which is more than enough.

4. Avoidance is O.K.

We can protect and safeguard the sanctity of our internal state by making sure we are with people who nurture us. On other occasions, when we have no alternative as a consequence of work or family obligations, we can remain upbeat and keep turning every negative comment into a positive. Do it for long enough and it works wonders. If the other person cannot get you on his or her negative side, they will eventually give up.

5. Love really is the answer.

Everything always comes down to love. If we love and respect ourselves, we do not give ourselves away so cheaply. We do not come down from our state. We do not concede who we are for the sake of someone’s need to off-load. We can listen with love. We only get dumped on when we allow ourselves to become part of the drama.

**

The next time that person comes your way, be grateful. No matter how mean, dark-spirited or negative they may be, they are here to teach us how to love, honor and respect who we are and what we have to offer the world.

I would say that is an invaluable gift wouldn’t you?

5 Tips for Choosing the Right Real Estate Agent

5 Quick Tips For Selecting Your Next Real Estate Agent

When you have saved enough money for a down payment and have qualified for a secured loan your next step is to find a real estate agent who will create a solid plan of action to help you find the home of your dreams.

While all agents have access to the same listings not all have the attention of detail needed when it comes to finding homes that meet your criteria and not all agents have what it takes to support you from start to closing.  The 5 tips below will help you in identifying the agent that is right for you:

Tip #1 Ask Friend and Family

If you have any friends, family, or collegues who have recently bought or sold their home inquire about who they used and what their strengths and weakness are.  Ask specific questions that require more than a yes or no response.  While the perfect agent for your friends or family may not be the perfect agent for you this process will help you to narrow down your list of options.

Tip #2  Pound the Pavement

Drive around some of the neighborhoods you are interested in living in and see if there are any trends.  Is their one realtor that dominates the area?  Take a look at any available marketing materials they leave out for display and look for signs of recent activity.

Tip#3 Check Out Their Ratings

With the accessibility of online community forums an easy way to get first impression of a realtor is to see what their clients have had to say about them.  While you don’t know the personalities of the people who have left reviews you can get a general feel for the agent’s demeanor and work ethics.  Zillow is a perfect place to find realtor reviews.

Tip #4 Attend Open Houses

Once you have narrowed down your list of potential agents attend one of their open houses, even if it is for a house you are not interested in.  This will give you a feel for how they operate and how they interact with their clients.

Tip #5 Interview Your Prospective Agents

Once you have 2 or 3 agents left on your list set up an interview with them.  Meeting an agent in person allows you the ability to determine if their personality traits are what you are looking for and gives you the opportunity to ask questions that showcase their expertise.  During your interview focus on the areas below:

  If you are a first time buyer make sure they are someone patient enough to walk you through the process and technicalities that pop up along the way.

  Also find out what their turnaround time for response is—same day or next business day.

  A new agent does not mean they are not skilled as long as they are well versed with their current markets trends.  An advantage of new agents is that their schedules are mostly likely lighter meaning they have more time to commit to helping you find your new home.

  Are they organized or cluttered?  Is it welcoming or chaotic? 

  A broker has licensing and more education.  This does not mean that an agent can fill your needs it just gives you an idea of their level of training.  Inquire about any specialized and ongoing training and certifications they have received.

Once you have interviewed your agents you can select the one that best meets your needs.  If you are having a hard time deciding between 2 agents avoid the temptation to hire them both.  While multiple agents might sound like a dream, it actually causes chaos, confusion, and experienced agents will not work with clients that are using more than one agent.

Success in Leadership

  To be a successful leader, you must be real and accessible.  If you are fake and unavailable you will inspire no one and your team will suffer.  Below are 5 tips to help you achieve success as a leader:

1.     Be Relateable

This is a balance that a true leader learns how to successfully master.

  If you lead from a place in which you become untouchable your team will have no connection to you.  If your team has no connection to you, there level of loyalty and dedication will be lacking.  A staff that is unconnected will not work as hard, and is more likely to move onto other organizations in which they can be part of something bigger.

“You manage things; you lead people.” Rear Admiral Grace Murray Hopper

2.     Be Yourself

It is easy to get caught up in all of the things a leader “should and shouldn’t be”.  Instead take a long hard look at yourself.  Who are you?  What are the skills, characteristics, and traits that got you where you are as a leader today?  Not that you don’t need to grow and adapt to changing times, but you need to be confident in who you are.  In your integrity, in your passion, and in your self-determination—don’t change who you are at the core because it’s what got you where you are today.

“A leader is one who knows the way, goes the way, and shows the way.” John Maxwell

3.     Learn Effective Communication

Learn how to listen—it is the most significant thing you can do as a leader.  Listen with your full attention—ears, eyes, and no peaking at your cell phone.  Listening will allow you to learn how your team thinks and it gives value to their hard work and dedication.  Even if a presentation needs work, taking the time to listen and give feedback will encourage growth and your team will know they are supported and truly part of something bigger.

“Lead and inspire people. Don’t try to manage and manipulate people. Inventories can be managed but people must be lead.” —Ross Perot

4.     Celebrate The Successes

Celebrate your team—not just the big wins, but the lesser details too.  Too many leaders are so focused on what needs to be improved that they do not take enough time to celebrate what is well done.  Motivating your team to succeed is not just about pointing out flaws, it is about pointing out where people shine and taking the time to celebrate.  Remember everyone in your team—from the front desk, to the top executives, play a vital role in success.

“True leadership lies in guiding others to success. In ensuring that everyone is performing at their best, doing the work they are pledged to do and doing it well.”  Bill Owens

5.     Believe In Your Team

If you don’t believe in your team then who will?  If you don’t believe in your team how will anything get done?  If you don’t believe in your team—you are not a leader.  Learn your team’s strengths, weakness, and learn how to communicate with them both as a team and as individuals.  If you don’t believe your lack of faith will shine through and the entire team will fall short.

As a leader you must look at the individual and the team, think short-term and long-term, you must be able to hold firm in your values, but adapt to changing environments.  As a leader you have big shoes to fill—but you shoes will walk no distance without a team who gives you somewhere to go.

"Motivation is the art of getting people to do what you want them to do because they want to do it."  Dwight Eisenhower

Striving to be the Picasso of the Real Estate World

Trying to compare a real estate broker to an artistic genius such as Picasso may seem a bit crazy. In reality, it makes perfect sense. Take a look at this short story…….

One day, a lady asked Picasso to sketch a picture for her while she was dining at a restaurant. Picasso agreed, and quickly drew a sketch for the woman. When he handed her the sketch, he told her the charge would be $10,000. The woman found this price to outrageous and fought back by telling Picasso he only spent a few minutes on the sketch. Picasso responded to woman, “No madam, it took me 50 years.”

To Do a Job Well, You Must Invest Time

No matter what the profession, it takes time to develop skills that may appear to be simple to people who don’t have experience in the field. Take a house showing for example. It seems easy to show a home to a potential buyer, however it takes a professional in the real estate industry to point out the right details to a potential buyer to help the buyer make the best decision for their financial investment.

Understanding the Market Requires Experience

A professional real estate agent is there to help home buyers avoid common mistakes a novice, solo home buyer is likely to make. When shopping for a home, the last thing a new buyer needs is to make a poor decision based upon bad timing or lack of knowledge.

The First Impression Maybe the Last

Your first impression is the lasting impression, especially in the real estate world. More often than not, your first impression will be your last. In order to make the best first and last impression, follow an expert’s advice on staging, photography, and marketing. Be sure to use professional signage and utilize the Internet to the fullest to gain more exposure.

For the best results throughout Los Angeles, and particularly Pacific Palisades, DTLA, Malibu, Studio City, and the Hollywood Hills, be sure to use a true real estate professional.

The Value of Walk-able Neighborhoods

With the high gasoline prices, people are looking to cut back on their driving. Making homes that are close to shopping plazas, restaurants, and community parks highly desirable for the modern day home buyer.

Urban areas offer the strongest housing market, especially since urban areas such as Studio City, Downtown LA, Toluca Lake, Sherman Oaks, Pacific Palisades, West Hollywood, Los Feliz, Silver Lake, Venice and Santa Monica, make it possible for residents to work and live in the city and not need a vehicle. Making the homebuyer’s ability to walk the streets a driving factor in buyer’s interest.

A prominent feature on many real estate listings nowadays is a “Walk Score.” The “Walk Sore” rates how easy it is to navigate through the neighborhood on foot. Often time’s information such as the home’s proximity to any shops or restaurants that are within walking distance is highlighted.

The types of retail establishments in the area are what make the location more appealing than suburban areas where a car is needed. Today, walk-able urban areas should feature grocery stores, coffee shops, restaurants museums, libraries, offices, and various types of housing. These features help make the areas engaging and lively.

As healthy living trends become more and more popular, so does the idea of walk-able neighborhoods. Whether walking or bicycling to work or other locations, technology makes navigating through the neighborhoods a breeze. An app on a smart phones nowadays help a person find a store on an alternative route home, or to work.

When looking to purchase any sort of real estate or a new home, determine how important the walking score of the neighborhood is. Does your lifestyle suite a walk-able neighborhood better or a non-walk-able neighborhood?

15 ways to be more productive with your business day

Let’s face it, we all want more time to get more done, be more, and have more.  So why is it that some people are just much more efficient at squeezing more out of every work day?  Here are a few things I do that might help you can get started on your way……..

1. –Get up an hour earlier,  For me, that’s when the house is quiet, the kids are asleep and I can get a LOT done while I’m drinking my coffee.
2. –Use Sunday evening for planning my week.
3. –Say no. (the power of constraints). Ignore. Focus only on the thing you’re looking to achieve.
4. –Turn off your emails on your phone.  This is great for me – means I’m not jumping every time the phone beeps, saves the phones’ battery life too.
5. –Use a simple to-do-list and only put THREE things on it to get done each day.  I use TeuxDeux.
6. –Plan your day according to the most important, biggest task, not the smallest and easiest.  Get your “big rocks” out of the way first thing – you’ll be happy you did.
7. –Know what the next step is at the end of every conversation.
8. –Set a timer to go off at 30 minute intervals to focus on one activity and take a short 1 minute break to refocus
9. –Take a proper break after 2 hours for 10-20 minutes – do some pushups or get out in the fresh air.
10. –Ask yourself  “is what I’m doing right now getting me closer to what I want to achieve.?”
11. –Know what you’re looking to achieve – what does “finished” look like?
12. –Keep an idea book to dump your distractions in, and come back to them a week later.  Or a vision board – I have both.
13. –Work out what is important and what isn’t important to do.
14. –Stop procrastinating and just DO it!
15. –Outsource – get help using oDesk and Elance, and have someone else design your blog in 2 days instead of you taking 3 weeks.

California Rents Remain Among The Highest In The Country

Studies show that year after year California renters pay some of the highest rents in the country.  In fact a shocking six of the 10 most expensive counties in the country are in California.  This includes:
3rd highest San Mateo County
4th Highest San Francisco County
5th Highest Marin County
7th Highest Orange County
8th Highest Santa Clara County
9th Highest Santa Cruz

What this means for renters is that it is almost impossible to afford average rent costs on a minimum wage salary.  Minimum wage in California is a low $8 an hour, and an average two bedroom apartment rents for around $1300 per month.

This leaves families living a quality of life that they would not wish for themselves or their families.  It is not unusual to find people in these counties working more than one job to make ends meet.

High rent costs also makes moving to these areas of California near impossible for many individuals as it is just too expensive to live.

There is hope that Federal minimum wage will increase to at least $9 per hour by 2015, however there is a lot of push back on this decision from business owners because they are concerned they will not be able to afford the higher pay rate.

This leaves families living a quality of life that they would not wish for themselves or their families.  It is not unusual to find people in these counties working more than one job to make ends meet.

High rent costs also makes moving to these areas of California near impossible for many individuals as it is just too expensive to live.

There is hope that Federal minimum wage will increase to at least $9 per hour by 2015, however there is a lot of push back on this decision from business owners because they are concerned they will not be able to afford the higher pay rate.

Getting Started with Green Investing

Greenhabbing, or green real estate investing, is the future. It’s so new, I should probably describe it to you.

Greenhabbing is the idea that a property is more valuable if it is more energy efficient and healthier. For the average investor, it can mean making simple changes that make things work better and emit less toxic chemicals. There are some simple rules for greenhabbing a property.

The materials that you use should be from sustainable sources that don’t emit toxic vapors.

The property, once you have it all completed, should cost at least 30% less to operate than a comparable property.

It should have less environmental impact than a “normal” property.

Making these changes can be as simple as installing a new heating a cooling unit. You can replace the carpet with natural fiber products or from sustainable sources, like bamboo. New windows made from sustainable products can make the home much lass expensive to operate.

So how will you choose a good greenhabbing investment? Simple. Here are the basic guidelines:

•30% less to operate
•Nontoxic, sustainable products used in construction
•Reduced environmental impact
•Healthier living environment
•At least a 10% return on investment

Here’s what I believe – I think that if the whole world was greenhabbed away from the inefficient designs of the past, if everyone took the time to take the toxins out of their houses, we would all be better off.

A greenhabbed home costs less to operate. The people inside will be healthier. This could change a lot of things. Energy cold be less expensive. Health care costs could go down.

As an investment, greenhabbing can provide massive returns. If you change a house to being greener, you will be able to sell the house for significantly more than you bought it for. You can also expect to see lots more potential buyers.

One of the best ways to get money out of a greenhabbing project is to look for the rebates, tax credits and incentives that are offered by governmental bodies and corporations to build a green world.

So, how can you choose a good house to work on? Start by looking for homes that are a bit older but not ancient. Make sure that the house is structurally sound. Before you buy the property, you should figure out which parts of the home you are going to greenhab. You will want to make sure that you can greenhab the property well and quickly enough to get your return on investment.

Learning to turn a profit on greenhabbing can potentially be nothing more than keeping your eyes and your mind open. Most importantly: you need to bring as much passion to your project as you do construction know-how.

Greenhabbing is all about building a better world while we are building better individual homes.

Good luck and think green!

5 Tips Potential Buyers Would Give Sellers (if they could)

It is rare in today’s market for a buyer and seller to meet at any point during the selling process.  We leave the marketing and selling in the trusted hands of our realtors and they make the magic happen.
Even when you have the utmost faith in your realtor you sometimes you need a bit more motivation to make your home appealing to potential buyers.  If you could only have the chance to hear what potential buyers have to say about your home, you could make it more desirable.

The good news is—your realtor does hear what buyers are saying and can pass this along to you!  Below are a list of tips created by the most common comments and suggestions potential buyers want sellers to know:

Tip #1 Look At Your Online Listing

You selected a realtor, you know that pictures will be placed online for marketing, but do you ever look to see how they turned out?  You would be surprised by how many buyers won’t even view a house unless they like the online pictures.  Since you know your home better than anyone take a look at your listing once it is online and give feedback and suggestions on the pictures.  Consider things such as:

• Does it represent you house well?
• Was their poor lighting that day?
• Were there any messy areas that are in the background of the photos?
• Are there enough photos to make a good impression?
• Would you want to buy your house if you saw the listing and photos?

Give your realtor input if you think there is improvement in the picture arena.

Tip #2 If Someone Is Overly Critical, They’re Interested

While you typically aren’t home when your house is being presented to potential buyers, sometimes a buyers comments get back to you.  Like the couple who criticized your flower beds, your paint color, and your carpeting.  You’re human and it’s your home they are talking about so it can be upsetting to hear—but if they weren’t criticizing they don’t care.  If they don’t care they won’t buy.  More often than not the overly critical potential buyer becomes your actual buyer.  Their criticism comes from their vision of making your home their home.

If criticism gets back to you from the neighbor that overheard, let it go because that just might be your buyer!

Tip #3  One and Only

Shopping for a house is not like shopping for a new blouse or tie—if you find two when you went to the store you can buy both right?  However this is not the case when shopping for homes.  When someone is looking for a home, they only need to find one they like, one that is the best fit.

Keep this top of mind when you are prepping your home or maintaining any home you plan to sell in the future.  If you don’t keep up with the little details, a buyer may find a similar home in the same price point that has that little something extra—enough to chose a similar home over yours.

Tip #4 Not Everyone Wants To Negotiate

As sellers one of your strategies might be to overprice your home so that you have room to negotiate down to what you are willing to sell for.  This strategy may work in your market, but it may be a deterrent in your market too.  Make sure to discuss this with your realtor to decide the best plan of action when pricing your home.

You have to remember that your buyers search online by price ranges.  If you are too overpriced from what you are willing to sell for, your home may not even show up in search results.  The other deterrent is that some buyers really don’t like to negotiate.  If you are extremely overpriced, many buyers won’t even waste the time to look at your home because it is too far out of their price range.

Bottom line—leaving wiggle room is good, but too much can detract buyers.

Tip #5 Staging Is The New Standard

Magazines, reality TV, and home improvement shows have created exceptionally high expectations when it comes to staging a home.  Staging is now a must and is far more than just cleaning and picking up around the house.

When staging, think of your home like the page of a magazine instead of a living space.  Many buyers are hiring professional stagers that will guide you to make the necessary changes—new paint, new carpet, décor, furniture, and minimalize everything.

If hiring a pro is not in your budget read up on staging and take a critical eye to your home.  Don’t think of your home as “your” home when staging.  Think of it as the advertisement that is clean, crisp, declutter, and modern.

To increase your odds of a faster sale listen to these tips from buyers.

The Latest Celebrity Home “Must Have”

Celebrity homes always have the latest and greatest features that most of us dream of in our homes.   Full sized tennis courts, movie theaters, helicopter landing pads, and Olympic sized pools.

The newest celebrity must have is full-sized basketball courts!

We’re not talking about the hoop above the garage—we’re talking about a full court with court markings and everything – Even a bench for players that are waiting their turn on the court.

It’s not just Hollywood’s basketball pros that are having courts installed, it’s you’re A-listers too.  Celebrities like Will Smith, Selena Gomez, Jamie Foxx, and Leonardo DiCaprio enjoy a full-sized court in the comfort of their own homes.

In 2012 alone a shocking 21 homes sold with full sized basketball courts in Southern California.  So far this year there are 13 homes with courts that have sold.  And as more celebs install courts we will see this trend continue to rise.

The full sized courts are not welcomed with open arms by all of these celebs neighbors.  There have been complaints of noise and concerns that the large courts are an eyesore that will decrease residential value.  Nonetheless celebrities are trend setters.  While we may not all have the room or finances to install full-sized courts, you will see non-celebs begin to up the ante on their home courts.

Tax Break Tips For Home Owners

Before we know it  April 15th will be here and our taxes will be due.  If you are a home owner you may be eligible for some additional tax breaks that you aren’t aware of.

Before you meet with your accountant review this list to see below to see which itemized deductions you qualify for. Then bring any pertinent information to your appointment.

Tax Break Tip #1 Interested Paid At Closing
On your closing statement there is typically a line called “home mortgage interest”. If you purchased a new home for less than 1 million dollars, you can add the interest you paid to your itemized deductions. This would be included on a Form 1040, Schedule A.

Tax Break Tip #2 Property Taxes
The key here is that the property taxes you are paying are for the true assessed value of your property. If that is that case you are able to deduct state and local property taxes. The exception is if you have money that is still in escrow that is reserved for property taxes.

Tax Break Tip #3 Home Office
As more and more of us are working from home, we are now able to file for deductions for our home office of our small business. The key here is to have an official space within your home that is used exclusively as your place of business. If you meet these requirements you can deduct office supplies, repairs, upgrades, insurance, and depreciation.

Tax Break Tip #4 Fees For Points
If you paid points when you obtained your mortgage, you can deduct the fees. You just have to make sure that all of the fees are associated with your purchase. If you refinanced your mortgage you should talk with your accountant about the fees for points that qualify as a deduction. The deduction is a bit different with a refinance as the points must be deduced over the term of your new mortgage.

Tax Break Tip #5 Sales Expenses
As we all know there are always investments that need to be made prior to selling your home. You can include any costs, fees, and repairs associated to the sale of your home that you incurred within 90 days of your sale. This includes title insurance, broker’s fees, staging expenses, and advertising expenses.

Tax Break Tip #6 Interest on Home Improvement Loans
If you took out a loan for “capital improvements” on your home you are able to claim this deduction. Capital improvements include and improvements that add value to your home such as adding an extra room or new plumbing. Things like painting, changing carpet, and redecorating are not qualifying deductibles.

Tax Break Tip #7 Interest on Construction Loans
This deduction is only applicable if you take out a construction loan on your primary place of residence or second home. This deduction will only cover the first year of your loan, even if the construction project extends beyond one year.

Tax Break Tip #8 Home Insurance Premiums
This potential deduction is one you will want to bring to bring to your accountants attention as the qualifying terms are a bit tricky. You may qualify to deduct your premiums for your primary residence and second home, if your income falls within certain parameters. Check with your accountant to see if you qualify.

As tax laws and criteria to qualifying for deductions are in constant flux, check with your accountant to ensure you are maximizing your deductions.

Real Estate is a Service Business and Service Matters

Today’s high-tech world has us all juggling multiple means of communication—cell phone, work phone, voicemail, email, text, IM, BBM, and social media.  

There are so many ways to communicate and the internet has made us so easily accessible that the sheer volume of incomingcommunication can be overwhelming. When we get overwhelmed customer service can easily get lost in the shuffle.

Many of us don’t work from an office full-time and have to respond to our clients while on the go.  Even with all of the demands on our time we have to make sure that we hear our customers needs.  It is beyond just listening, we must listen with the intent to learn something and not with the intent to simply check one more response off or our “To Do” list.

You could be providing the best services or product available, but if your customer service is lacking your clients will go elsewhere.  

Your clients can sense when your response is rushed,sloppy, or a canned.  Focus more attention on giving your clients, collegues, family, and friends a personalized response.  

Whether personal or professional, listening to learn will extend the longevity and quality of your relationships.

Home Fashions Come, and Home Fashions Go

Ever-changing Interior Design Trends

Interior design trends are similar to clothing trends.  One day a 1930’s dress is vintage the next day it’s a “modern take on a classic style”.  Interior design trends are the same—everything old is new again, and soon the new will become old.

Take a look back at the decorative changes you’ve made over the last decade or so.  When you painted your dining room and got a new dining room set  your previous set was probably in great condition, but the room was no longer on trend.  It was time for the Victorian to be replaced with Contemporary.

I remember my mom’s great excitement over her beach themed seafoam green bathroom with shell motif.  At the time it was the envy of all her friends. Now I just can’t imagine such a thing when not at an actual beach—and even then I’m not so sure anymore!  

The popularity of home improvement and home interior TV and magazines has peaked our creativity and challenges us to stay on trend when it comes to interior design.  Interior design trends have one constant, they will change and evolve and we will continue to update our homes as they come and go.

The Concept of Time in Real Estate

Buyers and sellers always ask me questions about time.

How long will it take to sell my house?

How long will it take the seller to respond to my offer?

How long will it take to find the right home?

None of these questions have answers.

We can make an educated guess as to how long it will take to sell a home based on market conditions and price.

We can not predict how long it will take a seller to respond to an offer.  In general they should respond quickly but there are obstacles like jobs and illnesses that slow the process down.  Sellers usually respond more quickly to really great offers than to offers they don’t like.

As a real estate agent practicing business in a crazy market like Los Angeles,  I like to let my clients know what to expect, and they need to know they can expect most anything.  We can never predict what another person will do, we just know what they are supposed to do.  Remember, I am a facilitator of your real estate transaction, but you are and always will be the decision maker.  It is my job to educate you and give you guidance based on my experience, but you make all of the decisions.

There are many reasons for being slow to respond to an offer or a counter offer but there is no good reason for not communicating to other agents or to clients if only to say this is going to take awhile, yet often people will not take the time to communicate this, instead the avoid the situation or the client.  Is that the type of real estate agent you want to hire?

Adding a Guest House – the Single Best Improvement you can Make to your Property

What is the best improvement you can do to your home to increase the value? Add an in-ground pool? A hot tub? New windows and siding? Nope, none of these.

The single best improvement you can make to your home and land is to build a new house – a guest house.

The economy has been limping along for a while. Because of economic difficulties or choice, family members are living together longer. Grandparents are living with their adult children. Children are staying with parents through college and longer.

Even for those who are doing well, having a separate house for a nanny can make the job much nicer for the nanny and the family.

The best part of a guest house is that it adds value without having to make your existing home a lot larger and it’s a lot cheaper to do. Because a guest house would has its own bathroom, bedroom and kitchen, anyone living there can live a completely independent life.

Perfect for every need

For aging parents, this can mean years of complete freedom while still being close enough for family to help when it is needed. An elderly mother or father can live in one of these small houses easily. Since there is generally not a lot of square footage, the house is easy to clean and maintain. Generally all one floor, there are no stairs to negotiate, eliminating some of the worries of falling down.

Adult children are finding it harder and harder to get a start in the current economy. Jobs are harder to find and housing, especially without a lot of credit history, can be very difficult to afford. A guest house can give them the freedom they deserve while allowing them to still live at home. Because they are in a completely separate house they have all the privacy an adult needs, without the expense and hassle of moving away completely.

Nannies and servants will feel more comfortable having a private space that they can retire to at the end of the day. Not needing to be in the main house means that they can feel like their work day is actually ending, as opposed to being just down the hall from the children or family that they work for. You will be much more likely to get a higher quality of domestic help if they have their own space to live in.

Maybe you just need a place for family to stay when they visit, or a home office away from the kids and the bustling house? After all, that was the original function of the guest house, wasn’t it?

Increase your property value

Property value is almost guaranteed to increase substantially. Because family situations and living arrangements have changed so much of the past few years, there are hundreds of thousands of people in need of guest houses looking at real estate every day.

If you find yourself selling your property, you will be able to accommodate those people who are coming onto the market with the need for a guest house. These buyers won’t need to worry about having to live together in the main house while they build a separate house.

Putting up a guest house

There is a couple of ways to get the new house onto the property:

First, of course, you can build it right on site from scratch. There are all kinds of floor plans available on line for free or nearly free. Since they are one story houses and not very complex, it’s very easy to find plans that are suitable.

The second way to put a guest house on your property is to purchase a prefabricated house and have it delivered to you. There are several companies right in California. These pre-fab homes are great quality and some of them cost less than the price of decent new car.