Wish Lists

Here we are in the middle of October and 22 properties have closed in our MLS between August 31^st and today. They range in price from $533,000 for a North Jameson Road 3 bedroom/2 bath condominium to $4,900,000 for a 3 bedroom/4 bath home with guest house on Olive Mill Road. There were 3 condos sold in this period. Homes below $1 million accounted for 3 sales; homes between $1 and $2 million totaled 7 and included a home on Riven Rock Road that started at $3,200,000, closing at $1,662,000 and one in Birnam Wood that included 2 legal lots closing at $1,825,000. Another 5 properties closed between $2 million and $3 million including one on Alcala that was only on the market for 3 days and one on Camino Viejo that was only on for _____days. In the $3 to $4 million range there were four homes that sold including one on Romero Canyon that started at $4,499,000 and included 4 acres which closed at $3,300,000. The last two closings were at $4,850,000 and $4,900,000. The one at $4,900,000 illustrates an issue that has become more and more pervasive over the last decade. The sale included all the furniture, rugs, and potted plants….according to the listing agent it included everything except artwork and the seller’s personal belongings.

More and more buyers are writing their wish list into their offers and expecting sellers to be not just willing to sell their things but to also be negotiable on them. When homes are professionally staged, this doesn’t present a problem. In fact, it is most often a win/win situation where the stager is able to sell their pieces and the buyer has a home that looks exactly like it did when they first fell in love with it.

The problem arises when buyers expect sellers to part with their own belongings. Often, this can work out as people might be selling in order to scale down, or their kids are grown and they have no further need for bunk beds and fairy princess cupboards. But, and it’s a big but, buyers can be very aggressive about wanting to include antique tables and chairs, expensive outdoor chaises and teak bars, beautiful lamps and beds, etc.

Increasingly buyers are telling their agents that their willingness to buy hinges on the willingness of the seller to leave behind all sorts of things that used to be routinely accepted as personal property. The negotiations on the price of the house are nothing compared to what goes on to come up with a price for the set of cowbells hanging next to the back door, the outdoor heater lamps, the porcelain roosters sitting on the kitchen hearth, or the chandelier which was specifically excluded when the agent first took the listing.

Sellers can be just as difficult as their buyers with this issue. I actually sold a house for over $5.5 million and the buyers wanted to buy, separately, as much of the seller’s furniture as they were willing to leave behind. After several weeks the owners came back to us with a list of what they would sell and the prices they wanted for each item. Since they were required by contract to leave window coverings, it was quite a surprise to see on their list that they wanted $50 for the custom pillow on the window seat that not only matched the drapes, but also was only going to fit the one window it sat beneath.

My all time favorite story was one told me by long time agent, Lorraine Huffman, who said she was selling a ranch years and years ago and the buyers wrote the owner’s dog into the offer! Honestly, you can’t make this stuff up.

For all of the local Real Estate hobbyists, here are the latest stats:

There are officially 18 properties which have closed escrow since June 1^st. Of those, two were condominiums in Montecito Shores which closed at $1,400,000 and $2,650,000. There were also two closings at Birnam Wood for $2,160,000 on Crocker Sperry and $2,800,000 on Forge Road. The lowest priced sale was a 3 bedroom home on Santa Clara Way that sold without benefit of MLS for $1,050,000. The highest priced closing was a home needing a great deal of updating on Mountain Drive for an even $7,000,000. We’ve also had a sale close at $16 million on Mountain and a beach property close for $27 million, without MLS. The equally exciting statistic is that there are currently 18 officially pending escrows ranging from a condo on Coast Village Road listed at $559,900 up to a home that’s been on the market for over 2 years on Glenview, last listed at $6,950,000. At least 4 or 5 additional listings are in escrow but haven’t been reported yet as “Pending.” Many agents and their sellers are choosing to bend the rules a bit and wait to show their status as ”in escrow” until contingencies have been released. This practice is frustrating for realtors working to set up showings, but eliminates the need to show as “Back on the market” if a sale cancels while in the contingency period. The ones that fall into this unofficial category at present range from another Montecito Shores condo to at least a couple of homes listed between $2,300,000 and $4 million.

The inference can be drawn that our inventory, somewhat stagnant for so long, is starting to be absorbed and others just coming on the market, but well-priced, are selling within days or weeks of being listed. In addition, these sales are, in large part, properties needing work. It means contractors and their subs will be back in higher demand than they have been over the last 18 to 24 months. The quietest segment of the market during this same period has been empty lots. When there is so much finished inventory, the incentive to build diminishes. But there are currently some great lots, many with approved plans, which would allow a buyer to build a dream home, often with the ability to break ground the day escrow closes.

These recent statistics seem to reflect a combination of objectives that bode well for a healthier market. Buyers seem willing to once again invest in updating and renovation in a good location as opposed to only buying properties that were completely done.

Of particular interest is Birnam Wood, which charges a Corporate membership fee of over $75,000 to anyone buying a home who isn’t already a member. This Club has seen a resurgence in the last couple of months. There is a younger demographic of current or soon to be empty nesters looking for and buying homes here that they plan to either rent out for the next couple of years, or use full time while they travel and start a new phase of their lives. Both Birnam and Ennisbrook have also attracted some well-known individuals hoping to live here under the radar in locations providing an added layer of anonymity.

Birnam Wood, being the only true golf and home community in Montecito, has always appealed to a very specific set of buyers. In general, buyers looking in Montecito are not here looking for a gated community and, those who are, have tended to be an older group of retirees, often buying as a second or third home. Although there are no age restrictions, the lack of a community pool and the higher age group has made Birnam less desireable to young families with children. Recently, a great many local residents who have sold their homes and who are opting for an easier, more scaled down lifestyle, have chosen to buy at Birnam. The food at Birnam Wood has long been considered some of the best in town, and the recently renovated dining facility lends itself to a more casual lifestyle than the Club presented in years past. Not quite the recent radical change of the rules seen at Montecito Country Club, allowing denim to be worn, but more relaxed than ever before. Another of the subtle changes happening within Montecito as people buy and sell their homes, while at the same time choosing to maintain a local presence, just in a little bit different location.

How do I sell my home?

So many people are thinking about putting their homes on the market but aren’t sure what it will take to get that accomplished. The perception is there is so much on the market that this isn’t the time to sell. However, so much depends on your ultimate goal and on your individual situation. For instance, if you purchased your home twenty years ago, and your home is in good condition, without inherent problems, you might still realize some profit and, if priced right, could sell in a reasonable amount of time. Or, if your goal is just to get it sold and move on, get your home looking fabulous, price it right, and you might be packing sooner than expected. Right now, in any given price range, there are only a handful of homes a good realtor is going to show their buyers. None of us want to waste our client’s time so we will select only those homes that clearly meet their needs, represent value, and quality.

Here are some, hopefully helpful, hints to make it easier. Many will seem overly simplistic, but each is an important factor in getting a property in “show to sell” condition. This is true for homes in every price range:

• Start by taking a walk from your driveway to your front door. ? The old adage that you only have one chance to make your first impression holds very true for showing houses What do you see? Are there things that need to be put away? Is the doormat fraying and falling apart? Is the paint chipped here and there. What does the walk from the car to the front door say about the condition of your home? Look at it with Buyers’ eyes and you may be really surprised.
• Put away absolutely as much of your personal belongings as humanly possible. This includes personal photographs, knick-knacks, and as much of your “stuff” as you can live without. Take away everything you think should go and then take away more. Whatever you collect, teacups, old time dolls, antique toys, etc. will be a distraction, not a selling point. You will be taking those things with you.
• Clean everything.
• Paint everywhere that looks dirty or dingy. Paint is the cheapest way to upgrade a home. Fresh and clean goes so much further than anyone can imagine.
• Make your home as light and bright as possible. If your trees are blocking light, even if you like them full, get them trimmed. If you have a dark room that doesn’t bother you, rest assured it will bother your potential buyers. Make sure all your bulbs are in working order and if you have a dark area, consider purchasing a torchere style lamp. Even one of this type of lamp can light up an entire room. 99 out of 100 buyers want lots of light.
• Buy new doormats. Buyers will be going in and out of your home and won’t want to leave outdoor residue on your floors.

One other suggestion….carefully consider what you want to take with you before going on the market. Furniture and furnishings are killing deals all over town. If you have things you love that are attached to the walls, such as a favorite chandelier or Aunt Ida’s mirror, replace them with ones that don’t matter to you before showing it to buyers. Inevitably, those will be the critical items someone must have if they are buying the house. It can literally kill your deal.

Often people overlook what isn’t serving a purpose or whose purpose has passed….i.e. empty pots or pots with dead/dying plants. They don’t see what needs replacing….i.e. teak patio furniture which needs oiling and pads that have seen too many seasons. Replace it, pack it up and store it or give it away. All of this holds true for the smallest condo as well as the largest estate.

Montecito is a very small town and there is currently a solid, albeit not thriving, market. Buyers are for real, they want to buy…what’s missing is any sense of urgency. But when they see what they want, they are ready to purchase it. The clients looking now understand the combination of depressed prices and historically low interest rates will not last. Have your home looking its best, price it right, and you could be a buyer rather than a seller sooner than you think.

I'm realizing that agents and buyers alike are losing sight of the true value of Montecito and instead are almost unconsciously buying into the price game. Buyers are fixated on the prices of properties and are taking their agents with them and the unfortunate result is that many people who have the means to buy quality homes are instead choosing lesser properties because they feel they are getting "a deal." Instead of looking for a home that offers the most in terms of the basics....location, quality of finishes, amenities, floorplan, people are basing their decisions on where they will get the best deal. Buyers are so focused on not overpaying for a home that they are forgetting that they will be LIVING there! Say you have the means to buy a home for up to $5 million. You see a couple of homes that offer 4 or 5 bedrooms, hardwood floors, gourmet kitchens, fireplaces inside and out, expensive finishes and landscaping, etc. While you're looking, you are also shown a house that has a challenging floorplan, no pool or room to put one in, a so-so location, but it's also newer and priced in a similar bracket as the first two. But the seller of the third house is desperate....that seller will make a deal. You and your agent decide to go for that house as a hedge against any future downturn in the market. What is the missing element? What isn't being factored in? How about the idea that you have to LIVE in the house. On a day to day basis, you will be living in a bargain but you will have given up the opportunity to live somewhere you love...This potential buyer could have afforded any of these homes but decided based on getting a deal. "But what if the market goes down again?" So what?....real estate is cyclical just like the stock market....it goes up and it goes down. I don't know anyone who bought their home in the early 1990s who isn't still smiling....So what if there's another dip....you'll be living in Montecito in a beautiful home and enjoying a lifestyle that's unparalleled in almost any part of the world. If you're paying $4 million for a home, will it really affect your day to day living if instead you've paid $4.2? How much will it cost you when you realize you've made a mistake and should have bought the house you loved and then you have to sell your "bargain" and go back and try to find something else you actually love? Add in closing costs and commissions and you would have been better off going with your heart in the first place.

Price is just ONE PART of the equation....what about location, amenities, views/setting, and any upside potential? In recent times those aspects have been tossed out and the only focus has been placed on price. We all....buyers and agents alike, need to remember, the goal of buying a home=living in a home. Why choose something that offers you less day by day by day just to say you were smart and "saved" some money. What is the price of your everyday happiness? Montecito is all about quality of life....I personally think it's time to remember what that means.

Musical Instrument Drive in Montecito

Musical Instrument Drive

Donate your musical instrument to a Santa Barbara area student!

In connection with the Michael McDonald concert December 8th at the Granada, the Santa Barbara Education Foundation, The Granada Music & Arts Conservatory, the Santa Barbara Bowl and NotesforNotes will collect new or used musical instruments which will be distributed for use by students in our community who can’t afford to purchase their own.
Music education in Santa Barbara is alive and well!
Help young musicians by providing instruments you no longer need or use. Strings, woodwinds, brass and percussion will all be put to use.

We will collect new or used musical instruments from noon-9:00 pm on December 8th in front of the Granada. OR we will pick the instrument up at your home, school, or place of business between December 1-7th. Please call 805-618-1021 to arrange pick up. Your donation is tax deductable.
Concert Information:
Legendary performer and 5 time Grammy winner Michael McDonald will be joined on stage by local student musicians in a benefit for the Santa Barbara Education Foundation and music in our schools. “An Evening of Holidays and Hits”.
Tickets available at the Granada box office and on line at http://tickets.granadasb.org/calendar/view.aspx?id=629 .
Prices from $39.50.

Welcome To Montecito Maven!

New Shop Opens in Upper Village

This Little Piggy has now opened in the Upper Village. It's located above Glamour House and the Stationery Collection and just below the new and enlarged Imagine (my favorite spot to browse).