A Learning Lesson from Hearst Castle

I’m just back from spending a week on my native soil – in California with my family. Along the way, I stopped to visit the famed Hearst Castle, perched upon a high hill overlooking the Pacific Ocean. I’d never actually been there before, and knew mostly of the Hearst name via the weird kidnapping of Patty Hearst, who subsequently joined the Sybionese Liberation Army and conducted armed robbery of banks. I later became familiar with the Hearst name as a major publishing empire that it still is today.

My visit to Hearst Castle dispelled some myths about W.R. Hearst as being a recluse as depicted in Citizen Kane. With its opulent Neptune Pool, ornate tile work, impeccable landscaping and state of the art earthquake technology, one might think this large sprawling hilltop estate might set the trend in home fashion and décor. Not necessarily the case.

There is no doubting the love Hearst had for his hilltop home with an ocean view so vast one can practically see China. His tastes were largely influenced by childhood visits to Europe, and he later bought enormous artifacts, works of art and sculpture, and general concepts, and had them constructed into the home. One might say he had an eccentric flair with eclectic tastes… and I marveled at how little expense was spared in obtaining the precise look and feel he wanted in his home. Another thing that is abundantly apparent is that he tended to change his mind, not only once or twice.

While I awed at the entire estate, it’s not exactly what I might look for in a home if I had some $80 million burning a hole in my pocket – that is, if the state of California were to have an estate sale.

For all that the Hearst Castle makes up for, I dare say it would discourage purchasers because of two things: 1) the taste of the estate is too tailored to Mr. Hearst’s liking; and 2) the home has many projects that remain unfinished.

Now, lest you think I am unimpressed or unfavorable to one among giants in real estate significance, I beg to set the record straight: I was – and continue to be – enchanted by it. But, as a Realtor, if I could serve up a dish of critical assistance to any consumer, it would be that creating a home that suits your very specific needs is commendable and encouraged by many-an-HGTV-show. It isn’t always what others are looking for, though. So bear in mind that if you have eccentric tastes in design and décor, best to invest some time and money to “rebland” – or tone down – your property before deciding to sell it.

Another good piece of advice is: never start a new project without first completing the last one. If a buyer were to walk into unfinished room after unfinished room, he or she might become overwhelmed by all the work needed to make the home completely livable. Remember the saying: “Your eyes are bigger than your stomach?” … or “You’ve bitten off more than you can chew?” Well, if you leave projects behind for your prospective purchaser, you are simply leaving yourself open to a major decrease in forthcoming offers and also a decrease in your sales price. Incomplete projects add up to big losses for sellers, and add further discouragement to purchasers.

In the end, every home should be a castle – customized to your heart's delight. But it might be wise to invest some time researching what adds value to your resale. In other words, learn what trends are currently popular to parties buying real estate. And, for heaven's sake, follow through on completing projects before setting out on anything too ambitious. A completed home is better to live in and also better to buy or sell.

That’s My 2 Cents’ Worth!

April Showers Bring May Neighbors?

Okay, so I'm a hopeless romantic at heart... especially as the springtime weather abounds with pink cotton candy of the cherry trees. This weekend brought a wonderful combination of warm sunny weather on Saturday - enough to mow the lawn and get some critical garden work done - for which I am very sore! The temperate Saturday filled with necessary yard work was followed by a chilly, drizzle on Sunday. And as I peered out from the window of the nicely-appointed home for which I sat for an open house, I couldn't help but think "what perfect weather for some lucky family to find their next place." It's true - the weather was neither nasty enough to stay home, nor nearly nice enough to enjoy the outdoors.

I paced the Silver Spring neighborhood of Four Corners, and must have chatted with more than 20 groups of guests coming to see the home - some for the second time. The second-time visitors who had been attracted enough to the home on their first trip were finding even more attraction in the home with its new price tag - at nearly $30,000 less than the original asking price.

For me, the most remarkable point of being in the home and talking about the various features with our guests, was seeing the neighborhood at work. These visitors were being scrutinized and even interviewed out on the street by the neighbors. There was a mutual curiosity. From the potential buyers: "What are the neighbors like? What's the area have in store for us?" From the current neighbors: "Who will be living here next? Do they have kids to play with my kids?"

It was really nice to see my open house was serving as more than just a preview of this great home at a great price. It was an opportunity for the critical social interaction that would surely be a welcome home to any of the open house guests.

Buying a home is a critical step filled with many processes and factors. Aside from knowing one is buying a wonderful, accommodating home, it is also really important to establish a level of welcoming comfort in the neighborhood in which the home is located.

Between current neighbors and potential buyers alike, I was thrilled to see interaction yesterday. A Realtor can do a great amount of work either to help his clients buy their dream home, or to sell their former dream home. But the service the Silver Spring neighbors provided yesterday in talking with prospective buyers was what I would consider priceless.

This is in stark contrast to an outting I had a few weeks back with some clients of mine who are looking to buy their next home. We had been reviewing one particular home for no more than three minutes when someone barged through the front door and hollared, "Who's here?" I began to introduce myself but was abruptly cut off by an angry man. "You don't belong here and you're blocking my driveway," he shouted angrily. Now, not only had I made a call to this home, leaving a message about our pending visit nearly four hours earlier, but I knew I was in the right home because we had only gained entry after obtaining the house key from the lock box. My clients quickly exited the home and sat quiet and nervous in my car as I pulled out of the driveway. I was then accosted by a woman, the angry man's wife, and told that I had no right to be in their home without having spoken with them first. I offered my apologies and recommended they reach their agent to change the terms of showing their home by appointment only, and quickly returned to my car with my clients, who vowed never to return.

And as we drove away, I was stunned. In this market, many people are employing creative new ways to sell their homes. Sometimes it's the neighbors who do the best job of selling a home. Likewise, sometimes it's the owner who can do a home sale's greatest diservice.

That's My 2 Cents' Worth!

Washington, DC's 2008 Housing Outlook

This week's Washington Post includes the publication's annual assessment of the real estate market throughout the Washington Metro Region (see: http://www.washingtonpost.com/wp-srv/realestate/features/2008/housing-outlook/ ). Just as much as I relish the smell of fresh garden mulch in the spring time, I always look forward to the arrival of this special section because it helps me determine how much my home has appreciated (or not!) over the last year... according to my zip code. In addition to specific findings on home sale performance in Washington, D.C., Arlington County, City of Alexandria, Fairfax County, Montgomery County and Prince George's County (and all those other "further out" counties), The Washington Post cleverly adds a visual appeal - maps!

As mentioned, I love me some Washington Post (especially the Real Estate section) and, honestly I mostly like these maps because they seem to indicate to me how much my home value has changed over the last year. Trouble is, the maps, broken into zip codes are not a true representation of how the real estate market operates. Firstly, real estate is local. There is no national real estate market. The auto industry, for instance, which has a stronghold over Detroit's economy (and housing market) has no such hold on the DC market, though some factors may have an impact on both markets. So, to take that a step further, if we recognize that all real estate is local, to say that two neighborhoods in the same zip code are performing equally simply because they are in the same zip code... this defies logic. The truth is, two adjacent communities can perform in polar opposites. My zip code shares four communities with multiple legal subdivisions - some performing lowly and some performing highly. Your community may share fewer or more communities.

My point is - and I do have one - if we want a clear image of how our area's housing market is performing, I think it's high time we look a little closer than those colorful maps sorted by zip code. If it is not The Washington Post's duty to provide a clear look at the market under a miscroscope, then certainly your friendly, trusted Realtor can get you there by helping you analyze home sales in your legal subdivision... and all the way down to your block, because THAT is how local real estate can be.

And for the record, this week's special section indicates that my home value increased 2% to 4% over last year. You can imagine my state of flumux over the fact that my home, which is on the market for sale, will likely sell at or below the price I bought it for more than three years ago. Yes, even Realtors are grappling with our own real estate woes, and The Washington Post's zip code maps are of little help in providing me or my home's next owner with an accurate idea of its value.

And, by the way, Washington, D.C.'s housing outlook for 2008 and the long run will continue to be fueled by job growth, which will keep home sales from a complete slump, though it is obvious to say it is definitely a buyer's market. If you are a buyer waiting for the bottom to drop out, we're just about as low as you can go, but you may want to weigh the fact that mortgage interest rates are expected to rise steadily through the end of the year.

That's My 2 Cents' Worth! 

Welcome to My 2 Cents' Worth!

Mi casa…
“My house is your house” is said frequently among friends and family. Likewise, in my real estate practice, my team is your team. I have been extremely fortunate to have found myself allied with some of the best, most principled mortgage lenders, settlement companies and home inspection professionals in the industry, not to mention some of our area’s most talented market statisticians and home improvement contractors – everything you need to buy or sell your home.

As a kid from Southern California, I first visited Washington, D.C. in 1981. Drawn by its buzz, I moved here to stay ten years later and have enjoyed watching our metropolitan area grow and thrive. I watched and enjoyed as Bethesda, Arlington, Dupont Circle and other neighborhoods transformed from outskirts to urban hubs of work, home and nightlife.

My 2 Cents' Worth is designed with a mission to offer superior advice and market knowledge from a broad spectrum of real estate professionals. My aim is to help inform the consumer - whether buyer, seller or tenant.

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