Stage Three: Seeing Through The Veil

DeadlineNews.Com Special Report 3 of 3: Staging, designed to embellish the look and feel of a home for sale, can also be used to conceal what's real. Brokers advise buyers to look beyond the staging.

• See all the Stages of Staging

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - In the brave new money-tight world of housing, the growing inventory of homes is prompting more and more sellers to stage the deal so it stands out from the pack.

The same shrinking housing market that's putting lenders out of work, is cashing fat checks for stagers who transform houses full of drab rooms into model homes that rival those in a newly built development.

Those who ply the trade say staging is where art meets the real estate deal.
However, a group of real estate brokers are warning buyers a blank canvas may be a better deal than a contrived masterpiece. Not only can a well-staged home put sparkle in buyers' eyes is can also be used to insidiously conceal defects, according to National Association of Exclusive Buyer Agents (NAEBA) whose members exclusively represent buyers.

Staging is to the interior of a home what curb appeal is to the exterior -- nipping and tucking, furnishing and accessorizing, buffing and polishing until the place looks like a model home -- without being too clinical. Staging can also include curb appeal -- that same love-at-first-sight appeal applied to the exterior to give a lasting impression and motivate buyers to cross the threshold in the first step toward closing the deal.

With just the right special effects, staging can transform a home into a house of dreams and help potential buyers visualize potential. Done wrong and a home can become a house of screams. Done at all and it could be a red flag, according to the NAEBA's "How To Not Get Tricked By Staging And Potentially Save $5,645 When You Buy Your Home" a report with an over-staged title.

The NAEBA concedes honest staging can net sellers more cash and faster sales. The report cites a 2003 HomeGain survey of 2,000 real estate agents who said for the relatively small expense of cleaning, decluttering, lightening and brightening, and home staging, home sellers realized an average increase in sales price of $5,645 -- typically more than the cost of staging.

That's because staging tugs at heart strings which, too often, are connected to the purse strings. Paying more doesn't actually make the house worth more.

Without actual code-complying home improvements, professional painting and the like, staging alone does nothing to improve the value of the home. Once the home is sold, the stager strikes the set and the pieces go back into storage.

"The biggest concern for home buyers is that the staging effects can make a home seem more appealing to the eye. However, the staging does not add square footage to the home, improve the home, improve the quality of the fixtures, improve the quality of the construction, increase the desirability of the floor plan or the views or the neighborhood," the report said.

That's the least of it.

The NAEBA also said 82 percent of its surveyed brokers and agents said buyers typically got distracted from important issues when viewing a staged home.

Visual tricks used to create the distraction included:

• Using small furniture to make a room look larger.

• Placing items to cover up problems, such as rugs hiding damaged floors, lavish curtains covering rotted window sills and artwork hung to hide wall cracks.

• Painting to cover defects and cheap paint jobs that will soon need repainting.

"The whole intent of staging is to get the buyer emotionally involved with the home. Our member agents want home buyers to see things logically, to 'see past' the staging," said Jon Boyd NAEBA president.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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Stage Two: Virtual Staging

DeadlineNews.Com Special Report 2 of 3: It's not as simple as taking a few photos and writing flowery prose to virtually stage a home for sale. Here's how to make your online listings sing.

• See all the Stages of Staging

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - Freeland, WA-based Barbara Moran founded a virtual staging company, Virtual Staging, virtually by accident.

Virtual staging typically includes online photos, videos and other images of a home for sale, but can include any marketing images of the listing and the text that goes with it.

Not long ago, Moran, by trade, an online content expert and author of "Crafting Multimedia Text: Websites and Presentations" (Prentice Hall, $21.40), was watching a friend browsing for housing.

"My friend would click through various slide shows for listings and if she saw one slide she didn't like, she'd leave the listing entirely. I wondered how many other potential homebuyers made major decisions about contacting a real estate professional based on the quality of the online slide show and its descriptive text," Moran said.

Apparently, quite a few.

In several informal focus groups, Moran asked participants to pretend to look for their dream home. They repeatedly passed on listings based entirely on one bad photo or on boring text in an online listing.

"That's when I thought I might be helpful," said Moran realizing many of the principles she covers in her book are unknown to most real estate professionals.

Virtual Staging was born to teach real estate agents what she and good Web designers already know: content -- good, eye-catching and revealing content -- remains king.

"I was shocked at how easy it was to find truly bad examples," she said.
Her Web site contains digital photo examples of the good, the bad and the very ugly including:

• A gloomy photo of a home's lake view by day, turned brilliant when photographed at sunset.

• A photo of a cluttered kitchen with refrigerator magnets as the focal point is compared to another kitchen, this one, uncluttered, well lighted and inviting.

• A photo that shows nothing but white walls, a closet and a door. Doh!

• Out of focus, too dark and too light photos that are hard on the eyes.
Moran offers five free evaluations. She will examine any existing or upcoming listing, email the listing agent an evaluation of the photos and written content, and offer suggestions to punch up the marketing.

Subsequent evaluations are $50 per listings with discounts for 100 or more evaluations.
She also offers year-long exclusive contracts to give agents willing to pay the fee a competitive edge. Only one agent in a defined market area is entitled to purchase an exclusive territorial contract.

Current clients without territorial contracts say Moran has helped them boost their sales so well they fear giving up their competitive edge in the current market and refused to go on the record and give away their location.

Moran also offers tips to those engaging in virtual staging.

• Consider security. Keep photos and expensive possessions out of the pictures.

• Don't doctor photos. Don't use image editing software to remove cracks from the wall, stains from the rug or kid's drawings on the wall. Fix the problem. Then photograph it. Use image editing to enhance photo quality, not content.

• Don't use verbiage. Don't be vague. Learn to spell. Use a spell checker. Get a writer or an editor. Spelling, grammar, and punctuation mistakes reduce credibility.

• Don't make visitors sign in. Focus groups reveal people treat "sign-in required" Web sites like the plague. "If visitors see a listing they like, make it easy for them to find you, but let them browse around first without demanding personal information," Moran said.

• Avoid mystery room photos. Online visitors want to recognize what each photo represents. Include living rooms, bedrooms, baths, kitchens, and other readily identifiable spaces.

• Freshen stale photos. If your listing has languished, re-shoot before you lower the price. New images and rewritten text may be all you need.

• Give the buyer an incentive. Consider a virtual staging Web site or blog dedicated to the listing. Free Web sites and blogs are a dime a dozen. When the sale is done, gift the Web site or blot to the new homeowner for his or her future use!

Classifieds On Steroids


Try the FREE Postlets.com, which, frankly, is what Craig's List ought to be by now for marketing homes. This amazing, create-your-own, FREE home listing Web site comes with FREE automatic search engine submissions, FREE marketing tools you had no clue could be so useful, and lots more. It's so easy, well, a caveman can use it.


Another online-classifieds-on-steroids service is already an award-winner. Vflyer.com is a similar service, with a few more bells and whistles, for a small fee.

Both are in flux, adding features.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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Stage One: Staging Takes Center Stage

DeadlineNews.Com Special Report, 1 of 3: 'Staging For The Stars' provider Beth Ann Sheperd is sharing staging suggestions designed to put sparkle in buyers' eyes and more jingle in sellers' pockets.

• See all the Stages of Staging

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - You don't have to be a star, baby to be in Beth Ann Shepherd's show (Apologies to Marilyn McCoo, the Fifth Dimension and those too young to remember.).

Sheperd is one of those "to the stars" service providers, in this case, setting the stage to position a home for sale or staging. It's a smart marketing move when it's time to move a home in just about any kind of market.

Staging is to the interior of a home what curb appeal is to the exterior -- nipping and tucking, furnishing and accessorizing, buffing and polishing until the place looks like a model home, without being clinical. But it can also include curb appeal.

With just the right special effects, the effort can transform a home into a house of dreams and help potential buyers visualize potential.

Done wrong and a home can become more like the set of a horror movie, a real house of screams.

Operating under the name "DressedtoClose," Sheperd says her clients include Black Eyed Peas' hot Fergie, leading-man actor Josh Duhamel, off-beat Christina Ricci, even the glamorous "Desperate Housewives" actor, Eva Longoria.

But you don't have to be in a music video, hit movie or top rated TV show to benefit from Sheperd's expertise.
She's offering you an exclusive peek at how to make staging take center stage in your home for sale.

Right here.

Right now.

Here's what she advises.

• Appeal. Start with curb appeal, including landscaping, doors, fixtures all that customers see upon approach to the home. Curb appeal should exude an unforgettable first impression that prompts buyers to cross the threshold.

• Enchant. The portal should generate some pomp, excitement, drama, maybe a little razzmatazz. Create a focal point with an oversized mirror, a dramatic piece of art, strategic lighting, fresh flowers or scented candles -- but not all at once. Add drama, not comedy.

• Refresh. Update worn attributes. Sand and refinish hardwood floors. Clean or replace the carpet. Pressure wash stone flooring.

• Rearrange. New furniture layouts make for a new look, feel and flow. A fire place needed be the focus in the middle of summer. A point of view to the lanai, beachfront or pool area may be a better set.

• Upgrade. Stainless steel appliances are the rage because they add the commercial look of perceived value. Toss in a glass-front wine cooler for sex appeal.

• Accommodate. Give your baths that "Five-Star" look. Add thick, white, luxury hotel towels, extra hand towels at each sink and a container of those hotel goodies -- scented reeds or scented candles, and cotton-ball, Q-Tip, holders and the like.

• Impress. Likewise treat your master bedroom like a luxury hotel suite featured in the movies. Include thick white sheets and pillows. Use a thick white duvet and duvet cover, a nice tray with reading books, scented reed diffusers (or scented candles) and warm colored walls. A ceiling-height plant adds perceived height. A nice chair and reading light or sofa seating area brings in coziness. Remove the clutter, photographs, no note pads, pens or pencils. Nothing you would not find in a luxury hotel suite.

• Reorganize. Clear the set. Remove the clutter. Put in professionally built-out closets. Closets should look good and smell good, not musty or mildewy. Your closets should look good, smell good and sound good. Rack or drawer your shoes and other accessories. Leave nothing on the floor. Add cedar blocks for scent and invest in matching wood hangars for every item of clothing to project a lifestyle of success.

• Entertain. Add a sound track. IPod music to wireless speakers. Install a plasma TV tuned to an eye-catching, replaying, high density disc of panoramic scenes. You want to present your home as modernized and updated.

• Accentuate. "Add" a subplot of square footage with dramatic effects -- mirrors in small areas, focused furniture positions, lighting, etc.

"Purchase extra-long white sheer mesh draperies and install rods around your trellises or outdoor area for that billowy drapery feeling found only in exclusive resort hotels throughout the world. This is a dynamic, fast way to provide the 'major wow' need to sell your home faster to the highest bidder," Sheperd advises.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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Mortgage Fraud Now Organized Crime Staple

Once the domain of home buying and home equity rip-offs, mortgage fraud is muscling in on foreclosures, reverses mortgages and insider trading related to mortgage securities. Here's how not to get taken.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - Mortgage fraud has become a staple in today's organized crime circles.

Fraud associated with home loans first cashed in on the greed that came with the previously booming housing market, when some buyers would do anything to own a home.

The cons used falsified applications, inflated appraisals and other techniques to get home loans approved on the home buying end.

Now, mortgage fraud is taking advantage of vulnerabilities that come with the housing market's down cycle, including homeowners, down on their luck, who face losing their homes and would do anything to avoid losing their homes.

It's a real racket.

FBI Director Robert Mueller recently testified before the U.S. Senate Appropriations panel that the "tremendous surge" in mortgage fraud investigations has been so great he has diverted agents and resources from other areas of white collar crime.

Suspicious activity reports the FBI reviews for potential mortgage fraud have grown from 3,000 in fiscal year 2003 to 48,000 in fiscal year 2007. In 2008, the FBI is on track to receive more than 60,000 such reports.

The subprime crisis will only aggravate matters, Mueller testified.

"I'm not sure at this point we can see the extent of the surge," he added.

Fraud that once primarily used inflated appraisals, "flipping" schemes and identity theft ruses to target home buying and home equity growth is now muscling in on foreclosures, reverses mortgages and subprime loans.

The FBI says known organized crime syndicates, terrorists and recognized political activists are not currently associated with mortgage fraud, but the crime does come with the hallmarks of what is considered organized crime -- collusion, conspiracy, insider cooperation and now, identity theft, one of the newest growth sectors in organized crime recognized by the FBI.

"We are investigating more than 1,300 individual mortgage fraud matters. Perhaps more importantly, we have identified 19 corporate fraud matters related to the subprime lending crisis -- cases that may have a substantial impact on the marketplace," he said.

The racketeers are also using insider trading violations connected to risky loans and the investments spun off of those loans.

On the consumer level, one of the latest cons is a bold one called "House Stealing". A con artist assumes the identity of a homeowner and transfers the deed into the con's name or sells the home outright -- even while the owner is still living there.

A variation on House Stealing includes the con artist preying on homeowners having mortgage troubles. The con promises to refinance the mortgage, but instead buys the home using a fake identity.

Mortgage fraud hotspots include California, Texas, Arizona, Florida, Ohio, Michigan, and Utah.

Now that mortgage fraud is considered a staple in organized crime circles, how can you avoid getting caught in the web of crime?

• Don't be a rube. If it sounds too good to be true -- it probably is. Debts, bad credit and other financial holes didn't appear over night. They won't magically disappear over night.

• Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques. Avoid spam come-ons and web-based advertisements promoting the elimination of mortgage loans and credit card and other debts for an up-front fee to prepare documents to satisfy the debt. Beware of offers to "save" you from defaulting on loan payments or from foreclosure. Beware of zero-down loans and falsely altered information to qualify you for a loan. Don't borrow money you can't afford to repay.

• Don't be cajoled into making false statements on loan applications including overstating your income, the source of your down payment or the nature and length of your employment.

• Ask family, friends, co-workers and others you trust who also recently completed a satisfactory mortgage, for referrals to mortgage and other real estate professionals. That applies to loan modifications, work outs and "restructuring."

• Always shop for a lender by comparing all costs and terms. Don't be sucked in by lenders who tell you they are your last chance at home ownership.

• Don't sign blank documents, documents containing blank sections or documents you don't understand. Get help from trusted individuals to go over the terms of the deal.

• Examine for accuracy recent comparable sales, tax assessments and other documents that offer evidence of a home's true value.

• Review a property's title history to determine if the property has been sold multiple times recently and within a short period. That could be evidence the property has been "flipped" which can cause artificial value inflation.

• Do your home work and research home prices in the neighborhood before beginning the leg work of home buying.

• Obtain credit and financial counseling, attend home buying classes, seminars or workshops and otherwise bone up on your home buying education before taking the plunge.

• More on real estate industry fraud.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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Successful Browsing For Housing

Browsing for housing online isn't just about fat bandwidth and interactive content. DotHomes.com says using a studied approach to home shopping online is more important.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - It's no secret in the world of residential real estate that well-informed home buyers who are also quick on their feet get the best pole position.

And there's nothing like browsing for housing online to bring knowledge and speed to the home-buying contest.

"More informed buyers, improve the transaction process," says Douglas de Jager, co-founder of DotHomes.com, the latest home listing portal on the block.

"There is so much more information made available to us online, when you go to the actual home, it's just a validation process for what you've seen online," he added.

But transforming digital digs into a real home of your dreams isn't just about bandwidth and content.

DotHomes.com offers these little-reported tips to help you get the most out of your online home shopping experience.

• Leverage the broker. Capitalize on the fact that brokers and real estate agents are the "matchmakers" in the residential real estate world. They use local expertise to connect buyers and sellers. Research, browse and focus your search online with tools they provide. They generally are tools that put you quickly in contact with all of the information and resources the listing agent or broker has to offer. Broker blogs, market reports, how-tos and other information can give you the foundation for an informed online home search.

• Search in real-time. First come, first served takes on new meaning with property listings and other information electronically "fed" to you via RSS (really simple syndication) feeds, email alerts and Web updates. When fresh inventory is tough to find, alerts will keep you abreast of the newest listings and eliminate the need to manually check the Web again and again for updates. When you are on the go, you can tune into alerts via your Blackberry, iPhone or other device and stay up even as you drive from open house to open house.

"It's the difference between push and pull. You pull in information rather than going out a looking for the specific information you need to come to you," said de Jager.

• Zero-in. With so many listings on the market, quickly navigating them all is a chore. Use online tools that allow you to refine your property search. If you are looking for a house on a particular street, search the street. If you need a pet friendly condo, ask. Whether you know exactly what you want or are just starting to figure it out, be specific with search terms like "new roof," "three-car garage," "established landscaping," "new kitchen appliances," etc. to find the property with the features you need.

"With so much inventory, rather than 20 to 30 pages of results, you can refine your search and get down to precisely those things you want," de Jager said.

• Search "fresh." Avoid Web sites that don't update frequently and are far removed from the original online broker listing. If you don't, you'll miss out on listing changes and updates like new pricing information, new photos, open house dates and the like. Web sites that don't link to the original listing, lock you away from updates. Nothing is more frustrating than to find online what you consider your dream home only to soon discover that the listing was sold, removed from the market or otherwise changed beyond your requirements.

"It's much the same way when you put a listing in a monthly magazine. Don't expect that it's just come on the market. If there is no link between the advertisement and the original listing there could be a serious disconnect," de Jager said.

He also said local multiple listing services (MLS) that offer public access are among the best places to search on line because they use standard formatting and strict guidelines about adding and removing listings in a timely manner.

• Screen home movies. Most MLS systems, however, can't hold a candle to professionally produced virtual staging jobs completed with interactive video tours.

"If a picture is worth a thousand words, a video is worth a million," de Jager says.

Videos can give a much better sense of the proportions and the feel of a property. They can also play the starring role -- as a sort of 24-hour open house -- on a Web site or blog dedicated to the listing.

"A good video can often be as good as an open house visit," de Jager said.

And, if you buy a home with its own Web site, you can ask the seller to gift the Web site or blog to you!

"Videos have really taken off with the big brokers and high-end niche brokers. When you can find them they are valuable," de Jager added.

• What is DotHomes.com?

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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