Real Estate Practices

SD Market Update: January 2018

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amanda+joaquim

Here is your January 2018 San Diego County Real Estate Market update!  Please note, that if you would like to see local statistics for your city or a city you are interested in, I can get this information to you usually within the same day.  Just shoot me a text or call and it would be my pleasure to provide you with any real estate information you seek.

The following stats* compare December of 2016 with Dec-2017:
  • The median sold price is up +9%.  In December of 2016 the median sold price was $495k, compared to December of 2017 at $539k.  That’s a difference of $44,000.
  • The median price of for sale properties is up 7% and the median price of sold properties is up 9%
  • The number of Sold properties is down 12%.
  • The average days on market is down 14%.
  • The number of Expired properties is down 12%.
  • The average months supply of inventory is down 24%
* Report provided by:Clarus MarketMetrics® @ Realty One Group

6 Reasons Your Home Won’t Sell

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download (3)Are you ready to sell your home and want it to have a great first impression on the market? Or maybe your home has been listed for a few weeks or months, and you can’t figure out why it won’t sell, and you know your agent is working hard to market it. I’ve listed below the top 6 reasons your home may not make a good impression and end up stagnant on the market.

 

1. IT’S OVERPRICED

To be clear, an overpriced home is the #1 reason a home won’t sell. We often times want our homes to be worth a lot more than we may see based on the data, but if you put your home on the market for the number you wish it will bring instead of the price it actually needs to be, your home can sit on the market for months without getting a single showing. If you’re thinking you need to price high to leave room for negotiations, statistics show that views for your property, for buyers in your price range, can drop a whopping 90% if it’s priced too high. Discuss with your agent what the market says the value of your home is, then price it competitively to potentially get a bidding frenzy instead of low offers or having it expire.

2. LOW SHOWING AVAILABILITY

Making sure the house is clean and having to leave on a daily basis for buyers to tour the home may get a little overwhelming, but it is crucial to have open availability to have your home shown. You could end up missing out on the perfect buyer if you decline too many showings. The longer it sits on the market, the less value buyers will see in it. Talk with your agent about having a 24 hour notice period if the extra time is needed, but make sure your home is available to be shown as often as possible.

3. CLUTTERED SPACE

Buyers want to walk into a house and envision their lives in that home. This is difficult to do if your home is cluttered with personal belongings. They are instantly given the feeling of invading someone else’s personal space, instead of the satisfaction of being able to see a future in your home. Make sure your property is clutter free before putting it on the market; and store away any family photos.

4. UNPLEASANT ODORS

If you smoke or have pets, it’s easy to get used to the smell to the point that you don’t even notice it anymore. But it’s important to understand that the scent can be picked up by new people visiting your home, and it can really turn them off from making an offer. Before a showing, make sure to dispose of any garbage, don’t cook fish or other strong smelling food, and ensure the home is freshened up so there are no pet or smoke odors.

5. UNWILLING TO MAKE REPAIRS

Selling your home as-is may sound appealing at first, but being unwilling to make repairs could cost another mortgage payment that far exceeds the cost of repairs if you refuse to work with the buyer on their requests and the home goes back on the market again. It’s wise to be open to repair requests, and simply go over with your agent what you can afford to do and make a reasonable counter offer during the repair negotiations. 

6. UNWILLING TO NEGOTIATE WITH BUYERS

It’s important to have an open mind about requests that will come from buyers when it comes to purchasing your home. These requests can come in the form of price negotiations, repair requests, or even requests to cover closing costs or home warranties. With your agent on your side advising you of the best steps to take, it’s best to be open to working with the buyer’s on some of their requests to ensure a successful closing.

FAQs FROM HOME BUYERS

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download1. Why do I need to talk to a bank before starting to look for homes?

Talking to a bank will help you determine how much you can afford. If you are a first-time homebuyer, there may be programs your bank knows about that are applicable to your personal situation. Also, there are additional costs associated with purchasing a home that your bank can help bring to light to ensure that you are fully aware of the financial decision you are making. Also, a mortgage professional will help you find the best interest rate that you can get based on your financial history and credit score.

2. Why do I need a Real Estate agent to help me buy a home? Can’t I just work directly with the seller or seller agent?

Getting a Real Estate agent will be one of the best financial decisions you might make when buying a home, yet most of the time, you don’t even have to personally pay the agent. Your agent’s fee will likely come from the seller and/or the listing agent. Your agent will help you through every aspect of the buying process. An agent will find out your preferences and requirements and find homes that you might not otherwise have access to and give you advice based on the current market and local area. Agents help with the negotiation process. An agent advocates for your best interests. They help with the vast amount of paperwork and make sure you understand every step of the transaction. A Real Estate agent likely knows the industry better than you do and will be someone you can trust to help you with one of the biggest decisions of your life.

3. What kind of credit score do I need to purchase a home?

In most cases, you will need at least a 620 credit score or higher to get the best interest rate. The higher your credit score, the better your lending terms will be. There are some lenders who will approve home buyers with a score of 600 or less, but most likely, the interest rate would be higher than it would with a higher credit score.

4. How much money do I need for a down payment?

For an FHA loan, you usually need between three and five percent. For other conventional loans, ten to twenty percent is recommended or required.

5. What are the costs outside the loan and the down payment?

Many home buyers miscalculate the costs of purchasing a new home. In addition to the down payment, there are generally closing costs associated with a home purchase. You also need to consider the costs of taxes, homeowners association fees, home inspection costs, utilities, homeowners insurance, and any repair or maintenance fees. Always be prepared to make some repairs to the home, whether it’s new or old. Have approximately three months of living expenses saved up in addition to the down payment and closing costs for an emergency repair fund. Always know beforehand the costs of utilities and taxes, so there are no surprises.