When Is the Right Time to Make Upgrades?

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

Pretty much every time I meet with a homeowner that wants to sell their property, they want to know what they can upgrade to increase their sale price. I always recommend making small repairs and sprucing up your property before you sell. However, I don’t really encourage my clients to make big upgrades right before selling.

Big upgrades should be reserved for those homeowners who live in their home and are not thinking about selling. If you’re going to make upgrades to your property, you want to be able to enjoy them yourself. Making upgrades right before selling is counterproductive because not only do you not get to enjoy the upgrades, you likely won’t be able to recover 100% of the money you spent, and you definitely won’t get more back than what you put in. It just doesn’t make any sense.

“

Don’t make upgrades you won’t be
able to enjoy.

”

The best time to make upgrades is when you can afford them, of course, but also when you have time to enjoy them. If you’ve always wanted stainless steel appliances or a granite countertop, get it so you can enjoy it. When you do decide to sell, at least your home will be upgraded and you will get to enjoy it. You won’t get what you spend on upgrades back if you make them right before you sell.

If you have any questions for me or any suggestions for future video topics, give me a call or send me an email. You can also comment below. Either way, we would love to hear from you soon. Until then, happy selling!

The 3 Reasons Why Most Escrows Cancel

Escrow is canceled for a number of different reasons. The biggest one is the most avoidable- emotion.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

There are many different reasons why an escrow may cancel, on both the buyer and seller sides. However, in my experience, there are three primary reasons escrow is canceled:

1. The appraisal. Every time I work with a client, I let them know we have to sell to the buyer, to the agent, and to the appraiser. It’s important for you to know that buyers who obtain financing will have an appraisal. The bank or lender that loans them money needs to make sure they have collateral for their money. If they think you paid too much, they will let you know. When that happens, the deal may fall apart.

2. The inspection. A lot of times, buyers don’t realize how much work a home might need until their offer has already been accepted and the inspection has been completed. If a seller and a buyer can’t come to an agreement on what repairs the seller will make, the transaction will fall apart and escrow will be canceled.

“

Emotion is the biggest reason escrow
is canceled.

”

3. Emotion. This is the biggest reason that escrow is canceled. I have seen so many buyers get emotional, scared, or nervous, and simply cancel the transaction.

The message today is to understand the different reasons why escrow may cancel and how important it is to work with a good agent who understands the buying and selling processes in greater detail.

A lot of buyers have regret about canceling escrow. Working with a professional is so important because they will guide you through the transaction and any hiccups that might happen along the road. We are always here to help.

If you have any questions for us, comment below, give us a call or send us an email. We would love to hear from you. Until then, happy selling!

What Can the Power of Demand Do?

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

I wanted to share a little story with you today that happened about a month and a half ago. I took a new listing in an area with very little inventory. In fact, this property was only one of two in the entire community for sale. I knew the listing would go quickly and I knew it would go for a great price because there weren’t a lot of other options, and because the law of supply and demand dictated it.

The last time this property sold was for $850,000. I priced the property for $880,000 because it had some upgrades, and features that the other home for sale in the community didn’t. We thought that it was a very reasonable price, and we expected to get the full asking price. We got five offers in two days and much to our surprise, one of them was a cash offer of $900,000.

“

We got five offers in two days.

”

We were not expecting that.

The fact that this was a cash buyer was great too because we didn’t have to worry about any hiccups down the line. Many sellers focus on what the home has sold for in the past. I wanted to bring this example to you because it shows that sometimes it doesn’t matter what a home has sold for in the past. A home is worth what a buyer is willing to pay for it. In an area with high demand and low supply, your expectations might just be exceeded as a seller.

If you are working with a property or thinking about selling a home in an area with high demand and a low supply, give us a call or send us an email. We would also love to hear from you if you have any questions or suggestions for future video topics. Until then, happy selling!

Why Consider All Offers When Selling?

When people are encouraged to submit an offer, they will. Especially if you write in that you are considering all of them.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

I’ve been experimenting with some verbiage lately when listing a property on the MLS, and I’ve seen some pretty positive results. I write on the listing that the seller is, “Extremely motivated and considering all offers.” A lot of people are hesitant to say something like this because they don’t want to get flooded with lowball offers and buyers just looking for a good deal. However, I am finding that this technique helps generate more offers overall.

“

Having more offers is a good thing.

”

More offers equal a higher chance at a bidding war. I would say that 35% to 45% of the multiple offers I receive are good to great offers, and the rest aren’t. As a listing agent, I can leverage the lower offers to get the better offers to either come up in price or improve their terms so you aren’t leaving any money on the table.

Many people out there that will submit a bad or low offer sometimes don’t because they don’t want to offend the seller. When you encourage them to submit it, that means you are encouraging more offers. Listing agents and sellers like options. Have your agent write in the exact passage I mentioned above and I think you’ll see an increase in activity, offers, and the final sale price.

If you have any questions for us, we would love to hear from you. Share this video with anyone you know that is selling, too. We look forward to continuing to bring you helpful information in the future. Until next time, happy selling!

Is the Holiday Market Ripe for Sellers?

I’m a big fan of selling during the holidays if it makes sense to the homeowner. There are four reasons why.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

A lot of sellers have been asking me what I think about selling a home during the holidays. They’ve heard it’s not the best time because the market slows down and not as many buyers are looking.

What these sellers are saying can be true. There are definitely fewer buyers out there looking, and the market definitely slows down a little bit during the holiday season. However, there is a silver lining. I’m actually a big fan of selling during the holidays if it makes sense to the homeowner. There are four reasons why doing this may actually result in you selling your home quickly and for the most amount of money versus waiting until the new year:

1. Low inventory. Inventory generally falls during the holidays because all the sellers that are either unmotivated or don’t have to sell take their homes off the market. What this means to all the other sellers who are motivated and do absolutely have to sell is there will be more demand for their homes.  
2. We’re dealing with more motivated buyers. For the same reasons that the majority of sellers exit the marketplace during the holidays, the majority of buyers do, too. This leaves a crop of buyers that absolutely have to move and do it soon. Although you’d get fewer buyers looking at your property, the ones who do are far more motivated, and the quality of their offers will be far higher.
3. You can avoid the new year listing rush. Think about all the people waiting to put their homes on the market in 2017. Think about all the people who took their homes off the market at the end of the year with the intention of putting it back on in the new year. If all these people put their homes on the market in 2017 and you do the same thing, your listing is going to get lost among the competition.
4. Low interest rates. The savviest buyers understand that price is a one-time thing. Interest rates, though, affect you every 30 days. Every month, you need to make your monthly payment. A higher interest rate means a higher monthly payment. These buyers, then, want to buy now while interest rates are low and they can secure long-term savings.

If you’re thinking about getting your home on the market this year and you’re curious to know what my team and I think your home can sell for, please reach out to me by phone or email. Also, if you have a video topic in mind you want me to expand on in the future, send them my way. Until then—happy selling!

Why Are More and More Homes Expiring?

Homes are taking longer to sell and people want to know why. It really comes down to buyers and sellers not being on the same page.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

If you’ve been watching any of my videos recently, you’ve heard me talking about a shift. It’s still happening and prices are adjusting. Homes are taking longer to sell, and in some areas, homes are selling for less than they have in the past.

The reason why more and more homes are expiring is because most sellers are still under the impression we are still in a seller’s market and prices are continuing to go up. However, buyers have reached a point of fatigue. They are getting frustrated because prices have gone up too high and too fast.

“

Buyers have reached
 a point of fatigue.

”

The bottom line is, what sellers are expecting and what buyers are willing to pay are two different things. That’s why homes are getting stale on the market and taking longer to sell. Sellers are struggling with the idea of selling for less than their last home sold for.

If this has happened to you, but you still want to get top dollar for your home, give me a call or send me an email. I would love to help you market and sell your home for the most amount of money possible in this market. I look forward to hearing from you soon.

What Does the Perfect Home Buyer Look Like?

What does the perfect buyer look like? Today I wanted to run you through the simple steps you can take to become a perfect buyer and make your transaction as smooth as possible.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

What does the perfect buyer look like?

We're finding that the most prepared buyers are the ones who have the greatest advantage in the market today. A well-executed plan is so important in the real estate process. As a buyer, your goal is to submit the best offer on the perfect property in the time frame that works best for you.

These are the important steps to becoming a perfect buyer:

• Get pre-approved. Talk to a lender to find out how much you can afford, the type of loan you’re eligible for, and the interest rate you'll get, among other things. Since there are so many elements that factor into loans, it's important to start this process and get it squared away immediately.
• Meet with your Realtor to focus in on what you're really looking for. Dial in on where you want to live based on who you want to live near and what you want to experience. Then, dive into what you must have in a property versus what you dream of having so that we can strike a balance between the two. From there, we can build a plan to look at properties in person.

“

Follow your Realtor's advice
from the beginning to set
yourself up for success.

”

Ultimately, the perfect buyer is someone who takes our advice from the very beginning, listens to us, and plans with us. If there's no alignment between you and your agent, it's not going to end well.

Hopefully, this is valuable information for you. If you have any questions, comments, or concerns, give me a call or send me an email today. I'd be happy to help you!

What Does the Perfect Home Seller Look Like?

What does the perfect seller look like? Here is a story about a couple I recently worked with who perfectly illustrate the success that is possible when sellers work well with agents.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

What makes a perfect home seller?

I was recently part of a very specific situation last month which I think really illustrates what I look for in a seller. I was fortunate enough to get to work with a perfect seller, and the end results couldn't have been better.

They were former clients who bought a condo about five years ago. When the time came to sell, the place looked good, but there were some opportunities to make the home shine. I'm a big believer in investing some money and time to create a great product to showcase to buyers, so the first thing we did was send out my interior designer for an analysis of what would make the home look show-ready, and she recommended a staging package and some lighter paint.

Since the sellers knew me and trusted me, they took a few days to paint the place and have the carpets steam cleaned. Then they had the home staged and deep cleaned to be sure that we were putting out a perfect product on the day of the open house. The whole setup process took about three weeks and was very inconvenient for my sellers—they had service providers constantly coming and going—but they trusted me, we put the home on the market, and sold it for full list price in less than a week.

“

These clients were truly perfect sellers.

”

They were truly the perfect sellers. Many times, sellers will just want to get their house on the market quickly, thinking it will sell because the market is hot, but that's not the way to do it. You need to take time in the preparation process. My strategy is always to spend three weeks or so getting the home prepared and then sell it in one week, rather than to simply slap it on the market and hope for the best. This can cause the house to sit on the market for months at a time.

If we sell your home in three weeks or less, that's how we know we're getting top dollar.

If you have any more questions about preparing your home for the market or how to be a perfect seller, I'd be happy to answer them. Give me a call or send me an email and let's talk soon!

Orange County Real Estate Market Update

There is an interesting phenomenon taking place in the Orange County market right now. Due to a disconnect between what buyers and sellers want, we are starting to see a market shift.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

How is the real estate market doing?

If you have been watching my videos, you have probably heard me use the term ‘buyer fatigue’ many times. The market has gone up so high so fast (many areas have seen prices skyrocket past the market peak in 2005) that many buyers are getting frustrated and saying, “Enough’s enough!” These buyers are pulling back and waiting to see what will happen in the market.

Meanwhile, many sellers have not yet had that change in mindset. Unfortunately, a lot of sellers and agents are still operating under the assumption that the market is hot, inventory is low, and it’s still a seller’s market. They are pricing homes high to see if they can sell for a record price.

In other words, there is a huge disconnect between what sellers want and what buyers want. Sellers want top dollar, but buyers want to pull back and wait. As a result, we are starting to see a shift in the market. Homes are taking longer to sell and selling for lower prices.

That said, homes priced at or below $500,000 are still selling very quickly. That portion of the market hasn’t caught up to the shift yet. On the other hand, homes priced at $1 million or higher are experiencing a market shift. Inventory is growing and sales prices are going down.

Ultimately, the market is still healthy; the market is just stabilizing and prices are adjusting accordingly.

“

Prices are stabilizing and our market 
is still healthy.

”

If you are a buyer, now might still be a good time to purchase a home due to the low interest rates. You can wait a few months for home prices to go down, but if you do, interest rates may go up, which means you would be spending more money each month for a home that you thought you paid less money for.

As for sellers, now is still a great time to sell. Of course, your decision ultimately depends on your goals, strategies, and timelines, but if you want to sell for top dollar, now may be the time to do so. You may think that as prices start to stabilize, you won’t be able to sell for as much money. However, since interest rates are still so low, there are more buyers out there who can afford your property than there will be when interest rates go up. The larger your buyer pool is, the more likely it is that you will sell for top dollar, so you may want to list sooner rather than later.

If you have any other questions about our current market or about your own specific situation, just give me a call or send me an email. I would be happy to help you!

Why Your Home Didn’t Sell

In my experience, there are a lot of different reasons why homes don’t sell. However, it usually comes down to one of three things: price, exposure, and lack of emotional connection by the seller. If you’ve gone through a failed home sale, you’re in luck. I will explain each of these in detail and show you how to avoid them in the future.

Let’s start with price. It doesn’t matter how nicely your home shows or how many upgrades it has when coming up with a price. We are in a price-driven market where most buyers are looking for a great deal. When you’re in an area where homes are going for $800,000, you can’t price your home at $900,000. It won’t sell. You want to price it according to the market.

If your home just didn’t receive the right exposure, you’re not alone. Real estate is global and buyers are coming to this market from all over the world. If you don’t get the word out about your home, you’re not going to get the level of activity you want. You’ve got to use a combination of traditional marketing (direct mail, flyers) and digital marketing (pay-per-click ads, social media targeting) to get your listing out to the widest audience possible.

If buyers don’t have an emotional connection with a home, they’re unlikely to buy it. If they don’t feel like they’re at home, they won’t even submit an offer. When preparing your home for sale, don’t focus so much on price and exposure. You want to have it show well, too. Declutter your home, keep the color scheme nice, and highlight your outdoor spaces and curb appeal to create that emotional connection.

“

A great Realtor will be able to assist
you in all three areas.

”

By working with a great Realtor, they can help you reach these goals. If you’ve been struggling to sell your home or have failed to sell it in the past, we would love to speak with you. We can talk about what went wrong the first time, and how we can help you remedy that problem in order to get your home sold for top dollar.

If you have any other questions, don't hesitate to give us a call or send us an email. We would love to hear from you.

The Downside of Buying a Home

Buying a home can be a very exciting time, but it can also be overwhelming. There are a lot of inconvenient things that you as a buyer are going to have to do to get the job done. Today I want to make clear the four main things that suck so you can mentally prepare yourself for the process.

1. Getting pre-approved. The process only takes 24 to 48 hours, but the documentation and preparation can be very time-consuming because lenders nowadays require a lot of information to make sure that you qualify for a loan.
2. The search process. Sometimes people can get excited about the search process, but it can drag out for many months and become inconvenient to have to be continually making the time to look at properties.
3. The escrow process. After you’ve found the right home, the real work starts. You have to start doing things like inspections and signing a multitude of complex documents and contracts. This period can last anywhere from 30 to 60 days, and a lot of stuff has to happen before you can actually close escrow.
4. Moving. Getting ready to move is the epitome of inconvenience. You have to put everything into boxes, make arrangements to move it, and then find new places for it. We’ve all been there before. It sucks.

“

Nothing worthwhile is ever going
to be easy.

”

Now that we’ve got that over with, here’s the good news - nothing worthwhile is ever going to be easy. If it was easy, everyone would do it. If you focus on your goals and your motivation for buying a home, you’ll make it through these hoops. After that, of course, you’ll be sitting inside your new home.

If you have any questions or have something in mind you’d like to discuss with us, please feel free and reach out by phone or email. Until then, happy selling!

4 Factors to Consider When Selling Your Home

Here are the four factors you need to consider when selling your home:

1. Price: This one’s obvious, but I bring it up because I often find that many homeowners and agents feel that price is the only factor to consider when selling a home. This is a mistake. It’s important to look at the data to know what the market is supporting.

2. Marketing and exposure: Real estate is very local, but it’s also very global. Here in Orange County, buyers are coming from both out of state and out of country looking to make our area their final destination. If you’re not working with an agent who has the ability to get the word out both online and offline, you’re doing yourself a disservice.

“

Real estate is very local, but it’s
also very global.

”

3. The agent incentive: In the current market, 35% of homes are sold to buyers who are already working with an agent. If you’re not offering that agent a reasonable commission, it’s likely they’ll either overlook your property or not fight very hard to sell it.

4. The emotional connection: Most buyers, if not all of them, will buy a home based on emotional and visual triggers. If your home doesn’t look great because you’ve neglected to do a proper staging, you’re not going to get top dollar.

If you have any questions about listing your property or about real estate in general, give me a call or send me an email. I would be happy to help you!

How Selling a Home Is Like Selling a Car

Selling a home is truthfully more complicated than selling a car. However, as far as selling the product is concerned, the process is similar. Let’s examine this hypothetical situation for clarity.

Let’s say you have two identical cars. Both are the exact same age, with the exact same usage and mileage. You’re getting ready to sell both of them. One has been detailed, cleaned, vacuumed and smells like a new car even though it isn’t. The other car doesn’t smell so great, is dirty, and messy. It clearly doesn’t look as good as the other one.

The car that looks amazing is going to sell for more than the one that doesn’t, even though they are the exact same car. An investment of $300 to $500 could get that messy car looking just like the clean one.

“

They don’t want your dirty car.

”

Understand that when buyers are looking to buy, they are going to end up buying based on emotion. They don’t want your dirty car; they want something that looks great. If you were to spend a few extra hundred dollars detailing the car, you might increase the sale price on it by $1,000 or $1,500. You’re investing money in the car with hopes of a large return.

When you’re getting ready to sell a home, the same rules apply. Think about what you can do to make your home look, smell, and feel fresh. You want a buyer to submit an offer that makes you happy.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.