Showing posts with label Orange County Real Estate. Show all posts
Showing posts with label Orange County Real Estate. Show all posts

Interest Rates Will Drop Again


What will low rates mean for your real estate goals? Find out today.

Chief economists have recently reported that 175,000 fewer jobs were created this year than what was projected. In other words, the economy is not in as good a position as you might think. This development does bring some good news, though. Namely, interest rates are expected to soon reach figures never before seen in real estate history. And low rates mean a high level of opportunity for homebuyers. Even a small change in interest rates can greatly impact affordability.

Low interest rates mean great things for sellers, as well. Although there still isn’t a lot of inventory, throngs of buyers have been incentivized to make a move as a result of these low rates. In other words, demand has shot up despite the current lack of supply. However, this might not continue to be the case if supply grows significantly over the next few months. We will see a shift in the market eventually, whether it comes in six, 12, or 18 months. And when this shift occurs, prices will likely flatten out.


When rates are low, it’s a great time to buy or sell.

So could you potentially buy a home for less money if you waited a year to make a move? Maybe. But keep in mind that rates might be higher at that point. If interest rates rise even by 1%, your buying power will drop 10%. So even if you buy a home for less, your monthly payment will be more.

With all of this in mind, the first step you should take when you’re considering buying is to speak with a lender. If you can qualify to buy now, I believe you’ll get a better rate today than you would 12 months from now.

The bottom line of today’s message is this: When rates are low, it’s a great time to buy or sell.

If you have any other questions, would like more information, or would like to discuss your real estate goals, feel free to give me and my team a call or send us an email. We look forward to hearing from you soon.
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Location: Irvine, CA, USA

The Importance of Preparation In Your Home Sale


Having a well-prepared listing is essential to your success as a seller. With this message, I’ll delve deeper into what it means to get your property ready for the market.

I regularly speak to homeowners who’ve left the market after an unsuccessful attempt to sell their home.

Too often, they inform me that all the feedback they received related to price. After seeing it for myself, I discover that the home was actually priced fairly, and the real problem was with how the home was presented in its pictures.

Along with price and exposure, preparation is an all-important component for selling your home for a record price. A surefire way to sabotage your own sale is to present the home as is in its listing photos—especially if it’s in a cluttered and untidy state. Nevertheless, I see so many would-be sellers commit this major misstep, which results in their home going unsold. 

With hundreds of thousands of dollars on the line, it’s important to make buyers feel as though your home will be a worthwhile investment. Once it’s on the market, you can’t think of it as your home anymore. At that point, it becomes a product that must be shown its best light.

With hundreds of thousands of dollars on the line, it’s important to make buyers feel as though your home will be a worthwhile investment.

I hope you found value in today’s message. If you know anyone who’s been trying to sell their home and they’ve experienced some setbacks, send today’s message their way.

If your home was previously on the market and you’ve been led to believe that it didn’t sell due to price, please let me know. I’d love to do some independent research and make a determination as to whether or not that’s the case. Not only that, I can fill you in on what my team and I will do to get your home re-branded, relisted, and sold.

If you have any suggestions for future video topics I can cover, please reach out to me as well. In the meantime, happy selling!
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Location: Irvine, CA, USA

How Sellers Can Take Advantage of Our Current Market


In our market, home sellers only have one chance to make an impact on buyers.

Today I want to address something about our real estate market: The spring market is here in full force, and sellers need to act accordingly.

We have seen inventory increase dramatically over the last three to four weeks. Looking at historical trends, I expect that we’ll continue to see a rise in inventory through May, June, July, and August. That means the deeper we get into the summertime, the more competition you’ll have as a seller.

The great news is that homes are selling pretty quickly and for great prices. However, the ones that are selling the quickest and for the best prices are the ones that come onto the market strong. By ‘strong,’ I mean that sellers are working alongside great agents with effective marketing campaigns, and the home itself is a high-quality product with a fair price.

Buyers in the market are excited to purchase because interest rates are historically low. Right now, they’re at a 14- or 15-month low, hovering in the low 4s. If you’re getting a jumbo loan, those rates are even lower.

If you’re a home seller, you only have one chance to truly make an impact in the market.

However, even though buyers are excited, that doesn’t mean that they’re going to overpay for a property. That means if you’re a home seller, you only have one chance to truly make an impact in the market.

Those who have been following my blog know that there are three key aspects to selling a home:
  1. Preparing the home to show like a model 
  2. Pricing the home aggressively to maximize exposure 
  3. Working with an agent who has both a strong offline and online marketing campaign to make sure that the most buyers possible see your home

If one of those three components is missing, you run the risk of either having your home sit idly on the market for longer than you want, selling for less than you want, or worse—not selling at all. Keep these three key components at the forefront of your mind and be sure to hire an agent who’ll get the job done.

If you’re interested in learning more about how my team and I maximize exposure for the properties we list, don’t hesitate to reach out to me. I’m an open book, and I’d love to learn more about your situation so we can find a way to help you accomplish your goals.
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Location: Irvine, CA, USA

Our Current Market Wildly Contrasts From Q4 2018


Is the market giving us a head fake? Find out what I mean right here.

Is the market giving us a head fake? Before I can answer this question, I should first explain what I mean by ‘head fake.’

If you had talked to me in the late summer/early fall of 2018, I would have said that home prices are falling. In fact, we hit such a lull in the fourth quarter that I was very curious about how the 2019 market would play out. We had seen such a massive shift in not only the number of home sales, but also how long they were taking to sell. At the time, it didn’t look so hot.

But the good news is that in February, we started to see a little bit of a pickup. The inventory for great homes was very limited—yes, there were a lot of homes on the market, but many were overpriced and/or didn’t show well. Homes that were fairly priced and showed well were just flying off the market.

We see prices continuing to rise, and my team and I believe that homes will continue to appreciate through 2019 and maybe even through 2020.

Now, with interest rates being at a 14-month low and employment as strong as it is, we’re actually starting to see the market pick up steam. In fact, the last three homes that my team and I have sold, some of which had been listed with another agent, sold with multiple offers within a week. On top of that, those homes sold for more than what each of the prior homes sold for. This just wasn’t happening in the fourth quarter of last year.

So is our market going through a head fake? I think so. We see prices continuing to rise, and my team and I believe that homes will continue to appreciate through 2019 and maybe even through 2020.

If you’re a seller who tried to sell in the last quarter of 2018 but didn’t have a great experience, my team and I are experts at relisting, rebranding, and selling homes that were previously listed on the market and failed to sell. Reach out to us—we’d love the opportunity to help you succeed in the market this time around. Until then: Happy selling!
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Location: Irvine, CA, USA

The Truth About Redfin and Limited-Service Brokerages?


When it comes to buying a home, should you use Redfin or us?

In the past, I’ve always discounted Redfin, thinking that they’re devaluing our industry and undercutting other agents. However, as I’ve learned more about their models and approaches, I’ve realized that they actually do fill a gap in the industry for a particular type of clientele. The difference between Redfin and Realtors like me is the type of clients we serve.

To illustrate, let’s look at a Redfin review that I found online. The person gave Redfin five stars, the highest rating they could possibly give them. But when you read the person’s review, you start to learn a little more about how the company operates:

“I think that Redfin is a great option for millennials and not such a great option for other generations. First of all, the millennial generation uses the internet heavily and we like to do things by ourselves. Redfin has a no hand-holding approach and mostly does all the paperwork for you. You can go on practically unlimited home searches and tour all these properties without feeling pressured. Why? Because Redfin has separate touring agents that handle the touring for you. Then you have your assigned agent who does the negotiations and paperwork. Your assigned agent, however, does not do any hand-holding, so be prepared to do a lot of research on buying a home—meaning you should be hyper-aware of what to look for when buying a home because no one will tell you.”

This review really shed some light on how Redfin operates; it’s a little like hiring a financial planner instead of using eTrade, or hiring a travel agent instead of going to Expedia, Travelocity, or Kayak.

If my clients can’t manage their extracurriculars on top of doing all the research necessary to buy or sell a home, then I would say that no, Redfin is probably not the right option for them.

Nowadays, these sites allow people to do things on their own, and if you’re savvy and do your research, you may be able to get a great deal out of it.

However, if you do that, you’ll be spending a lot of your own time trying to figure it all out. Many people who aren’t savvy with the internet may actually end up spending more or having it cost them more than if they would have hired a professional.

Whether you’re a buyer or seller, you need to ask yourself, “What am I looking for?” When I talk to my clients about Redfin, I often tell them that if they hire Redfin or a similar limited-service brokerage, they’ll have to be very hands-on, doing much of the work on their own. Alternatively, they can hire me and my team, paying us slightly more, but they can still live their lives without having to do all this extra work.

If my clients can’t manage their extracurriculars on top of doing all the research necessary to buy or sell a home (including taking care of the pre-listing preparations in the event they’re selling), then I would say that no, Redfin is probably not the right option for them.

If you have any questions about the buying or selling process or if you want to learn more about how we operate in comparison to a limited service brokerage, please don’t hesitate to reach out to me. Until that point: Happy selling!
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Location: Irvine, CA, USA

Are Interest Rates Going to Hit 6%?


The fear of 6% interest rates may be unfounded, but rate hikes still affect buyers and sellers alike. Here’s how.

There was a lot of speculation in late 2018 as to where interest rates would end up in 2019. Many thought that rates were incredibly volatile and that we’d see them hit 6% this year.

Well, I don’t believe that’s going to happen. In fact, the highest we’re likely to see is around 5.5%. While buyers are waiting for home prices to flatten out or drop, they fail to realize that the savings they find will be at the cost of higher interest rates. By waiting, they could end up paying more money for less home.

The best time to buy or sell may soon be ending.

But yes, buyers—rates are volatile. Though they shouldn’t surpass 5.5%, you should still speak with a lender to see what you should do. Sellers, interest rate fluctuations affect you too. Who will buy your property if buyers can’t qualify for loans because rates are too high?

The best time to buy or sell may soon be ending, so I suggest you reach out to me to be put in contact with a lender, get any questions you have answered, and learn more information about your specific situation. I look forward to hearing from you soon.
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Location: Irvine, CA, USA

Stop Thinking Like an Investor When It Comes Time to Buy or Sell


If you’re thinking of buying or selling, act like it. Don’t think like an investor if you aren’t one.

When it comes to the market, I’ve got one simple piece of advice: Stop thinking like an investor, especially if you aren’t one.

Before I explain what I mean by this, I’d like to first cover a few important points about our current market.

1. Demand is down. More homes are available, which means buyers feel less pressure to get out there and make a purchase on a home they may not love.

2. Fewer homes are selling. As a result of our increased inventory, sellers are faced with higher competition. Pending and closed sales are down between 30% and 35%, which, obviously, has had a major impact on market conditions in general.

3. Homes are taking longer to sell. The homes that are moving off the market are taking 50 to 100 days longer to do so.
 
4. Prices are flattening out. With demand down, prices have dropped in turn. Our shift toward a buyer’s market has become increasingly clear through this and other factors.
 
5. Interest rates are volatile. Nobody has a crystal ball, but all signs indicate that rates will continue rising through the end of this year.

With these conditions in mind, let’s circle back to my first point. Buyers and sellers need to adjust their mindset in light of our current circumstances. Thinking like an investor is no longer the right way to navigate the market.

Think about why you’re buying or selling and put that reason first.

Buyers who ask about a home’s resale value are a prime example of what I mean when I refer to people who are thinking like investors. Rather than thinking about the property they’re buying in terms of how well it will suit their wants and needs, too many buyers are focusing on what they think they can earn from it down the line.

Our team has encountered buyers who, because of this mindset, turned down a home they loved simply because it wouldn’t have made a lucrative rental property for them in the future. This would be valid if they were buying it as a rental to begin with, but they weren’t. This home was going to be their primary residence. The idea of renting it out was purely speculative.

Many sellers, too, have fallen victim to this mindset. They may want to list their home and have many good reasons to do so, but choose to hold onto it instead because they want to wait for a better market. In short, my point is this: Think about why you’re buying or selling and put that reason first. Don’t derail your goals because you got caught up thinking like an investor.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
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Location: Irvine, CA, USA

Homebuyers: Now Is Your Chance


If you’re a buyer, our current market conditions provide the perfect opportunity for you to make your move.

If you’re a homebuyer, now is your chance to take advantage of our market.

Depending on which area you live in our marketplace, inventory is up anywhere from 25% to 40%. Not only that, but homes are also taking a lot longer to sell—sometimes 40 or 50 days longer than they did earlier in the year. This means you have more homes to choose from and more time to make sure you’re making the best decision possible. On top of everything else, fewer homes are selling, which means there’s less demand.

Another important factor you need to be aware of is rising interest rates. I’ve been talking about this for the past few months, but interest rates hit a seven-year high recently and they’re predicted to continue climbing. For every 1% that rates climb, buyers’ purchasing power decreases by 10%.

Despite all this, a lot of my clients are still saying, “Robert, if the market is flattening and prices are dropping, why not just wait a little bit and get a home for a better deal down the road?”

If rates rise by another 1% and homes values drop by 5% (which is a very likely scenario), you’ll actually be spending more money per month for a home that, on paper, you’ll seemingly be getting for a better deal.

I’m here to tell you that doing nothing is a really bad idea.

To be clear, I’m not saying every potential homebuyer should buy right now. I’m simply saying that if you can afford to buy and you actually want to buy, you should consider doing so right now. During the last six years, a lot of buyers I worked with wished they had more time to make a decision and that they weren’t getting caught up in bidding wars as soon as they found a property they liked. Well, now they’ve got their wish.

However, since our market is changing, it’s also creating doubt. That doubt is creating fear, and that’s causing buyer paralysis. Since they’re not sure where the market is going, they’re thinking they might be better off taking a step back and seeing how everything plays out. I’m here to tell you that doing nothing is a really bad idea.

Lastly, keep in mind that just because you meet with a Realtor (or at least someone on our team) it doesn’t necessarily mean you’re buying. When we meet with a buyer and determine their needs, we may decide that they’re ready to buy now, but we also might decide they’re better off waiting a year. That’s why, if you’re considering buying, the best advice I can give you is to get in touch with a local Realtor. If you call us up, we’d love to talk more about your goals and see what your options are.

If you have any other questions about our Orange County market or you’re thinking about selling a home, feel free to reach out to us as well. We look forward to speaking with you.
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Location: Orange County, CA, USA

How to Capitalize on Home Equity


Our market has shifted in Southern California. Here’s how you need to approach today’s market as a home seller.

If you’re a home seller, there are two things that you need to keep your focus on: timing and strategy. The market has shifted and it should come as no surprise. I’ve been talking about this shift for the last few months and now it is finally here.

Here’s what we’re seeing right now. Home inventory is up, demand for properties is down, interest rates are rising, fewer homes are selling, and homes are taking longer to sell. In fact, 40% of the homes that are listed on the market right now will be canceled or expire. This is why timing is so essential when selling. Every day, every week, and every month that you wait to list, you’re risking a lower net profit on the sale of your property.

Now that we’ve talked about timing, let’s discuss strategy. In the last six-and-a-half years when the market was aggressively appreciating, you could use the wrong strategy and still sell your home. Even if the photos online weren’t great or the home didn’t show great, it didn’t really matter. Inventory was so low that buyers would buy anything. If your home was overpriced to start, the market would eventually catch up.

The market is very unforgiving right now.

That’s not happening anymore. The market is very unforgiving right now, which is why I want to talk about three things that could negatively affect you if you use the wrong home-selling strategy:

1. Your home is going to take much longer to sell than normal, if it even sells at all.
2. You could be potentially leaving tens of thousands of dollars on the table by overpricing from the start and reducing your price over time.
3. Your home will ultimately sell for less money.

If you are considering selling your home in today’s market, I recommend that you interview at least two to three agents and really understand what each of them will do for you. You should choose the one who is going to put together the best strategy for you to sell your property in a reasonable amount of time for the maximum price.

If you have any questions for me or would like to know what our team can do to help your home sell quickly and for top dollar with minimal hassle, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
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Location: Orange County, CA, USA

Do You Know the Right Way to Approach Relisting?


If your listing was unsuccessful the first time you put it on the market, don’t make the same mistake twice.


Homeowners who decide to list their property don’t always succeed.

Whether the listing expired or the homeowner cancelled it themselves, some sellers decide against putting their property back on the market. On the other hand, 35% of unsuccessful sellers will relist their property within a two- to three-month period.

As a Realtor, one of the things I do on a daily basis is to reach out to the sellers who decide against relisting. It’s part of my job to seek feedback from these people about where their sale went wrong and what’s preventing them from trying again.

There are many reasons why a listing may fail, but a majority of the sellers I speak to cite the same thing when asked about why their sale fell flat. These sellers tell me that the agent they worked with did an inadequate job.

The only way to be successful is to work with someone who knows what they’re doing and who cares about your goals.

I’m blown away by the number of sellers I hear from who hired the first agent they spoke to. This is a recipe for disaster, and one that no seller should ever repeat.

So if you’ve ever been through the disappointment of an unsuccessful listing experience, don’t make the same mistake twice. When it comes time to re-list, interview multiple agents.

Not all Realtors are the same. In fact, the majority of agents just wing it. They don’t treat our business like a business. As a seller, you deserve better. The only way to be successful is to work with someone who knows what they’re doing and who cares about your goals.

The right agent will have the experience, knowledge, systems, and tools necessary to get your property sold quickly and for top dollar. Don’t settle for less.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
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Location: Orange County, CA, USA

Buyers and Sellers: Don’t Get Caught up in the Past


If you can’t let go of the past, your real estate goals will suffer. Buyers and sellers alike must be able to change with the market.


It isn’t always easy to let go of the past.

We’ve been experiencing a strong seller’s market for almost seven years now. As a facet of this, home prices have been aggressively appreciating all the while.

The best advice I can give anyone who is thinking of buying or selling is to let go of the past.

However, our market is shifting gears. Homes are taking longer to sell and appreciation has slowed down. And, beyond that, inventory and rates are both on the rise.

The best advice I can give anyone who is thinking of buying or selling is to let go of the past. It’s important to base your goals and expectations on what’s happening right now, instead of what was going on a month ago.

Buyers and sellers who don’t move with the market are setting themselves up for failure. Sellers, in particular, should remember that less is more. Pricing your property slightly below where you may have in the recent past could help you sell sooner and for more money than you would earn by overpricing.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
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Location: Orange County, CA, USA

Why Our Team Takes an Honest Approach to Your Transaction


Being realistic about market conditions when planning a real estate transaction is key, even if it sometimes means changing your expectations and goals.


You’ve probably heard the saying “The customer is always right,” but is this saying true in real estate? Are buyers and sellers always “right?”

Oftentimes when I speak to buyers or sellers, it becomes apparent that they’re operating within an assumption of how their transaction “should” go, instead of basing their strategy on how the deal is actually playing out.

Especially with our market beginning to shift, it’s important that buyers and sellers do away with this mindset. People give too much thought to what they see on social media or in articles online. My team and I deal with many different clients on a daily basis, so our perspective is one you can trust.

I want my clients to not only win in the market, but to also understand what’s going on.

We are always honest with our clients, even it if means not always being on the same page. Our goal is to be realistic and to help our clients become successful in their real estate goals as a result.

If you’re working with a Realtor who only ever tells you “yes,” this is a major red flag. If a seller comes to us and wants to sell for $900,000 but market conditions don’t support that figure, I will guide them toward a more feasible price.

Of course I want my clients to earn the best deal possible; however, unlike certain sycophantic agents, I know that succeeding in this market will require a more pragmatic approach. I want my clients to not only win in the market, but to also understand what’s going on.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
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Location: Orange County, CA, USA

Knowledge Is Power: The Key to Overcoming Market Paralysis


Many people looking to enter the market have been paralyzed by indecision. However, there is a cure for that condition.


In my discussion of the market today, I want to reinforce the old adage “knowledge is power.”

When I say that phrase, what do I mean? Well, if you’ve been following my videos, you’ll know that I’ve brought up market shifts a number of times. With our own clients, we’ve noticed that with all the things going on in the market, there is an uncertainty about the future of the market that is causing a sort of paralysis. Is the market going up or down? Is it stabilizing? Is it a bad time to buy or sell? A lot of people have just stopped dead in their tracks and are wondering what they should do.

Knowledge is the key to curing that paralysis.

Interest rates and home prices have gone up, homes are taking longer to sell, and the demand for property is dropping. So what can you do to keep yourself from being paralyzed in the market? Here are some tips:

Knowledge is the key to curing market paralysis.

1. Stay educated. Work with a local professional who will help you understand what’s going on in your micro market. Every single market is different from the next, and the same is true of individual price points and clients. Just because it’s a great time to buy or sell for one person doesn’t necessarily mean that it’s a great time to buy or sell for someone else.

2. Work with a knowledgeable agent. Now more than ever, it’s critical to work with a real estate agent who understands the area and the market you’re looking to buy in.

3. Talk to a great lender. Your agent should also know where to find a great lender who will help you understand what you qualify for, whether you’re a first-time homebuyer or a move-up buyer.

When you’re uncertain about a decision, you’re probably always going to say no to it. That’s why learning more about why you’re looking to make a move or why you’re looking to buy a home is going to help you gain the knowledge and power to make the best decisions for you and your family.

If you have any questions, don’t hesitate to reach out to me. I’d be glad to help you.
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Location: Orange County, CA, USA

You Will Regret It if You Wait to Buy

 
Why is buying a home such a smart decision in today’s market? I’m going to explain today.


If you’re currently looking for a home to buy, I’ve got some great news for you today. I remember back in 2015 when I was talking to a potential homebuyer who felt that he was going to be paying too much for his property. At the time, he was hesitant but still decided to pull the trigger.

These days, he is very grateful that he bought at that point because the home is worth 15% more now than it was when he bought it. He may have paid a premium for the property, but he’s already made that back and then some. Instead of paying rent for those three years, he’s been able to invest in his own mortgage and see the appreciation for himself. Three years later, the situation is similar in our market.

We’d be happy to connect you with a lender who can assist you.

You might pay a premium for a home now, but you’ll find that it’s a great deal in a few years. My mentor used to tell me that “The best deal is the home that you can afford to buy right now.”

If you’re a homebuyer and you’re looking to buy a property or you’ve been renting for a long time, talk to a lender today and figure out what it will take to buy a property. If you can afford it and it’s within your comfort zone, it’s time to pull the trigger. The home appreciation and tax benefits alone make it a worthwhile investment.

If you have any questions for me about buying a home or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

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Location: Orange County, CA, USA

Why Is Right Now the Best Time to Sell?

 
There has never been a better time to sell your home in the last decade. Here’s why.


If you’re a home seller or a homeowner who is curious about selling, there is no better time to sell than now. Here’s why.

Our current market is that we are currently in is one of the strongest seller's markets I’ve ever experienced. The inventory is still very low, interest rates are still low, and there are way more buyers than there are homes for sale. This all may change in the next six months to a year, but homes are selling for a premium right now.

With the right marketing and pricing strategies, we might be able to sell your home for more than its market value.

The best advice I can give a homeowner who is thinking about selling their home is to interview a few different agents before you pull the trigger, so you can get a few different perspectives. Every agent is a little bit different, and each has a different way of handling the transaction.

What a home is currently worth in the market right now is not necessarily what we could sell it for. With the right marketing and pricing strategies, you can squeeze out even more money than you think. A lot of homes that we’ve been listing have been selling for above market value because of our strategy.

If you’re thinking about selling your home or know someone who is, don't hesitate to reach out and give me a call or send me an email with any questions. I would love to hear from you soon and I’d be happy to answer them.


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Should You Buy or Sell Now in Our Market or Wait?

The question of whether you should wait on our market or act now depends on your situation. If it makes sense financially for you to make a move now, go for it.


Should you wait on our current market?

Before I answer that question, I will summarize our market by focusing on three key factors: interest rates, home prices, and inventory.

If you have been following the market, you know that interest rates have been creeping up slowly month over month. If you are a buyer, every time rates go up it decreases your buying power. For instance, if you are looking to buy a $750,000 home and interest rates rise just an eighth of a point, you will no longer be able to afford that home. If you are a seller, every rise in interest rates reduces the number of buyers looking for your specific property.

Home prices are rising as well. Again, if you are a buyer, this means you will only be able to afford less as time goes on. As a seller, this is great news for your home sale’s potential. If you are looking to move up to a larger property after you sell, however, the price of that home is only going to increase too.

If it makes financial sense for you to buy or sell now, go for it.

Inventory is something our market’s been struggling with. Buyers love more inventory, but there aren’t a lot of homes to choose from. May, June, and July constitute our highest selling season, though, and this stretch is also the best time to buy a property, so you should see more homes coming onto the market. If you are a seller, this isn’t exactly good news. It means you will have more competition 

So to answer the question of whether you should wait or not, it depends—as I have said many times before—on your situation.

To me, real estate is math. If you are a seller and you want to sell and buy, you want to calculate how much your home will sell for and how much that sale will allow you to afford for your next purchase. If you are a buyer, you need to talk to a lender before you do anything else so you know what you can afford. After that, dig deep and ask yourself why you are making the move to begin with.

After you look at the big picture and it makes sense financially for you to buy or sell, then I say go for it. We know what is going on right now, but we can’t predict the future. Prices may fall 12 months down the road, but interest rates may rise a full 1% during that time as well, which means you would pay more per month for a house you actually got for less.  

As always, whether you are buying or selling, nothing replaces a great real estate agent. If you are already working with an agent, talk to them about these things. If you don’t have an agent, please feel free to give us a call so we can talk about how we can help you achieve your real estate goals.

If you have any other questions about our market or you have any other real estate needs, please reach out to me as well. I would be happy to help you.

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Location: Orange County, CA, USA

How Supply and Demand Will Impact the Spring & Summer Selling Season



As more properties come on the market this spring and summer, buyers will have more options, and sellers will have less demand for their properties.

 Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation

I’m sure you’ve heard the term “supply and demand,” but how does that affect buyers and sellers as we approach the spring and summer selling season here in Orange County?

In a nutshell, supply and demand means the less of something there is, the more valuable it becomes. Let’s say you’re dealing with wine. When a new wine is released, there’s a lot of it, but as the vintage gets older and older, there’s less of it to go around. Once you get down to the last case, it becomes extremely expensive.

If you’ve been following this video blog, you know that inventory usually drops in November as we approach the holiday season and stays low through early February. Generally, it will start rising after Super Bowl Sunday, rise again in March, continue to grow in April, and then significantly rise in May and June. June, of course, is the summer selling season and the time everyone assumes is the best opportunity to sell a house. The reality is, this is actually the best time to buy a house because there are more homes on the market.

If you’re a seller, you want to sell when there’s not a lot of competition. If you live on a block with five other homes for sale, buyers will leverage those homes and yours against each other when they make an offer. If your house is the only one on that block for sale, however, it’s worth potentially more to buyers because it’s their only option.

I talk to a lot of people who tell me they’re interested in selling but want to wait until spring or summer, and this always raises some concerns with me. If there’s a specific reason they need to wait, then perhaps there’s no way around that. If they’re just planning on listing in the spring or summer because they think that’s a better time to sell though, then that’s an incorrect strategy.

If you’re just waiting for the spring or summer market to come before you list your home, you may want to talk with a Realtor and understand what’s happening in your micro-market. Every pocket in Orange County has different trends, so you don’t want to wait to sell only to find out that there are three or four other properties listed right alongside yours. That will devalue your property. List when there is low inventory and less competition so there’s more demand for your property and a greater chance to sell for top dollar.


We should see inventory increase over the next few months.

If you’re a buyer and you’d rather wait until April, May, or June when inventory has grown to make your move, there’s nothing wrong with that approach. I do encourage you, though, to stay on top of what’s happening with interest rates. If you have a preferred lender you like working with and have already been pre-approved through, they should be sending you weekly updates on interest rates. Why? If interest rates go up too high, even if you get a smoking-hot deal on a property, you still might end up paying more money per month for it.

Overall, we should see inventory increase over the next few months. As more properties come on the market, buyers will have more options, and sellers will have less demand for their properties.

Another scenario we’ve been dealing with lately is clients wanting to sell their current home and buy something bigger or smaller. If you intend to do the same thing, meet with a Realtor now so you can sell before inventory grows and buy when you have more options. The savvier sellers we work with usually list their homes in February, March, or early April so they can catch the market before it gets too active.

If you have any more questions about how supply and demand will impact our market in the coming months or you’re thinking of buying, selling, or investing in real estate, don’t hesitate to reach out to me. I’d love to help you. Until then, happy selling!
 
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Location: Orange County, CA, USA

Why It’s Important to Meet With an Agent Sooner Rather Than Later



Whether you’re buying or selling a home, meet with an agent sooner rather than later so you understand what you’re getting into.

 Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation

Why is it important that we meet sooner rather than later? The answer is different for buyers and sellers.

My team and I meet with clients on a daily basis, and we oftentimes learn that if we would’ve been able to meet with them sooner, the process would’ve been more efficient, the plan would’ve been more rock-solid, and we would’ve been able to help them achieve their goals more efficiently.

This isn’t to say that we don’t do those things when we meet with clients, but when you don’t have a lot of time to put a plan together and execute that plan, you have to compress a lot of things into a small window, and that can get stressful.

For example, I met with a buyer about four months ago who told me they weren’t interested in buying a home until December or January and that they’d rather meet then. I told them it was better to meet sooner than later and suggested we meet in October and put a plan together so that when they were ready to go, I’d be ready to go too. The buyer was adamant on meeting in December, though.

When we met in December, we were both on the same page, but because they were looking to buy a property, their first step had to be to get a pre-approval. When they pulled their credit, they discovered they had three small liens on their credit report that were very old. We now have to spend two or three months cleaning up that buyer’s credit so they can get a high enough credit score to qualify for a loan with a great interest rate. Their goal was to be in a new home by January, but now they’ll have to wait until March, April, or May.

I experience the same situation with sellers—I’ll speak to them in September or October and they’ll tell me they don’t want to sell until January. A lot of them assume that when they want to sell their home, all they have to do is meet with a Realtor, put a sign in front of the house, put a lockbox on it, and list it online.

What they don’t realize is every home sells for a different price depending on the agent selling it and what you do to prepare that property for the market—whether that’s staging, painting, decluttering, taking professional photos, etc. There’s so much that goes into the backend of preparing a home for sale that sometimes the process can take three, four, five, or even six weeks.

I went into one of these sellers’ homes last week and noticed there was a lot of furniture in there. I knew if I were to show that home as it was, I would’ve sold it for $10,000 or $15,000 less than what the market value was. If we spent some time decluttering the property, repainting it, making some minor repairs, staging it, and getting professional photos done, that would all take two, three, or four weeks. The seller, therefore, is no longer in a position to sell in January—they’ll have to sell in early-to-mid February


Reach out to a Realtor sooner rather than later so you understand what you’re getting into.


Whether you’re thinking about buying or selling—whether that’s in one month or one year—you’re better off meeting with an agent soon to understand what your options are. If your home is ready to sell or your credit is flawless, that’s great, but that’s doesn’t happen all the time. A lot of people don’t know what it takes to buy or sell a home, so reach out to a Realtor sooner rather than later so you can understand what you’re getting into.

If you have any questions about the importance of meeting with an agent sooner rather than later or you need help buying or selling a home, don’t hesitate to reach out to me. Until them happy selling!
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Location: Orange County, CA, USA
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