Fear & Desperation Are Driving Our Market



To truly look at the state of our market, we have to look at the emotions that drive it. Currently, fear and desperation are the two emotions driving the Orange County market.

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 When you ask how the market is doing, it's important to focus on which emotions are driving the market forward.

The market is currently pretty strong for home buyers and sellers alike. Prices are slowly moving up but so are interest rates, so you want to consider all of these factors before buying or selling.

The two emotions we see right now are fear and desperation. Fear of interest rates rising, prices rising, and fear that you might not be able to afford a home in the next six months are driving buyer activity. Desperation comes from low inventory—buyers are worried about finding the perfect home before rates go up. We're seeing people overpay for properties because of fear and people settling for properties that aren't a good fit because of desperation.


“
Fear and emotion are driving our
market right now.
”


Who you hire as your agent matters now more than ever before. As an agent, the advice I give a seller will be very different than the advice I give a buyer. I'm trying to help maximize the goals of whoever I'm working with. I want to help sellers get top dollar and I want to help buyers find the best house for the best price.

So what does this all mean?

As a buyer, it's a great time to buy because interest rates are still historically low. If you buy a home in the next three months, you'll probably secure a rate in the low 4% range. Inventory is slowly growing and we'll start to see it rise around March and rise even more significantly in April. You want to find that balance of waiting long enough to have more options, but not waiting so long that rates rise and prices rise to a point where you can't afford the home that you really want. Don't forget to get pre-approved for a mortgage, either. Knowing your price point can override your emotions.

As for sellers, we haven't seen this good of a time to list your house in a long time. Inventory is so low that buyers have few options and the demand is very high. As a seller, you want to leverage a buyer's emotions because that's what will put money in your pocket.

I hope you found today's topic valuable and informative. If you have any questions or you're thinking about buying or selling a home, give me a call or send me an email soon. I'd love to hear from you!
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Location: Orange County, CA, USA

Why Having Options Is Good




If you’re reading this, it’s very likely you have tried to sell your home in the past and were unsuccessful. When this happens, you are either going to give up, relist your property with the same agent who was unable to get the job done the first time, or relist your property sometime in the near future. I’m writing this for the last group—those of you looking to hire a new agent to sell your home.

 My recommended strategy has always been to interview three or four new agents for the job of selling your home. Every agent has a different personality, strategy, network of service providers, marketing plan, etc. If you’ve seen my articles in the past, you know that not all agents are created equally. As you’re interviewing them, keep these things in mind:

“
Interview three or four agents for
the job of selling your home.
”


1. The connection. You need to make sure you have a good connection with the Realtor you’re considering hiring. You want to have a good rapport and open lines of communication. Selling a home can be overwhelming and if you don’t have a great relationship with your Realtor, the expected outcome can not be good.

 2. Understand what the Realtor’s marketing plan is. How will they get the word out and maximize the exposure of your property? How are the buyers out there going to know your home is for sale? A good marketing strategy is so important.

 3. Social proof. Ask the agent you’re considering what their track record is and what they can do for you that will inspire you to hire them. You have to ask these questions before you sign that paperwork because you don’t want the same thing to happen to you again.

 If you have any questions for us or know anyone who has been unsuccessful in buying or selling a home, give us a call or send us an email. We look forward to hearing from you soon.
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Location: Orange County, CA, USA

How to Determine When to Sell Your Home




Now that we are in the new year, I’ve been getting a lot of questions from people who want to sell their homes for top dollar. They are asking me when the best time to list is in order to maximize their home sale and leave no stone left unturned.

 Many homeowners and consumers in general believe selling a home in spring or summer will result in the highest amount of money on the sale. That’s actually not the case. Spring and summer are great times to buy because inventory dramatically rises.

“
When inventory rises, buyers
have more choices.
”


When inventory levels rise, buyers have more choices. With more choices comes more competition for your home. When there is high competition, demand will fall. This means homes won’t sell for the prices that most homeowners want because there are too many options out there.

We are advising all our clients to put their homes on the market in January, February, or March because that’s when inventory levels are low. When inventory is low, there are more buyer eyeballs on your property. When there is less competition and more buyers and the demand is higher, you will be able to sell for the most amount of money and not leave anything on the table. This isn’t always the case for everyone, but we are finding that this is the time when you can net the most amount of money.

If you have any questions for us or any suggestions for future video topics, please don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you.
Labels:
Location: Orange County, CA, USA
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