Chasing that Elusive Downwardly Adjusting Market
Date: Saturday June 28, 2008Posted in: real estate, multiple offers, listings, housing market, pricing, list price
In conversations with home sellers here in south Santa Clara County, it is important to remind them of the potential of loss in equity in this downwardly adjusting real estate market. Sellers still want to “test the market” by pricing their homes a little higher than the latest comparables are indicating that they should be priced. After the “test” confirms that they are priced too high, they will then lower their list price. This is called “chasing the market down.” Every day a seller chases the market, they may be losing equity.
An important concept to understand in this type of real estate market is that the most competitive price often sells first. The seller who sells first is the seller who jumps the market and is the most competitively priced. That seller receives the highest possible price at that point in time.
The homes that are selling quickly in south Santa Clara County are the homes that attract the attention of buyers and Realtors alike due to their aggressive pricing. These homes are receiving multiple offers and often are selling for over list price. The sellers in these cases sell early during the adjusting market and have more options later. They can stop chasing and relax.
South Santa Clara County Fires
Date: Monday June 23, 2008Posted in: Morgan Hill, South Santa Clara County, San Martin, Gilroy, Fires
Couldn’t be bored with the South County summer weather on Saturday! I was helping out in the yard at one of my new listings and, because it was a sweltering 104 degrees, I offered to go get cold drinks for everyone. While driving to the store, the sky started churning.
By the time I made it back to my compatriots, it was raining, thundering and lightning. And still about 95 degrees. Were we really in Morgan Hill?
Unfortunately, the lightning started hundreds of fires all over northern California that afternoon, including two substantial fires in the south Santa Clara County region. I have several clients to whom I’ve sold houses that were threatened by the fires and had to evacuate.
One client, who lives off of Day Road in Gilroy, told me that she and her husband were ready when the sheriff knocked on their door at 1:00 a.m. Sunday, June 22. They had the foresight to come up with a packing list after witnessing the destruction of the Summit fire in May. She said that the packing list left no need for indecision or debate. As she optimistically stated, they got the opportunity to practice a “fire drill”. They consider themselves very fortunate that the fire was contained within 1/2 mile of their home. Now they just need to get the smoke smell aired out of the house. They also feel fortunate to live in an area where all the neighbors were so supportive of each other.
At this point, the fires are mostly contained and thankfully, no structures have burned.
What is Your Home Worth?
Date: Wednesday June 18, 2008Posted in: Sellers, price, real estate, listings, housing market, pricing
The seller sets the price of the home but ultimately the buyer determines the value. My job is to supply you, the seller, with facts about what has sold recently and what is for sale now. This information will help you make a decision on pricing your home. There are five essential ingredients that comprise the formula for a successful sale of your home:
- Marketing: Multiple Listing Service, internet exposure, yard signs, advertising, etc.
- Location: Views, neighborhood, schools, traffic, accessibility, etc.
- Condition: Maintenance and amenities
- Market: Competition, economy, interest rates, mortgage availability
- Price: The #1 most important factor in the sale of your home
The consequences of improper pricing are painful. Too low and you literally give away money that should have been in your pocket. Too high and your home will sit unsold for months, developing a reputation of a problem property.
Remember:
- What you paid for your property does not affect it value.
- The amount of money that you need to get out of the sale of your property does not affect its value.
- What you think it should be worth has no affect on value.
- What your neighbor says your property is worth does not affect it value.
- An appraisal does not always indicate what your property is worth on the open market.
What does determine the value of your property? The value of your property is determined by what a qualified, informed, ready, willing and able buyer will pay for it.
Benefits of Proper Pricing
- Faster sale: The proper price gets a faster sale, which means you save on mortgage payments, real estate taxes, insurance and other carrying costs.
- Less inconvenience: As you may know, it takes time and energy to prepare your home for showings, keep the property clean, make arrangements for children and pets, and generally alter your lifestyle. Proper pricing shortens market time.
- Increased salesperson response: When Realtors are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.
- Exposure to more prospects: Pricing at market value will open your home up to more people who can afford it.
- Better response from advertising: Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.
- Higher offers: When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.
- More money to sellers: When a property is priced right, the excitement of the market produces a higher sales price in less time. You net more due to the higher sales price and lower carrying costs.
The Basis of Wealth
Date: Thursday June 12, 2008Posted in: real estate market, real estate, real estate buyers, buyer's market, wealth, Theodore Roosevelt
I bet you’ve heard the saying, “Buy low, sell high.” Well, this is a “buy low” kind of real estate market we are in and now is the time to take advantage of it. I am working with a few clients looking in the $200,000 to $300,000 range and they are thrilled to have the opportunity to purchase in this “buy low” real estate market.
An interesting quote from President Theodore Roosevelt: 
“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”
What was true at the beginning of the last century is still true today.
Inspirational Mortgage Expertise
Date: Wednesday June 4, 2008Posted in: mortgage, Morgan Hill, interest rates, Darla Rowe, mortgage industry, Inspire One, refi, refinance
My friend and cohort, Darla Rowe, a mortgage industry professional, says that even though interest rates have inched up lately, (on average about 0.35% in the last couple of weeks), refi’s are certainly moving. ”Finally!,” she says. Darla, over at Inspire One Inc. here in Morgan Hill, is currently working on a book that will be wonderful to give to clients. The book will give straight-talking, honest advice about what really happens in the lending industry and who to trust when shopping for a loan. Darla specializes in residential purchase financing and refinancing. She can be reached at 1-888-360-7474.
