Let's Re-Hash Appraisals.....So Needed In This Sellers Market

Lots of Buyers, not as many Sellers. That's what makes a Sellers market. And, yes, you know it well, we are deep in one right now.

I looked at a home for a client this week. Listed 65k more than the model match that closed in the last 90 days. Model......Match. 1/2 dozen homes away on the same street. Now, the one I saw had a lovely view, great curb appeal, a wee bit of kitchen improvement, but everything else was completely original. Totally, brass light fixtures, marble tub & shower, carpet was worn through, A/C condenser had rust on the top and was a make I haven't seen in years....truly years.....I could go on.

The model match was painted an odd color, had a boatload of wallpaper, not quite as spectacular of a view. But, it did have several areas of upgrades throughout the home, kitchen with new appliances, bathrooms, flooring, plantation shutters. Paid Solar, yes, a completely paid off Solar system. And, lordy, there are a lot of panels up there!!

So, I tell the agent, who indicated that she has now had 3 full price offers (one that was in escrow and cancelled after 2 weeks, the 2nd 'flaked', the third just came yesterday), I just don't see the value and pointed out the MODEL MATCH 1/2 dozen homes away. She said no view...there is a view....and the house was pink! Well, it's salmon colored, but with the interior upgrades AND paid solar panels, I'm calling more value at the sold one than at this new one. She admitted she'll have a tough time with appraiser, but the market is 'much hotter' now. Whatever....

I don't go after expired listings, there's a reason they expired. And, usually that reason is they are priced way too high.

This particular home expired, and this new agent was able to get the home listed at a lesser price...but still too high.

Why are buyers writing full price offers then? Likely to grab the property, then fight with the Sellers about what surely will be a low appraisal.  There is absolutely no way in you-know-where that this appraisal is going to come in at list price. No freaking way.

So, you would-be sellers that want to list your house crazy higher compared to recent sales? List it appropriately, where you won't have an appraisal problem....and, then, let the Buyers drive up the price. Wanna know why? Because, that is manageable. That is something that can be negotiated right up front instead of waiting for what will likely be a huge, and very disappointing, problem in escrow. One, that can likely cause a cancellation 2 weeks in.....just sayin'.....

(Nope, not one of my upset peeps.....from Getty Photos!)

Questions about So Cal Real Estate? Just Holler! 

Lauren@KeepYourWitz.com or (661) 313-5470

Request for Repairs & The Sellers Market

Whenever I'm working with buyers or sellers I remind them that the Request for Repairs in the California Association of Realtors purchase agreement is never a 'wish-list'.

If the tile is chipped, don't ask for a repair. If the carpet is ugly, nope, don't even think about it. If the fireplace is defective, ask. If there are electrical issues, ask. That leaky faucet, sure ask on that too. Nasty, old Air Conditioner? But, it still works, nope, that's what your home warranty is for.

As a reminder, the biggest things to focus on are Fire, Safety, Health.

Now, with that said....keep in mind, we are totally in a Seller's market. Multiple offers, properties shooting of the shelves within days, not weeks or months (Yes, a few years ago, it took months to get a home sold - enjoy this market Sellers!).

Also, a little known fact....very rarely have I seen this happen....a Seller doesn't even have to respond to your Request for Repairs. Yup, can ignore it completely and still insist on Contingency Removal for investigations.

Go back a bit.....all property is sold AS-IS in Cali. Yes, but, all buyers have a right to do inspections. And, they have a right to ask the sellers to do repairs, give credits, etc. 

Sellers Market & Request for Repairs. Don't expect miracles. That Seller knows that they can go without any repairs and the Buyer will likely accept as there are a ton of buyers scrambling for homes right now. On the flip side, a property that was over-priced and took over a week to sell (yes, that's long right now), that Seller may be more likely to consider a reasonable Request for Repairs as they just want to be done, they want to close escrow and move on.

I'm in the middle of both of these situations right now.....we shall see how they pan out....

For more info or if you just want to chat Real Estate, holler! 

I absolutely love sharing knowledge!

~ Lauren@KeepYourWitz.com ~ (661) 313-5470 ~

Sprucing Up Your Home For Yourself Or For Readying it For Sale?

Either way, there are some great ideas in a Houzz article I read this morning....that I've saved for a couple months!

I realized I hadn't shared any artsy-fartsy home improvement info on my blog lately so figured today was the day!

It's funny, as I've done several of these myself. And, I've suggested several to my clients. Whether they are considering some sprucing up on their current home, a new home they are purchasing, or doing some pre-marketing prep work for getting their home on the market.

This one I'm sharing is one I haven't done....but I just may consider it after seeing it here. 'Don't Forget Artwork' and I do have some space above my cabinets to place a couple....but, oh lordy the dust! Not sure yet, but I may.....

I'm not a fan of all that dark green, 

but I think the artwork shared in the kitchen is kind of innovative.

The full Houzz article is here:

How to Give Your Kitchen a Speedy Refresh

If you're wondering what you can do to prepare your home for sale....always, always, always, ask your trusted Realtor BEFORE you do it! Remember, what you love, the masses may not. And, making the masses love your home....brings more money to you in the end!

~ Lauren Witz Greber ~ Lauren@KeepYourWitz.com ~ (661) 313-5470 ~ 

Yes We Do! And, I've Made A Video Series For Your Too!

How Trusted Professionals Make The 

Home Buying Process Easier to Understand

In the spring, many excited buyers get ready to enter the housing market. Others continue dreaming about the homes they’d like to buy. The truth is, many potential buyers continue to dream longer than they need to, simply because they’re confused about the homebuying process. Thankfully, working with a trusted real estate professional can help ease those concerns and make the process to homeownership much easier to understand.

A recent survey conducted by Ipson and Freddie Mac reveals the confidence level of Gen Z and Millennial buyers regarding the homebuying process. The graph below shows the breakdown of the top results, clearly indicating there’s a significant portion of younger buyers who are not yet confident with some of the steps in the homebuying process.Between the homebuying process and the mortgage process, there are 230 possible steps in the transaction. With trusted professionals on your side, you certainly don’t have to know them all to have a successful experience.

There are many reasons why these steps can change as you move through each one. Depending on your personal circumstances, the term or your mortgage, and the type of loan you use, the path you take may need to vary. That’s why guidance and support from the experts is key.

In addition to the process itself, respondents in the survey definitely expressed concerns about understanding the types of loans available. Here are just a few of the basic loans to consider. Be sure to speak with your lender about the specifics of what will work best for you:

• FHA: Loans guaranteed by the Federal Housing Administration for first-time buyers. They generally enable qualified borrowers to enter the housing market with a lower down payment.
• Conventional: Loans that usually require a larger down payment. Repeat buyers usually use these types of loans since they have an established credit history as well as more money from the sale of their previous home (called equity) for a bigger down payment.
• VA: Loans available for Veterans of the U.S. Armed Forces and their spouses. They are guaranteed by the Department of Veteran Affairs.
• USDA: Loans for those living in rural and suburban areas. A qualified lender can issue a USDA home loan, and they are guaranteed by the United States Department of Agriculture (USDA).

Interest rates also popped up as a common area of confusion among Gen Z and Millennial respondents in the survey. With today’s rates hovering at near historic lows, it’s a fantastic time for buyers to get more house for their money in the current market. Why? When mortgage rates are this low and wages are increasing as they are today, overall affordability increases, enabling home buyers to stretch their mortgage dollars further. It’s just another area where a trusted professional can help simplify the process and give guidance along the way.

Bottom Line

There are many possible steps in a real estate transaction, but they don’t have to be confusing. To understand your best course of action, let’s get together today to ensure you have a trusted advisor who will help you feel confident and informed at every turn.

And, even before we get together, take a look at the video series I did with one of my trusted mortgage lenders. It will help you understand quite a bit about the home buying process.

Click on the link below to start the series:

 WitzRealEstate First Time Buyer YouTube Video Series

Housing Sales Are HOT!!!

The #1 Reason to List Your House Right Now

The success of the U.S. residential real estate market, like any other market, is determined by supply and demand. This means we need to look at how many potential purchasers are in the market versus the number of houses that are available to buy. With early 2020 housing data now rolling in, it’s quite evident there are two big stories impacting this year’s residential real estate market:

1. Buyer demand is already extremely strong
2. Housing supply is at a historically low level

Demand

ShowingTime is a firm that compiles data from property showings scheduled across the country. The latest ShowingTime Showing Index reveals how showings have increased in each of the country’s four regions for five months in a row.

Supply

Move.com also just released information indicating that the number of homes currently for sale has declined rapidly and now sits at the lowest level in almost a decade. They explained,

“National housing inventory declined 13.6 percent in January, the steepest year-over-year decrease in more than 4 years, pushing the supply of for sale homes in the U.S. to its lowest level since realtor.com began tracking the data in 2012.”

In response to these numbers, Danielle Hale, Chief Economist at realtor.com, said,

"Homebuyers took advantage of low mortgage rates and stable listing prices to drive sales higher at the end of 2019, further depleting the already limited inventory of homes for sale. With fewer homes coming up for sale, we've hit another new low of for sale-listings in January."

The decrease in inventory impacted every price range, too. Here’s a graph showing the data released by move.com:

Bottom Line

Since there’s a historic shortage of homes for sale, putting your home on the market today could drive an excellent price and give you additional negotiating leverage when selling your house. Let’s get together to determine if listing your house now is your best move.

Those Buyers Are Out House Hunting - In Full Tremendous Force!

Home Ownership Rate on the Rise to a 6-Year High

Regardless of the lack of inventory on the market, the U.S. homeownership rate has climbed to a 6-year high. The United States Census Bureau reported that it increased to 65.1% in the fourth quarter of 2019, representing the highest level in the past six years. See the graph below:This increase does not come as a surprise. According to realtor.com,

“The largest cohort of the millennial generation turns 30-years-old in 2020 and they are hitting the housing market in full force. At the end of the fourth quarter of 2019, millennials made up the largest generational segment of homebuyers, growing their share of home purchase mortgages to 48 percent.”

With so many Millennials entering a homebuying phase of life and getting into the market, the Millennial Report also explains,

“Homeownership is an even bigger goal for younger generations. Of those with savings, 41 percent of Gen Z and 40 percent of younger millennials are saving to buy a home.”

Today’s low interest rates are providing a break to new homeowners too, regardless of generation, making homeownership more desirable and achievable at the same time. Freddie Mac explains,

“The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”

The increase in homeownership rate was also represented by race and ethnicity of the householders. HousingWire explains,

“The homeownership rate for black Americans in 2019’s fourth quarter rose to 44%, a seven-year high, increasing from the record low it reached in 2019’s second quarter. The rate for Hispanic Americans was 48.1%, a two-year high, the Census data showed…The rate for white Americans was 73.7%, an eight-year high.”

See the graph below:

Bottom Line

If you’re considering buying a home this year, let’s get together to set a plan that will help you get one step closer to achieving your dream.

New Buyer - New Construction?

Yesterday was a long telephone day. Two new buyers that I chatted with. One interviewing Realtors over the phone, I was second one they talked to. The other new Buyer had gone out with a Realtor that their lender recommended and would give part of his commission back to buyer....and then a trusted friend said 'Dude, you have got to work with Lauren!' for a multitude of reasons.

One, of course, being experienced and detail oriented.

The second one is interested in new construction. Mostly because if he can get in on one of the early phases it will be like instant equity as the future phases go up in price. I said you'd have to live with all the continued construction and sometimes the HOA amenities aren't completed. But, his was a valid point for sure.

Then I saw this article today in our local Signal:

Gas Main Break Results in Emergency Response

I'll be sending the article to the second buyer for sure....

At any rate, buying new construction....sooooo pretty! You can pick your lot, do your upgrades, landscape your yard. All wonderful, and generally more expensive, things you can do!

But, if there are re-sale homes available now....while interest rates are low NOW.....that have all the upgrades, landscape, great location....why wait?

So I sent Buyer #2 a list of neighborhoods that I think would suit his list of desires & a new re-sale listing that popped up this morning.

Looking forward to meeting Buyer #2 this afternoon.....after he's read about the gas leak....

Questions about Real Estate? Just holler!

 ~ Lauren@KeepYourWitz.com ~ (661) 313-5470 ~