Just an FYI, I've Never Been Under Federal Investigation....

But, apparently.....not surprisingly either.....Opendoor has. 

Opendoor is an American real estate company based in San Francisco. It makes as-is cash offers to property sellers through an online process, improves and repairs the properties it purchases, and relists them for sale. Wikipedia

Yup, I copied and pasted that right off good ole Wikipedia....no fake news for me! 

At any rate, HousingWire shared their article with me. Which, also noted that iBuyer had 118Million dollars in losses in just the first 1/2 of 2020.

I guess the reason for this sharing of info on this one is pretty obvious. Be careful. Be extremely careful when you're buying or selling a home.

I know sometimes it seems like Realtors make tons of money. So you look around to see where you can save a few bucks. Not going to kid you, every once in a while an escrow goes effortlessly and I think "Wow, that's a nice paycheck for that easy escrow!" But, that's not the common. There is so much work that we do to protect our clients, before, during, after. So much that our clients aren't aware of. Maybe I should tell them? Just kidding, my job is to make the process as stress free as possible for my peeps.

At any rate, back to Be Careful. You truly do get what you pay for. I'm happy to answer questions, tell you what we do day in & day out. Tell you the differences between me and a real estate company that is under federal investigation. Eeeeck!

Do You Want To Go Back To The Office?

Reading everything as usual. Stopped at the LA Times and peeked around. Read the real estate section. Saw all the wildly expensive homes that movie stars and entertainment peeps are selling/buying.

Then moved on to an article about workers 'quietly trickling back to L.A. offices'. Almost like it was a secret?

A lot of things we've been reading about Real Estate has noted that people are working from home, need office spaces, child learning areas, and generally just more area in the home and back yard since they are working remotely.

Personally, I have been hoping that the remote working continues as much as possible as I believe it would certainly help the environment and the people that have been commuting such long travel times would have more sanity and, of course, more time with their families!

But, this of couple lines caught my eye:

“White-collar business has drawn the conclusion that socialization is key to productivity,” he said. “What we are hearing is that productivity is noticeably dropping” as working from home drags on during a pandemic with no end in sight.

So, I ask you readers.....how's your productivity from home? Are you missing your co-workers enough that you're starting to doodle at your home office desk? Are you ready to get back to work and that, in all likelihood, commute?

I think many people are actually loving the work from home situation, but I am curious if you've done more laundry on work hours than you could before? 

Thinking About Buying or Selling a 'Luxury' Home? Read On....

Buyers Are Finding More Space in the Luxury Home Market

A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.

The Institute for Luxury Home Marketing (ILHM) explains:

“With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.

For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”

This was not the case at this time last year, as the most recent Luxury Market Report from ILHM emphasizes:

“Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”

For today’s buyers looking for larger homes, steady increases in equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes:

“Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market.

Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their city lifestyle for a home that has it all.”

Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the luxury market to meet those changing needs.

Bottom Line

If you’re ready to gain some breathing room in a larger home, let’s connect so you have the guidance you need to find more space in the luxury home market.

Finding More Joy In Your Home

Since we've been at home more than normal for the last six months, we may be feeling a little down in the dumps. Feeling like your home is .....blah?

I actually truly love my home. I was walking around this morning like I always do, and every window I looked out of it brought me joy. Maybe I'm just lucky. Maybe I'm just weird?

But, Houzz email drip brought me this article:

10 Ways to Make Your Home Feel More Joyful

And, yes, one of the ideas was to paint a bright & cheerful color on a wall! Which definitely can do the trick. And, paint is soooo easy to change, so why not? 

Needless to say one of the ideas was to have a pet. Another was to create what felt like a vacation in one of your rooms. Maybe a hobby area, I have my dining room table set up as my watercolor art area....well, I leave it there but I do wish I had a separate studio for it!

At any rate, if you're feeling meh about your current home, you can either move, or take on one of these ideas and see if that helps with the blah's.

Enjoy the article, I sure did!

Headlines of Bad Memories!

 

"Homeowners gain over $620 billion in equity in second quarter"

I read that and it took my breath away. Literally, I inhaled and thought...oh sh*t.

I've been in the Real Estate industry long enough for that statement to cause concern. When we had a quick abundance of equity in homes almost 15 years ago a lot of people took out lines of equity. And, subsequently, a lot of people couldn't pay those back...or chose not to...when values plummeted. 

Now, nothing is telling me we are going to plummet in value. But, everything is leading to a correction in value. It's inevitable.....experience tells me this.

So, my reminder in this blog post today is to be cautious. Be wary. Be truthful. 

If you have to tap into your home equity, for whatever reason, be sure that if values take a wee dip that you will still pay it back. Please do pay it back.

IMHO it shouldn't be any other way.

Is It? If You're Buying a Home To Live In For Several Years....Then, Yes!

 

The Cost of a Home Is Far More Important than the Price

Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported:

“Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.”

Whenever there is a shortage in supply of an item that’s in high demand, the price of that item increases. That’s exactly what’s happening in the real estate market right now. CoreLogic’s latest Home Price Index reports that values have increased by 5.5% over the last year.

This is great news if you’re planning to sell your house; on the other hand, as either a first-time or repeat buyer, this may instead seem like troubling news. However, purchasers should realize that the price of a house is not as important as the cost. Let’s break it down.

There are several factors that influence the cost of a home. The two major ones are the price of the home and the interest rate at which a buyer can borrow the funds necessary to purchase the home.

Last week, Freddie Mac announced that the average interest rate for a 30-year fixed-rate mortgage was 2.87%. At this time last year, the rate was 3.73%. Let’s use an example to see how that difference impacts the true cost of a home.

Assume you purchased a home last year and took out a $250,000 mortgage. As mentioned above, home values have increased by 5.5% over the last year. To buy that same home this year, you would need to take out a mortgage of $263,750.

How will your monthly mortgage payment change based on today’s lower mortgage rate?

This table calculates the difference in your monthly payment:That’s a savings of $61 monthly, which adds up to $732 annually and $21,960 over the life of the loan.

Bottom Line

Even though home values have appreciated, it’s a great time to buy a home because mortgage rates are at historic lows.

All Those 2020 Memes? Mine is Now 'Welcome To Real Estate 2020'

No one would have predicted what is happening in Real Estate right now. The beginning of the Pandemic everyone expected the sales to drop off and be one of the worst home sales years ever.

But, hey, with all the other insane things happening in 2020....why not have one of the most robust Sellers Markets ......ever! Well, that I can remember from the last 18 years of selling homes!

I'm not going to kid you, my Sellers have been very pleased. VERY pleased! But, buyers? In the last few weeks alone it's turned into absolute craziness!

Just this week, working on scheduling appointments to view homes has proven the insanity continues. Sellers schedule, Zoom schedules, Buyers schedules, Agents schedules....the pandemic has made all schedules more challenging to say the least.

And, at least a 1/2 dozen times this week after madly trying to coordinate showings for my clients I've gotten messages that the seller is canceling showings as there have already been enough viewings...or something along those lines. The most recent one was 7 offers in 2 days, 4 counters out, cancelled further showings.

And, so I have to tell my Buyers....and, their response is always....'That's Crazy!' Yes, why yes it is. And, my response has been....."Welcome to Real Estate 2020". 

And, this is exactly what it's like.....

Another scene out of some crazy movie!!

I've always got a few tricks up my sleeve for multiple offers. Right now though? It's offer over list, regardless of sales data value, and be willing to pay over appraised value. And, likely quite a bit more over!

Questions about Real Estate now and in the future? Just reach out, you know how to find me!