Now that we’ve entered the fourth quarter of the 2018 real estate market, it’s time to reflect on the changes we’ve seen recently and over the course of the year.
First off, contrary to past trends, we’ve seen an 11% increase in the number of new listings in the last 30 days. This kind of market activity is much more common in the busier months of July and August.
That said, the market is still much slower than in the recent past. Sellers will need to be patient in waiting for their listings to find the right buyer, as homes are currently spending an average of 111 days on the market before they sell.
Sellers today will need to be patient in waiting for their listings to find the right buyer.
Working with a quality Realtor who can help you price your listing correctly from the start will be key to your success. Price plays a huge role in how any listing performs on our current market. Luxury homes, for example, have seen an even greater increase in inventory than what we previously mentioned—rising an impressive 38%.
Sellers and buyers alike must keep these conditions in mind while pursuing their real estate goals.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.
The growing popularity of discount brokerages is a relatively recent development in the real estate market. These brokerages, such as Purplebricks, Rex Real Estate, Zillow, and Redfin Now, typically charge a flat fee or a lower percentage when selling a home. What sort of impact do these cheaper alternatives have when it comes to getting your home sold?
Today, we’ll be comparing discount brokerages to the offerings of more traditional options:
You may have already heard of Purplebricks. Originally based in the U.K., this company has begun conducting business in America as well. There are a total of 60 agents throughout the United States, with only 18 of those agents working in California. With so few agents dealing with so many residents, it’s not hard to realize that you won’t be able to receive much personal attention or negotiation capability.
They charge a $3,600 flat fee to list your home and put it in the MLS, but even if it doesn’t sell, you still owe them for that fee. If they’re doing a poor job and you want to quickly terminate the contract, good luck.
These agents work by quantity, completing around 20 transactions per month. There is a lot of paperwork that goes into selling a house, following up with appraisals, inspections, etc., which means agents are bogged down with too much work to give you their undivided attention.
Are they the people who would give you top dollar on your home?
Another such company is Redfin’s new Redfin Now program. They’ll offer you a cash price and close on your home in about three days if they can find a buyer. However, the price your home will be sold for is typically really low. In one example here in Southern California, a listing agent was going to be doing the usual legwork for a sale and saw a Redfin Now offer for $30,000 less than average comps in the area. Though Redfin Now gets homes closed quickly with a cash deal, you need to make sure you’re not taking a huge hit financially. They have to make their money back somehow.
Rex Real Estate offers a 2% total commission percentage, which is 1% to the buyer’s agent and 1% to the listing agent. Though it’s a definite discount, you’re giving up some important things. They do not put your home in the MLS—95% or more of sales come from the MLS where almost all agents find their properties. Instead, they’re putting listings on social media platforms, such as Facebook or Instagram. They’ll do an open house for you, but who is going to come? This marketing isn’t going out to the public, and if people even do show up, are they the people who would give you top dollar on your home? Discount brokerages are only looking to sell homes in mass quantities. They are not interested in getting you the highest price when you sell your property, nor are they interested in providing you a high level of customer service, negotiation, or marketing. If you have any questions or would like some further information, feel free to contact me. I look forward to hearing from you.
Today we’re joined by a special guest, Jay Rodriguez from New American Funding, to talk about a few ways that homebuyers can increase their chances of securing a home loan. Jay offered some great tips, which we’re going to share with you now.
According to Jay, the biggest factor in qualifying for a loan is your ability to repay. That means when you’re applying for your loan, make sure that the job you are getting your approval based on is going to be your job all throughout the process. If your income and employment are consistent, it’s a lot easier to get qualified.
Don’t move any large amounts of money around in your bank account.
As far as credit is concerned, your score and your debt need to be as clean as possible. Don't make those large purchases with credit during the loan approval process. They will check your credit multiple times through the process to make sure that you haven’t opened any new accounts or taken on any new debt. At the same time, you don’t want to close any credit cards during the approval process because if you do, it will be very detrimental to your score.
Finally, don’t move any large amounts of money around in your accounts. Any money that’s used in the transaction will be inspected and sourced. Your lender has to know where it’s coming from if it hasn’t been sitting there in your account for at least a few months.
If you follow these tips, your lender is much more likely to say “yes” and much less likely to say “no.” If you have any questions for Jay, feel free to reach out to him at (949) 214-2810. If you have any other questions for me in the meantime, don’t hesitate to give me a call or send me an email at any time. I look forward to hearing from you soon.
