A Strategy to Help You Find the Right Home at the Right Price

If you’re a homebuyer, I have a strategy you can follow that will allow you to take advantage of our current market.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

As a buyer, what kind of strategy should you use to find the right home at the right price in our shifting market? There are a few keys to keep in mind.

First, have a number in mind of what you want to spend on a monthly basis for your mortgage. Lending is opening up, and there are mortgage options available that will allow you to have the terms of your payment bought down. Although home prices have come down recently, they’re not going to drop, and since interest rates are rising, you’re better off buying now than waiting, say, six months. Even if you do wait and find a lower-priced property, you’ll still end up paying more for it because you’ll have a higher mortgage payment.

Next, make sure you know what you want in your future home. In this regard, it helps to sit down and write out a list of things you want versus things you need.

Since interest rates are rising, you’re better off buying now than waiting, say, six months.

Also, be sure to minimize the number of contingencies in your offer. The more you can minimize your contingencies, the more attractive your offer will be. The contingencies in your offer help to protect you, but they don’t offer the seller any protection, and they can prevent you from closing in a timely manner. In addition to minimizing your contingencies, you can also make your offer more attractive by doing things like getting pre-approved and putting down a high down payment.

Lastly, be ready to walk if the deal just doesn’t work. If the price is just too high or the location doesn’t work, don’t get emotional about it—know what you need and know when you should walk away.

If you’d like to start your home buying journey and you want to talk more about developing a strategy that will find you the right home at the right price, don’t hesitate to give me a call. I’d love to help you get started.

If you have any other real estate needs, feel free to reach out to me as well. I look forward to speaking to you.

How Changes to Our Southern California Market Might Impact Your Goals

What is going on in our market right now? Let’s find out.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

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.

You Get What You Pay for With Discount Brokerages

Discount brokerages are a cheaper alternative when selling a home, but in real estate, you get what you pay for. Here’s why.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

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.