Los Angeles Real Estate BlogRecently posted or modified blog posts in the category - Selling Your Homehttps://www.thinkrealestategroup.com/blog/Copyright ThinkRealEstateGroup.com2023-11-20T15:00:55-07:00tag:thinkrealestategroup.com,2012-09-20:31382Pros and Cons of Selling As-IsSelling Your Home As-Is: A Smart Choice?
The Quick and Stress-Free Path to Selling Your Home
Are you pondering selling your home in its current condition, without the hassle of repairs or improvements? Dave Robbles from Think Real Estate Group, based right in the LA area, sheds light on what it takes to sell your home "as is."
What Does "As Is" Really Mean?
Selling your home "as is" means putting your property on the market in its existing state. You're telling potential buyers upfront that you won't be making any repairs before the sale. It's straightforward and honest, but is it the right choice for you? Let's dive into the pros and cons.
Pros of Selling As-Is:
Speed: Get your house on the market faster, saving time (and time is money!).
Less Stress: Avoid dealing with contractors and extensive repairs.
Upfront Cost Savings: No hefty expenses for repairs and upgrades.
Attracts Investors: A specific audience often looks for as-is sales opportunities.
Cons of Selling As-Is:
Limited Buyer Pool: This can lead to lower offers.
Market Reception: Some buyers might be put off by the as-is label.
Complex Negotiations: More factors come into play than just price.
Potential Delay: It might take longer to sell if not priced right.
Tips for a Successful As-Is Sale
Selling as-is doesn't have to mean "buyer beware." Here's how to do it right:
Avoid Surprises: Disclose known issues to control the narrative.
Preemptive Inspections: Helps in negotiating a fair price while being transparent.
Consider Financeable Repairs: To ensure the home's value isn't negatively impacted.
Simple Touches: Sometimes, a bit of paint and staging can dramatically increase the sale price.
Real Examples, Real Success
We've seen numerous fixer-uppers transformed with just a little touch-up and staging, selling for incredible prices as-is.
Conclusion
You don't always need to invest in big fixes to sell your home for a great price. If you're considering selling your home as-is and want a private discussion about your options, Think Real Estate Group is here to guide you through every step.2023-11-15T13:37:04-07:002023-11-20T15:00:55-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:30039HOW TO Legally Avoid Paying Taxes When You Are Selling PropertyWhat are the potential tax consequences that come into play when your spouse passes or when inheriting property? Well, rules have recently changed and It is crucial you understand the tax implications ahead of time because it could save you a lot of money. Just a quick reminder, though: I'm not an accountant, so it's always a good idea to consult with a professional for personalized advice. Now, let's dive into the tax implications that you might encounter in these scenarios.
When you're dealing with the sale of a capital asset like real estate, there are certain tax considerations that can apply. It's worth noting that this discussion doesn't pertain to the home sale tax exclusion that allows a married couple to claim up to a $500,000 tax-free gain on the sale of their primary residence. This is something different altogether and extends beyond your primary home.
Let's imagine you've owned a property for a significant period of time, perhaps having bought it for $300,000, and now you're looking to sell it for $1,300,000. In this example, there's a sizable gain of $1 million that the IRS would typically want a piece of. However, if your spouse were to pass away, you, as the surviving spouse, would get the advantage of a stepped-up cost basis. This means that the value of the property on the day your spouse passed away becomes your new cost basis. If that stepped-up amount equals $1,300,000 and you sell the property for the same amount, there's effectively no taxable gain.
But what if your spouse passed away a few years back when the property was valued at $1 million? In that case, the $1 million would be the cost basis used for calculating gains when selling the property today at $1,300,000. This would result in a gain of $300,000. Nevertheless, if the property is your primary residence, you might also qualify for the $250,000 home sale tax exclusion, which could potentially be $500,000 if both you and your spouse qualify for it. It's definitely a smart move to discuss these details with your accountant to see how this might apply to your specific situation.
If your intention is to leave your property to your children or other heirs, establishing a trust can be a beneficial strategy. This way, when you and your spouse pass away, your children or heirs can take advantage of the stepped-up cost basis as well. This might allow them to sell the property with minimal or no tax consequences, depending on the new cost basis and the eventual sales price.
If you're curious about how all of this applies to your personal circumstances and you'd like to have a more private conversation, or if you're seeking a referral to a trusted accountant, please don't hesitate to reach out. We're here to provide assistance and help you navigate these complex tax matters.
2023-09-05T11:49:32-07:002023-09-05T12:42:57-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:28172HOME MAKEOVER - Staging A Home Before and AfterStaging A Home Before And After / How to make The Most Money on Your Home https://www.thinkrealestategroup.com/sellers/free-market-analysis/ Many homes are going under contract the first weekend they're listed—and sometimes without any preparation for the market. Still, real estate professionals can't promise sellers their property will stand out and receive the highest offers unless buyers fall in love with the home.
That's where staging makes a big difference! In what ways does staging capture buyers' hearts for a successful, top-dollar sale? With staging, you minimize the negatives and accentuate the positives of a property to make the best impression. Start by decluttering and depersonalizing to remove any potential distractions. Then, add a coat of neutral wall color to brighten the space, remove dated window treatments, and strategically arrange furniture and remove bulky pieces. These simple updates will help play up the home's unique features and increase the perceived value.
More than a quarter of buyers are more willing to overlook property faults if a home is staged, according to NAR's 2021 Profile of Home Staging. Staging is an investment that helps maximize the rate of return on the sale of the property—and usually costs less than the first price reduction. With an average investment of 1% of the sale price into staging, about 75% of sellers saw an ROI of 5% to 15% over asking price, according to data from the Real Estate Staging Association (RESA). A recent survey from the International Association of Home Staging Professionals shows that staging helps sell homes three to 30 times faster than the nonstaged competition. Further, staging can help increase the sale price by up to 20% on average. For sellers who decide not to stage, the IAHSP survey also shows that the average price reduction on a home was five to 20 times more than what the staging investment would have been.
Dave Robles is the owner of Think Real Estate with agents throughout the greater Los Angeles area and in Utah. He is the managing broker for eXp Glendale, California. Dave has been a top producing agent and real estate agent trainer for over two decades. He has established a reputation for building relationships with his clients and the agents he mentors. Dave leads his team with a focus on service to the surrounding communities2023-06-30T15:01:47-07:002023-07-13T12:56:20-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:28169HOW TO Get The Most Money For Your House In 20232023-06-30T14:57:10-07:002023-07-13T12:56:44-07:00Wendy Coltontag:thinkrealestategroup.com,2012-09-20:26470Help Homebuyers Help YouYou walk into an open house that’s a cosmetic fixer. All you think it needs is paint, new floors, and new appliances. You make an offer, it gets accepted. Now you, as the Buyer, get the home appraised. <br /> <br />Your Lender sends an appraiser out to appraise the home. The home appraises at value but with one problem – the lender states: Roof must be replaced prior to close of escrow for loan to fund.<br /> <br />Say what?<br /> <br />More often than not, this happens in real estate transactions. Deferred maintenance can kill deals, especially when it comes to the following:<br />• Roof<br />• Foundation<br />• Sewer line<br />• Termite/mold damage<br /> <br />As a homeowner, you think, who cares? I’m not selling. But have you considered the long-term effects of ignoring the life spans of certain items? This can hurt the overall value of a home. Houses are like people. When they get older, they require more maintenance. If you don’t take care of it and do the maintenance required, it can be much costlier down the line. Time and time again, I go into homes that have not been touched in 50 years. Some are a time capsule, and some are even “unlendable” (banks won’t lend on homes if they have too many big-ticket items to repair). Yet some hit the sweet spot of being clean and well cared for. Even if the décor feels old, the big-ticket items have been replaced such as roof, hvac, plumbing, electrical, and termite. It’s apparent when the home has been cared for. These are the homes that sell quickly and retain the most value. <br /> <br />Selling your “forever” home is usually not on one’s agenda. But when the unexpected happens, and you have to sell, have peace knowing you’ve already jumped over the big hurdle of getting your home ready. Your future homebuyer will thank you for it!2023-04-28T05:53:06-07:002023-05-12T04:47:49-07:00Nicole Schluetertag:thinkrealestategroup.com,2012-09-20:24735HOW TO Sell Your Home For The Most Money in 2023 - Highland Park, CAHow to Sell Your Home For The Most Money in 2023. Having a real estate agent like wendy colton on your side that will go above and beyond for their clients pays off in the end. She understands what it takes for buyers and sellers to pay top dollar that most people wouldn't notice right away. Her expertise is what will make your home sell for above market price. With a professional background in international business, Wendy possesses a unique skill set as a Real Estate Agent. Through successful ventures both domestic and abroad, she understands that honesty, perseverance, consistency, and great communication skills are the keys to successful deals and relationships. 2023-02-07T16:26:06-07:002023-02-10T13:45:24-07:00Wendy Coltontag:thinkrealestategroup.com,2012-09-20:24408Is Your Home Show Ready?The gardener came, you got rid of your clutter, packed up your personal photos, and even got the carpets cleaned. You feel ready to sell your home to get top dollar, right? I wish it were that easy! Getting a home ready to sell in today’s real estate market not only takes work, it can be downright daunting! It’s not just cleaning up and taking professional photos anymore. You need a strategic plan that includes marketing your home at the right time to the right people to get the most value. Below are some essential “must-do’s” to get your home show ready:
Educate yourself on the market.<br />Before you do anything, look at homes. Check out the open houses in your neighborhood and nearby. See how many days they were on market until they went into escrow. Did the one with the pool go fast? Or did the remodel on the big lot go sooner? Thanks to Zillow and Redfin, that information is at your fingertips. Also, track the list price vs. what they sold for.
Do a general physical inspection of the home.<br />Deferred maintenance is one of the most significant setbacks for home sellers. Those “fix-it” projects over the years can add up, hurting your home value. Even though you may get many offers on your home, once the winning offer is accepted and the buyer has done their inspections, they can come back with a list of Request for Repairs. With this request, they can ask for a credit, or worse, they want those items fixed before the close of escrow. It is best to get those repairs done first or fixed altogether as buyers like to see pride in homeownership, making them more secure in submitting an offer.
Embrace painting.<br />I know this sounds like a big expense, but time and time again, homes that have a fresh coat of paint sell for thousands of dollars more (beyond the cost of the paint job) than homes that have not been painted. It makes the home feel like new again. Plus, if the house hasn’t been painted in 20 years, most likely, the color on the wall is not current anymore. Home interiors that appear dated project less value in buyers’ eyes, thinking they can “get a deal.” White or a neutral color allows the interiors to look clean and bright and the living space to look bigger.
Staging sells.<br />Staging can save you from a costly price reduction. According to the National Association of Realtors, a staged home will sell for 17% more on average than a non-staged home, and 95% of staged homes sell in 11 days or less. That is statistically 87% faster than non-staged homes. Homes are emotional, and it is best to have a neutral warm, inviting interior to allow the buyers to visualize themselves living there.
As real estate professionals, our job is to prepare your home for success. Putting in the hard work before you sell sets the stage for an exciting and positive outcome.
I’m happy to help you get there.2023-01-27T12:52:52-07:002023-02-21T01:32:19-07:00Nicole Schluetertag:thinkrealestategroup.com,2012-09-20:21043What is Causing Ongoing Home Price Appreciation?If you’re thinking about <a href="https://www.mykcm.com/2022/07/13/should-i-buy-a-home-right-now/" title="making a move">making a move</a>, you probably want to know what’s going to happen to <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> for the rest of the year. While experts say <a href="https://www.mykcm.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/" title="price growth">price growth</a> will moderate due to the shifting market, ongoing appreciation is expected. That means home prices won’t fall. Here’s a look at two key reasons experts forecast continued price growth: supply and demand.
While Growing, Housing Supply Is Still Low
Even though <a href="https://www.mykcm.com/2022/06/28/a-key-opportunity-for-homebuyers/" title="inventory is increasing">inventory is increasing</a> this year as the <a href="https://www.mykcm.com/2022/06/14/is-the-housing-market-correcting/" title="market moderates">market moderates</a>, supply is still low. The graph below helps tell the story of why there still aren’t enough homes on the market today. It uses <a href="http://www.census.gov/construction/nrc/xls/co_cust.xls" title="data" target="_blank" rel="noopener noreferrer">data</a> from the Census to show the number of single-family homes that were built in this country going all the way back to the 1970s.
<a href="https://files.mykcm.com/2022/07/21163345/20220725-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-103555" src="https://files.mykcm.com/2022/07/21163345/20220725-MEM-Eng-1.png" alt="What’s Causing Ongoing Home Price Appreciation? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/07/21163345/20220725-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/07/21163345/20220725-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/07/21163345/20220725-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/07/21163345/20220725-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The blue bars represent the years leading up to the housing crisis in 2008. As the graph shows, right before the crash, homebuilding increased significantly. That’s because buyer demand was so high due to loose <a href="https://www.mykcm.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/" title="lending">lending</a> standards that enabled more people to qualify for a home loan.
The resulting oversupply of homes for sale led to prices dropping during the crash and some builders leaving the industry or closing their businesses – and that led to a long period of underbuilding of new homes. And even as more new homes are constructed this year and in the years ahead, this isn’t something that can be resolved overnight. It’ll take time to build enough homes to meet the deficit of underbuilding that took place over the past 14 years.
Millennials Will Create Sustained Buyer Demand Moving Forward
The frenzy the market saw during the pandemic is because there was more demand than homes for sale. That drove home prices up as buyers competed with one another for available homes. And while buyer demand has moderated today in response to higher mortgage rates, <a href="https://data.census.gov/cedsci/table?q=United%20States&t=Populations%20and%20People&g=0100000US&tid=ACSST5Y2020.S0101" title="data" target="_blank" rel="noopener noreferrer">data</a> tells us demand will continue to be driven by the large generation of millennials aging into their peak homebuying years (see graph below):
<a href="https://files.mykcm.com/2022/07/21163348/20220725-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-103556" src="https://files.mykcm.com/2022/07/21163348/20220725-MEM-Eng-2.png" alt="What’s Causing Ongoing Home Price Appreciation? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/07/21163348/20220725-MEM-Eng-2.png 1000w, https://files.mykcm.com/2022/07/21163348/20220725-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/07/21163348/20220725-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/07/21163348/20220725-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/millennials-continued-to-drive-homeownership-demand-in-2021" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . millennials continue to transition to their prime home-buying age and will remain the driving force in potential homeownership demand in the years ahead.”
That combination of millennial demand and low housing supply continues to put upward pressure on home prices. As Bankrate <a href="https://www.bankrate.com/real-estate/june-2022-fed-housing-comments/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
What This Means for Home Prices
If you’re worried home values will fall, rest assured that experts forecast ongoing home price appreciation thanks to the lingering imbalance of supply and demand. That means home prices won’t decline.
Bottom Line
Based on today’s factors driving supply and demand, experts project home price appreciation will continue. It’ll just happen at a more moderate pace as the housing market continues its shift back toward pre-pandemic levels.2022-07-27T09:31:00-07:002023-02-10T13:22:50-07:00Jackson Marshalltag:thinkrealestategroup.com,2012-09-20:20322 Home Price Deceleration Doesn’t Mean Home Price DepreciationExperts in the real estate industry use a number of terms when they talk about what’s happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what’s happening with <a href="https://www.mykcm.com/2022/05/24/sellers-have-an-opportunity-with-todays-home-prices/" title="home prices">home prices</a> and where experts say they’re going, here’s a look at a few terms you may hear:
Appreciation is when home prices increase.
Depreciation is when home prices decrease.
Deceleration is when home prices continue to appreciate, but at a slower pace.
Where Home Prices Have Been in Recent Years
For starters, you’ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. You might be surprised to learn that home prices have climbed for <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index-Datasets.aspx#qpo" title="122" target="_blank" rel="noopener noreferrer">122</a> consecutive months (see graph below):
<a href="https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102951" src="https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1.png" alt="Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
As the graph shows, houses have gained value consistently over the past 10 consecutive years. But since 2020, the increase has been <a href="https://www.fhfa.gov/Media/PublicAffairs/Pages/US-House-Prices-Rise-18pt7-Percent-over-the-Last-Year-Up-4pt6-Percent-from-the-Fourth-Quarter.aspx" title="more dramatic" target="_blank" rel="noopener noreferrer">more dramatic</a> as home price growth accelerated.
So why did home prices climb so much? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was high and supply was low.
Where Experts Say Home Prices Are Going
While this is helpful context, if you’re a buyer or seller in today’s market, you probably want to know what’s going to happen with home prices moving forward. Will they continue that same growth path or will home prices fall?
Experts are <a href="https://www.mykcm.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/" title="forecasting">forecasting</a> ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. None are calling for prices to fall (see graph below):
<a href="https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102953" src="https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2.png" alt="Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2.png 1000w, https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/the-housing-market-is-slowing-by-design-but-dont-expect-a-bust" title="identifies" target="_blank" rel="noopener noreferrer">identifies</a> a key reason why home prices won’t depreciate or drop:
“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect house prices to decline.”
And although <a href="https://www.mykcm.com/2022/05/11/are-there-more-homes-coming-to-the-market/" title="housing supply">housing supply</a> is starting to tick up, it’s not enough to make home prices decline because there’s still a gap between the number of homes available for sale and the volume of buyers looking to make a purchase.
Terry Loebs, Founder of the research firm Pulsenomics, notes that most real estate experts and economists anticipate home prices will continue rising. As he <a href="https://www.forbes.com/sites/brendarichardson/2022/06/07/rising-rates-and-buyer-urgency-keep-home-price-gains-above-20-in-april/?sh=c5446d229ec7" title="puts it" target="_blank" rel="noopener noreferrer">puts it</a>:
“With home values at record-high levels and a vast majority of experts projecting additional price increases this year and beyond, home prices and expectations remain buoyant.”
Bottom Line
Experts forecast price deceleration, not depreciation. That means home prices will continue to rise, just at a slower pace. Let’s connect so you can get the full picture of what’s happening with home prices in our local market and to discuss your buying and selling goals.2022-06-22T16:17:00-07:002023-02-10T13:19:33-07:00Mark Duncantag:thinkrealestategroup.com,2012-09-20:19402Can You Cancel Your Home Sale In 2022 While In Escrow?The Home Selling process in 2022 can be difficult and confusing so Dave Robles and Think Real Estate is here to cover what you can and cannot do when selling your home. 2022-05-13T14:34:00-07:002023-02-10T13:17:07-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:193446 Home Improvement Tips To Increase Your Value and Sale Price In Los AngelesJames You and his years of experience in the real estate market gives you 6 of the most profitable tips on home improvement and how it will make your home's value and sale price sky rocket. Following these tips will allow you to make the most profit when selling your home in Los Angeles.2022-05-11T11:54:00-07:002023-02-10T13:16:26-07:00James Youtag:thinkrealestategroup.com,2012-09-20:19197Today’s Home Price Appreciation Is Great News for Existing HomeownersIf you’re planning to <a href="https://www.mykcm.com/2022/03/14/this-spring-presents-sellers-with-a-golden-opportunity/" title="sell your home">sell your home</a> this season, rising prices are great news for you. But it’s important to understand why <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" title="prices">prices</a> are rising to begin with. One major factor is <a href="https://www.mykcm.com/2022/03/04/supply-and-demand-in-todays-market-infographic/" title="supply and demand">supply and demand</a>.
In any industry, when there are <a href="https://www.mykcm.com/2022/02/23/how-supply-and-demand-can-impact-your-buying-and-selling-goals/" title="more buyers">more buyers</a> for an item than there are of that <a href="https://www.mykcm.com/2022/04/14/on-the-fence-of-whether-or-not-to-move-this-spring-consider-this/" title="item available">item available</a>, prices naturally rise. In those situations, buyers are willing to pay more to get the product or service they’re looking for when options are scarce. And that’s exactly what’s happening in the current real estate market.
Selma Hepp, Executive, Research & Insights and Deputy Chief Economist at CoreLogic, puts it like <a href="https://www.corelogic.com/intelligence/us-sp-corelogic-case-shiller-index-picks-up-pace-once-again-up-19-2-in-january/" title="this" target="_blank" rel="noopener noreferrer">this</a>:
“With so few homes, buyers are once again left with fierce competition that’s driving the share of homes that sold over the listing price up to 66% . . . With the continued imbalance between supply and demand, home prices are likely to have another year of strong gains and are expected to average about 10% growth for the year.”
Because it will take some time for housing supply to increase, experts believe prices will continue rising. The latest <a href="https://pulsenomics.com/surveys/#home-price-expectations" title="Home Price Expectations Survey" target="_blank" rel="noopener noreferrer">Home Price Expectations Survey</a> forecasts what will happen with home prices over the next 5 years. As the graph below shows, while the rate of appreciation will moderate over the next few years, prices will continue rising through 2026:
<a href="https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-101956" src="https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng.png" alt="Today’s Home Price Appreciation Is Great News for Existing Homeowners | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng.png 960w, https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng-600x450.png 600w, https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng-768x576.png 768w, https://files.mykcm.com/2022/04/26123818/20220502-MEM-Eng-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What This Means When You Sell Your House
If you’re a homeowner, the projection for continued price appreciation this year opens up an opportunity to move. That’s because it may give your <a href="https://www.mykcm.com/2022/04/08/do-you-know-how-much-equity-you-have-in-your-home-infographic/" title="equity">equity</a> a major boost. Equity is the difference between what you owe on your house and its market value. The amount of equity you have increases as you make your monthly payments and as rising home prices drive up the market value for your home.
Growing <a href="https://www.mykcm.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/" title="equity">equity</a> is a powerful tool for homeowners. When you sell your house, the equity you’ve built comes back to you in the sale. That money could be enough to cover some (if not all) of your down payment on your next home.
Of course, if you want to know how much equity you have in your current house, it’s crucial to work with a real estate professional. They follow current market trends and can help you understand your home’s value when you’re ready to sell.
What This Means for Your Next Purchase
But today’s rising home values aren’t just good news if you’re ready to sell. Because price appreciation is forecast to continue in the years ahead, you can rest assured your next home will be an investment that should grow in value with time. That’s one of <a href="https://www.mykcm.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/" title="several reasons">several reasons</a> why real estate has been rated the best investment in a recent <a href="https://www.mykcm.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/" title="Gallup poll">Gallup poll</a>.
Bottom Line
If you’re weighing whether or not you should sell your house this season, know rising home values may be opening up an opportunity to use equity to fuel your move. Let’s connect so you can find out how much your home is worth and to learn more about all the benefits you have in today’s market.2022-05-05T09:30:00-07:002023-02-10T12:56:02-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:17246Selling a House is FUN!! Said NO ONE EVER!Selling a house is fun, said no one ever.
You know, there is something fun about buying a house, you have this dream of a big life change ahead of you, and maybe you and your partner go out on a Sunday and you've got your Starbucks coffees and you go to open houses and you connect with the realtor. And it's full of dreams and expectations and it's a wonderful time in your life. And unfortunately, the other side of selling your home is absolutely not fun. It
is one of the most stressful times in a homeowner's life. They're worried that people are going to be judging their home. They're worried that they're making some big mistake, and it's going to cost them tens or hundreds of thousands of dollars. They're worried about selling their home and becoming homeless. They're worried about maybe they don't find the right home and they have to settle because they sold their house. There's so much stress in selling a home. Yet buying the home is all rainbows and unicorns, so it's not the same. They're completely opposite. Yet as clients. We have to deal with all of them and we have to help each one meet their goals. It's really it's not an easy job. 2022-01-24T13:18:00-07:002023-05-25T15:43:26-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:17146Offer Love Letters. Do they work?So why are real estate love letters so controversial?
If you're a buyer, you may have written a love letter for a home. If you're not familiar with this practice, it is when you present an offer to the seller, along with a letter about who you are and how much you love their home, and how you will care for it if selected as the buyer. Letters like these work. You're humanizing yourself and making you and your offer stand out from the pack. If the homeowner has 3 or 4 or even 20 offers, any edge you can get can be helpful. But the practice is controversial. Why, the seller can accidentally make a decision that can be a fair housing violation. A seller cannot make a decision to sell a house to anybody based on their gender, sexual orientation, on their ethnicity, or on their religion. None of that can be considered when selling a home to somebody.
However, if there's anything in that letter that could tip the hand as to your sexual orientation or your ethnicity or your religion, then that could give the seller information that they may unknowingly use. For example, I had a homeowner once review the letter and say, “Oh, look at this lovely family, they even go to my church.”. I explained that that is not allowed. You can not sell a home to somebody because they go to your church. That is a fair housing violation.
Ultimately she chose the highest offer, but it's important if you're a homeowner, that you know how this can get you into trouble. Many agents are now not even allowing the love letter. This is controversial. If you have any questions about whether or not you should write a love letter or not. Give us a call. We're happy to help.2022-01-17T13:31:00-07:002022-01-18T10:46:29-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:16954Story Time: The Tree that Stopped an EscrowWhat is better, a short escrow or long escrow? When you're selling your home, you get to choose whether or not you have a quick 30-day escrow, or if you want to stretch it out and have a long 60-70 day escrow. Does it matter? Every escrow is different of course but here is a story that happened some years back. I had listed a home in Silver Lake and my seller opted for a nice 60-day escrow, she wanted to take her time, and on the 58 day, a tree fell on her house.
Fortunately, no one was hurt, but the house certainly was. The buyer did not want to close escrow in two days on a home that was newly damaged by the tree that had just fallen on it. We had to get this fixed. This meant visits from insurance agents and contractors. It was a big deal. We ultimately got it resolved but it extended the escrow more than a month. So the moral of the story, close the escrow quickly as you are able to because you can’t predict the future. 2022-01-03T12:13:00-07:002023-02-10T12:27:10-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:16465What is the Best Time of Year to Sell your Home?In my twenty-seven years in this business one of the most common questions I get is, “When's the best time of year to sell your home?”.
It's a complicated answer. For example, the common answer is springtime. Spring flowers are in bloom, the weather is nice, and buyers are out shopping. And while it’s true that spring is a great time to be on the market, it's also a very common time. So you're stepping into a lot of competition. There's just more inventory in the springtime than there are at other times of the year. But there are more buyers, too.
Right after spring in July and August is not a great time to be on the market. In the Los Angeles price point, a lot of people go on vacation in July and August. You've got fewer eyes on your home during those months. However, if you wait a little bit until mid-September after the holiday boom, the number of buyers will rise again. Early fall can be a great time to be on the market.
If you miss the Fall, the holiday season is your next option. You may not want to be on the market during the holidays, and I don't blame you. People are often extra busy during this time of year. I am a proponent of putting homes on the market on January 2nd. It is a really great time but it is tricky. What are the logistics involved? If you decorate for the holidays, put up a Christmas tree and holiday lights, you would need to complete photography and video before those decorations go up. That means prepping the house in early November, so on January 2nd you are ready to go. 2021-11-26T11:21:00-07:002023-05-25T15:44:13-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15554Best and Final Counter OffersWhat is a "best and final" counteroffer? It’s the counteroffer that can strike fear in even the most seasoned buyers. So how are you supposed to respond when there's not even a price? A counteroffer usually states something like buyer to pay best and final price or buyer to pay highest and best, and then it is your job to pick the number. There are a few strategies that will help you do just that.
#1 Decide what the maximum is that you would pay for the house? What's your number? You have to forget about what the other buyers might do because guess what? We can't read minds. Nobody knows what the other buyers are going to do. So you have to decide what is the most you are willing to pay. Your realtor may ask, or you ask yourself if you're willing to offer X. The house sells for five thousand dollars more than that. Will you be OK with that outcome? And if the answer is no, then maybe you need to adjust your price up another five thousand dollars and then ask yourself again until you get to a point where you say, I don't care if it sells for a nickel more, they can have it. I'm done. That's how you know; you’re at your absolute max. Now, not every house might be worthy of that. Some homes are “must-haves” those you are willing to go to the mat for.
#2 Another strategy is called an escalation clause. These are a little controversial, and I highly suggest your realtor asks the listing agent how they feel about it. It works like this: let's say the house is listed for $800,000, and you're going to offer an escalation clause of $900,000. The clause could state that the buyer will pay $5,000 over the next highest offer with a maximum of $900,000. That's an escalation clause. It must have a cap; it must have increments. And it's not always welcome by the listing agent and seller. So make sure they're OK with it. If you have any questions about counteroffers or how to respond and negotiate, give us a call. We're here to help.
2021-10-02T08:50:00-07:002021-09-16T19:03:25-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15553What should I disclose? When selling a home, what should you disclose to a buyer about the condition of your home? Of course t's essential to be transparent and honest about the condition of your home when you're selling it. But let's discuss those grey areas that might have you wondering, should I keep quiet? For example, if the roof leaks, you want to disclose that information. But what about items that used to be problems that you have repaired? If the roof used to leak, you might want to tell them the roof leaked in 2012, and it was fixed. Why would you tell them about a repaired item? You want the buyer to understand the history of the house’s condition in case a problem arises in the future. Be upfront about everything, and you'll be in a much better position. Be sure to include any plumbing, roof, foundation electrical, heating, or air conditioning issues. All of those things are important that the buyer knows that way there are no surprises. Giving information upfront can also put you in a better position if the buyers want to renegotiate the terms after their inspections. So when you're filling out your disclosure documents, remember, you want to be sure to tell the buyer any material fact that might influence their opinion of your home.
2021-10-01T09:27:00-07:002021-09-16T18:33:31-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15552What are the chances an escrow falls through?So what are the chances of your escrow falling out? You just opened up the escrow, you're super excited, but in the back of your mind, you're thinking, what are the chances of this falling out? Based on my 26 years of selling real estate in Los Angeles, my opinion is that when a house goes under contract and opens up the escrow, there's about a 30 percent chance that it falls out. Why? Well, there are three contingencies, which are hurdles to the sale. Number one is the inspection. Once the buyer gets beyond the inspection, I think the chances of it falling out drops dramatically to about 10 percent. The next hurdle is going to be the buyer's loan and the appraisal. Once the buyer gets loan approval and the house appraisers, the chances of it falling out drop again to about one percent; at this point, things are looking quite solid. There are unusual occurrences. Nothing is ever 100% until the escrow closes. Being prepared for and knowing how to navigate the difficulties in an escrow are your best courses of action. If you have any questions, we are always here to help.
2021-09-29T09:22:00-07:002021-09-16T18:49:24-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15556Can You Give a House Away?Can you give a house away? Some homeowners feel that their asking price is somehow tied to the value of their home. It's not. For example, if a house is worth $1,000,000 and you ask $2,000,000 for it, it doesn't make it worth $2,000,000. If you put that same home on the market for $500,000, it's not worth $500,000 - It's still worth $1,000,000. Here is a real-life example: a recent home we sold that we figured was worth about $1,330,000 to $1,350,000. We put the house on the market with a strategic marketing plan. The home received a lot of activity but no offers after a couple of weeks. Our client needed to sell quickly. So we took the house off the market for one day, and we put that house back in the market for $1,100,000. We received 12 offers, and we ended up selling the home for $1,330,000 cash. Which makes you wonder, where was that buyer when we were on the market for $1,350,000? Another client had a condo on the market for $550,000, with no offers. We reduced that to $490,000 and received five offers, and sold it for $535,000. So the asking price of your home is part of a greater marketing plan. You cannot give your home away if you price it low and you're marketing the house properly. To discuss what a marketing plan would look like for you and your home, give us a call.
2021-09-25T07:08:00-07:002021-09-16T19:13:35-07:00Eric Dowlingtag:thinkrealestategroup.com,2012-09-20:15551Do Home Descriptions Really Matter?Does anybody really care about the written description that goes in the MLS for a house? Sometimes all you see are bullet points that read like an inventory list. Does it even matter? I know it does. A client called me after her house didn't sell with another broker. It was a mid-century in Silver Lake, priced well, and the broker used great photography; I wondered, why didn't this house sell? Well, I read the description that the agent used in the multiple listing service.
"Fantastic opportunity in hip Silverlake to take this mid-century to the next level. Imagine the possibilities currently configured as a three-bedroom, one used as a den. This home has a bonus room just waiting to be turned into a fourth bedroom, rec room, or office. This home has spectacular views of the Hollywood sign."
I don't know about you, but when I read that, I hear a lot of work that needs to be done on a house that really wasn't a fixer. We remarketed the home. We used great photography, and this is how I described the house.
"Some lucky people find four-leaf clovers. Some find mid-century homes with fabulous views, a perfect hilltop backyard, in a separate office in the hills of Silver Lake. Enter the living room with clean lines and abundant natural light. And you're in a space open to the kitchen with stainless steel cabinets that invites you out to the rare hilltop backyard with manicured paths through vegetable and herb gardens in a sprawling fig tree providing shade to the custom-built outdoor table."
Now, that's a description that paints a picture. We put the home back on the market with that description and received multiple offers. It sold it for $30,000 over the price that the previous agent had listed it for. So, I like to say that description was worth about $30,000. If you have any questions about what a marketing plan might look like for your home, give us a call. We're happy to help.
2021-09-24T09:17:00-07:002021-09-16T18:49:41-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15549When the market shifts who will be impacted first? When the market crashes, who will be the first to be impacted? Currently, in Summer 2021, the market's red hot. Most houses are selling in multiple offers, and sellers are getting bids way over their asking price. But what's going to happen when it changes? Most economists agree will eventually change. When that happens, who will be affected first? In my 26 years of real estate, I've seen the few markets go up and down. And I can tell you from that experience that not all homes will be affected when the market shifts. Equally, homes that are on a busy street and next to the freeway, for example, they're going to get hit a lot harder. Homes that have poor floor plans or that back up to industrial or commercial use. Those houses will get hit much harder than homes that are on quiet streets and preferred neighborhoods. So while no one knows when the top or peak of a market is, you and I should be talking about an exit strategy if you have a house that could have some issues.
2021-09-20T09:05:00-07:002021-09-16T18:07:44-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15548For Sale By Owner: Is it worth it?Should you sell your home for sale by owner? The main reason sellers decide to try selling on their own is to save money. It makes sense; we all like to save money when we can. But selling on your own may have the opposite effect. Studies show that homes sold by realtors sell for about 8% percent more than homes sold by owner. If you still want to proceed, be prepared for all the contracts and disclosures that need to be handled properly to protect your interests. The final consideration: When buyers see your for sale by owner sign in your yard, the first thing they think is, I am going to get a great deal on this house! But they can't really because aren't you trying to get the great deal? And the reality is two people can't save the same dollar. 2021-09-18T09:55:00-07:002021-09-16T18:08:38-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15374Should I Sell My Home As-Is?There are two simple steps you can do to successfully sell your home as-is. Today's home sellers are faced with two negotiations. The first one is on the price of their home. After you are in escrow and the buyer completes all of their inspections they may begin a second round of negotiations trying to talk that price down by 10's and sometimes a 100 thousand dollars. There are two steps you need to take to prevent that from happening.
#1- Disclose everything you possibly can about the home. If you had a leaky roof 5 years ago and you fixed it, disclose it. Consider having a home inspection to thoroughly inspect your home so you know everything that can possibly be wrong. Include an inspection of the sewer line, the chimney, the roof, and the foundation. Those are the places that really expensive repairs can be hiding without your knowing it.
#2 - Give these disclosures to the buyer at the perfect time. That perfect time is with the counteroffer. Buyers are never more in love with your home than when they're trying to win it in negotiation. They'll agree to almost anything as long as they're told upfront. Nobody likes surprises in real estate transactions. Remember, if you want to sell your home as-is. Be thorough, be honest, and disclose everything at the right time. If you have any questions about this, give us a call. We're here to help.<br />2021-09-17T08:00:00-07:002021-09-16T18:09:33-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15520Who is paying the most for homes in Glendale?Who's paying the most for homes here in Glendale? If you are a Glendale homeowner, it is good to know who is coming in, buying Glendale homes, and paying the most for them? Glendale has always been a very desirable place to live, but in the last 6 years, there has been a shift in the demographic of buyers. Glendale's character architecture, beautiful historic neighborhoods, and a price point of $600-$700 per square foot are drawing interest from a new group of buyers. Buyers from Silverlake, Los Feliz, West Hollywood, and even Venice have discovered what we already knew, Glendale has a lot to offer. Our houses and neighborhoods are becoming destinations for buyers who live in those areas and are looking to save money on their home purchases. They are searching for the picturesque communities and character homes that we have, and they're okay with paying $600-$700 Per SF. In fact, they'll even pay a little bit more because, by comparison, Glendale house prices are a deal compared to where they are now. So what are these buyers looking for, and how can you make your home more attractive to them? Give me a call, and I'll show you how to position your house so that it is the home of choice.2021-09-15T10:48:00-07:002021-10-01T09:16:04-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:15372The One Question to Ask a Potential AgentOne Question to Ask a Potential Agent. Dave Robles here from real estate, in my 26 years of selling real estate, I have trained hundreds and hundreds of real estate agents. I can tell you that the one question that you can ask a realtor to see if they're right for the job is, "What do you love most about selling real estate?". There are a lot of ways they can go with that question. And if they answer it, "well, I love houses." You have a problem. How does loving houses translate to putting more money in your pocket if you're selling your home or trying to negotiate a great deal on a house? You want to hear an answer like, I love marketing. I love advertising. I love negotiating. Heck, even I love people would be better than I love houses. For more info on buying and selling real estate or being a real estate agent, tune in real estate.
2021-09-03T15:22:00-07:002021-09-03T15:52:58-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:94748 Common Mistakes Real Estate Agents Make When buying a home, you will sign the California real estate purchase agreement. Mistakes made on this contract by your realtor can cost you tens of thousands of dollars. I'm going to show you how to avoid them. I am not an attorney, but I am a real estate broker and I have trained hundreds of real estate agents over the past 20 years. I have negotiated this contract thousands of times. This is my advice on how to avoid the eight mistakes that realtors can make.
#8 The number 8 mistake that real estate agents make that can cost you tens of thousands of dollars is not paying attention to the close of escrow day. This is in paragraph 1C. When you get your offer, it might say something like “30-day escrow.” That sounds great because you want to move. Well, if that 30 days ends on a Saturday, then the contract says it will get pushed back to the next business day. And if Monday is a holiday, guess what? Contractually, you're set to close on Tuesday. Now, that may not be a big deal, but if you're buying and selling and days really matter, it could be a really big deal. So be super clear. You must understand when the close of escrow is for your transaction.
#7 The number 7 mistake that agents make is allowing the buyer to have too long of an inspection contingency. You will find that in paragraph 14B1. The inspection contingency is the number 1 reason why houses fall out of escrow. So you want to keep those as short as possible. The default in that contract is 17 days. That's too long. I recommend shortening that period to 10 or even 7 days. You can always give the buyer a few more days if they need it. But if you give them 17, you can't shorten that.
#6 The number 6 mistake that agents make that you need to avoid is: not paying attention to paragraph 8B, which is items included in the sale of your home. Now, you might know that light fixtures and things that are attached are included, but if they mark a couple of boxes in this paragraph, you could be selling your stove, your refrigerator, and your washer and dryer. And be aware that there are a few other things that are included, like the fireplace screen and inserts and all window coverings.
#5 The number 5 mistake that you want to avoid is allowing for an unusually low-interest rate in paragraph 3D. The contract is going to tell you the terms of the buyer’s loan. One of those terms says that the buyer is to obtain a loan that won’t exceed a certain interest rate. Well, if the buyer's agent writes an unrealistically low number on that item, it could make the loan contingency unenforceable. So we suggest making sure that the interest rate stated is a little above the going rate or, pro-tip, write that the buyer will accept prevailing interest rate, and make sure that your home doesn't fall out of escrow because they can't get some dreamy interest rate.
#4 The number 4 mistake that your agent can make is allowing you to sell your home vacant. And this is in paragraph 9D. The mistake here is simple. The contract reads that the house shall be delivered vacant at the close of escrow. Some homes have an ADU or a guest unit. And if you have a tenant in one of those units, they may have rights and you may not be able to vacate their unit in order to sell it. Make sure you understand tenants’ rights. Make sure you have open communication with any tenants that might be on your property and make sure you're not guaranteeing something you can't deliver.
#3 The number 3 mistake that you want to avoid is not checking paragraph 6: other terms. This is 5 blank lines that the buyer's agent can put anything they want in. And if you miss it, you may be agreeing to something objectionable. Be really careful that you understand everything that they put in paragraph 6.
#2 The number 2 mistake that agents make that cost their clients is in paragraph 7A. This is called allocation of costs, and it's very tricky because it's at the very bottom of the page and is easy to miss. The checking of a box can obligate the seller to pay for things like termite clearance or a sewer septic certification, for example. These are the kinds of things you want to avoid. You don't want to write a blank check just to open up escrow. So make sure you understand what is in allocation of costs.
#1 The number 1 mistake that agents make that can cost you tens of thousands of dollars is allowing you to accept less than a three percent deposit to open up escrow. The deposit amount is not a law. You could accept, for example, a 1000 dollar deposit from the buyer. After all contingencies are removed, they could decide that they want to cancel the sale. The only thing that you may have recourse with is that one thousand dollars, which is just not enough to keep them from walking from your escrow.
Those are the eight mistakes that agents make that can cost you tens of thousands of dollars. Now, you might be asking, how can you avoid them? Here's my number one suggestion: read the contract. Ask for a printed copy or a PDF so that you can read it thoroughly. Make sure you read every word of it and make sure your realtor won’t make these mistakes. When you're interviewing a realtor, make sure they are experts in both marketing and contracts. A simple question you can ask them is: “what happens if the escrow is supposed to close on a Saturday?” The only answer you should accept is, “we'd like to avoid that, because if the escrow closes on a Saturday, the contract says it gets pushed back to the next business day. So we're going to go ahead and avoid that happening to begin with.” That's the only answer that works. Any other answer might mean they don’t understand the contract as well as they should.
Those are my 8 tips to make sure that you are protecting your rights. If you have any questions about this, feel free to reach out. We're here to help.
To find out what your home is worth today:2020-06-16T12:33:00-07:002020-06-16T15:26:19-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:9442Are You Ready for the Summer Housing Market?As the health crisis started making its way throughout our country earlier this spring, sellers have been cautious about putting their homes on the market. This hesitation stemmed primarily from fear of the spread of the coronavirus, and understandably so. This abundant caution has greatly impacted the number of homes for sale and slowed the pace of a typically busy spring real estate season. Mark Fleming, Chief Economist at First American <a href="https://blog.firstam.com/economics/why-the-pandemic-has-worsened-the-housing-supply-shortage" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“As more homeowners are reluctant to list their homes for sale amid the pandemic, the supply of homes available to potential home buyers continues to dwindle.”
With many states beginning a phased approach to reopening, <a href="https://www.mykcm.com/2020/04/22/keys-to-selling-your-house-virtually/" title="virtual">virtual</a> best practices and health and safety <a href="https://www.nar.realtor/coronavirus-a-guide-for-realtors" title="guidelines" target="_blank" rel="noopener noreferrer">guidelines</a> for the industry are in place to increase the comfort level of buyers and sellers. What we see today, though, is that sellers are still making a very calculated return to the market. In their latest Weekly Housing Trends Report, realtor.com <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-30-2020/" title="indicates" target="_blank" rel="noopener noreferrer">indicates</a>:
“New listings: On the slow path to recovery. Nationwide the size of declines held mostly steady this week, dropping 23 percent over last year, a slight increase over last week but still an improvement over the 30 percent declines in the first half of May.”
Although we’re starting to inch our way toward more homes for sale throughout the country, the number of homes on the market is still well below the demand from buyers. In the same report, Javier Vivas, Director of Economic Research for realtor.com shares:
“Sellers have yet to come back in full force, limiting the availability of homes for sale. Total active listings are declining from a year ago at a faster rate than observed in previous weeks, and this trend could worsen as buyers regain confidence and come back to the market before sellers.”
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) seems to <a href="https://www.nar.realtor/newsroom/pending-home-sales-slump-21-8-in-april" title="agree" target="_blank" rel="noopener noreferrer">agree</a>:
“In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”
What we can see today is that homebuyers are more confident than the sellers, and they’re ready to make up for lost time from the traditional spring market. <a href="https://www.mykcm.com/2020/05/27/why-this-summer-is-the-2020-real-estate-season/" title="Summer">Summer</a> is gearing up to be the 2020 buying season, so including your house in the mix may be your best opportunity to sell yet. Interest in your house may be higher than you think with so few sellers on the market today. As Vivas says:
“More properties will have to enter the market in June to bring the number of options for buyers back to normal levels for this time of the year, nationwide and in all large markets.”
Bottom Line
If you’re ready to sell your house this summer, let’s connect today. Buyers are interested and they may be looking for a house just like yours.2020-06-12T13:01:00-07:002020-06-12T13:03:39-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:9351 Home Prices: It’s All About Supply and Demand
Home Prices: It’s All About Supply and Demand
<img width="750" height="410" src="https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Home Prices: It’s All About Supply and Demand | MyKCM" srcset="https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share.jpg 750w, https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
As we enter the summer months and work through the challenges associated with the current health crisis, many are wondering what impact the economic slowdown will have on home prices. Looking at the big picture, supply and demand will give us the clearest idea of what’s to come.
Making our way through the month of June and entering the second half of the year, we face an undersupply of homes on the market. Keep in mind, this undersupply is going to vary by location and by price point. According to the National Association of Realtors (NAR), across the country, we currently have a 4.1 months <a href="https://www.nar.realtor/newsroom/existing-home-sales-wane-17-8-in-april" title="supply" target="_blank" rel="noopener noreferrer">supply</a> of homes on the market. Historically, 6 months of supply is considered a balanced market. Anything over 6 months is a buyer’s market, meaning prices will depreciate. Anything below 6 months is a seller’s market, where prices appreciate. The graph below shows inventory across the country since 2010 in months supply of homes for sale.<a href="https://files.mykcm.com/2020/06/01123023/20200602-MEM-ENG1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-93993" src="https://files.mykcm.com/2020/06/01123023/20200602-MEM-ENG1.jpg" alt="Home Prices: It’s All About Supply and Demand | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/06/01123023/20200602-MEM-ENG1.jpg 720w, https://files.mykcm.com/2020/06/01123023/20200602-MEM-ENG1-600x450.jpg 600w, https://files.mykcm.com/2020/06/01123023/20200602-MEM-ENG1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>Robert Dietz, Chief Economist for the National Home Builders Association (NAHB) <a href="http://eyeonhousing.org/2020/05/gain-for-housing-share-of-gdp-during-1q20/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt. Estimates vary, but based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”
Given the undersupply of homes on the market today, there is upward pressure on prices. Looking at simple economics, when there is less of an item for sale and the demand is high, consumers are willing to pay more for that item. The undersupply is also prompting bidding wars, which can drive price points higher in the home sale process. According to a recent MarketWatch <a href="https://www.marketwatch.com/story/home-price-gains-continued-in-march-as-the-coronavirus-pandemic-swept-the-us-case-shiller-index-shows-2020-05-26?mod=economic-report" title="article" target="_blank" rel="noopener noreferrer">article</a>:
“As buyers return to the market as the country rebounds from the pandemic, a limited inventory of homes for sale could fuel bidding wars and push prices higher.”
In addition, experts forecasting home prices have updated their projections given the impact of the pandemic. The major institutions expect home prices to appreciate through 2022. The chart below, updated as of earlier this week, notes these forecasts. As the year progresses, we may see these projections revised in a continued upward trend, given the lack of homes on the market. This could drive home prices even higher.<a href="https://files.mykcm.com/2020/06/01123053/20200602-MEM-ENG2.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-93994" src="https://files.mykcm.com/2020/06/01123053/20200602-MEM-ENG2.jpg" alt="Home Prices: It’s All About Supply and Demand | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/06/01123053/20200602-MEM-ENG2.jpg 720w, https://files.mykcm.com/2020/06/01123053/20200602-MEM-ENG2-600x450.jpg 600w, https://files.mykcm.com/2020/06/01123053/20200602-MEM-ENG2-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Bottom Line
Many may think home prices will depreciate due to the economic slowdown from the coronavirus, but experts disagree. As we approach the second half of this year, we may actually see home prices rise even higher given the lack of homes for sale.
2020-06-05T09:32:00-07:002020-06-05T09:37:35-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:8993 Housing Market Positioned to Bring Back the EconomyAll eyes are on the American economy. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing consensus that the housing market is positioned to be that driving force, the tailwind that is necessary. Some may question that assertion as they look back on the last recession in 2008 when housing was the anchor to the economy – holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit. As Mark Fleming, Chief Economist of First American, <a href="https://blog.firstam.com/economics/why-the-housing-market-may-weather-coronavirus-impact-better-than-the-great-recession" title="recently explained" target="_blank" rel="noopener noreferrer">recently explained</a>:
“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”
Fleming is not the only economist who believes this. Last week, Dr. Frank Nothaft, Chief Economist for CoreLogic, (@DrFrankNothaft) tweeted:
“For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well.”
And, Robert Dietz, Chief Economist for the National Association of Home Builders, in an <a href="http://eyeonhousing.org/2020/05/gain-for-housing-share-of-gdp-during-1q20/" title="economic update" target="_blank" rel="noopener noreferrer">economic update</a> last week explained:
“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt…Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”
Bottom Line
Every time a home is sold it has a tremendous financial <a href="https://www.mykcm.com/2020/04/30/why-the-housing-market-is-a-powerful-economic-driver/" title="impact">impact</a> on local economies. As the real estate market continues its recovery, it will act as a strong tailwind to the overall national economy.2020-05-20T10:30:00-07:002020-05-20T10:34:54-07:00Dave Roblestag:thinkrealestategroup.com,2012-09-20:6692Why You Should Consider Selling in the Winter
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2019-11-14T14:52:00-07:002020-02-06T18:54:34-07:00Dave Robles