How to Gain Leverage Over Other Buyers in Today's Competitive Market

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For years now, buyers have been able to come in fairly low and actually get away with offers that sellers would never have accepted just a few years prior to that. But now, things are shifting back to a more balanced marketplace and we are noticing some big changes in the way buyers and sellers are interacting. Here are some ways you can gain the upper hand over other buyers vying for the same (few) properties that are scarcely available in our market today.

Don’t Hold Back When You Find Something You Like
A common mistake made by many buyers in a competitive market is to hold off on making an offer on something they really like. The chance of finding a home that meets every single need is next to impossible, that’s why it is important to recognize your deal breakers and if you like the home for the most part, go ahead and make an offer on it.

If You’re Serious, Present a Serious Offer – The First Time
Now is not the time to be playing games when it comes to trying to get the home of your dreams. With so few homes on the market and so many buyers, there is a good chance you could lose the home altogether if your offer is not strong enough. Carefully consider your offer and act as if that is your only chance.

Engage in the Services of a Local Expert
There is a lot of merit to working with a local real estate agent that knows the area and knows other agents in the area. At times, when all else fails, a seller may opt for your offer just because their agent also knows your agent. Not to mention, the expert advice you can expect from your REALTOR® in being able to recognize a good deal among other things.

Structure An Offer That Makes the Seller Happy
One of the strongest signs of a serious buyer is a large deposit. Though the standard varies from area to area, typically at least 1% is put toward earnest money and it shows some level of seriousness on the buyer’s part when they go above that.

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Other things you can do to make sure sellers pay more attention to your offer and less to others include writing a personal letter to share what you love about the home or be willing to waive contingencies or at least shorten contingencies. Savvy buyers also work to keep their offers simple, clean and easy to read plus they don’t hesitate to offer cash if they can do it, shortening the time period between now and closing.

If you don’t need closing cost assistance, don’t ask for it and finally – if you really love the property, do what works best – offer more money.

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Contact us today to find your perfect dream home!

Top Reasons Why Selling Your Home in Today's Marketplace is Literally a Good Move

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Deciding to sell your home is one of the most significant decisions you’ll ever need to make and before you make that life-changing choice, it’s important to know how the real estate market is performing. During the past 6,7 or more years we have seen a steadily decreasing inventory as more and more buyers venture back into the housing market.

Back in 2008 the housing market was enduring one of the roughest times in history with plummeting home values, too much inventory and virtually no interest in the homes that were for sale.

Sellers Finally Have An Edge in the Marketplace

Today, it’s a world of difference. Our inventory of available homes for sale is at its lowest in 6 years. With just 3.7 months of inventory, or 3,100 active listings on the market, it would take that much time to sell the homes if nothing new were to come on the market.

So if you have been considering selling your home, now is the time to do it. As more and more homeowners ask how they can tell if it’s time to sell, we increasingly find ourselves sharing this important news of our market shift into a seller’s market.

Buyers Can Look Forward to Appreciation Moving Ahead

Buyers are also enjoying some benefits of today’s marketplace, including still historic low interest rates, increased flexibility with mortgage lending practices and market that supports buying more so than renting. But there are far more buyers today that are eager to lock in the still-amazing low interest rates before prices begin to appreciate. Predictions indicate the median priced home will see a three to four percent appreciation as early as within the next twelve months. The challenge, of course, is getting the home that buyers want in a market where there are more buyers vying for the most desirable properties.

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Before everything starts climbing again – now is the time to consider selling your home. Sellers are getting top dollar for their properties, often as a result of multi-offer situations, price competitions and the sheer scarcity of homes.

The same thing holds true for buyers; act now before it’s too late.

Contact us today if you’d like to have us provide an honest evaluation of your home’s value in today’s market. Depending on your motivation level, we will work out a strategy to help you achieve your real estate goals – and make the right move.

760 340 9253

dave@teamkibbey.com

Taking Advantage of the Market

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Have you ever made a decision not to take action and then a few years down the road you wished you would have done something? Don’t let that happen with this market. It’s time to buy. Inventory is thinning and, as soon as we get into summer, there will be even fewer homes on the market. When the inventory decreases, the price of homes will climb up. It’s the law of supply and demand.  

The market is definitely starting to tip toward a sellers’ market because of the dwindling inventory. What does this mean for the buyer? When the market transforms into a sellers’ market, since there are fewer homes on the market, there’s more competition for available homes. This makes it tough on the buyer. Low inventory often translates into multiple bids for homes in good condition, high list-to-sale price ratios and the sellers being able to negotiate better terms. Great for the seller, but not so good for the buyer. 

But right now, buyers have a great advantage because of interest rates. They can afford more of a home because of low interest rates. Interest rates are still below 4% with some as low as 3% with a 15- or 20-year fixed-rate mortgage, and mortgage bankers are eager to lend. When interest rates rise, the buyer could get locked into spending a few hundred extra dollars a month on your payment. So why wait? It’s an excellent time to buy.  

Let’s find a property before you end up paying a lot more it when summer arrives.  Give us a call so we can tell you where to be positioned and how to be successful in this market. Please contact us at (760) 774-0105 or dave@teamkibbey.com. 

5 Tips to Prepare Your Home for Market

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There are many things you can do to make sure that your home is prepared and in its most appealing state to buyers before you put it on the market.  Here are five of the most important things you as a seller can do to insure that when a potential buyer comes to your property, they feel at home.

Landscaping

The old adage about not judging a book by its cover certainly does apply to properties but the last thing you want to do is lose a potential sale because you haven’t paid attention to first impressions.  Most homeowners these days have watched some HGTV and one of the things that come up in many of their shows is “curb appeal”. Curb appeal refers to how attractive or enticing the exterior of a home is in terms of landscaping, the driveway area, front porch, entryway, garage and other exterior features.

It goes without saying that you should repair any damage and clean up areas that are out of sorts.  Adding soft touches like some flowers or even some professional landscaping can also make a world of difference in buyers’ impressions of the home.  If you are showing a home after dark, one thing you can do is to turn on exterior lights, creating an appealing peek through as people first drive up to the home.

De-Clutter

Nothing is more of a turn off to buyers than a home filled with too much stuff. The last thing buyers want to see is closets and counter space bursting at the seams with too many things, an over-abundance of personal items or a mismatched and unattractive arrangement of furniture.  Classic, simple décor with clean lines and neutral colors is most appealing. Not only does this allow them to see the actual house but it also gives them the opportunity to visualize their own customization in the space. 

Walk through the home and remove all extra items that are lying around, clear off kitchen counters and remove all personal items from bathrooms and other surfaces.  Imagine walking into the perfect hotel room – while looking lived-in, the space is still elegant without too many things crowding the space. 

Paint

You may not realize this but the simple act of repainting the walls in your home can do wonders for the success of selling your home. And when you add up just how little it costs versus how much the payback is – it’s a no brainer! Try to put yourself in buyers’ shoes and allow them as much flexibility with their imagination to envision their own stuff in the house. How do you do that? Easy. Cover the walls with a nice, neutral color and you can’t go wrong. That’s what our resident painter does and by the time he and his team are done, the homes he paints for us just before listing come out looking brand new and completely transformed.

Flooring

Most people think of the big things when considering what makes a property ripe and ready for sale, generating the interest of lots of buyers and creating lots of incoming offers on the sale.  But what many do not realize is that by just changing one aspect of your home’s interior, they can and will significantly enhance the value of that home.  By installing quality, buyer-friendly flooring, the value of a home will jump up, as will the interest from buyers looking for the perfect place.  

Leave the Home

In order for a potential buyer to feel like this could be THEIR home, it’s best for the owner to leave the property whenever there is a showing. If you remain in the home during showings then potential buyers will not be able to envision themselves living in the property; they will see themselves as visitors in your home.

Who's Right to Help Sell Your Home?

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Buying or selling a home for most people is probably the single largest financial transaction in their lifetime. So you would think that with that transaction they would want only the best person representing them. The thing is, many homeowners do not realize the importance of choosing a qualified REALTOR® and in fact some have no idea what attributes they should be looking for much less inquiring about as they decide who to work with.

Today, I wanted to cover this very important topic on our blog because as a team we feel it is critical that you, the client, are able to make the best decision for you – one that will get you the best price for your home when you sell it.

Most Real Estate Agents Averaged 4 Homes Sold Last Year

Consider this: 94% of all agents averaged only four homes sold in 2012. This statistic further breaks down with 71% of those 94% having sold less than 4 homes in one year.

As you decide to list your home on the market, putting in so much time, effort, energy and sometimes money into presenting the home well – wouldn’t you want someone that has done this successfully time and again to handle it for you?

Asking Questions Beforehand is Key to Finding the Right REALTOR®

So as you start thinking about putting your home on the market, consider making a list of the things that matter most to you in dealing with someone closely for something as large as selling a home. Ask questions like “Are they accessible?” “How many homes have they sold on average last year?” and “How much time and effort do they devote to their career?”

With these and other questions, you will be able to gauge the real estate agent’s experience level, knowledge base, marketing reach and most importantly – your connection with them.

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As always, we’re right here ready for you when you decide to sell your home. We will utilize our extensive experience, industry knowledge, marketing innovations and connections with our local and regional networks – to get the job done and get it done well.

Call us today.

760 340 9253

Trends in 2013

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As your real estate resource center, we’re committed to keeping you up to date on changes in the market—and what they mean to you.  There’s reason to believe the real estate market is poised for strong growth in 2013.  I recently attended a “State of Real Estate” conference that featured a lot of positive news.  Here I’ll give you a brief synopsis. 

The market hit bottom in the beginning or middle of 2012.  Currently, the local inventory is 3.5 months, meaning that if you put your home on the market it would take on average 3.5 months to sell if you position it properly and if it’s priced at less than $500,000.  Most homes are selling in a week and getting multiple offers.  As far as prices go, the median price is $260,000.  As median price points go up, inventory goes up as well. 

What does this mean for the buyer?  When a home that you’re interested in hits the market, plan to see it as soon as possible and make the best possible offer that’s at an appropriate price point for the seller.  Remember, homes are moving quickly.  If you hesitate, the property could be gone tomorrow because others will be making offers.    

Now let’s break down the market.  Most of the sales—63%—are equity sales, 24% are short sales, and 12% are REO's Bank-owned sales, but this number is dwindling, which is positive.  The reason?  Short sales are easier to do because the banks today are much more responsive to us and our clients, so these sales are getting done a lot quicker. 

If we look over the past seven years, buyer confidence is definitely at an all-time high and, thankfully, mortgage rates remain historically low.  The mood is great!  And for the most part, sellers have lowered their expectations to be more consistent with the market so we’re seeing a lot of movement. 

For those looking to sell a home for more than $500,000, it will take longer than 3.5 months.  Sales are slow in the high-end market.   Based on the current inventory, homes in the $600,000 to $800,000 range is six months; $800,000 to $1.2 million is 18 months; $1.2 million to $3 million is 24 months; and above $3 million is two to five years.  So if you’re considering selling a luxury home, be realistic with your expectations of the market and price your home to sell, not just to list.  If you are patient, you will sell your property and can reinvest in a great opportunity on the purchase side. 

To build a strategy to market your home or find the home of your dreams, please contact me at (760) 774-0105 or dave@teamkibbey.com.  We’d be happy to assist you.