Greetings!
July
2009 --
A few weeks ago I
promised an update on the sale of my own home.
It had been several
years since I had sold a property of my own, and that was a completely
different
market.
The house was
prepped for sale - emptied, painted, sanded and spit-shined.
Market value can be
a funny thing. What IS market value? Is it the list price? Is it what
some random appraiser says before the house is on the market? Is it
what your realtor suggests your house be listed at? Or is it what you
need to get out of it at the end of the day.
Unfortunately, none
of those things define market value. Market value is the meeting of the
minds between a willing buyer and a willing seller. It will be
different in every instance.
In the sale of my
house, establishing market value was easy. Three offers came in pretty
close to one another, slightly under asking. A fair deal for buyers and
sellers alike.
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June
2009 --
Interest rates
fluctuate. Appraisers have major regulatory changes impact their
industry. Supervisors try to change rent control laws. Lenders come and
go, consolidate, enter and exit markets.
Full time real
estate agents and lenders are on top of these trends. Circumstances
change rapidly, as do buyer qualifications.
Lately, the trend
has been, on certain properties -- multiple offers. Whoo hoo! Yay
sellers! Except the offers seem to hover around the asking price or are
below asking - maybe even all seven of them. So, whoo hoo! Yay buyers!
Sellers, buyers are
choosy and are negotiating heavily. Just because you want or need a
certain return doesn't mean the buyers will deliver that. You have to
price aggressively and start off right to get the market's attention.
Buyers, yes, there's a lot to choose from. But don't insult the seller.
You are not going to buy that property for 20 to 30 percent off. More
like 2 to 5 percent, depending on competition. Some thought and
analysis did go into establishing the listing price.
As it has been for
the past 9 months to a year, this market is completely
property-specific. I know. I just
recently listed my own home for sale. I'll let you know what happened
on that after the close.
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February
2009 --
There's change in
the air, and it's not just the new presidency.
One of my company's
listings got twelve offers a few weeks ago. Serious, qualified buyers
are attending open houses, calling about listings and walking in to the
office to speak with agents.
This is the
trifecta of home buying: affordability, low interest rates and
available inventory. Upside potential is huge and property taxes will
be indexed to 2009 purchase prices vs 2005. That saves a bundle over
time!
2009 might be the
ideal time to make that move upward if you've been thinking about it.
You might be selling at a slightly lower price than in the past, but
the upside of the house you're buying (also at a slightly lower price
in the past) is greater. For example, 7% appreciation of a
$500,000 condo is $35,000; 7% appreciation of a $900,000 home is
$63,000. (And, no, I'm not predicting you'll get a 7% return on
anything...).
If you want a
realistic picture of the market, give me a call. The papers tell you
what happened yesterday. I can tell you what's happening today.
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September 2008 --
When I tell people
I meet that I am a realtor, they gasp. How's the market? Is it bad in
San Francisco?
There's no yes or
no answer to that question. Like the weather, San Francisco has many
real estate micro-climates. While some homes may languish on the
market, others are getting 21 offers - sometimes just down the street
from each other!
Well-maintained,
well-presented properties that are priced well will attract buyers.
Homes that seem to offer value attract buyers.
If you're a buyer
out there and see something you like because it seems like a good deal,
chances are, other buyers out there are just like you. You could be
writing offers in a competitive situation, which means, guess what --
potentially offering over the asking price.
If you're a seller
out there and think it's a seller's market where you can ask for the
moon and the stars and still have people beating down the door, lining
up to get in and write offers right there at the open house.... even if
that's what it was like when you bought, guess what. Those days are
gone.
There are deals to
be had if you want to do the work; short sales,
REO's, auctions, etc. You'll be competing with investors and looking at
long time frames before knowing if the house is yours. You'll also be
faced with limited disclosures, potentially poorly maintained
properties or other wildcards you may not have bargained for.
It's real estate realism these days - be realistic
in your expectations and trust your realtor to know what the market is
doing in your neighborhood or on your street (or the street you want to
be on!).
Good luck!
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July
2008 --
I see a trend of people moving back INTO cities, trading long,
expensive commutes for a little pricier real estate, public
transportation and urban amenities. After all, you may or may not be
able to deduct the cost of your gas, but most people can deduct some or
all of their mortgage interest. (Disclaimer: This is not tax
advice! Your mileage may vary; please consult a tax professional!)
Over time, this
phenomenon could create opportunities for sellers as demand increases
in urban areas. Buyers might also see an increase in competition for
desirable properties as people flock to denser areas and transit hubs.
There are definite buying opportunities in some parts of town. If you
have the resources, buying an investment property might make sense at
this time.
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