If your home is on the market, clear proof that it is overpriced is if it’s been for sale over 30 days and many agents and homebuyers are looking at your property online (Zillow, Redfin) yet no one calls to view your house. Time for a price adjustment
1) keep in mind that a homebuyer will see many other homes besides yours, if your home is overpriced they will find a better value elsewhere. Your overpriced home will help sell other homes.
2) A buyer willing to overpay for your property will have problems financing because your home will not appraise.
3) Your home will stay on the market for a long time and will make homebuyers ask themselves “what is wrong with that property?”. If that happens you should expect offers well below your asking price.
1) Your listing will rise to the top.
If homeowners in your neighborhood take a break from the market because they don’t want to bother keeping their property in show ready condition over the holidays, that makes four reduced inventory. Less competition means more buyers will be looking at your property.
2) Your house looks and smells amazing during the holidays.
With that nice, homey feeling, homes tend to show a lot better during the holidays, while making people feel really good.
3) Holiday home buyers are very Serious. Potential buyers who take the time to set up home tours during the holiday season are more motivated to move forward if they like what they see.
4) Families often search during school breaks. They want to find the right property, have stress free negotiations, and get their families settled before school starts up again in January
5) It can be easier to close a transaction in December. Buyers can often get their loan processed and approved faster in November or December then they would in traditionally busy spring months.
# Mortgage rates will continue to rise in 2019. Every time interest rates go up, buyers lose a little purchasing power, but the barrier maybe more psychological than financial. Buyers are starting to push back, they are saying “enough”.
# Homebuyers will have more negotiating power and sellers will need to make more compromises. Expect bidding wars to become less competitive, and price reductions to become more common.
# As price gains slow, home values will still appreciate at 2-3% depending on neighborhood
# Upscale neighborhoods will soften while demand for entry level housing remains high (source: forbes.com)
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# Los Angeles home sales declined by 24 percent year over year in September, with all local communities except the Eastside showing a decline in the third quarter, bringing 2018 housing market activity to 11 percent below last year.
# Following a strong start for higher-priced sales at the beginning of 2018, sales activity slowed in all price ranges in the third quarter, and sales of homes priced higher than $1 million are now trending with 2017 activity.
# Inventory is also 10 percent below last year’s levels, suggesting about 1,100 fewer homes on the market. South L.A. posted the largest inventory drop, down by 34 percent, followed by a 27 percent decline in Downtown L.A. and a 24 percent decrease in Foothill Communities.
# Despite slowing annual price growth of 2 percent, almost half of Los Angeles communities posted appreciation of more than 10 percent — particularly in Northeast L.A., Foothill Communities, Eastern Cities, and Beverly Hills.
# Price reductions rose by 3 percentage points, from 21 percent last September to 24 percent now. More reductions were seen in greater Malibu, Foothill Communities, the Eastside, the West Valley, and the South Bay.
# The rebalancing between buyers and sellers is being driven by affordability constraints and buyer fatigue.
Existing home sales slump to a near three year low as some home buyers back out. Home prices are still growing faster than wages, but the pace of price increases is decelerating steadily. Recent sluggishness seems increasingly driven by softer demand from would be home buyers in the face of two emerging trends: falling rents and rising mortgage rates.
There is still a lot of energy left in the housing market, but the rapid rise of the past few years has clearly begun to level off. On average, homes are taking longer to sell and are receiving fewer offers than before. (Source: marketwatch.com)
1. Know your Realtor, This is one of the most important criteria when purchasing a home. All realtors are not created equal. Find a listing agent that will meet your family’s needs and will work for you. This person should be your advocate and supporter along your journey. Buying a home can be stressful and complicated, but it doesn’t have to be if you hire an experienced agent with a long list of happy clients. Your agent will always put your needs first and negotiate in your best interest for price, house repairs, inspections, disclosures, contracts and much more
2. Select a trusted lender: Make sure that you do your homework if you are securing a loan for your home. Don’t think that you need to go through a national lender to get the best deal. You’ll find that the best deal may actually be with working with a local lending agent who would save you a lot of time and money while also making the process much easier. They’ll deal with the larger banks and have the contacts, negotiating power and process in place to potentially get you a lower rate and ideal program.
3. Hire a trustworthy moving company: Moving expenses will quickly take up a big chunk of your budget. One of the ways to maximize your budget is to hire a local trustworthy moving company instead of one of the pricey national chains. They can save you hundreds of dollars, and the movers can have your items moved within several hours. (source: gobankingrates.com)
When you show your house to potential buyers, you need to put your pets away so that they are safe, not stressed out, to reduce odor and so that buyers who are allergic or afraid can still visit.
# Kennel the pets inside the house
# Take the pets to a kennel outside the house (at your local vet or service like the Wag Hotels)
# Ask a neighbor, friend, or family member to watch the pets
# Put the pets behind a baby gate
# Have moved to your new home with the pets already
The real estate market is tied into consumer confidence and sentiment. That is why it’s important to track the consumer confidence survey. The Conference Board Consumer Confidence Index® decreased in March, following an increase in February. The Index now stands at 127.7 (1985=100), down from 130.0 in February. Consumers’ assessment of current conditions declined slightly, with business conditions the primary reason for the moderation. Overall expectations remain quite favorable. Despite the modest retreat in confidence, index levels remain historically high and suggest further strong growth for the economy (and real estate sales) in the months ahead.